Cover
Cover - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 17, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Transition Report | false | ||
Entity File Number | 001-38647 | ||
Entity Registrant Name | FVCBankcorp, Inc. | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 47-5020283 | ||
Entity Address, Address Line One | 11325 Random Hills Road, Suite 240 | ||
Entity Address, City or Town | Fairfax | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 22030 | ||
City Area Code | 703 | ||
Local Phone Number | 436-3800 | ||
Title of 12(b) Security | Common Stock, $0.01 par value | ||
Trading Symbol | FVCB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | true | ||
Entity Ex Transition Period | true | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 237,799,174 | ||
Entity Common Stock, Shares Outstanding | 17,674,224 | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant's definitive Proxy Statement for the 2023 Annual Meeting of Shareholders are incorporated by reference into Part III of the Form 10-K. With the exception of the portions of the Proxy Statement specifically incorporated herein by reference, the Proxy Statement is not deemed to be filed as part of this Form 10-K. | ||
Entity Central Index Key | 0001675644 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Audit Information [Abstract] | |
Auditor Name | YOUNT, HYDE & BARBOUR, P.C. |
Auditor Location | Winchester, Virginia |
Auditor Firm ID | 613 |
Consolidated Statements of Cond
Consolidated Statements of Condition - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 7,253 | $ 24,613 |
Interest-bearing deposits at other financial institutions | 74,300 | 216,345 |
Securities held-to-maturity (fair value of $0.3 million for both December 31, 2022 and 2021, respectively), at amortized cost | 264 | 264 |
Securities available-for-sale, at fair value | 278,069 | 357,612 |
Restricted stock, at cost | 15,612 | 6,372 |
Loans, net of allowance for loan losses of $16.0 million and $13.8 million at December 31, 2022 and 2021, respectively | 1,824,394 | 1,490,020 |
Premises and equipment, net | 1,220 | 1,584 |
Accrued interest receivable | 9,435 | 8,074 |
Prepaid expenses | 3,273 | 1,393 |
Deferred tax assets, net | 18,533 | 8,629 |
Goodwill and intangibles, net | 7,790 | 8,052 |
Bank owned life insurance (BOLI) | 55,371 | 39,171 |
Operating lease right-of-use assets | 9,680 | 10,167 |
Other assets | 39,128 | 30,628 |
Total assets | 2,344,322 | 2,202,924 |
Deposits: | ||
Noninterest-bearing | 438,269 | 581,293 |
Interest-bearing checking, savings and money market | 883,480 | 1,071,059 |
Time deposits | 508,413 | 231,417 |
Total deposits | 1,830,162 | 1,883,769 |
Federal funds purchased | 30,000 | 0 |
FHLB advances | 235,000 | 25,000 |
Subordinated notes, net of issuance costs | 19,565 | 19,510 |
Accrued interest payable | 1,269 | 1,034 |
Operating lease liabilities | 10,394 | 11,111 |
Accrued expenses and other liabilities | 15,550 | 52,704 |
Total liabilities | 2,141,940 | 1,993,128 |
Commitments and Contingent Liabilities | ||
Stockholders' Equity | ||
Preferred stock, $0.01 par value | ||
Common stock, $0.01 par value | 175 | 137 |
Additional paid-in capital | 123,886 | 121,798 |
Retained earnings | 114,888 | 89,904 |
Accumulated other comprehensive (loss) income, net | (36,567) | (2,043) |
Total stockholders' equity | 202,382 | 209,796 |
Total liabilities and stockholders' equity | $ 2,344,322 | $ 2,202,924 |
Consolidated Statements of Co_2
Consolidated Statements of Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Securities held to maturity, fair value | $ 252 | $ 270 |
Allowance for loan losses | $ 16,040 | $ 13,829 |
Preferred stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock, shares authorized (in shares) | 1,000,000 | 1,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares issued (in shares) | 17,475,109 | 13,727,045 |
Common stock, shares outstanding (in shares) | 17,475,109 | 13,727,045 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and Dividend Income | ||
Interest and fees on loans | $ 73,624 | $ 63,974 |
Interest and dividends on securities held-to-maturity | 6 | 6 |
Interest and dividends on securities available-for-sale | 5,959 | 3,860 |
Dividends on restricted stock | 408 | 328 |
Interest on deposits at other financial institutions | 685 | 260 |
Total interest and dividend income | 80,682 | 68,428 |
Interest Expense | ||
Interest on deposits | 12,468 | 7,601 |
Interest on federal funds purchased | 688 | 0 |
Interest on short-term debt | 1,251 | 346 |
Interest on subordinated notes | 1,031 | 2,534 |
Total interest expense | 15,438 | 10,481 |
Net Interest Income | 65,244 | 57,947 |
Provision for (reversal of) loan losses | 2,629 | (500) |
Net interest income after provision for (reversal of) loan losses | 62,615 | 58,447 |
Noninterest Income | ||
Service charges on deposit accounts | 954 | 1,028 |
BOLI income | 1,200 | 994 |
(Loss) income from minority membership interest | (33) | 1,464 |
Other income | 713 | 816 |
Total noninterest income | 2,834 | 4,302 |
Noninterest Expenses | ||
Salaries and employee benefits | 20,316 | 18,980 |
Occupancy and equipment expense | 3,252 | 3,290 |
Data processing and network administration | 2,303 | 2,203 |
State franchise taxes | 2,036 | 1,983 |
Audit, legal and consulting fees | 1,210 | 1,489 |
Merger and acquisition expense | 125 | 1,445 |
Loan related expenses | 555 | 1,247 |
FDIC insurance | 620 | 770 |
Director fees | 668 | 651 |
Core deposit intangible amortization | 262 | 305 |
Gain on sale of other real estate owned | 0 | (236) |
Tax credit amortization | 126 | 0 |
Other operating expenses | 2,987 | 2,413 |
Total noninterest expenses | 34,460 | 34,540 |
Net income before income tax expense | 30,989 | 28,209 |
Income tax expense | 6,005 | 6,276 |
Net income | $ 24,984 | $ 21,933 |
Earnings per share, basic (in dollars per share) | $ 1.43 | $ 1.29 |
Earnings per share, diluted (in dollars per share) | $ 1.35 | $ 1.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 24,984 | $ 21,933 |
Other comprehensive (loss) income: | ||
Unrealized loss on securities available for sale, net of tax benefit of $11,015 and $1,226 in 2022 and 2021, respectively. | (37,943) | (4,404) |
Unrealized gain on interest rate swaps, net of tax expense of $909 and $142 in 2022 and 2021, respectively. | 3,419 | 535 |
Total other comprehensive loss | (34,524) | (3,869) |
Total comprehensive (loss) income | $ (9,540) | $ 18,064 |
Consolidated Statements of Co_3
Consolidated Statements of Comprehensive Income (Loss) (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Tax benefit, securities available for sale | $ 11,015 | $ 1,226 |
Unrealized gain on interest rate swaps, tax expense | $ 909 | $ 142 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | ||
Net income | $ 24,984 | $ 21,933 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 424 | 555 |
Provision for (reversal of) loan losses | 2,629 | (500) |
Net amortization of premium of securities | 607 | 528 |
Net accretion of deferred loan fees, costs, and purchase premiums | (2,255) | (5,830) |
Net accretion of acquisition accounting adjustments | (315) | (442) |
Gain on sale of other real estate owned | 0 | (236) |
Amortization of subordinated debt issuance costs | 55 | 488 |
Core deposit intangible amortization | 262 | 305 |
Tax credit amortization | 126 | 0 |
Equity-based compensation expense | 1,183 | 1,011 |
BOLI income | (1,200) | (994) |
(Loss) income from minority membership interest | 33 | (1,464) |
Deferred income tax expense | 395 | 1,007 |
Changes in assets and liabilities: | ||
(Increase) decrease in accrued interest receivable, prepaid expenses and other assets | (9,094) | 9,480 |
Increase (decrease) in accrued interest payable, accrued expenses and other liabilities | 4,558 | (6,396) |
Net cash provided by operating activities | 22,392 | 19,445 |
Cash Flows From Investing Activities | ||
Decrease (increase) in interest-bearing deposits at other financial institutions | 142,045 | (96,117) |
Purchases of securities available-for-sale | (47,160) | (245,731) |
Proceeds from maturities and calls of securities available-for-sale | 0 | 6,996 |
Proceeds from paydowns of securities available-for-sale | 37,076 | 41,016 |
(Increase) decrease in restricted stock | (9,240) | 191 |
Net increase in loans | (334,426) | (32,110) |
Purchase of bank-owned life insurance | (15,000) | 0 |
Distribution received from minority owned investment | 1,040 | 0 |
Proceeds from sale of OREO | 0 | 4,102 |
Purchase of minority membership interest | 0 | (22,200) |
Purchases of premises and equipment, net | (166) | (485) |
Net cash used in investing activities | (225,831) | (344,338) |
Cash Flows From Financing Activities | ||
Net (decrease) increase in noninterest-bearing, interest-bearing checking, savings, and money market deposits | (330,603) | 432,912 |
Net increase (decrease) in time deposits | 276,989 | (81,649) |
Redemption of subordinated debt, net | (1,250) | (23,813) |
Increase in federal funds purchased | 30,000 | 0 |
Net increase in FHLB advances | 210,000 | 0 |
Repurchase of shares of common stock | (730) | 0 |
Common stock issuance | 1,673 | 1,221 |
Net cash provided by financing activities | 186,079 | 328,671 |
Net (decrease) increase in cash and cash equivalents | (17,360) | 3,778 |
Cash and cash equivalents, beginning of year | 24,613 | 20,835 |
Cash and cash equivalents, end of year | $ 7,253 | $ 24,613 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Balance at the beginning of the period (in shares) at Dec. 31, 2020 | 13,511 | ||||
Balance at the beginning of the period at Dec. 31, 2020 | $ 189,500 | $ 135 | $ 119,568 | $ 67,971 | $ 1,826 |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 21,933 | 21,933 | |||
Other comprehensive (loss) income, net of tax | (3,869) | (3,869) | |||
Common stock issuance for options exercised (in shares) | 182 | ||||
Common stock issuance for options exercised | 1,221 | $ 2 | 1,219 | ||
Vesting of restricted stock grants (in shares) | 34 | ||||
Stock-based compensation expense | $ 1,011 | 1,011 | |||
Balance at the end of the period (in shares) at Dec. 31, 2021 | 13,727,045 | 13,727 | |||
Balance at the end of the period at Dec. 31, 2021 | $ 209,796 | $ 137 | 121,798 | 89,904 | (2,043) |
Increase (Decrease) in Stockholders' Equity | |||||
Net income | 24,984 | 24,984 | |||
Other comprehensive (loss) income, net of tax | (34,524) | (34,524) | |||
Repurchase of common stock (in shares) | (37) | ||||
Repurchase of common stock | (730) | (730) | |||
Common stock issuance for options exercised (in shares) | 242 | ||||
Common stock issuance for options exercised | 1,673 | $ 3 | 1,670 | ||
Vesting of restricted stock grants (in shares) | 48 | ||||
5-for-4 stock split (in shares) | 3,495 | ||||
5-for-4 stock split | 0 | $ 35 | (35) | ||
Stock-based compensation expense | $ 1,183 | 1,183 | |||
Balance at the end of the period (in shares) at Dec. 31, 2022 | 17,475,109 | 17,475 | |||
Balance at the end of the period at Dec. 31, 2022 | $ 202,382 | $ 175 | $ 123,886 | $ 114,888 | $ (36,567) |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization and Summary of Significant Accounting Policies | Organization and Summary of Significant Accounting Policies Organization FVCBankcorp, Inc. (the "Company"), a Virginia corporation, was formed in 2015 and is registered as a bank holding company under the Bank Holding Company Act of 1956, as amended. The Company is headquartered in Fairfax, Virginia. The Company conducts its business activities through the branch offices of its wholly owned subsidiary bank, FVCbank (the "Bank"). The Company exists primarily for the purposes of holding the stock of its subsidiary, the Bank. The Bank was organized under the laws of the Commonwealth of Virginia to engage in a general banking business serving the Washington, D.C. metropolitan area. The Bank commenced regular operations on November 27, 2007 and is a member of the Federal Reserve System. It is subject to the regulations of the Board of Governors of the Federal Reserve System (the "Federal Reserve") and the State Corporation Commission of Virginia. Consequently, it undergoes periodic examinations by these regulatory authorities. On August 31, 2021, the Bank made an investment in Atlantic Coast Mortgage, LLC ("ACM") for $20.4 million to obtain a 28.7% ownership interest in ACM. This ownership interest is subject to an earnback option of up to 3.7% over the next three years. As of December 31, 2022, our percentage ownership had decreased to 27.7%. In addition, the Bank provides a warehouse lending facility to ACM, which includes a construction-to-permanent financing line, and has developed portfolio mortgage products to diversify the Bank's held to investment loan portfolio. The investment is accounted for using the equity method of accounting. On December 15, 2022, the Company announced that the Board of Directors approved a five-for-four split of the Company's common stock in the form of a 25% stock dividend for shareholders of record on January 9, 2023, payable on January 31, 2023. Earnings per share and all other per share information reflected in the Company's consolidated financial statements have been adjusted for the five-for-four split of the Company's common stock for comparative purposes. In February 2023 as part of the Company’s asset/liability management process, the Bank sold $40.3 million of investment securities available-for-sale at an after-tax loss of $3.6 million to de-leverage its balance sheet and invest funds in higher-yielding assets. Also during the first quarter of 2023 as part of the Bank’s asset/liability management process, the Bank fixed $150 million of wholesale funding through the execution of pay-fixed/receive-floating interest rate swaps with a weighted-average rate of 3.50% and maturity of five years. For a full discussion of these transactions, please see Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations, "Discussion of Analysis of Financial Condition , Overview ," above. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The accounting and reporting policies of the Company are in accordance with accounting principles generally accepted in the United States of America and conform to general practices within the banking industry. (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company. All material intercompany balances and transactions have been eliminated in consolidation. (b) Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and contingent liabilities, at of the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to accounting for impairment testing of goodwill, the allowance for loan losses, the valuation of deferred tax assets, and other-than-temporary impairment. (c) Accounting for Business Combinations Business combinations are accounted for under the acquisition method. The acquisition method requires that the assets acquired and liabilities assumed be recorded, based on their estimated fair values at the date of acquisition. The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed, including identifiable intangibles, is recorded as goodwill. (d) Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. Generally, federal funds are purchased and sold for one day periods. (e) Investment Securities Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive (loss) income, net of tax. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. Gains and losses on the sale of securities are determined using the specific identification method. The Company regularly evaluates its securities whose values have declined below their amortized cost to assess whether the decline in fair value is other-than-temporary. The Company considers various factors in determining whether a decline in fair value is other-than-temporary including the issuer's financial condition and/or future prospects, the effects of changes in interest rates or credit spreads, the expected recovery period and other quantitative and qualitative information. The valuation of securities for impairment is a process subject to estimation, judgment and uncertainty and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions and future changes in assessments of the aforementioned factors. It is expected that such factors will change in the future, which may result in future other-than-temporary impairments. For impairments of debt securities that are deemed to be other-than-temporary, the credit portion of an other-than-temporary impairment loss is recognized in earnings and the non-credit portion is recognized in accumulated other comprehensive (loss) income in those situations where the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts are recognized in interest income using the effective interest method. Prepayments of the mortgages securing mortgage-backed securities may affect the yield to maturity. The Company uses actual principal prepayment experience and estimates of future principal prepayments in calculating the yield necessary to apply the effective interest method. (f) Loans and Allowance for Loan Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until loan maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, and net of the allowance for loan losses and deferred fees and costs. Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment of the yield using the payment terms required by the loan contract. During 2020, as a result of the Company's acquisition of Colombo Bank ("Colombo"), the loan portfolio was segregated between loans initially accounted for under the amortized cost method (referred to as "originated" loans) and loans acquired (referred to as "acquired" loans). The loans segregated to the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either Accounting Standards Codification ("ASC") Topic 310-30 or ASC Topic 310-20. Purchased credit-impaired ("PCI") loans, which are the non-performing loans acquired in the Company's acquisition of Colombo, are loans acquired at a discount (that is due, in part, to credit quality). These loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. The Company accounts for interest income on all loans acquired at a discount (that is due, in part, to credit quality) based on the acquired loans' expected cash flows. The acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the cash flows expected at acquisition and the investment in the loans, or the "accretable yield," is recognized as interest income utilizing the level-yield method over the life of each pool. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment to any previously recognized allowance for loan loss for that pool of loans and then through an increase in the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). The Company periodically evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected for PCI loans. These evaluations, performed quarterly, require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractual required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. On an aggregate basis, if the acquired pools of PCI loans perform better than originally expected, the Company would expect to receive more future cash flows than originally modeled at the acquisition date. For the pools with better than expected cash flows, the forecasted increase would be recorded as an additional accretable yield that is recognized as a prospective increase to the Company's interest income on loans. Loans are generally placed into nonaccrual status when they are past-due 90 days as to either principal or interest or when, in the opinion of management, the collection of principal and/or interest is in doubt. A loan remains in nonaccrual status until the loan is current as to payment of both principal and interest or past-due less than 90 days and the borrower demonstrates the ability to pay and remain current. Loans are charged-off when a loan or a portion thereof is considered uncollectible. When cash payments are received, they are applied to principal first, then to accrued interest. It is the Company's policy not to record interest income on nonaccrual loans until principal has become current. In certain instances, accruing loans that are past due 90 days or more as to principal or interest may not go on nonaccrual status if the Company determines that the loans are well secured and are in the process of collection. Nonperforming assets include nonaccrual loans, loans past-due 90 days or more and other real estate owned ("OREO"). The allowance for loan losses is increased or decreased by provisions for or reversals of loan losses, increased by recoveries of previously charged-off loans, and decreased by loan charge-offs. The Company maintains the allowance for loan losses at a level that represents management's best estimate of probable and inherent losses in the loan portfolio. Both the amount of the provision expense and the level of the allowance for loan losses are impacted by many factors, including general and industry-specific economic conditions, actual and expected loan losses, historical trends and specific conditions of the individual borrowers. Unusual and infrequently occurring events, such as weather-related disasters or disease epidemics or pandemics, may impact management's assessment of possible loan losses. As a part of the analysis, the Company uses comparative peer group data and qualitative factors such as levels of and trends in delinquencies, nonaccrual loans, charged-off loans, changes in volume and terms of loans, effects of changes in lending policy, experience and ability and depth of management, national and local economic trends and conditions and concentrations of credit, competition, and loan review results to support estimates. For purposes of monitoring the performance of the loan portfolio and estimating the allowance for loan losses, the Company's loans receivable portfolio is segmented as follows: commercial real estate, commercial and industrial, commercial construction, consumer residential, and consumer nonresidential. Commercial Real Estate Loans . Commercial real estate loans are secured by both owner occupied and investor owned commercial properties, including multi-family residential real estate. Collateral for this loan type includes various types of commercial real estate, including office, retail, warehouse, industrial and other non-residential types of properties. These loans typically involve larger loan balances concentrated with single borrowers or groups of related borrowers. Additionally, the repayment of loans secured by income-producing properties is typically dependent upon the successful operation of a business or real estate project and thus may be subject to adverse conditions in the commercial real estate market or in the general economy. The Company generally requires personal guarantees or endorsements with respect to these loans and loan-to-value ratios for real estate-commercial loans generally do not exceed 80%. Commercial and Industrial Loans . The Company makes commercial loans to qualified businesses within its market area. The commercial lending portfolio consists primarily of commercial and industrial loans for a variety of business purposes, including working capital and the financing of accounts receivable, property, plant and equipment. The Company has a government contract lending group which provides secured lending to government contracting firms and businesses based primarily on receivables from the federal government. Commercial and industrial loans generally have a higher degree of risk than other certain types of loans. Commercial loans typically are made on the basis of the borrower's ability to repay the loan from the cash flow from its business and are secured by business assets, such as commercial real estate, accounts receivable, equipment and inventory, the values of which may fluctuate over time and generally cannot be appraised with as much precision as residential real estate. As a result, the availability of funds for the repayment of commercial loans may be substantially dependent upon the commercial success of the business itself. To manage these risks, the Company's policy is to secure commercial loans originated with both the assets of the business, which are subject to the risks described above, and other additional collateral and guarantees that may be available. Commercial Construction Loans . The Company's commercial construction loan portfolio consists of acquisition, development, and construction of commercial real estate, including multi-family properties. Our typical commercial construction loan involves property that will ultimately be leased to a non-owner occupant. Construction lending entails significant additional risks as they often involve larger loan balances concentrated with single borrowers or groups of related borrowers. Construction loans also involve additional risks since funds are advanced while the property is under construction, which property has uncertain value prior to the completion of construction. Thus, it is more difficult to accurately evaluate the total loan funds required to complete a project and related loan-to-value ratios. To reduce the risks associated with construction lending, the Company generally limits loan-to-value ratios to 80% of when-completed appraised values for owner-occupied residential or commercial properties and for investor-owned residential or commercial properties. Construction loan agreements may include provisions which allow for the payment of contractual interest from an interest reserve. Amounts drawn from an interest reserve increase the amount of the outstanding balance of the construction loan. This is an industry standard practice. Consumer Residential . This portfolio consists primarily of home equity lines of credit ("HELOCs") that we originate in our market areas. Our HELOCs generally have a maximum loan to value of up to 85%, however, actual loan to values are typically lower than the maximum. We have also purchased portfolios of 1-4 family residential first mortgage loans on properties located in our market area for yield and diversification. Consumer Nonresidential . The Company's consumer nonresidential loans consist primarily of installment loans made to individuals for personal, family and household purposes. In addition, we have purchased pools of unsecured consumer loans and student loans from a third party for yield and diversification. Consumer loans may entail greater risk than certain other types of loans, particularly in the case of consumer loans that are unsecured or secured by rapidly depreciable assets, such as automobiles. The Company's policy for consumer loans is to accept moderate risk while minimizing losses, primarily through a careful credit and financial analysis of the borrower. In evaluating consumer loans, the Company requires its lending officers to review the borrower's collateral and stability of income, past credit history, amount of debt currently outstanding and the impact of these factors on the ability of the borrower to repay the loan in a timely manner. The Company's allowance for loan losses is based first on a segmentation of its loan portfolio by general loan type, or portfolio segments. For originated loans, certain portfolio segments are further disaggregated and evaluated collectively for impairment based on loan segments, which are largely based on the type of collateral underlying each loan. For purposes of this analysis, the Company categorizes loans into one of five categories: commercial and industrial, commercial real estate, commercial construction, consumer residential, and consumer nonresidential loans. Typically, financial institutions use their historical loss experience and trends in losses for each loan category which are then adjusted for portfolio trends and economic and environmental factors in determining their allowance for loan losses. Since the Bank's inception in 2007, the Bank has experienced minimal loss history within its loan portfolio. Because of this, the allowance model uses the average loss rates of similar institutions (a custom peer group) as a baseline which is then adjusted based on the Company's particular qualitative loan portfolio characteristics and environmental factors. The indicated loss factors resulting from this analysis are applied for each of the five categories of loans. The Company also maintains an allowance for loan losses for acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition, and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining discount recorded at the time of acquisition. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are determined to be impaired and, therefore, individually evaluated for impairment. The Company determines and recognizes impairment of certain loans when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the loan agreement. A loan is not considered impaired during a period of delay in payment if the Company expects to collect all amounts due, including past-due interest. The Company individually assigns loss factors to all loans that have been identified as having loss attributes, as indicated by deterioration in the financial condition of the borrower or a decline in underlying collateral value if the loan is collateral dependent. The Company evaluates the impairment of certain loans on a loan by loan basis for those loans that are adversely risk rated. Measurement of impairment is based on the expected future cash flows of an impaired loan, which are discounted at the loan's effective interest rate, or measured on an observable market value, if one exists, or the fair value of the collateral underlying the loan, discounted to consider estimated costs to sell the collateral for collateral-dependent loans. If the net collateral value is less than the loan balance (including accrued interest and any unamortized premium or discount associated with the loan) an impairment is recognized and a specific reserve is established for the impaired loan. Loans classified as loss loans are fully reserved or charged-off. In addition, various regulatory agencies, as part of their examination process, periodically review the Company's allowance for loan losses. These agencies may require the Company to recognize additions to the allowance based on their risk evaluation and credit judgment. Management believes that the allowance for loan losses at December 31, 2022 and 2021 is a reasonable estimate of probable and inherent losses in the loan portfolio at those dates. Loans considered to be troubled debt restructuring ("TDRs") are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured loans are considered impaired loans and may either be in accruing status or nonaccruing status. Nonaccruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category in the year subsequent to the restructuring if their revised loan terms are considered to be consistent with terms that can be obtained in the credit market for loans with comparable risk and if they meet certain performance criteria. The Company adopted Accounting Standards Update ("ASU") 2016-13 as of January 1, 2023 in accordance with the required implementation date and recorded the impact of adoption to retained earnings, net of deferred income taxes, as required by the standard. The adjustment recorded at adoption was not significant to the overall allowance for credit losses or shareholders' equity as compared to December 31, 2022 and consisted of adjustments to the allowance for credit losses on loans as well as an adjustment to the Company's reserve for unfunded commitments. Subsequent to adoption, the Company will record adjustments to its allowances for credit losses and reserves for unfunded commitments through the provision for credit losses in the consolidated statements of income. (g) Premises, Equipment, and Leases Land is carried at cost. Premises, furniture, equipment, and leasehold improvements are carried at cost less accumulated depreciation and amortization. Depreciation of premises, furniture and equipment is computed using the straight-line method over estimated useful lives from three one The Company follows ASU 2016-02 "Leases (Topic 842)" and all subsequent ASUs that modified Topic 842. Contracts are evaluated to determine whether they are or contain a lease in accordance with Topic 842. Lease liabilities represent the Company's obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company's incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company's right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease payments for short-term leases are recognized as lease expense on a straight-line basis over the lease term, or for variable lease payments, in the period in which the obligation was incurred. Payments for leases with terms longer than twelve months are included in the determination of the lease liability. Payments may be fixed for the term of the lease or variable. If the lease agreement provides a known escalator, such as a specified percentage increase per year or a stated increase at a specified time, the variable payment is included in the cash flows used to determine the lease liability. If the variable payment is based upon an unknown escalator, such as the consumer price index at a future date, the increase is not included in the cash flows used to determine the lease liability. The Company's leases provide known escalators that are included in the determination of the lease liability, with the exception of three lease agreements. The Company's leases offer the option to extend the lease term. For each of the leases, the Company is reasonably certain it will exercise the options and has included the additional time and lease payments in the calculation of the lease liability. None of the Company's leases provide for residual value guarantees and none provide restrictions or covenants that would impact dividends or require incurring additional financial obligations. (h) Goodwill and Intangible Assets Goodwill, which represents the excess of purchase price over fair value of net assets acquired, is not amortized but is evaluated at least annually for impairment by comparing its fair value with its carrying amount. Impairment is indicated when the carrying amount of a reporting unit exceeds its estimated fair value. Goodwill arises from business combinations and is generally determined as the excess of the fair value of the consideration transferred, plus the fair value of any noncontrolling interests in the acquiree, over the fair value of the net 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 amortized, but tested for impairment at least annually or more frequently if events and circumstances exist; that indicate that a goodwill impairment test should be performed. The Company performs the impairment test annually during the fourth quarter. Intangible assets with definite useful lives are amortized over their estimated useful lives to their estimated residual values. Goodwill is the only intangible asset with an indefinite life on our balance sheet. No impairment was recorded for 2022 and 2021. (i) Other Real Estate Owned Assets acquired through, or in lieu of, loan foreclosure are held for sale. At the time of acquisition, these properties are recorded at fair value less estimated selling costs, with any write down charged to the allowance for loan losses and any gain on foreclosure recorded in net income, establishing a new cost basis. Subsequent to foreclosure, valuations of the assets are periodically performed by management, and these assets are subsequently accounted for at lower of cost or fair value less estimated selling costs. Adjustments are made for subsequent decline in the fair value of the assets less selling costs. Revenue and expenses from operations and valuation changes are charged to operating income in the year of the transaction. (j) Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance date, which is the cash surrender value. The increase in the cash surrender value over time is recorded as other non-interest income. The Company monitors the financial strength and condition of the counterparties. (k) 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 surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. (l) Income Taxes Deferred taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for deductible temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. The Company had no such liability recorded as of December 31, 2022 and 2021. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. (m) Comprehensive Income (Loss) Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains (losses) on securities available-for-sale and interest rate swaps for 2022 and 2021, which are also recognized as separate components of equity. (n) 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 16. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. (o) Equity-based Compensation The Company recognizes in the income statement the grant date fair value of stock options and other equity-based compensation. The Company classifies stock awards as either an equity award or a liability award. Equity classified awards are valued as of the grant date using either an observable market price or a valuation methodology. Liability classified awards are valued at fair value at each reporting date. For the years presented, all of the Company's stock options are classified as equity awards. The fair value related to forfeitures of stock options and other equity-based compensation are recorded to the income statement as they occur, reducing equity-based compensation expense in that period. During 2018, the Company began granting restricted stock units which are granted at the fair market value of the Company's common stock on the grant date. Most restricted stock units vest in one-quarter increments on the anniversary date of the grant. The Company did not grant stock options in the years ended December 31, 2022 and 2021. (p) 401(k) Plan Employee 401(k) plan expense is the amount of matching contributions paid by the Company. 401(k) plan expense was $424 thousand and $377 thousand for the years ended December 31, 2022 and 2021, respectively. (q) Earnings Per Share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Common stock equivalents that may be issued by the Company consist primarily of outstanding stock options and restricted stock units, and the dilutive potential common shares resulting from outstanding stock options and restricted stock units are determined using the treasury method. The effects of anti-dilutive common stock equivalents are excluded from the calculation of diluted earnings per share. (r) Reclassifications Certain prior year amounts have been reclassified to conform to the current year's method of presentation. None of these reclassifications were significant. (s) Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" that introduced the current expected credit losses ("CECL") model. The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied |
Investment Securities and Other
Investment Securities and Other Investments | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities and Other Investments | Investment Securities and Other Investments Amortized cost and fair values of securities held-to-maturity and securities available-for-sale as of December 31, 2022 and 2021, are as follows: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Held-to-maturity Securities of state and local municipalities tax exempt $ 264 $ — $ (12) $ 252 Total Held-to-maturity Securities $ 264 $ — $ (12) $ 252 Available-for-sale Securities of U.S. government and federal agencies $ 13,559 $ — $ (2,555) $ 11,004 Securities of state and local municipalities tax exempt 1,385 — (9) 1,376 Securities of state and local municipalities taxable 506 — (62) 444 Corporate bonds 21,212 — (2,154) 19,058 SBA pass-through securities 74 — (7) 67 Mortgage-backed securities 282,858 — (45,424) 237,434 Collateralized mortgage obligations 9,998 — (1,312) 8,686 Total Available-for-sale Securities $ 329,592 $ — $ (51,523) $ 278,069 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Held-to-maturity Securities of state and local municipalities tax exempt $ 264 $ 6 $ — $ 270 Total Held-to-maturity Securities $ 264 $ 6 $ — $ 270 Available-for-sale Securities of U.S. government and federal agencies $ 13,557 $ — $ (283) $ 13,274 Securities of state and local municipalities tax exempt 1,393 58 — 1,451 Securities of state and local municipalities taxable 607 — (11) 596 Corporate bonds 13,970 259 (78) 14,151 SBA pass-through securities 107 1 — 108 Mortgage-backed securities 316,313 1,352 (3,827) 313,838 Collateralized mortgage obligations 14,230 113 (149) 14,194 Total Available-for-sale Securities $ 360,177 $ 1,783 $ (4,348) $ 357,612 The Company had securities with a market value of $4.1 million and $5.8 million pledged with the Federal Reserve Bank of Richmond (the "FRB") for the years ended December 31, 2022 and 2021, respectively. The Company had securities with a market value of $104.6 million and $79.7 million pledged with the Treasury Board of Virginia at the Community Bankers' Bank for the years ended December 31, 2022 and 2021, respectively. The following table shows fair value and gross unrealized losses for available-for-sale and held-to-maturity securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022 and 2021, respectively. The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security's market value exceeded its amortized cost on other days during the prior twelve-month period. Securities that have been in a continuous unrealized loss position are as follows: Less Than 12 Months 12 Months or Longer Total At December 31, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities of U.S. government and federal agencies $ — 0 $ — $ 11,004 $ (2,555) $ 11,004 $ (2,555) Securities of state and local municipalities tax exempt 1,628 (21) — — 1,628 (21) Securities of state and local municipalities taxable — — 444 (62) 444 (62) Corporate bonds 12,344 (1,119) 5,964 (1,035) 18,308 (2,154) SBA pass-through securities — — 67 (7) 67 (7) Mortgage-backed securities 26,486 (1,831) 210,948 (43,593) 237,434 (45,424) Collateralized mortgage obligations 2,601 (238) 6,085 (1,074) 8,686 (1,312) Total $ 43,059 $ (3,209) $ 234,512 $ (48,326) $ 277,571 $ (51,535) Less Than 12 Months 12 Months or Longer Total At December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized Securities of U.S. government and federal agencies $ 13,275 $ (283) $ — $ — $ 13,275 $ (283) Securities of state and local municipalities taxable 595 (11) — — 595 (11) Corporate bonds 3,922 (78) — — 3,922 (78) Mortgage-backed securities 216,278 (3,175) 19,225 (652) 235,503 (3,827) Collateralized mortgage obligations 3,362 (82) 1,814 (67) 5,176 (149) Total $ 237,432 $ (3,629) $ 21,039 $ (719) $ 258,471 $ (4,348) Securities of U.S. government and federal agencies: The unrealized losses on three available-for-sale securities were caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Securities of state and local municipalities tax-exempt: The unrealized losses on three of the investments in securities of state and local municipalities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. These investments carry an S&P investment grade rating of AA+ and AA. Securities of state and local municipalities taxable: The unrealized loss on one of the investment in securities of state and local municipalities were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. The investment carries an S&P investment grade rating of AAA. Corporate bonds: The unrealized losses on the Company's investments on fifteen corporate bonds were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Two of these investments carry an S&P investment grade rating of BBB and BBB+. The remaining thirteen investments do not carry a rating. SBA pass-through securities: The unrealized losses on one available-for-sale security was caused by interest rate increases. The contractual terms of these investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Mortgage-backed securities: The unrealized losses on the Company's investment in one hundred and six mortgage-backed securities were caused by interest rate increases. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company's investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. Collateralized mortgage obligations ("CMOs"): The unrealized loss associated with twenty-nine CMOs was caused by interest rate increases. The contractual cash flows of these investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company's investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2022. The amortized cost and fair value of securities held-to-maturity and available-for-sale as of December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. 2022 Held-to-maturity Available-for-sale Amortized Fair Amortized Fair After 1 year through 5 years $ 264 $ 252 $ 4,935 $ 4,776 After 5 years through 10 years — — 48,978 43,396 After 10 years — — 275,679 229,897 Total $ 264 $ 252 $ 329,592 $ 278,069 For the years ended December 31, 2022 and 2021, proceeds from principal repayments of securities were $37.1 million and $48.0 million, respectively. No securities were sold during 2022 and 2021. There were no realized gains or losses in 2022 and 2021, respectively. The Company has other investments in the form of restricted stock totaling $15.6 million and $6.4 million at December 31, 2022 and 2021, respectively. The following table discloses the types of investments included in other investments: 2022 2021 Federal Reserve stock $ 4,378 $ 4,378 FHLB stock 11,087 1,847 Community Bankers' Bank stock 122 122 Atlantic Bankers' Bank stock 25 25 Total $ 15,612 $ 6,372 As a member of the FRB and the FHLB, the Bank is required to hold stock in these entities. Stock membership in Community Bankers' Bank allows the Company to secure overnight funding and participate in other services offered by this institution. These investments are carried at cost since no active trading markets exist. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | Loans and Allowance for Loan Losses A summary of loan balances by type follows: 2022 2021 Originated Acquired Total Originated Acquired Total Commercial real estate $ 1,085,513 $ 14,748 $ 1,100,261 $ 887,310 $ 18,802 $ 906,112 Commercial and industrial 242,307 2,913 245,220 199,040 3,710 202,750 Commercial construction 147,436 503 147,939 186,572 1,043 187,615 Consumer real estate 322,579 17,012 339,591 176,682 23,922 200,604 Consumer nonresidential 7,661 24 7,685 10,277 27 10,304 $ 1,805,496 $ 35,200 $ 1,840,696 $ 1,459,881 $ 47,504 $ 1,507,385 Less: Allowance for loan losses 16,040 — 16,040 13,829 — 13,829 Unearned income and (unamortized premiums), net 262 — 262 3,536 — 3,536 Loans, net $ 1,789,194 $ 35,200 $ 1,824,394 $ 1,442,516 $ 47,504 $ 1,490,020 During 2018, as a result of the Company's acquisition of Colombo, the loan portfolio was segregated between loans initially accounted for under the amortized cost method (referred to as "originated" loans) and loans acquired (referred to as "acquired" loans). The loans segregated to the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either ASC Topic 310-30 or ASC 310-20. The outstanding principal balance and related carrying amount of acquired loans included in the consolidated statement of condition as of December 31, 2022 and 2021 are as follows: 2022 Purchased credit impaired acquired loans evaluated individually for future credit losses Outstanding principal balance $ 24 Carrying amount — Other acquired loans Outstanding principal balance 35,604 Carrying amount 35,200 Total acquired loans Outstanding principal balance 35,628 Carrying amount 35,200 2021 Purchased credit impaired acquired loans evaluated individually for future credit losses Outstanding principal balance $ 207 Carrying amount — Other acquired loans Outstanding principal balance 48,049 Carrying amount 47,504 Total acquired loans Outstanding principal balance 48,256 Carrying amount 47,504 The following table presents changes for the year ended December 31, 2022 and 2021 in the accretable yield on purchased credit impaired loans for which the Company applies ASC 310-30. Balance at January 1, 2022 $ 3 Accretion (197) Reclassification of nonaccretable difference due to improvement in expected cash flows 33 Other changes, net 161 Balance at December 31, 2022 $ — Balance at January 1, 2021 $ 216 Accretion (217) Reclassification of nonaccretable difference due to improvement in expected cash flows 54 Other changes, net (50) Balance at December 31, 2021 $ 3 An analysis of the allowance for loan losses for the years ended December 31, 2022 and 2021 follows: Commercial Commercial and Commercial Consumer Real Consumer Total 2022 Allowance for loan losses: Beginning Balance $ 8,995 $ 1,827 $ 2,009 $ 781 $ 217 $ 13,829 Charge-offs — (396) — — (101) (497) Recoveries — — — 1 78 79 Provision (reversal) 1,782 1,192 (510) 262 (97) 2,629 Ending Balance $ 10,777 $ 2,623 $ 1,499 $ 1,044 $ 97 $ 16,040 Commercial Commercial and Commercial Consumer Real Consumer Total 2021 Allowance for loan losses: Beginning Balance $ 9,291 $ 2,546 $ 1,960 $ 690 $ 471 $ 14,958 Charge-offs (477) (117) — — (255) (849) Recoveries 24 — — 35 161 220 Provision (reversal) 157 (602) 49 56 (160) (500) Ending Balance $ 8,995 $ 1,827 $ 2,009 $ 781 $ 217 $ 13,829 The following table presents the recorded investment in loans and impairment method as of December 31, 2022 and 2021, by portfolio segment: Allowance for Loan Losses Commercial Commercial Commercial Consumer Consumer Total 2022 Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ — $ 86 $ — $ — $ — $ 86 Purchased credit impaired — — — — — — Collectively evaluated for impairment 10,777 2,537 1,499 1,044 97 15,954 $ 10,777 $ 2,623 $ 1,499 $ 1,044 $ 97 $ 16,040 Loans Receivable Commercial Commercial Commercial Consumer Consumer Total 2022 Financing receivables: Ending Balance Individually evaluated for impairment $ 1,703 $ 1,319 $ — $ 1,041 $ — $ 4,063 Purchased credit impaired loans — — — — — — Collectively evaluated for impairment 1,098,558 243,901 147,939 338,550 7,685 1,836,633 $ 1,100,261 $ 245,220 $ 147,939 $ 339,591 $ 7,685 $ 1,840,696 Allowance for Loan Losses Commercial Commercial Commercial Consumer Consumer Total 2021 Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ — $ 181 $ — $ 5 $ — $ 186 Purchased credit impaired loans — — — — — — Collectively evaluated for impairment 8,995 1,646 2,009 776 217 13,643 $ 8,995 $ 1,827 $ 2,009 $ 781 $ 217 $ 13,829 Loans Receivable Commercial Commercial Commercial Consumer Consumer Total 2021 Financing receivables: Ending Balance Individually evaluated for impairment $ 11,915 $ 5,214 $ 1,557 $ 343 $ — $ 19,029 Purchased credit impaired loans — — — — — — Collectively evaluated for impairment 894,197 197,536 186,058 200,261 10,304 1,488,356 $ 906,112 $ 202,750 $ 187,615 $ 200,604 $ 10,304 $ 1,507,385 Impaired loans by class excluding purchased credit impaired, as of December 31, 2022 and 2021 are summarized as follows: Impaired Loans – Originated Loan Portfolio Recorded Unpaid Related Average Interest 2022 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial 1,319 1,329 86 1,604 107 Commercial construction — — — — — Consumer real estate — — — — — Consumer nonresidential — — — — — $ 1,319 $ 1,329 $ 86 $ 1,604 $ 107 2022 With no related allowance: Commercial real estate $ 1,703 $ 1,703 $ — $ 1,704 $ 135 Commercial and industrial — — — — — Commercial construction — — — — — Consumer real estate 1,041 1,044 — 1,048 34 Consumer nonresidential — — — — — $ 2,744 $ 2,747 $ — $ 2,752 $ 169 Impaired Loans – Originated Loan Portfolio Recorded Unpaid Related Average Interest 2021 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial 1,678 1,688 181 1,711 95 Commercial construction — — — — — Consumer real estate 93 93 5 95 7 Consumer nonresidential — — — — — $ 1,771 $ 1,781 $ 186 $ 1,806 $ 102 2021 With no related allowance: Commercial real estate $ 11,915 $ 11,915 $ — $ 11,947 $ 581 Commercial and industrial 3,536 3,536 — 3,660 238 Commercial construction 1,557 1,596 — 1,597 174 Consumer real estate 250 250 — 250 28 Consumer nonresidential — — — — — $ 17,258 $ 17,297 $ — $ 17,454 $ 1,021 There were no impaired loans in the acquired loan portfolio as of December 31, 2022 and 2021, respectively. No additional funds are committed to be advanced in connection with the impaired loans. There were no nonaccrual loans excluded from the impaired loan disclosure. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis typically includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. The Company uses the following definitions for risk ratings: Pass – Loans listed as pass include larger non-homogeneous loans not meeting the risk rating definitions below and smaller, homogeneous loans not assessed on an individual basis. Special Mention – Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date. Substandard – Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the enhanced possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful – Loans classified as doubtful include those loans which have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses make collection or liquidation in full, based on currently known facts, conditions and values, improbable. Loss – Loans classified as loss include those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted. Even though partial recovery may be achieved in the future, it is neither practical nor desirable to defer writing off these loans. Based on the most recent analysis performed, the risk category of loans by class of loans was as follows as of December 31, 2022 and 2021: 2022 – Originated Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 1,077,526 $ 237,638 $ 147,436 $ 320,735 $ 7,661 $ 1,790,996 Special mention 6,284 3,350 — 803 — 10,437 Substandard 1,703 1,319 — 1,041 — 4,063 Doubtful — — — — — — Loss — — — — — — Total $ 1,085,513 $ 242,307 $ 147,436 $ 322,579 $ 7,661 $ 1,805,496 2022 – Acquired Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 14,748 $ 2,913 $ 503 $ 17,012 $ 24 $ 35,200 Special mention — — — — — — Substandard — — — — — — Doubtful — — — — — — Loss — — — — — — Total $ 14,748 $ 2,913 $ 503 $ 17,012 $ 24 $ 35,200 2021 – Originated Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 875,395 $ 193,426 $ 182,497 $ 176,271 $ 10,277 $ 1,437,866 Special mention — 400 2,518 68 — 2,986 Substandard 11,915 5,214 1,557 343 — 19,029 Doubtful — — — — — — Loss — — — — — — Total $ 887,310 $ 199,040 $ 186,572 $ 176,682 $ 10,277 $ 1,459,881 2021 – Acquired Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 18,802 $ 3,710 $ 1,043 $ 23,922 $ 27 $ 47,504 Special mention — — — — — — Substandard — — — — — — Doubtful — — — — — — Loss — — — — — — Total $ 18,802 $ 3,710 $ 1,043 $ 23,922 $ 27 $ 47,504 There were no impaired loans in the acquired loan portfolio at both December 31, 2022 and December 31, 2021. No additional funds are committed to be advanced in connection with the impaired loans. There were no nonaccrual loans excluded from the impairment loan disclosure. The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, collateral adequacy, credit documentation, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes larger, non-homogeneous loans such as commercial real estate and commercial and industrial loans. This analysis is performed on an ongoing basis as new information is obtained. At December 31, 2022, the Company had $10.4 million in loans identified as special mention within the originated loan portfolio, an increase of $7.5 million from December 31, 2021. Special mention rated loans are loans that have a potential weakness that deserves management's close attention; however, the borrower continues to pay in accordance with their contract. These loans do not have a specific reserve and are considered well-secured. At December 31, 2022, the Company had $4.1 million in loans identified as substandard within the originated loan portfolio, a decrease of $15.0 million from December 31, 2021. Substandard rated loans are loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. For each of these substandard loans, a liquidation analysis is completed. As of December 31, 2022, specific reserves on originated and acquired loans totaling $0.1 million, has been allocated within the allowance for loan losses to supplement any shortfall of collateral. Past due and nonaccrual loans presented by loan class were as follows as of December 31, 2022 and 2021: 2022 – Originated Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ 546 $ — $ 2,096 $ 2,642 $ 1,082,871 $ 1,085,513 $ 393 $ 1,703 Commercial and industrial 512 — 1,319 1,831 240,476 242,307 — 1,319 Commercial construction — — 125 125 147,311 147,436 125 — Consumer real estate 805 — 953 1,758 320,821 322,579 825 128 Consumer nonresidential — 63 — 63 7,598 7,661 — — Total $ 1,863 $ 63 $ 4,493 $ 6,419 $ 1,799,077 $ 1,805,496 $ 1,343 $ 3,150 2022 – Acquired Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ — $ — $ — $ — $ 14,748 $ 14,748 $ — $ — Commercial and industrial — — — — 2,913 2,913 — — Commercial construction — — — — 503 503 — — Consumer real estate — — — — 17,012 17,012 — — Consumer nonresidential — — — — 24 24 — — Total $ — $ — $ — $ — $ 35,200 $ 35,200 $ — $ — 2021 – Originated Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ — $ — $ — $ — $ 887,310 $ 887,310 $ — $ — Commercial and industrial — — 1,678 1,678 197,362 199,040 — 1,678 Commercial construction — — 1,557 1,557 185,015 186,572 — 1,557 Consumer real estate — — 250 250 176,432 176,682 — 250 Consumer nonresidential 14 21 18 53 10,224 10,277 18 — Total $ 14 $ 21 $ 3,503 $ 3,538 $ 1,456,343 $ 1,459,881 $ 18 $ 3,485 2021 – Acquired Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ — $ — $ — $ — $ 18,802 $ 18,802 $ — $ — Commercial and industrial — — — — 3,710 3,710 — — Commercial construction — — — — 1,043 1,043 — — Consumer real estate 234 — 5 239 23,683 23,922 5 — Consumer nonresidential 2 — — 2 25 27 — — Total $ 236 $ — $ 5 $ 241 $ 47,263 $ 47,504 $ 5 $ — There were overdrafts of $1.3 million and $58 thousand at December 31, 2022 and 2021, respectively, which have been reclassified from deposits to loans. At December 31, 2022 and 2021, loans with a carrying value of $458.7 million and $290.3 million were pledged to the FHLB. There were no defaults of TDRs where the default occurred within twelve months of the restructuring during the years ended December 31, 2022 and December 31, 2021. The following table presents the TDRs originated during the year ended December 31, 2022: Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial real estate 1 $ 742 $ 742 Total 1 $ 742 $ 742 No TDRs were originated during the year ended December 31, 2021. For each of December 31, 2022 and 2021, the Company had a recorded investment in TDRs of $830 thousand and $92 thousand, respectively. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | Other Real Estate OwnedThe Company had no OREO property at December 31, 2022 and December 31, 2021. There was no OREO activity during 2022 and $3.9 million was sold during 2021 where the Company recognized a gain on sale of OREO of $236 thousand. There were no foreclosed residential real estate properties recorded in OREO as a result of obtaining physical possession of the property at December 31, 2022 and 2021. There were no consumer mortgage loans secured by residential real estate properties for which formal foreclosure proceedings are in process as of December 31, 2022 and 2021. The Company recorded no impairment charges during 2022 and 2021. |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangibles | Goodwill and Intangibles As a result of the Company's past acquisitions, the Company recognized goodwill and core deposit intangibles. Information concerning amortizable intangibles follows: Acquisition of 1st Commonwealth Acquisition of Colombo Bank Total Gross Carrying Accumulated Gross Carrying Accumulated Gross Carrying Accumulated Balance at December 31, 2020 $ 204 $ 165 $ 1,950 $ 789 $ 2,154 $ 954 2021 activity: 1st Commonwealth amortization — 20 — — — 20 Colombo Bank amortization — — — 285 — 285 Balance at December 31, 2021 $ 204 $ 185 $ 1,950 $ 1,074 $ 2,154 $ 1,259 2022 activity: 1st Commonwealth amortization — 19 — — — 19 Colombo Bank amortization — — — 243 — 243 Balance at December 31, 2022 $ 204 $ 204 $ 1,950 $ 1,317 $ 2,154 $ 1,521 The aggregate amortization expense was $262 thousand for 2022 and $305 thousand for 2021. As of December 31, 2022, the estimated amortization expense for the next five years and thereafter is as follows: 2023 $ 205 2024 165 2025 125 2026 85 2027 45 Thereafter 8 $ 633 The carrying amount of goodwill for the years ended December 31, 2022 and 2021 is as follows: Balance at December 31, 2022 and 2021 $ 7,157 |
Premises, Equipment, and Leases
Premises, Equipment, and Leases | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises, Equipment, and Leases | Premises, Equipment, and Leases The following table summarizes the cost and accumulated depreciation of premises and equipment as of December 31, 2022 and 2021: 2022 2021 Leasehold improvements $ 3,068 $ 3,039 Furniture, fixtures and equipment 4,310 4,163 Computer software 1,169 1,275 Land 61 61 Buildings 196 196 Vehicles 47 47 Premises and equipment, gross $ 8,851 $ 8,781 Less: accumulated depreciation 7,631 7,197 Premises and equipment, net $ 1,220 $ 1,584 For the years ended December 31, 2022 and 2021, depreciation expense was $424 thousand and $555 thousand, respectively. The Company has entered into operating leases for office space over various terms. The leases cover an agreed upon period of time and generally have options to renew and are subject to annual increases as well as allocations for real estate taxes and certain operating expenses. The following tables present information about leases as of and for the years ended December 31, 2022 and 2021: 2022 2021 Right-of-Use-Asset $ 9,680 $ 10,167 Lease Liability $ 10,394 $ 11,111 Weighted Average Remaining Lease Term (Years) 7.9 8.9 Weighted Average discount rate 3.21 % 3.20 % Years Ended December 31, 2022 2021 Operating Lease Expense $ 1,504 $ 1,626 Cash paid for amounts included in lease liabilities $ 1,541 $ 1,559 Modification of right-of-use assets and lease liability 283 — Right-of-use assets obtained in exchange for operating lease liabilities 522 207 2023 $ 1,780 2024 1,734 2025 1,581 2026 1,486 2027 1,355 Thereafter 3,860 Total $ 11,796 Less: discount (1,402) $ 10,394 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits Remaining maturities on certificates of deposit are as follows as of December 31, 2022: 2023 $ 413,617 2024 18,107 2025 48,284 2026 11,086 2027 17,315 Thereafter 4 $ 508,413 Total time deposits greater than $250,000 were $159.5 million and $89.7 million at December 31, 2022 and 2021, respectively. At December 31, 2022 and 2021, the Company had one customer relationship whose related balance on deposit exceeded 5% of outstanding deposits. This customer relationship comprises 9% of outstanding deposits at December 31, 2022 and 17% of outstanding deposits at December 31, 2021. Brokered deposits totaled $248.0 million and $35.0 million at December 31, 2022 and 2021, respectively. |
Other Borrowed Funds
Other Borrowed Funds | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Other Borrowed Funds | Other Borrowed Funds Other borrowed funds at December 31, 2022 and 2021 consist of the following: Federal Funds Purchased FHLB Advances Subordinated Debt, net 2022 2021 2022 2021 2022 2021 Balance Outstanding at December 31, $ 30,000 $ — $ 235,000 $ 25,000 $ 19,565 $ 19,510 Maximum balance at any month end during the year $ 115,000 $ — $ 235,000 $ 25,000 $ 19,565 $ 44,167 Average balance for the year $ 22,164 $ 22 $ 48,134 $ 25,000 $ 19,535 $ 37,856 Weighted average rate on borrowings for the year ended 3.11 % 0.20 % 2.60 % 1.39 % 5.28 % 6.69 % The Company had $235.0 million and $25.0 million of FHLB advances at each of December 31, 2022 and December 31, 2021 respectively. $200.0 million of FHLB advances outstanding at December, 31, 2022 mature during the first quarter of 2023 while the remaining $35.0 million represents a daily rate borrowing that matures in December 2023. At December 31, 2022, 1-4 family residential loans with a lendable value of $168.8 million, multi-family residential loans with a lendable value of $43.0 million, home equity lines of credit with a lendable value of $6.1 million and commercial real estate loans with a lendable value of $155.7 million were pledged against an available line of credit with the FHLB totaling $584.7 million as of December 31, 2022. The lendable collateral value excess at December 31, 2022 totaled $138.5 million. The Company has unsecured lines of credit with correspondent banks totaling $265.0 million at December 31, 2022 and $265.0 million at December 31, 2021, available for overnight borrowing. At December 31, 2022, the Company had an advance of $30 million with one of the correspondent banks and none in 2021. On June 20, 2016, the Company issued $25.0 million in fixed-to-floating rate subordinated notes due June 30, 2026 in a private placement transaction. Interest was payable at 6.00% per annum, from and including June 20, 2016 to, but excluding June 30, 2021, payable semi-annually in arrears. From and including June 30, 2021 to the early redemption date, the interest rate was to reset quarterly to an interest rate per annum equal to the then current three-month LIBOR rate plus 487 basis points, payable quarterly in arrears. The Company had the option, on any scheduled interest payment date on or after June 30, 2021, to redeem the subordinated notes, in whole or in part, upon not fewer than 30 nor greater than 60 days' notice to holders, at a redemption price equal to 100% of the principal amount of the subordinated notes to be redeemed plus accrued and unpaid interest to, but excluding, the date of redemption. In August 2021, the Company provided a redemption notice to each holder of the subordinated notes that the notes would be redeemed in full on September 30, 2021 or such later date as the holder returned its note to the Company. $23.8 million of principal was redeemed and paid during the year ended December 31, 2021. The remaining principal balance of $1.2 million as of December 31, 2021 is included in other liabilities. The remaining note holders redeemed their notes in February 2022. The notes stopped accruing interest effective as of September 30, 2021 redemption date. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below: 2022 2021 Deferred Tax Assets: Allowance for loan losses $ 3,698 $ 3,131 Net operating loss carryforward – federal and state 2,466 2,785 Bank premises and equipment 265 184 Nonqualified stock options and restricted stock 658 611 Organizational and start-up expenses 10 22 Acquisition accounting adjustments 257 258 Non-accrual loan interest 59 24 Deferred loan costs 60 801 Lease liability 2,396 2,516 Unrealized loss on securities available for sale 11,876 582 Unrealized loss on interest rate swap — 17 $ 21,745 $ 10,931 Deferred Tax Liabilities: Right-of-use assets $ (2,232) $ (2,302) Unrealized gain on interest rate swap (980) — $ (3,212) $ (2,302) Net Deferred Tax Assets $ 18,533 $ 8,629 The income tax expense charged to operations for the years ended December 31, 2022 and 2021 consists of the following: 2022 2021 Current tax expense $ 5,610 $ 5,269 Deferred tax expense 395 1,007 $ 6,005 $ 6,276 Income tax expense differed from amounts computed by applying the U.S. federal income tax rate to income, before income tax expense as a result of the following: 2022 2021 Computed "expected" tax expense $ 6,313 $ 5,924 Increase (decrease) in income taxes resulting from: State income tax expense 503 472 Non-deductible expense 138 231 Tax free income (259) (217) Tax benefits from exercise of stock options (364) (163) Other (326) 29 $ 6,005 $ 6,276 The Company files income tax returns in the U.S. federal jurisdiction. With few exceptions, the Company is no longer subject to U.S. federal examination by tax authorities for years prior to 2019. |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | Derivative Financial Instruments The Company enters into interest rate swap agreements ("swap agreements") to facilitate the risk management strategies needed in order to accommodate the needs of its banking customers. The Company mitigates the risk of entering into these loan agreements by entering into equal and offsetting swap agreements with highly-rated third party financial institutions. These back-to-back swap agreements are free-standing derivatives and are recorded at fair value in the Company's consolidated statements of condition (asset positions are included in other assets and liability positions are included in other liabilities) as of December 31, 2022. The Company is party to master netting arrangements with its financial institution counterparty; however, the Company does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Parties to a centrally cleared over-the-counter derivative exchange daily payments that reflect the daily change in value of the derivative. These payments, commonly referred to as variation margin, are recorded as settlements of the derivatives' mark-to-market exposure rather than collateral against the exposures, which effectively results in any centrally cleared derivative having a Level 2 fair value that approximates zero on a daily basis, and therefore, these swap agreements were not included in the offsetting table in the Fair Value Measurement section. As of December 31, 2022, the Company entered into 15 interest rate swap agreements which were collateralized by $30 thousand in cash. As of December 31, 2021, the Company entered into 19 interest rate swap agreements which were collateralized by $6.7 million in cash. The notional amount and fair value of the Company's derivative financial instruments as of December 31, 2022 and 2021 were as follows: December 31, 2022 Notional Amount Fair Value Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps $ 74,178 $ 4,260 Pay Fixed/Receive Variable Swaps 74,178 (4,260) December 31, 2021 Notional Amount Fair Value Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps $ 80,643 $ 6,052 Pay Fixed/Receive Variable Swaps 80,643 (6,052) Interest Rate Risk Management—Cash Flow Hedging Instruments The Company uses FHLB advances and other wholesale funding from time to time as a source of funds for use in the Company's lending and investment activities and other general business purposes. This wholesale funding exposes the Company to increased interest rate risk as a result of the variability in cash flows (future interest payments). The Company believes it is prudent to reduce this interest rate risk. To meet this objective, the Company entered into interest rate swap agreements whereby the Company reduces the interest rate risk associated with the Company's variable rate advances (or other wholesale funding) from the designation date and going through the maturity date. At December 31, 2022 and 2021, the information pertaining to outstanding interest rate swap agreements used to hedge variability in cash flows is as follows: (Dollars in thousands) 2022 2021 Notional amount $ 145,000 $ 60,000 Weighted average pay rate 2.12 % 0.87 % Weighted average receive rate 4.74 % 0.21 % Weighted average maturity in years 3.49 1.1 Unrealized gain/(loss) relating to interest rate swaps $ 4,251 $ (77) These agreements provided for the Company to receive payments determined by a specific index in exchange for making payments at a fixed rate. At December 31, 2022 and 2021, the unrealized loss or gain relating to interest rate swaps designated as hedging instruments of the variability of cash flows associated with wholesale funds are reported in other comprehensive income (loss). These amounts are subsequently reclassified into interest expense as a yield adjustment in the same period in which the related interest on the advance affects earnings. The Company measures cash flow hedging relationships for effectiveness on a monthly basis, and at December 31, 2022 and 2021, the hedges were highly effective and the amount of ineffectiveness reflected in earnings was de minimus. |
Financial Instruments with Off-
Financial Instruments with Off-Balance Sheet Risk | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments with Off-Balance Sheet Risk | |
Financial Instruments with Off-Balance Sheet Risk | Financial Instruments with Off-Balance Sheet Risk The Company is party to credit-related 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. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Company's exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. At December 31, 2022 and 2021, the following financial instruments were outstanding which contract amounts represent credit risk: 2022 2021 Commitments to grant loans $ 135,441 $ 90,591 Unused commitments to fund loans and lines of credit 235,617 183,145 Commercial and standby letters of credit 6,503 8,930 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. The commitments for equity lines of credit may expire without being drawn upon. Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management's credit evaluation of the customer. Unfunded commitments under commercial lines of credit, revolving credit lines and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. The amount of collateral obtained, if it is deemed necessary by the Company, is based on management's credit evaluation of the customer. Commercial and standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Substantially all letters of credit issued have expiration dates within one year. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Company generally holds collateral supporting those commitments, if deemed necessary. |
Minimum Regulatory Capital Requ
Minimum Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Minimum Regulatory Capital Requirements | Minimum Regulatory Capital Requirements Banks and bank holding companies are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, financial institutions must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. A financial institution’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. In August, 2018, the Federal Reserve updated the Small Bank Holding Company Policy Statement (the “Statement”), in compliance with the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 (“EGRRCPA”). The Statement, among other things, exempts bank holding companies that have assets below a specified asset threshold from the consolidated regulatory capital requirements. The rule expanded the exemption to bank holding companies with consolidated total assets of less than $3 billion. Prior to August 2018, the statement exempted bank holding companies with consolidated total assets of less than $1 billion. As a result of the rule, the Company qualifies as a small bank holding company and is no longer subject to regulatory capital requirements on a consolidated basis. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (“Basel III”) became effective for the Bank on January 1, 2015 with full compliance with all of the requirements being fully phased in January 1, 2019. As a part of the requirements, the Common Equity Tier 1 Capital ratio is calculated and utilized in the assessment of capital for all institutions. Under the Basel III rules, institutions must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. Prompt corrective action regulations, which also apply to the Bank, provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. Pursuant to the EGRRCPA, federal banking agencies have provided for an optional, simplified measure of capital adequacy, the community bank leverage ratio (“CBLR”) framework, for qualifying community bank organizations with less than $10 billion in consolidated total assets. Organizations that qualify could opt in to the CBLR framework beginning January 1, 2020 or any time thereafter. An institution that maintains a leverage ratio that exceeds the CBLR is considered to have met all generally applicable leverage and risk based capital requirements (including the Basel III rules), the capital ratio requirements for “well capitalized” status under the prompt corrective action regulations, and any other leverage or capital requirements to which it is subject. On January 1, 2020, the Company opted in to the CBLR framework. Effective September 30, 2022, we opted out of the CBLR framework. A banking organization that opts out of the CBLR framework can subsequently opt back into the CBLR framework if it meets the criteria proscribed. As of December 31, 2022 and 2021, the Bank meets all capital adequacy requirements to which it is subject and is considered well capitalized under the prompt corrective action regulations. The capital ratios for the Bank as of December 31, 2022 and 2021 are shown in the following table. Actual Minimum Capital Requirement Minimum to be Well Capitalized Under Prompt Corrective Action Amount Ratio Amount Ratio (1) Amount Ratio At December 31, 2022 Total risk-based capital $ 256,898 13.28 % $ 203,113 10.50 % $ 193,441 > 10.00 % Tier 1 risk-based capital 240,858 12.45 % 164,425 8.50 % 154,753 > 8.00 % Common equity tier 1 capital 240,858 12.45 % 135,409 7.00 % 125,737 > 6.50 % Leverage capital ratio 240,858 10.75 % 87,894 4.00 % 109,867 > 5.00 % At December 31, 2021 Total risk-based capital $ 222,871 13.54 % $ 177,069 10.50 % $ 168,638 > 10.00 % Tier 1 risk-based capital 214,442 12.72 % 143,342 8.50 % 134,910 > 8.00 % Common equity tier 1 capital 214,442 12.72 % 118,046 7.00 % 109,614 > 6.50 % Leverage capital ratio 214,442 10.55 % 81,712 4.00 % 102,140 > 5.00 % (1) Ratios include capital conservation buffer. Dividend Restrictions – The Company's principal source of funds for dividend payments is dividends received from the Bank. Banking regulations limit the amounts of dividends that may be paid without approval of regulatory agencies. As of December 31, 2022, $44.7 million of retained earnings is available to pay dividends. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions Officers, directors and their affiliates had borrowings of $37.9 million and $19.5 million at December 31, 2022 and 2021, respectively, with the Company. During the years ended December 31, 2022 and 2021, total principal additions were $19.9 million and $9.0 million, respectively, and total principal payments were $1.5 million and $3.8 million, respectively. Related party deposits amounted to $38.4 million and $31.7 million at December 31, 2022 and 2021, respectively. |
Stock-Based Compensation Plan
Stock-Based Compensation Plan | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock-Based Compensation Plan | Stock-Based Compensation Plan The Company's Amended and Restated 2008 Stock Plan (the "Plan"), which is shareholder-approved, was adopted to advance the interests of the Company by providing selected key employees of the Company, their affiliates, and directors with the opportunity to acquire shares of common stock. In May 2022, the shareholders approved an amendment to the Plan to extend the term of the plan and increase the number of shares authorized for issuance under the Plan by 200,000 shares. The maximum number of shares with respect to which awards may be made is 2,929,296 shares of common stock, subject to adjustment for certain corporate events. Option awards are generally granted with an exercise price equal to the market price of the Company's stock at the date of grant, generally vest annually over four years of continuous service and have ten years contractual terms. At December 31, 2022, 157,263 shares were available to grant under the Plan. No options were granted during 2022 and 2021. For the year ended December 31, 2022, 4,772 shares were withheld from issuance upon exercise of options in order to cover the cost of the exercise by the participant. For the year ended December 31, 2021, there were no shares withheld from issuance upon exercise of options in order to cover the cost of the exercise by the participant. A summary of option activity under the Plan as of December 31, 2022, and changes during the year then ended is presented below: Options Shares Weighted Weighted Aggregate Intrinsic Value (1) Outstanding at January 1, 2022 1,931,059 $ 6.65 2.46 — Granted — — Exercised (309,018) 5.74 Forfeited or expired (121) 6.85 Outstanding and Exercisable at December 31, 2022 1,621,920 $ 6.82 1.81 $ 13,681,905 ________________________ (1) The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2022. This amount changes based on changes in the market value of the Company's stock. As of December 31, 2022, all outstanding shares of the Plan are fully vested and amortized. Tax benefits recognized for qualified and non-qualified stock option exercises during 2022 and 2021 totaled $364 thousand and $163 thousand, respectively. A summary of the Company's restricted stock grant activity as of December 31, 2022 is shown below. Number of Weighted Average Nonvested at January 1, 2022 189,240 $ 14.34 Granted 155,399 14.95 Vested (58,401) 14.53 Forfeited (7,993) 14.59 Balance at December 31, 2022 278,245 $ 14.63 The compensation cost that has been charged to income for the plan was $1.2 million and $1.0 million for 2022 and 2021, respectively. As of December 31, 2022, there was $3.2 million of total unrecognized compensation cost related to nonvested restricted shares granted under the Plan. The cost is expected to be recognized over a weighted-average period of 36 months. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with Fair Value Measurements and Disclosures topic of FASB ASC, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company's various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 — Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 — Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model -based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 — Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available-for-sale : Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). Derivatives assets and liabilities: Cash flow hedges: The Company has loan interest rate swap derivatives and interest rate swap derivatives on certain time deposits and borrowings, which the latter are designated as cash flow hedges. These derivatives are recorded at fair value using published yield curve rates from a national valuation service. These observable rates and inputs are applied to a third party industry-wide valuation model, and therefore, the valuations fall into a Level 2 category. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021: Fair Value Measurements at December 31, 2022 Using Balance as of December 31, 2022 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 11,004 $ — $ 11,004 $ — Securities of state and local municipalities tax exempt 1,376 — 1,376 — Securities of state and local municipalities taxable 444 — 444 — Corporate bonds 19,058 — 19,058 — SBA pass-through securities 67 — 67 — Mortgage-backed securities 237,434 — 237,434 — Collateralized mortgage obligations 8,686 — 8,686 — Total Available-for-Sale Securities $ 278,069 $ — $ 278,069 $ — Derivative assets - interest rate swaps $ 4,260 $ — $ 4,260 $ — Derivative assets - cash flow hedge 4,251 — 4,251 — Liabilities Derivative liabilties - interest rate swaps $ 4,260 $ — $ 4,260 $ — Fair Value Measurements at December 31, 2021 Using Balance as of December 31, 2021 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 13,436 $ — $ 13,436 $ — Securities of state and local municipalities tax exempt 1,451 — 1,451 $ — Securities of state and local municipalities taxable 596 — 596 — Corporate bonds 14,151 — 14,151 — SBA pass-through securities 108 — 108 — Mortgage-backed securities 313,838 — 313,838 — Collateralized mortgage obligations 14,194 — 14,194 — Total Available-for-Sale Securities $ 357,774 $ — $ 357,774 $ — Derivative assets - interest rate swaps $ 6,052 $ — $ 6,052 $ — Liabilities Derivative liabilties - interest rate swaps $ 6,052 $ — $ 6,052 $ — Derivative liabilties - cash flow hedge 77 — 77 — Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower of cost or market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain financial assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired Loans: Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Fair value is measured based on the value of the collateral securing the loans. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company using observable market data (Level 2). However, if the collateral is a house or building in the process of construction, has the value derived by discounting comparable sales due to lack of similar properties, or is discounted by the Company due to marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business's financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income. The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at December 31, 2022 and December 31, 2021: Fair Value Measurements Using Balance as of December 31, 2022 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Impaired loans Commercial and industrial $ 1,233 $ — $ — $ 1,233 Total Impaired loans $ 1,233 $ — $ — $ 1,233 Fair Value Measurements Using Balance as of December 31, 2021 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Impaired loans Commercial and industrial $ 1,497 $ — $ — $ 1,497 Consumer residential 88 — — 88 Total Impaired loans $ 1,585 $ — $ — $ 1,585 The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2022 and 2021: Quantitative information about Level 3 Fair Value Measurements for December 31, 2022 Assets Fair Value Valuation Technique(s) Unobservable input Range (Avg.) Impaired loans Commercial and industrial $ 1,233 Discounted appraised value Marketability/Selling costs 8% - 8% 8.00 % Quantitative information about Level 3 Fair Value Measurements for December 31, 2021 Assets Fair Value Valuation Technique(s) Unobservable input Range (Avg.) Impaired loans Commercial and industrial $ 1,497 Discounted appraised value Marketability/Selling costs 8% - 8 % 8.00 % Consumer residential $ 88 Discounted appraised value Marketability/Selling costs 8% - 8% 8.00 % Total Impaired loans $ 1,585 Discounted appraised value Marketability/Selling costs 8% - 8% 8.00 % The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company's financial instruments as of December 31, 2022 and 2021. Fair values for December 31, 2022 and 2021 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Fair Value Measurements as of December 31, 2022 using Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Significant Unobservable Inputs Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 7,253 $ 7,253 $ — $ — Interest-bearing deposits at other institutions 74,300 74,300 — — Securities held-to-maturity 264 — 252 — Securities available-for-sale 278,069 — 278,069 — Restricted stock 15,612 — 15,612 — Loans, net 1,824,394 — — 1,756,984 Bank owned life insurance 55,371 — 55,371 — Accrued interest receivable 9,435 — 9,435 — Derivative assets - interest rate swaps 4,260 — 4,260 — Derivative assets - cash flow hedge 4,251 — 4,251 — Financial liabilities: Checking, savings and money market accounts $ 1,321,749 $ — $ 1,321,749 $ — Time deposits 508,413 — 510,754 — Fed Funds Purchased 30,000 — 30,000 — FHLB advances 235,000 — 235,000 — Subordinated notes 19,565 — 18,856 — Accrued interest payable 1,269 — 1,269 — Derivative liabilties - interest rate swaps 4,260 — 4,260 — Fair Value Measurements as of December 31, 2021 using Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Significant Unobservable Inputs Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,613 $ 24,613 $ — $ — Interest-bearing deposits at other institutions 216,345 216,345 — — Securities held-to-maturity 264 — 270 — Securities available-for-sale 357,774 — 357,774 — Restricted stock 6,372 — 6,372 — Loans, net 1,490,020 — — 1,493,185 Bank owned life insurance 39,171 — 39,171 — Accrued interest receivable 8,074 — 8,074 — Derivative assets - interest rate swaps 6,052 — 6,052 — Financial liabilities: Checking, savings and money market accounts $ 1,652,352 $ — $ 1,652,352 $ — Time deposits 231,417 — 232,837 — FHLB advances 25,000 — 25,000 — Subordinated notes 19,510 — 18,133 — Accrued interest payable 1,034 — 1,034 — Derivative liabilties - interest rate swaps 6,052 — 6,052 — Derivative liabilties - cash flow hedge 77 — 77 — |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share Basic earnings per share ("EPS") excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if contracts to issue common stock were exercised or converted into common stock, or resulted in the issuance of stock which then shared in the earnings of the Company. Weighted average shares – diluted includes only the potential dilution of stock options and unvested restricted stock units as of as of December 31, 2022 and 2021, respectively. The following shows the weighted average number of shares used in computing earnings per share and the effect of weighted average number of shares of dilutive potential common stock. Dilutive potential common stock has no effect on income available to common shareholders. There were no anti-dilutive shares for each of the years ended December 31, 2022 and 2021. The holders of restricted stock do not share in dividends and do not have voting rights during the vesting period. For the Years Ended December 31, 2022 2021 Net income $ 24,984 $ 21,933 Weighted average shares - basic 17,431 17,062 Effect of dilutive securities 1,053 1,165 Weighted average shares - diluted 18,484 18,227 Basic EPS $ 1.43 $ 1.29 Diluted EPS $ 1.35 $ 1.20 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information For the Years Ended December 31, 2022 2021 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 15,140 $ 9,361 Income taxes 6,070 4,735 Noncash investing and financing activities: Unrealized loss on securities available-for-sale (48,958) (5,630) Unrealized gain on interest rate swaps 4,328 677 Right-of-use assets obtained in the exchange for lease liabilities during the current period 522 207 Modification of right-of-use assets and lease liability 283 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of Other Comprehensive Income [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in accumulated other comprehensive income (loss) ("AOCI") for the years ended December 31, 2022 and 2021 are shown in the following table. The Company has two components of AOCI, which are available-for-sale securities and cash flow hedges, for each of the years ended December 31, 2022 and 2021. 2022 Available-for- Cash Flow Total Balance, beginning of period $ (1,983) $ (60) $ (2,043) Net unrealized (losses) gains during the period (37,943) 3,419 (34,524) Other comprehensive (loss) income, net of tax (37,943) 3,419 (34,524) Balance, end of period $ (39,926) $ 3,359 $ (36,567) 2021 Available-for- Cash Flow Total Balance, beginning of period $ 2,421 $ (595) $ 1,826 Net unrealized gains (losses) during the period (4,404) 535 (3,869) Other comprehensive income (loss), net of tax (4,404) 535 (3,869) Balance, end of period $ (1,983) $ (60) $ (2,043) There were no reclassifications from accumulated other comprehensive income (loss) related to realized gains or losses for both of the years ended December 31, 2022, and 2021, respectively. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition The Company recognizes revenue in accordance with ASU 2014-09 "Revenue from Contracts with Customers" (Topic 606) and all subsequent ASUs that modified Topic 606 in recognizing revenue. Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain noninterest income streams such as fees associated with mortgage servicing rights, gain on sale of securities, bank owned life insurance income, financial guarantees, derivatives, and certain credit card fees are also not in scope of the new guidance. Topic 606 is applicable to noninterest revenue streams such as trust and asset management income, deposit related fees, interchange fees, merchant income, and insurance commissions. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Substantially all of the Company's revenue is generated from contracts with customers. Noninterest revenue streams in-scope of Topic 606 are discussed below. Service Charges on Deposit Accounts Service charges on deposit accounts consist of account analysis fees (i.e., net fees earned on analyzed business and personal checking accounts), monthly service fees, check orders, and other deposit account related fees. The Company's performance obligation for account analysis fees and monthly service fees is generally satisfied, and the related revenue recognized, over the period in which the service is provided. Check orders and other deposit account related fees are largely transactional based, and therefore, the Company's performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for service charges on deposit accounts is primarily received immediately or in the following month through a direct charge to customers' accounts. Fees, Exchange and Other Service Charges Fees, exchange, and other service charges are primarily comprised of debit and credit card income, ATM fees, merchant services income, and other service charges and are included in other income on our consolidated statements of income. Debit and credit card income is primarily comprised of interchange fees earned whenever the Company's debit and credit cards are processed through card payment networks such as Visa. ATM fees are primarily generated when a Company cardholder uses a non-Company ATM or a non-Company cardholder uses a Company ATM. Merchant services income mainly represents fees charged to merchants to process their debit and credit card transactions, in addition to account management fees. Other service charges include revenue from processing wire transfers, bill pay service, cashier's checks, and other services. The Company's performance obligation for fees, exchange, and other service charges are largely satisfied, and related revenue recognized, when the services are rendered or upon completion. Payment is typically received immediately or in the following month. This income is reflected in other income on the Company's consolidated statements of income. Other Income Other noninterest income consists of loan swap fees, insurance commissions, and other miscellaneous revenue streams not meeting the criteria above. When the Company enters into an interest rate swap agreement, the Company may receive an additional one-time payment fee which is recognized as income when received. The Company receives monthly recurring commissions based on a percentage of premiums issued and revenue is recognized when received. Any residual miscellaneous fees are recognized as they occur, and therefore, the Company determined this consistent practice satisfies the obligation for performance. The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2022 and 2021: Years Ended December 31, 2022 2021 Noninterest Income In-scope of Topic 606 Service Charges on Deposit Accounts $ 954 $ 1,028 Fees, Exchange, and Other Service Charges 374 369 Other income 104 191 Noninterest Income (in-scope of Topic 606) 1,432 1,588 Noninterest Income (out-scope of Topic 606) 1,402 2,714 Total Noninterest Income $ 2,834 $ 4,302 Contract Balances A contract asset balance occurs when an entity performs a service for a customer before the customer pays consideration (resulting in a contract receivable) or before payment is due (resulting in a contract asset). A contract liability balance is an entity's obligation to transfer a service to a customer for which the entity has already received payment (or payment is due) from the customer. The Company's noninterest revenue streams are largely based on transactional activity. Consideration is often received immediately or shortly after the Company satisfies its performance obligation and revenue is recognized. The Company does not typically enter into long-term revenue contracts with customers, and therefore, does not experience significant contract balances. As of December 31, 2022 and 2021, the Company did not have any significant contract balances. Contract Acquisition Costs Under Topic 606, an entity is required to capitalize, and subsequently amortize into expense, certain incremental costs of obtaining a contract with a customer if these costs are expected to be recovered. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a contract with a customer that it would not have incurred if the contract had not been obtained (for example, sales commission). The Company utilizes the practical expedient which allows entities to immediately expense contract acquisition costs when the asset that would have resulted from capitalizing these costs would have been amortized in one year or less. The Company did not capitalize any contract acquisition cost during the years ended December 31, 2022 or 2021. Gain on sale of other real estate owned The Company records a gain/loss from the sale of other real estate owned when control of the property transfers to the buyer, which generally occurs at the time of an executed deed. When the Company finances the sale of the property to a buyer, the Company assesses whether the buyer is committed to perform the obligations under the contract and whether collectability of the transaction price is probable. In determining the gain (loss) on the sale, the Company adjusts the transaction price and the related gain or loss on sale if a significant financing component is present. The Company recorded a gain on sale of other real estate owned of $0 in 2022 and $236 thousand in 2021. Gain on sale of other real estate owned is reflected in the consolidated statements of income under Noninterest Expense and is not reflected in the table above. |
Parent Company Only Financial S
Parent Company Only Financial Statements | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Only Financial Statements | Parent Company Only Financial Statements The FVCBankcorp, Inc. (Parent Company only) condensed financial statements are as follows: PARENT COMPANY ONLY CONDENSED STATEMENTS OF CONDITION December 31, 2022 and 2021 Assets 2022 2021 Cash and cash equivalents $ 531 $ 1,882 Securities available-for-sale 991 1,005 Investment in subsidiary 214,382 223,043 Other assets 6,404 3,903 Total assets $ 222,308 $ 229,833 Liabilities and Stockholders' Equity Subordinated notes $ 19,565 $ 19,510 Other liabilities 361 527 Total liabilities $ 19,926 $ 20,037 Total stockholders' equity $ 202,382 $ 209,796 Total liabilities and stockholders' equity $ 222,308 $ 229,833 PARENT COMPANY ONLY CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2022 and 2021 2022 2021 Income: Interest on securities available-for-sale $ 67 $ 65 Income from minority membership interest 626 — Dividend income 730 20,820 Total income $ 1,423 $ 20,885 Expense: Interest on subordinated notes $ 1,031 $ 2,534 Salaries and employee benefits 1,192 1,021 Occupancy and equipment 80 83 Audit, legal and consulting fees 375 320 Other operating expenses 194 249 Total expense $ 2,872 $ 4,207 Net income (loss) before income tax benefit and equity in undistributed earnings of subsidiary $ (1,449) $ 16,678 Income tax benefit (580) (879) Equity in undistributed earnings of subsidiary 25,853 4,376 Net income $ 24,984 $ 21,933 PARENT COMPANY ONLY CONDENSED STATEMENTS OF CASH FLOWS For The Years Ended December 31, 2022 and 2021 2022 2021 Cash Flows From Operating Activities Net income $ 24,984 $ 21,933 Equity in undistributed earnings of subsidiary (25,853) (4,376) Amortization of subordinated debt issuance costs 55 488 Stock-based compensation expense 1,183 1,011 Change in other assets and liabilities (1,413) (2,598) Net cash (used in) provided by operating activities $ (1,044) $ 16,458 Cash Flows From Investing Activities Net cash used in investing activities $ — $ — Cash Flows From Financing Activities Repayment of subordinated notes, net $ (1,250) $ (23,813) Repurchase of shares of common stock (730) — Common stock issuance 1,673 1,221 Net cash used in financing activities $ (307) $ (22,592) Net decrease in cash and cash equivalents $ (1,351) $ (6,134) Cash and cash equivalents, beginning of year 1,882 8,016 Cash and cash equivalents, end of year $ 531 $ 1,882 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | (a) Principles of Consolidation The consolidated financial statements include the accounts of the Company. All material intercompany balances and transactions have been eliminated in consolidation. |
Use of Estimates | (b) Use of Estimates In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates, judgments, and assumptions that affect the reported amounts of assets and liabilities, and disclosures of contingent assets and contingent liabilities, at of the date of the consolidated financial statements and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to accounting for impairment testing of goodwill, the allowance for loan losses, the valuation of deferred tax assets, and other-than-temporary impairment. |
Accounting for Business Combinations | (c) Accounting for Business CombinationsBusiness combinations are accounted for under the acquisition method. The acquisition method requires that the assets acquired and liabilities assumed be recorded, based on their estimated fair values at the date of acquisition. The excess of the cost of an acquired entity over the net of the amounts assigned to assets acquired and liabilities assumed, including identifiable intangibles, is recorded as goodwill. |
Cash and Cash Equivalents | (d) Cash and Cash Equivalents For purposes of the statements of cash flows, cash and cash equivalents include cash on hand, amounts due from banks and federal funds sold. Generally, federal funds are purchased and sold for one day periods. |
Investment Securities | (e) Investment Securities Debt securities are classified as held-to-maturity and carried at amortized cost when management has the positive intent and ability to hold them to maturity. Debt securities are classified as available-for-sale when they might be sold before maturity. Securities available-for-sale are carried at fair value, with unrealized holding gains and losses reported in other comprehensive (loss) income, net of tax. Equity securities are carried at fair value, with changes in fair value reported in net income. Equity securities without readily determinable fair values are carried at cost, minus impairment, if any, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment. Gains and losses on the sale of securities are determined using the specific identification method. The Company regularly evaluates its securities whose values have declined below their amortized cost to assess whether the decline in fair value is other-than-temporary. The Company considers various factors in determining whether a decline in fair value is other-than-temporary including the issuer's financial condition and/or future prospects, the effects of changes in interest rates or credit spreads, the expected recovery period and other quantitative and qualitative information. The valuation of securities for impairment is a process subject to estimation, judgment and uncertainty and is intended to determine whether declines in the fair value of investments should be recognized in current period earnings. The risks and uncertainties include changes in general economic conditions and future changes in assessments of the aforementioned factors. It is expected that such factors will change in the future, which may result in future other-than-temporary impairments. For impairments of debt securities that are deemed to be other-than-temporary, the credit portion of an other-than-temporary impairment loss is recognized in earnings and the non-credit portion is recognized in accumulated other comprehensive (loss) income in those situations where the Company does not intend to sell the security and it is more likely than not that the Company will not be required to sell the security prior to recovery. Interest income and dividends on securities are recognized in interest income on an accrual basis. Premiums and discounts are recognized in interest income using the effective interest method. Prepayments of the mortgages securing mortgage-backed securities may affect the yield to maturity. The Company uses actual principal prepayment experience and estimates of future principal prepayments in calculating the yield necessary to apply the effective interest method. |
Loans and Allowance for Loan Losses | (f) Loans and Allowance for Loan Losses Loans receivable that management has the intent and ability to hold for the foreseeable future or until loan maturity or pay-off are reported at their outstanding principal balance adjusted for any charge-offs, and net of the allowance for loan losses and deferred fees and costs. Loan origination fees and certain direct origination costs are deferred and amortized as an adjustment of the yield using the payment terms required by the loan contract. During 2020, as a result of the Company's acquisition of Colombo Bank ("Colombo"), the loan portfolio was segregated between loans initially accounted for under the amortized cost method (referred to as "originated" loans) and loans acquired (referred to as "acquired" loans). The loans segregated to the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either Accounting Standards Codification ("ASC") Topic 310-30 or ASC Topic 310-20. Purchased credit-impaired ("PCI") loans, which are the non-performing loans acquired in the Company's acquisition of Colombo, are loans acquired at a discount (that is due, in part, to credit quality). These loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. The Company accounts for interest income on all loans acquired at a discount (that is due, in part, to credit quality) based on the acquired loans' expected cash flows. The acquired loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the cash flows expected at acquisition and the investment in the loans, or the "accretable yield," is recognized as interest income utilizing the level-yield method over the life of each pool. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment to any previously recognized allowance for loan loss for that pool of loans and then through an increase in the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). The Company periodically evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected for PCI loans. These evaluations, performed quarterly, require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractual required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. On an aggregate basis, if the acquired pools of PCI loans perform better than originally expected, the Company would expect to receive more future cash flows than originally modeled at the acquisition date. For the pools with better than expected cash flows, the forecasted increase would be recorded as an additional accretable yield that is recognized as a prospective increase to the Company's interest income on loans. Loans are generally placed into nonaccrual status when they are past-due 90 days as to either principal or interest or when, in the opinion of management, the collection of principal and/or interest is in doubt. A loan remains in nonaccrual status until the loan is current as to payment of both principal and interest or past-due less than 90 days and the borrower demonstrates the ability to pay and remain current. Loans are charged-off when a loan or a portion thereof is considered uncollectible. When cash payments are received, they are applied to principal first, then to accrued interest. It is the Company's policy not to record interest income on nonaccrual loans until principal has become current. In certain instances, accruing loans that are past due 90 days or more as to principal or interest may not go on nonaccrual status if the Company determines that the loans are well secured and are in the process of collection. Nonperforming assets include nonaccrual loans, loans past-due 90 days or more and other real estate owned ("OREO"). The allowance for loan losses is increased or decreased by provisions for or reversals of loan losses, increased by recoveries of previously charged-off loans, and decreased by loan charge-offs. The Company maintains the allowance for loan losses at a level that represents management's best estimate of probable and inherent losses in the loan portfolio. Both the amount of the provision expense and the level of the allowance for loan losses are impacted by many factors, including general and industry-specific economic conditions, actual and expected loan losses, historical trends and specific conditions of the individual borrowers. Unusual and infrequently occurring events, such as weather-related disasters or disease epidemics or pandemics, may impact management's assessment of possible loan losses. As a part of the analysis, the Company uses comparative peer group data and qualitative factors such as levels of and trends in delinquencies, nonaccrual loans, charged-off loans, changes in volume and terms of loans, effects of changes in lending policy, experience and ability and depth of management, national and local economic trends and conditions and concentrations of credit, competition, and loan review results to support estimates. For purposes of monitoring the performance of the loan portfolio and estimating the allowance for loan losses, the Company's loans receivable portfolio is segmented as follows: commercial real estate, commercial and industrial, commercial construction, consumer residential, and consumer nonresidential. Commercial Real Estate Loans . Commercial real estate loans are secured by both owner occupied and investor owned commercial properties, including multi-family residential real estate. Collateral for this loan type includes various types of commercial real estate, including office, retail, warehouse, industrial and other non-residential types of properties. These loans typically involve larger loan balances concentrated with single borrowers or groups of related borrowers. Additionally, the repayment of loans secured by income-producing properties is typically dependent upon the successful operation of a business or real estate project and thus may be subject to adverse conditions in the commercial real estate market or in the general economy. The Company generally requires personal guarantees or endorsements with respect to these loans and loan-to-value ratios for real estate-commercial loans generally do not exceed 80%. Commercial and Industrial Loans . The Company makes commercial loans to qualified businesses within its market area. The commercial lending portfolio consists primarily of commercial and industrial loans for a variety of business purposes, including working capital and the financing of accounts receivable, property, plant and equipment. The Company has a government contract lending group which provides secured lending to government contracting firms and businesses based primarily on receivables from the federal government. Commercial and industrial loans generally have a higher degree of risk than other certain types of loans. Commercial loans typically are made on the basis of the borrower's ability to repay the loan from the cash flow from its business and are secured by business assets, such as commercial real estate, accounts receivable, equipment and inventory, the values of which may fluctuate over time and generally cannot be appraised with as much precision as residential real estate. As a result, the availability of funds for the repayment of commercial loans may be substantially dependent upon the commercial success of the business itself. To manage these risks, the Company's policy is to secure commercial loans originated with both the assets of the business, which are subject to the risks described above, and other additional collateral and guarantees that may be available. Commercial Construction Loans . The Company's commercial construction loan portfolio consists of acquisition, development, and construction of commercial real estate, including multi-family properties. Our typical commercial construction loan involves property that will ultimately be leased to a non-owner occupant. Construction lending entails significant additional risks as they often involve larger loan balances concentrated with single borrowers or groups of related borrowers. Construction loans also involve additional risks since funds are advanced while the property is under construction, which property has uncertain value prior to the completion of construction. Thus, it is more difficult to accurately evaluate the total loan funds required to complete a project and related loan-to-value ratios. To reduce the risks associated with construction lending, the Company generally limits loan-to-value ratios to 80% of when-completed appraised values for owner-occupied residential or commercial properties and for investor-owned residential or commercial properties. Construction loan agreements may include provisions which allow for the payment of contractual interest from an interest reserve. Amounts drawn from an interest reserve increase the amount of the outstanding balance of the construction loan. This is an industry standard practice. Consumer Residential . This portfolio consists primarily of home equity lines of credit ("HELOCs") that we originate in our market areas. Our HELOCs generally have a maximum loan to value of up to 85%, however, actual loan to values are typically lower than the maximum. We have also purchased portfolios of 1-4 family residential first mortgage loans on properties located in our market area for yield and diversification. Consumer Nonresidential . The Company's consumer nonresidential loans consist primarily of installment loans made to individuals for personal, family and household purposes. In addition, we have purchased pools of unsecured consumer loans and student loans from a third party for yield and diversification. Consumer loans may entail greater risk than certain other types of loans, particularly in the case of consumer loans that are unsecured or secured by rapidly depreciable assets, such as automobiles. The Company's policy for consumer loans is to accept moderate risk while minimizing losses, primarily through a careful credit and financial analysis of the borrower. In evaluating consumer loans, the Company requires its lending officers to review the borrower's collateral and stability of income, past credit history, amount of debt currently outstanding and the impact of these factors on the ability of the borrower to repay the loan in a timely manner. The Company's allowance for loan losses is based first on a segmentation of its loan portfolio by general loan type, or portfolio segments. For originated loans, certain portfolio segments are further disaggregated and evaluated collectively for impairment based on loan segments, which are largely based on the type of collateral underlying each loan. For purposes of this analysis, the Company categorizes loans into one of five categories: commercial and industrial, commercial real estate, commercial construction, consumer residential, and consumer nonresidential loans. Typically, financial institutions use their historical loss experience and trends in losses for each loan category which are then adjusted for portfolio trends and economic and environmental factors in determining their allowance for loan losses. Since the Bank's inception in 2007, the Bank has experienced minimal loss history within its loan portfolio. Because of this, the allowance model uses the average loss rates of similar institutions (a custom peer group) as a baseline which is then adjusted based on the Company's particular qualitative loan portfolio characteristics and environmental factors. The indicated loss factors resulting from this analysis are applied for each of the five categories of loans. The Company also maintains an allowance for loan losses for acquired loans when: (i) for loans accounted for under ASC 310-30, there is deterioration in credit quality subsequent to acquisition, and (ii) for loans accounted for under ASC 310-20, the inherent losses in the loans exceed the remaining discount recorded at the time of acquisition. The allowance for loan losses consists of specific and general components. The specific component relates to loans that are determined to be impaired and, therefore, individually evaluated for impairment. The Company determines and recognizes impairment of certain loans when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the loan agreement. A loan is not considered impaired during a period of delay in payment if the Company expects to collect all amounts due, including past-due interest. The Company individually assigns loss factors to all loans that have been identified as having loss attributes, as indicated by deterioration in the financial condition of the borrower or a decline in underlying collateral value if the loan is collateral dependent. The Company evaluates the impairment of certain loans on a loan by loan basis for those loans that are adversely risk rated. Measurement of impairment is based on the expected future cash flows of an impaired loan, which are discounted at the loan's effective interest rate, or measured on an observable market value, if one exists, or the fair value of the collateral underlying the loan, discounted to consider estimated costs to sell the collateral for collateral-dependent loans. If the net collateral value is less than the loan balance (including accrued interest and any unamortized premium or discount associated with the loan) an impairment is recognized and a specific reserve is established for the impaired loan. Loans classified as loss loans are fully reserved or charged-off. In addition, various regulatory agencies, as part of their examination process, periodically review the Company's allowance for loan losses. These agencies may require the Company to recognize additions to the allowance based on their risk evaluation and credit judgment. Management believes that the allowance for loan losses at December 31, 2022 and 2021 is a reasonable estimate of probable and inherent losses in the loan portfolio at those dates. Loans considered to be troubled debt restructuring ("TDRs") are loans that have their terms restructured (e.g., interest rates, loan maturity date, payment and amortization period, etc.) in circumstances that provide payment relief to a borrower experiencing financial difficulty. All restructured loans are considered impaired loans and may either be in accruing status or nonaccruing status. Nonaccruing restructured loans may return to accruing status provided doubt has been removed concerning the collectability of principal and interest as evidenced by a sufficient period of payment performance in accordance with the restructured terms. Loans may be removed from the restructured category in the year subsequent to the restructuring if their revised loan terms are considered to be consistent with terms that can be obtained in the credit market for loans with comparable risk and if they meet certain performance criteria. |
Premises and Equipment | (g) Premises, Equipment, and Leases Land is carried at cost. Premises, furniture, equipment, and leasehold improvements are carried at cost less accumulated depreciation and amortization. Depreciation of premises, furniture and equipment is computed using the straight-line method over estimated useful lives from three one |
Leases | The Company follows ASU 2016-02 "Leases (Topic 842)" and all subsequent ASUs that modified Topic 842. Contracts are evaluated to determine whether they are or contain a lease in accordance with Topic 842. Lease liabilities represent the Company's obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company's incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company's right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease payments for short-term leases are recognized as lease expense on a straight-line basis over the lease term, or for variable lease payments, in the period in which the obligation was incurred. Payments for leases with terms longer than twelve months are included in the determination of the lease liability. Payments may be fixed for the term of the lease or variable. If the lease agreement provides a known escalator, such as a specified percentage increase per year or a stated increase at a specified time, the variable payment is included in the cash flows used to determine the lease liability. If the variable payment is based upon an unknown escalator, such as the consumer price index at a future date, the increase is not included in the cash flows used to determine the lease liability. The Company's leases provide known escalators that are included in the determination of the lease liability, with the exception of three lease agreements. The Company's leases offer the option to extend the lease term. For each of the leases, the Company is reasonably certain it will exercise the options and has included the additional time and lease payments in the calculation of the lease liability. None of the Company's leases provide for residual value guarantees and none provide restrictions or covenants that would impact dividends or require incurring additional financial obligations. |
Goodwill and Intangible Assets | (h) Goodwill and Intangible Assets Goodwill, which represents the excess of purchase price over fair value of net assets acquired, is not amortized but is evaluated at least annually for impairment by comparing its fair value with its carrying amount. Impairment is indicated when the carrying amount of a reporting unit exceeds its estimated fair value. |
Other Real Estate Owned | (i) Other Real Estate OwnedAssets acquired through, or in lieu of, loan foreclosure are held for sale. At the time of acquisition, these properties are recorded at fair value less estimated selling costs, with any write down charged to the allowance for loan losses and any gain on foreclosure recorded in net income, establishing a new cost basis. Subsequent to foreclosure, valuations of the assets are periodically performed by management, and these assets are subsequently accounted for at lower of cost or fair value less estimated selling costs. Adjustments are made for subsequent decline in the fair value of the assets less selling costs. Revenue and expenses from operations and valuation changes are charged to operating income in the year of the transaction. |
Bank Owned Life Insurance | (j) Bank Owned Life Insurance The Company has purchased life insurance policies on certain key employees. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance date, which is the cash surrender value. The increase in the cash surrender value over time is recorded as other non-interest income. The Company monitors the financial strength and condition of the counterparties. |
Transfers of Financial Assets | (k) 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 surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the |
Income Taxes | (l) Income Taxes Deferred taxes are provided on a liability method whereby deferred tax assets and liabilities are recognized for deductible temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax basis. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management's judgment. The Company had no such liability recorded as of December 31, 2022 and 2021. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. |
Comprehensive Income (Loss) | (m) Comprehensive Income (Loss)Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains (losses) on securities available-for-sale and interest rate swaps for 2022 and 2021, which are also recognized as separate components of equity. |
Fair Value of Financial Instruments | (n) Fair Value of Financial InstrumentsFair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Equity-based Compensation | (o) Equity-based Compensation The Company recognizes in the income statement the grant date fair value of stock options and other equity-based compensation. The Company classifies stock awards as either an equity award or a liability award. Equity classified awards are valued as of the grant date using either an observable market price or a valuation methodology. Liability classified awards are valued at fair value at each reporting date. For the years presented, all of the Company's stock options are classified as equity awards. The fair value related to forfeitures of stock options and other equity-based compensation are recorded to the income statement as they occur, reducing equity-based compensation expense in that period. During 2018, the Company began granting restricted stock units which are granted at the fair market value of the Company's common stock on the grant date. Most restricted stock units vest in one-quarter increments on the anniversary date of the grant. The Company did not grant stock options in the years ended December 31, 2022 and 2021. |
401(k) Plan | (p) 401(k) PlanEmployee 401(k) plan expense is the amount of matching contributions paid by the Company. |
Earnings Per Share | (q) Earnings Per Share Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Common stock equivalents that may be issued by the Company consist primarily of outstanding stock options and restricted stock units, and the dilutive potential common shares resulting from outstanding stock options and restricted stock units are determined using the treasury method. The effects of anti-dilutive common stock equivalents are excluded from the calculation of diluted earnings per share. |
Reclassifications | (r) Reclassifications Certain prior year amounts have been reclassified to conform to the current year's method of presentation. None of these reclassifications were significant. |
Recent Accounting Pronouncements and Recently Adopted Accounting Developments | (s) Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board ("FASB") issued ASU 2016-13, "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" that introduced the current expected credit losses ("CECL") model. The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied previously will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The Company adopted ASU 2016-13 as of January 1, 2023 in accordance with the required implementation date and recorded the impact of adoption to retained earnings, net of deferred income taxes, as required by the standard. The adjustment recorded at adoption was not significant to the overall allowance for credit losses or shareholders' equity as compared to December 31, 2022 and consisted of adjustments to the allowance for credit losses on loans as well as an adjustment to the Company's reserve for unfunded commitments. Subsequent to adoption, the Company will record adjustments to its allowances for credit losses and reserves for unfunded commitments through the provision for credit losses in the consolidated statements of income. The Company is utilizing a third-party model to tabulate its estimate of current expected credit losses, using a discounted cash flow ("DCF") methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics which included loan type. The Company primarily utilizes national unemployment for its reasonable and supportable forecasting of current expected credit losses. To further adjust the allowance for credit losses for expected losses not already within the quantitative component of the calculation, the Company may consider qualitative factors as prescribed in ASC 326. The Company's CECL implementation process was overseen by the Allowance for Credit Losses Committee and included an assessment of data availability and gap analysis, data collection, consideration and analysis of multiple loss estimation methodologies, and assessment of relevant qualitative factors and correlation analysis of multiple potential loss drivers and their impact on the Company's historical loss experience. In March 2020, the FASB issued ASU 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate ("LIBOR") or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU 2021-01 "Reference Rate Reform (Topic 848): Scope." This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. We have certain loans, interest rate swap agreements, investment securities, and debt obligations with interest rates indexed to LIBOR. The administrator of LIBOR announced that the most commonly used U.S. dollar LIBOR settings would cease to be published or cease to be representative after June 30, 2023. Central banks and regulators around the world have commissioned working groups to find suitable replacements for IBOR and other benchmark rates and to implement financial benchmark reforms more generally. There continues to be uncertainty regarding the use of alternative reference rates ("ARRs"), which may cause disruptions in a variety of markets, as well as adversely impact our business, operations and financial results. The Adjustable Interest Rate (LIBOR) Act, enacted in March 2022, provides a statutory framework to replace LIBOR with a benchmark rate based on Secured Overnight Funding Rate ("SOFR") for contracts governed by U.S. law that have no or ineffective fallbacks. Although governmental authorities have endeavored to facilitate an orderly discontinuation of LIBOR, no assurance can be provided that this aim will be achieved or that the use, level, and volatility of LIBOR or other interest rates, or the value of LIBOR-based securities will not be adversely affected. To facilitate an orderly transition from interbank offered rates and other benchmark rates to alternative reference rates ARRs, the Company has established an enterprise-wide initiative led by senior management. The objective of this initiative is to identify, assess and monitor risks associated with the expected discontinuation or unavailability of benchmarks, including LIBOR, achieve operational readiness and engage impacted clients in connection with the transition to ARRs. The Company is assessing ASU 2020-04 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. In August 2020, the FASB issued ASU 2020-06 "Debt - Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging - Contracts in Entity's Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity's Own Equity." The ASU simplifies accounting for convertible instruments by removing major separation models required under current GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, including the Company, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In October 2021, the FASB issued ASU 2021-08, "Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers." The ASU requires entities to apply Topic 606 to recognize and measure contract assets and contract liabilities in a business combination. The amendments improve comparability after the business combination by providing consistent recognition and measurement guidance for revenue contracts with customers acquired in a business combination and revenue contracts with customers not acquired in a business combination. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2022. Entities should apply the amendments prospectively and early adoption is permitted. The Company does not expect the adoption of ASU 2021-08 to have a material impact on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-02, "Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures." ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for TDRs by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted ASU 2016-13. the effective dates for ASU 2022-02 are the same as the effective dates in ASU 2016-13. Early adoption is permitted if an entity has adopted ASU 2016-13. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company does not expect the adoption of ASU 2022-02 to have a material impact on its consolidated financial statements. In March 2022, the FASB issued ASU 2022-01, "Derivatives and Hedging (Topic 815), Fair Value Hedging-Portfolio Layer Method." ASU 2022-01 clarifies the guidance in ASC 815 on fair value hedge accounting of interest rate risk for portfolios of financial assets and is intended to better align hedge accounting with an organization's risk management strategies. In 2017, FASB issued ASU 2017-12 to better align the economic results of risk management activities with hedge accounting. One of the major provisions of that standard was the addition of the last-of-layer hedging method. For a closed portfolio of fixed-rate prepayable financial assets or one of more beneficial interests secured by a portfolio of prepayable financial instruments, such as mortgages or mortgage-backed securities, the last-of-layer method allows an entity to hedge its exposure to fair value changes due to changes in interest rates for a portion of the portfolio that is not expected to be affected by prepayments, defaults, and other events affecting the timing and amount of cash flows. ASU 2022-01 renames that method the portfolio layer method. For public business entities, ASC 2022-01 is effective for fiscal years beginning after December 15, 2022, and interim periods within those fiscal years. The Company does not expect the adoption of ASU 2022-01 to have a material impact on its consolidated financial statements. In June 2022, the FASB issued ASU 2022-03, "Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions". ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not conisdered in measuring fiar value. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not expect the adoption of ASU 2022-03 to have a material impact on its consolidated financial statements. In December 2022, the FASB issued ASU 2022-06, "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848". ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the LIBOR would would cease being published. In 2021, the administrator of LIBOR delayed the intended cessation date of certain tenors of LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company's transition away from LIBOR for its loan and other financial instruments. (t) Recently Adopted Accounting Developments |
Investment Securities and Oth_2
Investment Securities and Other Investments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and fair values of securities held-to-maturity and securities available-for-sale | Amortized cost and fair values of securities held-to-maturity and securities available-for-sale as of December 31, 2022 and 2021, are as follows: December 31, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Held-to-maturity Securities of state and local municipalities tax exempt $ 264 $ — $ (12) $ 252 Total Held-to-maturity Securities $ 264 $ — $ (12) $ 252 Available-for-sale Securities of U.S. government and federal agencies $ 13,559 $ — $ (2,555) $ 11,004 Securities of state and local municipalities tax exempt 1,385 — (9) 1,376 Securities of state and local municipalities taxable 506 — (62) 444 Corporate bonds 21,212 — (2,154) 19,058 SBA pass-through securities 74 — (7) 67 Mortgage-backed securities 282,858 — (45,424) 237,434 Collateralized mortgage obligations 9,998 — (1,312) 8,686 Total Available-for-sale Securities $ 329,592 $ — $ (51,523) $ 278,069 December 31, 2021 Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Held-to-maturity Securities of state and local municipalities tax exempt $ 264 $ 6 $ — $ 270 Total Held-to-maturity Securities $ 264 $ 6 $ — $ 270 Available-for-sale Securities of U.S. government and federal agencies $ 13,557 $ — $ (283) $ 13,274 Securities of state and local municipalities tax exempt 1,393 58 — 1,451 Securities of state and local municipalities taxable 607 — (11) 596 Corporate bonds 13,970 259 (78) 14,151 SBA pass-through securities 107 1 — 108 Mortgage-backed securities 316,313 1,352 (3,827) 313,838 Collateralized mortgage obligations 14,230 113 (149) 14,194 Total Available-for-sale Securities $ 360,177 $ 1,783 $ (4,348) $ 357,612 |
Schedule of available-for-sale securities that have been in a continuous unrealized loss position | Securities that have been in a continuous unrealized loss position are as follows: Less Than 12 Months 12 Months or Longer Total At December 31, 2022 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses Securities of U.S. government and federal agencies $ — 0 $ — $ 11,004 $ (2,555) $ 11,004 $ (2,555) Securities of state and local municipalities tax exempt 1,628 (21) — — 1,628 (21) Securities of state and local municipalities taxable — — 444 (62) 444 (62) Corporate bonds 12,344 (1,119) 5,964 (1,035) 18,308 (2,154) SBA pass-through securities — — 67 (7) 67 (7) Mortgage-backed securities 26,486 (1,831) 210,948 (43,593) 237,434 (45,424) Collateralized mortgage obligations 2,601 (238) 6,085 (1,074) 8,686 (1,312) Total $ 43,059 $ (3,209) $ 234,512 $ (48,326) $ 277,571 $ (51,535) Less Than 12 Months 12 Months or Longer Total At December 31, 2021 Fair Unrealized Fair Unrealized Fair Unrealized Securities of U.S. government and federal agencies $ 13,275 $ (283) $ — $ — $ 13,275 $ (283) Securities of state and local municipalities taxable 595 (11) — — 595 (11) Corporate bonds 3,922 (78) — — 3,922 (78) Mortgage-backed securities 216,278 (3,175) 19,225 (652) 235,503 (3,827) Collateralized mortgage obligations 3,362 (82) 1,814 (67) 5,176 (149) Total $ 237,432 $ (3,629) $ 21,039 $ (719) $ 258,471 $ (4,348) |
Schedule of amortized cost and fair value of held-to-maturity securities and available-for-sale securities by contractual maturity | The amortized cost and fair value of securities held-to-maturity and available-for-sale as of December 31, 2022, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. 2022 Held-to-maturity Available-for-sale Amortized Fair Amortized Fair After 1 year through 5 years $ 264 $ 252 $ 4,935 $ 4,776 After 5 years through 10 years — — 48,978 43,396 After 10 years — — 275,679 229,897 Total $ 264 $ 252 $ 329,592 $ 278,069 |
Schedule of other investments | The Company has other investments in the form of restricted stock totaling $15.6 million and $6.4 million at December 31, 2022 and 2021, respectively. The following table discloses the types of investments included in other investments: 2022 2021 Federal Reserve stock $ 4,378 $ 4,378 FHLB stock 11,087 1,847 Community Bankers' Bank stock 122 122 Atlantic Bankers' Bank stock 25 25 Total $ 15,612 $ 6,372 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of loan balances | A summary of loan balances by type follows: 2022 2021 Originated Acquired Total Originated Acquired Total Commercial real estate $ 1,085,513 $ 14,748 $ 1,100,261 $ 887,310 $ 18,802 $ 906,112 Commercial and industrial 242,307 2,913 245,220 199,040 3,710 202,750 Commercial construction 147,436 503 147,939 186,572 1,043 187,615 Consumer real estate 322,579 17,012 339,591 176,682 23,922 200,604 Consumer nonresidential 7,661 24 7,685 10,277 27 10,304 $ 1,805,496 $ 35,200 $ 1,840,696 $ 1,459,881 $ 47,504 $ 1,507,385 Less: Allowance for loan losses 16,040 — 16,040 13,829 — 13,829 Unearned income and (unamortized premiums), net 262 — 262 3,536 — 3,536 Loans, net $ 1,789,194 $ 35,200 $ 1,824,394 $ 1,442,516 $ 47,504 $ 1,490,020 |
Schedule of acquired loans | The loans segregated to the acquired loan portfolio were initially measured at fair value and subsequently accounted for under either ASC Topic 310-30 or ASC 310-20. The outstanding principal balance and related carrying amount of acquired loans included in the consolidated statement of condition as of December 31, 2022 and 2021 are as follows: 2022 Purchased credit impaired acquired loans evaluated individually for future credit losses Outstanding principal balance $ 24 Carrying amount — Other acquired loans Outstanding principal balance 35,604 Carrying amount 35,200 Total acquired loans Outstanding principal balance 35,628 Carrying amount 35,200 2021 Purchased credit impaired acquired loans evaluated individually for future credit losses Outstanding principal balance $ 207 Carrying amount — Other acquired loans Outstanding principal balance 48,049 Carrying amount 47,504 Total acquired loans Outstanding principal balance 48,256 Carrying amount 47,504 |
Schedule of accretable yield on purchased credit impaired loans | The following table presents changes for the year ended December 31, 2022 and 2021 in the accretable yield on purchased credit impaired loans for which the Company applies ASC 310-30. Balance at January 1, 2022 $ 3 Accretion (197) Reclassification of nonaccretable difference due to improvement in expected cash flows 33 Other changes, net 161 Balance at December 31, 2022 $ — Balance at January 1, 2021 $ 216 Accretion (217) Reclassification of nonaccretable difference due to improvement in expected cash flows 54 Other changes, net (50) Balance at December 31, 2021 $ 3 |
Schedule of allowance for loan losses | An analysis of the allowance for loan losses for the years ended December 31, 2022 and 2021 follows: Commercial Commercial and Commercial Consumer Real Consumer Total 2022 Allowance for loan losses: Beginning Balance $ 8,995 $ 1,827 $ 2,009 $ 781 $ 217 $ 13,829 Charge-offs — (396) — — (101) (497) Recoveries — — — 1 78 79 Provision (reversal) 1,782 1,192 (510) 262 (97) 2,629 Ending Balance $ 10,777 $ 2,623 $ 1,499 $ 1,044 $ 97 $ 16,040 Commercial Commercial and Commercial Consumer Real Consumer Total 2021 Allowance for loan losses: Beginning Balance $ 9,291 $ 2,546 $ 1,960 $ 690 $ 471 $ 14,958 Charge-offs (477) (117) — — (255) (849) Recoveries 24 — — 35 161 220 Provision (reversal) 157 (602) 49 56 (160) (500) Ending Balance $ 8,995 $ 1,827 $ 2,009 $ 781 $ 217 $ 13,829 |
Schedule of recorded investment in loans and impairment by portfolio segment | The following table presents the recorded investment in loans and impairment method as of December 31, 2022 and 2021, by portfolio segment: Allowance for Loan Losses Commercial Commercial Commercial Consumer Consumer Total 2022 Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ — $ 86 $ — $ — $ — $ 86 Purchased credit impaired — — — — — — Collectively evaluated for impairment 10,777 2,537 1,499 1,044 97 15,954 $ 10,777 $ 2,623 $ 1,499 $ 1,044 $ 97 $ 16,040 Loans Receivable Commercial Commercial Commercial Consumer Consumer Total 2022 Financing receivables: Ending Balance Individually evaluated for impairment $ 1,703 $ 1,319 $ — $ 1,041 $ — $ 4,063 Purchased credit impaired loans — — — — — — Collectively evaluated for impairment 1,098,558 243,901 147,939 338,550 7,685 1,836,633 $ 1,100,261 $ 245,220 $ 147,939 $ 339,591 $ 7,685 $ 1,840,696 Allowance for Loan Losses Commercial Commercial Commercial Consumer Consumer Total 2021 Allowance for loan losses: Ending Balance: Individually evaluated for impairment $ — $ 181 $ — $ 5 $ — $ 186 Purchased credit impaired loans — — — — — — Collectively evaluated for impairment 8,995 1,646 2,009 776 217 13,643 $ 8,995 $ 1,827 $ 2,009 $ 781 $ 217 $ 13,829 Loans Receivable Commercial Commercial Commercial Consumer Consumer Total 2021 Financing receivables: Ending Balance Individually evaluated for impairment $ 11,915 $ 5,214 $ 1,557 $ 343 $ — $ 19,029 Purchased credit impaired loans — — — — — — Collectively evaluated for impairment 894,197 197,536 186,058 200,261 10,304 1,488,356 $ 906,112 $ 202,750 $ 187,615 $ 200,604 $ 10,304 $ 1,507,385 |
Schedule of Impaired loans | Impaired loans by class excluding purchased credit impaired, as of December 31, 2022 and 2021 are summarized as follows: Impaired Loans – Originated Loan Portfolio Recorded Unpaid Related Average Interest 2022 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial 1,319 1,329 86 1,604 107 Commercial construction — — — — — Consumer real estate — — — — — Consumer nonresidential — — — — — $ 1,319 $ 1,329 $ 86 $ 1,604 $ 107 2022 With no related allowance: Commercial real estate $ 1,703 $ 1,703 $ — $ 1,704 $ 135 Commercial and industrial — — — — — Commercial construction — — — — — Consumer real estate 1,041 1,044 — 1,048 34 Consumer nonresidential — — — — — $ 2,744 $ 2,747 $ — $ 2,752 $ 169 Impaired Loans – Originated Loan Portfolio Recorded Unpaid Related Average Interest 2021 With an allowance recorded: Commercial real estate $ — $ — $ — $ — $ — Commercial and industrial 1,678 1,688 181 1,711 95 Commercial construction — — — — — Consumer real estate 93 93 5 95 7 Consumer nonresidential — — — — — $ 1,771 $ 1,781 $ 186 $ 1,806 $ 102 2021 With no related allowance: Commercial real estate $ 11,915 $ 11,915 $ — $ 11,947 $ 581 Commercial and industrial 3,536 3,536 — 3,660 238 Commercial construction 1,557 1,596 — 1,597 174 Consumer real estate 250 250 — 250 28 Consumer nonresidential — — — — — $ 17,258 $ 17,297 $ — $ 17,454 $ 1,021 |
Schedule of risk category of loans | Based on the most recent analysis performed, the risk category of loans by class of loans was as follows as of December 31, 2022 and 2021: 2022 – Originated Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 1,077,526 $ 237,638 $ 147,436 $ 320,735 $ 7,661 $ 1,790,996 Special mention 6,284 3,350 — 803 — 10,437 Substandard 1,703 1,319 — 1,041 — 4,063 Doubtful — — — — — — Loss — — — — — — Total $ 1,085,513 $ 242,307 $ 147,436 $ 322,579 $ 7,661 $ 1,805,496 2022 – Acquired Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 14,748 $ 2,913 $ 503 $ 17,012 $ 24 $ 35,200 Special mention — — — — — — Substandard — — — — — — Doubtful — — — — — — Loss — — — — — — Total $ 14,748 $ 2,913 $ 503 $ 17,012 $ 24 $ 35,200 2021 – Originated Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 875,395 $ 193,426 $ 182,497 $ 176,271 $ 10,277 $ 1,437,866 Special mention — 400 2,518 68 — 2,986 Substandard 11,915 5,214 1,557 343 — 19,029 Doubtful — — — — — — Loss — — — — — — Total $ 887,310 $ 199,040 $ 186,572 $ 176,682 $ 10,277 $ 1,459,881 2021 – Acquired Loan Portfolio Commercial Real Commercial and Commercial Construction Consumer Real Estate Consumer Nonresidential Total Grade: Pass $ 18,802 $ 3,710 $ 1,043 $ 23,922 $ 27 $ 47,504 Special mention — — — — — — Substandard — — — — — — Doubtful — — — — — — Loss — — — — — — Total $ 18,802 $ 3,710 $ 1,043 $ 23,922 $ 27 $ 47,504 |
Schedule of past due and nonaccrual loans | Past due and nonaccrual loans presented by loan class were as follows as of December 31, 2022 and 2021: 2022 – Originated Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ 546 $ — $ 2,096 $ 2,642 $ 1,082,871 $ 1,085,513 $ 393 $ 1,703 Commercial and industrial 512 — 1,319 1,831 240,476 242,307 — 1,319 Commercial construction — — 125 125 147,311 147,436 125 — Consumer real estate 805 — 953 1,758 320,821 322,579 825 128 Consumer nonresidential — 63 — 63 7,598 7,661 — — Total $ 1,863 $ 63 $ 4,493 $ 6,419 $ 1,799,077 $ 1,805,496 $ 1,343 $ 3,150 2022 – Acquired Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ — $ — $ — $ — $ 14,748 $ 14,748 $ — $ — Commercial and industrial — — — — 2,913 2,913 — — Commercial construction — — — — 503 503 — — Consumer real estate — — — — 17,012 17,012 — — Consumer nonresidential — — — — 24 24 — — Total $ — $ — $ — $ — $ 35,200 $ 35,200 $ — $ — 2021 – Originated Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ — $ — $ — $ — $ 887,310 $ 887,310 $ — $ — Commercial and industrial — — 1,678 1,678 197,362 199,040 — 1,678 Commercial construction — — 1,557 1,557 185,015 186,572 — 1,557 Consumer real estate — — 250 250 176,432 176,682 — 250 Consumer nonresidential 14 21 18 53 10,224 10,277 18 — Total $ 14 $ 21 $ 3,503 $ 3,538 $ 1,456,343 $ 1,459,881 $ 18 $ 3,485 2021 – Acquired Loan Portfolio 30-59 days past 60-89 days past due 90 days or more past due Total past due Current Total loans 90 days past due Nonaccruals Commercial real estate $ — $ — $ — $ — $ 18,802 $ 18,802 $ — $ — Commercial and industrial — — — — 3,710 3,710 — — Commercial construction — — — — 1,043 1,043 — — Consumer real estate 234 — 5 239 23,683 23,922 5 — Consumer nonresidential 2 — — 2 25 27 — — Total $ 236 $ — $ 5 $ 241 $ 47,263 $ 47,504 $ 5 $ — |
Schedule of TDR's originated | The following table presents the TDRs originated during the year ended December 31, 2022: Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial real estate 1 $ 742 $ 742 Total 1 $ 742 $ 742 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of information concerning amortizable intangibles | Information concerning amortizable intangibles follows: Acquisition of 1st Commonwealth Acquisition of Colombo Bank Total Gross Carrying Accumulated Gross Carrying Accumulated Gross Carrying Accumulated Balance at December 31, 2020 $ 204 $ 165 $ 1,950 $ 789 $ 2,154 $ 954 2021 activity: 1st Commonwealth amortization — 20 — — — 20 Colombo Bank amortization — — — 285 — 285 Balance at December 31, 2021 $ 204 $ 185 $ 1,950 $ 1,074 $ 2,154 $ 1,259 2022 activity: 1st Commonwealth amortization — 19 — — — 19 Colombo Bank amortization — — — 243 — 243 Balance at December 31, 2022 $ 204 $ 204 $ 1,950 $ 1,317 $ 2,154 $ 1,521 |
Schedule of estimated amortization expense | The aggregate amortization expense was $262 thousand for 2022 and $305 thousand for 2021. As of December 31, 2022, the estimated amortization expense for the next five years and thereafter is as follows: 2023 $ 205 2024 165 2025 125 2026 85 2027 45 Thereafter 8 $ 633 |
Schedule of carrying amount of goodwill | The carrying amount of goodwill for the years ended December 31, 2022 and 2021 is as follows: Balance at December 31, 2022 and 2021 $ 7,157 |
Premises, Equipment, and Leas_2
Premises, Equipment, and Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Summary of the cost and accumulated depreciation of premises and equipment | The following table summarizes the cost and accumulated depreciation of premises and equipment as of December 31, 2022 and 2021: 2022 2021 Leasehold improvements $ 3,068 $ 3,039 Furniture, fixtures and equipment 4,310 4,163 Computer software 1,169 1,275 Land 61 61 Buildings 196 196 Vehicles 47 47 Premises and equipment, gross $ 8,851 $ 8,781 Less: accumulated depreciation 7,631 7,197 Premises and equipment, net $ 1,220 $ 1,584 |
Schedule of information about leases | The following tables present information about leases as of and for the years ended December 31, 2022 and 2021: 2022 2021 Right-of-Use-Asset $ 9,680 $ 10,167 Lease Liability $ 10,394 $ 11,111 Weighted Average Remaining Lease Term (Years) 7.9 8.9 Weighted Average discount rate 3.21 % 3.20 % |
Maturity schedule of undiscounted cash flows that contribute to the lease liability | Years Ended December 31, 2022 2021 Operating Lease Expense $ 1,504 $ 1,626 Cash paid for amounts included in lease liabilities $ 1,541 $ 1,559 Modification of right-of-use assets and lease liability 283 — Right-of-use assets obtained in exchange for operating lease liabilities 522 207 2023 $ 1,780 2024 1,734 2025 1,581 2026 1,486 2027 1,355 Thereafter 3,860 Total $ 11,796 Less: discount (1,402) $ 10,394 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of maturities on certificates of deposits | Remaining maturities on certificates of deposit are as follows as of December 31, 2022: 2023 $ 413,617 2024 18,107 2025 48,284 2026 11,086 2027 17,315 Thereafter 4 $ 508,413 |
Other Borrowed Funds (Tables)
Other Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of other borrowed funds | Other borrowed funds at December 31, 2022 and 2021 consist of the following: Federal Funds Purchased FHLB Advances Subordinated Debt, net 2022 2021 2022 2021 2022 2021 Balance Outstanding at December 31, $ 30,000 $ — $ 235,000 $ 25,000 $ 19,565 $ 19,510 Maximum balance at any month end during the year $ 115,000 $ — $ 235,000 $ 25,000 $ 19,565 $ 44,167 Average balance for the year $ 22,164 $ 22 $ 48,134 $ 25,000 $ 19,535 $ 37,856 Weighted average rate on borrowings for the year ended 3.11 % 0.20 % 2.60 % 1.39 % 5.28 % 6.69 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at December 31, 2022 and 2021 are presented below: 2022 2021 Deferred Tax Assets: Allowance for loan losses $ 3,698 $ 3,131 Net operating loss carryforward – federal and state 2,466 2,785 Bank premises and equipment 265 184 Nonqualified stock options and restricted stock 658 611 Organizational and start-up expenses 10 22 Acquisition accounting adjustments 257 258 Non-accrual loan interest 59 24 Deferred loan costs 60 801 Lease liability 2,396 2,516 Unrealized loss on securities available for sale 11,876 582 Unrealized loss on interest rate swap — 17 $ 21,745 $ 10,931 Deferred Tax Liabilities: Right-of-use assets $ (2,232) $ (2,302) Unrealized gain on interest rate swap (980) — $ (3,212) $ (2,302) Net Deferred Tax Assets $ 18,533 $ 8,629 |
Schedule of income tax expense charged to operations | The income tax expense charged to operations for the years ended December 31, 2022 and 2021 consists of the following: 2022 2021 Current tax expense $ 5,610 $ 5,269 Deferred tax expense 395 1,007 $ 6,005 $ 6,276 |
Schedule of income tax expense differed from amounts computed by applying the U.S. federal income tax rate to income, before income tax expense | Income tax expense differed from amounts computed by applying the U.S. federal income tax rate to income, before income tax expense as a result of the following: 2022 2021 Computed "expected" tax expense $ 6,313 $ 5,924 Increase (decrease) in income taxes resulting from: State income tax expense 503 472 Non-deductible expense 138 231 Tax free income (259) (217) Tax benefits from exercise of stock options (364) (163) Other (326) 29 $ 6,005 $ 6,276 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amount and fair value of derivative financial instruments | The notional amount and fair value of the Company's derivative financial instruments as of December 31, 2022 and 2021 were as follows: December 31, 2022 Notional Amount Fair Value Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps $ 74,178 $ 4,260 Pay Fixed/Receive Variable Swaps 74,178 (4,260) December 31, 2021 Notional Amount Fair Value Interest Rate Swap Agreements Receive Fixed/Pay Variable Swaps $ 80,643 $ 6,052 Pay Fixed/Receive Variable Swaps 80,643 (6,052) At December 31, 2022 and 2021, the information pertaining to outstanding interest rate swap agreements used to hedge variability in cash flows is as follows: (Dollars in thousands) 2022 2021 Notional amount $ 145,000 $ 60,000 Weighted average pay rate 2.12 % 0.87 % Weighted average receive rate 4.74 % 0.21 % Weighted average maturity in years 3.49 1.1 Unrealized gain/(loss) relating to interest rate swaps $ 4,251 $ (77) |
Financial Instruments with Of_2
Financial Instruments with Off-Balance Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments with Off-Balance Sheet Risk | |
Schedule of financial instruments outstanding which contract amounts represent credit risk | At December 31, 2022 and 2021, the following financial instruments were outstanding which contract amounts represent credit risk: 2022 2021 Commitments to grant loans $ 135,441 $ 90,591 Unused commitments to fund loans and lines of credit 235,617 183,145 Commercial and standby letters of credit 6,503 8,930 |
Minimum Regulatory Capital Re_2
Minimum Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of minimum capital requirement and capital position | The capital ratios for the Bank as of December 31, 2022 and 2021 are shown in the following table. Actual Minimum Capital Requirement Minimum to be Well Capitalized Under Prompt Corrective Action Amount Ratio Amount Ratio (1) Amount Ratio At December 31, 2022 Total risk-based capital $ 256,898 13.28 % $ 203,113 10.50 % $ 193,441 > 10.00 % Tier 1 risk-based capital 240,858 12.45 % 164,425 8.50 % 154,753 > 8.00 % Common equity tier 1 capital 240,858 12.45 % 135,409 7.00 % 125,737 > 6.50 % Leverage capital ratio 240,858 10.75 % 87,894 4.00 % 109,867 > 5.00 % At December 31, 2021 Total risk-based capital $ 222,871 13.54 % $ 177,069 10.50 % $ 168,638 > 10.00 % Tier 1 risk-based capital 214,442 12.72 % 143,342 8.50 % 134,910 > 8.00 % Common equity tier 1 capital 214,442 12.72 % 118,046 7.00 % 109,614 > 6.50 % Leverage capital ratio 214,442 10.55 % 81,712 4.00 % 102,140 > 5.00 % (1) Ratios include capital conservation buffer. |
Stock-Based Compensation Plan (
Stock-Based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of option activity | A summary of option activity under the Plan as of December 31, 2022, and changes during the year then ended is presented below: Options Shares Weighted Weighted Aggregate Intrinsic Value (1) Outstanding at January 1, 2022 1,931,059 $ 6.65 2.46 — Granted — — Exercised (309,018) 5.74 Forfeited or expired (121) 6.85 Outstanding and Exercisable at December 31, 2022 1,621,920 $ 6.82 1.81 $ 13,681,905 ________________________ (1) The aggregate intrinsic value of stock options represents the total pre-tax intrinsic value (the amount by which the current market value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2022. This amount changes based on changes in the market value of the Company's stock. |
Schedule of restricted stock grant activity | A summary of the Company's restricted stock grant activity as of December 31, 2022 is shown below. Number of Weighted Average Nonvested at January 1, 2022 189,240 $ 14.34 Granted 155,399 14.95 Vested (58,401) 14.53 Forfeited (7,993) 14.59 Balance at December 31, 2022 278,245 $ 14.63 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of financial assets and liabilities measured at fair value on a recurring basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021: Fair Value Measurements at December 31, 2022 Using Balance as of December 31, 2022 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 11,004 $ — $ 11,004 $ — Securities of state and local municipalities tax exempt 1,376 — 1,376 — Securities of state and local municipalities taxable 444 — 444 — Corporate bonds 19,058 — 19,058 — SBA pass-through securities 67 — 67 — Mortgage-backed securities 237,434 — 237,434 — Collateralized mortgage obligations 8,686 — 8,686 — Total Available-for-Sale Securities $ 278,069 $ — $ 278,069 $ — Derivative assets - interest rate swaps $ 4,260 $ — $ 4,260 $ — Derivative assets - cash flow hedge 4,251 — 4,251 — Liabilities Derivative liabilties - interest rate swaps $ 4,260 $ — $ 4,260 $ — Fair Value Measurements at December 31, 2021 Using Balance as of December 31, 2021 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Available-for-sale Securities of U.S. government and federal agencies $ 13,436 $ — $ 13,436 $ — Securities of state and local municipalities tax exempt 1,451 — 1,451 $ — Securities of state and local municipalities taxable 596 — 596 — Corporate bonds 14,151 — 14,151 — SBA pass-through securities 108 — 108 — Mortgage-backed securities 313,838 — 313,838 — Collateralized mortgage obligations 14,194 — 14,194 — Total Available-for-Sale Securities $ 357,774 $ — $ 357,774 $ — Derivative assets - interest rate swaps $ 6,052 $ — $ 6,052 $ — Liabilities Derivative liabilties - interest rate swaps $ 6,052 $ — $ 6,052 $ — Derivative liabilties - cash flow hedge 77 — 77 — |
Schedule of the Company's assets that were measured at fair value on a nonrecurring basis | The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at December 31, 2022 and December 31, 2021: Fair Value Measurements Using Balance as of December 31, 2022 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Impaired loans Commercial and industrial $ 1,233 $ — $ — $ 1,233 Total Impaired loans $ 1,233 $ — $ — $ 1,233 Fair Value Measurements Using Balance as of December 31, 2021 Quoted Prices Significant Significant Description (Level 1) (Level 2) (Level 3) Assets Impaired loans Commercial and industrial $ 1,497 $ — $ — $ 1,497 Consumer residential 88 — — 88 Total Impaired loans $ 1,585 $ — $ — $ 1,585 |
Schedule of quantitative information about Level 3 Fair Value Measurements | The following table displays quantitative information about Level 3 Fair Value Measurements for December 31, 2022 and 2021: Quantitative information about Level 3 Fair Value Measurements for December 31, 2022 Assets Fair Value Valuation Technique(s) Unobservable input Range (Avg.) Impaired loans Commercial and industrial $ 1,233 Discounted appraised value Marketability/Selling costs 8% - 8% 8.00 % Quantitative information about Level 3 Fair Value Measurements for December 31, 2021 Assets Fair Value Valuation Technique(s) Unobservable input Range (Avg.) Impaired loans Commercial and industrial $ 1,497 Discounted appraised value Marketability/Selling costs 8% - 8 % 8.00 % Consumer residential $ 88 Discounted appraised value Marketability/Selling costs 8% - 8% 8.00 % Total Impaired loans $ 1,585 Discounted appraised value Marketability/Selling costs 8% - 8% 8.00 % |
Schedule of carrying amount, fair value and placement in the fair value hierarchy of the Company's financial instruments | The following presents the carrying amount, fair value and placement in the fair value hierarchy of the Company's financial instruments as of December 31, 2022 and 2021. Fair values for December 31, 2022 and 2021 are estimated under the exit price notion in accordance with the prospective adoption of ASU 2016-01, "Recognition and Measurement of Financial Assets and Financial Liabilities." Fair Value Measurements as of December 31, 2022 using Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Significant Unobservable Inputs Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 7,253 $ 7,253 $ — $ — Interest-bearing deposits at other institutions 74,300 74,300 — — Securities held-to-maturity 264 — 252 — Securities available-for-sale 278,069 — 278,069 — Restricted stock 15,612 — 15,612 — Loans, net 1,824,394 — — 1,756,984 Bank owned life insurance 55,371 — 55,371 — Accrued interest receivable 9,435 — 9,435 — Derivative assets - interest rate swaps 4,260 — 4,260 — Derivative assets - cash flow hedge 4,251 — 4,251 — Financial liabilities: Checking, savings and money market accounts $ 1,321,749 $ — $ 1,321,749 $ — Time deposits 508,413 — 510,754 — Fed Funds Purchased 30,000 — 30,000 — FHLB advances 235,000 — 235,000 — Subordinated notes 19,565 — 18,856 — Accrued interest payable 1,269 — 1,269 — Derivative liabilties - interest rate swaps 4,260 — 4,260 — Fair Value Measurements as of December 31, 2021 using Carrying Amount Quoted Prices in Active Markets for Identical Assets Significant Significant Unobservable Inputs Level 1 Level 2 Level 3 Financial assets: Cash and due from banks $ 24,613 $ 24,613 $ — $ — Interest-bearing deposits at other institutions 216,345 216,345 — — Securities held-to-maturity 264 — 270 — Securities available-for-sale 357,774 — 357,774 — Restricted stock 6,372 — 6,372 — Loans, net 1,490,020 — — 1,493,185 Bank owned life insurance 39,171 — 39,171 — Accrued interest receivable 8,074 — 8,074 — Derivative assets - interest rate swaps 6,052 — 6,052 — Financial liabilities: Checking, savings and money market accounts $ 1,652,352 $ — $ 1,652,352 $ — Time deposits 231,417 — 232,837 — FHLB advances 25,000 — 25,000 — Subordinated notes 19,510 — 18,133 — Accrued interest payable 1,034 — 1,034 — Derivative liabilties - interest rate swaps 6,052 — 6,052 — Derivative liabilties - cash flow hedge 77 — 77 — |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of earning per share | The holders of restricted stock do not share in dividends and do not have voting rights during the vesting period. For the Years Ended December 31, 2022 2021 Net income $ 24,984 $ 21,933 Weighted average shares - basic 17,431 17,062 Effect of dilutive securities 1,053 1,165 Weighted average shares - diluted 18,484 18,227 Basic EPS $ 1.43 $ 1.29 Diluted EPS $ 1.35 $ 1.20 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental cash flow information | For the Years Ended December 31, 2022 2021 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 15,140 $ 9,361 Income taxes 6,070 4,735 Noncash investing and financing activities: Unrealized loss on securities available-for-sale (48,958) (5,630) Unrealized gain on interest rate swaps 4,328 677 Right-of-use assets obtained in the exchange for lease liabilities during the current period 522 207 Modification of right-of-use assets and lease liability 283 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Statement of Other Comprehensive Income [Abstract] | |
Schedule of changes in accumulated other comprehensive income (AOCI) | Changes in accumulated other comprehensive income (loss) ("AOCI") for the years ended December 31, 2022 and 2021 are shown in the following table. The Company has two components of AOCI, which are available-for-sale securities and cash flow hedges, for each of the years ended December 31, 2022 and 2021. 2022 Available-for- Cash Flow Total Balance, beginning of period $ (1,983) $ (60) $ (2,043) Net unrealized (losses) gains during the period (37,943) 3,419 (34,524) Other comprehensive (loss) income, net of tax (37,943) 3,419 (34,524) Balance, end of period $ (39,926) $ 3,359 $ (36,567) 2021 Available-for- Cash Flow Total Balance, beginning of period $ 2,421 $ (595) $ 1,826 Net unrealized gains (losses) during the period (4,404) 535 (3,869) Other comprehensive income (loss), net of tax (4,404) 535 (3,869) Balance, end of period $ (1,983) $ (60) $ (2,043) |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of noninterest income | The following presents noninterest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the years ended December 31, 2022 and 2021: Years Ended December 31, 2022 2021 Noninterest Income In-scope of Topic 606 Service Charges on Deposit Accounts $ 954 $ 1,028 Fees, Exchange, and Other Service Charges 374 369 Other income 104 191 Noninterest Income (in-scope of Topic 606) 1,432 1,588 Noninterest Income (out-scope of Topic 606) 1,402 2,714 Total Noninterest Income $ 2,834 $ 4,302 |
Parent Company Only Financial_2
Parent Company Only Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent company only condensed statements of condition | The FVCBankcorp, Inc. (Parent Company only) condensed financial statements are as follows: PARENT COMPANY ONLY CONDENSED STATEMENTS OF CONDITION December 31, 2022 and 2021 Assets 2022 2021 Cash and cash equivalents $ 531 $ 1,882 Securities available-for-sale 991 1,005 Investment in subsidiary 214,382 223,043 Other assets 6,404 3,903 Total assets $ 222,308 $ 229,833 Liabilities and Stockholders' Equity Subordinated notes $ 19,565 $ 19,510 Other liabilities 361 527 Total liabilities $ 19,926 $ 20,037 Total stockholders' equity $ 202,382 $ 209,796 Total liabilities and stockholders' equity $ 222,308 $ 229,833 |
Schedule of parent company only condensed statements of operations | PARENT COMPANY ONLY CONDENSED STATEMENTS OF INCOME For the Years Ended December 31, 2022 and 2021 2022 2021 Income: Interest on securities available-for-sale $ 67 $ 65 Income from minority membership interest 626 — Dividend income 730 20,820 Total income $ 1,423 $ 20,885 Expense: Interest on subordinated notes $ 1,031 $ 2,534 Salaries and employee benefits 1,192 1,021 Occupancy and equipment 80 83 Audit, legal and consulting fees 375 320 Other operating expenses 194 249 Total expense $ 2,872 $ 4,207 Net income (loss) before income tax benefit and equity in undistributed earnings of subsidiary $ (1,449) $ 16,678 Income tax benefit (580) (879) Equity in undistributed earnings of subsidiary 25,853 4,376 Net income $ 24,984 $ 21,933 |
Schedule of parent company only condensed statements of cash flows | PARENT COMPANY ONLY CONDENSED STATEMENTS OF CASH FLOWS For The Years Ended December 31, 2022 and 2021 2022 2021 Cash Flows From Operating Activities Net income $ 24,984 $ 21,933 Equity in undistributed earnings of subsidiary (25,853) (4,376) Amortization of subordinated debt issuance costs 55 488 Stock-based compensation expense 1,183 1,011 Change in other assets and liabilities (1,413) (2,598) Net cash (used in) provided by operating activities $ (1,044) $ 16,458 Cash Flows From Investing Activities Net cash used in investing activities $ — $ — Cash Flows From Financing Activities Repayment of subordinated notes, net $ (1,250) $ (23,813) Repurchase of shares of common stock (730) — Common stock issuance 1,673 1,221 Net cash used in financing activities $ (307) $ (22,592) Net decrease in cash and cash equivalents $ (1,351) $ (6,134) Cash and cash equivalents, beginning of year 1,882 8,016 Cash and cash equivalents, end of year $ 531 $ 1,882 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Details) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Dec. 15, 2022 | Aug. 31, 2021 USD ($) | Feb. 28, 2023 USD ($) | Mar. 24, 2023 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Schedule of Equity Method Investments [Line Items] | ||||||
Stock split, conversion ratio | 1.25 | |||||
Common stock, dividend, paid-in-kind, percentage | 25% | |||||
Investment securities sold | $ 0 | $ 0 | ||||
Gross realized losses on available-for-sale securities | $ 0 | $ 0 | ||||
Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Investment securities sold | $ 40,300,000 | |||||
Gross realized losses on available-for-sale securities | $ 3,600,000 | |||||
Pay Fixed/Receive-Floating Interest Rate Swaps | Subsequent Event | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Notional amount | $ 150,000,000 | |||||
Weighted average interest rate | 3.50% | |||||
Derivative, term of contract | 5 years | |||||
Atlantic Coast Mortgage LLC | ||||||
Schedule of Equity Method Investments [Line Items] | ||||||
Equity method investment, cost | $ 20,400,000 | |||||
Equity method investment, ownership percentage | 28.70% | 27.70% | ||||
Earnback option percentage | 3.70% | |||||
Earnback period | 3 years |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies - Loans and Allowance for Loan Losses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Line of Credit Facility [Line Items] | |
Allowance for loan losses | $ 0 |
Home equity lines of credit | |
Line of Credit Facility [Line Items] | |
Maximum loan to value | 85% |
Maximum | |
Line of Credit Facility [Line Items] | |
Loan to value ratios for real estate-commercial loans | 80% |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2022 agreement | |
Premises and Equipment | |
Number of lease arrangements without known escalators | 3 |
Premises, furniture and equipment | Minimum | |
Premises and Equipment | |
Estimated useful life (in years) | 3 years |
Premises, furniture and equipment | Maximum | |
Premises and Equipment | |
Estimated useful life (in years) | 7 years |
Computer software | Minimum | |
Premises and Equipment | |
Estimated useful life (in years) | 1 year |
Computer software | Maximum | |
Premises and Equipment | |
Estimated useful life (in years) | 3 years |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets | ||
Impairment of goodwill and intangible assets | $ 0 | $ 0 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - 401(k) Plan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
401(K) plan contribution expense | $ 424 | $ 377 |
Investment Securities and Oth_3
Investment Securities and Other Investments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Held-to-maturity | ||
Total | $ 264 | $ 264 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized (Losses) | (12) | 0 |
Fair Value | 252 | 270 |
Available-for-sale | ||
Total | 329,592 | 360,177 |
Gross Unrealized Gains | 0 | 1,783 |
Gross Unrealized (Losses) | (51,523) | (4,348) |
Securities available-for-sale, at fair value | 278,069 | 357,612 |
Securities of state and local municipalities tax exempt | ||
Held-to-maturity | ||
Total | 264 | 264 |
Gross Unrealized Gains | 0 | 6 |
Gross Unrealized (Losses) | (12) | 0 |
Fair Value | 252 | 270 |
Available-for-sale | ||
Total | 1,385 | 1,393 |
Gross Unrealized Gains | 0 | 58 |
Gross Unrealized (Losses) | (9) | 0 |
Securities available-for-sale, at fair value | 1,376 | 1,451 |
Securities of U.S. government and federal agencies | ||
Available-for-sale | ||
Total | 13,559 | 13,557 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (2,555) | (283) |
Securities available-for-sale, at fair value | 11,004 | 13,274 |
Securities of state and local municipalities taxable | ||
Available-for-sale | ||
Total | 506 | 607 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized (Losses) | (62) | (11) |
Securities available-for-sale, at fair value | 444 | 596 |
Federal Reserve Bank Member | Asset Pledged as Collateral | ||
Available-for-sale | ||
Debt securities | 4,100 | 5,800 |
Community Bankers Bank Member | Asset Pledged as Collateral | ||
Available-for-sale | ||
Debt securities | 104,600 | 79,700 |
Corporate bonds | ||
Available-for-sale | ||
Total | 21,212 | 13,970 |
Gross Unrealized Gains | 0 | 259 |
Gross Unrealized (Losses) | (2,154) | (78) |
Securities available-for-sale, at fair value | 19,058 | 14,151 |
SBA pass-through securities | ||
Available-for-sale | ||
Total | 74 | 107 |
Gross Unrealized Gains | 0 | 1 |
Gross Unrealized (Losses) | (7) | 0 |
Securities available-for-sale, at fair value | 67 | 108 |
Mortgage-backed securities | ||
Available-for-sale | ||
Total | 282,858 | 316,313 |
Gross Unrealized Gains | 0 | 1,352 |
Gross Unrealized (Losses) | (45,424) | (3,827) |
Securities available-for-sale, at fair value | 237,434 | 313,838 |
Collateralized mortgage obligations | ||
Available-for-sale | ||
Total | 9,998 | 14,230 |
Gross Unrealized Gains | 0 | 113 |
Gross Unrealized (Losses) | (1,312) | (149) |
Securities available-for-sale, at fair value | $ 8,686 | $ 14,194 |
Investment Securities and Oth_4
Investment Securities and Other Investments - Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | $ 43,059 | $ 237,432 |
Fair Value, 12 Months or Longer | 234,512 | 21,039 |
Fair Value, Total | 277,571 | 258,471 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (3,209) | (3,629) |
Unrealized Losses, Less than 12 Months | (48,326) | (719) |
Unrealized Losses, Total | (51,535) | (4,348) |
Securities of U.S. government and federal agencies | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 13,275 |
Fair Value, 12 Months or Longer | 11,004 | 0 |
Fair Value, Total | 11,004 | 13,275 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (283) |
Unrealized Losses, Less than 12 Months | (2,555) | 0 |
Unrealized Losses, Total | (2,555) | (283) |
Securities of state and local municipalities tax exempt | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 1,628 | |
Fair Value, 12 Months or Longer | 0 | |
Fair Value, Total | 1,628 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (21) | |
Unrealized Losses, Less than 12 Months | 0 | |
Unrealized Losses, Total | (21) | |
Securities of state and local municipalities - taxable | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | 595 |
Fair Value, 12 Months or Longer | 444 | 0 |
Fair Value, Total | 444 | 595 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | (11) |
Unrealized Losses, Less than 12 Months | (62) | 0 |
Unrealized Losses, Total | (62) | (11) |
Corporate bonds | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 12,344 | 3,922 |
Fair Value, 12 Months or Longer | 5,964 | 0 |
Fair Value, Total | 18,308 | 3,922 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (1,119) | (78) |
Unrealized Losses, Less than 12 Months | (1,035) | 0 |
Unrealized Losses, Total | (2,154) | (78) |
SBA pass-through securities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 0 | |
Fair Value, 12 Months or Longer | 67 | |
Fair Value, Total | 67 | |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | 0 | |
Unrealized Losses, Less than 12 Months | (7) | |
Unrealized Losses, Total | (7) | |
Mortgage-backed securities | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 26,486 | 216,278 |
Fair Value, 12 Months or Longer | 210,948 | 19,225 |
Fair Value, Total | 237,434 | 235,503 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (1,831) | (3,175) |
Unrealized Losses, Less than 12 Months | (43,593) | (652) |
Unrealized Losses, Total | (45,424) | (3,827) |
Collateralized mortgage obligations | ||
Available-for-sale securities, Continuous Unrealized Loss Position, Fair Value | ||
Fair Value, Less than 12 Months | 2,601 | 3,362 |
Fair Value, 12 Months or Longer | 6,085 | 1,814 |
Fair Value, Total | 8,686 | 5,176 |
Available-for-sale securities, Continuous Unrealized Loss Position, Gross Unrealized Losses | ||
Unrealized Losses, Less than 12 Months | (238) | (82) |
Unrealized Losses, Less than 12 Months | (1,074) | (67) |
Unrealized Losses, Total | $ (1,312) | $ (149) |
Investment Securities and Oth_5
Investment Securities and Other Investments - Continuous Unrealized Loss Position - Additional information (Details) | 12 Months Ended |
Dec. 31, 2022 security | |
Securities of U.S. government and federal agencies | |
Debt Securities, Available-for-sale | |
Number of investment securities | 3 |
Securities of state and local municipalities tax exempt | |
Debt Securities, Available-for-sale | |
Number of investment securities | 3 |
Securities of state and local municipalities - taxable | |
Debt Securities, Available-for-sale | |
Number of investment securities | 1 |
Corporate bonds | |
Debt Securities, Available-for-sale | |
Number of investment securities | 15 |
Corporate bonds | BBB and BBB+ | |
Debt Securities, Available-for-sale | |
Number of investment securities | 2 |
SBA pass-through securities | |
Debt Securities, Available-for-sale | |
Number of investment securities | 1 |
Mortgage-backed securities | |
Debt Securities, Available-for-sale | |
Number of investment securities | 106 |
Collateralized mortgage obligations | |
Debt Securities, Available-for-sale | |
Number of investment securities | 29 |
Investment Securities and Oth_6
Investment Securities and Other Investments - Contractual Maturities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Held-to-maturity, Amortized Cost | ||
After 1 year through 5 years | $ 264 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Total | 264 | $ 264 |
Held-to-maturity, Fair Value | ||
After 1 year through 5 years | 252 | |
After 5 years through 10 years | 0 | |
After 10 years | 0 | |
Total | 252 | 270 |
Available-for-sale, Amortized Cost | ||
After 1 year through 5 years | 4,935 | |
After 5 years through 10 years | 48,978 | |
After 10 years | 275,679 | |
Total | 329,592 | 360,177 |
Available-for-sale, Fair Value | ||
After 1 year through 5 years | 4,776 | |
After 5 years through 10 years | 43,396 | |
After 10 years | 229,897 | |
Total | $ 278,069 | $ 357,612 |
Investment Securities and Oth_7
Investment Securities and Other Investments - Contractual Maturities - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from maturities, calls and principal repayments of securities | $ 37,100,000 | $ 48,000,000 |
Investment securities sold | 0 | 0 |
Gross realized gains on available-for-sale securities | 0 | 0 |
Gross realized losses on available-for-sale securities | $ 0 | $ 0 |
Investment Securities and Oth_8
Investment Securities and Other Investments - Other Investments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of Investments [Line Items] | ||
Restricted stock, at cost | $ 15,612 | $ 6,372 |
Federal Reserve stock | ||
Schedule of Investments [Line Items] | ||
Restricted stock, at cost | 4,378 | 4,378 |
FHLB stock | ||
Schedule of Investments [Line Items] | ||
Restricted stock, at cost | 11,087 | 1,847 |
Community Bankers' Bank stock | ||
Schedule of Investments [Line Items] | ||
Restricted stock, at cost | 122 | 122 |
Atlantic Bankers' Bank stock | ||
Schedule of Investments [Line Items] | ||
Restricted stock, at cost | $ 25 | $ 25 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of loan balances by type (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Allowance for Loan Losses | |||
Loans, gross | $ 1,840,696 | $ 1,507,385 | |
Allowance for loan losses | 16,040 | 13,829 | $ 14,958 |
Unearned income and (unamortized premiums), net | 262 | 3,536 | |
Loans, net | 1,824,394 | 1,490,020 | |
Commercial | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 1,100,261 | 906,112 | |
Allowance for loan losses | 10,777 | 8,995 | 9,291 |
Commercial | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 245,220 | 202,750 | |
Allowance for loan losses | 2,623 | 1,827 | 2,546 |
Commercial | Construction | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 147,939 | 187,615 | |
Allowance for loan losses | 1,499 | 2,009 | 1,960 |
Consumer | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 339,591 | 200,604 | |
Allowance for loan losses | 1,044 | 781 | 690 |
Consumer | Nonresidential | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 7,685 | 10,304 | |
Allowance for loan losses | 97 | 217 | $ 471 |
Originated Loan Portfolio | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 1,805,496 | 1,459,881 | |
Allowance for loan losses | 16,040 | 13,829 | |
Unearned income and (unamortized premiums), net | 262 | 3,536 | |
Loans, net | 1,789,194 | 1,442,516 | |
Originated Loan Portfolio | Commercial | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 1,085,513 | 887,310 | |
Originated Loan Portfolio | Commercial | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 242,307 | 199,040 | |
Originated Loan Portfolio | Commercial | Construction | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 147,436 | 186,572 | |
Originated Loan Portfolio | Consumer | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 322,579 | 176,682 | |
Originated Loan Portfolio | Consumer | Nonresidential | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 7,661 | 10,277 | |
Acquired Loan Portfolio | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 35,200 | 47,504 | |
Allowance for loan losses | 0 | 0 | |
Unearned income and (unamortized premiums), net | 0 | 0 | |
Loans, net | 35,200 | 47,504 | |
Acquired Loan Portfolio | Commercial | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 14,748 | 18,802 | |
Acquired Loan Portfolio | Commercial | Commercial and industrial | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 2,913 | 3,710 | |
Acquired Loan Portfolio | Commercial | Construction | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 503 | 1,043 | |
Acquired Loan Portfolio | Consumer | Real Estate | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | 17,012 | 23,922 | |
Acquired Loan Portfolio | Consumer | Nonresidential | |||
Loans and Allowance for Loan Losses | |||
Loans, gross | $ 24 | $ 27 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Outstanding principal balance and related carrying amount of acquired loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Allowance for Loan Losses | ||
Carrying amount | $ 4,063 | $ 19,029 |
Changes in the accretable yield on purchased credit impaired loans | ||
Balance at the beginning of the period | 3 | 216 |
Accretion | (197) | (217) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | 33 | 54 |
Other changes, net | 161 | (50) |
Balance at the end of the period | 0 | 3 |
Purchased credit impaired | ||
Loans and Allowance for Loan Losses | ||
Outstanding principal balance | 24 | 207 |
Carrying amount | 0 | 0 |
Other acquired loans | ||
Loans and Allowance for Loan Losses | ||
Outstanding principal balance | 35,604 | 48,049 |
Carrying amount | 35,200 | 47,504 |
Acquired Loan Portfolio | ||
Loans and Allowance for Loan Losses | ||
Outstanding principal balance | 35,628 | 48,256 |
Carrying amount | $ 35,200 | $ 47,504 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for loan losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Allowance for loan losses | ||
Loans and Leases Receivable, Allowance, Beginning Balance | $ 13,829 | $ 14,958 |
Charge-offs | (497) | (849) |
Recoveries | 79 | 220 |
Provision (reversal) | 2,629 | (500) |
Loans and Leases Receivable, Allowance, Ending Balance | 16,040 | 13,829 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 86 | 186 |
Collectively evaluated for impairment | 15,954 | 13,643 |
Total allowance for loans and leases receivables | 16,040 | 13,829 |
Financing receivables: | ||
Individually evaluated for impairment | 4,063 | 19,029 |
Collectively evaluated for impairment | 1,836,633 | 1,488,356 |
Loans receivables | 1,840,696 | 1,507,385 |
Purchased credit impaired | ||
Allowance for loan losses: | ||
Purchased credit impaired loans | 0 | 0 |
Financing receivables: | ||
Individually evaluated for impairment | 0 | 0 |
Purchased credit impaired loans | 0 | 0 |
Commercial | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 8,995 | 9,291 |
Charge-offs | 0 | (477) |
Recoveries | 0 | 24 |
Provision (reversal) | 1,782 | 157 |
Loans and Leases Receivable, Allowance, Ending Balance | 10,777 | 8,995 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 10,777 | 8,995 |
Total allowance for loans and leases receivables | 10,777 | 8,995 |
Financing receivables: | ||
Individually evaluated for impairment | 1,703 | 11,915 |
Collectively evaluated for impairment | 1,098,558 | 894,197 |
Loans receivables | 1,100,261 | 906,112 |
Commercial | Real Estate | Purchased credit impaired | ||
Allowance for loan losses: | ||
Purchased credit impaired loans | 0 | 0 |
Financing receivables: | ||
Purchased credit impaired loans | 0 | 0 |
Commercial | Commercial and industrial | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 1,827 | 2,546 |
Charge-offs | (396) | (117) |
Recoveries | 0 | 0 |
Provision (reversal) | 1,192 | (602) |
Loans and Leases Receivable, Allowance, Ending Balance | 2,623 | 1,827 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 86 | 181 |
Collectively evaluated for impairment | 2,537 | 1,646 |
Total allowance for loans and leases receivables | 2,623 | 1,827 |
Financing receivables: | ||
Individually evaluated for impairment | 1,319 | 5,214 |
Collectively evaluated for impairment | 243,901 | 197,536 |
Loans receivables | 245,220 | 202,750 |
Commercial | Commercial and industrial | Purchased credit impaired | ||
Allowance for loan losses: | ||
Purchased credit impaired loans | 0 | 0 |
Financing receivables: | ||
Purchased credit impaired loans | 0 | 0 |
Commercial | Construction | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 2,009 | 1,960 |
Charge-offs | 0 | 0 |
Recoveries | 0 | 0 |
Provision (reversal) | (510) | 49 |
Loans and Leases Receivable, Allowance, Ending Balance | 1,499 | 2,009 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 1,499 | 2,009 |
Total allowance for loans and leases receivables | 1,499 | 2,009 |
Financing receivables: | ||
Individually evaluated for impairment | 0 | 1,557 |
Collectively evaluated for impairment | 147,939 | 186,058 |
Loans receivables | 147,939 | 187,615 |
Commercial | Construction | Purchased credit impaired | ||
Allowance for loan losses: | ||
Purchased credit impaired loans | 0 | 0 |
Financing receivables: | ||
Purchased credit impaired loans | 0 | 0 |
Consumer | Real Estate | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 781 | 690 |
Charge-offs | 0 | 0 |
Recoveries | 1 | 35 |
Provision (reversal) | 262 | 56 |
Loans and Leases Receivable, Allowance, Ending Balance | 1,044 | 781 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 5 |
Collectively evaluated for impairment | 1,044 | 776 |
Total allowance for loans and leases receivables | 1,044 | 781 |
Financing receivables: | ||
Individually evaluated for impairment | 1,041 | 343 |
Collectively evaluated for impairment | 338,550 | 200,261 |
Loans receivables | 339,591 | 200,604 |
Consumer | Real Estate | Purchased credit impaired | ||
Allowance for loan losses: | ||
Purchased credit impaired loans | 0 | 0 |
Financing receivables: | ||
Purchased credit impaired loans | 0 | 0 |
Consumer | Nonresidential | ||
Allowance for loan losses | ||
Loans and Leases Receivable, Allowance, Beginning Balance | 217 | 471 |
Charge-offs | (101) | (255) |
Recoveries | 78 | 161 |
Provision (reversal) | (97) | (160) |
Loans and Leases Receivable, Allowance, Ending Balance | 97 | 217 |
Allowance for loan losses: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 97 | 217 |
Total allowance for loans and leases receivables | 97 | 217 |
Financing receivables: | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 7,685 | 10,304 |
Loans receivables | 7,685 | 10,304 |
Consumer | Nonresidential | Purchased credit impaired | ||
Allowance for loan losses: | ||
Purchased credit impaired loans | 0 | 0 |
Financing receivables: | ||
Purchased credit impaired loans | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Impaired Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Interest Income Recognized | ||
Number of impaired loans | loan | 0 | 0 |
Originated Loan Portfolio | ||
Recorded Investment | ||
With an allowance recorded | $ 1,319 | $ 1,771 |
With no related allowance | 2,744 | 17,258 |
Unpaid Principal Balance | ||
With an allowance recorded | 1,329 | 1,781 |
With no related allowance | 2,747 | 17,297 |
Related Allowance | 86 | 186 |
Average Recorded Investment | ||
With an allowance recorded | 1,604 | 1,806 |
With no related allowance | 2,752 | 17,454 |
Interest Income Recognized | ||
With an allowance recorded | 107 | 102 |
With no related allowance | 169 | 1,021 |
Originated Loan Portfolio | Commercial | Real Estate | ||
Recorded Investment | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 1,703 | 11,915 |
Unpaid Principal Balance | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 1,703 | 11,915 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 1,704 | 11,947 |
Interest Income Recognized | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 135 | 581 |
Originated Loan Portfolio | Commercial | Commercial and industrial | ||
Recorded Investment | ||
With an allowance recorded | 1,319 | 1,678 |
With no related allowance | 0 | 3,536 |
Unpaid Principal Balance | ||
With an allowance recorded | 1,329 | 1,688 |
With no related allowance | 0 | 3,536 |
Related Allowance | 86 | 181 |
Average Recorded Investment | ||
With an allowance recorded | 1,604 | 1,711 |
With no related allowance | 0 | 3,660 |
Interest Income Recognized | ||
With an allowance recorded | 107 | 95 |
With no related allowance | 0 | 238 |
Originated Loan Portfolio | Commercial | Construction | ||
Recorded Investment | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 1,557 |
Unpaid Principal Balance | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 1,596 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 1,597 |
Interest Income Recognized | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 174 |
Originated Loan Portfolio | Consumer | Real Estate | ||
Recorded Investment | ||
With an allowance recorded | 0 | 93 |
With no related allowance | 1,041 | 250 |
Unpaid Principal Balance | ||
With an allowance recorded | 0 | 93 |
With no related allowance | 1,044 | 250 |
Related Allowance | 0 | 5 |
Average Recorded Investment | ||
With an allowance recorded | 0 | 95 |
With no related allowance | 1,048 | 250 |
Interest Income Recognized | ||
With an allowance recorded | 0 | 7 |
With no related allowance | 34 | 28 |
Originated Loan Portfolio | Consumer | Nonresidential | ||
Recorded Investment | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 0 |
Unpaid Principal Balance | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 0 |
Related Allowance | 0 | 0 |
Average Recorded Investment | ||
With an allowance recorded | 0 | 0 |
With no related allowance | 0 | 0 |
Interest Income Recognized | ||
With an allowance recorded | 0 | 0 |
With no related allowance | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Risk category (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and allowance - Risk category of loans | ||
Loans, gross | $ 1,840,696 | $ 1,507,385 |
Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 100 | |
Commercial | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,100,261 | 906,112 |
Commercial | Commercial and industrial | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 245,220 | 202,750 |
Commercial | Construction | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 147,939 | 187,615 |
Consumer | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 339,591 | 200,604 |
Consumer | Nonresidential | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 7,685 | 10,304 |
Originated Loan Portfolio | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,805,496 | 1,459,881 |
Originated Loan Portfolio | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,790,996 | 1,437,866 |
Originated Loan Portfolio | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 10,437 | 2,986 |
Leases receivable | 7,500 | |
Originated Loan Portfolio | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 4,063 | 19,029 |
Leases receivable | (15,000) | |
Originated Loan Portfolio | Commercial | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,085,513 | 887,310 |
Originated Loan Portfolio | Commercial | Real Estate | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,077,526 | 875,395 |
Originated Loan Portfolio | Commercial | Real Estate | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 6,284 | 0 |
Originated Loan Portfolio | Commercial | Real Estate | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,703 | 11,915 |
Originated Loan Portfolio | Commercial | Commercial and industrial | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 242,307 | 199,040 |
Originated Loan Portfolio | Commercial | Commercial and industrial | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 237,638 | 193,426 |
Originated Loan Portfolio | Commercial | Commercial and industrial | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 3,350 | 400 |
Originated Loan Portfolio | Commercial | Commercial and industrial | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,319 | 5,214 |
Originated Loan Portfolio | Commercial | Construction | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 147,436 | 186,572 |
Originated Loan Portfolio | Commercial | Construction | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 147,436 | 182,497 |
Originated Loan Portfolio | Commercial | Construction | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 2,518 |
Originated Loan Portfolio | Commercial | Construction | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 1,557 |
Originated Loan Portfolio | Consumer | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 322,579 | 176,682 |
Originated Loan Portfolio | Consumer | Real Estate | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 320,735 | 176,271 |
Originated Loan Portfolio | Consumer | Real Estate | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 803 | 68 |
Originated Loan Portfolio | Consumer | Real Estate | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 1,041 | 343 |
Originated Loan Portfolio | Consumer | Nonresidential | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 7,661 | 10,277 |
Originated Loan Portfolio | Consumer | Nonresidential | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 7,661 | 10,277 |
Originated Loan Portfolio | Consumer | Nonresidential | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Originated Loan Portfolio | Consumer | Nonresidential | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 35,200 | 47,504 |
Acquired Loan Portfolio | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 35,200 | 47,504 |
Acquired Loan Portfolio | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 14,748 | 18,802 |
Acquired Loan Portfolio | Commercial | Real Estate | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 14,748 | 18,802 |
Acquired Loan Portfolio | Commercial | Real Estate | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 2,913 | 3,710 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 2,913 | 3,710 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 503 | 1,043 |
Acquired Loan Portfolio | Commercial | Construction | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 503 | 1,043 |
Acquired Loan Portfolio | Commercial | Construction | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Consumer | Real Estate | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 17,012 | 23,922 |
Acquired Loan Portfolio | Consumer | Real Estate | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 17,012 | 23,922 |
Acquired Loan Portfolio | Consumer | Real Estate | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Consumer | Real Estate | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Consumer | Nonresidential | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 24 | 27 |
Acquired Loan Portfolio | Consumer | Nonresidential | Pass | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 24 | 27 |
Acquired Loan Portfolio | Consumer | Nonresidential | Special mention | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | 0 | 0 |
Acquired Loan Portfolio | Consumer | Nonresidential | Substandard | ||
Loans and allowance - Risk category of loans | ||
Loans, gross | $ 0 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Past due and Non accrual of loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Allowance for Loan Losses | ||
Loans, net | $ 1,824,394 | $ 1,490,020 |
Federal Home Loan Bank of Atlanta | Asset Pledged as Collateral | ||
Loans and Allowance for Loan Losses | ||
Loans, net | 458,700 | 290,300 |
Adjustment | ||
Loans and Allowance for Loan Losses | ||
Loans, net | 1,300 | 58 |
Commercial | Real Estate | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | |
Originated Loan Portfolio | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,805,496 | 1,459,881 |
90 days past due and still accruing | 1,343 | 18 |
Nonaccruals | 3,150 | 3,485 |
Loans, net | 1,789,194 | 1,442,516 |
Originated Loan Portfolio | Special mention | ||
Loans and Allowance for Loan Losses | ||
Leases receivable | 7,500 | |
Originated Loan Portfolio | Substandard | ||
Loans and Allowance for Loan Losses | ||
Leases receivable | (15,000) | |
Originated Loan Portfolio | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,863 | 14 |
Originated Loan Portfolio | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 63 | 21 |
Originated Loan Portfolio | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 4,493 | 3,503 |
Originated Loan Portfolio | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 6,419 | 3,538 |
Originated Loan Portfolio | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,799,077 | 1,456,343 |
Originated Loan Portfolio | Commercial | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,085,513 | 887,310 |
90 days past due and still accruing | 393 | 0 |
Nonaccruals | 1,703 | 0 |
Originated Loan Portfolio | Commercial | Real Estate | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 546 | 0 |
Originated Loan Portfolio | Commercial | Real Estate | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | |
Originated Loan Portfolio | Commercial | Real Estate | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 2,096 | 0 |
Originated Loan Portfolio | Commercial | Real Estate | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 2,642 | 0 |
Originated Loan Portfolio | Commercial | Real Estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,082,871 | 887,310 |
Originated Loan Portfolio | Commercial | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 242,307 | 199,040 |
90 days past due and still accruing | 0 | 0 |
Nonaccruals | 1,319 | 1,678 |
Originated Loan Portfolio | Commercial | Commercial and industrial | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 512 | 0 |
Originated Loan Portfolio | Commercial | Commercial and industrial | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Originated Loan Portfolio | Commercial | Commercial and industrial | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,319 | 1,678 |
Originated Loan Portfolio | Commercial | Commercial and industrial | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,831 | 1,678 |
Originated Loan Portfolio | Commercial | Commercial and industrial | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 240,476 | 197,362 |
Originated Loan Portfolio | Commercial | Construction | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 147,436 | 186,572 |
90 days past due and still accruing | 125 | 0 |
Nonaccruals | 0 | 1,557 |
Originated Loan Portfolio | Commercial | Construction | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Originated Loan Portfolio | Commercial | Construction | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Originated Loan Portfolio | Commercial | Construction | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 125 | 1,557 |
Originated Loan Portfolio | Commercial | Construction | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 125 | 1,557 |
Originated Loan Portfolio | Commercial | Construction | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 147,311 | 185,015 |
Originated Loan Portfolio | Consumer | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 322,579 | 176,682 |
90 days past due and still accruing | 825 | 0 |
Nonaccruals | 128 | 250 |
Originated Loan Portfolio | Consumer | Real Estate | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 805 | 0 |
Originated Loan Portfolio | Consumer | Real Estate | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Originated Loan Portfolio | Consumer | Real Estate | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 953 | 250 |
Originated Loan Portfolio | Consumer | Real Estate | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 1,758 | 250 |
Originated Loan Portfolio | Consumer | Real Estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 320,821 | 176,432 |
Originated Loan Portfolio | Consumer | Nonresidential | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 7,661 | 10,277 |
90 days past due and still accruing | 0 | 18 |
Nonaccruals | 0 | 0 |
Originated Loan Portfolio | Consumer | Nonresidential | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 14 |
Originated Loan Portfolio | Consumer | Nonresidential | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 63 | 21 |
Originated Loan Portfolio | Consumer | Nonresidential | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 18 |
Originated Loan Portfolio | Consumer | Nonresidential | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 63 | 53 |
Originated Loan Portfolio | Consumer | Nonresidential | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 7,598 | 10,224 |
Acquired Loan Portfolio | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 35,200 | 47,504 |
90 days past due and still accruing | 0 | 5 |
Nonaccruals | 0 | 0 |
Loans, net | 35,200 | 47,504 |
Acquired Loan Portfolio | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 236 |
Acquired Loan Portfolio | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 5 |
Acquired Loan Portfolio | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 241 |
Acquired Loan Portfolio | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 35,200 | 47,263 |
Acquired Loan Portfolio | Commercial | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 14,748 | 18,802 |
90 days past due and still accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Real Estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 14,748 | 18,802 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 2,913 | 3,710 |
90 days past due and still accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Commercial and industrial | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 2,913 | 3,710 |
Acquired Loan Portfolio | Commercial | Construction | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 503 | 1,043 |
90 days past due and still accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Commercial | Construction | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 503 | 1,043 |
Acquired Loan Portfolio | Consumer | Real Estate | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 17,012 | 23,922 |
90 days past due and still accruing | 0 | 5 |
Nonaccruals | 0 | 0 |
Acquired Loan Portfolio | Consumer | Real Estate | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 234 |
Acquired Loan Portfolio | Consumer | Real Estate | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Consumer | Real Estate | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 5 |
Acquired Loan Portfolio | Consumer | Real Estate | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 239 |
Acquired Loan Portfolio | Consumer | Real Estate | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 17,012 | 23,683 |
Acquired Loan Portfolio | Consumer | Nonresidential | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 24 | 27 |
90 days past due and still accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Acquired Loan Portfolio | Consumer | Nonresidential | 30-59 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 2 |
Acquired Loan Portfolio | Consumer | Nonresidential | 60-89 days past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Consumer | Nonresidential | 90 days or more past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 0 |
Acquired Loan Portfolio | Consumer | Nonresidential | Total past due | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | 0 | 2 |
Acquired Loan Portfolio | Consumer | Nonresidential | Current | ||
Loans and Allowance for Loan Losses | ||
Financing receivables | $ 24 | $ 25 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Troubled debt restructurings (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) contract | Dec. 31, 2021 USD ($) contract | |
Loans and Allowance for Loan Losses - Troubled debt restructurings | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 742 | |
Post-Modification Outstanding Recorded Investment | 742 | |
Recorded investment in troubled debt restructurings | $ 830 | $ 92 |
Commercial | Real Estate | ||
Loans and Allowance for Loan Losses - Troubled debt restructurings | ||
Number of Contracts | contract | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 742 | |
Post-Modification Outstanding Recorded Investment | $ 742 |
Other Real Estate Owned (Detail
Other Real Estate Owned (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Real Estate Owned | ||
Other real estate owned | $ 0 | $ 0 |
Other real estate owned, disposals | 0 | 3,900,000 |
Gain on sale of other real estate owned | 0 | 236,000 |
Impairment charges | 0 | 0 |
Residential | ||
Other Real Estate Owned | ||
Other real estate owned | 0 | 0 |
Consumer | Residential | ||
Other Real Estate Owned | ||
Other real estate owned | $ 0 | $ 0 |
Goodwill and Intangibles - Amor
Goodwill and Intangibles - Amortizable intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Finite-lived Intangible Assets [Roll Forward] | ||
Gross Carrying Amount, beginning period | $ 2,154 | $ 2,154 |
Gross Carrying Amount, ending period | 2,154 | 2,154 |
Amortization during the period | 262 | 305 |
Accumulated Amortization, beginning period | 1,259 | 954 |
Accumulated Amortization, ending period | 1,521 | 1,259 |
1st Commonwealth | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross Carrying Amount, beginning period | 204 | 204 |
Gross Carrying Amount, ending period | 204 | 204 |
Amortization during the period | 19 | 20 |
Accumulated Amortization, beginning period | 185 | 165 |
Accumulated Amortization, ending period | 204 | 185 |
Colombo | ||
Finite-lived Intangible Assets [Roll Forward] | ||
Gross Carrying Amount, beginning period | 1,950 | 1,950 |
Gross Carrying Amount, ending period | 1,950 | 1,950 |
Amortization during the period | 243 | 285 |
Accumulated Amortization, beginning period | 1,074 | 789 |
Accumulated Amortization, ending period | $ 1,317 | $ 1,074 |
Goodwill and Intangibles - Esti
Goodwill and Intangibles - Estimated amortization expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization during the period | $ 262 | $ 305 |
Estimated amortization expense | ||
2023 | 205 | |
2024 | 165 | |
2025 | 125 | |
2026 | 85 | |
2027 | 45 | |
Thereafter | 8 | |
Finite-lived intangible assets, total | $ 633 |
Goodwill and Intangibles - Carr
Goodwill and Intangibles - Carrying amount of goodwill (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Carrying amount of goodwill | |
Beginning balance | $ 7,157 |
Ending balance | $ 7,157 |
Premises, Equipment, and Leas_3
Premises, Equipment, and Leases - Summary (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Premises and Equipment | ||
Premises and equipment, gross | $ 8,851 | $ 8,781 |
Less: accumulated depreciation | 7,631 | 7,197 |
Premises and equipment, net | 1,220 | 1,584 |
Leasehold improvements | ||
Premises and Equipment | ||
Premises and equipment, gross | 3,068 | 3,039 |
Furniture, fixtures and equipment | ||
Premises and Equipment | ||
Premises and equipment, gross | 4,310 | 4,163 |
Computer software | ||
Premises and Equipment | ||
Premises and equipment, gross | 1,169 | 1,275 |
Land | ||
Premises and Equipment | ||
Premises and equipment, gross | 61 | 61 |
Buildings | ||
Premises and Equipment | ||
Premises and equipment, gross | 196 | 196 |
Vehicles | ||
Premises and Equipment | ||
Premises and equipment, gross | $ 47 | $ 47 |
Premises, Equipment, and Leas_4
Premises, Equipment, and Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 424 | $ 555 |
Premises, Equipment, and Leas_5
Premises, Equipment, and Leases - Lease Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Abstract] | ||
Operating lease right-of-use assets | $ 9,680 | $ 10,167 |
Lease liability | $ 10,394 | $ 11,111 |
Weighted Average Remaining Lease Term (Years) | 7 years 10 months 24 days | 8 years 10 months 24 days |
Weighted Average discount rate | 0.0321% | 0.032% |
Premises, Equipment, and Leas_6
Premises, Equipment, and Leases - Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Operating Lease Expense | $ 1,504 | $ 1,626 |
Cash paid for amounts included in lease liabilities | 1,541 | 1,559 |
Modification of right-of-use assets and lease liability | 283 | 0 |
Right-of-use assets obtained in the exchange for lease liabilities during the current period | $ 522 | $ 207 |
Premises, Equipment, and Leas_7
Premises, Equipment, and Leases - Maturity Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule of undiscounted cash flows | ||
2023 | $ 1,780 | |
2024 | 1,734 | |
2025 | 1,581 | |
2026 | 1,486 | |
2027 | 1,355 | |
Thereafter | 3,860 | |
Total | 11,796 | |
Less: discount | (1,402) | |
Operating lease liabilities | $ 10,394 | $ 11,111 |
Deposits (Details)
Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) customer | Dec. 31, 2021 USD ($) customer |
Maturities on certificates of deposits | ||
2023 | $ 413,617 | |
2024 | 18,107 | |
2025 | 48,284 | |
2026 | 11,086 | |
2027 | 17,315 | |
Thereafter | 4 | |
Total time deposits | 508,413 | $ 231,417 |
Time deposits of $250,000 and greater | $ 159,500 | $ 89,700 |
Customer relationships, balance on deposit exceeded 5% of outstanding deposits | customer | 1 | 1 |
Customer relationships deposits to outstanding deposits (in percent) | 9% | 17% |
Brokered deposits | $ 248,000 | $ 35,000 |
Other Borrowed Funds - Other bo
Other Borrowed Funds - Other borrowed funds (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Federal Funds Purchased | ||
Balance Outstanding at December 31, | $ 30,000 | $ 0 |
Maximum balance at any month end during the year | 115,000 | 0 |
Average balance for the year | $ 22,164 | $ 22 |
Weighted average rate on borrowings for the year ended | 3.11% | 0.20% |
FHLB Advances | ||
Balance Outstanding at December 31, | $ 235,000 | $ 25,000 |
Maximum balance at any month end during the year | 235,000 | 25,000 |
Average balance for the year | $ 48,134 | $ 25,000 |
Weighted average rate on borrowings for the year ended | 2.60% | 1.39% |
Subordinated Debt, net | ||
Balance Outstanding at December 31, | $ 19,565 | $ 19,510 |
Maximum balance at any month end during the year | 19,565 | 44,167 |
Average balance for the year | $ 19,535 | $ 37,856 |
Weighted average rate on borrowings for the year ended | 5.28% | 6.69% |
Other Borrowed Funds (Details)
Other Borrowed Funds (Details) - USD ($) | 12 Months Ended | |||
Oct. 13, 2020 | Dec. 31, 2022 | Dec. 31, 2021 | Jun. 20, 2016 | |
Other Borrowed Funds | ||||
FHLB advances | $ 235,000,000 | $ 25,000,000 | ||
FHLB advances outstanding maturing during the next quarter | 200,000,000 | |||
FHLB advances outstanding maturing in one year | 35,000,000 | |||
Remaining amount of available line of credit | 584,700,000 | |||
Remaining lendable collateral value | 138,500,000 | |||
Line of credit borrowing capacity | 265,000,000 | 265,000,000 | ||
Amount of advances from correspondent bank | 30,000,000 | 0 | ||
Repayments of debt | $ 1,250,000 | 23,813,000 | ||
Subordinated Notes | ||||
Other Borrowed Funds | ||||
Face amount | $ 25,000,000 | |||
Interest rate | 6% | |||
Redemption price percentage of outstanding principal amount | 100% | |||
Principal amount redeemed | 23,800,000 | |||
Remaining principal amount yet to be redeemed | $ 1,200,000 | |||
Subordinated Notes | Minimum | ||||
Other Borrowed Funds | ||||
Notice period for redeem the subordinated notes | 30 days | |||
Subordinated Notes | Maximum | ||||
Other Borrowed Funds | ||||
Notice period for redeem the subordinated notes | 60 days | |||
Subordinated Notes | LIBOR | ||||
Other Borrowed Funds | ||||
Variable interest rate (as a percent) | 4.87% | |||
Subordinated Notes due 2030 | ||||
Other Borrowed Funds | ||||
Face amount | $ 20,000,000 | |||
Interest rate | 4.875% | |||
Term for fixed interest rate | 5 years | |||
Subordinated Notes due 2030 | 3-month SOFR | ||||
Other Borrowed Funds | ||||
Variable interest rate (as a percent) | 4.71% | |||
Subordinated debt due June 30, 2021 | ||||
Other Borrowed Funds | ||||
Repayments of debt | $ 25,000,000 | |||
1-4 family residential loans | ||||
Other Borrowed Funds | ||||
Book value of loans pledged against available line of credit | $ 168,800,000 | |||
Multi-family residential loans | ||||
Other Borrowed Funds | ||||
Book value of loans pledged against available line of credit | 43,000,000 | |||
Home equity lines of credit | ||||
Other Borrowed Funds | ||||
Book value of loans pledged against available line of credit | 6,100,000 | |||
Commercial real estate loans | ||||
Other Borrowed Funds | ||||
Book value of loans pledged against available line of credit | $ 155,700,000 |
Income Taxes - Deferred tax ass
Income Taxes - Deferred tax assets and deferred tax liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Tax Assets: | ||
Allowance for loan losses | $ 3,698 | $ 3,131 |
Net operating loss carryforward – federal and state | 2,466 | 2,785 |
Bank premises and equipment | 265 | 184 |
Nonqualified stock options and restricted stock | 658 | 611 |
Organizational and start-up expenses | 10 | 22 |
Acquisition accounting adjustments | 257 | 258 |
Non-accrual loan interest | 59 | 24 |
Deferred loan costs | 60 | 801 |
Lease liability | 2,396 | 2,516 |
Unrealized loss on securities available for sale | 11,876 | 582 |
Unrealized loss on interest rate swap | 0 | 17 |
Total deferred tax assets | 21,745 | 10,931 |
Deferred Tax Liabilities: | ||
Right-of-use assets | (2,232) | (2,302) |
Unrealized gain on interest rate swap | (980) | 0 |
Total deferred tax liabilities | (3,212) | (2,302) |
Net Deferred Tax Assets | $ 18,533 | $ 8,629 |
Income Taxes - Charged to opera
Income Taxes - Charged to operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current tax expense | $ 5,610 | $ 5,269 |
Deferred tax expense | 395 | 1,007 |
Total income tax expense (benefit) | $ 6,005 | $ 6,276 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of income tax expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Computed "expected" tax expense | $ 6,313 | $ 5,924 |
Increase (decrease) in income taxes resulting from: | ||
State income tax expense | 503 | 472 |
Non-deductible expense | 138 | 231 |
Tax free income | (259) | (217) |
Tax benefits from exercise of stock options | (364) | (163) |
Other | (326) | 29 |
Total income tax expense (benefit) | $ 6,005 | $ 6,276 |
Income Taxes - Net operating lo
Income Taxes - Net operating loss carryforwards (Details) - Internal Revenue Code - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Income Taxes | ||
Net operating loss carryforwards | $ 10,100 | |
Net operating loss carryforwards taxable income | $ 762 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) agreement | Dec. 31, 2021 USD ($) agreement | |
Swap agreements | ||
Derivative Financial Instruments | ||
Number of swap agreements outstanding not included in the offsetting | agreement | 15 | 19 |
Notional Amount | $ 145,000 | $ 60,000 |
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Derivative asset, Fair Value | (4,260) | (6,052) |
Swap agreements | Asset Pledged as Collateral | ||
Derivative Financial Instruments | ||
Cash | 30 | 6,700 |
Receive Fixed/Pay Variable Swaps | ||
Derivative Financial Instruments | ||
Notional Amount | 74,178 | 80,643 |
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Pay Fixed/Receive Variable Swaps | ||
Derivative Financial Instruments | ||
Notional Amount | 74,178 | 80,643 |
Derivative asset, Fair Value | $ (4,260) | $ (6,052) |
Derivative Financial Instrume_4
Derivative Financial Instruments - Interest Rate Risk Management-Cash Flow Hedging Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Derivative Financial Instruments | ||
Unrealized gain/(loss) relating to interest rate swaps | $ 4,328 | $ 677 |
Swap agreements | ||
Derivative Financial Instruments | ||
Notional amount | $ 145,000 | $ 60,000 |
Weighted average pay rate | 2.12% | 0.87% |
Weighted average receive rate | 4.74% | 0.21% |
Weighted average maturity in years | 3 years 5 months 26 days | 1 year 1 month 6 days |
Unrealized gain/(loss) relating to interest rate swaps | $ 4,251 | $ (77) |
Financial Instruments with Of_3
Financial Instruments with Off-Balance Sheet Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financial Instruments with Off-Balance Sheet Risk | ||
Cash on deposit in correspondent banks exceeding the federally insured limits | $ 1,400 | $ 32,800 |
Commitments to grant loans | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | 135,441 | 90,591 |
Unused commitments to fund loans and lines of credit | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | 235,617 | 183,145 |
Commercial and standby letters of credit | Contract credit risk | ||
Financial Instruments with Off-Balance Sheet Risk | ||
Financial instruments outstanding | $ 6,503 | $ 8,930 |
Letters of credit expiration period (in years) | 1 year |
Minimum Regulatory Capital Re_3
Minimum Regulatory Capital Requirements (Details) - FVC bank $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total risk-based capital, actual amount | $ 256,898 | $ 222,871 |
Total risk-based capital, actual ratio | 0.1328 | 0.1354 |
Total risk-based capital, minimum capital requirement, amount | $ 203,113 | $ 177,069 |
Total risk-based capital, minimum capital requirement, ratio | 0.1050 | 0.1050 |
Total risk-based capital, minimum to be well capitalized under prompt corrective action, amount | $ 193,441 | $ 168,638 |
Total risk-based capital, minimum to be well capitalized under prompt corrective action, ratio | 0.1000 | 0.1000 |
Tier 1 risk-based capital, actual amount | $ 240,858 | $ 214,442 |
Tier 1 risk-based capital, actual ratio | 0.1245 | 0.1272 |
Tier 1 risk-based capital, minimum capital requirement, amount | $ 164,425 | $ 143,342 |
Tier 1 risk-based capital, minimum capital requirement, ratio | 8.50% | 8.50% |
Tier 1 risk-based capital, minimum to be well capitalized under prompt corrective action, amount | $ 154,753 | $ 134,910 |
Tier 1 risk-based capital, minimum to be well capitalized under prompt corrective action, ratio | 0.0800 | 0.0800 |
Common equity tier 1 capital, actual amount | $ 240,858 | $ 214,442 |
Common equity tier 1 capital, actual ratio | 0.1245 | 0.1272 |
Common equity tier 1 capital, minimum capital requirement, amount | $ 135,409 | $ 118,046 |
Common equity tier 1 capital, minimum capital requirement, ratio | 0.0700 | 0.0700 |
Common equity tier 1 capital, minimum to be well capitalized under prompt corrective action, amount | $ 125,737 | $ 109,614 |
Common equity tier 1 capital, minimum to be well capitalized under prompt corrective action, ratio | 0.0650 | 0.0650 |
Leverage capital ratio, actual, amount | $ 240,858 | $ 214,442 |
Leverage capital ratio, actual, ratio | 0.1075 | 0.1055 |
Leverage capital ratio, minimum capital requirement, amount | $ 87,894 | $ 81,712 |
Leverage capital ratio, minimum capital requirement, ratio | 0.0400 | 0.0400 |
Leverage capital ratio, minimum to be well capitalized under prompt corrective action, amount | $ 109,867 | $ 102,140 |
Leverage capital ratio, minimum to be well capitalized under prompt corrective action, ratio | 0.0500 | 0.0500 |
Retained earnings available to pay dividends | $ 44,700 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions | ||
Related party deposits | $ 38.4 | $ 31.7 |
Officers, directors and their affiliates | ||
Related Party Transactions | ||
Borrowings | 37.9 | 19.5 |
Principle additions | 19.9 | 9 |
Principle payments | $ 1.5 | $ 3.8 |
Stock-Based Compensation Plan_2
Stock-Based Compensation Plan (Details) - shares | 1 Months Ended | 12 Months Ended | |
Jun. 30, 2018 | Dec. 31, 2022 | Dec. 31, 2021 | |
Stock-Based Compensation Plan | |||
Number of shares withheld to cover the cost of the exercise (in shares) | 4,772 | 0 | |
Amended and Restated 2008 Option Plan | Stock option | |||
Stock-Based Compensation Plan | |||
Additional shares authorized for issuance (in shares) | 200,000 | ||
Maximum shares authorized (in shares) | 2,929,296 | ||
Vesting period (in years) | 4 years | ||
Contractual term (in years) | 10 years | ||
Shares available for grant (in shares) | 157,263 | ||
Options granted (in shares) | 0 | 0 |
Stock-Based Compensation Plan -
Stock-Based Compensation Plan - Options (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Additional disclosures | ||
Compensation cost | $ 1,200,000 | $ 1,000,000 |
Stock option | ||
Additional disclosures | ||
Total income tax benefits related to stock options exercised | $ 364,000 | $ 163,000 |
Amended and Restated 2008 Option Plan | Stock option | ||
Shares | ||
Outstanding at the beginning of the year (in shares) | 1,931,059 | |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | (309,018) | |
Forfeited or expired (in shares) | (121) | |
Outstanding at the end of the year (in shares) | 1,621,920 | 1,931,059 |
Exercisable at the end of the year (in shares) | 1,621,920 | |
Weighted-Average Exercise Price | ||
Outstanding at the beginning of the year (in dollars per share) | $ 6.65 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 5.74 | |
Forfeited or expired (in dollars per share) | 6.85 | |
Outstanding at the end of the year (in dollars per share) | 6.82 | $ 6.65 |
Exercisable at the end of the year (in dollars per share) | $ 6.82 | |
Additional disclosures | ||
Outstanding Weighted-Average Remaining Contractual Term (in years) | 2 years 5 months 15 days | |
Exercisable Weighted-Average Remaining Contractual Term (in years) | 1 year 9 months 21 days | |
Outstanding Aggregate Intrinsic Value | $ 0 | |
Exercisable Aggregate Intrinsic Value | $ 13,681,905 |
Stock-Based Compensation Plan_3
Stock-Based Compensation Plan - Restricted stock (Details) - Restricted stock $ / shares in Units, $ in Millions | 12 Months Ended |
Dec. 31, 2022 USD ($) $ / shares shares | |
Weighted Average Grant Date Fair Value | |
Unrecognized compensation cost | $ | $ 3.2 |
Weighted-average recognition period (in months) | 36 months |
Amended and Restated 2008 Option Plan | |
Number of Shares | |
Balance at the beginning of the year (in shares) | shares | 189,240 |
Granted (in shares) | shares | 155,399 |
Vested (in shares) | shares | (58,401) |
Forfeited (in shares) | shares | (7,993) |
Balance at the end of the year (in shares) | shares | 278,245 |
Weighted Average Grant Date Fair Value | |
Outstanding at the beginning of the year (in dollars per share) | $ / shares | $ 14.34 |
Granted (in dollars per share) | $ / shares | 14.95 |
Vested (in dollars per share) | $ / shares | 14.53 |
Forfeited (in dollars per share) | $ / shares | 14.59 |
Outstanding at the end of the year (in dollars per share) | $ / shares | $ 14.63 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial assets and liabilities measured at fair value on a recurring basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Securities available-for-sale, at fair value | $ 278,069 | $ 357,612 |
Cash flow hedge | ||
Assets | ||
Derivative assets | 4,251 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 77 | |
Interest rate swaps | ||
Assets | ||
Derivative assets | 4,260 | 6,052 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Securities of U.S. government and federal agencies | ||
Assets | ||
Securities available-for-sale, at fair value | 11,004 | 13,274 |
Securities of state and local municipalities tax exempt | ||
Assets | ||
Securities available-for-sale, at fair value | 1,376 | 1,451 |
Securities of state and local municipalities taxable | ||
Assets | ||
Securities available-for-sale, at fair value | 444 | 596 |
Corporate bonds | ||
Assets | ||
Securities available-for-sale, at fair value | 19,058 | 14,151 |
SBA pass-through securities | ||
Assets | ||
Securities available-for-sale, at fair value | 67 | 108 |
Mortgage-backed securities | ||
Assets | ||
Securities available-for-sale, at fair value | 237,434 | 313,838 |
Collateralized mortgage obligations | ||
Assets | ||
Securities available-for-sale, at fair value | 8,686 | 14,194 |
Level 1 | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Level 1 | Cash flow hedge | ||
Assets | ||
Derivative assets | 0 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | |
Level 1 | Interest rate swaps | ||
Assets | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | 0 |
Level 2 | ||
Assets | ||
Securities available-for-sale, at fair value | 278,069 | 357,774 |
Level 2 | Cash flow hedge | ||
Assets | ||
Derivative assets | 4,251 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 77 | |
Level 2 | Interest rate swaps | ||
Assets | ||
Derivative assets | 4,260 | 6,052 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Level 3 | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Level 3 | Cash flow hedge | ||
Assets | ||
Derivative assets | 0 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | |
Level 3 | Interest rate swaps | ||
Assets | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | 0 |
Recurring | ||
Assets | ||
Securities available-for-sale, at fair value | 278,069 | 357,774 |
Recurring | Securities of U.S. government and federal agencies | ||
Assets | ||
Securities available-for-sale, at fair value | 11,004 | 13,436 |
Recurring | Securities of state and local municipalities tax exempt | ||
Assets | ||
Securities available-for-sale, at fair value | 1,376 | 1,451 |
Recurring | Securities of state and local municipalities taxable | ||
Assets | ||
Securities available-for-sale, at fair value | 444 | 596 |
Recurring | Corporate bonds | ||
Assets | ||
Securities available-for-sale, at fair value | 19,058 | 14,151 |
Recurring | SBA pass-through securities | ||
Assets | ||
Securities available-for-sale, at fair value | 67 | 108 |
Recurring | Mortgage-backed securities | ||
Assets | ||
Securities available-for-sale, at fair value | 237,434 | 313,838 |
Recurring | Collateralized mortgage obligations | ||
Assets | ||
Securities available-for-sale, at fair value | 8,686 | 14,194 |
Recurring | Level 1 | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | Securities of U.S. government and federal agencies | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | Securities of state and local municipalities tax exempt | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | Securities of state and local municipalities taxable | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | Corporate bonds | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | SBA pass-through securities | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | Mortgage-backed securities | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 1 | Collateralized mortgage obligations | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 2 | ||
Assets | ||
Securities available-for-sale, at fair value | 278,069 | 357,774 |
Recurring | Level 2 | Securities of U.S. government and federal agencies | ||
Assets | ||
Securities available-for-sale, at fair value | 11,004 | 13,436 |
Recurring | Level 2 | Securities of state and local municipalities tax exempt | ||
Assets | ||
Securities available-for-sale, at fair value | 1,376 | 1,451 |
Recurring | Level 2 | Securities of state and local municipalities taxable | ||
Assets | ||
Securities available-for-sale, at fair value | 444 | 596 |
Recurring | Level 2 | Corporate bonds | ||
Assets | ||
Securities available-for-sale, at fair value | 19,058 | 14,151 |
Recurring | Level 2 | SBA pass-through securities | ||
Assets | ||
Securities available-for-sale, at fair value | 67 | 108 |
Recurring | Level 2 | Mortgage-backed securities | ||
Assets | ||
Securities available-for-sale, at fair value | 237,434 | 313,838 |
Recurring | Level 2 | Collateralized mortgage obligations | ||
Assets | ||
Securities available-for-sale, at fair value | 8,686 | 14,194 |
Recurring | Level 3 | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | Securities of U.S. government and federal agencies | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | Securities of state and local municipalities tax exempt | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | Securities of state and local municipalities taxable | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | Corporate bonds | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | SBA pass-through securities | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | Mortgage-backed securities | ||
Assets | ||
Securities available-for-sale, at fair value | 0 | 0 |
Recurring | Level 3 | Collateralized mortgage obligations | ||
Assets | ||
Securities available-for-sale, at fair value | $ 0 | $ 0 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets measured at fair value on a nonrecurring basis (Details) - Nonrecurring - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Impaired loans | $ 1,233 | $ 1,585 |
Commercial and industrial | ||
Assets | ||
Impaired loans | 1,233 | 1,497 |
Residential | ||
Assets | ||
Impaired loans | 88 | |
Level 1 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 1 | Commercial and industrial | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 1 | Residential | ||
Assets | ||
Impaired loans | 0 | |
Level 2 | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 2 | Commercial and industrial | ||
Assets | ||
Impaired loans | 0 | 0 |
Level 2 | Residential | ||
Assets | ||
Impaired loans | 0 | |
Level 3 | ||
Assets | ||
Impaired loans | 1,233 | 1,585 |
Level 3 | Commercial and industrial | ||
Assets | ||
Impaired loans | $ 1,233 | 1,497 |
Level 3 | Residential | ||
Assets | ||
Impaired loans | $ 88 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative information about Level 3 fair value measurements (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Valuation Technique | Valuation Technique Discounted Appraised Value [Member] | Valuation Technique Discounted Appraised Value [Member] |
Impaired loans, Measurement Input | Measurement Input, Cost to Sell [Member] | Measurement Input, Cost to Sell [Member] |
Avg | Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.0800 | |
Avg | Level 3 | Commercial and industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.0800 | 0.0800 |
Avg | Level 3 | Residential | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.0800 | |
Minimum | Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.08 | |
Minimum | Level 3 | Commercial and industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.08 | 0.08 |
Minimum | Level 3 | Residential | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.08 | |
Maximum | Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.08 | |
Maximum | Level 3 | Commercial and industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.08 | 0.08 |
Maximum | Level 3 | Residential | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans, Range | 0.08 | |
Nonrecurring | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 1,233 | $ 1,585 |
Nonrecurring | Commercial and industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | 1,233 | 1,497 |
Nonrecurring | Residential | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | 88 | |
Nonrecurring | Level 3 | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | 1,233 | 1,585 |
Nonrecurring | Level 3 | Commercial and industrial | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 1,233 | 1,497 |
Nonrecurring | Level 3 | Residential | ||
Quantitative information about Level 3 Fair Value Measurements | ||
Impaired loans | $ 88 |
Fair Value Measurements - Carry
Fair Value Measurements - Carrying amount, fair value and placement in the fair value hierarchy of financial instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial assets: | ||
Cash and due from banks | $ 7,253 | $ 24,613 |
Interest-bearing deposits at other institutions | 74,300 | 216,345 |
Securities available-for-sale | 278,069 | 357,612 |
Restricted stock | 15,612 | 6,372 |
Loans, net | 1,824,394 | 1,490,020 |
Bank owned life insurance | 55,371 | 39,171 |
Accrued interest receivable | 9,435 | 8,074 |
Financial liabilities: | ||
Time deposits | 508,413 | 231,417 |
Fed Funds Purchased | 30,000 | 0 |
FHLB advances | 235,000 | 25,000 |
Subordinated notes | 19,565 | 19,510 |
Accrued interest payable | 1,269 | 1,034 |
Cash flow hedge | ||
Financial assets: | ||
Derivative assets | 4,251 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 77 | |
Swap agreements | ||
Financial assets: | ||
Derivative assets | 4,260 | 6,052 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 7,253 | 24,613 |
Interest-bearing deposits at other institutions | 74,300 | 216,345 |
Securities held-to-maturity | 264 | 264 |
Securities available-for-sale | 278,069 | 357,774 |
Restricted stock | 15,612 | 6,372 |
Loans, net | 1,824,394 | 1,490,020 |
Bank owned life insurance | 55,371 | 39,171 |
Accrued interest receivable | 9,435 | 8,074 |
Financial liabilities: | ||
Checking, savings and money market accounts | 1,321,749 | 1,652,352 |
Time deposits | 508,413 | 231,417 |
Fed Funds Purchased | 30,000 | |
FHLB advances | 235,000 | 25,000 |
Subordinated notes | 19,565 | 19,510 |
Accrued interest payable | 1,269 | 1,034 |
Carrying Amount | Cash flow hedge | ||
Financial assets: | ||
Derivative assets | 4,251 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 77 | |
Carrying Amount | Swap agreements | ||
Financial assets: | ||
Derivative assets | 4,260 | 6,052 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 7,253 | 24,613 |
Interest-bearing deposits at other institutions | 74,300 | 216,345 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Restricted stock | 0 | 0 |
Loans, net | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Checking, savings and money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Fed Funds Purchased | 0 | |
FHLB advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 1 | Cash flow hedge | ||
Financial assets: | ||
Derivative assets | 0 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | |
Level 1 | Swap agreements | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits at other institutions | 0 | 0 |
Securities held-to-maturity | 252 | 270 |
Securities available-for-sale | 278,069 | 357,774 |
Restricted stock | 15,612 | 6,372 |
Loans, net | 0 | 0 |
Bank owned life insurance | 55,371 | 39,171 |
Accrued interest receivable | 9,435 | 8,074 |
Financial liabilities: | ||
Checking, savings and money market accounts | 1,321,749 | 1,652,352 |
Time deposits | 510,754 | 232,837 |
Fed Funds Purchased | 30,000 | |
FHLB advances | 235,000 | 25,000 |
Subordinated notes | 18,856 | 18,133 |
Accrued interest payable | 1,269 | 1,034 |
Level 2 | Cash flow hedge | ||
Financial assets: | ||
Derivative assets | 4,251 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 77 | |
Level 2 | Swap agreements | ||
Financial assets: | ||
Derivative assets | 4,260 | 6,052 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 4,260 | 6,052 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits at other institutions | 0 | 0 |
Securities held-to-maturity | 0 | 0 |
Securities available-for-sale | 0 | 0 |
Restricted stock | 0 | 0 |
Loans, net | 1,756,984 | 1,493,185 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities: | ||
Checking, savings and money market accounts | 0 | 0 |
Time deposits | 0 | 0 |
Fed Funds Purchased | 0 | |
FHLB advances | 0 | 0 |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Level 3 | Cash flow hedge | ||
Financial assets: | ||
Derivative assets | 0 | |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | 0 | |
Level 3 | Swap agreements | ||
Financial assets: | ||
Derivative assets | 0 | 0 |
Financial liabilities: | ||
Derivative liabilties - interest rate swaps | $ 0 | $ 0 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Number of anti-dilutive shares excluded from the calculation (in shares) | 0 | 0 |
Net income | $ 24,984 | $ 21,933 |
Weighted average shares - basic (in shares) | 17,431 | 17,062 |
Effect of dilutive securities (in shares) | 1,053 | 1,165 |
Weighted average shares - diluted (in shares) | 18,484 | 18,227 |
Basic EPS (in dollars per share) | $ 1.43 | $ 1.29 |
Diluted EPS (in dollars per share) | $ 1.35 | $ 1.20 |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Supplemental Disclosure of Cash Flow Information: | ||
Interest on deposits and borrowed funds | $ 15,140 | $ 9,361 |
Income taxes | 6,070 | 4,735 |
Noncash investing and financing activities: | ||
Unrealized loss on securities available-for-sale | (48,958) | (5,630) |
Unrealized gain on interest rate swaps | 4,328 | 677 |
Right-of-use assets obtained in the exchange for lease liabilities during the current period | 522 | 207 |
Modification of right-of-use assets and lease liability | $ 283 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) | 12 Months Ended | |
Dec. 31, 2022 USD ($) component | Dec. 31, 2021 USD ($) component | |
Changes in accumulated other comprehensive income | ||
Net unrealized (losses) gains during the period | $ (34,524,000) | $ (3,869,000) |
Other comprehensive (loss) income, net of tax | (34,524,000) | (3,869,000) |
Reclassifications from accumulated other comprehensive income (loss) related to realized gains (losses) | $ 0 | $ 0 |
Accumulated Other Comprehensive Income (Loss) | ||
Number of securities component of AOCI | component | 2 | 2 |
Changes in accumulated other comprehensive income | ||
Balance, beginning of period | $ (2,043,000) | $ 1,826,000 |
Balance, end of period | (36,567,000) | (2,043,000) |
Available-for- Sale Securities | ||
Changes in accumulated other comprehensive income | ||
Balance, beginning of period | (1,983,000) | 2,421,000 |
Net unrealized (losses) gains during the period | (37,943,000) | (4,404,000) |
Other comprehensive (loss) income, net of tax | (37,943,000) | (4,404,000) |
Balance, end of period | (39,926,000) | (1,983,000) |
Cash Flow Hedges | ||
Changes in accumulated other comprehensive income | ||
Balance, beginning of period | (60,000) | (595,000) |
Net unrealized (losses) gains during the period | 3,419,000 | 535,000 |
Other comprehensive (loss) income, net of tax | 3,419,000 | 535,000 |
Balance, end of period | $ 3,359,000 | $ (60,000) |
Revenue Recognition (Details)
Revenue Recognition (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue Recognition | ||
Noninterest Income (in-scope of Topic 606) | $ 1,432 | $ 1,588 |
Noninterest Income (out-scope of Topic 606) | 1,402 | 2,714 |
Total noninterest income | 2,834 | 4,302 |
Gain on sale of other real estate owned | $ 0 | 236 |
Revenue, practical expedient, incremental cost of obtaining contract | true | |
Other income | ||
Revenue Recognition | ||
Noninterest Income (in-scope of Topic 606) | $ 104 | 191 |
Service Charges on Deposit Accounts | ||
Revenue Recognition | ||
Noninterest Income (in-scope of Topic 606) | 954 | 1,028 |
Fees, Exchange, and Other Service Charges | ||
Revenue Recognition | ||
Noninterest Income (in-scope of Topic 606) | $ 374 | $ 369 |
Parent Company Only Financial_3
Parent Company Only Financial Statements - Balance sheet (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | |||
Securities available-for-sale, at fair value | $ 278,069 | $ 357,612 | |
Other assets | 39,128 | 30,628 | |
Total assets | 2,344,322 | 2,202,924 | |
Liabilities and Stockholders' Equity | |||
Subordinated notes | 19,565 | 19,510 | |
Total liabilities | 2,141,940 | 1,993,128 | |
Total stockholders' equity | 202,382 | 209,796 | $ 189,500 |
Total liabilities and stockholders' equity | 2,344,322 | 2,202,924 | |
Parent Company | Reportable Entity | |||
Assets | |||
Cash and cash equivalents | 531 | 1,882 | |
Securities available-for-sale, at fair value | 991 | 1,005 | |
Investment in subsidiary | 214,382 | 223,043 | |
Other assets | 6,404 | 3,903 | |
Total assets | 222,308 | 229,833 | |
Liabilities and Stockholders' Equity | |||
Subordinated notes | 19,565 | 19,510 | |
Other liabilities | 361 | 527 | |
Total liabilities | 19,926 | 20,037 | |
Total stockholders' equity | 202,382 | 209,796 | |
Total liabilities and stockholders' equity | $ 222,308 | $ 229,833 |
Parent Company Only Financial_4
Parent Company Only Financial Statements - Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income: | ||
Interest on securities available-for-sale | $ 5,959 | $ 3,860 |
Expense: | ||
Interest on subordinated notes | 1,031 | 2,534 |
Salaries and employee benefits | 20,316 | 18,980 |
Occupancy and equipment | 3,252 | 3,290 |
Audit, legal and consulting fees | 1,210 | 1,489 |
Income tax benefit | 6,005 | 6,276 |
Net income | 24,984 | 21,933 |
Parent Company | Reportable Entity | ||
Income: | ||
Interest on securities available-for-sale | 67 | 65 |
Income from minority membership interest | 626 | 0 |
Dividend income | 730 | 20,820 |
Total income | 1,423 | 20,885 |
Expense: | ||
Interest on subordinated notes | 1,031 | 2,534 |
Salaries and employee benefits | 1,192 | 1,021 |
Occupancy and equipment | 80 | 83 |
Audit, legal and consulting fees | 375 | 320 |
Other operating expenses | 194 | 249 |
Total expense | 2,872 | 4,207 |
Net income (loss) before income tax benefit and equity in undistributed earnings of subsidiary | (1,449) | 16,678 |
Income tax benefit | (580) | (879) |
Equity in undistributed earnings of subsidiary | 25,853 | 4,376 |
Net income | $ 24,984 | $ 21,933 |
Parent Company Only Financial_5
Parent Company Only Financial Statements - Statement of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | ||
Net income | $ 24,984 | $ 21,933 |
Amortization of subordinated debt issuance costs | 55 | 488 |
Stock-based compensation expense | 1,200 | 1,000 |
Net cash provided by operating activities | 22,392 | 19,445 |
Cash Flows From Investing Activities | ||
Net cash used in investing activities | (225,831) | (344,338) |
Cash Flows From Financing Activities | ||
Repayment of subordinated notes, net | (1,250) | (23,813) |
Repurchase of shares of common stock | (730) | 0 |
Net cash provided by financing activities | 186,079 | 328,671 |
Net (decrease) increase in cash and cash equivalents | (17,360) | 3,778 |
Cash and cash equivalents, beginning of year | 24,613 | 20,835 |
Cash and cash equivalents, end of year | 7,253 | 24,613 |
Parent Company | Reportable Entity | ||
Cash Flows From Operating Activities | ||
Net income | 24,984 | 21,933 |
Equity in undistributed earnings of subsidiary | (25,853) | (4,376) |
Amortization of subordinated debt issuance costs | 55 | 488 |
Stock-based compensation expense | 1,183 | 1,011 |
Change in other assets and liabilities | (1,413) | (2,598) |
Net cash provided by operating activities | (1,044) | 16,458 |
Cash Flows From Investing Activities | ||
Net cash used in investing activities | 0 | 0 |
Cash Flows From Financing Activities | ||
Repayment of subordinated notes, net | (1,250) | (23,813) |
Repurchase of shares of common stock | (730) | 0 |
Common stock issuance | 1,673 | 1,221 |
Net cash provided by financing activities | (307) | (22,592) |
Net (decrease) increase in cash and cash equivalents | (1,351) | (6,134) |
Cash and cash equivalents, beginning of year | 1,882 | 8,016 |
Cash and cash equivalents, end of year | $ 531 | $ 1,882 |