Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 02, 2021 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
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 Shell Company | false | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Common Stock, Shares Outstanding | 7,594,781 | |
Entity File Number | 001-38817 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 81-2871064 | |
Entity Address, Address Line One | 10089 Fairfax Boulevard | |
Entity Address, City or Town | Fairfax | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22030 | |
City Area Code | 703 | |
Local Phone Number | 481-4567 | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Common Stock | |
Trading Symbol | MNSB | |
Security Exchange Name | NASDAQ | |
Depositary Shares [Member] | ||
Document Information [Line Items] | ||
Title of 12(b) Security | Depositary Shares (each representing a 1/40thinterest in a share of 7.50% Series A Fixed-RateNon-Cumulative Perpetual Preferred Stock) | |
Trading Symbol | MNSBP | |
Security Exchange Name | NASDAQ |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 67,992 | $ 75,935 |
Federal funds sold | 65,725 | 31,593 |
Cash and cash equivalents | 133,717 | 107,528 |
Investment securities available-for-sale, at fair value | 171,603 | 147,414 |
Investment securities held-to-maturity, at amortized cost | 26,081 | 22,520 |
Restricted securities, at cost | 5,039 | 4,616 |
Loans held for sale | 57,006 | |
Loans, net of allowance for loan losses of $11,428 and $12,877, respectively | 1,246,331 | 1,230,379 |
Premises and equipment, net | 14,795 | 14,289 |
Other real estate owned, net | 1,158 | 1,180 |
Accrued interest and other receivables | 4,718 | 9,604 |
Bank owned life insurance | 35,987 | 25,341 |
Computer software, net of amortization | 1,165 | |
Other assets | 16,605 | 23,288 |
Total Assets | 1,657,199 | 1,643,165 |
Liabilities | ||
Non-interest bearing deposits | 475,157 | 370,497 |
Interest bearing demand deposits | 63,622 | 70,307 |
Savings and NOW deposits | 79,556 | 74,099 |
Money market deposits | 310,776 | 426,600 |
Time deposits | 485,255 | 496,743 |
Total deposits | 1,414,366 | 1,438,246 |
Subordinated debt, net | 40,635 | 14,834 |
Other liabilities | 18,169 | 22,420 |
Total Liabilities | 1,473,170 | 1,475,500 |
Stockholders’ Equity | ||
Preferred stock, $1.00 par value, 2,000,000 shares authorized; 28,750 shares issued and outstanding as of September 30, 2021 and December 31, 2020 | 27,263 | 27,263 |
Common stock, $4.00 par value, 10,000,000 shares authorized; issued and outstanding 7,593,749 shares (including 228,257 nonvested shares) for September 30, 2021 and 7,443,842 shares (including 161,435 nonvested shares) for December 31, 2020 | 29,462 | 29,130 |
Capital surplus | 67,152 | 66,116 |
Retained earnings | 59,920 | 44,179 |
Accumulated other comprehensive income | 232 | 977 |
Total Stockholders’ Equity | 184,029 | 167,665 |
Total Liabilities and Stockholders’ Equity | $ 1,657,199 | $ 1,643,165 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Loans, net of allowance for loan losses | $ 11,428 | $ 12,877 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, authorized shares | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 28,750 | 28,750 |
Preferred stock, shares outstanding | 28,750 | 28,750 |
Common stock, par value | $ 4 | $ 4 |
Common stock, authorized shares | 10,000,000 | 10,000,000 |
Common stock, shares issued | 7,593,749 | 7,443,842 |
Common stock, shares outstanding | 7,593,749 | 7,443,842 |
Common stock, non-vested shares | 228,257 | 161,435 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest Income | ||||
Interest and fees on loans | $ 15,162,000 | $ 15,083,000 | $ 46,211,000 | $ 43,702,000 |
Interest on investments securities | 585,000 | 491,000 | 1,712,000 | 1,488,000 |
Interest on federal funds sold | 38,000 | 12,000 | 73,000 | 416,000 |
Total Interest Income | 15,785,000 | 15,586,000 | 47,996,000 | 45,606,000 |
Interest Expense | ||||
Interest on interest bearing DDA deposits | 60,000 | 56,000 | 170,000 | 209,000 |
Interest on savings and NOW deposits | 38,000 | 55,000 | 127,000 | 169,000 |
Interest on money market deposits | 148,000 | 490,000 | 645,000 | 1,742,000 |
Interest on time deposits | 1,795,000 | 2,841,000 | 6,039,000 | 9,740,000 |
Interest on Federal Home Loan Bank advances and other borrowings | 13,000 | 107,000 | ||
Interest on subordinated debt | 541,000 | 245,000 | 1,346,000 | 727,000 |
Total Interest Expense | 2,582,000 | 3,700,000 | 8,327,000 | 12,694,000 |
Net Interest Income | 13,203,000 | 11,886,000 | 39,669,000 | 32,912,000 |
Provision for (Recovery of) Loan Losses | 290,000 | 635,000 | (1,470,000) | 6,560,000 |
Net Interest Income After (Recovery of) Provision For Loan Losses | 12,913,000 | 11,251,000 | 41,139,000 | 26,352,000 |
Non-Interest Income | ||||
Deposit account service charges | 642,000 | 487,000 | 1,802,000 | 1,407,000 |
Bank owned life insurance income | 252,000 | 199,000 | 646,000 | 595,000 |
Loan swap fee income | 0 | 1,851,000 | 0 | 2,677,000 |
Net gain on held-to-maturity securities | 3,197 | |||
Net gain (loss) on sale of loans | (40,000) | 33,000 | 434,000 | 33,000 |
Other fee income | 632,000 | 288,000 | 1,602,000 | 878,000 |
Total Non-Interest Income | 1,486,000 | 2,858,000 | 4,487,000 | 5,590,000 |
Non-Interest Expense | ||||
Salaries and employee benefits | 4,847,000 | 4,495,000 | 14,276,000 | 13,191,000 |
Furniture and equipment expenses | 716,000 | 574,000 | 1,743,000 | 1,528,000 |
Advertising and marketing | 438,000 | 266,000 | 1,115,000 | 713,000 |
Occupancy expenses | 399,000 | 332,000 | 1,092,000 | 910,000 |
Outside services | 292,000 | 215,000 | 908,000 | 696,000 |
Administrative expenses | 202,000 | 167,000 | 493,000 | 508,000 |
Other operating expenses | 1,567,000 | 1,589,000 | 4,517,000 | 4,595,000 |
Total Non-Interest Expense | 8,461,000 | 7,638,000 | 24,144,000 | 22,141,000 |
Income Before Income Taxes | 5,938,000 | 6,471,000 | 21,482,000 | 9,801,000 |
Income Tax Expense | 1,155,000 | 1,299,000 | 4,124,000 | 1,793,000 |
Net Income | 4,783,000 | 5,172,000 | 17,358,000 | 8,008,000 |
Preferred Stock Dividends | 539,000 | 1,617,000 | ||
Net Income Available To Common Shareholders | $ 4,244,000 | $ 5,172,000 | $ 15,741,000 | $ 8,008,000 |
Net Income Per Common Share: | ||||
Basic | $ 0.56 | $ 0.63 | $ 2.09 | $ 0.97 |
Diluted | $ 0.56 | $ 0.63 | $ 2.09 | $ 0.97 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Comprehensive Income, net of taxes | ||||
Net Income | $ 4,783 | $ 5,172 | $ 17,358 | $ 8,008 |
Other comprehensive income (loss), net of tax: | ||||
Unrealized gains (losses) on available for sale securities arising during the period (net of tax (benefit) expense, ($90) and ($1), respectively, for the three months ended September 30, and ($213) and $136, respectively for the nine months ended September 30). | (349) | (7) | (760) | 514 |
Add: reclassification adjustment for amortization of unrealized losses on securities transferred from available for sale to held to maturity (net of tax, $1 and $1, respectively, for the three months ended September 30, and $4 and $4, respectively, for the nine months ended September 30). | 5 | 5 | 15 | 15 |
Other comprehensive income (loss) | (344) | (2) | (745) | 529 |
Comprehensive Income | $ 4,439 | $ 5,170 | $ 16,613 | $ 8,537 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized gains (losses) on arising during the period | $ (90) | $ (1) | $ (213) | $ 136 |
Reclassification adjustment for amortization of unrealized losses on securities transferred | $ 1 | $ 1 | $ 4 | $ 4 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income [Member] |
Beginning Balance at Dec. 31, 2019 | $ 137,034 | $ 32,397 | $ 75,117 | $ 29,097 | $ 423 | |
Preferred stock issued, net | 27,527 | $ 27,527 | ||||
Vesting of restricted stock | 303 | (303) | ||||
Stock based compensation expense | 1,153 | 1,153 | ||||
Common stock repurchased | (990) | (240) | (750) | |||
Net income | 8,008 | 8,008 | ||||
Other comprehensive income (loss) | 529 | 529 | ||||
Ending Balance at Sep. 30, 2020 | 173,261 | 27,527 | 32,460 | 75,217 | 37,105 | 952 |
Beginning Balance at Jun. 30, 2020 | 140,170 | 32,433 | 74,850 | 31,933 | 954 | |
Preferred stock issued, net | 27,527 | 27,527 | ||||
Vesting of restricted stock | 27 | (27) | ||||
Stock based compensation expense | 394 | 394 | ||||
Net income | 5,172 | 5,172 | ||||
Other comprehensive income (loss) | (2) | (2) | ||||
Ending Balance at Sep. 30, 2020 | 173,261 | 27,527 | 32,460 | 75,217 | 37,105 | 952 |
Beginning Balance at Dec. 31, 2020 | 167,665 | 27,263 | 29,130 | 66,116 | 44,179 | 977 |
Vesting of restricted stock | 332 | (332) | ||||
Stock based compensation expense | 1,368 | 1,368 | ||||
Dividends on preferred stock | (1,617) | (1,617) | ||||
Net income | 17,358 | 17,358 | ||||
Other comprehensive income (loss) | (745) | (745) | ||||
Ending Balance at Sep. 30, 2021 | 184,029 | 27,263 | 29,462 | 67,152 | 59,920 | 232 |
Beginning Balance at Jun. 30, 2021 | 179,628 | 27,263 | 29,446 | 66,667 | 55,676 | 576 |
Vesting of restricted stock | 16 | (16) | ||||
Stock based compensation expense | 501 | 501 | ||||
Dividends on preferred stock | (539) | (539) | ||||
Net income | 4,783 | 4,783 | ||||
Other comprehensive income (loss) | (344) | (344) | ||||
Ending Balance at Sep. 30, 2021 | $ 184,029 | $ 27,263 | $ 29,462 | $ 67,152 | $ 59,920 | $ 232 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 17,358,000 | $ 8,008,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion, net | 1,390,000 | 1,284,000 |
Deferred income tax expense (benefit) | 239,000 | (2,208,000) |
Provision for (recovery of) loan losses | (1,470,000) | 6,560,000 |
Writedown of other real estate owned | 22,000 | 32,000 |
Gain on sale of loans | (434,000) | (33,000) |
Stock based compensation expense | 1,368,000 | 1,153,000 |
Income from bank owned life insurance | (646,000) | (595,000) |
Subordinated debt amortization expense | 164,000 | 22,000 |
Gain on disposal of premises and equipment | (30,000) | (36,000) |
Gain on call of held-to-maturity securities | (3,197) | |
Proceeds from sale of loans | 31,264,000 | |
Amortization of operating lease right-of-use assets | 357,000 | 287,000 |
Change in: | ||
Accrued interest receivable and other receivables | 4,789,000 | (3,159,000) |
Other assets | 6,253,000 | (10,686,000) |
Other liabilities | (4,251,000) | 11,159,000 |
Net cash provided by operating activities | 56,370,000 | 11,788,000 |
Activity in available-for-sale securities: | ||
Payments | 4,980,000 | 6,209,000 |
Maturities | 317,000,000 | 160,000,000 |
Purchases | (347,449,000) | (191,968,000) |
Activity in held-to-maturity securities: | ||
Purchases | (5,499,000) | (1,005,000) |
Called | 1,775,000 | 1,700,000 |
Purchases of restricted investment in bank stock | (750,000) | (1,222,000) |
Redemption of restricted investment in bank stock | 327,000 | 2,763,000 |
Net (increase) decrease in loan portfolio | 11,694,000 | (256,406,000) |
Purchase of bank owned life insurance | (10,000,000) | |
Computer software developed | (1,165,000) | |
Proceeds from sale of premises and equipment | 51,000 | 51,000 |
Purchases of premises and equipment | (1,285,000) | (1,159,000) |
Net cash used in investing activities | (30,321,000) | (281,037,000) |
Cash Flows from Financing Activities | ||
Net increase in non-interest deposits | 104,660,000 | 163,941,000 |
Net increase (decrease) in interest bearing demand, savings, and time deposits | (128,540,000) | 181,481,000 |
Net decrease in Federal Home Loan Bank advances and other borrowings | (40,000,000) | |
Net increase in subordinated debt, net issuance costs | 25,637,000 | |
Issuance of preferred stock, net | 27,527,000 | |
Cash dividends paid on preferred stock | (1,617,000) | |
Repurchases of common stock | (990,000) | |
Net cash provided by financing activities | 140,000 | 331,959,000 |
Increase in Cash and Cash Equivalents | 26,189,000 | 62,710,000 |
Cash and Cash Equivalents, beginning of period | 107,528,000 | 64,844,000 |
Cash and Cash Equivalents, end of period | 133,717,000 | 127,554,000 |
Supplementary Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 7,801,000 | 12,803,000 |
Cash paid during the period for income taxes | 5,291,000 | 2,255,000 |
Right of use assets obtained in exchange for new operating lease liabilities | 1,907,000 | |
Transfers from loans to other real estate owned | $ 405,000 | |
Loans transferred from held-for-sale to held-for-investment | $ 26,046,000 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements | 9 Months Ended |
Sep. 30, 2021 | |
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 financial holding company incorporated under the laws of the Commonwealth of Virginia whose primary activity is the ownership and management of MainStreet Bank (the “Bank”). On October 12, 2021, the Company declared itself to be a financial holding company in place of a bank holding company. The Company elected this change in order to engage in nonbanking activities that are deemed to be closely related to banking. 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 28,750 shares of preferred stock outstanding. The 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 Board of Governors of the Federal Reserve System (the “Federal Reserve”). On April 18, 2019, the Company completed the registration of its common stock with the Securities Exchange Commission (the “SEC”) 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. We were approved to list depositary shares of preferred stock on the Nasdaq Capital Market on the symbol “MNSBP” as of September 16, 2020. Each depositary share represents a 140 th The 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. 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 business and professional concerns in the Washington, D.C. metropolitan area. In August 2021, MainStreet Bancshares, Inc. established the subsidiary MainStreet Community Capital, LLC, to be a community development entity (“CDE”). This CDE will be an intermediary vehicle for the provision of loans and investments in Low-Income Communities (“LICs”). On October 25, 2021, MainStreet Bancshares, Inc. formally introduced Avenu TM TM 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, as applicable to a smaller reporting company. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. 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, 2020 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-K filed by the Company with the SEC on March 23, 2021. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any other period. Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from the estimates. The Company’s critical accounting policies relate to (1) the allowance for loan losses and (2) fair value of financial instruments. 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. Capitalization of software development costs - We capitalize certain costs incurred to develop commercial software products. For software services that are to be sold, significant areas of judgment include: establishing when technological feasibility has been met and costs should be capitalized, determining the appropriate period over which to amortize the capitalized costs based on the estimated useful lives, estimating the marketability of the commercial software products and related future revenues, and assessing the unamortized cost balances for impairment. Costs incurred prior to establishing technological feasibility are expensed as incurred. Amortization begins on the date of general release and the appropriate amortization period is based on estimates of future revenues from sales of the products. We consider various factors to project marketability and future revenues, including an assessment of alternative solutions or products, current and historical demand for a similar product, and anticipated changes in technology that may make the product obsolete. For internal use software, capitalization begins after the preliminary project stage is complete. Costs incurred prior to this are expensed as incurred. Significant estimates and assumptions include determining the appropriate amortization period based on the estimated useful life A significant change in an estimate or assumptions related to one or more software products could result in a material change to our results of operations. Impact of Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASU’s 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASU’s have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. The Company has formed a Committee to oversee the accounting impact of this ASU. In anticipation of the ASU, the Company is working with a third party to compile data and develop an estimate using historical and qualitative data based on the requirements of ASU 2016-13 and have begun to test parallel models. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. In March 2020, the FASB issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company is monitoring developments into rates that may be acceptable alternatives to LIBOR and working with those we have a relationship with that could be impacted by a change in reference rate from LIBOR. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (EPS) calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity – Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force).” The ASU addresses how an issuer should account for modifications or an exchange of freestanding written call options classified as equity that is not within the scope of another Topic. The ASU is effective for fiscal years beginning after December 15, 2021. Transition is prospective. Early adoption is permitted. The Company does not expect the adoption of ASU 2021-04 to have a material impact on its consolidated financial statements. In August 2021, the FASB issued ASU 2021-06, “'Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants”. The ASU is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2021-06 to have a material impact on its consolidated financial statements. Recently Adopted Accounting Developments In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. ASU 2019-12 was effective for the Company on January 1, 2021. There was no material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. ASU 2020-01 was effective for the Company on January 1, 2021. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. ASU 2020-08 was effective for the Company on January 1, 2021. There was no material impact on the Company’s consolidated financial statements. In December 2020, the Consolidated Appropriations Act of 2021 (the “CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. There was no material impact on the Company’s consolidated financial statements. |
Investment Securities
Investment Securities | 9 Months Ended |
Sep. 30, 2021 | |
Available For Sale Securities [Abstract] | |
Investment Securities | Note 2. Investment Securities Investment securities available-for-sale was comprised of the following: September 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 100,000 $ — $ — $ 100,000 Collateralized Mortgage Backed 32,234 222 (661 ) 31,795 Subordinated Debt 5,720 39 (17 ) 5,742 Municipal Securities 27,423 1,148 (303 ) 28,268 U.S. Governmental Agencies 5,911 — (113 ) 5,798 Total $ 171,288 $ 1,409 $ (1,094 ) $ 171,603 Investment securities held-to-maturity was comprised of the following: September 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal Securities $ 18,144 $ 856 $ — $ 19,000 Subordinated Debt 7,937 — — 7,937 Total $ 26,081 $ 856 $ — $ 26,937 Investment securities available-for-sale was comprised of the following: December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 90,000 $ — $ — $ 90,000 Collateralized Mortgage Backed 24,743 282 (129 ) 24,896 Subordinated Debt 3,250 29 (1 ) 3,278 Municipal Securities 21,348 1,257 — 22,605 U.S. Governmental Agencies 6,785 — (150 ) 6,635 Total $ 146,126 $ 1,568 $ (280 ) $ 147,414 Investment securities held-to-maturity was comprised of the following: December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal Securities $ 20,015 $ 1,058 $ — $ 21,073 Subordinated Debt 2,505 — — 2,505 Total $ 22,520 $ 1,058 $ — $ 23,578 The scheduled maturities of securities available-for-sale and held-to-maturity at September 30, 2021 were as follows: September 30, 2021 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 100,002 $ 100,002 $ — $ — Due from one to five years 1,004 1,013 2,089 1,642 Due from after five to ten years 7,349 7,357 8,521 9,385 Due after ten years 62,933 63,231 15,471 15,910 Total $ 171,288 $ 171,603 $ 26,081 $ 26,937 Securities with a fair value of $677,834 and $269,075 at September 30, 2021 and December 31, 2020, respectively, were pledged to secure FHLB advances. There were no securities sold from the available-for-sale portfolio for both the nine months ended September 30, 2021 and 2020. During the nine months ended September 30, 2021, one held-to-maturity security was called and resulted in a gain of $3,197. The following tables summarize the unrealized loss positions of securities available-for-sale and held-to-maturity as of September 30, 2021 and December 31, 2020: September 30, 2021 Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale: Collateralized Mortgage Backed $ 11,173 $ (85 ) $ 13,221 $ (576 ) $ 24,394 $ (661 ) Subordinated Debt 2,133 (17 ) — — 2,133 (17 ) Municipal securities 9,887 (303 ) — — 9,887 (303 ) U.S Governmental Agencies — — 5,798 (113 ) 5,798 (113 ) Total $ 23,193 $ (405 ) $ 19,019 $ (689 ) $ 42,212 $ (1,094 ) December 31, 2020 Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale: Collateralized Mortgage Backed $ 14,971 $ (129 ) $ — $ — $ 14,971 $ (129 ) Subordinated Debt 749 (1 ) — — 749 (1 ) U.S Government Agencies — — 6,785 (150 ) 6,785 (150 ) Total $ 15,720 $ (130 ) $ 6,785 $ (150 ) $ 22,505 $ (280 ) 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 September 30, 2021, there were seven collateralized mortgage backed securities with fair values totaling $11.2 million were in an unrealized loss position of less than 12 months and one security totaling $13.2 million in an unrealized loss position of more than 12 months. At September 30, 2021 five subordinated debt securities with fair values totaling approximately $2.1 million were in an unrealized loss position of less than 12 months. At September 30, 2021 eleven municipal securities with fair values totaling approximately $9.9 million were in an unrealized loss position of less than 12 months. At September 30, 2021 nine U.S. government agencies with fair values totaling approximately $5.7 million were in an unrealized loss position of more than 12 months. At September 30, 2021, there were no held-to-maturity securities in an unrealized loss position. The Bank does not consider any of the securities in the available for sale or held to maturity portfolio to be other-than-temporarily impaired at September 30, 2021 and December 31, 2020. 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 September 30, 2021 and December 31, 2020 was $35,471 and $54,836, respectively. |
Loans Receivable
Loans Receivable | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Loans Receivable | Note 3. Loans Receivable Loans receivable were comprised of the following: (Dollars in thousands) September 30, 2021 December 31, 2020 Residential Real Estate: Single family $ 155,377 $ 139,338 Multifamily 66,323 43,332 Farmland 1,329 861 Commercial Real Estate: Owner-occupied 154,801 141,813 Non-owner occupied 339,965 325,085 Construction and Land Development 327,004 324,906 Commercial – Non Real-Estate: Commercial & Industrial 191,281 230,027 Consumer – Non Real-Estate: Unsecured 76 241 Secured 27,664 43,832 Total Gross Loans 1,263,820 1,249,435 Less: unearned fees, net (6,061 ) (6,178 ) Less: unamortized discount on consumer secured loans — (1 ) Less: allowance for loan losses (11,428 ) (12,877 ) Net Loans $ 1,246,331 $ 1,230,379 The unsecured consumer loans above include $76,000 and $241,000 of overdrafts reclassified as loans at September 30, 2021 and December 31, 2020, respectively. The commercial and industrial loans above include $88.5 million and $135.2 million in Paycheck Protection Program loans at September 30, 2021 and December 31, 2020, respectively. The Company held $0 and $57.0 million in loans for sale at September 30, 2021 and December 31, 2020, respectively. The following tables summarize the activity in the allowance for loan losses by loan class for the three and nine months ended September 30, 2021 and 2020. Allowance for Credit Losses By Portfolio Segment Real Estate For the three months ended September 30, 2021 Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 1,160 $ 5,822 $ 2,621 $ 132 $ 1,398 $ 11,133 Recoveries — — — — 5 5 Provision 184 17 (5 ) (24 ) 118 290 Ending Balance $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 For the nine months ended September 30, 2021 Beginning Balance $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 Charge-offs — — — (4 ) — (4 ) Recoveries — — — 14 11 25 Provision 121 (713 ) (710 ) (273 ) 105 (1,470 ) Ending Balance $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 Real Estate For the three months ended September 30, 2020 Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 1,084 $ 7,023 $ 2,873 $ 1,330 $ 1,421 $ 13,731 Charge-offs — — — (35 ) — (35 ) Recoveries — — — 5 10 15 Provision 14 114 466 (191 ) 232 635 Ending Balance $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,663 $ 14,346 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ 329 $ 329 Collectively evaluated for Impairment $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,334 $ 14,017 For the nine months ended September 30, 2020 Beginning Balance $ 1,030 $ 4,254 $ 2,180 $ 568 $ 1,552 $ 9,584 Charge-offs — (1 ) — (35 ) (1,793 ) (1,829 ) Recoveries — — — 8 23 31 Provision 68 2,884 1,159 568 1,881 6,560 Ending Balance $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,663 $ 14,346 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ 329 $ 329 Collectively evaluated for Impairment $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,334 $ 14,017 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 September 30, 2021 and December 31, 2020: September 30, 2021 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 223,029 $ 148 $ 222,881 Commercial Real Estate 494,766 1,076 493,690 Construction and Land Development 327,004 — 327,004 Commercial & Industrial 191,281 25 191,256 Consumer 27,740 — 27,740 Total $ 1,263,820 $ 1,249 $ 1,262,571 December 31, 2020 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 182,499 $ 301 $ 182,198 Commercial Real Estate 467,930 1,088 466,842 Construction and Land Development 324,906 — 324,906 Commercial & Industrial 230,027 58 229,969 Consumer 44,073 — 44,073 Total $ 1,249,435 $ 1,447 $ 1,247,988 The following table summarizes information in regard to impaired loans by loan portfolio class as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (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 $ 148 $ 148 $ — $ 301 $ 301 $ — Commercial Real Estate Non-owner Occupied 1,076 1,076 — 1,088 1,088 — Commercial & Industrial 25 25 — 58 58 — Total $ 1,249 $ 1,249 $ — $ 1,447 $ 1,447 $ — The following table presents additional information regarding the impaired loans for the three and nine months ended September 30, 2021: Three Months Ended September 30, 2021 2020 (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 $ 150 $ 2 $ 301 $ 2 Commercial Real Estate Non-owner Occupied 1,076 16 1,097 — Commercial & Industrial 28 — 253 1 Consumer Secured — — 115 2 Total $ 1,254 $ 18 $ 1,766 $ 5 With an allowance recorded Construction and Land Development $ — $ — $ 268 $ 8 Total $ 1,254 $ 18 $ 2,034 $ 13 Nine Months Ended September 30, 2021 2020 (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 $ 225 $ 6 $ 305 $ 7 Commercial Real Estate Non-owner Occupied 1,080 49 1,099 17 Commercial & Industrial 39 2 357 10 Consumer Secured — — 129 6 Total 1,344 57 1,890 40 With an allowance recorded Construction and Land Development $ — $ — $ 167 $ 9 Total $ 1,344 $ 57 $ 2,057 $ 49 If interest on nonaccrual loans had been accrued, such income would have been $0 and $71,549 for the nine months ended September 30, 2021 and 2020. The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2021 and December 31, 2020: (Dollars in thousands) September 30, 2021 December 31, 2020 Residential Real Estate Single family $ — $ 149 Total $ — $ 149 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, based on 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, and Substandard within the Company’s internal risk rating system as of September 30, 2021 and December 31, 2020: September 30, 2021 (Dollars in thousands) Pass Watch Special Mention Substandard Total Residential Real Estate: Single Family $ 153,318 $ — $ 738 $ 1,321 $ 155,377 Multifamily 66,323 — — — 66,323 Farmland 1,329 — — — 1,329 Commercial Real Estate: Owner occupied 150,691 3,239 — 871 154,801 Non-owner occupied 252,322 53,721 15,275 18,647 339,965 Construction & Land Development 307,154 19,850 — — 327,004 Commercial – Non Real Estate: Commercial & Industrial 184,396 3,149 304 3,432 191,281 Consumer – Non Real Estate: Unsecured 76 — — — 76 Secured 27,664 — — — 27,664 Total $ 1,143,273 $ 79,959 $ 16,317 $ 24,271 $ 1,263,820 December 31, 2020 (Dollars in thousands) Pass Watch Special Mention Substandard Total Residential Real Estate: Single Family $ 137,937 $ — $ 738 $ 663 $ 139,338 Multifamily 43,332 — — — 43,332 Farmland 861 — — — 861 Commercial Real Estate: Owner occupied 136,257 5,556 — — 141,813 Non-owner occupied 264,546 59,453 — 1,086 325,085 Construction & Land Development 322,149 2,757 — — 324,906 Commercial – Non Real Estate: Commercial & Industrial 225,012 4,059 591 365 230,027 Consumer – Non Real Estate: Unsecured 241 — — — 241 Secured 43,832 — — — 43,832 Total $ 1,174,167 $ 71,825 $ 1,329 $ 2,114 $ 1,249,435 The following tables present the segments of the loan portfolio summarized by aging categories as of September 30, 2021 and December 31, 2020: September 30, 2021 (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 $ — $ — $ — $ — $ 155,377 $ 155,377 $ — Multifamily — — — — 66,323 66,323 — Farmland — — — — 1,329 1,329 — Commercial Real Estate: Owner occupied — — — — 154,801 154,801 — Non-owner occupied — — — — 339,965 339,965 — Construction & Land Development — — — — 327,004 327,004 — Commercial – Non Real Estate: Commercial & Industrial — — — — 191,281 191,281 — Consumer – Non Real Estate: Unsecured — — — — 76 76 — Secured 52 — — 52 27,612 27,664 — Total $ 52 $ — $ — $ 52 $ 1,263,768 $ 1,263,820 $ — December 31, 2020 (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 $ — $ — $ — $ — $ 139,189 $ 139,338 $ 149 Multifamily — — — — 42,300 42,300 — Farmland — — — — 861 861 — Commercial Real Estate: Owner occupied — — — — 141,813 141,813 — Non-owner occupied — — — — 326,117 326,117 — Construction & Land Development — — — — 324,906 324,906 — Commercial – Non Real Estate: Commercial & Industrial — — — — 230,027 230,027 — Consumer – Non Real Estate: Unsecured — — — — 241 241 — Secured 68 — — 68 43,764 43,832 — Total $ 68 $ — $ — $ 68 $ 1,249,218 $ 1,249,435 $ 149 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, generally six months, and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Troubled Debt Restructuring According to United States generally accepted accounting principles, restructuring a debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The CARES Act states that from March 1, 2020, until the end of the year (unless the President terminates the COVID-19 emergency declaration sooner), financial institutions may elect to suspend the TDR accounting principles for loan modifications related to COVID-19. The Consolidated Appropriations Act of 2021, enacted in December 2020, extended this relief to the earlier of January 1, 2022 or the first day of a bank’s fiscal year that begins after the national emergency ends. 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 September 30, 2021, and December 31, 2020, the Company did not have any TDRs. |
Intangible Assets
Intangible Assets | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 4. Intangible Assets The carrying amount of computer software developed was $1.2 million at September 30, 2021 and December 31, 2020. The following table presents the changes in the carrying amount of computer software developed during the nine months ended September 30, 2021. As of September 30, 2021 As of December 31, 2020 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable intangible assets: Computer software $ 1,165 $ — $ — $ — Total 1,165 $ — $ — $ — The Company is still in the development stage of the computer software where costs are capitalized. Capitalization ceases when the software is substantially complete and ready for its intended use. At that time the intangible asset will be amortized on a straight-line bases over the estimated useful life of the asset. As of September 30, 2021, the Company has not recorded any amortization on its intangible computer software. |
Derivatives and Risk Management
Derivatives and Risk Management Activities | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management Activities | Note 5. Derivatives and Risk Management Activities The Bank uses derivative financial instruments (“derivatives”) primarily to assist customers with their risk management objectives. The Company classifies these items as free standing derivatives consisting of customer accommodation interest rate loan swaps (“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 interest rate loan swaps qualify as financial derivatives with fair values reported in “Other assets” and “Other liabilities” in the consolidated financial statements. Changes in fair value are recorded in other noninterest expense and net to zero because of the identical amounts and terms of the interest rate loan swaps. The following tables summarize key elements of the Banks’s derivative‘s as of September 30, 2021 and December 31, 2020. September 30, 2021 Customer-related interest rate contracts Dollars in thousands) Notional Amount Positions Assets Liabilities Collateral Pledges Matched interest rate swap with borrower $ 208,872 38 $ 3,011 — $ 15,120 Matched interest rate swap with counterparty $ 208,872 38 — $ 3,011 $ 15,120 December 31, 2020 Customer-related interest rate contracts Dollars in thousands) Notional Amount Positions Assets Liabilities Collateral Pledges Matched interest rate swap with borrower $ 210,314 38 $ 12,152 — $ 15,120 Matched interest rate swap with counterparty $ 210,314 38 — $ 12,152 $ 15,120 The Company is able to recognize fee income upon execution of the interest rate swap contract. Interest rate swap fee income for the three and nine months ended September 30, 2021 were both $0, respectively. Interest rate swap income for the same period for 2020 was $1.9 million and $2.7 million, respectively. |
Fair Value Presentation
Fair Value Presentation | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Presentation | Note 6. 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 (“an exit price”) 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 September 30, 2021, and December 31, 2020, 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 5: “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 September 30, 2021 and December 31, 2020: September 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 100,000 $ — $ 100,000 Collateralized Mortgage Backed — 31,795 — 31,795 Subordinated Debt — 5,742 — 5,742 Municipal Securities — 28,268 — 28,268 U.S. Government Agencies — 5,798 — 5,798 Derivative asset – interest rate swap on loans — 3,011 — 3,011 Total $ — $ 174,614 $ — $ 174,614 Liabilities: Derivative liability – interest rate swap on loans — 3,011 — 3,011 Total $ — $ 3,011 $ — $ 3,011 December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 90,000 $ — $ 90,000 Collateralized Mortgage Backed — 24,896 — 24,896 Subordinated Debt — 3,278 — 3,278 Municipal Securities — 22,605 — 22,605 U.S. Government Agencies — 6,635 — 6,635 Derivative asset – interest rate swap on loans — 12,152 — 12,152 Total $ — $ 159,566 $ — $ 159,566 Liabilities: Derivative liability – interest rate swap on loans — 12,152 — 12,152 Total $ — $ 12,152 $ — $ 12,152 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 accounting or write-downs of individual assets. 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. Most 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. 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 following table summarizes the value of the Bank’s assets as of September 30, 2021 and December 31, 2020 that were measured at fair value on a nonrecurring basis during the period: September 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Other Real Estate Owned $ — $ — $ 1,158 $ 1,158 Total $ — $ — $ 1,158 $ 1,158 December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Other Real Estate Owned $ — $ — $ 1,180 $ 1,180 Total $ — $ — $ 1,180 $ 1,180 The following table summarizes the value of the Bank’s assets as of September 30, 2021 that were measured at fair value on a nonrecurring basis during the period: Fair Value Measurements at September 30, 2021 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Other Real Estate Owned, net $ 1,158 Appraisals Discount to reflect current market conditions and estimated selling costs. 6% - 10% Total $ 1,158 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. In accordance with ASU 2016-01, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. 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. September 30, 2021 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 133,717 $ 133,717 $ 133,717 $ — $ — Restricted equity securities 5,039 5,039 — 5,039 — Securities: Available for sale 171,603 171,603 — 171,603 — Held to maturity 26,081 26,937 — 26,937 — Loans, net 1,246,331 1,267,566 — — 1,267,566 Derivative asset – interest rate swap on loans 3,011 3,011 — 3,011 — Bank owned life insurance 35,987 35,987 — 35,987 — Accrued interest receivable 4,131 4,131 — 4,131 — Liabilities: Deposits $ 1,414,366 $ 1,420,669 $ — $ 929,111 $ 491,558 Derivative liability – interest rate swaps on loans 3,011 3,011 — 3,011 — Accrued interest payable 1,016 1,016 — 1,016 — December 31, 2020 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 107,528 $ 107,528 $ 107,528 $ — $ — Restricted equity securities 4,616 4,616 — 4,616 — Securities: Available for sale 147,414 147,414 — 147,414 — Held to maturity 22,520 23,578 — 23,578 — Loans, net 1,230,379 1,259,671 — — 1,259,671 Loans held for sale 57,006 58,930 — — 58,930 Derivative asset – interest rate swap on loans 12,152 12,152 — 12,152 — Bank owned life insurance 25,341 25,341 — 25,341 — Accrued interest receivable 9,154 9,154 — 9,154 — Liabilities: Deposits $ 1,438,246 $ 1,451,708 $ — $ 941,503 $ 510,205 Derivative liability – interest rate swaps on loans 12,152 12,152 — 12,152 — Accrued interest payable 490 490 — 490 — 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 September 30, 2021 from December 31, 2020. |
Earnings Per Common Share
Earnings Per Common Share | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Note 7. Earnings Per Common Share Basic earnings per common share excludes dilution and is computed by dividing net income available to common shareholders 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 2021 or 2020. The weighted average number of shares used in the calculation of basic and diluted earnings per common share includes unvested restricted shares of the Company’s common stock outstanding. Applicable guidance requires that outstanding un-vested share-based payment awards that contain voting rights and rights to non-forfeitable dividends participate in undistributed earnings with common shareholders. For the Three Months Ended September 30, For the Nine Months Ended September 30, (Dollars in thousands, except for per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 4,244 $ 5,172 $ 15,741 $ 8,008 Weighted average number of common shares issued, basic and diluted 7,571,214 8,272,570 7,547,254 8,275,344 Net income per common share: Basic and diluted income per common share $ 0.56 $ 0.63 $ 2.09 $ 0.97 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Note 8. Accumulated Other Comprehensive Income The following table presents the cumulative balances of the components of accumulated other comprehensive income, net of deferred taxes, as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Unrealized gain on securities $ 315 $ 1,287 Unrealized loss on securities transferred to HTM (35 ) (55 ) Tax effect (48 ) (255 ) Total accumulated other comprehensive income $ 232 $ 977 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 9. Leases Right-of-use assets and lease liabilities are included in other assets and other liabilities, respectively, in the Consolidated Statements of Financial Condition. 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 assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs, and any incentives received from the lessor. 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 nine months ended September 30, 2021 was $437,000. During the nine months ended September 30, 2021 and 2020, the Company recognized lease expense of $514,000 and $442,000, respectively. As of September 30, (Dollars in thousands) 2021 Lease liabilities $ 7,843 Right-of-use assets $ 7,268 Weighted-average remaining lease term – operating leases (in months). 175.6 Weighted-average discount rate – operating leases 2.81 % For the nine months ended September 30, (Dollars in thousands) 2021 Lease Cost Operating lease cost $ 514 Total lease costs $ 514 Cash paid for amounts included in measurement of lease liabilities $ 437 The Company is the lessor for three operating leases. 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. 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. Total rent income on these operating leases is approximately $6,000 per month. During the nine months ended September 30, 2021, the Company entered into one new operating lease. This lease is intended to be used as an operation center to accommodate the growing efforts of the Company. As of September 30, 2021, 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 September 30, 2021 is as follows: (Dollars in thousands) 2021 $ 161 2022 607 2023 638 2024 654 2025 671 Thereafter 6,837 Total undiscounted cash flows $ 9,568 Discount (1,725 ) Lease liabilities $ 7,843 |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization MainStreet Bancshares, Inc. (the “Company”) is a financial holding company incorporated under the laws of the Commonwealth of Virginia whose primary activity is the ownership and management of MainStreet Bank (the “Bank”). On October 12, 2021, the Company declared itself to be a financial holding company in place of a bank holding company. The Company elected this change in order to engage in nonbanking activities that are deemed to be closely related to banking. 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 28,750 shares of preferred stock outstanding. The 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 Board of Governors of the Federal Reserve System (the “Federal Reserve”). On April 18, 2019, the Company completed the registration of its common stock with the Securities Exchange Commission (the “SEC”) 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. We were approved to list depositary shares of preferred stock on the Nasdaq Capital Market on the symbol “MNSBP” as of September 16, 2020. Each depositary share represents a 140 th The 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. 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 business and professional concerns in the Washington, D.C. metropolitan area. In August 2021, MainStreet Bancshares, Inc. established the subsidiary MainStreet Community Capital, LLC, to be a community development entity (“CDE”). This CDE will be an intermediary vehicle for the provision of loans and investments in Low-Income Communities (“LICs”). On October 25, 2021, MainStreet Bancshares, Inc. formally introduced Avenu TM TM |
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, as applicable to a smaller reporting company. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. 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, 2020 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-K filed by the Company with the SEC on March 23, 2021. The results of operations for the three and nine months ended September 30, 2021 are not necessarily indicative of the results that may be expected for the year ending December 31, 2021, or any other period. |
Use of Estimates | Use of estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America, requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the reporting period. Actual results could differ from the estimates. The Company’s critical accounting policies relate to (1) the allowance for loan losses and (2) fair value of financial instruments. 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. |
Capitalization of Software Development Costs | Capitalization of software development costs - We capitalize certain costs incurred to develop commercial software products. For software services that are to be sold, significant areas of judgment include: establishing when technological feasibility has been met and costs should be capitalized, determining the appropriate period over which to amortize the capitalized costs based on the estimated useful lives, estimating the marketability of the commercial software products and related future revenues, and assessing the unamortized cost balances for impairment. Costs incurred prior to establishing technological feasibility are expensed as incurred. Amortization begins on the date of general release and the appropriate amortization period is based on estimates of future revenues from sales of the products. We consider various factors to project marketability and future revenues, including an assessment of alternative solutions or products, current and historical demand for a similar product, and anticipated changes in technology that may make the product obsolete. For internal use software, capitalization begins after the preliminary project stage is complete. Costs incurred prior to this are expensed as incurred. Significant estimates and assumptions include determining the appropriate amortization period based on the estimated useful life A significant change in an estimate or assumptions related to one or more software products could result in a material change to our results of operations. |
Impact of Recently Issued Accounting Pronouncements and Recently Adopted Accounting Developments | Impact of Recently Issued Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASU’s 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASU’s have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. The Company has formed a Committee to oversee the accounting impact of this ASU. In anticipation of the ASU, the Company is working with a third party to compile data and develop an estimate using historical and qualitative data based on the requirements of ASU 2016-13 and have begun to test parallel models. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. In March 2020, the FASB issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company is monitoring developments into rates that may be acceptable alternatives to LIBOR and working with those we have a relationship with that could be impacted by a change in reference rate from LIBOR. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception, which will permit more equity contracts to qualify for it. The ASU also simplifies the diluted earnings per share (EPS) calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In May 2021, the FASB issued ASU 2021-04, “Earnings Per Share (Topic 260), Debt - Modifications and Extinguishments (Subtopic 470-50), Compensation - Stock Compensation (Topic 718), and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Issuer’s Accounting for Certain Modifications or Exchanges of Freestanding Equity – Classified Written Call Options (a consensus of the FASB Emerging Issues Task Force).” The ASU addresses how an issuer should account for modifications or an exchange of freestanding written call options classified as equity that is not within the scope of another Topic. The ASU is effective for fiscal years beginning after December 15, 2021. Transition is prospective. Early adoption is permitted. The Company does not expect the adoption of ASU 2021-04 to have a material impact on its consolidated financial statements. In August 2021, the FASB issued ASU 2021-06, “'Presentation of Financial Statements (Topic 205), Financial Services—Depository and Lending (Topic 942), and Financial Services—Investment Companies (Topic 946): Amendments to SEC Paragraphs Pursuant to SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants. This ASU incorporates recent SEC rule changes into the FASB Codification, including SEC Final Rule Releases No. 33-10786, Amendments to Financial Disclosures about Acquired and Disposed Businesses, and No. 33-10835, Update of Statistical Disclosures for Bank and Savings and Loan Registrants”. The ASU is effective upon addition to the FASB Codification. The Company does not expect the adoption of ASU 2021-06 to have a material impact on its consolidated financial statements. Recently Adopted Accounting Developments In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. ASU 2019-12 was effective for the Company on January 1, 2021. There was no material impact on the Company’s consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. ASU 2020-01 was effective for the Company on January 1, 2021. In October 2020, the FASB issued ASU 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should re-evaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. ASU 2020-08 was effective for the Company on January 1, 2021. There was no material impact on the Company’s consolidated financial statements. In December 2020, the Consolidated Appropriations Act of 2021 (the “CAA”) was passed. Under Section 541 of the CAA, Congress extended or modified many of the relief programs first created by the CARES Act, including the PPP loan program and treatment of certain loan modifications related to the COVID-19 pandemic. There was no material impact on the Company’s consolidated financial statements. |
Investment Securities (Tables)
Investment Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Available For Sale Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale | Investment securities available-for-sale was comprised of the following: September 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 100,000 $ — $ — $ 100,000 Collateralized Mortgage Backed 32,234 222 (661 ) 31,795 Subordinated Debt 5,720 39 (17 ) 5,742 Municipal Securities 27,423 1,148 (303 ) 28,268 U.S. Governmental Agencies 5,911 — (113 ) 5,798 Total $ 171,288 $ 1,409 $ (1,094 ) $ 171,603 Investment securities available-for-sale was comprised of the following: December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 90,000 $ — $ — $ 90,000 Collateralized Mortgage Backed 24,743 282 (129 ) 24,896 Subordinated Debt 3,250 29 (1 ) 3,278 Municipal Securities 21,348 1,257 — 22,605 U.S. Governmental Agencies 6,785 — (150 ) 6,635 Total $ 146,126 $ 1,568 $ (280 ) $ 147,414 |
Schedule of Investment Securities Held-to-Maturity | Investment securities held-to-maturity was comprised of the following: September 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal Securities $ 18,144 $ 856 $ — $ 19,000 Subordinated Debt 7,937 — — 7,937 Total $ 26,081 $ 856 $ — $ 26,937 Investment securities held-to-maturity was comprised of the following: December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal Securities $ 20,015 $ 1,058 $ — $ 21,073 Subordinated Debt 2,505 — — 2,505 Total $ 22,520 $ 1,058 $ — $ 23,578 |
Schedule of Scheduled Maturities of Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of securities available-for-sale and held-to-maturity at September 30, 2021 were as follows: September 30, 2021 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 100,002 $ 100,002 $ — $ — Due from one to five years 1,004 1,013 2,089 1,642 Due from after five to ten years 7,349 7,357 8,521 9,385 Due after ten years 62,933 63,231 15,471 15,910 Total $ 171,288 $ 171,603 $ 26,081 $ 26,937 |
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 and held-to-maturity as of September 30, 2021 and December 31, 2020: September 30, 2021 Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale: Collateralized Mortgage Backed $ 11,173 $ (85 ) $ 13,221 $ (576 ) $ 24,394 $ (661 ) Subordinated Debt 2,133 (17 ) — — 2,133 (17 ) Municipal securities 9,887 (303 ) — — 9,887 (303 ) U.S Governmental Agencies — — 5,798 (113 ) 5,798 (113 ) Total $ 23,193 $ (405 ) $ 19,019 $ (689 ) $ 42,212 $ (1,094 ) December 31, 2020 Less than 12 Months 12 Months or Longer Total (Dollars in thousands) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Available-for-sale: Collateralized Mortgage Backed $ 14,971 $ (129 ) $ — $ — $ 14,971 $ (129 ) Subordinated Debt 749 (1 ) — — 749 (1 ) U.S Government Agencies — — 6,785 (150 ) 6,785 (150 ) Total $ 15,720 $ (130 ) $ 6,785 $ (150 ) $ 22,505 $ (280 ) |
Loans Receivable (Tables)
Loans Receivable (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Receivables [Abstract] | |
Schedule of Loan Receivable | Loans receivable were comprised of the following: (Dollars in thousands) September 30, 2021 December 31, 2020 Residential Real Estate: Single family $ 155,377 $ 139,338 Multifamily 66,323 43,332 Farmland 1,329 861 Commercial Real Estate: Owner-occupied 154,801 141,813 Non-owner occupied 339,965 325,085 Construction and Land Development 327,004 324,906 Commercial – Non Real-Estate: Commercial & Industrial 191,281 230,027 Consumer – Non Real-Estate: Unsecured 76 241 Secured 27,664 43,832 Total Gross Loans 1,263,820 1,249,435 Less: unearned fees, net (6,061 ) (6,178 ) Less: unamortized discount on consumer secured loans — (1 ) Less: allowance for loan losses (11,428 ) (12,877 ) Net Loans $ 1,246,331 $ 1,230,379 |
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 and nine months ended September 30, 2021 and 2020. Allowance for Credit Losses By Portfolio Segment Real Estate For the three months ended September 30, 2021 Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 1,160 $ 5,822 $ 2,621 $ 132 $ 1,398 $ 11,133 Recoveries — — — — 5 5 Provision 184 17 (5 ) (24 ) 118 290 Ending Balance $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 For the nine months ended September 30, 2021 Beginning Balance $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 Charge-offs — — — (4 ) — (4 ) Recoveries — — — 14 11 25 Provision 121 (713 ) (710 ) (273 ) 105 (1,470 ) Ending Balance $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,344 $ 5,839 $ 2,616 $ 108 $ 1,521 $ 11,428 Real Estate For the three months ended September 30, 2020 Residential Commercial Construction Consumer Commercial Total (Dollars in thousands) Beginning Balance $ 1,084 $ 7,023 $ 2,873 $ 1,330 $ 1,421 $ 13,731 Charge-offs — — — (35 ) — (35 ) Recoveries — — — 5 10 15 Provision 14 114 466 (191 ) 232 635 Ending Balance $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,663 $ 14,346 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ 329 $ 329 Collectively evaluated for Impairment $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,334 $ 14,017 For the nine months ended September 30, 2020 Beginning Balance $ 1,030 $ 4,254 $ 2,180 $ 568 $ 1,552 $ 9,584 Charge-offs — (1 ) — (35 ) (1,793 ) (1,829 ) Recoveries — — — 8 23 31 Provision 68 2,884 1,159 568 1,881 6,560 Ending Balance $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,663 $ 14,346 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ 329 $ 329 Collectively evaluated for Impairment $ 1,098 $ 7,137 $ 3,339 $ 1,109 $ 1,334 $ 14,017 |
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 September 30, 2021 and December 31, 2020: September 30, 2021 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 223,029 $ 148 $ 222,881 Commercial Real Estate 494,766 1,076 493,690 Construction and Land Development 327,004 — 327,004 Commercial & Industrial 191,281 25 191,256 Consumer 27,740 — 27,740 Total $ 1,263,820 $ 1,249 $ 1,262,571 December 31, 2020 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 182,499 $ 301 $ 182,198 Commercial Real Estate 467,930 1,088 466,842 Construction and Land Development 324,906 — 324,906 Commercial & Industrial 230,027 58 229,969 Consumer 44,073 — 44,073 Total $ 1,249,435 $ 1,447 $ 1,247,988 |
Schedule of Impaired Loan | The following table summarizes information in regard to impaired loans by loan portfolio class as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 (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 $ 148 $ 148 $ — $ 301 $ 301 $ — Commercial Real Estate Non-owner Occupied 1,076 1,076 — 1,088 1,088 — Commercial & Industrial 25 25 — 58 58 — Total $ 1,249 $ 1,249 $ — $ 1,447 $ 1,447 $ — The following table presents additional information regarding the impaired loans for the three and nine months ended September 30, 2021: Three Months Ended September 30, 2021 2020 (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 $ 150 $ 2 $ 301 $ 2 Commercial Real Estate Non-owner Occupied 1,076 16 1,097 — Commercial & Industrial 28 — 253 1 Consumer Secured — — 115 2 Total $ 1,254 $ 18 $ 1,766 $ 5 With an allowance recorded Construction and Land Development $ — $ — $ 268 $ 8 Total $ 1,254 $ 18 $ 2,034 $ 13 Nine Months Ended September 30, 2021 2020 (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 $ 225 $ 6 $ 305 $ 7 Commercial Real Estate Non-owner Occupied 1,080 49 1,099 17 Commercial & Industrial 39 2 357 10 Consumer Secured — — 129 6 Total 1,344 57 1,890 40 With an allowance recorded Construction and Land Development $ — $ — $ 167 $ 9 Total $ 1,344 $ 57 $ 2,057 $ 49 |
Schedule of Nonaccrual Loans by Classes of the Loan Portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of September 30, 2021 and December 31, 2020: (Dollars in thousands) September 30, 2021 December 31, 2020 Residential Real Estate Single family $ — $ 149 Total $ — $ 149 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables summarize the aggregate Pass and criticized categories of Watch, Special Mention, and Substandard within the Company’s internal risk rating system as of September 30, 2021 and December 31, 2020: September 30, 2021 (Dollars in thousands) Pass Watch Special Mention Substandard Total Residential Real Estate: Single Family $ 153,318 $ — $ 738 $ 1,321 $ 155,377 Multifamily 66,323 — — — 66,323 Farmland 1,329 — — — 1,329 Commercial Real Estate: Owner occupied 150,691 3,239 — 871 154,801 Non-owner occupied 252,322 53,721 15,275 18,647 339,965 Construction & Land Development 307,154 19,850 — — 327,004 Commercial – Non Real Estate: Commercial & Industrial 184,396 3,149 304 3,432 191,281 Consumer – Non Real Estate: Unsecured 76 — — — 76 Secured 27,664 — — — 27,664 Total $ 1,143,273 $ 79,959 $ 16,317 $ 24,271 $ 1,263,820 December 31, 2020 (Dollars in thousands) Pass Watch Special Mention Substandard Total Residential Real Estate: Single Family $ 137,937 $ — $ 738 $ 663 $ 139,338 Multifamily 43,332 — — — 43,332 Farmland 861 — — — 861 Commercial Real Estate: Owner occupied 136,257 5,556 — — 141,813 Non-owner occupied 264,546 59,453 — 1,086 325,085 Construction & Land Development 322,149 2,757 — — 324,906 Commercial – Non Real Estate: Commercial & Industrial 225,012 4,059 591 365 230,027 Consumer – Non Real Estate: Unsecured 241 — — — 241 Secured 43,832 — — — 43,832 Total $ 1,174,167 $ 71,825 $ 1,329 $ 2,114 $ 1,249,435 |
Schedule of Aging of Past Due | The following tables present the segments of the loan portfolio summarized by aging categories as of September 30, 2021 and December 31, 2020: September 30, 2021 (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 $ — $ — $ — $ — $ 155,377 $ 155,377 $ — Multifamily — — — — 66,323 66,323 — Farmland — — — — 1,329 1,329 — Commercial Real Estate: Owner occupied — — — — 154,801 154,801 — Non-owner occupied — — — — 339,965 339,965 — Construction & Land Development — — — — 327,004 327,004 — Commercial – Non Real Estate: Commercial & Industrial — — — — 191,281 191,281 — Consumer – Non Real Estate: Unsecured — — — — 76 76 — Secured 52 — — 52 27,612 27,664 — Total $ 52 $ — $ — $ 52 $ 1,263,768 $ 1,263,820 $ — December 31, 2020 (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 $ — $ — $ — $ — $ 139,189 $ 139,338 $ 149 Multifamily — — — — 42,300 42,300 — Farmland — — — — 861 861 — Commercial Real Estate: Owner occupied — — — — 141,813 141,813 — Non-owner occupied — — — — 326,117 326,117 — Construction & Land Development — — — — 324,906 324,906 — Commercial – Non Real Estate: Commercial & Industrial — — — — 230,027 230,027 — Consumer – Non Real Estate: Unsecured — — — — 241 241 — Secured 68 — — 68 43,764 43,832 — Total $ 68 $ — $ — $ 68 $ 1,249,218 $ 1,249,435 $ 149 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Schedule of Changes in Computer Software Developed | The following table presents the changes in the carrying amount of computer software developed during the nine months ended September 30, 2021. As of September 30, 2021 As of December 31, 2020 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable intangible assets: Computer software $ 1,165 $ — $ — $ — Total 1,165 $ — $ — $ — |
Derivatives and Risk Manageme_2
Derivatives and Risk Management Activities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize key elements of the Banks’s derivative‘s as of September 30, 2021 and December 31, 2020. September 30, 2021 Customer-related interest rate contracts Dollars in thousands) Notional Amount Positions Assets Liabilities Collateral Pledges Matched interest rate swap with borrower $ 208,872 38 $ 3,011 — $ 15,120 Matched interest rate swap with counterparty $ 208,872 38 — $ 3,011 $ 15,120 December 31, 2020 Customer-related interest rate contracts Dollars in thousands) Notional Amount Positions Assets Liabilities Collateral Pledges Matched interest rate swap with borrower $ 210,314 38 $ 12,152 — $ 15,120 Matched interest rate swap with counterparty $ 210,314 38 — $ 12,152 $ 15,120 |
Fair Value Presentation (Tables
Fair Value Presentation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
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 September 30, 2021 and December 31, 2020: September 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 100,000 $ — $ 100,000 Collateralized Mortgage Backed — 31,795 — 31,795 Subordinated Debt — 5,742 — 5,742 Municipal Securities — 28,268 — 28,268 U.S. Government Agencies — 5,798 — 5,798 Derivative asset – interest rate swap on loans — 3,011 — 3,011 Total $ — $ 174,614 $ — $ 174,614 Liabilities: Derivative liability – interest rate swap on loans — 3,011 — 3,011 Total $ — $ 3,011 $ — $ 3,011 December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 90,000 $ — $ 90,000 Collateralized Mortgage Backed — 24,896 — 24,896 Subordinated Debt — 3,278 — 3,278 Municipal Securities — 22,605 — 22,605 U.S. Government Agencies — 6,635 — 6,635 Derivative asset – interest rate swap on loans — 12,152 — 12,152 Total $ — $ 159,566 $ — $ 159,566 Liabilities: Derivative liability – interest rate swap on loans — 12,152 — 12,152 Total $ — $ 12,152 $ — $ 12,152 |
Schedule of Financial Assets Measured at Fair Value on a Nonrecurring Basis | The following table summarizes the value of the Bank’s assets as of September 30, 2021 and December 31, 2020 that were measured at fair value on a nonrecurring basis during the period: September 30, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Other Real Estate Owned $ — $ — $ 1,158 $ 1,158 Total $ — $ — $ 1,158 $ 1,158 December 31, 2020 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Other Real Estate Owned $ — $ — $ 1,180 $ 1,180 Total $ — $ — $ 1,180 $ 1,180 |
Schedule of Quantitative Information about Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value on Nonreoccuring Basis | The following table summarizes the value of the Bank’s assets as of September 30, 2021 that were measured at fair value on a nonrecurring basis during the period: Fair Value Measurements at September 30, 2021 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Other Real Estate Owned, net $ 1,158 Appraisals Discount to reflect current market conditions and estimated selling costs. 6% - 10% Total $ 1,158 |
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. September 30, 2021 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 133,717 $ 133,717 $ 133,717 $ — $ — Restricted equity securities 5,039 5,039 — 5,039 — Securities: Available for sale 171,603 171,603 — 171,603 — Held to maturity 26,081 26,937 — 26,937 — Loans, net 1,246,331 1,267,566 — — 1,267,566 Derivative asset – interest rate swap on loans 3,011 3,011 — 3,011 — Bank owned life insurance 35,987 35,987 — 35,987 — Accrued interest receivable 4,131 4,131 — 4,131 — Liabilities: Deposits $ 1,414,366 $ 1,420,669 $ — $ 929,111 $ 491,558 Derivative liability – interest rate swaps on loans 3,011 3,011 — 3,011 — Accrued interest payable 1,016 1,016 — 1,016 — December 31, 2020 Carrying Estimated Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (Dollars in thousands) Amount Fair Value Level 1 Level 2 Level 3 Assets: Cash and cash equivalents $ 107,528 $ 107,528 $ 107,528 $ — $ — Restricted equity securities 4,616 4,616 — 4,616 — Securities: Available for sale 147,414 147,414 — 147,414 — Held to maturity 22,520 23,578 — 23,578 — Loans, net 1,230,379 1,259,671 — — 1,259,671 Loans held for sale 57,006 58,930 — — 58,930 Derivative asset – interest rate swap on loans 12,152 12,152 — 12,152 — Bank owned life insurance 25,341 25,341 — 25,341 — Accrued interest receivable 9,154 9,154 — 9,154 — Liabilities: Deposits $ 1,438,246 $ 1,451,708 $ — $ 941,503 $ 510,205 Derivative liability – interest rate swaps on loans 12,152 12,152 — 12,152 — Accrued interest payable 490 490 — 490 — |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share Basic and Diluted | For the Three Months Ended September 30, For the Nine Months Ended September 30, (Dollars in thousands, except for per share data) 2021 2020 2021 2020 Net income available to common shareholders $ 4,244 $ 5,172 $ 15,741 $ 8,008 Weighted average number of common shares issued, basic and diluted 7,571,214 8,272,570 7,547,254 8,275,344 Net income per common share: Basic and diluted income per common share $ 0.56 $ 0.63 $ 2.09 $ 0.97 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income | The following table presents the cumulative balances of the components of accumulated other comprehensive income, net of deferred taxes, as of September 30, 2021 and December 31, 2020: September 30, 2021 December 31, 2020 Unrealized gain on securities $ 315 $ 1,287 Unrealized loss on securities transferred to HTM (35 ) (55 ) Tax effect (48 ) (255 ) Total accumulated other comprehensive income $ 232 $ 977 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Schedule of Leases Cost | As of September 30, (Dollars in thousands) 2021 Lease liabilities $ 7,843 Right-of-use assets $ 7,268 Weighted-average remaining lease term – operating leases (in months). 175.6 Weighted-average discount rate – operating leases 2.81 % For the nine months ended September 30, (Dollars in thousands) 2021 Lease Cost Operating lease cost $ 514 Total lease costs $ 514 Cash paid for amounts included in measurement of lease liabilities $ 437 |
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 September 30, 2021 is as follows: (Dollars in thousands) 2021 $ 161 2022 607 2023 638 2024 654 2025 671 Thereafter 6,837 Total undiscounted cash flows $ 9,568 Discount (1,725 ) Lease liabilities $ 7,843 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Detail) - $ / shares | 9 Months Ended | |
Sep. 30, 2021 | Dec. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $ 4 | $ 4 |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 |
Preferred stock, par value | $ 1 | $ 1 |
Preferred stock, shares outstanding | 28,750 | 28,750 |
ASU 2019-12 [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Change in accounting principle, accounting standards update, adopted | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect | true | |
ASU 2020-01 [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Change in accounting principle, accounting standards update, adopted | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect | true | |
ASU 2020-08 [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Change in accounting principle, accounting standards update, adopted | true | |
Change in accounting principle, accounting standards update, adoption date | Jan. 1, 2021 | |
Change in accounting principle, accounting standards update, immaterial effect | true | |
Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Yield or fixed rate coupon of each preferred share | 7.50% |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 171,288 | $ 146,126 |
Gross Unrealized Gains | 1,409 | 1,568 |
Gross Unrealized Losses | (1,094) | (280) |
Fair Value | 171,603 | 147,414 |
U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 100,000 | 90,000 |
Fair Value | 100,000 | 90,000 |
Collateralized Mortgage Backed [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 32,234 | 24,743 |
Gross Unrealized Gains | 222 | 282 |
Gross Unrealized Losses | (661) | (129) |
Fair Value | 31,795 | 24,896 |
Subordinated Debt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,720 | 3,250 |
Gross Unrealized Gains | 39 | 29 |
Gross Unrealized Losses | (17) | (1) |
Fair Value | 5,742 | 3,278 |
Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 27,423 | 21,348 |
Gross Unrealized Gains | 1,148 | 1,257 |
Gross Unrealized Losses | (303) | |
Fair Value | 28,268 | 22,605 |
U.S Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,911 | 6,785 |
Gross Unrealized Losses | (113) | (150) |
Fair Value | $ 5,798 | $ 6,635 |
Investment Securities - Sched_2
Investment Securities - Schedule of Investment Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 26,081 | $ 22,520 |
Gross Unrealized Gains | 856 | 1,058 |
Fair Value | 26,937 | 23,578 |
Municipal Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 18,144 | 20,015 |
Gross Unrealized Gains | 856 | 1,058 |
Fair Value | 19,000 | 21,073 |
Subordinated Debt [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 7,937 | 2,505 |
Fair Value | $ 7,937 | $ 2,505 |
Investment Securities - Sched_3
Investment Securities - Schedule of Scheduled Maturities of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 100,002 | |
Due from one to five years | 1,004 | |
Due from after five to ten years | 7,349 | |
Due after ten years | 62,933 | |
Amortized Cost | 171,288 | $ 146,126 |
Available-for-Sale, Fair Value | ||
Due in one year or less | 100,002 | |
Due from one to five years | 1,013 | |
Due from after five to ten years | 7,357 | |
Due after ten years | 63,231 | |
Total | 171,603 | 147,414 |
Held-to-Maturity, Amortized Cost | ||
Due from one to five years | 2,089 | |
Due from after five to ten years | 8,521 | |
Due after ten years | 15,471 | |
Amortized Cost | 26,081 | 22,520 |
Held-to-Maturity, Fair Value | ||
Due from one to five years | 1,642 | |
Due from after five to ten years | 9,385 | |
Due after ten years | 15,910 | |
Total | $ 26,937 | $ 23,578 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021USD ($)Security | Sep. 30, 2020Security | Dec. 31, 2020USD ($) | |
Net Investment Income [Line Items] | |||
Securities pledged as collateral | $ 677,834 | $ 269,075 | |
Number of securities sold | Security | 0 | 0 | |
Number of held-to-maturity securities called | Security | 1 | ||
Net gain on held-to-maturity securities | $ 3,197 | ||
Held-to-maturity unrealized loss position, fair value | 0 | ||
Unamortized unrealized loss | $ (35,471) | $ (54,836) | |
Collateralized Mortgage Backed [Member] | |||
Net Investment Income [Line Items] | |||
Number of securities temporarily impaired and unrealized loss position of less than 12 months | 7 | ||
Available for sale securities, temporarily impaired and unrealized loss position of less than 12 months, fair value | $ 11,200,000 | ||
Number of securities temporarily impaired and unrealized loss position of more than 12 months | 1 | ||
Available for sale securities, temporarily impaired and unrealized loss position of more than 12 months, fair value | $ 13,200,000 | ||
Subordinated Debt [Member] | |||
Net Investment Income [Line Items] | |||
Number of securities temporarily impaired and unrealized loss position of less than 12 months | 5 | ||
Available for sale securities, temporarily impaired and unrealized loss position of less than 12 months, fair value | $ 2,100,000 | ||
U.S Government Agencies [Member] | |||
Net Investment Income [Line Items] | |||
Number of securities temporarily impaired and unrealized loss position of more than 12 months | 9 | ||
Available for sale securities, temporarily impaired and unrealized loss position of more than 12 months, fair value | $ 5,700,000 | ||
Municipal Securities [Member] | |||
Net Investment Income [Line Items] | |||
Number of securities temporarily impaired and unrealized loss position of less than 12 months | 11 | ||
Available for sale securities, temporarily impaired and unrealized loss position of less than 12 months, fair value | $ 9,900,000 |
Investment Securities - Sched_4
Investment Securities - Schedule of Unrealized Loss Positions of Securities Available-for-Sale and Held-to-Maturity (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | $ 23,193 | $ 15,720 |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (405) | (130) |
Available-for-sale securities, 12 Months or Longer, Fair Value | 19,019 | 6,785 |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (689) | (150) |
Available-for-sale securities, Fair Value | 42,212 | 22,505 |
Available-for-sale securities, Unrealized Loss | (1,094) | (280) |
Collateralized Mortgage Backed [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 11,173 | 14,971 |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (85) | (129) |
Available-for-sale securities, 12 Months or Longer, Fair Value | 13,221 | |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (576) | |
Available-for-sale securities, Fair Value | 24,394 | 14,971 |
Available-for-sale securities, Unrealized Loss | (661) | (129) |
Municipal Securities [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 9,887 | |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (303) | |
Available-for-sale securities, Fair Value | 9,887 | |
Available-for-sale securities, Unrealized Loss | (303) | |
Subordinated Debt [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 2,133 | 749 |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (17) | (1) |
Available-for-sale securities, Fair Value | 2,133 | 749 |
Available-for-sale securities, Unrealized Loss | (17) | (1) |
U.S Government Agencies [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, 12 Months or Longer, Fair Value | 5,798 | 6,785 |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (113) | (150) |
Available-for-sale securities, Fair Value | 5,798 | 6,785 |
Available-for-sale securities, Unrealized Loss | $ (113) | $ (150) |
Loans Receivable - Schedule of
Loans Receivable - Schedule of Loan Receivable (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | $ 1,263,820 | $ 1,249,435 |
Less: unearned fees, net | (6,061) | (6,178) |
Less: unamortized discount on consumer secured loans | (1) | |
Less: allowance for loan losses | (11,428) | (12,877) |
Net Loans | 1,246,331 | 1,230,379 |
Single Family [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 155,377 | 139,338 |
Residential Real Estate Multi Family [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 66,323 | 43,332 |
Residential Real Estate Farm Land [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 1,329 | 861 |
Owner Occupied [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 154,801 | 141,813 |
Non Owner Occupied [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 339,965 | 325,085 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 327,004 | 324,906 |
Commercial & Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 191,281 | 230,027 |
Unsecured [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 76 | 241 |
Secured [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | $ 27,664 | $ 43,832 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Detail) - USD ($) | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Loans and Leases Receivable Disclosure [Line Items] | |||
Unsecured consumer loan include overdrafts reclassified as loans | $ 76,000 | $ 241,000 | |
Total Gross Loans | 1,263,820,000 | 1,249,435,000 | |
Loans held for sale | 0 | 57,000,000 | |
Interest income on nonaccural loans, accrued | 0 | $ 71,549 | |
TDRs | 0 | 0 | |
Commercial & Industrial [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans | 191,281,000 | 230,027,000 | |
Commercial & Industrial [Member] | Small Business Administration (SBA), CARES Act, Paycheck Protection Program [Member] | |||
Loans and Leases Receivable Disclosure [Line Items] | |||
Total Gross Loans | $ 88,500,000 | $ 135,200,000 |
Loans Receivable - Schedule o_2
Loans Receivable - Schedule of Allowance for Credit losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | $ 11,133 | $ 13,731 | $ 12,877 | $ 9,584 |
Charge-offs | (35) | (4) | (1,829) | |
Recoveries | 5 | 15 | 25 | 31 |
Provision | 290 | 635 | (1,470) | 6,560 |
Ending Balance | 11,428 | 14,346 | 11,428 | 14,346 |
Individually evaluated for Impairment | 329 | 329 | ||
Collectively evaluated for Impairment | 11,428 | 14,017 | 11,428 | 14,017 |
Residential Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 1,160 | 1,084 | 1,223 | 1,030 |
Provision | 184 | 14 | 121 | 68 |
Ending Balance | 1,344 | 1,098 | 1,344 | 1,098 |
Collectively evaluated for Impairment | 1,344 | 1,098 | 1,344 | 1,098 |
Commercial Real Estate Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 5,822 | 7,023 | 6,552 | 4,254 |
Charge-offs | (1) | |||
Provision | 17 | 114 | (713) | 2,884 |
Ending Balance | 5,839 | 7,137 | 5,839 | 7,137 |
Collectively evaluated for Impairment | 5,839 | 7,137 | 5,839 | 7,137 |
Construction Development And Land [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 2,621 | 2,873 | 3,326 | 2,180 |
Provision | (5) | 466 | (710) | 1,159 |
Ending Balance | 2,616 | 3,339 | 2,616 | 3,339 |
Collectively evaluated for Impairment | 2,616 | 3,339 | 2,616 | 3,339 |
Consumer Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 132 | 1,330 | 371 | 568 |
Charge-offs | (35) | (4) | (35) | |
Recoveries | 5 | 14 | 8 | |
Provision | (24) | (191) | (273) | 568 |
Ending Balance | 108 | 1,109 | 108 | 1,109 |
Collectively evaluated for Impairment | 108 | 1,109 | 108 | 1,109 |
Commercial Portfolio Segment [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Beginning Balance | 1,398 | 1,421 | 1,405 | 1,552 |
Charge-offs | (1,793) | |||
Recoveries | 5 | 10 | 11 | 23 |
Provision | 118 | 232 | 105 | 1,881 |
Ending Balance | 1,521 | 1,663 | 1,521 | 1,663 |
Individually evaluated for Impairment | 329 | 329 | ||
Collectively evaluated for Impairment | $ 1,521 | $ 1,334 | $ 1,521 | $ 1,334 |
Loans Receivable - Schedule o_3
Loans Receivable - Schedule of Investment in Loans Receivable by Loan Class (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | $ 1,263,820 | $ 1,249,435 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 1,249 | 1,447 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 1,262,571 | 1,247,988 |
Residential Real Estate [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 223,029 | 182,499 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 148 | 301 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 222,881 | 182,198 |
Commercial Real Estate [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 494,766 | 467,930 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 1,076 | 1,088 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 493,690 | 466,842 |
Real Estate Construction Land And Land Development [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 327,004 | 324,906 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 327,004 | 324,906 |
Commercial and Industrial Sector [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 191,281 | 230,027 |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 25 | 58 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 191,256 | 229,969 |
Consumer Loan [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Loan Receivable Ending Balance | 27,740 | 44,073 |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | $ 27,740 | $ 44,073 |
Loans Receivable - Schedule o_4
Loans Receivable - Schedule of Information of Impaired Loans by Loan Portfolio Class (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | $ 1,249 | $ 1,447 |
Unpaid Principal Balance | 1,249 | 1,447 |
Single Family [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 148 | 301 |
Unpaid Principal Balance | 148 | 301 |
Related Allowance | 0 | 0 |
Commercial & Industrial [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 25 | 58 |
Unpaid Principal Balance | 25 | 58 |
Non Owner Occupied [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 1,076 | 1,088 |
Unpaid Principal Balance | $ 1,076 | $ 1,088 |
Loans Receivable - Schedule o_5
Loans Receivable - Schedule of Additional Information of Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Schedule Of Financial Receivables [Line Items] | ||||
Average Record Investment, with no related allowance recorded | $ 1,254 | $ 1,766 | $ 1,344 | $ 1,890 |
Interest Income Recognized, with no related allowance recorded | 18 | 5 | 57 | 40 |
Average Record Investment | 1,254 | 2,034 | 1,344 | 2,057 |
Interest Income Recognized | 18 | 13 | 57 | 49 |
Single Family [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Average Record Investment, with no related allowance recorded | 150 | 301 | 225 | 305 |
Interest Income Recognized, with no related allowance recorded | 2 | 2 | 6 | 7 |
Non Owner Occupied [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Average Record Investment, with no related allowance recorded | 1,076 | 1,097 | 1,080 | 1,099 |
Interest Income Recognized, with no related allowance recorded | 16 | 49 | 17 | |
Commercial & Industrial [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Average Record Investment, with no related allowance recorded | $ 28 | 253 | 39 | 357 |
Interest Income Recognized, with no related allowance recorded | 1 | $ 2 | 10 | |
Secured [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Average Record Investment, with no related allowance recorded | 115 | 129 | ||
Interest Income Recognized, with no related allowance recorded | 2 | 6 | ||
Real Estate Construction Land And Land Development [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Average Record Investment, with an allowance recorded | 268 | 167 | ||
Interest Income Recognized, with an allowance recorded | $ 8 | $ 9 |
Loans Receivable - Schedule o_6
Loans Receivable - Schedule of Nonaccrual Loans by Classes of the Loan Portfolio (Detail) $ in Thousands | Dec. 31, 2020USD ($) |
Schedule Of Financing Receivables Non Accrual Status [Line Items] | |
Nonaccrual Loans | $ 149 |
Single Family [Member] | |
Schedule Of Financing Receivables Non Accrual Status [Line Items] | |
Nonaccrual Loans | $ 149 |
Loans Receivable - Schedule o_7
Loans Receivable - Schedule of Financing Receivable Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | $ 1,263,820 | $ 1,249,435 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,143,273 | 1,174,167 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 79,959 | 71,825 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 16,317 | 1,329 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 24,271 | 2,114 |
Single Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 155,377 | 139,338 |
Single Family [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 153,318 | 137,937 |
Single Family [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 738 | 738 |
Single Family [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,321 | 663 |
Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 66,323 | 43,332 |
Residential Real Estate Multi Family [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 66,323 | 43,332 |
Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,329 | 861 |
Residential Real Estate Farm Land [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,329 | 861 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 154,801 | 141,813 |
Owner Occupied [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 150,691 | 136,257 |
Owner Occupied [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 3,239 | 5,556 |
Owner Occupied [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 871 | |
Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 339,965 | 325,085 |
Non Owner Occupied [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 252,322 | 264,546 |
Non Owner Occupied [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 53,721 | 59,453 |
Non Owner Occupied [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 15,275 | |
Non Owner Occupied [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 18,647 | 1,086 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 327,004 | 324,906 |
Commercial Real Estate Construction Land Development Loan [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 307,154 | 322,149 |
Commercial Real Estate Construction Land Development Loan [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 19,850 | 2,757 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 191,281 | 230,027 |
Commercial & Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 184,396 | 225,012 |
Commercial & Industrial [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 3,149 | 4,059 |
Commercial & Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 304 | 591 |
Commercial & Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 3,432 | 365 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 76 | 241 |
Unsecured [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 76 | 241 |
Secured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 27,664 | 43,832 |
Secured [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | $ 27,664 | $ 43,832 |
Loans Receivable - Schedule o_8
Loans Receivable - Schedule of Aging of Past Due (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | $ 1,263,820 | $ 1,249,435 |
Nonaccrual | 149 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 52 | 68 |
Finance Receivables, Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 52 | 68 |
Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 1,263,768 | 1,249,218 |
Single Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 155,377 | 139,338 |
Nonaccrual | 149 | |
Single Family [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 155,377 | 139,189 |
Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 66,323 | 42,300 |
Residential Real Estate Multi Family [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 66,323 | 42,300 |
Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 1,329 | 861 |
Residential Real Estate Farm Land [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 1,329 | 861 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 154,801 | 141,813 |
Owner Occupied [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 154,801 | 141,813 |
Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 339,965 | 326,117 |
Non Owner Occupied [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 339,965 | 326,117 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 327,004 | 324,906 |
Commercial Real Estate Construction Land Development Loan [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 327,004 | 324,906 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 191,281 | 230,027 |
Commercial & Industrial [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 191,281 | 230,027 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 76 | 241 |
Unsecured [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 76 | 241 |
Secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 27,664 | 43,832 |
Secured [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 52 | 68 |
Secured [Member] | Finance Receivables, Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 52 | 68 |
Secured [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | $ 27,612 | $ 43,764 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 1,165,000 | |
Computer Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | 1,165,000 | $ 1,200,000 |
Amortization of intangible assets | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Changes in Computer Software Developed (Detail) - USD ($) | Sep. 30, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 1,165,000 | |
Computer Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 1,165,000 | $ 1,200,000 |
Accumulated Amortization | $ 0 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management Activities - Schedule of Derivative Instruments (Detail) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Matched Interest Rate Swap With Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 208,872 | $ 210,314 |
Positions | 38 | 38 |
Assets | $ 3,011 | $ 12,152 |
Collateral Pledges | 15,120 | 15,120 |
Matched Interest Rate Swaps With Counterparty [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 208,872 | $ 210,314 |
Positions | 38 | 38 |
Liabilities | $ 3,011 | $ 12,152 |
Collateral Pledges | $ 15,120 | $ 15,120 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||||
Interest rate swap fee income | $ 0 | $ 1,851,000 | $ 0 | $ 2,677,000 |
Fair Value Presentation - Sched
Fair Value Presentation - Schedule of Fair Value Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Investment securities available-for-sale | $ 171,603 | $ 147,414 |
Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 171,603 | 147,414 |
Derivative asset | 3,011 | 12,152 |
Liabilities: | ||
Derivative liability | 3,011 | 12,152 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 100,000 | 90,000 |
Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 31,795 | 24,896 |
Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,742 | 3,278 |
Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 28,268 | 22,605 |
U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,798 | 6,635 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Total | 174,614 | 159,566 |
Liabilities: | ||
Total | 3,011 | 12,152 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Assets: | ||
Derivative asset | 3,011 | 12,152 |
Liabilities: | ||
Derivative liability | 3,011 | 12,152 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Total | 174,614 | 159,566 |
Liabilities: | ||
Total | 3,011 | 12,152 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap on Loans [Member] | ||
Assets: | ||
Derivative asset | 3,011 | 12,152 |
Liabilities: | ||
Derivative liability | 3,011 | 12,152 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 100,000 | 90,000 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 100,000 | 90,000 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 31,795 | 24,896 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 31,795 | 24,896 |
Fair Value, Measurements, Recurring [Member] | Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,742 | 3,278 |
Fair Value, Measurements, Recurring [Member] | Subordinated Debt [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,742 | 3,278 |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 28,268 | 22,605 |
Fair Value, Measurements, Recurring [Member] | Municipal Securities [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 28,268 | 22,605 |
Fair Value, Measurements, Recurring [Member] | U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,798 | 6,635 |
Fair Value, Measurements, Recurring [Member] | U.S Government Agencies [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | $ 5,798 | $ 6,635 |
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] - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Assets | $ 1,158 | $ 1,180 |
Other Real Estate Owned [Member] | ||
Assets: | ||
Assets | 1,158 | 1,180 |
Level 3 [Member] | ||
Assets: | ||
Assets | 1,158 | 1,180 |
Level 3 [Member] | Other Real Estate Owned [Member] | ||
Assets: | ||
Assets | $ 1,158 | $ 1,180 |
Fair Value Presentation - Sch_3
Fair Value Presentation - Schedule of Quantitative Information about Level 3 Fair Value Measurements for Financial Assets Measured at Fair Value on Nonrecurring Basis (Detail) $ in Thousands | Sep. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned, net | $ 1,158 | $ 1,180 |
Fair Value, Measurements, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Total | 1,158 | |
Fair Value, Measurements, Nonrecurring [Member] | Appraisals [Member] | Discount Rate [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned, net | $ 1,158 | |
Fair Value, Measurements, Nonrecurring [Member] | Appraisals [Member] | Discount Rate [Member] | Minimum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, net, Range of Inputs | 0.06 | |
Fair Value, Measurements, Nonrecurring [Member] | Appraisals [Member] | Discount Rate [Member] | Maximum [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other Real Estate Owned, net, Range of Inputs | 0.10 |
Fair Value Presentation - Sch_4
Fair Value Presentation - Schedule of Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 133,717 | $ 107,528 |
Restricted equity securities | 5,039 | 4,616 |
Securities: | ||
Available for sale | 171,603 | 147,414 |
Held to maturity | 26,081 | 22,520 |
Bank owned life insurance | 35,987 | 25,341 |
Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 133,717 | 107,528 |
Level 2 [Member] | ||
Assets: | ||
Restricted equity securities | 5,039 | 4,616 |
Securities: | ||
Available for sale | 171,603 | 147,414 |
Held to maturity | 26,937 | 23,578 |
Derivative asset – interest rate swap on loans | 3,011 | 12,152 |
Bank owned life insurance | 35,987 | 25,341 |
Accrued interest receivable | 4,131 | 9,154 |
Liabilities: | ||
Deposits | 929,111 | 941,503 |
Derivative liability – interest rate swaps on loans | 3,011 | 12,152 |
Accrued interest payable | 1,016 | 490 |
Level 3 [Member] | ||
Securities: | ||
Loans, net | 1,267,566 | 1,259,671 |
Loans held for sale | 58,930 | |
Liabilities: | ||
Deposits | 491,558 | 510,205 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 133,717 | 107,528 |
Restricted equity securities | 5,039 | 4,616 |
Securities: | ||
Available for sale | 171,603 | 147,414 |
Held to maturity | 26,081 | 22,520 |
Loans, net | 1,246,331 | 1,230,379 |
Loans held for sale | 57,006 | |
Derivative asset – interest rate swap on loans | 3,011 | 12,152 |
Bank owned life insurance | 35,987 | 25,341 |
Accrued interest receivable | 4,131 | 9,154 |
Liabilities: | ||
Deposits | 1,414,366 | 1,438,246 |
Derivative liability – interest rate swaps on loans | 3,011 | 12,152 |
Accrued interest payable | 1,016 | 490 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 133,717 | 107,528 |
Restricted equity securities | 5,039 | 4,616 |
Securities: | ||
Available for sale | 171,603 | 147,414 |
Held to maturity | 26,937 | 23,578 |
Loans, net | 1,267,566 | 1,259,671 |
Loans held for sale | 58,930 | |
Derivative asset – interest rate swap on loans | 3,011 | 12,152 |
Bank owned life insurance | 35,987 | 25,341 |
Accrued interest receivable | 4,131 | 9,154 |
Liabilities: | ||
Deposits | 1,420,669 | 1,451,708 |
Derivative liability – interest rate swaps on loans | 3,011 | 12,152 |
Accrued interest payable | $ 1,016 | $ 490 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares | 9 Months Ended | |
Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||
Outstanding potentially dilutive securities | 0 | 0 |
Earnings Per Common Share - Sch
Earnings Per Common Share - Schedule of Earnings Per Common Share Basic and Diluted (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income available to common shareholders | $ 4,244 | $ 5,172 | $ 15,741 | $ 8,008 |
Weighted average number of common shares issued, basic and diluted | 7,571,214 | 8,272,570 | 7,547,254 | 8,275,344 |
Net income per common share: | ||||
Basic and diluted income per common share | $ 0.56 | $ 0.63 | $ 2.09 | $ 0.97 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Loss [Line Items] | ||
Tax effect | $ (48) | $ (255) |
Total accumulated other comprehensive income | 232 | 977 |
Unrealized gain/(loss) on securities [Member] | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Accumulated other comprehensive gain(loss), before tax | 315 | 1,287 |
Unrealized loss on securities transferred to HTM [Member] | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Accumulated other comprehensive gain(loss), before tax | $ (35) | $ (55) |
Leases - Additional Information
Leases - Additional Information (Detail) | 9 Months Ended | |
Sep. 30, 2021USD ($)Lease | Sep. 30, 2020USD ($) | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 437,000 | |
Operating leases expense | $ 514,000 | $ 442,000 |
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 | |
Number of operating lease | Lease | 1 | |
Financing lease obligation | $ 0 | |
Finance lease right of use asset | $ 0 |
Leases - Schedule of Leases Cos
Leases - Schedule of Leases Cost (Detail) | 9 Months Ended |
Sep. 30, 2021USD ($) | |
Leases [Abstract] | |
Lease liabilities | $ 7,843,000 |
Right-of-use assets | $ 7,268,000 |
Weighted-average remaining lease term – operating leases (in months). | 175 months 18 days |
Weighted-average discount rate – operating leases | 2.81% |
Lease Cost | |
Operating lease cost | $ 514,000 |
Total lease costs | 514,000 |
Cash paid for amounts included in measurement of lease liabilities | $ 437,000 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating Lease Liabilities (Detail) $ in Thousands | Sep. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 161 |
2022 | 607 |
2023 | 638 |
2024 | 654 |
2025 | 671 |
Thereafter | 6,837 |
Total undiscounted cash flows | 9,568 |
Discount | (1,725) |
Lease liabilities | $ 7,843 |