Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 10, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | CFBI | |
Entity Registrant Name | Community First Bancshares, Inc. | |
Entity Central Index Key | 0001691507 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 7,570,797 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-38074 | |
Entity Tax Identification Number | 82-1147778 | |
Entity Address, Address Line One | 3175 Highway 278 | |
Entity Address, City or Town | Covington | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30014 | |
City Area Code | 770 | |
Local Phone Number | 786-7088 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Entity Incorporation, State or Country Code | X1 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets (un
Consolidated Balance Sheets (unaudited) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks, including reserve requirement of $0 and $1,523 at September 30, 2020 and December 31, 2019, respectively | $ 6,243,000 | $ 3,965,000 |
Interest-earning deposits in other depository institutions | 173,328,000 | 44,152,000 |
Cash and cash equivalents | 179,571,000 | 48,117,000 |
Investment securities available-for-sale | 25,255,000 | 3,818,000 |
Other investments | 2,234,000 | 278,000 |
Loans, net | 624,775,000 | 247,956,000 |
Other real estate owned | 1,294,000 | 140,000 |
Premises and equipment, net | 8,752,000 | 8,513,000 |
Bank owned life insurance | 15,212,000 | 7,462,000 |
Intangible assets | 18,988,000 | |
Accrued interest receivable and other assets | 12,089,000 | 3,010,000 |
Total assets | 888,170,000 | 319,294,000 |
Liabilities: | ||
Savings accounts | 98,251,000 | 22,691,000 |
Interest-bearing checking | 74,113,000 | 47,324,000 |
Market rate checking | 125,831,000 | 33,380,000 |
Non-interest-bearing checking | 175,819,000 | 29,549,000 |
Certificate of deposits | 151,742,000 | 105,237,000 |
Total deposits | 625,756,000 | 238,181,000 |
Federal Home Loan Bank advances | 34,258,000 | 0 |
PPPLF borrowings | 129,964,000 | |
Repurchase agreements and other borrowings | 11,410,000 | |
Accrued interest payable and other liabilities | 7,570,000 | 3,946,000 |
Total liabilities | 808,958,000 | 242,127,000 |
Stockholders' equity: | ||
Common stock (par value $0.01 per share, 19,000,000 shares authorized, 7,684,173 issued and 7,570,797 outstanding at September 30, 2020 and 7,671,224 issued and 7,557,848 outstanding at December 31, 2019) | 77,000 | 77,000 |
Preferred stock (1,000,000 shares authorized, no shares outstanding) | ||
Additional paid in capital | 33,528,000 | 33,358,000 |
Treasury stock, 113,376 shares at September 30, 2020, and December 31, 2019, at cost | (1,268,000) | (1,268,000) |
Unearned ESOP shares | (2,482,000) | (2,571,000) |
Retained earnings | 49,213,000 | 47,562,000 |
Accumulated other comprehensive income | 144,000 | 9,000 |
Total stockholders' equity | 79,212,000 | 77,167,000 |
Total liabilities and stockholders' equity | $ 888,170,000 | $ 319,294,000 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (unaudited) (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Cash and due from banks, reserve requirement | $ 0 | $ 1,523 |
Common stock, par value | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 19,000,000 | 19,000,000 |
Common stock, shares issued | 7,684,173 | 7,671,224 |
Common stock, shares outstanding | 7,570,797 | 7,557,848 |
Preferred stock, shares authorized | 1,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock shares, at cost | 113,376 | 113,376 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest income: | ||||
Loans, including fees | $ 8,526,000 | $ 3,671,000 | $ 22,046,000 | $ 10,464,000 |
Investment securities, including dividends | 109,000 | 63,000 | 392,000 | 332,000 |
Interest-earning deposits | 36,000 | 148,000 | 185,000 | 448,000 |
Total interest income | 8,671,000 | 3,882,000 | 22,623,000 | 11,244,000 |
Interest expense: | ||||
Deposits | 1,163,000 | 579,000 | 3,789,000 | 1,635,000 |
Borrowings | 257,000 | 649,000 | 26,000 | |
Total interest expense | 1,420,000 | 579,000 | 4,438,000 | 1,661,000 |
Net interest income before provision for loan losses | 7,251,000 | 3,303,000 | 18,185,000 | 9,583,000 |
Provision for loan losses | 600,000 | 1,400,000 | ||
Net interest income after provision for loan losses | 6,651,000 | 3,303,000 | 16,785,000 | 9,583,000 |
Non-interest income: | ||||
Service charges on deposit accounts | 351,000 | 260,000 | 1,009,000 | 620,000 |
Gain on sales of investment securities available-for-sale | 147,000 | 20,000 | 147,000 | |
Other | 195,000 | 128,000 | 569,000 | 463,000 |
Total non-interest income | 546,000 | 535,000 | 1,598,000 | 1,230,000 |
Non-interest expenses: | ||||
Salaries and employee benefits | 2,415,000 | 1,861,000 | 8,767,000 | 5,519,000 |
Deferred compensation | 70,000 | 67,000 | 211,000 | 171,000 |
Occupancy | 734,000 | 465,000 | 2,071,000 | 1,421,000 |
Advertising | 40,000 | 37,000 | 173,000 | 104,000 |
Data processing | 523,000 | 748,000 | 1,773,000 | 1,360,000 |
Other real estate owned | 9,000 | 2,000 | 11,000 | 19,000 |
Net loss (gain) on sale and writedown of other real estate owned | 159,000 | (8,000) | 188,000 | (104,000) |
Legal and accounting | 230,000 | 505,000 | 1,196,000 | 1,037,000 |
Organizational dues and subscriptions | 70,000 | 60,000 | 238,000 | 213,000 |
Director compensation | 51,000 | 49,000 | 153,000 | 145,000 |
Federal deposit insurance premiums | 51,000 | 16,000 | 304,000 | 48,000 |
Other | 400,000 | 319,000 | 1,324,000 | 935,000 |
Total non-interest expenses | 4,752,000 | 4,121,000 | 16,409,000 | 10,868,000 |
Income (loss) before income taxes | 2,445,000 | (283,000) | 1,974,000 | (55,000) |
Income tax expense (benefit) | 575,000 | (87,000) | 324,000 | (94,000) |
Net income (loss) | $ 1,870,000 | $ (196,000) | $ 1,650,000 | $ 39,000 |
Basic and diluted earnings (loss) per share | $ 0.25 | $ (0.03) | $ 0.22 | $ 0.01 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 1,870 | $ (196) | $ 1,650 | $ 39 |
Other comprehensive income (loss): | ||||
Net unrealized gain on available-for-sale securities, net of taxes of $(11), $(13), $52 and $195 | (32) | (36) | 150 | 555 |
Reclassification adjustment for gain included in net income, net of taxes of $0, $(38), $(5) and $(38) | (109) | (15) | (109) | |
Total other comprehensive income (loss) | (32) | (145) | 135 | 446 |
Total comprehensive income (loss) | $ 1,838 | $ (341) | $ 1,785 | $ 485 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net unrealized gain on available for sale securities, tax | $ (11) | $ (13) | $ 52 | $ 195 |
Reclassification adjustment from AOCI for sale of securities, tax expense | $ 0 | $ (38) | $ (5) | $ (38) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional Paid In Capital | Treasury Stock | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2018 | $ 76,398 | $ 75 | $ 33,078 | $ (668) | $ (2,689) | $ 47,043 | $ (441) |
ESOP loan payment and release of ESOP shares | 31 | 1 | 30 | ||||
Purchase of treasury stock | (600) | (600) | |||||
Change in unrealized gain on investment securities available-for-sale, net of tax | 373 | 373 | |||||
Net income (loss) | 117 | 117 | |||||
Ending balance at Mar. 31, 2019 | 76,319 | 75 | 33,079 | (1,268) | (2,659) | 47,160 | (68) |
Beginning balance at Dec. 31, 2018 | 76,398 | 75 | 33,078 | (668) | (2,689) | 47,043 | (441) |
Net income (loss) | 39 | ||||||
Ending balance at Sep. 30, 2019 | 76,547 | 77 | 33,251 | (1,268) | (2,600) | 47,082 | 5 |
Beginning balance at Mar. 31, 2019 | 76,319 | 75 | 33,079 | (1,268) | (2,659) | 47,160 | (68) |
ESOP loan payment and release of ESOP shares | 31 | 2 | 29 | ||||
Issuance of restricted stock awards | 45 | 2 | 43 | ||||
Stock based compensation expense | 24 | 24 | |||||
Change in unrealized gain on investment securities available-for-sale, net of tax | 218 | 218 | |||||
Net income (loss) | 118 | 118 | |||||
Ending balance at Jun. 30, 2019 | 76,755 | 77 | 33,148 | (1,268) | (2,630) | 47,278 | 150 |
ESOP loan payment and release of ESOP shares | 30 | 30 | |||||
Stock based compensation expense | 103 | 103 | |||||
Change in unrealized gain on investment securities available-for-sale, net of tax | (145) | (145) | |||||
Net income (loss) | (196) | (196) | |||||
Ending balance at Sep. 30, 2019 | 76,547 | 77 | 33,251 | (1,268) | (2,600) | 47,082 | 5 |
Beginning balance at Dec. 31, 2019 | 77,167 | 77 | 33,358 | (1,268) | (2,571) | 47,562 | 9 |
ESOP loan payment and release of ESOP shares | 30 | 30 | |||||
Stock based compensation expense | (80) | (80) | |||||
Change in unrealized gain on investment securities available-for-sale, net of tax | 121 | 121 | |||||
Net income (loss) | (1,298) | (1,298) | |||||
Ending balance at Mar. 31, 2020 | 75,940 | 77 | 33,278 | (1,268) | (2,541) | 46,264 | 130 |
Beginning balance at Dec. 31, 2019 | 77,167 | 77 | 33,358 | (1,268) | (2,571) | 47,562 | 9 |
Net income (loss) | 1,650 | ||||||
Ending balance at Sep. 30, 2020 | 79,212 | 77 | 33,528 | (1,268) | (2,482) | 49,213 | 144 |
Beginning balance at Mar. 31, 2020 | 75,940 | 77 | 33,278 | (1,268) | (2,541) | 46,264 | 130 |
ESOP loan payment and release of ESOP shares | 21 | (8) | 29 | ||||
Issuance of restricted stock awards | 17 | 1 | 16 | ||||
Stock based compensation expense | 141 | 141 | |||||
Change in unrealized gain on investment securities available-for-sale, net of tax | 46 | 46 | |||||
Net income (loss) | 1,079 | 1,079 | |||||
Ending balance at Jun. 30, 2020 | 77,244 | 78 | 33,427 | (1,268) | (2,512) | 47,343 | 176 |
ESOP loan payment and release of ESOP shares | 20 | (1) | (9) | 30 | |||
Stock based compensation expense | 110 | 110 | |||||
Change in unrealized gain on investment securities available-for-sale, net of tax | (32) | (32) | |||||
Net income (loss) | 1,870 | 1,870 | |||||
Ending balance at Sep. 30, 2020 | $ 79,212 | $ 77 | $ 33,528 | $ (1,268) | $ (2,482) | $ 49,213 | $ 144 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) | 9 Months Ended | |
Sep. 30, 2020USD ($) | Sep. 30, 2019USD ($) | |
Cash flows from operating activities: | ||
Net income | $ 1,650,000 | $ 39,000 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities, net of effects of acquisition: | ||
Depreciation and (accretion) amortization | (463,000) | 689,000 |
Stock-based compensation expense | 188,000 | 173,000 |
Deferred income tax | 0 | (17,000) |
Provision for loan losses | 1,400,000 | 0 |
ESOP expense | 71,000 | 91,000 |
Net gain on sale of investment securities available-for-sale | (20,000) | (147,000) |
Net loss (gain) on sale and writedown of other real estate owned | 188,000 | (104,000) |
Increase in cash surrender value of bank owned life insurance | (299,000) | (159,000) |
Change in: | ||
Accrued interest receivable and other assets | (5,989,000) | 586,000 |
Accrued interest payable and other liabilities | 2,805,000 | (422,000) |
Net cash (used in) provided by operating activities | (469,000) | 729,000 |
Cash flows from investing activities, net of effects of acquisition: | ||
Purchases of investment securities available-for-sale | (11,908,000) | 0 |
Purchases of premises and equipment | (196,000) | (265,000) |
Proceeds from disposal of premises and equipment | 21,000 | 0 |
Proceeds from sale of investment securities available-for-sale | 1,677,000 | 16,360,000 |
Proceeds from paydowns of investment securities available-for-sale | 5,639,000 | 1,370,000 |
Proceeds from maturity of investment securities held-to-maturity | 1,000,000 | |
Purchases of other investments | (1,358,000) | 0 |
Proceeds from sales of other investments | 1,063,000 | 302,000 |
Net change in loans | (116,135,000) | (20,841,000) |
Proceeds from sales of other real estate owned | 129,000 | 612,000 |
Net cash paid in business combination | (22,749,000) | 0 |
Net cash used in investing activities | (143,817,000) | (1,462,000) |
Cash flows from financing activities, net of effects of acquisition: | ||
Net change in deposits | 138,474,000 | 9,875,000 |
Purchase of treasury stock | 0 | (600,000) |
Proceeds from FHLB advances | 45,000,000 | 0 |
Repayment of FHLB advances | (45,000,000) | (7,570,000) |
Proceeds from holding company loan | 5,000,000 | 0 |
Proceeds from Payroll Protection Program Liquidity Facility | 129,909,000 | |
Net change in repurchase agreements and other borrowings | 2,357,000 | 0 |
Net cash provided by financing activities | 275,740,000 | 1,705,000 |
Net change in cash and cash equivalents | 131,454,000 | 972,000 |
Cash and cash equivalents at beginning of period | 48,117,000 | 37,029,000 |
Cash and cash equivalents at end of period | 179,571,000 | 38,001,000 |
Supplemental disclosures of cash flow information: | ||
Cash paid for interest | 4,138,000 | 1,669,000 |
Vacant land transferred to other real estate owned | 460,000 | 0 |
Other real estate owned acquired through foreclosure | 221,000 | 140,000 |
Fair value of assets acquired | 317,744,000 | 0 |
Fair value of liabilities assumed | 288,732,000 | 0 |
Net assets acquired | $ 29,012,000 | $ 0 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | (1) Basis of Presentation Community First Bancshares, Inc. (the “Company”) is a savings and loan holding company headquartered in Covington, Georgia. The Company has one operating subsidiary, Newton Federal Bank (the “Bank”), a federally chartered savings association, conducting banking activities in Newton County, Georgia and surrounding counties and in Cobb, Jackson and Fulton County, Georgia and surrounding counties, and originating dental practice loans and indirect automobile loans throughout the Southeastern United States. The Bank offers such customary banking services as consumer and commercial checking accounts, savings accounts, certificates of deposit, mortgage, commercial and consumer loans, including indirect automobile loans, money transfers and a variety of other banking services. The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the financial position of the Company as of September 30, 2020 and the results of its operations and its cash flows for the periods presented. The interim consolidated financial information should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for a full year or for any other period. Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of acquired loans, the valuation of other real estate acquired in connection with foreclosure or in satisfaction of loans and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income. Summary of Significant Accounting Policies – The accounting and reporting policies of the Company conform to GAAP and general practices within the banking industry. There have been no material changes or developments in the application of principles or in our evaluation of the accounting estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting Policies as disclosed in the Company’s financial statements for the year ended December 31, 2019 included in the Company’s Form 10-K. Net earnings (loss) per share is calculated for the period that the Company’s shares of common stock were outstanding which includes the current period and the same period in the previous year. The net income for the quarter ended September 30, 2020 was $1.9 million and the weighted average common shares outstanding were 7,570,797. The net loss for the same quarter last year was $196,000 and the weighted average common shares outstanding were 7,557,848. The net income for the nine months ended September 30, 2020 was $1.7 million and the weighted average common shares outstanding were 7,547,363. The net income for the nine months ended September 30, 2019 was $39,000 and the weighted average common shares outstanding were 7,504,891. The COVID-19 pandemic has disrupted and adversely affected the Company’s business and results of operations, and the ultimate impacts of the pandemic on the Company’s business, financial condition and results of operations will depend on future developments and other factors that are highly uncertain and will be impacted by the scope and duration of the pandemic and actions taken by governmental authorities in response to the pandemic. The Bank received Small Business Administration (“SBA”) authorization for 1,171 Paycheck Protection Program (“PPP”) loans totaling $130.3 million. In addition, the Bank has granted short-term deferrals on 770 loans totaling $192.7 million that were otherwise performing. Of these loans, 365 totaling $72.1 million have returned to normal performing status as of September 30, 2020. We have not granted any extensions for deferral periods. Recent Accounting Pronouncements There have been no pronouncements issued during the quarter that would have a material impact on the Company's financial statements. |
Acquisition
Acquisition | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Acquisition | (2) Acquisition On January 10, 2020, the Company consummated its merger with ABB Financial Group, Inc. (“ABB”) pursuant to the Agreement and Plan of Merger by and between the Company and ABB dated August 19, 2019, (the “Merger Agreement”), whereby ABB was merged with and into the Company, and Affinity Bank, ABB’s wholly owned commercial bank subsidiary serving Cobb County, Georgia and Fulton County, Georgia and surrounding counties, was merged with and into Newton Federal Bank. System integration was completed September 18 th The purpose of the merger was for strategic reasons beneficial to the Company. The acquisition is consistent with its plan to drive growth and efficiency through increased scale, leverage the strengths of each bank across the combined customer base, enhance profitability, and add shareholder value. Under the terms of the Merger Agreement, each outstanding share of ABB common stock was converted into the right to receive $7.50 in cash, for a total paid of $40.3 million in cash with no stock issued. Pre-existing ABB equity awards (restricted stock units and stock options) immediately vested upon consummation of the merger. The Company paid $2.7 million reflecting the net value for the vested ABB restricted stock outstanding at the consummation of the merger. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of ABB prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of core deposit intangibles, securities, premises and equipment, loans, other real estate owned, bank owned life insurance and other assets, deposits, debt and deferred taxes with the assistance of third-party valuations, appraisals, and third-party advisors. The estimated fair values will be subject to refinement as additional information relative to the closing date fair values becomes available through the measurement period of approximately one year from consummation. The fair value of the assets acquired and liabilities assumed on January 10, 2020 was as follows: As recorded by Fair Value As recorded by ABB Adjustments CFBI (in thousands) Cash, cash equivalents and securities available-for-sale $ 41,561 $ — $ 41,561 Loans 264,176 (2,327 ) 261,849 Other real estate owned 790 — 790 Core deposit intangible — 1,913 1,913 Fixed assets and other assets 11,629 — 11,629 Total assets acquired 318,156 (414 ) 317,742 Deposits 249,049 265 249,314 Borrowings and other liabilities 37,764 1,654 39,418 Total liabilities acquired 286,813 1,919 288,732 Excess of assets acquired over liabilities acquired 31,343 (2,333 ) 29,010 Purchase price 40,338 Net assets acquired 29,010 Less preferred stock redeemed (5,891 ) Net assets acquired less preferred stock 23,119 Goodwill $ 17,219 The following unaudited pro forma information presents the results of operations for nine months ended September 30, 2020 and 2019, as if the acquisition had occurred January 1 of each period. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts. These unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the combined company that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations. Nine Months Ended September 30, 2020 2019 (In thousands except per share data) Total revenues, net of interest expense $ 20,083 $ 18,489 Net income 591 2,223 Diluted earnings per share 0.08 0.30 |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | (3) Investment Securities Investment securities available-for-sale at September 30, 2020 and December 31, 2019 are as follows: (in thousands) Amortized Gross Unrealized Gross Unrealized Estimated September 30, 2020 Cost Gains Losses Fair Value Government agency securities $ 11,889 $ — $ (51 ) $ 11,838 Government agency mortgage-backed securities 10,455 344 — 10,799 Trust preferred securities 2,717 — (99 ) 2,618 Total $ 25,061 $ 344 $ (150 ) $ 25,255 December 31, 2019 Government agency securities $ 501 $ — $ (1 ) $ 500 Government agency mortgage-backed securities 3,305 13 — 3,318 Total $ 3,806 $ 13 $ (1 ) $ 3,818 There were six securities in an unrealized loss position as of September 30, 2020 for less than 12 months. There were no securities in an unrealized loss position for 12 months or greater as of September 30, 2020. The unrealized losses on the debt securities arose due to changing interest rates and market conditions and are considered to be temporary because of acceptable investment grades and are reviewed regularly. Three of the securities are agency bonds that are direct obligation of the U.S. Government. The other three securities are trust preferred securities where the Bank performs a credit review regularly and such review has raised no concerns. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis which may be at maturity. The amortized cost and estimated fair value of investment securities available-for-sale at September 30, 2020, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands) Amortized Estimated Cost Fair Value Government agency securities Within 1 year $ — $ — Greater than 1 to 5 years 2,000 2,000 Greater than 5 to 10 years — — Greater than 10 years 9,889 9,838 Trust preferred securities Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years 2,217 2,193 Greater than 10 years 500 425 14,606 14,456 Government agency mortgage-backed securities 10,455 10,799 Total $ 25,061 $ 25,255 No securities were sold during the three months ended September 30, 2020. During the nine months ended September 30, 2020, the Company sold Securities with a carrying value of approximately $20.2 million and $3.8 million were |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | (4) Loans and Allowance for Loan Losses Major classifications of loans, by collateral code, at September 30, 2020 and December 31, 2019 are summarized as follows: (in thousands) September 30, 2020 December 31, 2019 Commercial (secured by real estate) $ 183,398 $ 54,488 Commercial and industrial 147,219 28,613 Payroll Protection Program loans 130,348 — Construction, land and acquisition & development 29,704 20,502 Residential mortgage 1-4 family 97,213 116,843 Consumer installment 42,604 31,644 Total 630,486 252,090 Less allowance for loan losses (5,711 ) (4,134 ) Total loans, net $ 624,775 $ 247,956 The Bank grants loans and extensions of credit to individuals and a variety of firms and corporations located primarily in the Atlanta, Georgia Metropolitan Statistical Area. A substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market. In addition, with the acquisition of Affinity Bank, the Bank has become a premier lender within professional markets, with a primary focus on the dental industry in Georgia and adjoining states. The majority of these loans are commercial and industrial credits for practice acquisitions and equipment financing with the remainder being owner-occupied real estate. Qualifying loans in the amount of $214.2 million and $115.4 million were pledged to secure the line of credit from the Federal Home Loan Bank of Atlanta (“FHLB”) at September 30, 2020 and December 31, 2019, respectively. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of and for the nine months ended September 30, 2020 and 2019: (in thousands) September 30, 2020 Commercial (Secured by Real Estate) Commercial and Industrial Construction, Land and Acquisition & Development Residential Mortgage Consumer Installment Unallocated Total Allowance for loan losses: Beginning balance $ 1,661 $ 1,478 $ 153 $ 369 $ 466 $ 7 $ 4,134 Provision 1,317 (839 ) 80 684 161 (3 ) 1,400 Charge-offs (30 ) — — (126 ) (17 ) — (173 ) Recoveries 207 16 — 97 30 — 350 Ending balance $ 3,155 $ 655 $ 233 $ 1,024 $ 640 $ 4 $ 5,711 Ending allowance attributable to loans: Individually evaluated for impairment $ 1 $ — $ — $ 10 $ — $ — $ 11 Collectively evaluated for impairment 3,154 655 233 1,014 640 4 5,700 Total ending allowance $ 3,155 655 233 1,024 640 4 5,711 Loans: Individually evaluated for impairment $ 1,465 $ 979 $ — $ 3,564 $ 26 $ — $ 6,034 Collectively evaluated for impairment 181,933 276,588 29,704 93,649 42,578 — 624,452 Total loans $ 183,398 $ 277,567 $ 29,704 $ 97,213 $ 42,604 $ — $ 630,486 September 30, 2019 Allowance for loan losses: Beginning balance $ 1,619 $ 1,520 $ 108 $ 641 $ 127 $ 7 $ 4,022 Provision (193 ) (150 ) 68 (291 ) 561 5 — Charge-offs — (26 ) — (125 ) (5 ) — (156 ) Recoveries 77 28 — 236 1 — 342 Ending balance $ 1,503 $ 1,372 $ 176 $ 461 $ 684 $ 12 $ 4,208 Ending allowance attributable to loans: Individually evaluated for impairment $ 1 $ — $ — $ 16 $ — $ — $ 17 Collectively evaluated for impairment 1,502 1,372 176 445 684 12 4,191 Total ending allowance $ 1,503 $ 1,372 $ 176 $ 461 $ 684 $ 12 $ 4,208 Loans: Individually evaluated for impairment $ 2,205 $ — $ — $ 3,430 $ — $ — $ 5,635 Collectively evaluated for impairment 53,030 26,609 21,912 119,398 25,749 — 246,698 Total loans $ 55,235 $ 26,609 $ 21,912 $ 122,828 $ 25,749 $ — $ 252,333 The Bank individually evaluates all loans for impairment that are on nonaccrual status or are rated substandard (as described below). Additionally, all troubled debt restructurings are evaluated for impairment. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the contractual terms of the loan will not be collected. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Interest payments received on impaired loans are applied as a reduction of the outstanding principal balance. Impaired loans at September 30, 2020 and December 31, 2019 were as follows: (in thousands) September 30, 2020 Recorded Investment Unpaid Principal Balance Allocated Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial (secured by real estate) $ 110 $ 222 $ — $ 117 $ 5 Commercial and industrial 803 936 — 669 — Construction, land and acquisition & development — — — — — Residential mortgage 2,238 2,238 — 2,329 10 Consumer installment 26 26 — 25 1 3,177 3,422 — 3,140 16 With an allowance recorded: Commercial (secured by real estate) 1,355 1,355 1 1,385 75 Commercial and industrial 176 176 — 88 — Construction, land and acquisition & development — — — — — Residential mortgage 1,326 1,326 10 1,416 43 Consumer installment — — — — — 2,857 2,857 11 2,889 118 Total impaired loans $ 6,034 $ 6,279 $ 10 $ 6,029 $ 134 December 31, 2019 With no related allowance recorded: Commercial (secured by real estate) $ 26 $ 26 $ — $ 40 $ 9 Commercial and industrial 395 527 — 463 29 Construction, land and acquisition & development — — — — — Residential mortgage 3,749 3,878 — 3,912 153 Consumer installment — — — — — 4,170 4,431 — 4,415 191 With an allowance recorded: Commercial (secured by real estate) 1,513 1,513 1 1,539 94 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 412 412 5 405 — Consumer installment — — — — 24 1,925 1,925 6 1,944 118 Total impaired loans $ 6,095 $ 6,356 $ 6 $ 6,359 $ 309 The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of September 30, 2020 and December 31, 2019 by class of loans: (in thousands) September 30, 2020 30 -59 Days Past Due 60- 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Nonaccrual Commercial (secured by real estate) $ 901 $ — $ — $ 901 $ 182,497 $ 183,398 $ 22 Commercial and industrial — 1 395 396 277,171 277,567 979 Construction, land and acquisition & development — — — — 29,704 29,704 — Residential mortgage 423 245 13 681 96,532 97,213 2,684 Consumer installment 31 1 9 41 42,563 42,604 32 Total $ 1,355 $ 247 $ 417 $ 2,019 $ 628,467 $ 630,486 $ 3,717 December 31, 2019 Commercial (secured by real estate) $ 114 $ 24 $ 10 $ 148 $ 54,340 $ 54,488 $ 246 Commercial and industrial 1,270 30 395 1,695 26,918 28,613 395 Construction, land and acquisition & development — — — — 20,502 20,502 — Residential mortgage 3,087 2,040 643 5,770 111,073 116,843 1,912 Consumer installment 58 34 — 92 31,552 31,644 14 Total $ 4,529 $ 2,128 $ 1,048 $ 7,705 $ 244,385 $ 252,090 $ 2,567 There were no loans past due 90 days or greater and still accruing interest as of September 30, 2020 and December 31, 2019. There was one new troubled debt restructuring during the nine months ended September 30, 2020 and no new troubled debt restructurings during the nine months ended September 30, 2019. No troubled debt restructurings subsequently defaulted during the nine months ended September 30, 2020 or 2019. The Bank has allocated an allowance for loan losses of approximately $10,000 and $6,000 to customers whose loan terms have been modified in troubled debt restructurings as of September 30, 2020 and December 31, 2019, respectively. The Bank 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, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Bank uses the following definitions for its risk ratings: Special Mention. Loans have potential weaknesses that may, if not corrected, weaken or inadequately protect the Bank's credit position at some future date. Weaknesses are generally the result of deviation from prudent lending practices, such as over advances on collateral. Credits in this category should, within a 12-month period, move to Pass if improved or drop to Substandard if poor trends continue. Substandard. Inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans have a well-defined weakness or weaknesses such as primary source of repayment is gone or severely impaired or cash flow is insufficient to reduce debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans have the same weaknesses as those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable. The likelihood of a loss on an asset or portion of an asset classified Doubtful is high. Loss. Loans considered uncollectible and of such little value that the continuance as a Bank asset is not warranted. This does not mean that the loan has no recovery or salvage value, but rather the asset should be charged off even though partial recovery may be possible in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of September 30, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands) September 30, 2020 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 182,589 $ 785 $ 24 $ — $ 183,398 Commercial and industrial 276,984 — 583 — 277,567 Construction, land and acquisition & development 29,482 222 — — 29,704 Residential mortgage 93,076 62 4,075 — 97,213 Consumer installment 42,572 — 32 — 42,604 Total $ 624,703 $ 1,069 $ 4,714 $ — $ 630,486 December 31, 2019 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 54,454 $ — $ 34 $ — $ 54,488 Commercial and industrial 28,204 — 409 — 28,613 Construction, land and acquisition & development 20,502 — — — 20,502 Residential mortgage 110,034 229 6,580 — 116,843 Consumer installment 31,626 — 18 — 31,644 Total $ 244,820 $ 229 $ 7,041 $ — $ 252,090 |
Deposits
Deposits | 9 Months Ended |
Sep. 30, 2020 | |
Deposits [Abstract] | |
Deposits | (5) Deposits The aggregate amounts of certificates of deposit greater than $250,000, the standard FDIC deposit insurance coverage limit per depositor, were approximately $33.4 million at September 30, 2020 and $30.2 million at December 31, 2019. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Borrowings | (6) Borrowings The following FHLB advances, which required monthly or quarterly interest payments, were outstanding at September 30, 2020: Advance Date Advance Fair Value Adjustment Interest Rate Maturity Rate Call Feature 5/25/2018 10,000,000 70,417 2.91 % 5/25/2021 Fixed None 5/23/2019 8,000,000 462,694 2.40 % 5/23/2029 Convertible 5/23/2022 12/16/2019 5,000,000 314,759 2.37 % 12/17/2029 Convertible 12/17/2021 11/29/2019 5,000,000 371,352 2.66 % 11/29/2029 Convertible 11/29/2022 7/10/2019 5,000,000 38,845 2.10 % 7/10/2024 Fixed None $ 33,000,000 $ 1,258,067 There were no FHLB advances as of December 31, 2019. At September 30, 2020, the FHLB advances were collateralized by certain loans which totaled approximately $214.2 million at September 30, 2020, and by the Company’s investment in FHLB stock which totaled approximately $2.0 million at September 30, 2020. The Company had one FHLB letter of credit of $8.0 million, used to collateralize public deposits, outstanding at September 30, 2020 and December 31, 2019. The Company borrowed $5.0 million from First National Bankers Bank during the nine months ended September 30, 2020. During the nine months ended September 30, 2020, the Bank borrowed $129.9 million from the Federal Reserve Bank of Atlanta to fund PPP loans under the U.S. CARES Act (the Paycheck Protection Program Liquidity Facility). This is secured by PPP loans totaling $130.3 million made during the nine months ended September 30, 2020. These borrowings have a fixed interest rate of 0.35% and a maturity date equal to the maturity date of the related PPP loans, with the PPP loans maturing either two or five years from the origination date of the PPP loan. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan | (7) Employee Stock Ownership Plan The Bank sponsors an employee stock ownership plan (“ESOP”) that covers all employees who meet certain service requirements. The Bank makes annual contributions to the ESOP in amounts as defined by the plan document. These contributions are used to pay debt service and purchase additional shares. Certain ESOP shares are pledged as collateral for debt. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. In April 2017, the ESOP borrowed approximately $3.0 million payable to the Bank for the purpose of purchasing shares of the Company’s common stock. A total of 295,499 shares were purchased with the loan proceeds as part of the Company’s initial stock offering. Total ESOP expense for the three months and nine months ended September 30, 2020 and 2019 was approximately $20,000 and $30,000 and $71,000 and $92,000, respectively. The balance of the note payable of the ESOP was approximately $2.6 million at September 30, 2020 and December 31, 2019. Because the source of the loan payments is contributions received by the ESOP from the Bank, the related note receivable is shown as a reduction of stockholders’ equity. As of September 30, 2020 and December 31, 2019, 35,400 shares had been released. |
Stock-Based Compensation
Stock-Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award Additional General Disclosures [Abstract] | |
Stock-Based Compensation | (8) Stock-Based Compensation In August 2018, shareholders approved the Company’s 2018 Equity Incentive Plan, which authorizes the issuance of up to 147,749 shares of common stock pursuant to restricted stock grants and up to 369,374 shares of common stock pursuant to the exercise of options. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. The weighted average assumptions used in the Black-Scholes model for valuing stock option grants were as follows. Dividend yield is 0%, expected volatility is 25.40%, the risk-free interest rate is .53%, expected average life is 7.5 years and the weighted average per share fair value of options is $2.02. Stock options of 144,000 Restricted stock of 71,308 The Company recognized approximately $110,000 and $188,000 stock-based compensation expense during the three months and nine months ended September 30, 2020, respectively, associated with its common stock awards granted to directors and officers. Options and restricted stock totaling 147,749 and 56,533 shares, respectively were forfeited during the three months ended March 31, 2020 resulting in a reversal of previously recognized stock compensation expense of approximately $152,000 as none of the forfeited options or restricted stock had vested at the time of forfeiture. As of September 30, 2020, there was approximately $1,724,000 of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the weighted average remaining vesting period of approximately 4.2 years. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | (9) Fair Value Measurements and Disclosures The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. From time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments. Fair Value Hierarchy The Company groups assets and liabilities at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Cash and Cash Equivalents The carrying value of cash and cash equivalents is a reasonable estimate of fair value. Investment Securities Available-for-Sale Available-for-sale securities are recorded at market value. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. Other Investments The carrying value of other investments includes FHLB stock and FNBB stock and approximates fair value. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve may be required to be established within the allowance for loan losses. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with GAAP. The fair value of impaired loans is estimated using one of three methods, including collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with GAAP, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. For disclosure purposes, the fair value of fixed rate loans which are not considered impaired is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For unimpaired variable rate loans, the carrying amount is a reasonable estimate of fair value for disclosure purposes. Other Real Estate Owned Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate. Subsequently, other real estate assets are carried at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price, the Bank records the other real estate as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank records the other real estate asset as nonrecurring Level 3. Bank Owned Life Insurance The carrying value of the cash surrender value of life insurance reasonably approximates fair value. Deposits The fair value of savings accounts, interest bearing checking accounts, non-interest bearing checking accounts and market rate checking accounts is the amount payable on demand at the reporting date, while the fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using current rates at which comparable certificates would be issued. FHLB Advances The fair value of FHLB fixed-rate borrowings is estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements. Repurchase Agreements, Payroll Protection Program Liquidity Facility and Other Borrowings The carrying value of repurchase agreements and other borrowings reasonably approximates fair value. The Payroll Protection Program Liquidity Facility funding has a fixed rate of 0.35% for all participants; thus, the carrying value approximates the estimated fair value. Commitments to Extend Credit Commitments to extend credit are short-term and, therefore, the carrying value and the fair value are considered immaterial for disclosure. Assets Recorded at Fair Value on a Recurring Basis The Company’s only assets recorded at fair value on a recurring basis are available-for-sale securities that had fair values of approximately $25.3 million and $3.8 million at September 30, 2020 and December 31, 2019. They are classified as Level 2. Assets Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2020 and December 31, 2019 (in thousands). September 30, 2020 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 1,294 $ 1,294 Impaired loans — — 6,024 6,024 Total assets at fair value $ — $ — $ 7,318 $ 7,318 December 31, 2019 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 140 $ 140 Impaired loans — — 6,089 6,089 Total assets at fair value $ — $ — $ 6,229 $ 6,229 The carrying amounts and estimated fair values (in thousands) of the Company’s financial instruments at September 30, 2020 and December 31, 2019 are as follows: September 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets: Cash and cash equivalents $ 179,571 $ 179,571 $ 48,117 $ 48,117 Investment securities available-for-sale 25,255 25,255 3,818 3,818 Other Investments 2,234 2,234 278 278 Loans, net 624,775 605,141 247,956 219,991 Cash surrender value of life insurance 15,212 15,212 7,462 7,462 Financial liabilities: Deposits 625,756 628,567 238,181 239,340 FHLB advances 34,258 34,258 — — PPPLF Borrowings 129,964 129,964 — — Repurchase agreements and other borrowings 11,410 11,410 — — Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Plan of Conversion
Plan of Conversion | 9 Months Ended |
Sep. 30, 2020 | |
Plan Of Conversion [Abstract] | |
Plan of Conversion | (10) Plan of Conversion On September 8, 2020, the Boards of Directors of Community First Bancshares, MHC, the Company and the Bank adopted a Plan of Conversion (the “Plan”). Pursuant to the Plan, Community First Bancshares, MHC will convert from the mutual holding company form of organization to the fully public form. Community First Bancshares, MHC will be merged into the Company, and Community First Bancshares, MHC will no longer exist. The Company will then merge into a new Maryland corporation named Affinity Bancshares, Inc. As part of the conversion, Community First Bancshares, MHC’s ownership interest in the Company will be offered for sale in a public offering. The existing publicly held shares of the Company, which represent the remaining ownership interest in the Company, will be exchanged for new shares of common stock of the new Maryland corporation. The Plan provides for the establishment, upon the completion of the conversion, of special “liquidation accounts” for the benefit of certain depositors of the Bank in an amount equal to Community First Bancshares, MHC’s ownership interest in the equity of the Company as of the date of the latest balance sheet contained in the prospectus plus the value of the net assets of Community First Bancshares, MHC as of the date of the latest statement of financial condition of Community First Bancshares, MHC prior to the consummation of the conversion (excluding its ownership of the Company). The liquidation accounts will be reduced annually to the extent that eligible account holders have reduced their qualifying deposits. Direct costs of the conversion and public offering will be deferred and reduce the proceeds from the shares sold in the public offering. The Securities and Exchange Commission declared the new Maryland corporation’s Registration Statement effective November 10, 2020. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Community First Bancshares, Inc. (the “Company”) is a savings and loan holding company headquartered in Covington, Georgia. The Company has one operating subsidiary, Newton Federal Bank (the “Bank”), a federally chartered savings association, conducting banking activities in Newton County, Georgia and surrounding counties and in Cobb, Jackson and Fulton County, Georgia and surrounding counties, and originating dental practice loans and indirect automobile loans throughout the Southeastern United States. The Bank offers such customary banking services as consumer and commercial checking accounts, savings accounts, certificates of deposit, mortgage, commercial and consumer loans, including indirect automobile loans, money transfers and a variety of other banking services. The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the financial position of the Company as of September 30, 2020 and the results of its operations and its cash flows for the periods presented. The interim consolidated financial information should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. The results of operations for the three and nine months ended September 30, 2020 are not necessarily indicative of the results to be expected for a full year or for any other period. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of acquired loans, the valuation of other real estate acquired in connection with foreclosure or in satisfaction of loans and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no pronouncements issued during the quarter that would have a material impact on the Company's financial statements. |
Acquisition (Tables)
Acquisition (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The fair value of the assets acquired and liabilities assumed on January 10, 2020 was as follows: As recorded by Fair Value As recorded by ABB Adjustments CFBI (in thousands) Cash, cash equivalents and securities available-for-sale $ 41,561 $ — $ 41,561 Loans 264,176 (2,327 ) 261,849 Other real estate owned 790 — 790 Core deposit intangible — 1,913 1,913 Fixed assets and other assets 11,629 — 11,629 Total assets acquired 318,156 (414 ) 317,742 Deposits 249,049 265 249,314 Borrowings and other liabilities 37,764 1,654 39,418 Total liabilities acquired 286,813 1,919 288,732 Excess of assets acquired over liabilities acquired 31,343 (2,333 ) 29,010 Purchase price 40,338 Net assets acquired 29,010 Less preferred stock redeemed (5,891 ) Net assets acquired less preferred stock 23,119 Goodwill $ 17,219 |
Schedule of Unaudited Proforma Information Results of Operations | The following unaudited pro forma information presents the results of operations for nine months ended September 30, 2020 and 2019, as if the acquisition had occurred January 1 of each period. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts. These unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the combined company that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations. Nine Months Ended September 30, 2020 2019 (In thousands except per share data) Total revenues, net of interest expense $ 20,083 $ 18,489 Net income 591 2,223 Diluted earnings per share 0.08 0.30 |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale | Investment securities available-for-sale at September 30, 2020 and December 31, 2019 are as follows: (in thousands) Amortized Gross Unrealized Gross Unrealized Estimated September 30, 2020 Cost Gains Losses Fair Value Government agency securities $ 11,889 $ — $ (51 ) $ 11,838 Government agency mortgage-backed securities 10,455 344 — 10,799 Trust preferred securities 2,717 — (99 ) 2,618 Total $ 25,061 $ 344 $ (150 ) $ 25,255 December 31, 2019 Government agency securities $ 501 $ — $ (1 ) $ 500 Government agency mortgage-backed securities 3,305 13 — 3,318 Total $ 3,806 $ 13 $ (1 ) $ 3,818 |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Available-for-Sale by Contractual Maturity | The amortized cost and estimated fair value of investment securities available-for-sale at September 30, 2020, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands) Amortized Estimated Cost Fair Value Government agency securities Within 1 year $ — $ — Greater than 1 to 5 years 2,000 2,000 Greater than 5 to 10 years — — Greater than 10 years 9,889 9,838 Trust preferred securities Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years 2,217 2,193 Greater than 10 years 500 425 14,606 14,456 Government agency mortgage-backed securities 10,455 10,799 Total $ 25,061 $ 25,255 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Summary of Major Classifications of Loans | Major classifications of loans, by collateral code, at September 30, 2020 and December 31, 2019 are summarized as follows: (in thousands) September 30, 2020 December 31, 2019 Commercial (secured by real estate) $ 183,398 $ 54,488 Commercial and industrial 147,219 28,613 Payroll Protection Program loans 130,348 — Construction, land and acquisition & development 29,704 20,502 Residential mortgage 1-4 family 97,213 116,843 Consumer installment 42,604 31,644 Total 630,486 252,090 Less allowance for loan losses (5,711 ) (4,134 ) Total loans, net $ 624,775 $ 247,956 |
Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of and for the nine months ended September 30, 2020 and 2019: (in thousands) September 30, 2020 Commercial (Secured by Real Estate) Commercial and Industrial Construction, Land and Acquisition & Development Residential Mortgage Consumer Installment Unallocated Total Allowance for loan losses: Beginning balance $ 1,661 $ 1,478 $ 153 $ 369 $ 466 $ 7 $ 4,134 Provision 1,317 (839 ) 80 684 161 (3 ) 1,400 Charge-offs (30 ) — — (126 ) (17 ) — (173 ) Recoveries 207 16 — 97 30 — 350 Ending balance $ 3,155 $ 655 $ 233 $ 1,024 $ 640 $ 4 $ 5,711 Ending allowance attributable to loans: Individually evaluated for impairment $ 1 $ — $ — $ 10 $ — $ — $ 11 Collectively evaluated for impairment 3,154 655 233 1,014 640 4 5,700 Total ending allowance $ 3,155 655 233 1,024 640 4 5,711 Loans: Individually evaluated for impairment $ 1,465 $ 979 $ — $ 3,564 $ 26 $ — $ 6,034 Collectively evaluated for impairment 181,933 276,588 29,704 93,649 42,578 — 624,452 Total loans $ 183,398 $ 277,567 $ 29,704 $ 97,213 $ 42,604 $ — $ 630,486 September 30, 2019 Allowance for loan losses: Beginning balance $ 1,619 $ 1,520 $ 108 $ 641 $ 127 $ 7 $ 4,022 Provision (193 ) (150 ) 68 (291 ) 561 5 — Charge-offs — (26 ) — (125 ) (5 ) — (156 ) Recoveries 77 28 — 236 1 — 342 Ending balance $ 1,503 $ 1,372 $ 176 $ 461 $ 684 $ 12 $ 4,208 Ending allowance attributable to loans: Individually evaluated for impairment $ 1 $ — $ — $ 16 $ — $ — $ 17 Collectively evaluated for impairment 1,502 1,372 176 445 684 12 4,191 Total ending allowance $ 1,503 $ 1,372 $ 176 $ 461 $ 684 $ 12 $ 4,208 Loans: Individually evaluated for impairment $ 2,205 $ — $ — $ 3,430 $ — $ — $ 5,635 Collectively evaluated for impairment 53,030 26,609 21,912 119,398 25,749 — 246,698 Total loans $ 55,235 $ 26,609 $ 21,912 $ 122,828 $ 25,749 $ — $ 252,333 |
Summary of Impaired Loans | Impaired loans at September 30, 2020 and December 31, 2019 were as follows: (in thousands) September 30, 2020 Recorded Investment Unpaid Principal Balance Allocated Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial (secured by real estate) $ 110 $ 222 $ — $ 117 $ 5 Commercial and industrial 803 936 — 669 — Construction, land and acquisition & development — — — — — Residential mortgage 2,238 2,238 — 2,329 10 Consumer installment 26 26 — 25 1 3,177 3,422 — 3,140 16 With an allowance recorded: Commercial (secured by real estate) 1,355 1,355 1 1,385 75 Commercial and industrial 176 176 — 88 — Construction, land and acquisition & development — — — — — Residential mortgage 1,326 1,326 10 1,416 43 Consumer installment — — — — — 2,857 2,857 11 2,889 118 Total impaired loans $ 6,034 $ 6,279 $ 10 $ 6,029 $ 134 December 31, 2019 With no related allowance recorded: Commercial (secured by real estate) $ 26 $ 26 $ — $ 40 $ 9 Commercial and industrial 395 527 — 463 29 Construction, land and acquisition & development — — — — — Residential mortgage 3,749 3,878 — 3,912 153 Consumer installment — — — — — 4,170 4,431 — 4,415 191 With an allowance recorded: Commercial (secured by real estate) 1,513 1,513 1 1,539 94 Commercial and industrial — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 412 412 5 405 — Consumer installment — — — — 24 1,925 1,925 6 1,944 118 Total impaired loans $ 6,095 $ 6,356 $ 6 $ 6,359 $ 309 |
Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans | The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of September 30, 2020 and December 31, 2019 by class of loans: (in thousands) September 30, 2020 30 -59 Days Past Due 60- 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Nonaccrual Commercial (secured by real estate) $ 901 $ — $ — $ 901 $ 182,497 $ 183,398 $ 22 Commercial and industrial — 1 395 396 277,171 277,567 979 Construction, land and acquisition & development — — — — 29,704 29,704 — Residential mortgage 423 245 13 681 96,532 97,213 2,684 Consumer installment 31 1 9 41 42,563 42,604 32 Total $ 1,355 $ 247 $ 417 $ 2,019 $ 628,467 $ 630,486 $ 3,717 December 31, 2019 Commercial (secured by real estate) $ 114 $ 24 $ 10 $ 148 $ 54,340 $ 54,488 $ 246 Commercial and industrial 1,270 30 395 1,695 26,918 28,613 395 Construction, land and acquisition & development — — — — 20,502 20,502 — Residential mortgage 3,087 2,040 643 5,770 111,073 116,843 1,912 Consumer installment 58 34 — 92 31,552 31,644 14 Total $ 4,529 $ 2,128 $ 1,048 $ 7,705 $ 244,385 $ 252,090 $ 2,567 |
Summary of Risk Category of Loans by Class of Loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of September 30, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands) September 30, 2020 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 182,589 $ 785 $ 24 $ — $ 183,398 Commercial and industrial 276,984 — 583 — 277,567 Construction, land and acquisition & development 29,482 222 — — 29,704 Residential mortgage 93,076 62 4,075 — 97,213 Consumer installment 42,572 — 32 — 42,604 Total $ 624,703 $ 1,069 $ 4,714 $ — $ 630,486 December 31, 2019 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 54,454 $ — $ 34 $ — $ 54,488 Commercial and industrial 28,204 — 409 — 28,613 Construction, land and acquisition & development 20,502 — — — 20,502 Residential mortgage 110,034 229 6,580 — 116,843 Consumer installment 31,626 — 18 — 31,644 Total $ 244,820 $ 229 $ 7,041 $ — $ 252,090 |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank of Atlanta (FHLB) Advances | The following FHLB advances, which required monthly or quarterly interest payments, were outstanding at September 30, 2020: Advance Date Advance Fair Value Adjustment Interest Rate Maturity Rate Call Feature 5/25/2018 10,000,000 70,417 2.91 % 5/25/2021 Fixed None 5/23/2019 8,000,000 462,694 2.40 % 5/23/2029 Convertible 5/23/2022 12/16/2019 5,000,000 314,759 2.37 % 12/17/2029 Convertible 12/17/2021 11/29/2019 5,000,000 371,352 2.66 % 11/29/2029 Convertible 11/29/2022 7/10/2019 5,000,000 38,845 2.10 % 7/10/2024 Fixed None $ 33,000,000 $ 1,258,067 |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of September 30, 2020 and December 31, 2019 (in thousands). September 30, 2020 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 1,294 $ 1,294 Impaired loans — — 6,024 6,024 Total assets at fair value $ — $ — $ 7,318 $ 7,318 December 31, 2019 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 140 $ 140 Impaired loans — — 6,089 6,089 Total assets at fair value $ — $ — $ 6,229 $ 6,229 |
Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments | The carrying amounts and estimated fair values (in thousands) of the Company’s financial instruments at September 30, 2020 and December 31, 2019 are as follows: September 30, 2020 December 31, 2019 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets: Cash and cash equivalents $ 179,571 $ 179,571 $ 48,117 $ 48,117 Investment securities available-for-sale 25,255 25,255 3,818 3,818 Other Investments 2,234 2,234 278 278 Loans, net 624,775 605,141 247,956 219,991 Cash surrender value of life insurance 15,212 15,212 7,462 7,462 Financial liabilities: Deposits 625,756 628,567 238,181 239,340 FHLB advances 34,258 34,258 — — PPPLF Borrowings 129,964 129,964 — — Repurchase agreements and other borrowings 11,410 11,410 — — |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Sep. 30, 2020USD ($)shares | Jun. 30, 2020USD ($) | Mar. 31, 2020USD ($) | Sep. 30, 2019USD ($)shares | Jun. 30, 2019USD ($) | Mar. 31, 2019USD ($) | Sep. 30, 2020USD ($)loanshares | Sep. 30, 2019USD ($)shares | |
Basis Of Presentation [Line Items] | ||||||||
Net income (loss) | $ 1,870 | $ 1,079 | $ (1,298) | $ (196) | $ 118 | $ 117 | $ 1,650 | $ 39 |
Weighted average common shares outstanding | shares | 7,570,797 | 7,557,848 | 7,547,363 | 7,504,891 | ||||
Number of loans eligible for short term deferrals | loan | 770 | |||||||
Short-term deferrals on loans granted | $ 192,700 | $ 192,700 | ||||||
Number of loans returned to normal performing status | loan | 365 | |||||||
Loans returned to normal performing status value | 72,100 | $ 72,100 | ||||||
Small Business Administration | ||||||||
Basis Of Presentation [Line Items] | ||||||||
Number of paycheck protection program loans | loan | 1,171 | |||||||
Paycheck protection program loans | $ 130,300 | $ 130,300 |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ / shares in Units, $ in Millions | Jan. 10, 2020USD ($)loanbranch$ / sharesshares |
Affinity Bank | Cobb County, Georgia | |
Business Acquisition [Line Items] | |
Number of branch office | branch | 1 |
Affinity Bank | Fulton County, Georgia | |
Business Acquisition [Line Items] | |
Number of loan production office | loan | 1 |
ABB Financial Group, Inc. | |
Business Acquisition [Line Items] | |
Date of merger | Jan. 10, 2020 |
Common stock holder right to receive cash per share | $ / shares | $ 7.50 |
Cash paid | $ 40.3 |
Stock issued | shares | 0 |
Payments for vested restricted stock, net | $ 2.7 |
Acquisition - Schedule of Fair
Acquisition - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Jan. 10, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash, cash equivalents and securities available-for-sale | $ 41,561 |
Loans | 261,849 |
Other real estate owned | 790 |
Core deposit intangible | 1,913 |
Fixed assets and other assets | 11,629 |
Total assets acquired | 317,742 |
Deposits | 249,314 |
Borrowings and other liabilities | 39,418 |
Total liabilities acquired | 288,732 |
Excess of assets acquired over liabilities acquired | 29,010 |
Purchase price | 40,338 |
Net assets acquired | 29,010 |
Less preferred stock redeemed | (5,891) |
Net assets acquired less preferred stock | 23,119 |
Goodwill | 17,219 |
Fair Value Adjustments | |
Business Acquisition [Line Items] | |
Loans | (2,327) |
Core deposit intangible | 1,913 |
Total assets acquired | (414) |
Deposits | 265 |
Borrowings and other liabilities | 1,654 |
Total liabilities acquired | 1,919 |
Excess of assets acquired over liabilities acquired | (2,333) |
Net assets acquired | (2,333) |
ABB Financial Group, Inc. | |
Business Acquisition [Line Items] | |
Cash, cash equivalents and securities available-for-sale | 41,561 |
Loans | 264,176 |
Other real estate owned | 790 |
Fixed assets and other assets | 11,629 |
Total assets acquired | 318,156 |
Deposits | 249,049 |
Borrowings and other liabilities | 37,764 |
Total liabilities acquired | 286,813 |
Excess of assets acquired over liabilities acquired | 31,343 |
Net assets acquired | $ 31,343 |
Acquisition - Schedule of Unaud
Acquisition - Schedule of Unaudited Proforma Information Results of Operations (Details) - USD ($) $ / shares in Units, $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Business Combinations [Abstract] | ||
Total revenues, net of interest expense | $ 20,083 | $ 18,489 |
Net income | $ 591 | $ 2,223 |
Diluted earnings per share | $ 0.08 | $ 0.30 |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | $ 25,061 | $ 3,806 |
Investment securities available-for-sale, Gross Unrealized Gains | 344 | 13 |
Investment securities available-for-sale, Gross Unrealized Losses | (150) | (1) |
Investment securities available-for-sale, Estimated Fair Value | 25,255 | 3,818 |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 11,889 | 501 |
Investment securities available-for-sale, Gross Unrealized Losses | (51) | (1) |
Investment securities available-for-sale, Estimated Fair Value | 11,838 | 500 |
Trust Preferred Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 2,717 | |
Investment securities available-for-sale, Gross Unrealized Losses | (99) | |
Investment securities available-for-sale, Estimated Fair Value | 2,618 | |
Government Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 10,455 | 3,305 |
Investment securities available-for-sale, Gross Unrealized Gains | 344 | 13 |
Investment securities available-for-sale, Estimated Fair Value | $ 10,799 | $ 3,318 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2019USD ($)Security | Sep. 30, 2020USD ($)Security | Sep. 30, 2019USD ($)Security | Dec. 31, 2019USD ($) | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 6 | |||
Number of available-for-sale securities in unrealized loss position 12 months or greater | Security | 0 | |||
Gain on sale of available for sale securities | $ 147,000 | $ 20,000 | $ 147,000 | |
Sales of available-for-sale securities | $ 16,400,000 | $ 1,677,000 | $ 16,360,000 | |
Number of available for sale securities sold | Security | 39 | 0 | 39 | |
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ 25,255,000 | $ 3,818,000 | ||
Collateral Pledged | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ 20,200,000 | 3,800,000 | ||
Government Agency Securities | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 3 | |||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ 11,838,000 | $ 500,000 | ||
Trust Preferred Securities | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 3 | |||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ 2,618,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Available-for-Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | $ 25,061 | $ 3,806 |
Investment securities available-for-sale, Estimated Fair Value | 25,255 | 3,818 |
Trust Preferred Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Greater than 5 to 10 years, Amortized Cost | 2,217 | |
Investment securities available-for-sale, Greater than 10 years, Amortized Cost | 500 | |
Investment securities available-for-sale, Amortized Cost | 2,717 | |
Investment securities available-for-sale, Greater than 5 to 10 years, Estimated Fair Value | 2,193 | |
Investment securities available-for-sale, Greater than10 years, Estimated Fair Value | 425 | |
Investment securities available-for-sale, Estimated Fair Value | 2,618 | |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Greater than 1 to 5 years, Amortized Cost | 2,000 | |
Investment securities available-for-sale, Greater than 10 years, Amortized Cost | 9,889 | |
Investment securities available-for-sale, Amortized Cost | 11,889 | 501 |
Investment securities available-for-sale, Greater than 1 to 5 years, Estimated Fair Value | 2,000 | |
Investment securities available-for-sale, Greater than10 years, Estimated Fair Value | 9,838 | |
Investment securities available-for-sale, Estimated Fair Value | 11,838 | 500 |
Government Agency Securities and Trust Preferred Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 14,606 | |
Investment securities available-for-sale, Estimated Fair Value | 14,456 | |
Government Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 10,455 | 3,305 |
Investment securities available-for-sale, Estimated Fair Value | $ 10,799 | $ 3,318 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Major Classifications of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | $ 630,486 | $ 252,090 | $ 252,333 | |
Less allowance for loan losses | (5,711) | (4,134) | (4,208) | $ (4,022) |
Total loans, net | 624,775 | 247,956 | ||
Commercial (Secured by Real Estate) | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 183,398 | 54,488 | 55,235 | |
Less allowance for loan losses | (3,155) | (1,661) | (1,503) | (1,619) |
Commercial and Industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 147,219 | 28,613 | ||
Payroll Protection Program Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 130,348 | |||
Construction, Land and Acquisition & Development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 29,704 | 20,502 | 21,912 | |
Less allowance for loan losses | (233) | (153) | (176) | (108) |
Residential Mortgage 1-4 Family | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 97,213 | 116,843 | ||
Consumer Installment | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans, gross | 42,604 | 31,644 | 25,749 | |
Less allowance for loan losses | $ (640) | $ (466) | $ (684) | $ (127) |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 9 Months Ended | |||
Sep. 30, 2020USD ($)Contract | Sep. 30, 2019USD ($)Contract | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Qualifying loans pledged to secure the line of credit from FHLB | $ 214,200,000 | $ 115,400,000 | ||
Troubled debt restructurings, number of contracts | Contract | 1 | 0 | ||
Troubled debt restructurings that have subsequently defaulted, number of contracts | Contract | 0 | 0 | ||
Allowance for loan losses | $ 5,711,000 | $ 4,208,000 | 4,134,000 | $ 4,022,000 |
Modified Loan Terms | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Allowance for loan losses | 10,000 | 6,000 | ||
90 Days or Greater Past Due | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Total Past Due | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Allowance for loan losses: | |||
Beginning balance | $ 4,134 | $ 4,022 | |
Provision | 1,400 | 0 | |
Charge-offs | (173) | (156) | |
Recoveries | 350 | 342 | |
Ending balance | 5,711 | 4,208 | |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 11 | 17 | |
Collectively evaluated for impairment | 5,700 | 4,191 | |
Ending balance | 5,711 | 4,208 | |
Loans: | |||
Individually evaluated for impairment | 6,034 | 5,635 | |
Collectively evaluated for impairment | 624,452 | 246,698 | |
Total loans | 630,486 | 252,333 | $ 252,090 |
Commercial (Secured by Real Estate) | |||
Allowance for loan losses: | |||
Beginning balance | 1,661 | 1,619 | |
Provision | 1,317 | (193) | |
Charge-offs | (30) | ||
Recoveries | 207 | 77 | |
Ending balance | 3,155 | 1,503 | |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 1 | 1 | |
Collectively evaluated for impairment | 3,154 | 1,502 | |
Ending balance | 3,155 | 1,503 | |
Loans: | |||
Individually evaluated for impairment | 1,465 | 2,205 | |
Collectively evaluated for impairment | 181,933 | 53,030 | |
Total loans | 183,398 | 55,235 | 54,488 |
Commercial and Industrial | |||
Allowance for loan losses: | |||
Beginning balance | 1,478 | 1,520 | |
Provision | (839) | (150) | |
Charge-offs | (26) | ||
Recoveries | 16 | 28 | |
Ending balance | 655 | 1,372 | |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 655 | 1,372 | |
Ending balance | 655 | 1,372 | |
Loans: | |||
Individually evaluated for impairment | 979 | ||
Collectively evaluated for impairment | 276,588 | 26,609 | |
Total loans | 277,567 | 26,609 | 28,613 |
Construction, Land and Acquisition & Development | |||
Allowance for loan losses: | |||
Beginning balance | 153 | 108 | |
Provision | 80 | 68 | |
Ending balance | 233 | 176 | |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 233 | 176 | |
Ending balance | 233 | 176 | |
Loans: | |||
Collectively evaluated for impairment | 29,704 | 21,912 | |
Total loans | 29,704 | 21,912 | 20,502 |
Residential Mortgage | |||
Allowance for loan losses: | |||
Beginning balance | 369 | 641 | |
Provision | 684 | (291) | |
Charge-offs | (126) | (125) | |
Recoveries | 97 | 236 | |
Ending balance | 1,024 | 461 | |
Ending allowance attributable to loans: | |||
Individually evaluated for impairment | 10 | 16 | |
Collectively evaluated for impairment | 1,014 | 445 | |
Ending balance | 1,024 | 461 | |
Loans: | |||
Individually evaluated for impairment | 3,564 | 3,430 | |
Collectively evaluated for impairment | 93,649 | 119,398 | |
Total loans | 97,213 | 122,828 | 116,843 |
Consumer Installment | |||
Allowance for loan losses: | |||
Beginning balance | 466 | 127 | |
Provision | 161 | 561 | |
Charge-offs | (17) | (5) | |
Recoveries | 30 | 1 | |
Ending balance | 640 | 684 | |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 640 | 684 | |
Ending balance | 640 | 684 | |
Loans: | |||
Individually evaluated for impairment | 26 | ||
Collectively evaluated for impairment | 42,578 | 25,749 | |
Total loans | 42,604 | 25,749 | $ 31,644 |
Unallocated | |||
Allowance for loan losses: | |||
Beginning balance | 7 | 7 | |
Provision | (3) | 5 | |
Ending balance | 4 | 12 | |
Ending allowance attributable to loans: | |||
Collectively evaluated for impairment | 4 | 12 | |
Ending balance | $ 4 | $ 12 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | $ 3,177 | $ 4,170 |
Unpaid Principal Balance, With no related allowance recorded | 3,422 | 4,431 |
Average Recorded Investment, With no related allowance recorded | 3,140 | 4,415 |
Interest Income Recognized, With no related allowance recorded | 16 | 191 |
Recorded Investment, With an allowance recorded | 2,857 | 1,925 |
Unpaid Principal Balance, With an allowance recorded | 2,857 | 1,925 |
Allocated Related Allowance, With an allowance recorded | 11 | 6 |
Average Recorded Investment, With an allowance recorded | 2,889 | 1,944 |
Interest Income Recognized, With an allowance recorded | 118 | 118 |
Total impaired loans, Recorded Investment | 6,034 | 6,095 |
Total impaired loans, Unpaid Principal Balance | 6,279 | 6,356 |
Total impaired loans, Allocated Related Allowance | 10 | 6 |
Total impaired loans, Average Recorded Investment | 6,029 | 6,359 |
Total impaired loans, Interest Income Recognized | 134 | 309 |
Commercial (Secured by Real Estate) | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 110 | 26 |
Unpaid Principal Balance, With no related allowance recorded | 222 | 26 |
Average Recorded Investment, With no related allowance recorded | 117 | 40 |
Interest Income Recognized, With no related allowance recorded | 5 | 9 |
Recorded Investment, With an allowance recorded | 1,355 | 1,513 |
Unpaid Principal Balance, With an allowance recorded | 1,355 | 1,513 |
Allocated Related Allowance, With an allowance recorded | 1 | 1 |
Average Recorded Investment, With an allowance recorded | 1,385 | 1,539 |
Interest Income Recognized, With an allowance recorded | 75 | 94 |
Commercial and Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 803 | 395 |
Unpaid Principal Balance, With no related allowance recorded | 936 | 527 |
Average Recorded Investment, With no related allowance recorded | 669 | 463 |
Interest Income Recognized, With no related allowance recorded | 29 | |
Recorded Investment, With an allowance recorded | 176 | |
Unpaid Principal Balance, With an allowance recorded | 176 | |
Average Recorded Investment, With an allowance recorded | 88 | |
Residential Mortgage | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 2,238 | 3,749 |
Unpaid Principal Balance, With no related allowance recorded | 2,238 | 3,878 |
Average Recorded Investment, With no related allowance recorded | 2,329 | 3,912 |
Interest Income Recognized, With no related allowance recorded | 10 | 153 |
Recorded Investment, With an allowance recorded | 1,326 | 412 |
Unpaid Principal Balance, With an allowance recorded | 1,326 | 412 |
Allocated Related Allowance, With an allowance recorded | 10 | 5 |
Average Recorded Investment, With an allowance recorded | 1,416 | 405 |
Interest Income Recognized, With an allowance recorded | 43 | |
Consumer Installment | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 26 | |
Unpaid Principal Balance, With no related allowance recorded | 26 | |
Average Recorded Investment, With no related allowance recorded | 25 | |
Interest Income Recognized, With no related allowance recorded | $ 1 | |
Interest Income Recognized, With an allowance recorded | $ 24 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 2,019 | $ 7,705 | |
Current | 628,467 | 244,385 | |
Total loans | 630,486 | 252,090 | $ 252,333 |
Nonaccrual | 3,717 | 2,567 | |
30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,355 | 4,529 | |
60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 247 | 2,128 | |
90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 417 | 1,048 | |
Commercial (Secured by Real Estate) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 901 | 148 | |
Current | 182,497 | 54,340 | |
Total loans | 183,398 | 54,488 | 55,235 |
Nonaccrual | 22 | 246 | |
Commercial (Secured by Real Estate) | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 901 | 114 | |
Commercial (Secured by Real Estate) | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 24 | ||
Commercial (Secured by Real Estate) | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 10 | ||
Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 396 | 1,695 | |
Current | 277,171 | 26,918 | |
Total loans | 277,567 | 28,613 | 26,609 |
Nonaccrual | 979 | 395 | |
Commercial and Industrial | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,270 | ||
Commercial and Industrial | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1 | 30 | |
Commercial and Industrial | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 395 | 395 | |
Construction, Land and Acquisition & Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Current | 29,704 | 20,502 | |
Total loans | 29,704 | 20,502 | 21,912 |
Residential Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 681 | 5,770 | |
Current | 96,532 | 111,073 | |
Total loans | 97,213 | 116,843 | 122,828 |
Nonaccrual | 2,684 | 1,912 | |
Residential Mortgage | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 423 | 3,087 | |
Residential Mortgage | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 245 | 2,040 | |
Residential Mortgage | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 13 | 643 | |
Consumer Installment | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 41 | 92 | |
Current | 42,563 | 31,552 | |
Total loans | 42,604 | 31,644 | $ 25,749 |
Nonaccrual | 32 | 14 | |
Consumer Installment | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 31 | 58 | |
Consumer Installment | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1 | $ 34 | |
Consumer Installment | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 9 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 | Sep. 30, 2019 |
Composition Of Loan Portfolio [Line Items] | |||
Total | $ 630,486 | $ 252,090 | $ 252,333 |
Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 624,703 | 244,820 | |
Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 1,069 | 229 | |
Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 4,714 | 7,041 | |
Commercial (Secured by Real Estate) | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 183,398 | 54,488 | 55,235 |
Commercial (Secured by Real Estate) | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 182,589 | 54,454 | |
Commercial (Secured by Real Estate) | Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 785 | ||
Commercial (Secured by Real Estate) | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 24 | 34 | |
Commercial and Industrial | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 277,567 | 28,613 | 26,609 |
Commercial and Industrial | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 276,984 | 28,204 | |
Commercial and Industrial | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 583 | 409 | |
Construction, Land and Acquisition & Development | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 29,704 | 20,502 | 21,912 |
Construction, Land and Acquisition & Development | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 29,482 | 20,502 | |
Construction, Land and Acquisition & Development | Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 222 | ||
Residential Mortgage | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 97,213 | 116,843 | 122,828 |
Residential Mortgage | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 93,076 | 110,034 | |
Residential Mortgage | Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 62 | 229 | |
Residential Mortgage | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 4,075 | 6,580 | |
Consumer Installment | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 42,604 | 31,644 | $ 25,749 |
Consumer Installment | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 42,572 | 31,626 | |
Consumer Installment | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | $ 32 | $ 18 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Sep. 30, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Time certificates of deposit in denomination of greater than $250,000 | $ 33.4 | $ 30.2 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank of Atlanta (FHLB) Advances (Details) - Federal Home Loan Bank of Atlanta | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Federal Home Loan Bank Advances [Line Items] | |
Advances from FHLB | $ 33,000,000 |
Advances from FHLB, Fair Value Adjustment | $ 1,258,067,000 |
May 25, 2021 | |
Federal Home Loan Bank Advances [Line Items] | |
Advances from FHLB, Advance Date | May 25, 2018 |
Advances from FHLB | $ 10,000,000 |
Advances from FHLB, Fair Value Adjustment | $ 70,417,000 |
Advances from FHLB, Interest Rate | 2.91% |
Advances from FHLB, Maturity | May 25, 2021 |
Advances from FHLB, Rate | Fixed |
Advances from FHLB, Call Feature | None |
May 23, 2029 | |
Federal Home Loan Bank Advances [Line Items] | |
Advances from FHLB, Advance Date | May 23, 2019 |
Advances from FHLB | $ 8,000,000 |
Advances from FHLB, Fair Value Adjustment | $ 462,694,000 |
Advances from FHLB, Interest Rate | 2.40% |
Advances from FHLB, Maturity | May 23, 2029 |
Advances from FHLB, Rate | Convertible |
Advances from FHLB, Call Feature | 5/23/2022 |
December 17, 2029 | |
Federal Home Loan Bank Advances [Line Items] | |
Advances from FHLB, Advance Date | Dec. 16, 2019 |
Advances from FHLB | $ 5,000,000 |
Advances from FHLB, Fair Value Adjustment | $ 314,759,000 |
Advances from FHLB, Interest Rate | 2.37% |
Advances from FHLB, Maturity | Dec. 17, 2029 |
Advances from FHLB, Rate | Convertible |
Advances from FHLB, Call Feature | 12/17/2021 |
November 29, 2029 | |
Federal Home Loan Bank Advances [Line Items] | |
Advances from FHLB, Advance Date | Nov. 29, 2019 |
Advances from FHLB | $ 5,000,000 |
Advances from FHLB, Fair Value Adjustment | $ 371,352,000 |
Advances from FHLB, Interest Rate | 2.66% |
Advances from FHLB, Maturity | Nov. 29, 2029 |
Advances from FHLB, Rate | Convertible |
Advances from FHLB, Call Feature | 11/29/2022 |
July 10, 2024 | |
Federal Home Loan Bank Advances [Line Items] | |
Advances from FHLB, Advance Date | Jul. 10, 2019 |
Advances from FHLB | $ 5,000,000 |
Advances from FHLB, Fair Value Adjustment | $ 38,845,000 |
Advances from FHLB, Interest Rate | 2.10% |
Advances from FHLB, Maturity | Jul. 10, 2024 |
Advances from FHLB, Rate | Fixed |
Advances from FHLB, Call Feature | None |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Line Of Credit Facility [Line Items] | ||
Federal Home Loan Bank advances | $ 34,258,000 | $ 0 |
Advances from FHLB collateralized by certain loans | 214,200,000 | |
Investment in FHLB stock | 2,000,000 | |
Line of credit amount outstanding | 8,000,000 | $ 8,000,000 |
Payroll protection program loans | 129,964,000 | |
Small Business Administration | ||
Line Of Credit Facility [Line Items] | ||
Secured payroll protection program loans | 130,300,000 | |
Federal Reserve Bank of Atlanta | Small Business Administration | ||
Line Of Credit Facility [Line Items] | ||
Payroll protection program loans | $ 129,900,000 | |
Payroll protection program loans, fixed interest rate | 0.35% | |
Federal Reserve Bank of Atlanta | Small Business Administration | Minimum | ||
Line Of Credit Facility [Line Items] | ||
Payroll protection program loans, maturity period | 2 years | |
Federal Reserve Bank of Atlanta | Small Business Administration | Maximum | ||
Line Of Credit Facility [Line Items] | ||
Payroll protection program loans, maturity period | 5 years | |
Revolving Credit Facility | First National Bankers Bank | ||
Line Of Credit Facility [Line Items] | ||
Line of credit amount outstanding | $ 5,000,000 | |
Line of credit, term | 10 years | |
Line of credit, initial interest payment due date | Sep. 30, 2020 | |
Line of credit, initial principal payment due date | Jun. 29, 2021 | |
Line of credit, prepayment penalty | $ 0 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | Apr. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||||||
Note payable balance of ESOP | $ 2,600,000 | $ 2,600,000 | $ 2,600,000 | $ 3,000,000 | ||
Shares purchased by ESOP | 295,499 | |||||
ESOP expense | $ 20,000 | $ 30,000 | $ 71,000 | $ 92,000 | ||
ESOP released shares | 35,400 | 35,400 | 35,400 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2020 | Aug. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Dividend yield rate | 0.00% | |||
Expected volatility rate | 25.40% | |||
Risk-free interest rate | 0.53% | |||
Expected average life | 7 years 6 months | |||
Weighted average per share fair value of options | $ 2.02 | $ 2.02 | ||
Number of stock options granted | 144,000 | |||
Weighted average exercise price of stock options granted | $ 7.05 | |||
Number of stock options exercised | 0 | |||
Number of stock options forfeited | 147,749 | 147,749 | ||
Weighted average exercise price of exercise price | $ 8.86 | |||
Stock options outstanding | 354,538 | 354,538 | ||
Weighted average remaining life of outstanding options | 8 years 10 months 24 days | |||
Aggregate intrinsic value of outstanding options | $ 16,000 | $ 16,000 | ||
Number of options exercisable | 42,108 | 42,108 | ||
Weighted average exercisable price of exercise price | $ 10.10 | $ 10.10 | ||
Weighted average remaining exercisable options | 8 years 6 months | |||
Exercisable, aggregate intrinsic value | $ 0 | $ 0 | ||
Stock-based compensation expense | 110,000 | 188,000 | ||
Reversal of stock compensation expense | $ 152,000 | |||
Number of stock options restricted stock | 56,533 | |||
Number of forfeited options vested | 0 | |||
Unrecognized compensation cost related to equity award grants | $ 1,724,000 | $ 1,724,000 | ||
Unrecognized compensation cost expected weighted average remaining vesting period | 4 years 2 months 12 days | |||
Restricted Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares granted | 71,308 | |||
Weighted average grant date fair value | $ 7.05 | |||
Number of shares vested | 15,289 | |||
Number of shares withheld for tax withholding purposes | 1,826 | |||
Number of shares outstanding | 145,923 | 145,923 | ||
Weighted average grant date fair value of shares outstanding | $ 8.63 | $ 8.63 | ||
2018 Equity Incentive Plan | Restricted Stock | Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares approved under the plan | 147,749 | |||
2018 Equity Incentive Plan | Stock Options | Common Stock | ||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||||
Number of shares approved under the plan | 369,374 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, Estimated Fair Value | $ 25,255 | $ 3,818 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, Estimated Fair Value | $ 25,300 | $ 3,800 |
Payroll Protection Program Loans Federal Borrowings | Small Business Administration | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Payroll protection program loans, fixed interest rate | 0.35% |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 6,034 | $ 6,095 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,294 | 140 |
Impaired loans | 6,024 | 6,089 |
Total assets at fair value | 7,318 | 6,229 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,294 | 140 |
Impaired loans | 6,024 | 6,089 |
Total assets at fair value | $ 7,318 | $ 6,229 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Investment securities available-for-sale | $ 25,255 | $ 3,818 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 179,571 | 48,117 |
Investment securities available-for-sale | 25,255 | 3,818 |
Other Investments | 2,234 | 278 |
Loans, net | 624,775 | 247,956 |
Cash surrender value of life insurance | 15,212 | 7,462 |
Financial liabilities: | ||
Deposits | 625,756 | 238,181 |
FHLB advances | 34,258 | |
PPPLF Borrowings | 129,964 | |
Repurchase agreements and other borrowings | 11,410 | |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 179,571 | 48,117 |
Investment securities available-for-sale | 25,255 | 3,818 |
Other Investments | 2,234 | 278 |
Loans, net | 605,141 | 219,991 |
Cash surrender value of life insurance | 15,212 | 7,462 |
Financial liabilities: | ||
Deposits | 628,567 | $ 239,340 |
FHLB advances | 34,258 | |
PPPLF Borrowings | 129,964 | |
Repurchase agreements and other borrowings | $ 11,410 |