Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | May 10, 2019 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | MNSB | |
Entity Registrant Name | MainStreet Bancshares, Inc. | |
Entity Central Index Key | 0001693577 | |
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 | true | |
Entity Common Stock, Shares Outstanding | 8,250,259 |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 29,741 | $ 27,886 |
Federal funds sold | 30,034 | 30,190 |
Cash and cash equivalents | 59,775 | 58,076 |
Investment securities available-for-sale, at fair value | 69,308 | 55,979 |
Investment securities held-to-maturity | 25,487 | 26,178 |
Restricted securities, at cost | 5,732 | 5,894 |
Loans receivable, net of allowance for loan losses of $9,189 at March 31, 2019 and $8,831 at December 31, 2018 | 943,735 | 917,125 |
Premises and equipment, net | 14,226 | 14,222 |
Accrued interest and other receivables | 5,644 | 5,148 |
Bank owned life insurance | 14,169 | 14,064 |
Other assets | 8,005 | 3,927 |
Total Assets | 1,146,081 | 1,100,613 |
Liabilities | ||
Non-interest bearing deposits | 193,744 | 211,749 |
Interest bearing demand deposits | 59,639 | 60,588 |
Savings and NOW deposits | 61,537 | 51,371 |
Money market deposits | 147,655 | 138,152 |
Time deposits | 504,252 | 458,277 |
Total deposits | 966,827 | 920,137 |
Federal Home Loan Bank advances | 30,000 | 40,000 |
Subordinated debt, net | 14,783 | 14,776 |
Other liabilities | 9,488 | 4,449 |
Total Liabilities | 1,021,098 | 979,362 |
Stockholders' Equity | ||
Preferred stock, $1.00 par value, 2,000,000 shares authorized; no shares issued and outstanding as of March 31, 2019 and December 31, 2018. | ||
Common stock, $4.00 par value, 10,000,000 shares authorized; issued and outstanding 8,249,759 shares (including 153,086 nonvested shares) for March 31, 2019 and 8,177,978 shares (including 133,869 nonvested shares) for December 31, 2018. | 32,387 | 32,176 |
Capital surplus | 74,353 | 74,256 |
Retained earnings | 18,395 | 15,186 |
Accumulated other comprehensive loss | (152) | (367) |
Total Stockholders' Equity | 124,983 | 121,251 |
Total Liabilities and Stockholders' Equity | $ 1,146,081 | $ 1,100,613 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Loans receivable, net of allowance for loan losses | $ 9,189 | $ 8,831 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 4 | $ 4 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,249,759 | 8,177,978 |
Common stock, shares outstanding | 8,249,759 | 8,177,978 |
Common stock, non-vested shares | 153,086 | 133,869 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest Income | ||
Interest and fees on loans | $ 12,916 | $ 8,316 |
Interest on investments securities | 556 | 341 |
Interest on federal funds sold | 345 | 100 |
Total Interest Income | 13,817 | 8,757 |
Interest Expense | ||
Interest on interest bearing DDA deposits | 245 | 164 |
Interest on savings and NOW deposits | 73 | 46 |
Interest on money market deposits | 763 | 264 |
Interest on time deposits | 2,931 | 1,091 |
Interest on Federal Home Loan Bank advances and other borrowings | 219 | 179 |
Interest on subordinated debt | 238 | 238 |
Total Interest Expense | 4,469 | 1,982 |
Net interest income | 9,348 | 6,775 |
Provision for Loan Losses | 325 | 635 |
Net interest income after provision for loan losses | 9,023 | 6,140 |
Non-Interest Income | ||
Deposit account service charges | 370 | 213 |
Bank owned life insurance income | 105 | 106 |
Other fee income | 451 | 189 |
Total Non-Interest Income | 926 | 508 |
Non-Interest Expense | ||
Salaries and employee benefits | 3,860 | 2,749 |
Furniture and equipment expenses | 385 | 381 |
Advertising and marketing | 105 | 156 |
Occupancy expenses | 213 | 151 |
Outside services | 227 | 196 |
Administrative expenses | 167 | 118 |
Other operating expenses | 1,051 | 826 |
Total Non-Interest Expense | 6,008 | 4,577 |
Income before income taxes | 3,941 | 2,071 |
Income Tax Expense | 694 | 385 |
Net Income | $ 3,247 | $ 1,686 |
Net Income per common share: | ||
Basic | $ 0.39 | $ 0.29 |
Diluted | $ 0.39 | $ 0.29 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Comprehensive Income, net of taxes | ||
Net income | $ 3,247 | $ 1,686 |
Other comprehensive gain (loss), net of tax: | ||
Unrealized gains (losses) on available for sale securities arising during the period (net of tax (benefit), $56 and ($37), respectively) | 209 | (140) |
Add: reclassification adjustment for amortization of unrealized losses on securities transferred from available for sale to held to maturity (net of tax, $1 and $2, respectively) | 6 | 7 |
Other comprehensive income (loss) | 215 | (133) |
Comprehensive Income | $ 3,462 | $ 1,553 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized gains (losses) on arising during the period | $ 56 | $ (37) |
Reclassification adjustment for amortization of unrealized losses on securities transferred | $ 1 | $ 2 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income(Loss) [Member] |
Beginning Balance at Dec. 31, 2017 | $ 68,797 | $ 21,442 | $ 35,693 | $ 11,682 | $ (20) |
Vesting of restricted stock | 137 | (137) | |||
Stock based compensation expense | 213 | 213 | |||
Net income | 1,686 | 1,686 | |||
Other comprehensive income (loss) | (133) | (133) | |||
Ending Balance at Mar. 31, 2018 | 70,563 | 21,579 | 35,769 | 13,368 | (153) |
Beginning Balance at Dec. 31, 2018 | 121,251 | 32,176 | 74,256 | 15,186 | (367) |
Vesting of restricted stock | 211 | (211) | |||
Stock based compensation expense | 270 | 270 | |||
Net income | 3,247 | 3,247 | |||
Change related to restricted stock awards | 38 | (38) | |||
Other comprehensive income (loss) | 215 | 215 | |||
Ending Balance at Mar. 31, 2019 | $ 124,983 | $ 32,387 | $ 74,353 | $ 18,395 | $ (152) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Cash Flows from Operating Activities | ||
Net income | $ 3,247 | $ 1,686 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion, net | 378 | 401 |
Deferred income tax benefit | (94) | (116) |
Provision for loan losses | 325 | 635 |
Stock based compensation expense | 270 | 213 |
Income from bank owned life insurance | (105) | (106) |
Subordinated debt amortization expense | 7 | 7 |
Gain on disposal of premises and equipment | (59) | |
Change in: | ||
Accrued interest receivable and other receivables | (503) | (89) |
Other assets | (3,984) | (18) |
Other liabilities | 5,039 | 330 |
Net cash provided by operating activities | 4,521 | 2,943 |
Activity in available-for-sale securities: | ||
Payments | 806 | 986 |
Maturities and repayments | 30,000 | 30,000 |
Purchases | (43,984) | (27,025) |
Activity in held-to-maturity securities: | ||
Refunded | 650 | |
Purchases of restricted investment in bank stock | (1,113) | (1,644) |
Redemption of restricted investment in bank stock | 1,275 | 340 |
Net (increase) decrease in loan portfolio | (26,935) | (48,996) |
Proceeds from sale of premises and equipment | 69 | |
Purchases of premises and equipment | (280) | (812) |
Net cash used in investing activities | (39,512) | (47,151) |
Cash Flows from Financing Activities | ||
Net decrease in non-interest deposits | (18,005) | (6,777) |
Net increase in interest bearing demand, savings, and time deposits | 64,695 | 30,056 |
Net decrease in Federal Home Loan Bank advances and other borrowings | (10,000) | 10,349 |
Net cash provided by financing activities | 36,690 | 33,628 |
Increase (Decrease) in Cash and Cash Equivalents | 1,699 | (10,580) |
Cash and Cash Equivalents, beginning of period | 58,076 | 37,493 |
Cash and Cash Equivalents, end of period | 59,775 | 26,913 |
Supplementary Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 3,929 | 1,648 |
Cash paid during the period for income taxes | $ 1,831 | |
Right of use assets obtained in exchange for new operating lease liabilities | $ 2,647 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements | Note 1. Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements Organization MainStreet Bancshares Inc. (the “Company”) is a bank holding company incorporated under the laws of the Commonwealth of Virginia whose principal activity is the ownership and management of MainStreet Bank. On May 18, 2016, the stockholders of MainStreet Bank (the “Bank”) approved a Reorganization Agreement and Plan of Share Exchange (“Reorganization”) whereby the Bank would reorganize into a holding company structure. The Plan of Share Exchange called for each outstanding share of Bank common stock to be automatically converted into and exchanged for one share of the Company’s common stock, and the common stockholders of the Bank would become the common stockholders of the Company on the effective date of the Reorganization. The Company is authorized to issue 10,000,000 shares of common stock with a par value of $4.00 per share. Additionally, the Company is authorized to issue 2,000,000 shares of preferred stock at a par value $1.00 per share. There is currently no preferred stock outstanding. There are no plans currently nor does the Board of Directors of the Company anticipate any need in the foreseeable future to issue shares of preferred stock. On July 15, 2016, the Reorganization became effective, and the Bank became a wholly-owned subsidiary of the Company. The holding company is regulated under the Bank Holding Company Act of 1956, as amended (“BHC Act”) and is subject to inspection, examination, and supervision by the Federal Reserve Board. On April 18, 2019, the Company completed the registration of its common stock with the Securities Exchange Commission through its filing of a General Form for Registration of Securities on Form 10 (“Form 10”), pursuant to Section 12(b) of the Securities Exchange Act of 1934. The Company is considered an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the “JOBS Act,” and as defined in Section 2(a) of the Securities Act of 1933, as amended, or the “Securities Act.” We are also a “smaller reporting company” as defined in Exchange Act Rule 12b-2. As such, we may elect to comply with certain reduced public company reporting requirements in future reports that we file with the Securities and Exchange Commission, or the “SEC.” We were approved to list shares of our common stock on the Nasdaq Capital Market under our current symbol “MNSB.” as of April 22, 2019. MainStreet Bank is headquartered in Fairfax, Virginia where it also operates a branch. The Bank was incorporated on March 28, 2003 and received its charter from the Bureau of Financial Institutions of the Commonwealth of Virginia (the “Bureau”) on March 16, 2004. The Bank commenced regular operations on May 26, 2004 and is supervised by the Bureau and the Federal Reserve Bank of Richmond. The Bank is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation. The Bank places special emphasis on serving the needs of individuals, and small and medium-sized Basis of Presentation The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim information and with the instructions to the Quarterly Report on Form 10-Q, The financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof. The balances as of December 31, 2018 have been derived from the audited consolidated financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Form 10 filed by the Company with the U.S. Securities and Exchange Commission on February 15, 2019. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, events through the date of issuance of the financial statements included herein. Principles of Consolidation Cash and cash equivalents Investment securities Securities which are not classified as held to maturity or trading are classified as securities available for sale. Securities available for sale are reported at fair value. Any unrealized gain or loss, net of applicable income taxes, is reported as a separate addition to or reduction from stockholders’ equity. Gains and losses arising from the sale of securities available for sale are recognized based on the specific identification method on a trade-date basis and included in results of operations. Securities held to maturity includes securities purchased with the ability and positive intent to hold to maturity. Debt securities are stated at historical cost adjusted for amortization of premiums and accretion of discount. Any investment security, for which there has been a value impairment deemed by management to be other than temporary, is written down to its estimated market value or fair value with a charge to current operations. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Bank intends to sell the security, whether it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis, and whether the Bank expects to recover the security’s entire amortized cost basis. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Restricted equity securities consist of the Federal Reserve Bank and Federal Home Loan Bank of Atlanta (“FHLB”) stock in the amount of $3.3 million and $2.3 million respectively, as of March 31, 2019, compared to $3.3 million and $2.4 million, respectively, as of December 31, 2018. Restricted equity securities also consisted of $126,800 in Community Bankers Bank stock at March 31, 2019 and December 31, 2018. This restricted stock is recorded at cost because its ownership is restricted and it lacks a market for resale. The Bank is required to maintain Federal Reserve Bank stock at a level of 6% of capital and surplus. The FHLB requires the Bank to maintain stock, at a minimum, in an amount equal to 4.5% of outstanding borrowings and 0.20% of total assets. When evaluating restricted stock for impairment, its value is based on ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Bank does not consider these investments to be impaired at March 31, 2019 or December 31, 2018 and no previous impairment has been recognized. Loans pay-off, A loan’s past due status is based on the contractual due date of the most delinquent payment due. All loans which are 30 or more days past due at the end of the month are reported to the Board of Directors. Commercial loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Consumer loans are generally placed on nonaccrual status when the collection of principal or interest is 120 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on nonaccrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. It is Bank policy to charge-off charged-off, co-makers Impairment of a loan - Troubled Debt Restructuring (TDR) occurs when the Bank agrees to modify the original terms of a loan due to the deterioration in the financial condition of the borrower. TDRs are considered impaired loans. Upon designation as a TDR, the Bank evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Bank concludes that the borrower is able to continue making such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on nonaccrual status at the time of the TDR, the loan will remain on nonaccrual status following the modification and may be returned to accrual status based on the policy for returning loans to accrual status as noted above. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may be eligible to be removed from TDR status in periods subsequent to the restructuring depending on the performance of the loan. As of March 31, 2019, and December 31, 2018, the Bank had approximately $3.4 million of loans classified as TDR. At March 31, 2019 and December 31, 2018, TDR loans consisted of two loans. One loan in the amount of approximately $1.5 million is currently performing in accordance with its modified terms. The other loan in the amount of approximately $1.9 million is on non-accrual. Allowance for Loan Losses - • Management believes that the collectability of the principal is unlikely regardless of delinquency status. • The loan is a consumer loan and is 120 days past due. • The loan is a non-consumer • The borrower is in bankruptcy, unless the debt has been reaffirmed, is well secured and recovery is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance represents an amount that, in management’s judgment, will be adequate to absorb probable losses inherent in the loan portfolio. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics of each loan portfolio segment: • Real estate residential mortgage loans, including equity lines of credit, carry risks associated with the continued credit-worthiness of the borrower and the changes in the value of the collateral. • Real estate construction loans and land improvement carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. • Commercial real estate loans carry risks of the client’s ability to repay the loan from the cash flow derived from the underlying real estate. Risks inherent in managing a commercial real estate portfolio relate to sudden or gradual drops in property values as well as changes in the economic climate. Real estate security diminishes risks only to the extent that a market exists for the subject collateral. These risks are attempted to be mitigated by carefully underwriting loans of this type and by following appropriate loan-to-value • Commercial and industrial loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision. • Consumer secured loans (indirect lending) carry risks associated with the continued credit-worthiness of the borrower and the value of the collateral (e.g., rapidly-depreciating assets such as automobiles). These risks are attempted to be mitigated by following appropriate loan-to-value • Consumer unsecured loans (credit cards) carry risks associated with the continued credit-worthiness of the borrower. Consumer unsecured loans are more likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired and is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal will be ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with the relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions when appropriate. The general component covers non-classified Non-impaired non-classified • Pass rated loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. • Watch rated loans have all the characteristics of pass rated loans but show signs of emerging financial weaknesses which the Bank will continue monitoring more closely Watch rated loans are still performing as agreed. • Special mention loans have a specific defined weakness in the borrower’s operations and the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history is characterized by late payments. The Bank’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. • Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Bank’s credit extension. The payment history for the loan has been inconsistent and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Bank. There is a distinct possibility that the Bank will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet our definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provide evidence that it is probable that the Bank will be unable to collect all amounts due. • Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high. • Loss rated loans are not considered collectible under normal circumstances and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. Other Real Estate Owned (“OREO”)- Interest income on loans Generally, the Bank will return a loan to accrual status when all delinquent interest and principal becomes current and remains current for six consecutive months under the terms of the loan agreement or the loan is well-secured or in process of collection. Upon returning to accrual status, interest payments applied to the principal balance of a loan while in nonaccrual status are recognized as a yield adjustment over the remaining life. Loan origination and commitment fees and certain related direct costs - Premises and equipment Income taxes – When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not Interest and penalties associated with unrecognized tax benefits, if any, would be classified as additional income taxes in the statement of operations. Comprehensive income Stock compensation plans – The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Sholes model is used to estimate the fair value of stock options, while the market price of the Bank’s common stock at the date of grant is used for restricted stock awards. No stock options were granted during 2019 and 2018. Earnings per share – The only potential dilutive stock of the Bank as defined in FASB ASC 260 would be stock options granted to various directors, officers, and employees of the Bank. There were no such options outstanding at March 31, 2019 or December 31, 2018. Restricted stock is included in the computation of basic earnings per share as the holder is entitled to full benefits of a stockholder during the vesting period. Off-balance off-balance Advertising and marketing expense Use of estimates The Company’s critical accounting policies relate to (1) the allowance for loan losses, (2) fair value of financial instruments, (3) derivative financial instruments, and (4) income taxes. These critical accounting policies require the use of estimates, assumptions and judgments which are based on information available as of the date of the financial statements. Accordingly, as this information changes, future financial statements could reflect the use of different estimates, assumptions and judgments. Certain determinations inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. In connection with the determination of the allowances for losses on loans and valuation of other real estate owned management obtains independent appraisals for significant properties. Fair value of financial instruments Derivative Financial Instruments Transfers of financial assets Impact of Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, available-for-sale 2016-13 2016-13. In August 2018, the FASB issued ASU 2018-13, 2018-13 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Investment Securities | Note 2. Investment Securities Investment securities available-for-sale March 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 29,994 $ — $ (8 ) $ 29,986 Collateralized Mortgage Backed 10,400 16 (127 ) 10,289 Subordinated Debt 2,000 28 — 2,028 Municipal Securities 17,068 260 (30 ) 17,298 U.S Governmental Agencies 9,947 — (240 ) 9,707 Total $ 69,409 $ 304 $ (405 ) $ 69,308 Investment securities held-to-maturity March 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair Value Municipal Securities $ 23,987 $ 492 $ (126 ) $ 24,353 Subordinated Debt 1,500 — — 1,500 Total $ 25,487 $ 492 $ (126 ) $ 25,853 Investment securities available-for-sale December 31, 2018 (Dollars in thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 29,996 $ 1 $ — $ 29,997 Collateralized Mortgage Backed 4,967 21 (95 ) 4,893 Subordinated Debt 2,000 15 — 2,015 Municipal Securities 8,869 — (36 ) 8,833 U.S Governmental Agencies 10,516 — (275 ) 10,241 Total $ 56,348 $ 37 $ (406 ) $ 55,979 Investment securities held-to-maturity December 31, 2018 (Dollars in thousands) Amortized Gross Gross Fair Value Municipal Securities $ 24,678 $ 314 $ (260 ) $ 24,732 Subordinated Debt 1,500 — — 1,500 Total $ 26,178 $ 314 $ (260 ) $ 26,232 The scheduled maturities of securities available-for-sale held-to-maturity March 31, 2019 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Fair Value Amortized Fair Value Due in one year or less $ 30,012 $ 30,005 $ — $ — Due from one to five years 582 581 517 530 Due from after five to ten years 3,021 3,041 7,236 7,368 Due after ten years 35,794 35,681 17,734 17,955 Total $ 69,409 $ 69,308 $ 25,487 $ 25,853 Securities with a fair value of $265,064 and $258,046 at March 31, 2019 and December 31, 2018, respectively, were pledged to secure FHLB advances. There were no sales of available-for-sale The following tables summarize the unrealized loss positions of securities available-for-sale held-to-maturity March 31, 2019 Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale: U.S. Treasury Securities $ 29,986 $ (8 ) $ — $ — $ 29,986 $ (8 ) Collateralized Mortgage Backed 7,385 (61 ) 2,581 (66 ) 9,966 (127 ) Municipal Securities 1,872 (21 ) 1,594 (9 ) 3,466 (30 ) U.S Governmental Agencies 1,532 (18 ) 8,085 (222 ) 9,617 (240 ) Total $ 40,775 $ (108 ) $ 12,260 $ (297 ) $ 53,035 $ (405 ) Held-to-maturity: Municipal securities — — 6,435 (126 ) 6,435 (126 ) Total $ — $ — $ 6,435 $ (126 ) $ 6,435 $ (126 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale: Collateralized Mortgage Backed 1,706 (14 ) 2,659 (81 ) 4,365 (95 ) Municipal Securities 3,684 (18 ) 1,588 (18 ) 5,272 (36 ) U.S Government Agencies 6,520 (121 ) 3,586 (154 ) 10,106 (275 ) Total $ 11,910 $ (153 ) $ 7,833 $ (253 ) $ 19,743 $ (406 ) Held-to-maturity: Municipal Securities $ 1,025 $ (5 ) $ 8,899 $ (255 ) $ 9,924 $ (260 ) Total $ 1,025 $ (5 ) $ 8,899 $ (255 ) $ 9,924 $ (260 ) The factors considered in evaluating securities for impairment include whether the Bank intends to sell the security, whether it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis, and whether the Bank expects to recover the security’s entire amortized cost basis. These unrealized losses are primarily attributable to current financial market conditions for these types of investments, particularly changes in interest rates, causing bond prices to decline, and are not attributable to credit deterioration. At March 31, 2019, there was one U.S. Treasury security with a fair value of approximately $30.0 million, five collateralized mortgage backed securities with fair values totaling approximately $7.4 million, one U.S. government agency with a fair value totaling $1.5 million, and two municipal securities with fair values totaling $1.8 million considered temporarily impaired and in an unrealized loss position of less than 12 months. At March 31, 2019, there were six collateralized mortgage backed securities with fair values totaling $2.6 million, eight U.S. government agencies with fair values totaling approximately $8.1 million, and fifteen municipal securities with fair values totaling $8.0 million that were in an unrealized loss position of more than 12 months. The Bank does not consider the securities in the available for sale or held to maturity portfolio to be other-than-temporarily impaired at March 31, 2019 and December 31, 2018. There were no securities sold during 2019 and 2018. All municipal securities originally purchased as available for sale were transferred to held to maturity during 2013. The unrealized loss on the securities transferred to held to maturity is being amortized over the expected life of the securities. The unamortized, unrealized loss, before tax, at March 31, 2019 and December 31, 2018 was $102,336 and $109,420, respectively. |
Loans Receivable
Loans Receivable | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans Receivable | Note 3. Loans Receivable Loans receivable were comprised of the following: March 31, December 31, (Dollars in thousands) 2019 2018 Residential Real Estate: Single family $ 143,761 $ 139,620 Multifamily 7,306 9,182 Farmland 817 825 Commercial Real Estate: Owner-occupied 140,463 121,622 Non-owner 269,059 256,139 Construction and Land Development 192,494 183,551 Commercial – Non Real-Estate: Commercial & industrial 105,391 114,221 Consumer – Non Real Estate: Unsecured 1,429 1,402 Secured 93,870 100,875 Total Gross Loans 954,590 927,437 Less: unearned fees (1,606 ) (1,400 ) Less: unamortized discount on consumer secured loans (60 ) (81 ) Less: allowance for loan losses (9,189 ) (8,831 ) Net Loans $ 943,735 $ 917,125 The secure consumer loans above include $99,088 and $452,190 of overdrafts reclassified as loans for the quarters ended March 31, 2019 and December 31, 2018, respectively. The Bank held no loans for sale at March 31, 2019 and December 31, 2018. The following tables summarize the activity in the allowance for loan losses by loan class for the three months ended March 31, 2019 and 2018. Allowance for Credit Losses By Portfolio Segment For the three months ended March 31, 2019 Real Estate Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 1,019 $ 4,299 $ 1,469 $ 826 $ 1,218 $ 8,831 Charge-offs — — — — — — Recoveries 30 — — 3 — 33 Provision 52 139 66 32 36 325 Ending Balance $ 1,101 $ 4,438 $ 1,535 $ 861 $ 1,254 $ 9,189 Ending Balance: Individually evaluated for Impairment — $ 733 — — — $ 733 Collectively evaluated for Impairment $ 1,101 $ 3,705 $ 1,535 $ 861 $ 1,254 $ 8,456 Allowance for Credit Losses By Portfolio Segment For the three months ended March 31, 2018 Real Estate Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 789 $ 2,339 $ 833 $ 742 $ 1,002 $ 5,705 Charge-offs — — — (10 ) — (10 ) Recoveries — 1 — 2 1 4 Provision 56 254 152 90 83 635 Ending Balance $ 845 $ 2,594 $ 985 $ 824 $ 1,086 $ 6,334 Ending Balance: Individually evaluated for Impairment — $ 202 — — — $ 202 Collectively evaluated for Impairment $ 845 $ 2,392 $ 985 $ 824 $ 1,086 $ 6,132 The Company maintains a general allowance for loan losses based on evaluating known and inherent risks in the loan portfolio, including management’s continuing analysis of the factors underlying the quality of the loan portfolio. These factors include changes in the size and composition of the loan portfolio, actual loan loss experience, and current and anticipated economic conditions. The reserve is an estimate based upon factors and trends identified by management at the time the financial statements are prepared. The following tables summarize information in regards to the recorded investment in loans receivable by loan class as of March 31, 2019 and December 31, 2018: March 31, 2019 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 151,884 $ 1,502 $ 150,382 Commercial Real Estate 409,522 1,939 407,583 Construction and Land Development 192,494 — 192,494 Commercial & Industrial 105,391 — 105,391 Consumer 95,299 — 95,299 Total $ 954,590 $ 3,441 $ 951,149 December 31, 2018 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 149,627 $ 1,510 $ 148,117 Commercial Real Estate 377,761 1,939 375,822 Construction and Land Development 183,551 — 183,551 Commercial & Industrial 114,221 — 114,221 Consumer 102,277 — 102,277 Total $ 927,437 $ 3,449 $ 923,988 The following table summarizes information in regard to impaired loans by loan portfolio class as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Residential Real Estate: Single family $ 1,502 $ 1,502 $ — $ 1,510 $ 1,510 $ — 1,502 1,502 — 1,510 1,510 — With an allowance recorded Commercial Real Estate: Owner occupied 1,939 1,939 733 1,939 1,939 733 1,939 1,939 733 1,939 1,939 733 Total $ 3,441 $ 3,441 $ 733 $ 3,449 $ 3,449 $ 733 The following table presents additional information regarding the impaired loans for the three months ended March 31, 2019 and March 31, 2018: Three Months Ended March 31, 2019 2018 (Dollars in thousands) Average Record Investment Interest Income Recognized Average Record Investment Interest Income Recognized With no related allowance recorded Residential Real Estate: Single family $ 1,506 $ 15 $ 1,526 $ 15 1,506 15 1,526 15 With an allowance recorded Commercial Real Estate: Owner occupied 1,939 — 1,939 — 1,939 — 1,939 — Total $ 3,445 $ 15 $ 3,465 $ 15 If interest on nonaccrual loans had been accrued, such income would have been $35,155 and $26,715 for the three months ended March 31, 2019 and 2018. The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2019 and December 31, 2018: March 31, December 31, (Dollars in thousands) 2019 2018 Commercial Real Estate: Owner occupied $ 1,939 $ 1,939 Total $ 1,939 $ 1,939 Credit quality risk ratings include regulatory classifications of Pass, Watch, Special Mention, Substandard, Doubtful and Loss. Loans classified as Pass have quality metrics to support that the loan will be repaid according to the terms established. Loans classified as Watch have similar characteristics as Pass loans with some emerging signs of financial weaknesses that should be monitored closer. Loans classified as Special Mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of prospects for repayment. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. The following tables summarize the aggregate Pass and criticized categories of Watch, Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of March 31, 2019 and December 31, 2018: March 31, 2019 Special (Dollars in thousands) Pass Watch Mention Substandard Doubtful Total Residential Real Estate: Single Family $ 143,380 $ — $ — $ 381 $ — $ 143,761 Multifamily 7,306 — — — — 7,306 Farmland 817 — — — — 817 Commercial Real Estate: Owner occupied 136,747 — — 1,777 1,939 140,463 Non-owner 269,059 — — — — 269,059 Construction & Land Development 192,494 — — — — 192,494 Commercial – Non Real Estate: Commercial & industrial 100,268 2,384 — 2,739 — 105,391 Consumer – Non Real Estate: Unsecured 1,429 — — — — 1,429 Secured 93,870 — — — — 93,870 Total $ 945,370 $ 2,384 — $ 4,897 $ 1,939 $ 954,590 December 31, 2018 Special (Dollars in thousands) Pass Watch Mention Substandard Doubtful Total Residential Real Estate: Single Family $ 138,483 $ 755 $ — $ 382 $ — $ 139,620 Multifamily 9,182 — — — — 9,182 Farmland 825 — — — — 825 Commercial Real Estate: Owner occupied 117,906 1,777 — — 1,939 121,622 Non-owner 256,139 — — — — 256,139 Construction & Land Development 183,551 — — — — 183,551 Commercial – Non Real Estate: Commercial & industrial 110,631 1,333 $ 2,257 — — 114,221 Consumer – Non Real Estate: Unsecured 1,402 — — — — 1,402 Secured 100,875 — — — — 100,875 Total $ 918,994 $ 3,865 $ 2,257 $ 382 $ 1,939 $ 927,437 The following tables present the segments of the loan portfolio summarized by aging categories as of March 31, 2019 and December 31, 2018: March 31, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Nonaccrual Residential Real Estate: Single Family $ — $ — $ — $ — $ 143,761 $ 143,761 $ — Multifamily — — — — 7,306 7,306 — Farmland — — — — 817 817 — Commercial Real Estate: Owner occupied — — — — 138,524 140,463 1,939 Non-owner — — — — 269,059 269,059 — Construction & Land Development — — — — 192,494 192,494 — Commercial – Non Real Estate: Commercial & industrial — — — — 105,391 105,391 — Consumer – Non Real Estate: Unsecured 86 — 33 119 1,310 1,429 — Secured 46 — — 46 93,824 93,870 — Total $ 132 $ — $ 33 $ 165 $ 952,486 $ 954,590 $ 1,939 December 31, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Nonaccrual Residential Real Estate: Single Family $ — $ — $ — $ — $ 139,620 $ 139,620 $ — Multifamily — — — — 9,182 9,182 — Farmland — — — — 825 825 — Commercial Real Estate: Owner occupied — — — — 119,683 121,622 1,939 Non-owner — — — — 256,139 256,139 — Construction & Land Development — — — — 183,551 183,551 — Commercial – Non Real Estate: Commercial & industrial — — — — 114,221 114,221 — Consumer – Non Real Estate: Unsecured 50 9 11 70 1,332 1,402 — Secured 57 5 — 62 100,813 100,875 — Total $ 107 $ 14 $ 11 $ 132 $ 925,366 $ 927,437 $ 1,939 The Company may grant a concession or modification for economic or legal reasons related to a borrower’s financial condition that it would not otherwise consider resulting in a modified loan that is then identified as a troubled debt restructuring (“TDR”). The Company may modify loans through rate reductions, extensions of maturity, interest only payments, or payment modifications to better match the timing of cash flows due under the modified terms with the cash flows from the borrowers’ operations. Loan modifications are intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. TDRs are considered impaired loans for purposes of calculating the Company’s allowance for loan losses. TDRs are restored to accrual status when the obligation is brought current, has performed in accordance with the modified contractual terms for a reasonable period of time, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. The Company may identify loans for potential restructure primarily through direct communication with the borrower and evaluation of the borrower’s financial statements, revenue projections, tax returns, and credit reports. Even if the borrower is not presently in default, management will consider the likelihood that cash flow shortages, adverse economic conditions and negative trends may result in a payment default in the near future. As of March 31, 2019, and December 31, 2018, the Company had two loans identified as TDRs totaling $3.4 million. At March 31, 2019 and December 31, 2018, one TDR was performing in compliance with the restructured terms and on accrual status. There were no modifications to loans classified as TDRs during the three months ended March 31, 2019. No additional loan commitments were outstanding to these borrowers at March 31, 2019 and December 31, 2018. At both March 31, 2019 and December 31, 2018, there was a specific reserve of $732,892 related to one TDR. The following table details the Company’s TDRs that are on accrual status and non-accrual As of March 31, 2019 Number Accrual Non- Accrual (Dollars in thousands) Of Loans Status Status Total TDRs Residential Real Estate 1 $ 1,502 $ — $ 1,502 Commercial Real Estate 1 — 1,939 1,939 Total 2 $ 1,502 $ 1,939 $ 3,441 The following table details the Company’s TDRs that are on accrual status and non-accrual As of December 31, 2018 Number Accrual Non- Accrual (Dollars in thousands) Of Loans Status Status Total TDRs Residential Real Estate 1 $ 1,510 $ — $ 1,510 Commercial Real Estate 1 — 1,939 1,939 Total 2 $ 1,510 $ 1,939 $ 3,449 The carrying amount of commercial real estate in the process of foreclosure was $1.9 million and $0 at March 31, 2019 and December 31, 2018, respectively. |
Derivatives and Risk Management
Derivatives and Risk Management Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management Activities | Note 4. Derivatives and Risk Management Activities The Bank uses derivative financial instruments (or “derivatives”) primarily to manage risks to the Bank associated with changing interest rates, and to assist customers with their risk management objectives. The Bank classifies these items as free standing derivatives consisting of customer accommodation interest rate loan swaps (or “interest rate loan swaps”). The Bank enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Bank simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Bank receives a floating rate. These back-to-back The following tables summarize key elements of the Banks’s derivative instruments as of March 31, 2019 and December 31, 2018. March 31, 2019 Customer-related interest rate contracts Dollars in thousands) Notional Positions Assets Liabilities Collateral Matched interest rate swap with borrower 44,841 6 2,291 — 2,530 Matched interest rate swap with counterparty 44,841 6 — 2,291 2,530 December 31, 2018 Customer-related interest rate contracts Dollars in thousands) Notional Positions Assets Liabilities Collateral Matched interest rate swap with borrower 36,607 5 1,192 — 1,290 Matched interest rate swap with counterparty 36,607 5 — 1,192 1,290 The Company is able to recognize fee income upon execution of the interest rate swap contract and completed its first contract in the fourth quarter of 2018. This source of fee income is expected to continue to grow in a consistent manner going forward. Interest rate swap fee income for the quarter ended March 31, 2019 and 2018 was $290,000 and $0, respectively. |
Fair Value Presentation
Fair Value Presentation | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Presentation | Note 5. Fair Value Presentation In accordance with FASB ASC 820, “Fair Value Measurements and Disclosure”, the Bank uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. The fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Bank’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous market for the asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is the most representative of fair value under current market conditions. In accordance with the guidance, a hierarchy of valuation techniques is based on whether the inputs to those valuation techniques are observable or unobservable. Observable inputs reflect market data obtained from independent sources, while unobservable inputs reflect the Bank’s market assumptions. The three levels of the fair value hierarchy under FASB ASC 820 based on these two types of inputs are as follows: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities that the reporting entity has the ability to access at the measurement date. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Bank to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the financial statements: Securities available for sale Securities available for sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. As of March 31, 2019, and December 31, 2018, the Bank’s entire portfolio of available for sale securities are considered to be Level 2 securities. Derivative asset (liability) – interest rate swaps on loans As discussed in “Note 4: Derivative Financial Instruments”, the Bank recognizes interest rate swaps at fair value on a recurring basis. The Bank has contracted with a third party vendor to provide valuations for these interest rate swaps using standard valuation techniques and therefore classifies such interest rate swaps as Level 2. The following tables provide the fair value for assets required to be measured and reported at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 29,986 $ — $ 29,986 Collateralized Mortgage Backed — 10,289 — 10,289 Subordinated Debt — 2,028 — 2,028 Municipal Securities — 17,298 — 17,298 U.S. Government Agencies — 9,707 — 9,707 Derivative asset – interest rate swap on loans — 2,291 — 2,291 Total $ — $ 71,599 $ — $ 71,599 Liabilities: Derivative liability – interest rate swap on loans — 2,291 — 2,291 Total $ — $ 2,291 $ — $ 2,291 December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 29,998 $ — $ 29,998 Collateralized Mortgage Backed — 4,893 — 4,893 Subordinated Debt — 2,015 — 2,015 Municipal Securities — 8,833 — 8,833 U.S. Government Agencies — 10,241 — 10,241 Derivative asset – interest rate swap on loans — 1,192 — 1,192 Total $ — $ 57,172 $ — $ 57,172 Liabilities: Derivative liability – interest rate swap on loans — 1,192 — 1,192 Total $ — $ 1,192 $ — $ 1,192 Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market The following describes the valuation techniques used by the Bank to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Impaired loans Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected when due. The measurement of loss associated with impaired loans can be based on either the observable market price of the loan or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Bank using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Bank because of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income. The following table summarizes the value of the (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Impaired Loans Commercial Real Estate $ — $ — $ 1,207 $ 1,207 Total $ — $ — $ 1,207 $ 1,207 Other real estate owned Other real estate owned (“OREO”) is measured at fair value less cost to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Bank. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Bank because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the Allowance for Loan Losses. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the Statements of Income. The Bank did not have other real estate owned as of March 31, 2019 and December 31, 2018. Fair Value of Financial Instruments FASB ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Additionally, in accordance with ASU 2016-01, The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. March 31, 2019 Carrying Estimated Quoted Assets Significant Other Significant (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and due from banks $ 29,741 $ 29,741 $ 29,741 $ — $ — Restricted equity securities 5,732 5,732 — 5,732 — Securities: Available for sale 69,308 69,308 — 69,308 — Held to maturity 25,487 25,853 — 25,853 — Loans, net 943,735 919,905 — — 919,905 Derivative asset – interest rate swap on loans 2,291 2,291 — 2,291 — Bank owned life insurance 14,169 14,169 — 14,169 — Accrued interest receivable 5,644 5,644 — 5,644 — Liabilities: Deposits $ 966,827 $ 970,361 $ — $ 465,396 $ 504,965 Advances from the FHLB 30,000 29,968 — 29,968 — Derivative liability – interest rate swaps on loans 2,291 2,291 — 2,291 — Accrued interest payable 1,643 1,643 — 1,643 — December 31, 2018 Carrying Estimated Quoted Significant Significant (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and due from banks $ 58,076 $ 58,076 $ 58,076 $ — $ — Restricted equity securities 5,894 5,894 — 5,894 — Securities: Available for sale 55,979 55,979 — 55,979 — Held to maturity 26,178 26,323 — 26,323 — Loans, net 917,125 897,765 — — 897,765 Derivative asset – interest rate swap on loans 1,192 1,192 — 1,192 — Bank owned life insurance 14,064 14,064 — 14,064 — Accrued interest receivable 4,333 4,333 — 4,333 — Liabilities: Deposits $ 920,137 $ 920,917 $ — $ 463,552 $ 457,365 Advances from the FHLB 40,000 39,848 — 39,848 — Derivative liability – interest rate swaps on loans 1,192 1,192 — 1,192 — Accrued interest payable 1,103 1,103 — 1,103 — The above information should not be interpreted as an estimate of the fair value of the entire Company since a fair value calculation is only provided for a limited portion of the Company’s assets and liabilities. Due to a wide range of valuation techniques and the degree of subjectivity used in making the estimates, comparisons between the Company’s disclosures and those of other companies may not be meaningful. There were no changes in methodologies or transfers between levels at March 31, 2019 from December 31, 2018. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 6. Earnings Per Common Share Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock which then shared in the earnings of the Bank. There were no such potentially dilutive securities outstanding in 2019 or 2018. On April 30, 2018, the Company issued a 5% stock dividend to stockholders on record as of April 9, 2018. The weighted average number of shares used in the calculation of basic and diluted earnings per share includes unvested restricted shares of the Company’s common stock outstanding. Applicable guidance requires that outstanding un-vested non-forfeitable For the Three Months Ended December 31 (Dollars in thousands) 2019 2018 Net income $ 3,247 $ 1,686 Weighted average number of shares issued, basic and diluted (1) 8,242,873 5,799,496 Net income per share: Basic and diluted income per share $ 0.39 $ 0.29 (1) All share and per share amounts for 2018 reflect the effect of the 5% stock dividend on April 30, 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Note 7. Accumulated Other Comprehensive Loss The following table presents the cumulative balances of the components of accumulated other comprehensive loss net of deferred taxes, as of March 31, 2019 and December 31, 2018: 2019 2018 Unrealized gain/(loss) on securities $ (93 ) $ (358 ) Unrealized loss on securities transferred to HTM (102 ) (109 ) Tax effect 43 100 Total accumulated other comprehensive loss $ (152 ) $ (367 ) |
Leases
Leases | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Leases | Note 8. Leases On January 1, 2019, the Company adopted ASU No. 2016-02 2018-11 right-of-use right-of-use Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. The incremental borrowing rate was equal to the rate of borrowing from the FHLB that aligned with the term of the lease contract. Right-of-use The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. Cash paid for amounts included in the measurement of lease liabilities during the three months ended March 31, 2019 was $62,000. The Company adopted ASC 842 effective January 1, 2019. Prior to January 1, 2019, the Company measured lease expense in accordance with FASB Accounting Standards Codification Topic 840. During the three months ended March 31, 2018, the Company recognized lease expense of $52,000 The Company continuously evaluates current transactions to determine whether a lease obligation should be reported. As of March 31, 2019, the Company has completed the process of registering a new branch to be located in Washington D.C. and is in the process of determining the impact of any lease obligation that will be associated with this branch. March 31, (Dollars in thousands) 2019 Lease liabilities $ 2,655 Right-of-use $ 2,647 Weighted-average remaining lease term – operating leases (in months). 133.5 Weighted-average discount rate – operating leases 3.60 % For the Three Months Ended (Dollars in thousands) March 31, 2019 Lease Cost Operating lease cost $ 72 Total lease costs $ 72 Cash paid for amounts included in measurement of lease liabilities $ 62 The Company is the lessor for three operating leases. One lease is extended on a month-to-month As of March 31, 2019, all of the Company’s lease obligations are classified as operating leases. The Company does not have any finance lease obligations. A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of March 31, 2019 is as follows: (Dollars in thousands) 2019 $ 242 2020 294 2021 298 2022 307 2023 315 Thereafter 1,830 Total undiscounted cash flows $ 3,286 Discount (631 ) Lease liabilities $ 2,655 Minimum annual rental commitments under the lease obligations are as follows as of December 31, 2018: (Dollars in thousands) 2019 $ 202 2020 199 2021 184 2022 100 Thereafter 572 $ 1,257 |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events | Note 9. Subsequent Events On February 15, 2019, MainStreet Bancshares, Inc. filed a General Form for Registration of Securities on Form 10, which we refer to as the “Registration Statement,” to register its common stock, par value $4.00 per share, pursuant to Section 12(b) of the Securities Exchange Act of 1934 (the “Exchange Act”). Effective April 18, 2019, the Company became subject to the reporting and information requirements of the Exchange Act, and as a result will file periodic reports and other information with the SEC, commencing with this Quarterly Report on Form 10-Q. Effective April 22, 2019, the Company’s securities began trading on the Nasdaq Capital Market under our current symbol “MNSB.” On April 9, 2019, the Bank took possession of a commercial property through loan foreclosure. The asset was recorded at estimated fair value less estimated costs to sell based on a recent appraisal. The difference between the recorded amount of the loan and the estimated fair value of the property was $733,000 and charged to the allowance for loan losses. The Bank had previously recorded a specific reserve for this loan equal to this difference. |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization | Organization MainStreet Bancshares Inc. (the “Company”) is a bank holding company incorporated under the laws of the Commonwealth of Virginia whose principal activity is the ownership and management of MainStreet Bank. On May 18, 2016, the stockholders of MainStreet Bank (the “Bank”) approved a Reorganization Agreement and Plan of Share Exchange (“Reorganization”) whereby the Bank would reorganize into a holding company structure. The Plan of Share Exchange called for each outstanding share of Bank common stock to be automatically converted into and exchanged for one share of the Company’s common stock, and the common stockholders of the Bank would become the common stockholders of the Company on the effective date of the Reorganization. The Company is authorized to issue 10,000,000 shares of common stock with a par value of $4.00 per share. Additionally, the Company is authorized to issue 2,000,000 shares of preferred stock at a par value $1.00 per share. There is currently no preferred stock outstanding. There are no plans currently nor does the Board of Directors of the Company anticipate any need in the foreseeable future to issue shares of preferred stock. On July 15, 2016, the Reorganization became effective, and the Bank became a wholly-owned subsidiary of the Company. The holding company is regulated under the Bank Holding Company Act of 1956, as amended (“BHC Act”) and is subject to inspection, examination, and supervision by the Federal Reserve Board. On April 18, 2019, the Company completed the registration of its common stock with the Securities Exchange Commission through its filing of a General Form for Registration of Securities on Form 10 (“Form 10”), pursuant to Section 12(b) of the Securities Exchange Act of 1934. The Company is considered an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the “JOBS Act,” and as defined in Section 2(a) of the Securities Act of 1933, as amended, or the “Securities Act.” We are also a “smaller reporting company” as defined in Exchange Act Rule 12b-2. As such, we may elect to comply with certain reduced public company reporting requirements in future reports that we file with the Securities and Exchange Commission, or the “SEC.” We were approved to list shares of our common stock on the Nasdaq Capital Market under our current symbol “MNSB.” as of April 22, 2019. MainStreet Bank is headquartered in Fairfax, Virginia where it also operates a branch. The Bank was incorporated on March 28, 2003 and received its charter from the Bureau of Financial Institutions of the Commonwealth of Virginia (the “Bureau”) on March 16, 2004. The Bank commenced regular operations on May 26, 2004 and is supervised by the Bureau and the Federal Reserve Bank of Richmond. The Bank is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation. The Bank places special emphasis on serving the needs of individuals, and small and medium-sized |
Basis of Presentation | Basis of Presentation The accompanying financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“US GAAP”) for interim information and with the instructions to the Quarterly Report on Form 10-Q, The financial statements are unaudited; but in the opinion of management include all adjustments (consisting only of normal recurring adjustments) necessary for a fair presentation thereof. The balances as of December 31, 2018 have been derived from the audited consolidated financial statements. These financial statements should be read in conjunction with the audited consolidated financial statements and accompanying notes thereto contained in the Form 10 filed by the Company with the U.S. Securities and Exchange Commission on February 15, 2019. The results of operations for the three months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year ending December 31, 2019, events through the date of issuance of the financial statements included herein. |
Principles of Consolidation | Principles of Consolidation |
Cash and Cash Equivalents | Cash and cash equivalents |
Investment Securities | Investment securities Securities which are not classified as held to maturity or trading are classified as securities available for sale. Securities available for sale are reported at fair value. Any unrealized gain or loss, net of applicable income taxes, is reported as a separate addition to or reduction from stockholders’ equity. Gains and losses arising from the sale of securities available for sale are recognized based on the specific identification method on a trade-date basis and included in results of operations. Securities held to maturity includes securities purchased with the ability and positive intent to hold to maturity. Debt securities are stated at historical cost adjusted for amortization of premiums and accretion of discount. Any investment security, for which there has been a value impairment deemed by management to be other than temporary, is written down to its estimated market value or fair value with a charge to current operations. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Bank intends to sell the security, whether it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis, and whether the Bank expects to recover the security’s entire amortized cost basis. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Restricted equity securities consist of the Federal Reserve Bank and Federal Home Loan Bank of Atlanta (“FHLB”) stock in the amount of $3.3 million and $2.3 million respectively, as of March 31, 2019, compared to $3.3 million and $2.4 million, respectively, as of December 31, 2018. Restricted equity securities also consisted of $126,800 in Community Bankers Bank stock at March 31, 2019 and December 31, 2018. This restricted stock is recorded at cost because its ownership is restricted and it lacks a market for resale. The Bank is required to maintain Federal Reserve Bank stock at a level of 6% of capital and surplus. The FHLB requires the Bank to maintain stock, at a minimum, in an amount equal to 4.5% of outstanding borrowings and 0.20% of total assets. When evaluating restricted stock for impairment, its value is based on ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Bank does not consider these investments to be impaired at March 31, 2019 or December 31, 2018 and no previous impairment has been recognized. |
Loans | Loans pay-off, A loan’s past due status is based on the contractual due date of the most delinquent payment due. All loans which are 30 or more days past due at the end of the month are reported to the Board of Directors. Commercial loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Consumer loans are generally placed on nonaccrual status when the collection of principal or interest is 120 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on nonaccrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. It is Bank policy to charge-off charged-off, co-makers Impairment of a loan - Troubled Debt Restructuring (TDR) occurs when the Bank agrees to modify the original terms of a loan due to the deterioration in the financial condition of the borrower. TDRs are considered impaired loans. Upon designation as a TDR, the Bank evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Bank concludes that the borrower is able to continue making such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on nonaccrual status at the time of the TDR, the loan will remain on nonaccrual status following the modification and may be returned to accrual status based on the policy for returning loans to accrual status as noted above. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may be eligible to be removed from TDR status in periods subsequent to the restructuring depending on the performance of the loan. As of March 31, 2019, and December 31, 2018, the Bank had approximately $3.4 million of loans classified as TDR. At March 31, 2019 and December 31, 2018, TDR loans consisted of two loans. One loan in the amount of approximately $1.5 million is currently performing in accordance with its modified terms. The other loan in the amount of approximately $1.9 million is on non-accrual. Allowance for Loan Losses - • Management believes that the collectability of the principal is unlikely regardless of delinquency status. • The loan is a consumer loan and is 120 days past due. • The loan is a non-consumer • The borrower is in bankruptcy, unless the debt has been reaffirmed, is well secured and recovery is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance represents an amount that, in management’s judgment, will be adequate to absorb probable losses inherent in the loan portfolio. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics of each loan portfolio segment: • Real estate residential mortgage loans, including equity lines of credit, carry risks associated with the continued credit-worthiness of the borrower and the changes in the value of the collateral. • Real estate construction loans and land improvement carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. • Commercial real estate loans carry risks of the client’s ability to repay the loan from the cash flow derived from the underlying real estate. Risks inherent in managing a commercial real estate portfolio relate to sudden or gradual drops in property values as well as changes in the economic climate. Real estate security diminishes risks only to the extent that a market exists for the subject collateral. These risks are attempted to be mitigated by carefully underwriting loans of this type and by following appropriate loan-to-value • Commercial and industrial loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision. • Consumer secured loans (indirect lending) carry risks associated with the continued credit-worthiness of the borrower and the value of the collateral (e.g., rapidly-depreciating assets such as automobiles). These risks are attempted to be mitigated by following appropriate loan-to-value • Consumer unsecured loans (credit cards) carry risks associated with the continued credit-worthiness of the borrower. Consumer unsecured loans are more likely to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired and is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal will be ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with the relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions when appropriate. The general component covers non-classified Non-impaired non-classified • Pass rated loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. • Watch rated loans have all the characteristics of pass rated loans but show signs of emerging financial weaknesses which the Bank will continue monitoring more closely Watch rated loans are still performing as agreed. • Special mention loans have a specific defined weakness in the borrower’s operations and the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history is characterized by late payments. The Bank’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. • Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Bank’s credit extension. The payment history for the loan has been inconsistent and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Bank. There is a distinct possibility that the Bank will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet our definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provide evidence that it is probable that the Bank will be unable to collect all amounts due. • Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high. • Loss rated loans are not considered collectible under normal circumstances and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. Other Real Estate Owned (“OREO”)- Interest income on loans Generally, the Bank will return a loan to accrual status when all delinquent interest and principal becomes current and remains current for six consecutive months under the terms of the loan agreement or the loan is well-secured or in process of collection. Upon returning to accrual status, interest payments applied to the principal balance of a loan while in nonaccrual status are recognized as a yield adjustment over the remaining life. Loan origination and commitment fees and certain related direct costs - |
Premises and Equipment | Premises and equipment |
Income Taxes | Income taxes – When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not Interest and penalties associated with unrecognized tax benefits, if any, would be classified as additional income taxes in the statement of operations. |
Comprehensive Income | Comprehensive income |
Stock Compensation Plans | Stock compensation plans – The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Sholes model is used to estimate the fair value of stock options, while the market price of the Bank’s common stock at the date of grant is used for restricted stock awards. No stock options were granted during 2019 and 2018. |
Earnings Per Share | Earnings per share – The only potential dilutive stock of the Bank as defined in FASB ASC 260 would be stock options granted to various directors, officers, and employees of the Bank. There were no such options outstanding at March 31, 2019 or December 31, 2018. Restricted stock is included in the computation of basic earnings per share as the holder is entitled to full benefits of a stockholder during the vesting period. |
Off-balance Sheet Instruments | Off-balance off-balance |
Advertising and Marketing Expense | Advertising and marketing expense |
Use of Estimates | Use of estimates The Company’s critical accounting policies relate to (1) the allowance for loan losses, (2) fair value of financial instruments, (3) derivative financial instruments, and (4) income taxes. These critical accounting policies require the use of estimates, assumptions and judgments which are based on information available as of the date of the financial statements. Accordingly, as this information changes, future financial statements could reflect the use of different estimates, assumptions and judgments. Certain determinations inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. In connection with the determination of the allowances for losses on loans and valuation of other real estate owned management obtains independent appraisals for significant properties. |
Fair Value of Financial Instruments | Fair value of financial instruments |
Derivative Financial Instruments | Derivative Financial Instruments |
Transfers of Financial Assets | Transfers of financial assets |
Impact of Recently Issued Accounting Pronouncements | Impact of Recently Issued Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, available-for-sale 2016-13 2016-13. In August 2018, the FASB issued ASU 2018-13, 2018-13 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments Schedule [Abstract] | |
Schedule of Investment Securities Available-for-Sale | Investment securities available-for-sale March 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 29,994 $ — $ (8 ) $ 29,986 Collateralized Mortgage Backed 10,400 16 (127 ) 10,289 Subordinated Debt 2,000 28 — 2,028 Municipal Securities 17,068 260 (30 ) 17,298 U.S Governmental Agencies 9,947 — (240 ) 9,707 Total $ 69,409 $ 304 $ (405 ) $ 69,308 Investment securities available-for-sale December 31, 2018 (Dollars in thousands) Amortized Gross Gross Fair Value U.S. Treasury Securities $ 29,996 $ 1 $ — $ 29,997 Collateralized Mortgage Backed 4,967 21 (95 ) 4,893 Subordinated Debt 2,000 15 — 2,015 Municipal Securities 8,869 — (36 ) 8,833 U.S Governmental Agencies 10,516 — (275 ) 10,241 Total $ 56,348 $ 37 $ (406 ) $ 55,979 |
Schedule of Investment Securities Held-to-Maturity | Investment securities held-to-maturity March 31, 2019 (Dollars in thousands) Amortized Gross Gross Fair Value Municipal Securities $ 23,987 $ 492 $ (126 ) $ 24,353 Subordinated Debt 1,500 — — 1,500 Total $ 25,487 $ 492 $ (126 ) $ 25,853 Investment securities held-to-maturity December 31, 2018 (Dollars in thousands) Amortized Gross Gross Fair Value Municipal Securities $ 24,678 $ 314 $ (260 ) $ 24,732 Subordinated Debt 1,500 — — 1,500 Total $ 26,178 $ 314 $ (260 ) $ 26,232 |
Schedule of Scheduled Maturities of Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of securities available-for-sale held-to-maturity March 31, 2019 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Fair Value Amortized Fair Value Due in one year or less $ 30,012 $ 30,005 $ — $ — Due from one to five years 582 581 517 530 Due from after five to ten years 3,021 3,041 7,236 7,368 Due after ten years 35,794 35,681 17,734 17,955 Total $ 69,409 $ 69,308 $ 25,487 $ 25,853 |
Schedule of Unrealized Loss Positions of Securities Available-for-Sale and Held-to-Maturity | The following tables summarize the unrealized loss positions of securities available-for-sale held-to-maturity March 31, 2019 Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale: U.S. Treasury Securities $ 29,986 $ (8 ) $ — $ — $ 29,986 $ (8 ) Collateralized Mortgage Backed 7,385 (61 ) 2,581 (66 ) 9,966 (127 ) Municipal Securities 1,872 (21 ) 1,594 (9 ) 3,466 (30 ) U.S Governmental Agencies 1,532 (18 ) 8,085 (222 ) 9,617 (240 ) Total $ 40,775 $ (108 ) $ 12,260 $ (297 ) $ 53,035 $ (405 ) Held-to-maturity: Municipal securities — — 6,435 (126 ) 6,435 (126 ) Total $ — $ — $ 6,435 $ (126 ) $ 6,435 $ (126 ) December 31, 2018 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale: Collateralized Mortgage Backed 1,706 (14 ) 2,659 (81 ) 4,365 (95 ) Municipal Securities 3,684 (18 ) 1,588 (18 ) 5,272 (36 ) U.S Government Agencies 6,520 (121 ) 3,586 (154 ) 10,106 (275 ) Total $ 11,910 $ (153 ) $ 7,833 $ (253 ) $ 19,743 $ (406 ) Held-to-maturity: Municipal Securities $ 1,025 $ (5 ) $ 8,899 $ (255 ) $ 9,924 $ (260 ) Total $ 1,025 $ (5 ) $ 8,899 $ (255 ) $ 9,924 $ (260 ) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loan Receivable | Loans receivable were comprised of the following: March 31, December 31, (Dollars in thousands) 2019 2018 Residential Real Estate: Single family $ 143,761 $ 139,620 Multifamily 7,306 9,182 Farmland 817 825 Commercial Real Estate: Owner-occupied 140,463 121,622 Non-owner 269,059 256,139 Construction and Land Development 192,494 183,551 Commercial – Non Real-Estate: Commercial & industrial 105,391 114,221 Consumer – Non Real Estate: Unsecured 1,429 1,402 Secured 93,870 100,875 Total Gross Loans 954,590 927,437 Less: unearned fees (1,606 ) (1,400 ) Less: unamortized discount on consumer secured loans (60 ) (81 ) Less: allowance for loan losses (9,189 ) (8,831 ) Net Loans $ 943,735 $ 917,125 |
Schedule of Allowance for Credit Losses by Portfolio Segment | The following tables summarize the activity in the allowance for loan losses by loan class for the three months ended March 31, 2019 and 2018. Allowance for Credit Losses By Portfolio Segment For the three months ended March 31, 2019 Real Estate Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 1,019 $ 4,299 $ 1,469 $ 826 $ 1,218 $ 8,831 Charge-offs — — — — — — Recoveries 30 — — 3 — 33 Provision 52 139 66 32 36 325 Ending Balance $ 1,101 $ 4,438 $ 1,535 $ 861 $ 1,254 $ 9,189 Ending Balance: Individually evaluated for Impairment — $ 733 — — — $ 733 Collectively evaluated for Impairment $ 1,101 $ 3,705 $ 1,535 $ 861 $ 1,254 $ 8,456 Allowance for Credit Losses By Portfolio Segment For the three months ended March 31, 2018 Real Estate Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 789 $ 2,339 $ 833 $ 742 $ 1,002 $ 5,705 Charge-offs — — — (10 ) — (10 ) Recoveries — 1 — 2 1 4 Provision 56 254 152 90 83 635 Ending Balance $ 845 $ 2,594 $ 985 $ 824 $ 1,086 $ 6,334 Ending Balance: Individually evaluated for Impairment — $ 202 — — — $ 202 Collectively evaluated for Impairment $ 845 $ 2,392 $ 985 $ 824 $ 1,086 $ 6,132 |
Schedule of Investment in Loans Receivable by Loan Class | The following tables summarize information in regards to the recorded investment in loans receivable by loan class as of March 31, 2019 and December 31, 2018: March 31, 2019 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 151,884 $ 1,502 $ 150,382 Commercial Real Estate 409,522 1,939 407,583 Construction and Land Development 192,494 — 192,494 Commercial & Industrial 105,391 — 105,391 Consumer 95,299 — 95,299 Total $ 954,590 $ 3,441 $ 951,149 December 31, 2018 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 149,627 $ 1,510 $ 148,117 Commercial Real Estate 377,761 1,939 375,822 Construction and Land Development 183,551 — 183,551 Commercial & Industrial 114,221 — 114,221 Consumer 102,277 — 102,277 Total $ 927,437 $ 3,449 $ 923,988 |
Schedule of Impaired Loan | The following table summarizes information in regard to impaired loans by loan portfolio class as of March 31, 2019 and December 31, 2018: March 31, 2019 December 31, 2018 (Dollars in thousands) Recorded Investment Unpaid Principal Balance Related Allowance Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded Residential Real Estate: Single family $ 1,502 $ 1,502 $ — $ 1,510 $ 1,510 $ — 1,502 1,502 — 1,510 1,510 — With an allowance recorded Commercial Real Estate: Owner occupied 1,939 1,939 733 1,939 1,939 733 1,939 1,939 733 1,939 1,939 733 Total $ 3,441 $ 3,441 $ 733 $ 3,449 $ 3,449 $ 733 The following table presents additional information regarding the impaired loans for the three months ended March 31, 2019 and March 31, 2018: Three Months Ended March 31, 2019 2018 (Dollars in thousands) Average Record Investment Interest Income Recognized Average Record Investment Interest Income Recognized With no related allowance recorded Residential Real Estate: Single family $ 1,506 $ 15 $ 1,526 $ 15 1,506 15 1,526 15 With an allowance recorded Commercial Real Estate: Owner occupied 1,939 — 1,939 — 1,939 — 1,939 — Total $ 3,445 $ 15 $ 3,465 $ 15 |
Schedule of Nonaccrual Loans by Classes of the Loan Portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of March 31, 2019 and December 31, 2018: March 31, December 31, (Dollars in thousands) 2019 2018 Commercial Real Estate: Owner occupied $ 1,939 $ 1,939 Total $ 1,939 $ 1,939 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables summarize the aggregate Pass and criticized categories of Watch, Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of March 31, 2019 and December 31, 2018: March 31, 2019 Special (Dollars in thousands) Pass Watch Mention Substandard Doubtful Total Residential Real Estate: Single Family $ 143,380 $ — $ — $ 381 $ — $ 143,761 Multifamily 7,306 — — — — 7,306 Farmland 817 — — — — 817 Commercial Real Estate: Owner occupied 136,747 — — 1,777 1,939 140,463 Non-owner 269,059 — — — — 269,059 Construction & Land Development 192,494 — — — — 192,494 Commercial – Non Real Estate: Commercial & industrial 100,268 2,384 — 2,739 — 105,391 Consumer – Non Real Estate: Unsecured 1,429 — — — — 1,429 Secured 93,870 — — — — 93,870 Total $ 945,370 $ 2,384 — $ 4,897 $ 1,939 $ 954,590 December 31, 2018 Special (Dollars in thousands) Pass Watch Mention Substandard Doubtful Total Residential Real Estate: Single Family $ 138,483 $ 755 $ — $ 382 $ — $ 139,620 Multifamily 9,182 — — — — 9,182 Farmland 825 — — — — 825 Commercial Real Estate: Owner occupied 117,906 1,777 — — 1,939 121,622 Non-owner 256,139 — — — — 256,139 Construction & Land Development 183,551 — — — — 183,551 Commercial – Non Real Estate: Commercial & industrial 110,631 1,333 $ 2,257 — — 114,221 Consumer – Non Real Estate: Unsecured 1,402 — — — — 1,402 Secured 100,875 — — — — 100,875 Total $ 918,994 $ 3,865 $ 2,257 $ 382 $ 1,939 $ 927,437 |
Schedule of Aging of Past Due | The following tables present the segments of the loan portfolio summarized by aging categories as of March 31, 2019 and December 31, 2018: March 31, 2019 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Nonaccrual Residential Real Estate: Single Family $ — $ — $ — $ — $ 143,761 $ 143,761 $ — Multifamily — — — — 7,306 7,306 — Farmland — — — — 817 817 — Commercial Real Estate: Owner occupied — — — — 138,524 140,463 1,939 Non-owner — — — — 269,059 269,059 — Construction & Land Development — — — — 192,494 192,494 — Commercial – Non Real Estate: Commercial & industrial — — — — 105,391 105,391 — Consumer – Non Real Estate: Unsecured 86 — 33 119 1,310 1,429 — Secured 46 — — 46 93,824 93,870 — Total $ 132 $ — $ 33 $ 165 $ 952,486 $ 954,590 $ 1,939 December 31, 2018 (Dollars in thousands) 30-59 Days Past Due 60-89 Days Past Due Greater than 90 Days Total Past Due Current Total Loans Receivable Nonaccrual Residential Real Estate: Single Family $ — $ — $ — $ — $ 139,620 $ 139,620 $ — Multifamily — — — — 9,182 9,182 — Farmland — — — — 825 825 — Commercial Real Estate: Owner occupied — — — — 119,683 121,622 1,939 Non-owner — — — — 256,139 256,139 — Construction & Land Development — — — — 183,551 183,551 — Commercial – Non Real Estate: Commercial & industrial — — — — 114,221 114,221 — Consumer – Non Real Estate: Unsecured 50 9 11 70 1,332 1,402 — Secured 57 5 — 62 100,813 100,875 — Total $ 107 $ 14 $ 11 $ 132 $ 925,366 $ 927,437 $ 1,939 |
Summary of Troubled Debt Restructurings | The following table details the Company’s TDRs that are on accrual status and non-accrual As of March 31, 2019 Number Accrual Non- Accrual (Dollars in thousands) Of Loans Status Status Total TDRs Residential Real Estate 1 $ 1,502 $ — $ 1,502 Commercial Real Estate 1 — 1,939 1,939 Total 2 $ 1,502 $ 1,939 $ 3,441 The following table details the Company’s TDRs that are on accrual status and non-accrual As of December 31, 2018 Number Accrual Non- Accrual (Dollars in thousands) Of Loans Status Status Total TDRs Residential Real Estate 1 $ 1,510 $ — $ 1,510 Commercial Real Estate 1 — 1,939 1,939 Total 2 $ 1,510 $ 1,939 $ 3,449 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize key elements of the Banks’s derivative instruments as of March 31, 2019 and December 31, 2018. March 31, 2019 Customer-related interest rate contracts Dollars in thousands) Notional Positions Assets Liabilities Collateral Matched interest rate swap with borrower 44,841 6 2,291 — 2,530 Matched interest rate swap with counterparty 44,841 6 — 2,291 2,530 December 31, 2018 Customer-related interest rate contracts Dollars in thousands) Notional Positions Assets Liabilities Collateral Matched interest rate swap with borrower 36,607 5 1,192 — 1,290 Matched interest rate swap with counterparty 36,607 5 — 1,192 1,290 |
Fair Value Presentation (Tables
Fair Value Presentation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value Assets Measured on Recurring Basis | The following tables provide the fair value for assets required to be measured and reported at fair value on a recurring basis as of March 31, 2019 and December 31, 2018: March 31, 2019 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 29,986 $ — $ 29,986 Collateralized Mortgage Backed — 10,289 — 10,289 Subordinated Debt — 2,028 — 2,028 Municipal Securities — 17,298 — 17,298 U.S. Government Agencies — 9,707 — 9,707 Derivative asset – interest rate swap on loans — 2,291 — 2,291 Total $ — $ 71,599 $ — $ 71,599 Liabilities: Derivative liability – interest rate swap on loans — 2,291 — 2,291 Total $ — $ 2,291 $ — $ 2,291 December 31, 2018 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 29,998 $ — $ 29,998 Collateralized Mortgage Backed — 4,893 — 4,893 Subordinated Debt — 2,015 — 2,015 Municipal Securities — 8,833 — 8,833 U.S. Government Agencies — 10,241 — 10,241 Derivative asset – interest rate swap on loans — 1,192 — 1,192 Total $ — $ 57,172 $ — $ 57,172 Liabilities: Derivative liability – interest rate swap on loans — 1,192 — 1,192 Total $ — $ 1,192 $ — $ 1,192 |
Schedule of Financial Assets Measured at Fair Value on a Nonrecurring Basis | The following table summarizes the value of the (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Impaired Loans Commercial Real Estate $ — $ — $ 1,207 $ 1,207 Total $ — $ — $ 1,207 $ 1,207 |
Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments | The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. March 31, 2019 Carrying Estimated Quoted Assets Significant Other Significant (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and due from banks $ 29,741 $ 29,741 $ 29,741 $ — $ — Restricted equity securities 5,732 5,732 — 5,732 — Securities: Available for sale 69,308 69,308 — 69,308 — Held to maturity 25,487 25,853 — 25,853 — Loans, net 943,735 919,905 — — 919,905 Derivative asset – interest rate swap on loans 2,291 2,291 — 2,291 — Bank owned life insurance 14,169 14,169 — 14,169 — Accrued interest receivable 5,644 5,644 — 5,644 — Liabilities: Deposits $ 966,827 $ 970,361 $ — $ 465,396 $ 504,965 Advances from the FHLB 30,000 29,968 — 29,968 — Derivative liability – interest rate swaps on loans 2,291 2,291 — 2,291 — Accrued interest payable 1,643 1,643 — 1,643 — December 31, 2018 Carrying Estimated Quoted Significant Significant (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and due from banks $ 58,076 $ 58,076 $ 58,076 $ — $ — Restricted equity securities 5,894 5,894 — 5,894 — Securities: Available for sale 55,979 55,979 — 55,979 — Held to maturity 26,178 26,323 — 26,323 — Loans, net 917,125 897,765 — — 897,765 Derivative asset – interest rate swap on loans 1,192 1,192 — 1,192 — Bank owned life insurance 14,064 14,064 — 14,064 — Accrued interest receivable 4,333 4,333 — 4,333 — Liabilities: Deposits $ 920,137 $ 920,917 $ — $ 463,552 $ 457,365 Advances from the FHLB 40,000 39,848 — 39,848 — Derivative liability – interest rate swaps on loans 1,192 1,192 — 1,192 — Accrued interest payable 1,103 1,103 — 1,103 — |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share Basic and Diluted | For the Three Months Ended December 31 (Dollars in thousands) 2019 2018 Net income $ 3,247 $ 1,686 Weighted average number of shares issued, basic and diluted (1) 8,242,873 5,799,496 Net income per share: Basic and diluted income per share $ 0.39 $ 0.29 (1) All share and per share amounts for 2018 reflect the effect of the 5% stock dividend on April 30, 2018. |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components Of Accumulated Other Comprehensive Income Loss | The following table presents the cumulative balances of the components of accumulated other comprehensive loss net of deferred taxes, as of March 31, 2019 and December 31, 2018: 2019 2018 Unrealized gain/(loss) on securities $ (93 ) $ (358 ) Unrealized loss on securities transferred to HTM (102 ) (109 ) Tax effect 43 100 Total accumulated other comprehensive loss $ (152 ) $ (367 ) |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Text Block [Abstract] | |
Schedule of Leases Cost | March 31, (Dollars in thousands) 2019 Lease liabilities $ 2,655 Right-of-use $ 2,647 Weighted-average remaining lease term – operating leases (in months). 133.5 Weighted-average discount rate – operating leases 3.60 % For the Three Months Ended (Dollars in thousands) March 31, 2019 Lease Cost Operating lease cost $ 72 Total lease costs $ 72 Cash paid for amounts included in measurement of lease liabilities $ 62 |
Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities as of March 31, 2019 is as follows: (Dollars in thousands) 2019 $ 242 2020 294 2021 298 2022 307 2023 315 Thereafter 1,830 Total undiscounted cash flows $ 3,286 Discount (631 ) Lease liabilities $ 2,655 |
Schedule of Future Minimum Rental Commitments under Lease Obligations | Minimum annual rental commitments under the lease obligations are as follows as of December 31, 2018: (Dollars in thousands) 2019 $ 202 2020 199 2021 184 2022 100 Thereafter 572 $ 1,257 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |||||
Mar. 31, 2019USD ($)SecurityLoan$ / sharesshares | Mar. 31, 2018shares | [1] | Dec. 31, 2018USD ($)SecurityLoan$ / sharesshares | Feb. 15, 2019$ / shares | Apr. 30, 2018 | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Common stock, shares authorized | shares | 10,000,000 | 10,000,000 | |||||
Common stock, par value | $ / shares | $ 4 | $ 4 | $ 4 | ||||
Preferred stock, shares authorized | shares | 2,000,000 | 2,000,000 | |||||
Preferred stock, par value | $ / shares | $ 1 | $ 1 | |||||
Preferred stock, shares outstanding | shares | 0 | 0 | |||||
Investment securities held-to-maturity | $ 25,487,000 | $ 26,178,000 | |||||
Unamortized unrealized loss | $ (102,336) | (109,420) | |||||
Federal reserve bank stock percentage | 6.00% | ||||||
Minimum required percentage of Federal Reserve Bank stock to be maintained of outstanding borrowings | 4.50% | ||||||
Minimum required percentage of Federal Reserve Bank stock to be maintained of total assets | 0.20% | ||||||
Impairment of investments | $ 0 | 0 | |||||
Troubled debt restructuring, impaired loans | $ 3,441,000 | $ 3,449,000 | |||||
Number of loans | SecurityLoan | 2 | 2 | |||||
Financing receivable, modifications, recorded investment, accrual | $ 1,502,000 | $ 1,510,000 | |||||
Financing receivable, modifications, recorded investment, non accrual | 1,939,000 | 1,939,000 | |||||
Unrecognized tax benefits, Income tax penalties and interest accrued | $ 0 | $ 0 | |||||
Tax benefit realization threshold | 50.00% | ||||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Grants in Period | shares | 0 | 0 | |||||
Weighted average number of shares outstanding | shares | 8,242,873 | [1] | 5,799,496 | 5,799,496 | |||
Percentage of stock dividend issued | 5.00% | ||||||
Options outstanding | shares | 0 | 0 | |||||
Federal Reserve Bank [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Restricted equity securities | $ 3,300,000 | $ 2,300,000 | |||||
Federal Home Loan Bank of Atlanta [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Restricted equity securities | 3,300,000 | 2,400,000 | |||||
Community Bankers Bank Stock [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Restricted equity securities | $ 126,800 | $ 126,800 | |||||
Minimum [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Property, plant and equipment, useful life | 3 years | ||||||
Maximum [Member] | |||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||||||
Property, plant and equipment, useful life | 27 years 6 months | ||||||
[1] | All share and per share amounts for 2018 reflect the effect of the 5% stock dividend on April 30, 2018. |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 69,409 | $ 56,348 |
Gross Unrealized Gains | 304 | 37 |
Gross Unrealized Losses | (405) | (406) |
Fair Value | 69,308 | 55,979 |
U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29,994 | 29,996 |
Gross Unrealized Gains | 1 | |
Gross Unrealized Losses | (8) | |
Fair Value | 29,986 | 29,997 |
Collateralized Mortgage Backed [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,400 | 4,967 |
Gross Unrealized Gains | 16 | 21 |
Gross Unrealized Losses | (127) | (95) |
Fair Value | 10,289 | 4,893 |
Subordinated Debt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2,000 | 2,000 |
Gross Unrealized Gains | 28 | 15 |
Fair Value | 2,028 | 2,015 |
Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 17,068 | 8,869 |
Gross Unrealized Gains | 260 | |
Gross Unrealized Losses | (30) | (36) |
Fair Value | 17,298 | 8,833 |
U.S Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,947 | 10,516 |
Gross Unrealized Losses | (240) | (275) |
Fair Value | $ 9,707 | $ 10,241 |
Investment Securities - Sched_2
Investment Securities - Schedule of Investment Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 25,487 | $ 26,178 |
Gross Unrealized Gains | 492 | 314 |
Gross Unrealized Losses | (126) | (260) |
Fair Value | 25,853 | 26,232 |
Municipal Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 23,987 | 24,678 |
Gross Unrealized Gains | 492 | 314 |
Gross Unrealized Losses | (126) | (260) |
Fair Value | 24,353 | 24,732 |
Subordinated Debt [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 1,500 | 1,500 |
Fair Value | $ 1,500 | $ 1,500 |
Investment Securities - Sched_3
Investment Securities - Schedule of Scheduled Maturities of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 30,012 | |
Due from one to five years | 582 | |
Due from after five to ten years | 3,021 | |
Due after ten years | 35,794 | |
Amortized Cost | 69,409 | $ 56,348 |
Available-for-Sale, Fair Value | ||
Due in one year or less | 30,005 | |
Due from one to five years | 581 | |
Due from after five to ten years | 3,041 | |
Due after ten years | 35,681 | |
Total | 69,308 | 55,979 |
Held-to-Maturity, Amortized Cost | ||
Due in one year or less | 0 | |
Due from one to five years | 517 | |
Due from after five to ten years | 7,236 | |
Due after ten years | 17,734 | |
Amortized Cost | 25,487 | 26,178 |
Held-to-Maturity, Fair Value | ||
Due in one year or less | 0 | |
Due from one to five years | 530 | |
Due from after five to ten years | 7,368 | |
Due after ten years | 17,955 | |
Total | $ 25,853 | $ 26,232 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($) | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2019USD ($) | |
Net Investment Income [Line Items] | ||||
Securities pledged as collateral | $ 265,064 | $ 258,046 | ||
Proceeds from sale of available-for-sale securities | 0 | $ 0 | ||
Unamortized unrealized loss | $ (102,336) | $ (109,420) | ||
U.S. Treasury Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Number of securities temporarily impaired | 1 | |||
Available for sale securities ,fair value | $ 30,000,000 | |||
Collateralized Mortgage Backed [Member] | ||||
Net Investment Income [Line Items] | ||||
Number of securities temporarily impaired | 5 | |||
Number of securities temporarily impaired | 6 | |||
Available for sale securities ,fair value | $ 7,400,000 | |||
Available for sale securities ,fair value | $ 2,600,000 | |||
U.S Government Agencies [Member] | ||||
Net Investment Income [Line Items] | ||||
Number of securities temporarily impaired | 1 | |||
Number of securities temporarily impaired | 8 | |||
Available for sale securities ,fair value | $ 1,500,000 | |||
Available for sale securities ,fair value | $ 8,100,000 | |||
Municipal Securities [Member] | ||||
Net Investment Income [Line Items] | ||||
Number of securities temporarily impaired | 2 | |||
Number of securities temporarily impaired | 15 | |||
Available for sale securities ,fair value | $ 1,800,000 | |||
Available for sale securities ,fair value | $ 8,000,000 |
Investment Securities - Sched_4
Investment Securities - Schedule of Unrealized Loss Positions of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Investment Securities [Line Items] | ||
Less than 12 Months, Fair Value | $ 40,775 | $ 11,910 |
Less than 12 Months, Unrealized Loss | (108) | (153) |
12 Months or Longer, Fair Value | 12,260 | 7,833 |
12 Months or Longer, Unrealized Loss | (297) | (253) |
Fair Value | 53,035 | 19,743 |
Unrealized Loss | (405) | (406) |
Less than 12 Months, Fair Value | 1,025 | |
Less than 12 Months, Unrealized Loss | (5) | |
12 Months or Longer, Fair Value | 6,435 | 8,899 |
12 Months or Longer, Unrealized Loss | (126) | (255) |
Fair Value | 6,435 | 9,924 |
Unrealized Loss | (126) | (260) |
U.S. Treasury Securities [Member] | ||
Investment Securities [Line Items] | ||
Less than 12 Months, Fair Value | 29,986 | |
Less than 12 Months, Unrealized Loss | (8) | |
Fair Value | 29,986 | |
Unrealized Loss | (8) | |
Collateralized Mortgage Backed [Member] | ||
Investment Securities [Line Items] | ||
Less than 12 Months, Fair Value | 7,385 | 1,706 |
Less than 12 Months, Unrealized Loss | (61) | (14) |
12 Months or Longer, Fair Value | 2,581 | 2,659 |
12 Months or Longer, Unrealized Loss | (66) | (81) |
Fair Value | 9,966 | 4,365 |
Unrealized Loss | (127) | (95) |
Municipal Securities [Member] | ||
Investment Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,872 | 3,684 |
Less than 12 Months, Unrealized Loss | (21) | (18) |
12 Months or Longer, Fair Value | 1,594 | 1,588 |
12 Months or Longer, Unrealized Loss | (9) | (18) |
Fair Value | 3,466 | 5,272 |
Unrealized Loss | (30) | (36) |
Less than 12 Months, Fair Value | 1,025 | |
Less than 12 Months, Unrealized Loss | (5) | |
12 Months or Longer, Fair Value | 6,435 | 8,899 |
12 Months or Longer, Unrealized Loss | (126) | (255) |
Fair Value | 6,435 | 9,924 |
Unrealized Loss | (126) | (260) |
U.S Government Agencies [Member] | ||
Investment Securities [Line Items] | ||
Less than 12 Months, Fair Value | 1,532 | 6,520 |
Less than 12 Months, Unrealized Loss | (18) | (121) |
12 Months or Longer, Fair Value | 8,085 | 3,586 |
12 Months or Longer, Unrealized Loss | (222) | (154) |
Fair Value | 9,617 | 10,106 |
Unrealized Loss | $ (240) | $ (275) |
Loans Receivable - Schedule of
Loans Receivable - Schedule of Loan Receivable (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | $ 954,590 | $ 927,437 |
Less: unearned fees | (1,606) | (1,400) |
Less: unamortized discount on consumer secured loans | (60) | (81) |
Less: allowance for loan losses | (9,189) | (8,831) |
Net Loans | 943,735 | 917,125 |
Single Family [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 143,761 | 139,620 |
Residential Real Estate Multi Family [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 7,306 | 9,182 |
Residential Real Estate Farm Land [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 817 | 825 |
Owner Occupied [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 140,463 | 121,622 |
Non Owner Occupied [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 269,059 | 256,139 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 192,494 | 183,551 |
Commercial & Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 105,391 | 114,221 |
Unsecured [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 1,429 | 1,402 |
Secured [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | $ 93,870 | $ 100,875 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019USD ($)SecurityLoan | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($)SecurityLoan | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Secure consumer loan include overdrafts reclassified as loans | $ 99,088 | $ 452,190 | |
Bank held loans for sale | 0 | 0 | |
Interest income on nonaccural loans, accrued | 35,155 | $ 26,715 | |
Loans identified as TDRs | $ 3,441,000 | $ 3,449,000 | |
Modifications to loans classified as TDRs | SecurityLoan | 2 | 2 | |
Additional loans | $ 0 | $ 0 | |
Troubled debt restructuring specific reserve | 732,892 | 732,892 | |
Commercial real estate in the process of foreclosure | $ 1,900,000 | $ 0 | |
Tdr [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Modifications to loans classified as TDRs | 0 |
Loans Receivable - Schedule o_2
Loans Receivable - Schedule of Allowance for Credit losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | $ 8,831 | $ 5,705 |
Charge-offs | (10) | |
Recoveries | 33 | 4 |
Provision | 325 | 635 |
Ending Balance | 9,189 | 6,334 |
Individually evaluated for Impairment | 733 | 202 |
Collectively evaluated for Impairment | 8,456 | 6,132 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,019 | 789 |
Recoveries | 30 | |
Provision | 52 | 56 |
Ending Balance | 1,101 | 845 |
Collectively evaluated for Impairment | 1,101 | 845 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 4,299 | 2,339 |
Recoveries | 1 | |
Provision | 139 | 254 |
Ending Balance | 4,438 | 2,594 |
Individually evaluated for Impairment | 733 | 202 |
Collectively evaluated for Impairment | 3,705 | 2,392 |
Construction Development And Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,469 | 833 |
Provision | 66 | 152 |
Ending Balance | 1,535 | 985 |
Collectively evaluated for Impairment | 1,535 | 985 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 826 | 742 |
Charge-offs | (10) | |
Recoveries | 3 | 2 |
Provision | 32 | 90 |
Ending Balance | 861 | 824 |
Collectively evaluated for Impairment | 861 | 824 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,218 | 1,002 |
Recoveries | 1 | |
Provision | 36 | 83 |
Ending Balance | 1,254 | 1,086 |
Collectively evaluated for Impairment | $ 1,254 | $ 1,086 |
Loans Receivable - Schedule o_3
Loans Receivable - Schedule of Investment in Loans Receivable by Loan Class (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | $ 954,590 | $ 927,437 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 3,441 | 3,449 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 951,149 | 923,988 |
Residential Real Estate [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 151,884 | 149,627 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 1,502 | 1,510 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 150,382 | 148,117 |
Commercial Real Estate [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 409,522 | 377,761 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 1,939 | 1,939 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 407,583 | 375,822 |
Real Estate Construction Land And Land Development [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 192,494 | 183,551 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 192,494 | 183,551 |
Commercial and Industrial Sector [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 105,391 | 114,221 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 105,391 | 114,221 |
Consumer Loan [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 95,299 | 102,277 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | $ 95,299 | $ 102,277 |
Loans Receivable - Schedule o_4
Loans Receivable - Schedule of Information of Impaired Loans by Loan Portfolio Class (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | $ 3,441 | $ 3,449 |
Unpaid Principal Balance | 3,441 | 3,449 |
Related Allowance | 733 | 733 |
Single Family [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 1,502 | 1,510 |
Unpaid Principal Balance | 1,502 | 1,510 |
Related Allowance | 0 | 0 |
Recorded Investment | 1,502 | 1,510 |
Unpaid Principal Balance | 1,502 | 1,510 |
Owner Occupied [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 1,939 | 1,939 |
Unpaid Principal Balance | 1,939 | 1,939 |
Related Allowance | 733 | 733 |
Recorded Investment | 1,939 | 1,939 |
Unpaid Principal Balance | 1,939 | 1,939 |
Related Allowance | $ 733 | $ 733 |
Loans Receivable - Schedule o_5
Loans Receivable - Schedule of Additional Information of Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment | $ 3,445 | $ 3,465 |
Interest Income Recognized | 15 | 15 |
Single Family [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment | 1,506 | 1,526 |
Interest Income Recognized | 15 | 15 |
Average Record Investment | 1,506 | 1,526 |
Interest Income Recognized | 15 | 15 |
Owner Occupied [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment | 1,939 | 1,939 |
Interest Income Recognized | 0 | 0 |
Average Record Investment | $ 1,939 | $ 1,939 |
Loans Receivable - Schedule o_6
Loans Receivable - Schedule of Nonaccrual Loans by Classes of the Loan Portfolio (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Schedule Of Financing Receivables Non Accrual Status [Line Items] | ||
Nonaccrual Loans | $ 1,939 | $ 1,939 |
Commercial Real Estate [Member] | Owner Occupied [Member] | ||
Schedule Of Financing Receivables Non Accrual Status [Line Items] | ||
Nonaccrual Loans | $ 1,939 | $ 1,939 |
Loans Receivable - Schedule o_7
Loans Receivable - Schedule of Financing Receivable Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | $ 954,590 | $ 927,437 |
Single Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 143,761 | 139,620 |
Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 7,306 | 9,182 |
Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 817 | 825 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 140,463 | 121,622 |
Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 269,059 | 256,139 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 192,494 | 183,551 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 105,391 | 114,221 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,429 | 1,402 |
Secured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 93,870 | 100,875 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 945,370 | 918,994 |
Pass [Member] | Single Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 143,380 | 138,483 |
Pass [Member] | Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 7,306 | 9,182 |
Pass [Member] | Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 817 | 825 |
Pass [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 136,747 | 117,906 |
Pass [Member] | Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 269,059 | 256,139 |
Pass [Member] | Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 192,494 | 183,551 |
Pass [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 100,268 | 110,631 |
Pass [Member] | Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,429 | 1,402 |
Pass [Member] | Secured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 93,870 | 100,875 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 2,384 | 3,865 |
Watch [Member] | Single Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 755 | |
Watch [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,777 | |
Watch [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 2,384 | 1,333 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 2,257 | |
Special Mention [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 2,257 | |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 4,897 | 382 |
Substandard [Member] | Single Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 381 | 382 |
Substandard [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,777 | |
Substandard [Member] | Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 2,739 | |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,939 | 1,939 |
Doubtful [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | $ 1,939 | $ 1,939 |
Loans Receivable - Schedule o_8
Loans Receivable - Schedule of Aging of Past Due (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | $ 165 | $ 132 |
Current | 952,486 | 925,366 |
Total Loans receivable | 954,590 | 927,437 |
Nonaccrual | 1,939 | 1,939 |
Single Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 143,761 | 139,620 |
Total Loans receivable | 143,761 | 139,620 |
Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 7,306 | 9,182 |
Total Loans receivable | 7,306 | 9,182 |
Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 817 | 825 |
Total Loans receivable | 817 | 825 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 138,524 | 119,683 |
Total Loans receivable | 140,463 | 121,622 |
Nonaccrual | 1,939 | 1,939 |
Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 269,059 | 256,139 |
Total Loans receivable | 269,059 | 256,139 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 192,494 | 183,551 |
Total Loans receivable | 192,494 | 183,551 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 105,391 | 114,221 |
Total Loans receivable | 105,391 | 114,221 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 119 | 70 |
Current | 1,310 | 1,332 |
Total Loans receivable | 1,429 | 1,402 |
Secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 46 | 62 |
Current | 93,824 | 100,813 |
Total Loans receivable | 93,870 | 100,875 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 132 | 107 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 86 | 50 |
Financing Receivables, 30 to 59 Days Past Due [Member] | Secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 46 | 57 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 14 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 9 | |
Financing Receivables, 60 to 89 Days Past Due [Member] | Secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 5 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | 33 | 11 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due Loans | $ 33 | $ 11 |
Loans Receivable - Summary of T
Loans Receivable - Summary of Troubled Debt Restructurings (Detail) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)SecurityLoan | Dec. 31, 2018USD ($)SecurityLoan | |
Financing Receivable Modifications Number Of Contracts [Line Items] | ||
Number of loans | SecurityLoan | 2 | 2 |
Accrual Status | $ 1,502 | $ 1,510 |
Non- Accrual Status | 1,939 | 1,939 |
Total TDRs | $ 3,441 | $ 3,449 |
Residential Real Estate [Member] | ||
Financing Receivable Modifications Number Of Contracts [Line Items] | ||
Number of loans | 1 | 1 |
Accrual Status | $ 1,502 | $ 1,510 |
Total TDRs | $ 1,502 | $ 1,510 |
Commercial Real Estate [Member] | ||
Financing Receivable Modifications Number Of Contracts [Line Items] | ||
Number of loans | 1 | 1 |
Non- Accrual Status | $ 1,939 | $ 1,939 |
Total TDRs | $ 1,939 | $ 1,939 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management Activities - Schedule of Derivative Instruments (Detail) $ in Thousands | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Matched Interest Rate Swap With Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 44,841 | $ 36,607 |
Positions | 6 | 5 |
Assets | $ 2,291 | $ 1,192 |
Collateral Pledges | 2,530 | 1,290 |
Matched Interest Rate Swaps With Counterparty [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 44,841 | $ 36,607 |
Positions | 6 | 5 |
Liabilities | $ 2,291 | $ 1,192 |
Collateral Pledges | $ 2,530 | $ 1,290 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Interest rate swap fee income | $ 290,000 | $ 0 |
Fair Value Presentation - Sched
Fair Value Presentation - Schedule of Fair Value Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Investment securities available-for-sale | $ 69,308 | $ 55,979 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 29,986 | 29,997 |
Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 10,289 | 4,893 |
Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 2,028 | 2,015 |
Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 17,298 | 8,833 |
U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | 9,707 | 10,241 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Total | 71,599 | 57,172 |
Liabilities: | ||
Total | 2,291 | 1,192 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Assets: | ||
Derivative asset | 2,291 | 1,192 |
Liabilities: | ||
Derivative liability | 2,291 | 1,192 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 29,986 | 29,998 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 10,289 | 4,893 |
Fair Value, Measurements, Recurring [Member] | Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 2,028 | 2,015 |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 17,298 | 8,833 |
Fair Value, Measurements, Recurring [Member] | U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | 9,707 | 10,241 |
Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 69,308 | 55,979 |
Derivative asset | 2,291 | 1,192 |
Liabilities: | ||
Derivative liability | 2,291 | 1,192 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Total | 71,599 | 57,172 |
Liabilities: | ||
Total | 2,291 | 1,192 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Assets: | ||
Derivative asset | 2,291 | 1,192 |
Liabilities: | ||
Derivative liability | 2,291 | 1,192 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 29,986 | 29,998 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 10,289 | 4,893 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 2,028 | 2,015 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 17,298 | 8,833 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | $ 9,707 | $ 10,241 |
Fair Value Presentation - Addit
Fair Value Presentation - Additional Information (Detail) - USD ($) | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Disclosures [Abstract] | ||
Other real estate owned | $ 0 | $ 0 |
Fair Value Presentation - Sch_2
Fair Value Presentation - Schedule of Financial Assets Measured at Fair Value on a Nonrecurring Basis (Detail) - Fair Value, Measurements, Nonrecurring [Member] $ in Thousands | Mar. 31, 2019USD ($) |
Assets: | |
Assets | $ 1,207 |
Commercial Real Estate [Member] | |
Assets: | |
Assets | 1,207 |
Level 3 [Member] | |
Assets: | |
Assets | 1,207 |
Level 3 [Member] | Commercial Real Estate [Member] | |
Assets: | |
Assets | $ 1,207 |
Fair Value Presentation - Sch_3
Fair Value Presentation - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Cash and due from banks | $ 29,741 | $ 27,886 |
Restricted equity securities | 5,732 | 5,894 |
Securities: | ||
Available for sale | 69,308 | 55,979 |
Held to maturity | 25,487 | 26,178 |
Bank owned life insurance | 14,169 | 14,064 |
Level 1 [Member] | ||
Assets: | ||
Cash and due from banks | 29,741 | 58,076 |
Level 2 [Member] | ||
Assets: | ||
Restricted equity securities | 5,732 | 5,894 |
Securities: | ||
Available for sale | 69,308 | 55,979 |
Held to maturity | 25,853 | 26,323 |
Derivative asset - interest rate swap on loans | 2,291 | 1,192 |
Bank owned life insurance | 14,169 | 14,064 |
Accrued interest receivable | 5,644 | 4,333 |
Liabilities: | ||
Deposits | 465,396 | 463,552 |
Advances from the FHLB | 29,968 | 39,848 |
Derivative liability - interest rate swaps on loans | 2,291 | 1,192 |
Accrued interest payable | 1,643 | 1,103 |
Level 3 [Member] | ||
Securities: | ||
Loans, net | 919,905 | 897,765 |
Liabilities: | ||
Deposits | 504,965 | 457,365 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and due from banks | 29,741 | 58,076 |
Restricted equity securities | 5,732 | 5,894 |
Securities: | ||
Available for sale | 69,308 | 55,979 |
Held to maturity | 25,487 | 26,178 |
Loans, net | 943,735 | 917,125 |
Derivative asset - interest rate swap on loans | 2,291 | 1,192 |
Bank owned life insurance | 14,169 | 14,064 |
Accrued interest receivable | 5,644 | 4,333 |
Liabilities: | ||
Deposits | 966,827 | 920,137 |
Advances from the FHLB | 30,000 | 40,000 |
Derivative liability - interest rate swaps on loans | 2,291 | 1,192 |
Accrued interest payable | 1,643 | 1,103 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and due from banks | 29,741 | 58,076 |
Restricted equity securities | 5,732 | 5,894 |
Securities: | ||
Available for sale | 69,308 | 55,979 |
Held to maturity | 25,853 | 26,323 |
Loans, net | 919,905 | 897,765 |
Derivative asset - interest rate swap on loans | 2,291 | 1,192 |
Bank owned life insurance | 14,169 | 14,064 |
Accrued interest receivable | 5,644 | 4,333 |
Liabilities: | ||
Deposits | 970,361 | 920,917 |
Advances from the FHLB | 29,968 | 39,848 |
Derivative liability - interest rate swaps on loans | 2,291 | 1,192 |
Accrued interest payable | $ 1,643 | $ 1,103 |
Earnings Per Share - Additional
Earnings Per Share - Additional Information (Detail) - shares | 3 Months Ended | ||
Mar. 31, 2019 | Mar. 31, 2018 | Apr. 30, 2018 | |
Earnings Per Share [Abstract] | |||
Outstanding potentially dilutive securities | 0 | 0 | |
Percentage of stock dividends to stockholders | 5.00% |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Earnings Per Share Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |||
Earnings Per Share [Abstract] | |||||
Net income | $ 3,247 | $ 1,686 | |||
Weighted average number of shares issued, basic and diluted | 8,242,873 | [1] | 5,799,496 | [1] | 5,799,496 |
Net income per share: | |||||
Basic and diluted income per share | $ 0.39 | $ 0.29 | |||
[1] | All share and per share amounts for 2018 reflect the effect of the 5% stock dividend on April 30, 2018. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income Loss (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Accumulated Other Comprehensive Loss [Line Items] | ||
Tax effect | $ 43 | $ 100 |
Total accumulated other comprehensive loss | (152) | (367) |
Unrealized gain/(loss) on securities [Member] | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Unrealized gain/(loss) on securities | (93) | (358) |
Unrealized loss on securities transferred to HTM [Member] | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Unrealized gain/(loss) on securities | $ (102) | $ (109) |
Leases - Additional Information
Leases - Additional Information (Detail) | 3 Months Ended | ||
Mar. 31, 2019USD ($)Lease | Mar. 31, 2018USD ($) | Jan. 01, 2019USD ($) | |
Leases [Abstract] | |||
Operating Lease, Right-of-Use Asset | $ 2,647,000 | $ 2,700,000 | |
Operating Lease, Liability | 2,655,000 | $ 2,700,000 | |
Operating leases expense | $ 62,000 | $ 52,000 | |
Operating lease, number of leases | Lease | 3 | ||
Lessor, operating lease, option to extend | One lease is extended on a month-to-month basis while two of these leases have arrangements for over twelve months with an option to extend the lease terms. | ||
Rent income on operating leases per month | $ 6,000 | ||
Financing lease obligation | 0 | ||
Finance lease right of use asset | $ 0 |
Leases - Schedule of Leases Cos
Leases - Schedule of Leases Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Jan. 01, 2019 | |
Leases [Abstract] | ||
Lease liabilities | $ 2,655 | $ 2,700 |
Right-of-use assets | $ 2,647 | $ 2,700 |
Weighted-average remaining lease term - operating leases (in months). | 133 months 15 days | |
Weighted-average discount rate - operating leases | 3.60% | |
Lease Cost | ||
Operating lease cost | $ 72 | |
Total lease costs | 72 | |
Cash paid for amounts included in measurement of lease liabilities | $ 62 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Leases [Abstract] | ||
2019 | $ 242 | |
2020 | 294 | |
2021 | 298 | |
2022 | 307 | |
2023 | 315 | |
Thereafter | 1,830 | |
Total undiscounted cash flows | 3,286 | |
Total undiscounted cash flows | 3,286 | |
Discount | (631) | |
Lease liabilities | $ 2,655 | $ 2,700 |
Leases - Schedule of Future Min
Leases - Schedule of Future Minimum Rental Commitments under Lease Obligations (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases [Abstract] | |
2019 | $ 0 |
2019 | 202 |
2020 | 199 |
2021 | 184 |
2022 | 100 |
2023 | 0 |
Thereafter | 572 |
Total future minimum lease payments | $ 1,257 |
Subsequent Events - Additional
Subsequent Events - Additional Information (Detail) - USD ($) | Apr. 09, 2019 | Mar. 31, 2019 | Feb. 15, 2019 | Dec. 31, 2018 |
Subsequent Event [Line Items] | ||||
Common stock, par value | $ 4 | $ 4 | $ 4 | |
Subsequent Event [Member] | ||||
Subsequent Event [Line Items] | ||||
Fair value option loans held as assets, aggregate difference | $ 733,000 |