Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 14, 2022 | Jun. 30, 2021 | |
Document Information [Line Items] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2021 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
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 | ||
ICFR Auditor Attestation Flag | false | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Common Stock, Shares Outstanding | 7,648,973 | ||
Entity Public Float | $ 170,465,407 | ||
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 Annual Report | true | ||
Document Transition Report | false | ||
Auditor Firm ID | 613 | ||
Auditor Name | Yount, Hyde & Barbour, P.C. | ||
Auditor Location | Winchester, Virginia, USA | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE: The information required by Part III of this Annual Report on Form 10-K will be found in the Company’s definitive proxy statement for its 2021 Annual Meeting of Shareholders, to be filed pursuant to Regulation 14A under the Securities Exchange Act of 1934, and such information is incorporated herein by this reference. | ||
Common Stock [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | MNSB | ||
Title of 12(b) Security | Common Stock | ||
Security Exchange Name | NASDAQ | ||
Depositary Shares [Member] | |||
Document Information [Line Items] | |||
Trading Symbol | MNSBP | ||
Title of 12(b) Security | Depositary Shares (each representing a 1/40th interest in a share of 7.50% Series A Fixed-Rate Non-Cumulative Perpetual Preferred Stock) | ||
Security Exchange Name | NASDAQ |
Consolidated Statements of Fina
Consolidated Statements of Financial Condition - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 61,827,000 | $ 75,935,000 |
Federal funds sold | 31,372,000 | 31,593,000 |
Cash and cash equivalents | 93,199,000 | 107,528,000 |
Investment securities available-for-sale, at fair value | 99,913,000 | 147,414,000 |
Investment securities held-to-maturity, at amortized cost | 20,349,000 | 22,520,000 |
Restricted securities, at cost | 15,609,000 | 4,616,000 |
Loans held for sale | 57,006,000 | |
Loans, net of allowance for loan losses of $11,697 and $12,877, respectively | 1,341,760,000 | 1,230,379,000 |
Premises and equipment, net | 14,863,000 | 14,289,000 |
Other real estate owned, net | 775,000 | 1,180,000 |
Accrued interest and other receivables | 7,701,000 | 9,604,000 |
Computer software, net of amortization | 2,493,000 | |
Bank owned life insurance | 36,241,000 | 25,341,000 |
Other assets | 14,499,000 | 23,288,000 |
Total Assets | 1,647,402,000 | 1,643,165,000 |
Liabilities | ||
Non-interest bearing deposits | 530,678,000 | 370,497,000 |
Interest bearing demand deposits | 69,232,000 | 70,307,000 |
Savings and NOW deposits | 85,175,000 | 74,099,000 |
Money market deposits | 267,730,000 | 426,600,000 |
Time deposits | 459,148,000 | 496,743,000 |
Total deposits | 1,411,963,000 | 1,438,246,000 |
Subordinated debt, net | 29,294,000 | 14,834,000 |
Other liabilities | 17,357,000 | 22,420,000 |
Total Liabilities | 1,458,614,000 | 1,475,500,000 |
Commitments and contingencies (Note 13) | ||
Stockholders’ Equity | ||
Preferred stock, $1.00 par value, 2,000,000 shares authorized non-cumulative perpetual; 28,750 issued and outstanding as of December 31, 2021 and December 31, 2020 | 27,263,000 | 27,263,000 |
Common stock, $4.00 par value, 10,000,000 shares authorized; issued and outstanding 7,595,781 shares (including 229,257 nonvested shares) for December 31, 2021 and 7,443,842 shares (including 161,435 nonvested shares) for December 31, 2020 | 29,466,000 | 29,130,000 |
Capital surplus | 67,668,000 | 66,116,000 |
Retained earnings | 64,194,000 | 44,179,000 |
Accumulated other comprehensive income | 197,000 | 977,000 |
Total Stockholders’ Equity | 188,788,000 | 167,665,000 |
Total Liabilities and Stockholders’ Equity | $ 1,647,402,000 | $ 1,643,165,000 |
Consolidated Statements of Fi_2
Consolidated Statements of Financial Condition (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Loans, net of allowance for loan losses | $ 11,697 | $ 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 | 7,595,781 | 7,443,842 |
Common stock, shares outstanding | 7,595,781 | 7,443,842 |
Common stock, non-vested shares | 229,257 | 161,435 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest Income | ||
Interest and fees on loans | $ 61,743,000 | $ 59,634,000 |
Interest and dividends on investment securities | ||
Taxable securities | 1,262,000 | 890,000 |
Tax-exempt securities | 1,060,000 | 1,117,000 |
Interest on federal funds sold | 134,000 | 431,000 |
Total Interest Income | 64,199,000 | 62,072,000 |
Interest Expense | ||
Interest on interest bearing DDA deposits | 229,000 | 317,000 |
Interest on savings and NOW deposits | 165,000 | 221,000 |
Interest on money market deposits | 772,000 | 2,162,000 |
Interest on time deposits | 7,613,000 | 12,322,000 |
Interest on Federal Home Loan Bank advances | 107,000 | |
Interest on subordinated debt | 1,884,000 | 966,000 |
Total Interest Expense | 10,663,000 | 16,095,000 |
Net Interest Income | 53,536,000 | 45,977,000 |
Provision for (recovery of) loan losses | (1,175,000) | 3,610,000 |
Net interest income after provision for (recovery of) loan losses | 54,711,000 | 42,367,000 |
Non-Interest Income | ||
Deposit account service charges | 2,426,000 | 1,916,000 |
Bank owned life insurance income | 900,000 | 779,000 |
Loan swap fee income | 83,000 | 3,510,000 |
Net gain on held-to-maturity securities | 6,000 | |
Net gain on sale of loans | 847,000 | 33,000 |
Other fee income | 1,848,000 | 1,213,000 |
Total Non-Interest Income | 6,110,000 | 7,451,000 |
Non-Interest Expense | ||
Salaries and employee benefits | 19,305,000 | 17,937,000 |
Furniture and equipment expenses | 2,468,000 | 2,128,000 |
Advertising and marketing | 1,565,000 | 1,003,000 |
Occupancy expenses | 1,541,000 | 1,270,000 |
Outside services | 1,394,000 | 959,000 |
Franchise tax | 1,544,000 | 1,370,000 |
FDIC insurance | 1,051,000 | 1,329,000 |
Data processing | 1,189,000 | 1,242,000 |
Administrative expenses | 685,000 | 674,000 |
Other real estate expenses, net | 84,000 | 459,000 |
Other operating expenses | 2,039,000 | 1,887,000 |
Total Non-Interest Expense | 32,865,000 | 30,258,000 |
Income before income taxes | 27,956,000 | 19,560,000 |
Income Tax Expense | 5,785,000 | 3,843,000 |
Net Income | 22,171,000 | 15,717,000 |
Preferred Stock Dividends | 2,156,000 | 635,000 |
Net Income available to Common Shareholders | $ 20,015,000 | $ 15,082,000 |
Net Income per common share: | ||
Basic | $ 2.65 | $ 1.85 |
Diluted | $ 2.65 | $ 1.85 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Comprehensive Income, net of taxes | ||
Net Income | $ 22,171 | $ 15,717 |
Other comprehensive income (loss), net of tax expense (benefit): | ||
Unrealized gains (losses) on available for sale securities arising during the period (net of tax expense (benefit), ($223) and $145, respectively) | (800) | 533 |
Add: reclassification adjustment for amortization of unrealized losses on securities transferred from available for sale to held to maturity (net of tax, $5 and $5, respectively) | 20 | 21 |
Other comprehensive income (loss) | (780) | 554 |
Comprehensive Income | $ 21,391 | $ 16,271 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized gains on arising during the period | $ (223) | $ 145 |
Reclassification adjustment for amortization of unrealized losses on securities transferred | $ 5 | $ 5 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Total | Preferred Stock [Member] | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Beginning Balance at Dec. 31, 2019 | $ 137,034 | $ 32,397 | $ 75,117 | $ 29,097 | $ 423 | |
Preferred stock issued | 27,263 | $ 27,263 | ||||
Vesting of restricted stock | 316 | (316) | ||||
Stock based compensation expense | 1,529 | 1,529 | ||||
Common stock repurchased | (13,797) | (3,583) | (10,214) | |||
Dividends on preferred stock | (635) | (635) | ||||
Net Income | 15,717 | 15,717 | ||||
Other comprehensive income (loss) | 554 | 554 | ||||
Ending Balance at Dec. 31, 2020 | 167,665 | 27,263 | 29,130 | 66,116 | 44,179 | 977 |
Vesting of restricted stock | 336 | (336) | ||||
Stock based compensation expense | 1,888 | 1,888 | ||||
Dividends on preferred stock | (2,156) | (2,156) | ||||
Net Income | 22,171 | 22,171 | ||||
Other comprehensive income (loss) | (780) | (780) | ||||
Ending Balance at Dec. 31, 2021 | $ 188,788 | $ 27,263 | $ 29,466 | $ 67,668 | $ 64,194 | $ 197 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash Flows from Operating Activities | ||
Net income | $ 22,171 | $ 15,717 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization, and accretion, net | 1,893 | 1,746 |
Amortization of right-of-use assets | 472 | 390 |
Deferred income tax (benefit) | 336 | (1,752) |
Writedown of other real estate owned | 22 | 432 |
Loss (gain) on transfer or sale of other real estate owned | 40 | (43) |
Provision for (recovery of) loan losses | (1,175) | 3,610 |
Stock based compensation expense | 1,888 | 1,529 |
Income from bank owned life insurance | (900) | (779) |
Subordinated debt amortization expense | 223 | 29 |
Gain on disposal of premises and equipment | (57) | (36) |
Gain on loans held for sale | (847) | (33) |
Gain on called held-to-maturity securities | (6) | |
Proceeds from sale of loans | 31,264 | |
Change in: | ||
Accrued interest receivable and other receivables | 1,903 | (4,184) |
Other assets | 8,224 | (8,167) |
Other liabilities | (5,063) | 8,524 |
Net cash provided by operating activities | 60,388 | 17,016 |
Activity in available-for-sale securities: | ||
Payments | 7,635 | 8,931 |
Maturities, sales, called, refunded | 417,000 | 235,000 |
Purchases | (378,619) | (298,352) |
Activity in held-to-maturity securities: | ||
Purchases | (1,005) | |
Maturities, called, refunded | 2,040 | 2,260 |
Purchases of equity securities | (10,651) | |
Purchases of restricted investment in bank stock | (758) | (1,222) |
Redemption of restricted investment in bank stock | 332 | 2,763 |
Net increase in loan portfolio | (83,617) | (260,932) |
Proceeds from sale of other real estate owned | 343 | |
Purchases of bank owned life insurance | (10,000) | |
Proceeds from sale of premises and equipment | 79 | 53 |
Purchases of premises and equipment | (1,806) | (1,282) |
Computer software developed | (2,493) | |
Net cash used in investing activities | (60,515) | (313,786) |
Cash Flows from Financing Activities | ||
Net increase in non-interest deposits | 160,181 | 117,790 |
Net increase (decrease) in interest bearing demand, savings, and time deposits | (186,464) | 248,833 |
Net decrease in Federal Home Loan Bank advances and other borrowings | (40,000) | |
Net increase in subordinated debt | 14,237 | |
Issuance of preferred stock, net | 27,263 | |
Cash dividends paid on preferred stock | (2,156) | (635) |
Repurchase of common stock | (13,797) | |
Net cash provided by (used in) financing activities | (14,202) | 339,454 |
Increase (decrease) in Cash and Cash Equivalents | (14,329) | 42,684 |
Cash and Cash Equivalents, beginning of period | 107,528 | 64,844 |
Cash and Cash Equivalents, end of period | 93,199 | 107,528 |
Supplementary Disclosure of Cash Flow Information | ||
Cash paid during the period for interest | 10,165 | 16,358 |
Cash paid during the period for income taxes | 6,838 | 4,618 |
Right of use assets obtained in exchange for new operating lease liabilities | 1,922 | |
Transfers from loans to other real estate owned | 362 | |
Transfers from loans receivable to loans held for sale, at carrying value | 57,006 | |
Transfers from loans held for sale to loans receivable | 26,046 | |
Net unrealized gain (loss) on securities available-for-sale | $ (1,023) | $ 678 |
Organization, Basis of Presenta
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements | 12 Months Ended |
Dec. 31, 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 bank holding company incorporated under the laws of the Commonwealth of Virginia whose principal activity is the ownership and management of MainStreet Bank. On May 18, 2016, the stockholders of MainStreet Bank (the “Bank”) approved a Reorganization Agreement and Plan of Share Exchange (“Reorganization”) whereby the Bank would reorganize into a holding company structure. The Plan of Share Exchange called for each outstanding share of Bank common stock to be automatically converted into and exchanged for one share of the Company’s common stock, and the common stockholders of the Bank would become the common stockholders of the Company on the effective date of the Reorganization. On October 12, 2021, the Company filed an election with the Federal Reserve Board to be a financial holding company in order to engage in a broader range of financial activities than are permitted for bank holding companies generally. 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 are currently 28,750 shares of preferred stock outstanding. On July 15, 2016, the Reorganization became effective, and the Bank became a wholly-owned subsidiary of the Company. The holding company is regulated under the Bank Holding Company Act of 1956, as amended, and is subject to inspection, examination, and supervision by the Federal Reserve Board. On April 18, 2019, the Company completed the registration of its common stock with the Securities Exchange Commission through its filing of a General Form for Registration of Securities on Form 10 (“Form 10”), pursuant to Section 12(b) of the Securities Exchange Act of 1934. The Company is considered an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the “JOBS Act,” and as defined in Section 2(a) of the Securities Act of 1933, as amended, or the “Securities Act.” We are also a “smaller reporting company” as defined in Exchange Act Rule 12b-2. As such, we may elect to comply with certain reduced public company reporting requirements in future reports that we file with the Securities and Exchange Commission, or the “SEC.” We were approved to list shares of our common stock on the Nasdaq Capital Market under our current symbol “MNSB” as of April 22, 2019. 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 In August 2021, the Company created a community development entity (“CDE”) subsidiary, MainStreet Community Capital, LLC, a Virginia limited liability company to promote development in economically distressed areas. This CDE will be an intermediary vehicle for the provision of loans and investments in Low-Income Communities (“LICs”). In January 2022, the Community Development Financial Institutions Fund (“CDFI”) of the United States Department of the Treasury certified MainStreet Community Capital, LLC as a registered CDE. MainStreet Bank is headquartered in Fairfax, Virginia where it also operates a branch. The Bank was incorporated on March 28, 2003 and received its charter from the Bureau of Financial Institutions of the Commonwealth of Virginia (the “Bureau”) on March 16, 2004. The Bank commenced regular operations on May 26, 2004 and is supervised by the Bureau and the Federal Reserve Bank of Richmond. The Bank is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation. The Bank places special emphasis on serving the needs of individuals, and small and medium-sized business and professional concerns in the Washington, D.C. metropolitan area. 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”) as applicable to a smaller reporting company. Principles of Consolidation – The consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries, the Bank and MainStreet Community Capital, LLC. All significant intercompany transactions and balances have been eliminated in consolidation. Cash and cash equivalents – For the purpose of presentation in the Statements of Cash Flows, the Bank has defined cash and cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Federal funds sold.” Investment securities – The Bank’s investment debt securities are classified as either held to maturity, available for sale or trading. At December 31, 2021 and December 31, 2020, the Bank held approximately $20.3 million and $22.5 million, respectively, in securities classified as held to maturity. The Bank held no securities classified as trading. Debt securities which are not classified as held to maturity or trading are classified as securities available for sale. Debt securities available for sale are reported at fair value. Any unrealized gain or loss, net of applicable income taxes, is reported as a separate addition to or reduction from stockholders’ equity. Gains and losses arising from the sale of debt securities available for sale are recognized based on the specific identification method on a trade-date basis and included in results of operations. Debt securities held to maturity includes securities purchased with the ability and positive intent to hold to maturity. Debt securities are stated at historical cost adjusted for amortization of premiums and accretion of discount. Any investment security, for which there has been a value impairment deemed by management to be other than temporary, is written down to its estimated fair value with a charge to current operations. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale debt securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Bank intends to sell the security, whether it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis, and whether the Bank expects to recover the security’s entire amortized cost basis. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Restricted equity securities consist of the Federal Reserve Bank and Federal Home Loan Bank of Atlanta (“FHLB”) stock in the amount of $4.1 million and $826,000 respectively, as of December 31, 2021, compared to $3.3 million and $1.1 million, respectively, as of December 31, 2020. Restricted equity securities also consisted of $126,800 in Community Bankers Bank stock at December 31, 2021 and December 31, 2020. This restricted stock is recorded at cost because its ownership is restricted and it lacks a market for resale. The Bank is required to maintain Federal Reserve Bank stock at a level of 6% of capital and surplus. The FHLB requires the Bank to maintain stock, at a minimum, in an amount equal to 4.5% of outstanding borrowings and 0.20% of total assets. When evaluating restricted stock for impairment, its value is based on ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Bank does not consider these investments to be impaired at December 31, 2021 or December 31, 2020 and no previous impairment has been recognized. Restricted equities include $4.9 million in Low-Income Housing Tax Credits (“LIHTC”) that are carried at amortized cost through the proportional amortization method. Restricted equities also include $5.7 million of nonmarketable securities as of December 31, 2021 that do not qualify for equity method accounting. These investments are recorded at cost because the ownership is restricted and lacks a market for resale. There were no nonmarketable equities as of December 31, 2020. Loans held for sale - Loans intended for sale are recorded at the lower aggregate cost or fair value as of the balance sheet date. Gains and losses on loan sales are determined by the specific-identification method. Loans - The Bank makes commercial and consumer loans to customers. Our recorded investment in loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are reported at their unpaid principal balances adjusted for charge-offs, unearned discounts, any deferred fees or costs on originated loans, and the allowance for loan losses. Interest on loans is credited to operations based on the principal amount outstanding. Loan fees and origination costs are deferred and the net amount is amortized as an adjustment of the related loan’s yield using the effective interest method. The Bank is amortizing these amounts over the contractual life of the related loans. A loan’s past due status is based on the contractual due date of the most delinquent payment due. All loans which are 30 or more days past due at the end of the month are reported to the Board of Directors. Commercial loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Consumer loans are generally placed on nonaccrual status when the collection of principal or interest is 120 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on nonaccrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. It is Bank policy to charge-off loans whose collectability is sufficiently questionable and can no longer be justified as an asset on the balance sheet. To determine if a loan should be charged-off, all possible sources of repayment are analysed, including: (1) the potential for future cash flow, (2) the value of the Bank’s collateral, and (3) the strength of co-makers or guarantors. All principal and previously accrued interest is charged to the allowance for loan losses. All future payments received on the loan are credited to the allowance for loan losses as a recovery. These policies are applied consistently across our loan portfolio. Impairment of a loan - The Bank considers a loan impaired when it is probable that the Bank will be unable to collect all interest and principal payments as scheduled in the loan agreement when due. A loan is not considered impaired during a period of an insignificant delay in payment if the ultimate collectability of all amounts due is expected. Impairment is measured on a loan by loan basis for all commercial, construction and residential loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Consistent with the Bank’s method for nonaccrual loans, payments on impaired loans are first applied to principal outstanding. Smaller balance consumer loans are not individually evaluated for impairment. Troubled Debt Restructuring (TDR) occurs when the Bank agrees to modify the original terms of a loan due to the deterioration in the financial condition of the borrower. TDRs are considered impaired loans. Upon designation as a TDR, the Bank evaluates the borrower’s payment history, past due status and ability to make payments based on the revised terms of the loan. If a loan was accruing prior to being modified as a TDR and if the Bank concludes that the borrower is able to continue making such payments, and there are no other factors or circumstances that would cause it to conclude otherwise, the loan will remain on an accruing status. If a loan was on nonaccrual status at the time of the TDR, the loan will remain on nonaccrual status following the modification and may be returned to accrual status based on the policy for returning loans to accrual status as noted above. Restructured loans for which there was no rate concession, and therefore made at a market rate of interest, may be eligible to be removed from TDR status in periods subsequent to the restructuring depending on the performance of the loan. As of December 31, 2021, and December 31, 2020, the Bank had zero loans classified as TDR. Allowance for Loan Losses - The allowance for loan losses is established through charges to earnings in the form of a provision for loan losses. Loan losses are charged against the allowance for loan losses for the difference between the carrying value of the loan and the estimated net realizable value or fair value of the collateral, if collateral dependent, when: • Management believes that the collectability of the principal is unlikely regardless of delinquency status. • The loan is a consumer loan and is 120 days past due. • The loan is a non-consumer loan, unless the loan is well secured and recovery is probable. • The borrower is in bankruptcy, unless the debt has been reaffirmed, is well secured and recovery is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance represents an amount that, in management’s judgment, will be adequate to absorb probable and estimable losses inherent in the loan portfolio. Management’s judgment in determining the level of the allowance is based on evaluations of the collectability of loans while taking into consideration such factors as trends in delinquencies and charge-offs, changes in the nature and volume of the loan portfolio, current economic conditions that may affect a borrower’s ability to repay and the value of collateral, overall portfolio quality and review of specific potential losses. This evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The evaluation also considers the following risk characteristics of each loan portfolio segment: • Real estate residential mortgage loans, including equity lines of credit, carry risks associated with the continued credit-worthiness of the borrower and the changes in the value of the collateral. • Real estate construction loans and land improvement carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and the value of the collateral may, at any point in time, be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be a loan customer, may be unable to finish the construction project as planned because of financial pressure unrelated to the project. • Commercial real estate loans carry risks of the client’s ability to repay the loan from the cash flow derived from the underlying real estate. Risks inherent in managing a commercial real estate portfolio relate to sudden or gradual drops in property values as well as changes in the economic climate. Real estate security diminishes risks only to the extent that a market exists for the subject collateral. These risks are attempted to be mitigated by carefully underwriting loans of this type and by following appropriate loan-to-value standards. • Commercial and industrial loans carry risks associated with the successful operation of a business or a real estate project, in addition to other risks associated with the ownership of real estate, because the repayment of these loans may be dependent upon the profitability and cash flows of the business or project. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time and cannot be appraised with as much precision. • Consumer secured loans (indirect lending) carry risks associated with the continued credit-worthiness of the borrower and the value of the collateral (e.g., rapidly-depreciating assets such as automobiles). These risks are attempted to be mitigated by following appropriate loan-to-value standards and an experienced management team for this type of portfolio. The allowance consists of specific and general components. The specific component relates to loans that are classified as impaired and is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. For collateral dependent loans, an updated appraisal will be ordered if a current one is not on file. Appraisals are performed by independent third-party appraisers with the relevant industry experience. Adjustments to the appraised value may be made based on recent sales of like properties or general market conditions when appropriate. The general component covers non-classified or performing loans and those loans classified as substandard or special mention that are not impaired. The general component is based on historical loss experience adjusted for qualitative factors, such as current economic conditions, including current home sales and foreclosures, unemployment rates and retail sales. Non-impaired classified loans are assigned a higher allowance factor based on an internal migration analysis, which increases with the severity of classification, than non-classified loans. The characteristics of the loan ratings are as follows: • Pass rated loans are to persons or business entities with an acceptable financial condition, appropriate collateral margins, appropriate cash flow to service the existing loan, and an appropriate leverage ratio. The borrower has paid all obligations as agreed and it is expected that this type of payment history will continue. When necessary, acceptable personal guarantors support the loan. • Watch rated loans have all the characteristics of pass rated loans but show signs of emerging financial weaknesses which the Bank will continue monitoring more closely. Watch rated loans are still performing as agreed. • Special mention loans have a specific defined weakness in the borrower’s operations and the borrower’s ability to generate positive cash flow on a sustained basis. The borrower’s recent payment history is characterized by late payments. The Bank’s risk exposure is mitigated by collateral supporting the loan. The collateral is considered to be well-margined, well maintained, accessible and readily marketable. • Substandard loans are considered to have specific and well-defined weaknesses that jeopardize the viability of the Bank’s credit extension. The payment history for the loan has been inconsistent and the expected or projected primary repayment source may be inadequate to service the loan. The estimated net liquidation value of the collateral pledged and/or ability of the personal guarantor(s) to pay the loan may not adequately protect the Bank. There is a distinct possibility that the Bank will sustain some loss if the deficiencies associated with the loan are not corrected in the near term. A substandard loan would not automatically meet our definition of impaired unless the loan is significantly past due and the borrower’s performance and financial condition provide evidence that it is probable that the Bank will be unable to collect all amounts when due. • Doubtful rated loans have all the weaknesses inherent in a loan that is classified substandard but with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The possibility of loss is extremely high. • Loss rated loans are not considered collectible under normal circumstances and there is no realistic expectation for any future payment on the loan. Loss rated loans are fully charged off. Other Real Estate Owned (“OREO”) - Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs to sell at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, management periodically performs valuations of the foreclosed assets based on updated appraisals, general market conditions, and recent sales of like properties, length of time the properties have been held and our ability and intention with regard to continued ownership of the properties. The Bank may incur additional write-downs of foreclosed assets to fair value less costs to sell if valuations indicate a further deterioration in market values. Revenue and expenses from operations and changes in the valuation allowance are included in net expenses from foreclosed assets and improvements are capitalized. Interest income on loans – Interest on loans is accrued and credited to income on daily balances of the principal amount outstanding. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to meet payments as they become due. Upon such discontinuance, all unpaid accrued interest is reversed. Generally, the Bank will return a loan to accrual status when all delinquent interest and principal becomes current and remains current for six consecutive months under the terms of the loan agreement or the loan is well-secured or in process of collection. Upon returning to accrual status, interest payments applied to the principal balance of a loan while in nonaccrual status are recognized as a yield adjustment over the remaining life. Loan origination and commitment fees and certain related direct costs - Loan origination and commitment fees charged by the Bank and certain direct loan origination costs are deferred and the net amount is amortized as a yield adjustment. The Bank amortizes these net amounts over the life of the related loans or, in the case of demand loans, over the estimated life. Net fees related to standby letters of credit are recognized over the commitment period. Premises and equipment – Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization computed principally on the straight-line basis over the estimated useful life of each asset, which ranges from 3 to 39 years. Leasehold improvements are amortized over the shorter of the related lease term or the estimated useful lives of the improvements. Construction in progress includes assets which will be reclassified and depreciated once placed into service. Computer software - The Company capitalizes new product development costs incurred for software to be sold from the point at which technological feasibility has been established through the point at which the product is ready for general availability. Software development costs that are capitalized are evaluated annually for impairment and are assigned an estimated economic life based on the type of product, market characteristics, and maturity of the market for that particular product. These costs are amortized on a straight-line basis. All of this amortization expense is included within components of operating income. Income taxes – The Bank uses an asset and liability approach in financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The principal items relate primarily to differences between the allowance for loan losses, deferred loan fees, and accumulated depreciation and amortization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense (benefit) is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of December 31, 2021, and December 31, 2020, there were no such liabilities recorded. Interest and penalties associated with unrecognized tax benefits, if any, would be classified as additional income taxes in the statement of income. Comprehensive income – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although, certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. Stock compensation plans – Stock compensation accounting guidance (FASB ASC 718, “Compensation – Stock Compensation”) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Sholes model is used to estimate the fair value of stock options, while the market price of the Bank’s common stock at the date of grant is used for restricted stock awards. No stock options were granted during 2021 and 2020. Earnings per common share – Net income per common share has been determined under the provisions of FASB ASC 260, “Earnings Per Share” and has been computed based on the weighted average common shares outstanding during the year ended December 31, (7,559,310 for 2021 and 8,131,334 for 2020). Diluted earnings per share reflect additional potential common shares that The only potential dilutive stock of the Bank as defined in FASB ASC 260 would be stock options granted to various directors, officers, and employees of the Bank. There were no such options outstanding at December 31, 2021 or December 31, 2020. Restricted stock is included in the computation of basic earnings per share as the holder is entitled to full benefits of a stockholder during the vesting period. Off-balance sheet instruments – In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded, or related fees are incurred or received. Advertising and marketing expense – Advertising and marketing costs are expensed as incurred. 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, (2) fair value of financial instruments, (3) derivative financial instruments, and (4) income taxes. These critical accounting policies require the use of estimates, assumptions and judgments which are based on information available as of the date of the financial statements. Accordingly, as this information changes, future financial statements could reflect the use of different estimates, assumptions and judgments. Certain determinations inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. In connection with the determination of the allowances for losses on loans, management obtains independent appraisals for significant properties. Fair value of financial instruments – Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 20. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. Derivative Financial Instruments – The Bank recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheet. The Bank’s derivative financial instruments include interest rate swaps with certain qualifying commercial loan customers and dealer counterparties. Because the interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, adjustments to reflect unrealized gains and losses resulting from changes in fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The Bank’s interest rate swaps with loan customers and dealer counterparties are described more fully in Note 19. Transfers of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Risks and uncertainties - The outbreak of COVID- 19 has adversely impacted a broad range of industries in which the Company’s customers operate and could impair their ability to fulfil their financial obligations to the Company. The World Health Organization has declared COVID- 19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused disruptions in the U.S. economy and has disrupted banking and ot |
Restrictions on Cash
Restrictions on Cash | 12 Months Ended |
Dec. 31, 2021 | |
Cash And Cash Equivalents [Abstract] | |
Restrictions on Cash | Note 2. Restrictions on Cash To comply with Federal Reserve regulations, the Bank is required to maintain certain average cash reserve balances. The daily average cash reserve requirements were $0 On March 15, 2020, the Federal Reserve reduced reserve requirement ratios to zero percent effective March 26, 2020. This action eliminated reserve requirements for all depository institutions. Prior to the change, reserve requirement ratios on net transactions accounts differed based on the amount of net transactions accounts at the depository institution. A certain amount of net transaction accounts, known as the "reserve requirement exemption amount," was subject to a reserve requirement ratio of zero percent. Net transaction account balances above the reserve requirement exemption amount and up to a specified amount, known as the "low reserve tranche," were subject to a reserve requirement ratio of 3 percent. Net transaction account balances above the low reserve tranche were subject to a reserve requirement ratio of 10 percent. The reserve requirement exemption amount and the low reserve tranche are indexed each year pursuant to formulas specified in the Federal Reserve Act |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2021 | |
Available For Sale Securities [Abstract] | |
Investment Securities | Note 3. Investment Securities Investment securities available-for-sale was comprised of the following: December 31, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 20,000 $ — $ — $ 20,000 Collateralized Mortgage Backed 31,521 151 (790 ) 30,882 Subordinated Debt 8,720 31 (47 ) 8,704 Municipal Securities Taxable 10,704 13 (160 ) 10,557 Tax-exempt 22,978 1,182 (17 ) 24,143 U.S. Governmental Agencies 5,725 — (98 ) 5,627 Total $ 99,648 $ 1,377 $ (1,112 ) $ 99,913 Investment securities held-to-maturity was comprised of the following: December 31, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal Securities Tax-exempt $ 17,849 $ 795 $ — $ 18,644 Subordinated Debt 2,500 — — 2,500 Total $ 20,349 $ 795 $ — $ 21,144 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 Taxable 6,220 51 — 6,271 Tax-exempt 15,128 1,206 — 16,334 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 Tax-exempt $ 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 December 31, 2021 were as follows: December 31, 2021 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 20,002 $ 20,002 $ — $ — Due from one to five years 1,002 1,006 1,329 1,372 Due from after five to ten years 10,927 10,957 10,773 11,174 Due after ten years 67,717 67,948 8,247 8,598 Total $ 99,648 $ 99,913 $ 20,349 $ 21,144 Securities with a fair value of $410,492 and $269,075 at December 31, 2021 and December 31, 2020, respectively, were pledged to secure FHLB advances. There were no securities sold from the available-for-sale portfolio during the year ended December 31, 2021 and 2020. The following tables summarize the fair value and unrealized losses at December 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position: December 31, 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 $ 11,922 $ (215 ) $ 12,043 $ (575 ) $ 23,965 $ (790 ) Subordinated Debt 4,673 (47 ) — — 4,673 (47 ) Municipal Securities Taxable 5,484 (63 ) 3,482 (97 ) 8,966 (160 ) Tax-exempt 2,594 (17 ) — — 2,594 (17 ) U.S Governmental Agencies — — 5,445 (98 ) 5,445 (98 ) Total $ 24,673 $ (342 ) $ 20,970 $ (770 ) $ 45,643 $ (1,112 ) 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 December 31, 2021, there were seven collateralized mortgage backed securities with fair values totaling $11.9 million, ten municipal securities with a fair value of $8.1 million and eleven subordinated debt securities with fair values of $4.7 million considered temporarily impaired and in an unrealized loss position of less than 12 months. At December 31, 2021, there were nine U.S. government agencies with fair values totaling approximately $5.4 million, one collateralized mortgage backed security with a fair value totaling $12.0 million and two municipal securities with a fair value of $3.5 million that were in an unrealized loss position of more than 12 months. The Bank does not consider any of the securities in the available for sale portfolio to be other-than-temporarily impaired at December 31, 2021 and December 31, 2020. There were no securities sold during 2021 or 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 December 31, 2021 and December 31, 2020 was $29,016 and $54,836, respectively. |
Loans Receivable
Loans Receivable | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Loans Receivable | Note 4. Loans Receivable Loans receivable were comprised of the following: (Dollars in thousands) December 31, 2021 December 31, 2020 Residential Real Estate: Single family $ 161,362 $ 139,338 Multifamily 137,705 43,332 Farmland 1,323 861 Commercial Real Estate: Owner-occupied 173,086 141,813 Non-owner occupied 361,101 325,085 Construction and Land Development 337,173 324,906 Commercial – Non Real-Estate: Commercial & industrial 164,014 230,027 Consumer – Non Real Estate: Unsecured 185 241 Secured 22,986 43,832 Total Gross Loans 1,358,935 1,249,435 Less: unearned fees (5,478 ) (6,178 ) Less: unamortized discount on consumer secured loans — (1 ) Less: allowance for loan losses (11,697 ) (12,877 ) Net Loans $ 1,341,760 $ 1,230,379 The unsecured consumer loans above include $185,135 and $241,064 of overdrafts reclassified as loans for the years ended December 31, 2021 and December 31, 2020, respectively. There were no loans held for sale at December 31, 2021. The Bank held $57.0 in commercial real estate loans for sale at December 31, 2020. The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2021 and December 31, 2020: (Dollars in thousands) December 31, 2021 December 31, 2020 Residential Real Estate: Single Family $ — $ 149 Total $ — $ 149 The following tables present the segments of the loan portfolio summarized by aging categories as of December 31, 2021 and December 31, 2020: December 31, 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 $ — $ — $ — $ — $ 161,362 $ 161,362 $ — Multifamily — — — — 137,705 137,705 — Farmland — — — — 1,323 1,323 — Commercial Real Estate: Owner occupied — — — — 173,086 173,086 — Non-owner occupied — — — — 361,101 361,101 — Construction & Land Development — — — — 337,173 337,173 — Commercial – Non Real Estate: Commercial & industrial — — — — 164,014 164,014 — Consumer – Non Real Estate: Unsecured — — — — 185 185 — Secured 46 25 — 71 22,915 22,986 — Total $ 46 $ 25 $ — $ 71 $ 1,358,864 $ 1,358,935 $ — 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 No loans were modified under the terms of a TDR during the years ended December 31, 2021 and 2020, and there were no loans modified as TDR’s that subsequently defaulted during the years ended December 31, 2021 and 2020 that were modified as TDR’s within the twelve months prior to default. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 5. Allowance for Loan Losses The following tables summarize the activity in the allowance for loan losses by loan class for the twelve months ended December 31, 2021 and 2020: Allowance for Credit Losses By Portfolio Segment For the twelve months ended December 31, 2021 Real Estate Residential Commercial Construction Consumer Commercial Total Beginning Balance $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 Charge-offs — — — (32 ) — (32 ) Recoveries — — — 16 11 27 Provision 449 (863 ) (629 ) (256 ) 124 (1,175 ) Ending Balance $ 1,672 $ 5,689 $ 2,697 $ 99 $ 1,540 $ 11,697 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,672 $ 5,689 $ 2,697 $ 99 $ 1,540 $ 11,697 Allowance for Credit Losses By Portfolio Segment For the twelve months ended December 31, 2020 Real Estate Residential Commercial Construction Consumer Commercial Total Beginning Balance $ 1,030 $ 4,254 $ 2,180 $ 568 $ 1,552 $ 9,584 Charge-offs — (1 ) — (60 ) (1,792 ) (1,853 ) Recoveries 2 — — 8 $ 1,526 1,536 Provision 191 2,299 1,146 (145 ) 119 3,610 Ending Balance $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 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 December 31, 2021 and December 31, 2020: December 31, 2021 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 300,390 $ 147 $ 300,243 Commercial Real Estate 534,187 1,076 533,111 Construction and Land Development 337,173 — 337,173 Commercial & Industrial ( 1) 164,014 8 164,006 Consumer 23,171 — 23,171 Total $ 1,358,935 $ 1,231 $ 1,357,704 (1) No allowance assigned 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 ( 1) 230,027 58 229,969 Consumer 44,073 — 44,073 Total $ 1,249,435 $ 1,447 $ 1,247,988 (1) No allowance assigned to the $135.2 in PPP loans due to SBA guarantee The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2021 and December 31, 2020: December 31, 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 $ 147 $ 147 $ — $ 301 $ 301 $ — Commercial Real Estate: Non-owner occupied 1,076 1,076 — 1,088 1,088 — Commercial & Industrial 8 8 — 58 58 — Total $ 1,231 $ 1,231 $ — $ 1,447 $ 1,447 $ — The following table presents additional information regarding the impaired loans for the years ended December 31, 2021 and 2020. Years Ended December 31, 2021 December 31, 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 $ 209 $ 9 $ 304 $ 16 Commercial Real Estate: Non-owner occupied 1,080 65 1,097 97 Commercial & Industrial 32 2 64 10 Total $ 1,321 $ 76 $ 1,465 $ 123 No additional funds are committed to be advanced in connection with impaired loans. There were no nonaccrual loans at December 31, 2021 and December 31, 2020 excluded from the impaired loan disclosure. Credit quality risk ratings include regulatory classifications of Pass, Watch, Special Mention, Substandard, Doubtful and Loss. Loans classified as Pass have quality metrics to support that the loan will be repaid according to the terms established. Loans classified as Watch have similar characteristics as Pass loans with some emerging signs of financial weaknesses that should be monitored closer. Loans classified as Special Mention have potential weaknesses that deserve management’s close attention. If uncorrected, the potential weaknesses may result in deterioration of prospects for repayment. Loans classified substandard have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They include loans that are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified doubtful have all the weaknesses inherent in loans classified substandard with the added characteristic that collection or liquidation in full, on the basis of current conditions and facts, is highly improbable. Loans classified as a loss are considered uncollectible and are charged to the allowance for loan losses. Loans not classified are rated pass. The following tables summarize the aggregate Pass and criticized categories of Watch, Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2021 and December 31, 2020: December 31, 2021 (Dollars in thousands) Pass Watch Special Mention Substandard Doubtful Total Residential Real Estate: Single Family $ 160,234 $ — $ 734 $ 394 $ — $ 161,362 Multifamily 137,705 — — — — 137,705 Farmland 1,323 — — — — 1,323 Commercial Real Estate: Owner occupied 168,352 4,734 — — — 173,086 Non-owner occupied 297,873 46,379 15,275 1,574 — 361,101 Construction & Land Development 317,846 19,327 — — — 337,173 Commercial – Non Real Estate: Commercial & industrial 159,634 145 857 3,378 — 164,014 Consumer – Non Real Estate: Unsecured 185 — — — — 185 Secured 22,986 — — — — 22,986 Total $ 1,266,138 $ 70,585 $ 16,866 $ 5,346 $ — $ 1,358,935 December 31, 2020 (Dollars in thousands) Pass Watch Special Mention Substandard Doubtful 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 |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 6. Related Party Transactions The Bank grants loans and letters of credit to its executive officers, directors and their affiliated entities. Such loans are made in the ordinary course of business on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with unrelated persons, and, in the opinion of management, do not involve more than normal risk or present other unfavorable features. The aggregate amount of such loans outstanding at December 31, 2021 was approximately $642,640 compared to $648,806 at December 31, 2020. During 2021, new loans and line of credit advances to such related parties was approximately $50,971 compared to $146,025 during 2020. Repayments on loans to directors and officers were $57,137 and $357,065 during 2021 and 2020, respectively. The Bank maintains deposit accounts with some of its executive officers, directors and their affiliated entities. Such deposit accounts at December 31, 2021 and December 31, 2020 amounted to approximately $2.3 million and $1.4 million, respectively. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 7. Premises and Equipment Premises and equipment are summarized as follows at December 31: (Dollars in thousands) 2021 2020 Cost Building $ 12,765 $ 12,765 Land 2,856 2,856 Leasehold improvements 1,083 996 Furniture, fixtures and equipment 3,680 2,741 Computer software and equipment 1,458 1,165 21,842 20,523 Less accumulated depreciation (7,121 ) (6,261 ) Construction in progress 142 27 Premises and equipment, net $ 14,863 $ 14,289 Depreciation and amortization charged to operations were $1.2 million and $1.1 million during the years ended December 31, 2021 and December 31, 2020, respectively. |
Intangible Assets
Intangible Assets | 12 Months Ended |
Dec. 31, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Note 8. Intangible Assets The carrying amount of computer software developed was $2.5 million and $0 at December 31, 2021 and December 31, 2020, respectively. The following table presents the changes in the carrying amount of computer software developed during the twelve months ended December 31, 2021. Years Ended December 31, 2021 December 31, 2020 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable intangible assets: Computer software $ 2,493 $ — $ — $ — Total $ 2,493 $ — $ — $ — 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 December 31, 2021, the Company has not recorded any amortization on its intangible computer software. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | Note 9. Deposits Time deposits in denominations of $250,000 or more totaled approximately $289.7 million and $219.0 million at December 31, 2021 and 2020, respectively. At December 31, 2021, maturities of time deposits are as follows: (Dollars in thousands) Year ended December 31, 2022 $ 207,264 2023 175,928 2024 54,539 2025 20,440 Thereafter 977 Total $ 459,148 Brokered deposits, as defined by the FDIC, totaled approximately $245.1 million and $279.5 million at December 31, 2021 and December 31, 2020, respectively. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Note 10. Borrowed Funds The Bank also has a credit availability agreement with the FHLB based on a percentage of total assets. As of December 31, 2021, the credit availability with FHLB is approximately $414.0 million. This credit availability agreement provides the Bank with access to a myriad of advance products offered by the FHLB. The rate of interest charged is based on market conditions. At December 31, 2021, there were commercial real estate, residential 1-4 and multi-family loans totaling $762.3 million were used to collateralize FHLB advances. There was one security pledged as collateral to secure FHLB advances for the amount of $410,492 at December 31, 2021. The Bank did not have any FHLB advances at December 31, 2021 or December 31, 2020. The average balance on FHLB advances for the years ended December 31, 2021 and December 31, 2020 was approximately $0 and $6.2 million, respectively. The weighted average interest rate paid at December 31, 2021 and 2020 was 0% and 1.73%, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Note 11. Income Taxes The Company files tax returns in the U.S. federal jurisdiction and required states. With few exceptions, the Bank is no longer subject to tax examination by tax authorities for years prior to 2017. The Commonwealth of Virginia assesses a Bank Franchise Tax on banks instead of a state income tax. The Bank Franchise Tax expense is reported in non-interest expense and the tax’s calculation is unrelated to taxable income. The provision for income taxes consists of the following components: (Dollars in thousands) 2021 2020 Current expense $ 5,449 $ 5,595 Deferred expense (benefit) 336 (1,752 ) Total $ 5,785 $ 3,843 Income tax expense for the years ended December 31, 2021 and 2020 differed from the federal statutory rate applied to income before income taxes for the following reasons: Year ended December 31, (Dollars in thousands) 2021 2020 Computed “expected” income tax expense $ 5,871 $ 4,108 Increase (decrease)in income taxes resulting from: Non-deductible expense 15 25 Tax exempt Interest (230 ) (259 ) BOLI Income (189 ) (164 ) Low Income Housing Investment 49 — State Income Taxes 326 165 Restricted Stock Adjustment 4 (95 ) Federal tax credits (64 ) — Other Adjustments 3 63 Total $ 5,785 $ 3,843 The tax effects of temporary differences result in deferred tax assets and liabilities as presented below: December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,591 $ 2,851 Restricted stock 373 313 OREO adjustment 96 95 Net loan fees 1,214 1,368 Organizational costs 5 6 Right-of-use liability 1,718 1,463 Accrued compensation 116 — Unrealized losses on securities transferred to held to maturity — 12 Gross deferred tax assets 6,113 6,108 Deferred tax liabilities: Depreciation 393 267 Unrealized gain on securities available for sale 56 285 Prepaid expense 22 20 Right-of-use asset 1,585 1,371 Other 11 — Gross deferred tax liabilities 2,067 1,943 Net deferred tax asset $ 4,046 $ 4,165 |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | N ote 12. Earnings Per Common Share Basic earnings per share excludes dilution and is computed by dividing net income available to common stockholders by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock which then shared in the earnings of the Bank. There were no such potentially dilutive securities outstanding in 2021 or 2020. The weighted average number of shares used in the calculation of basic and diluted earnings per share includes unvested restricted shares of the Company’s common stock outstanding. Applicable guidance requires that outstanding unvested share-based payment awards that contain voting rights and rights to non-forfeitable dividends participate in undistributed earnings with common stockholders. For the Year Ended December 31, (Dollars in thousands) 2021 2020 Net income $ 22,171 $ 15,717 Preferred stock dividends (2,156 ) (635 ) Net income available to common shareholders $ 20,015 $ 15,082 Weighted average number of shares issued, basic and diluted 7,559,310 8,131,334 Net income per common share: Basic and diluted income available to common shareholders $ 2.65 $ 1.85 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13. Commitments and Contingencies The Bank’s financial statements do not reflect various commitments and contingent liabilities which arise in the normal course of business and which involve elements of credit risk, interest risk and liquidity risk. These commitments and contingent liabilities are commitments to extend credit and standby letters of credit. The amounts of loan commitments and standby letters of credit are set forth in the following table as of December 31, 2021 and 2020: December 31, (Dollars in thousands) 2021 2020 Loan commitments $ 304,335 $ 219,414 Standby letters of credit $ 230 $ 1,062 Commitments to extend credit and standby letters of credit all include exposure to some credit loss in the event of nonperformance of the customer. The Bank’s credit policies and procedures for credit commitments and financial guarantees are the same as those for extensions of credit that are recorded on the statements of financial condition. Because these instruments have fixed maturity dates, and because many of them expire without being drawn upon, they do not generally present any significant liquidity risk to the Bank. The Bank has not incurred any losses on commitments in 2021 or 2020. During 2020, the Bank made a commitment of $5.0 million to the Housing Equity Fund of Virginia XXIV, L.L.C. This commitment will be funding through capital calls from the fund and we expect our investment to be fully funded by December 31, 2023. During 2020, the Bank made a commitment of $2.0 million to the Washington Housing Initiative Impact Pool, L.L.C. This commitment will be funding through capital calls from the fund. As of December 31, 2021, approximately $656,000 have been deployed, with a remaining unfunded balance of approximately $1.3 million. From time to time, we are a party to various litigation matters incidental to our ordinary conduct of our business. Management believes that none of these legal proceedings, individually or in the aggregate, will have a material adverse impact on the results of operations or financial condition of the Company. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | Note 14. Leases The right-of-use assets and lease liabilities are included in other assets and other liabilities, respectively, in the Consolidated Balance Sheets. 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 twelve months ended December 31, 2021 was $590,000 and $399,000 for the same period in 2020. During twelve months ended December 31, 2021 and 2020, the Company recognized lease expense of $693,000 and $590,000, respectively. As of December 31, (Dollars in thousands) 2021 2020 Lease liabilities $ 7,753 $ 6,607 Right-of-use assets $ 7,154 $ 6,195 Weighted-average remaining lease term – operating leases (in months). 173.2 187.5 Weighted-average discount rate – operating leases 2.81 % 3.12 % For the year ended December 31, (Dollars in thousands) 2021 2020 Lease Cost Operating lease cost $ 693 $ 590 Total lease costs $ 693 $ 590 Cash paid for amounts included in measurement of lease liabilities $ 590 $ 399 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. As of December 31, 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 December 31, 2021 is as follows: (Dollars in thousands) 2022 $ 607 2023 638 2024 654 2025 671 2026 689 Thereafter 6,268 Total undiscounted cash flows 9,527 Discount (1,774 ) Lease liabilities $ 7,753 |
Significant Concentrations of C
Significant Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2021 | |
Concentration Of Credit Risk [Abstract] | |
Significant Concentrations of Credit Risk | Note 15. Significant Concentrations of Credit Risk Substantially all the Bank’s loans, commitments and standby letters of credit have been granted to customers located in the greater Washington, D.C. Metropolitan Area. The concentrations of credit by type of loan are set forth in Note 4. The Bank maintains its cash and federal funds sold in correspondent bank deposit accounts. The amount on deposit at December 31, 2021 exceeded the insurance limits of the Federal Deposit Insurance Corporation by $51.2 million. The Bank has not experienced any losses in such accounts and believes it is not exposed to any significant credit risks. |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 16. Regulatory Matters Information presented for December 31, 2021 and December 31, 2020, reflects the Basel III capital requirements that became effective January 1, 2015 for the Bank. Under these capital requirements and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk- weightings and other factors. The Basel III Capital Rules, a comprehensive capital framework for U.S. banking organizations, became effective for the Company and the Bank on January 1, 2015 (subject to a phase-in period for certain provisions). Under the Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk-based capital ratios. The capital conservation buffer was phased in from 0.0% for 2015 to 2.50% by 2019. The capital conservation buffer for 2020 and 2021 is 2.50%. Quantitative measures established by regulation to ensure capital adequacy require the Company to maintain minimum amounts and ratios of Total capital, Common Equity Tier 1 capital, and Tier 1 capital (as defined in the regulations) to risk weighted assets (as defined), and of Tier 1 capital (as defined) to average assets (as defined). Management believes, as of December 31, 2021, the Company and the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and ratios are presented in the table (dollars in thousands): Actual Capital Adequacy Purposes To Be Well Capitalized Under the Prompt Corrective Action Provision (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total capital (to risk-weighted assets) $ 227,359 16.06 % $ 113,249 ≥ 8.0% $ 141,562 ≥ 10.0% Common equity tier 1 capital (to risk-weighted assets) $ 215,662 15.23 % $ 63,703 ≥ 4.5% $ 113,249 ≥ 8.0% Tier 1 capital (to risk-weighted assets) $ 215,662 15.23 % $ 84,937 ≥ 6.0% $ 113,249 ≥ 8.0% Tier 1 capital (to average assets) $ 215,662 12.90 % $ 66,898 ≥ 4.0% $ 83,622 ≥ 5.0% As of December 31, 2020 Total capital (to risk-weighted assets) $ 189,534 14.60 % $ 103,872 ≥ 8.0% $ 129,840 ≥ 10.0% Common equity tier 1 capital (to risk-weighted assets) $ 176,657 13.61 % $ 58,428 ≥ 4.5% $ 103,872 ≥ 8.0% Tier 1 capital (to risk-weighted assets) $ 176,657 13.61 % $ 77,904 ≥ 6.0% $ 103,872 ≥ 8.0% Tier 1 capital (to average assets) $ 176,657 10.78 % $ 65,557 ≥ 4.0% $ 81,946 ≥ 5.0% |
Defined Contribution Benefit Pl
Defined Contribution Benefit Plan | 12 Months Ended |
Dec. 31, 2021 | |
Compensation And Retirement Disclosure [Abstract] | |
Defined Contribution Benefit Plan | Note. 17 Defined Contribution Benefit Plan The Bank adopted a 401(k) defined contribution plan on October 1, 2004, which is administered by Principal Investments. Participants have the right to contribute up to a maximum of 15% of pretax annual compensation or the maximum allowed by the Internal Revenue Code, whichever is less. The Bank began making a matching contribution to the plan on January 1, 2010. The Bank matches dollar for dollar up to 3% of the employee’s contribution and then fifty cents on the dollar on the next two percentage points up to the employee contribution of 5%. The total amount the Bank matched during 2021 and 2020 was $492,578 and $478,960, respectively. |
Stock Based Compensation Plan
Stock Based Compensation Plan | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation Plan | Note 18. Stock Based Compensation Plan ASC Topic 718, Compensation – Stock Compensation, On July 17, 2019, the Board of Directors of the Bank adopted, and the Bank’s shareholders subsequently approved, the MainStreet Bank 2019 Equity Incentive Plan (the “2019 Plan”), to provide officers, other selected employees and directors of the Bank with additional incentives to promote the growth and performance of the Bank. During the year ended December 31, 2021, there were 153,636 restricted shares awarded, 1,697 restricted shares were forfeited, and no stock options were awarded under the 2019 Plan. The restricted shares awarded during 2021 vest equally on an annual basis over a three, five, or ten year period. As a result of the stockholders’ approval of the 2019 Plan, no additional awards have been or will be made under the Bank’s 2016 Plan, although all awards that were outstanding under the 2016 Plan as of July 17, 2019 remained outstanding in accordance with their terms. A summary of the status of the Bank’s nonvested restricted stock shares as of December 31, 2021 and changes during the year ended December 31, 2021 is presented below: Nonvested Restricted Stock Shares Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 161,435 $ 18.36 Granted 153,636 19.38 Vested (84,117 ) 17.53 Forfeited (1,697 ) 20.04 Nonvested at December 31, 2021 229,257 $ 19.33 As of December 31, 2021, there was $2.7 million of total unrecognized compensation cost related to nonvested restricted stock awards. The cost is expected to be recognized over approximately ten years. The total fair value of shares vested during the years ended December 31, 2021 and 2020 was $1.5 million and $1.2 million, respectively. |
Derivatives and Risk Management
Derivatives and Risk Management Activities | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivatives and Risk Management Activities | Note 19. Derivatives and Risk Management Activities The Bank uses derivative financial instruments (or “derivatives”) primarily to assist customers with their risk management objectives. The Bank classifies these items as free standing derivatives consisting of customer accommodation interest rate loan swaps (or “interest rate loan swaps”). The Bank enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Bank simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Bank receives a floating rate. These back-to-back 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 instruments as of December 31, 2021 and December 31, 2020. December 31, 2021 Customer-related interest rate contracts (Dollars in thousands) Notional Amount Positions Assets Liabilities Collateral Pledges Matched interest rate swap with borrower $ 210,793 40 $ 2,097 — $ 15,120 Matched interest rate swap with counterparty $ 210,793 40 — $ 2,097 $ 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 twelve months ended December 31, 2021 and 2020 was $83,000 and $3.5 million, respectively. |
Fair Value Presentation
Fair Value Presentation | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Presentation | Note 20. 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 December 31, 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 19: Derivatives and Risk Management Activities”, 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 December 31, 2021 and December 31, 2020: December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 20,000 $ — $ 20,000 Collateralized Mortgage Backed — 30,882 — 30,882 Subordinated Debt — 8,704 — 8,704 Municipal Securities Taxable — 10,557 — 10,557 Tax-exempt — 24,143 — 24,143 U.S. Government Agencies — 5,627 — 5,627 Derivative asset – interest rate swap on loans — 2,097 — 2,097 Total $ — $ 102,010 $ — $ 102,010 Liabilities: Derivative liability – interest rate swap on loans — 2,097 — 2,097 Total $ — $ 2,097 $ — $ 2,097 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 Taxable — 6,271 — 6,271 Tax-exempt — 16,334 — 16,334 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. The vast majority of the collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Bank using observable market data (Level 2). However, if the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Bank because of marketability, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant. Likewise, values for inventory and accounts receivables collateral are based on financial statement balances or aging reports (Level 3). Impaired loans allocated to the Allowance for Loan Losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Statements of Income. 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 December 31, 2021 and December 31, 2020 that were measured at fair value on a nonrecurring basis during the period: December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Other Real Estate Owned $ — $ — $ 775 $ 775 Total $ — $ — $ 775 $ 775 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 presents quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonreoccuring basis as of December 31, 2021 Fair Value Measurements at December 31, 2021 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Other Real Estate Owned, net $ 775 Appraisals Discount to reflect current market conditions and estimated selling costs 6% - 10% Total $ 775 Fair Value of Financial Instruments FASB ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Additionally, in accordance with ASU 2016-01, which the Company adopted on January 1, 2018 on a prospective basis, the Company uses the exit price notion, rather than the entry price notion, in calculation 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. December 31, 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 $ 93,199 $ 93,199 $ 93,199 $ — $ — Restricted equity securities 15,609 15,609 — 15,609 — Securities: Available for sale 99,913 99,913 — 99,913 — Held to maturity 20,349 21,144 — 21,144 — Loans, net 1,341,760 1,346,048 — — 1,346,048 Derivative asset – interest rate swap on loans 2,097 2,097 — 2,097 — Bank owned life insurance 36,241 36,241 — 36,241 — Accrued interest receivable 6,735 6,735 — 6,735 — Liabilities: Deposits $ 1,411,963 $ 1,415,551 $ — $ 952,815 $ 462,736 Subordinated debt, net 29,294 29,570 — 29,570 — Derivative liability – interest rate swaps on loans 2,097 2,097 — 2,097 — Accrued interest payable 462 462 — 462 — 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 Subordinated debt, net 14,834 14,834 — 14,834 — Derivative liability – interest rate swaps on loans 12,152 12,152 — 12,152 — Accrued interest payable 490 490 — 490 — Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Bank’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Bank’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment, and therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on-balance sheet and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets that are not considered financial assets include deferred income taxes and bank premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. 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 December 31, 2021 from December 31, 2020. |
Other Real Estate Owned
Other Real Estate Owned | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned | Note 21. Other Real Estate Owned At December 31, 2021 and 2020, Other Real Estate Owned was $775,000 and $1.2 million, respectively. OREO is comprised of non-residential property associated with a commercial relationship and located in Virginia. Changes in the balance for OREO are as follows: (Dollars in thousands) 2021 2020 Balance, beginning of year $ 1,180 $ 1,207 Loss on valuation, net (22 ) (432 ) Sale of other real estate owned (383 ) — Transfers between loans and other real estate owned — 362 Gain on transfer of real estate — 43 Balance, end of year $ 775 $ 1,180 Expenses applicable to other real estate owned include the following: (Dollars in thousands) 2021 2020 Net loss (gain) on transfer or sale of real estate $ 40 $ (43 ) Loss on valuation, net 22 432 Operating expenses, net of rental income 22 27 Balance, end of year $ 84 $ 459 As of December 31, 2021, there were no real estate loans in the process of foreclosure. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2021 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income | Note 22. 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 December 31, 2021 and December 31, 2020: (Dollars in thousands) 2021 2020 Unrealized gain on securities $ 265 $ 1,287 Unrealized loss on securities transferred to HTM (29 ) (55 ) Securities gains included in net income — — Tax effect (39 ) (255 ) Total accumulated other comprehensive income $ 197 $ 977 |
Capital
Capital | 12 Months Ended |
Dec. 31, 2021 | |
Capital [Abstract] | |
Capital | Note 23. Capital On September 18, 2019, the Board of Directors of the Company authorized a common stock repurchase program to repurchase up to $10.0 million of the Company’s common stock at the discretion of management. The Company did not repurchase any of its shares during the year ended December 31, 2019. On September 15, 2020, the Company issued 1,000,000 depositary shares, each representing a 1/40th On October 22, 2020, the Board of Directors of the Company authorized a common stock repurchase program to repurchase up to $17.0 million of the Company’s common stock at the discretion of management. The new common stock repurchase program replaced the Company’s previous repurchase plan which was authorized on September 18, 2019. The Company repurchased approximately $13.8 million of common stock during the year ended December 31, 2020. The Company did not repurchase any common stock during the year ended December 31, 2021. |
Subordinated Notes
Subordinated Notes | 12 Months Ended |
Dec. 31, 2021 | |
Debt Disclosure [Abstract] | |
Subordinated Notes | Note 24. Subordinated Notes On December 30, 2016, the Company completed the issuance of $14.3 million in aggregate principal amount of fixed-to-floating rate subordinated notes in a private placement transaction to various accredited investors. During the first quarter 2017, an additional $700,000 of subordinated notes was issued for a total issuance of $15.0 million. The net proceeds of the offering supported growth and were used for other general business purposes. The notes had a maturity date of December 31, 2026 and an annual fixed interest rate of 6.25% until December 31, 2021. Thereafter, the notes were to have a floating interest rate based on three-month LIBOR rate plus 425 basis points (4.25%) (computed on the basis of a 360-day year of twelve 30-day months) from and including January 1, 2022 to the maturity date or any early redemption date. Interest was paid semi-annually, in arrears, on July 1 and January 1 of each year during the time that the notes remain outstanding. On April 6, 2021, the Company completed the issuance of $30.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes in a private placement transaction to various accredited investors. The net proceeds of the offering are intended to retire the subordinated debt issued in 2016, to support growth and be used for other general business purposes. The notes have a maturity date of April 15, 2031 and have an annual fixed interest rate of 3.75% until April 15, 2026. Thereafter, the notes will have a floating interest rate based on three-month SOFR rate plus 302 basis points (3.02%) (computed on the basis of a 360-day year of twelve 30-day months) from and including April 15, 2026 to the maturity date or any early redemption date. Interest will be paid semi-annually, in arrears, on April 15 and October 15 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on April 15, July 15, October 15 and January 15 throughout the floating interest rate period or earlier redemption date. On March 1, 2022, the Company completed the issuance of $43.8 million in aggregate principal amount of fixed-to-floating rate subordinated notes in a private placement transaction to various accredited investors. The net proceeds of the offering will be used to support growth and for other general business purposes. The notes have a maturity date of March 15, 2032 and have an annual fixed interest rate of 4.00% until March 15, 2027. Thereafter, the notes will have a floating interest rate based on three-month SOFR rate plus 233 basis points (2.33%) (computed on the basis of a 360-day year of twelve 30-day months) from and including March 15, 2027 to the maturity date or any early redemption date. Interest will be paid semi-annually, in arrears, on March 15 and September 15 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on March 15, June 15, September 15 and December 15 throughout the floating interest rate period or earlier redemption date. |
Condensed Parent Company Financ
Condensed Parent Company Financial Statements | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Parent Company Financial Statements | Note 25. Condensed Parent Company Financial Statements Condensed financial statements pertaining only to the Company are presented below. The investment in subsidiary is accounted for using the equity method of accounting. The payment of dividends by the subsidiary is restricted by various regulatory limitations. Banking regulations also prohibit extensions of credit to the parent company unless appropriately secured by assets. Condensed Parent Company Only Condensed Balance Sheet (Dollars in thousands) December 31, 2021 2020 ASSETS Cash on deposit with subsidiary $ 376 $ 3,754 Investment in subsidiary 215,858 177,634 Other assets 2,138 1,560 Total Assets $ 218,372 $ 182,948 Liabilities: Other liabilities $ 290 $ 449 Subordinated debt, net of debt issuance costs 29,294 14,834 Stockholders’ equity 188,788 167,665 Total Liabilities and Stockholders’ Equity $ 218,372 $ 182,948 Condensed Statement of Income (Dollars in thousands) For the Year Ended December 31, 2021 2020 Income Dividends from subsidiary $ 2,156 $ 635 Expenses Subordinated debt interest expense 1,884 966 Non-interest expense — 4 Total expenses 1,884 970 Undistributed earnings of subsidiary 21,504 15,848 Net income before income taxes 21,776 15,513 Income tax benefit (395 ) (204 ) Net income $ 22,171 $ 15,717 Less: preferred stock dividends (2,156 ) (635 ) Net income available to common shareholders $ 20,015 $ 15,082 Condensed Statement of Cash Flows (Dollars in thousands) Year Ended December 31, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 22,171 $ 15,717 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (21,504 ) (15,848 ) Stock based compensation 1,888 1,529 Subordinated debt amortization expense 223 29 Decrease (increase) in other assets (578 ) 212 Increase (decrease) in other liabilities (159 ) 449 Net cash provided by operating activities 2,041 2,088 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in bank subsidiary (17,500 ) (12,500 ) Net cash used in investing activities (17,500 ) (12,500 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase of common stock — (13,797 ) Issuance of preferred stock, net — 27,263 Cash dividends paid on preferred stock (2,156 ) (635 ) Net increase in subordinated debt 14,237 — Net cash provided by financing activities 12,081 12,831 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,378 ) 2,419 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,754 1,335 CASH AND CASH EQUIVALENTS, END OF YEAR $ 376 $ 3,754 |
Organization, Basis of Presen_2
Organization, Basis of Presentation and Impact of Recently Issued Accounting Pronouncements (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Organization | Organization MainStreet Bancshares Inc. (the “Company”) is a bank holding company incorporated under the laws of the Commonwealth of Virginia whose principal activity is the ownership and management of MainStreet Bank. On May 18, 2016, the stockholders of MainStreet Bank (the “Bank”) approved a Reorganization Agreement and Plan of Share Exchange (“Reorganization”) whereby the Bank would reorganize into a holding company structure. The Plan of Share Exchange called for each outstanding share of Bank common stock to be automatically converted into and exchanged for one share of the Company’s common stock, and the common stockholders of the Bank would become the common stockholders of the Company on the effective date of the Reorganization. On October 12, 2021, the Company filed an election with the Federal Reserve Board to be a financial holding company in order to engage in a broader range of financial activities than are permitted for bank holding companies generally. 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 are currently 28,750 shares of preferred stock outstanding. On July 15, 2016, the Reorganization became effective, and the Bank became a wholly-owned subsidiary of the Company. The holding company is regulated under the Bank Holding Company Act of 1956, as amended, and is subject to inspection, examination, and supervision by the Federal Reserve Board. On April 18, 2019, the Company completed the registration of its common stock with the Securities Exchange Commission through its filing of a General Form for Registration of Securities on Form 10 (“Form 10”), pursuant to Section 12(b) of the Securities Exchange Act of 1934. The Company is considered an “emerging growth company” under the Jumpstart Our Business Startups Act of 2012, or the “JOBS Act,” and as defined in Section 2(a) of the Securities Act of 1933, as amended, or the “Securities Act.” We are also a “smaller reporting company” as defined in Exchange Act Rule 12b-2. As such, we may elect to comply with certain reduced public company reporting requirements in future reports that we file with the Securities and Exchange Commission, or the “SEC.” We were approved to list shares of our common stock on the Nasdaq Capital Market under our current symbol “MNSB” as of April 22, 2019. 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 In August 2021, the Company created a community development entity (“CDE”) subsidiary, MainStreet Community Capital, LLC, a Virginia limited liability company to promote development in economically distressed areas. This CDE will be an intermediary vehicle for the provision of loans and investments in Low-Income Communities (“LICs”). In January 2022, the Community Development Financial Institutions Fund (“CDFI”) of the United States Department of the Treasury certified MainStreet Community Capital, LLC as a registered CDE. MainStreet Bank is headquartered in Fairfax, Virginia where it also operates a branch. The Bank was incorporated on March 28, 2003 and received its charter from the Bureau of Financial Institutions of the Commonwealth of Virginia (the “Bureau”) on March 16, 2004. The Bank commenced regular operations on May 26, 2004 and is supervised by the Bureau and the Federal Reserve Bank of Richmond. The Bank is a member of the Federal Reserve System and the Federal Deposit Insurance Corporation. The Bank places special emphasis on serving the needs of individuals, and small and medium-sized business and professional concerns in the Washington, D.C. metropolitan area. |
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”) as applicable to a smaller reporting company. |
Principles of Consolidation | Principles of Consolidation – The consolidated financial statements include accounts of the Company and its wholly-owned subsidiaries, the Bank and MainStreet Community Capital, LLC. All significant intercompany transactions and balances have been eliminated in consolidation. |
Cash and Cash Equivalents | Cash and cash equivalents – For the purpose of presentation in the Statements of Cash Flows, the Bank has defined cash and cash equivalents as those amounts included in the balance sheet captions “Cash and due from banks” and “Federal funds sold.” |
Investment Securities | Investment securities – The Bank’s investment debt securities are classified as either held to maturity, available for sale or trading. At December 31, 2021 and December 31, 2020, the Bank held approximately $20.3 million and $22.5 million, respectively, in securities classified as held to maturity. The Bank held no securities classified as trading. Debt securities which are not classified as held to maturity or trading are classified as securities available for sale. Debt securities available for sale are reported at fair value. Any unrealized gain or loss, net of applicable income taxes, is reported as a separate addition to or reduction from stockholders’ equity. Gains and losses arising from the sale of debt securities available for sale are recognized based on the specific identification method on a trade-date basis and included in results of operations. Debt securities held to maturity includes securities purchased with the ability and positive intent to hold to maturity. Debt securities are stated at historical cost adjusted for amortization of premiums and accretion of discount. Any investment security, for which there has been a value impairment deemed by management to be other than temporary, is written down to its estimated fair value with a charge to current operations. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Declines in the fair value of held to maturity and available for sale debt securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In determining whether other-than-temporary impairment exists, management considers many factors, including (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) whether the Bank intends to sell the security, whether it is more likely than not that the Bank will be required to sell the security before recovery of its amortized cost basis, and whether the Bank expects to recover the security’s entire amortized cost basis. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. Restricted equity securities consist of the Federal Reserve Bank and Federal Home Loan Bank of Atlanta (“FHLB”) stock in the amount of $4.1 million and $826,000 respectively, as of December 31, 2021, compared to $3.3 million and $1.1 million, respectively, as of December 31, 2020. Restricted equity securities also consisted of $126,800 in Community Bankers Bank stock at December 31, 2021 and December 31, 2020. This restricted stock is recorded at cost because its ownership is restricted and it lacks a market for resale. The Bank is required to maintain Federal Reserve Bank stock at a level of 6% of capital and surplus. The FHLB requires the Bank to maintain stock, at a minimum, in an amount equal to 4.5% of outstanding borrowings and 0.20% of total assets. When evaluating restricted stock for impairment, its value is based on ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Bank does not consider these investments to be impaired at December 31, 2021 or December 31, 2020 and no previous impairment has been recognized. Restricted equities include $4.9 million in Low-Income Housing Tax Credits (“LIHTC”) that are carried at amortized cost through the proportional amortization method. Restricted equities also include $5.7 million of nonmarketable securities as of December 31, 2021 that do not qualify for equity method accounting. These investments are recorded at cost because the ownership is restricted and lacks a market for resale. There were no nonmarketable equities as of December 31, 2020. |
Loans Held for Sale | Loans held for sale - Loans intended for sale are recorded at the lower aggregate cost or fair value as of the balance sheet date. Gains and losses on loan sales are determined by the specific-identification method. |
Loans | Loans - The Bank makes commercial and consumer loans to customers. Our recorded investment in loans that management has the intent and ability to hold for the foreseeable future, or until maturity or pay-off, generally are reported at their unpaid principal balances adjusted for charge-offs, unearned discounts, any deferred fees or costs on originated loans, and the allowance for loan losses. Interest on loans is credited to operations based on the principal amount outstanding. Loan fees and origination costs are deferred and the net amount is amortized as an adjustment of the related loan’s yield using the effective interest method. The Bank is amortizing these amounts over the contractual life of the related loans. A loan’s past due status is based on the contractual due date of the most delinquent payment due. All loans which are 30 or more days past due at the end of the month are reported to the Board of Directors. Commercial loans are generally placed on nonaccrual status when the collection of principal or interest is 90 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Consumer loans are generally placed on nonaccrual status when the collection of principal or interest is 120 days or more past due, or earlier, if collection is uncertain based on an evaluation of the net realizable value of the collateral and the financial strength of the borrower. Loans greater than 90 days past due may remain on accrual status if management determines it has adequate collateral to cover the principal and interest. For those loans that are carried on nonaccrual status, payments are first applied to principal outstanding. A loan may be returned to accrual status if the borrower has demonstrated a sustained period of repayment performance in accordance with the contractual terms of the loan and there is reasonable assurance the borrower will continue to make payments as agreed. It is Bank policy to charge-off loans whose collectability is sufficiently questionable and can no longer be justified as an asset on the balance sheet. To determine if a loan should be charged-off, all possible sources of repayment are analysed, including: (1) the potential for future cash flow, (2) the value of the Bank’s collateral, and (3) the strength of co-makers or guarantors. All principal and previously accrued interest is charged to the allowance for loan losses. All future payments received on the loan are credited to the allowance for loan losses as a recovery. These policies are applied consistently across our loan portfolio. |
Premises and Equipment | Premises and equipment – Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization computed principally on the straight-line basis over the estimated useful life of each asset, which ranges from 3 to 39 years. Leasehold improvements are amortized over the shorter of the related lease term or the estimated useful lives of the improvements. Construction in progress includes assets which will be reclassified and depreciated once placed into service. |
Computer Software Development | Computer software - The Company capitalizes new product development costs incurred for software to be sold from the point at which technological feasibility has been established through the point at which the product is ready for general availability. Software development costs that are capitalized are evaluated annually for impairment and are assigned an estimated economic life based on the type of product, market characteristics, and maturity of the market for that particular product. These costs are amortized on a straight-line basis. All of this amortization expense is included within components of operating income. |
Income Taxes | Income taxes – The Bank uses an asset and liability approach in financial accounting and reporting for income taxes. Deferred income tax assets and liabilities are computed for differences between the financial statement and tax bases of assets and liabilities that will result in taxable or deductible amounts in the future. The principal items relate primarily to differences between the allowance for loan losses, deferred loan fees, and accumulated depreciation and amortization. Valuation allowances are established when necessary to reduce deferred tax assets to the amount expected to be realized. Income tax expense (benefit) is the tax payable or refundable for the period plus or minus the change during the period in deferred tax assets and liabilities. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50% likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. As of December 31, 2021, and December 31, 2020, there were no such liabilities recorded. Interest and penalties associated with unrecognized tax benefits, if any, would be classified as additional income taxes in the statement of income. |
Comprehensive Income | Comprehensive income – Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income. Although, certain changes in assets and liabilities, such as unrealized gains and losses on available for sale securities, are reported as a separate component of the equity section of the balance sheet, such items, along with net income, are components of comprehensive income. |
Stock Compensation Plans | Stock compensation plans – Stock compensation accounting guidance (FASB ASC 718, “Compensation – Stock Compensation”) requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Sholes model is used to estimate the fair value of stock options, while the market price of the Bank’s common stock at the date of grant is used for restricted stock awards. No stock options were granted during 2021 and 2020. |
Earnings Per Common Share | Earnings per common share – Net income per common share has been determined under the provisions of FASB ASC 260, “Earnings Per Share” and has been computed based on the weighted average common shares outstanding during the year ended December 31, (7,559,310 for 2021 and 8,131,334 for 2020). Diluted earnings per share reflect additional potential common shares that The only potential dilutive stock of the Bank as defined in FASB ASC 260 would be stock options granted to various directors, officers, and employees of the Bank. There were no such options outstanding at December 31, 2021 or December 31, 2020. Restricted stock is included in the computation of basic earnings per share as the holder is entitled to full benefits of a stockholder during the vesting period. |
Off-balance Sheet Instruments | Off-balance sheet instruments – In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded in the financial statements when they are funded, or related fees are incurred or received. |
Advertising and Marketing Expense | Advertising and marketing expense – Advertising and marketing costs are expensed as incurred. |
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, (2) fair value of financial instruments, (3) derivative financial instruments, and (4) income taxes. These critical accounting policies require the use of estimates, assumptions and judgments which are based on information available as of the date of the financial statements. Accordingly, as this information changes, future financial statements could reflect the use of different estimates, assumptions and judgments. Certain determinations inherently have a greater reliance on the use of estimates, assumptions and judgments and, as such, have a greater possibility of producing results that could be materially different than originally reported. In connection with the determination of the allowances for losses on loans, management obtains independent appraisals for significant properties. |
Fair Value of Financial Instruments | Fair value of financial instruments – Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 20. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
Derivative Financial Instruments | Derivative Financial Instruments – The Bank recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheet. The Bank’s derivative financial instruments include interest rate swaps with certain qualifying commercial loan customers and dealer counterparties. Because the interest rate swaps with loan customers and dealer counterparties are not designated as hedging instruments, adjustments to reflect unrealized gains and losses resulting from changes in fair value of these instruments are reported as noninterest income or noninterest expense, as applicable. The Bank’s interest rate swaps with loan customers and dealer counterparties are described more fully in Note 19. |
Transfers of Financial Assets | Transfers of financial assets – Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Bank – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Bank does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Risks and Uncertainties | Risks and uncertainties - The outbreak of COVID- 19 has adversely impacted a broad range of industries in which the Company’s customers operate and could impair their ability to fulfil their financial obligations to the Company. The World Health Organization has declared COVID- 19 to be a global pandemic indicating that almost all public commerce and related business activities must be, to varying degrees, curtailed with the goal of decreasing the rate of new infections. The spread of the outbreak has caused disruptions in the U.S. economy and has disrupted banking and other financial activity in the areas in which the Company operates. While there has been no material impact to the Company’s employees to date, COVID- 19 could also potentially create widespread business continuity issues for the Company. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. If the global response to contain COVID- 19 escalates further or is unsuccessful, the Company could experience a material adverse effect on its business, financial condition, results of operations and cash flows. While it is not possible to know the full universe or extent that the impact of COVID- 19, and resulting measures to curtail its spread, will have on the Company’s operations, the Company is disclosing potentially material items of which it is aware. |
Revenue Recognition | Revenue Recognition Most revenue associated with the Company’s financial instruments, including interest income and gains/losses on investment securities, derivatives and sales of financial instruments are outside the scope of ASC Topic 606. The Company’s services that fall within the scope of ASC Topic 606 are presented within noninterest income and are recognized as revenue. A description of the primary revenue streams accounted for under ASC Topic 606 follows: Service Charges on Deposit Accounts. The Company earns fees from its deposit customers for overdraft and account maintenance services. Overdraft fees are recognized when the overdraft occurs. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the company satisfies the performance obligation. Other Service Charges and Fees. The Company earns fees from its customers for transaction-based services. Such services include safe deposit box, ATM, stop payment, wire transfer, mortgage origination and interest rate swap fees. In each case, these service charges and fees are recognized in income at the time or within the same period that the Company’s performance obligation is satisfied. Interchange Income. The Company earns interchange fees from debit and credit cardholder transactions conducted through various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services. |
Impact of Recently Issued and Adopted Accounting Pronouncements | 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 U.S. Securities and Exchange Commission (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 running parallel calculations simultaneously and preliminary analysis indicates there will not be a significant adjustment upon implementation. 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 Financial Accounting Standards Board (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 has inventoried its exposure to instruments that include a reference to LIBOR and have included amendments to transition to an appropriate comparable rate. The Company has also discontinued using LIBOR as a primary rate reference. 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 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 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 . There was no material impact on the Company’s consolidated financial statements. 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) | 12 Months Ended |
Dec. 31, 2021 | |
Available For Sale Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale | Investment securities available-for-sale was comprised of the following: December 31, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value U.S. Treasury Securities $ 20,000 $ — $ — $ 20,000 Collateralized Mortgage Backed 31,521 151 (790 ) 30,882 Subordinated Debt 8,720 31 (47 ) 8,704 Municipal Securities Taxable 10,704 13 (160 ) 10,557 Tax-exempt 22,978 1,182 (17 ) 24,143 U.S. Governmental Agencies 5,725 — (98 ) 5,627 Total $ 99,648 $ 1,377 $ (1,112 ) $ 99,913 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 Taxable 6,220 51 — 6,271 Tax-exempt 15,128 1,206 — 16,334 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: December 31, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Municipal Securities Tax-exempt $ 17,849 $ 795 $ — $ 18,644 Subordinated Debt 2,500 — — 2,500 Total $ 20,349 $ 795 $ — $ 21,144 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 Tax-exempt $ 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 December 31, 2021 were as follows: December 31, 2021 Available-for-Sale Held-to-Maturity (Dollars in thousands) Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 20,002 $ 20,002 $ — $ — Due from one to five years 1,002 1,006 1,329 1,372 Due from after five to ten years 10,927 10,957 10,773 11,174 Due after ten years 67,717 67,948 8,247 8,598 Total $ 99,648 $ 99,913 $ 20,349 $ 21,144 |
Schedule of Fair Value and Unrealized Losses Aggregated by Investment Category And Length of Time | The following tables summarize the fair value and unrealized losses at December 31, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous loss position: December 31, 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 $ 11,922 $ (215 ) $ 12,043 $ (575 ) $ 23,965 $ (790 ) Subordinated Debt 4,673 (47 ) — — 4,673 (47 ) Municipal Securities Taxable 5,484 (63 ) 3,482 (97 ) 8,966 (160 ) Tax-exempt 2,594 (17 ) — — 2,594 (17 ) U.S Governmental Agencies — — 5,445 (98 ) 5,445 (98 ) Total $ 24,673 $ (342 ) $ 20,970 $ (770 ) $ 45,643 $ (1,112 ) 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) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
Schedule of Loan Receivable | Loans receivable were comprised of the following: (Dollars in thousands) December 31, 2021 December 31, 2020 Residential Real Estate: Single family $ 161,362 $ 139,338 Multifamily 137,705 43,332 Farmland 1,323 861 Commercial Real Estate: Owner-occupied 173,086 141,813 Non-owner occupied 361,101 325,085 Construction and Land Development 337,173 324,906 Commercial – Non Real-Estate: Commercial & industrial 164,014 230,027 Consumer – Non Real Estate: Unsecured 185 241 Secured 22,986 43,832 Total Gross Loans 1,358,935 1,249,435 Less: unearned fees (5,478 ) (6,178 ) Less: unamortized discount on consumer secured loans — (1 ) Less: allowance for loan losses (11,697 ) (12,877 ) Net Loans $ 1,341,760 $ 1,230,379 |
Schedule of Nonaccrual Loans by Classes of the Loan Portfolio | The following table presents nonaccrual loans by classes of the loan portfolio as of December 31, 2021 and December 31, 2020: (Dollars in thousands) December 31, 2021 December 31, 2020 Residential Real Estate: Single Family $ — $ 149 Total $ — $ 149 |
Schedule of Aging of Past Due | The following tables present the segments of the loan portfolio summarized by aging categories as of December 31, 2021 and December 31, 2020: December 31, 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 $ — $ — $ — $ — $ 161,362 $ 161,362 $ — Multifamily — — — — 137,705 137,705 — Farmland — — — — 1,323 1,323 — Commercial Real Estate: Owner occupied — — — — 173,086 173,086 — Non-owner occupied — — — — 361,101 361,101 — Construction & Land Development — — — — 337,173 337,173 — Commercial – Non Real Estate: Commercial & industrial — — — — 164,014 164,014 — Consumer – Non Real Estate: Unsecured — — — — 185 185 — Secured 46 25 — 71 22,915 22,986 — Total $ 46 $ 25 $ — $ 71 $ 1,358,864 $ 1,358,935 $ — 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 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Receivables [Abstract] | |
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 twelve months ended December 31, 2021 and 2020: Allowance for Credit Losses By Portfolio Segment For the twelve months ended December 31, 2021 Real Estate Residential Commercial Construction Consumer Commercial Total Beginning Balance $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 Charge-offs — — — (32 ) — (32 ) Recoveries — — — 16 11 27 Provision 449 (863 ) (629 ) (256 ) 124 (1,175 ) Ending Balance $ 1,672 $ 5,689 $ 2,697 $ 99 $ 1,540 $ 11,697 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,672 $ 5,689 $ 2,697 $ 99 $ 1,540 $ 11,697 Allowance for Credit Losses By Portfolio Segment For the twelve months ended December 31, 2020 Real Estate Residential Commercial Construction Consumer Commercial Total Beginning Balance $ 1,030 $ 4,254 $ 2,180 $ 568 $ 1,552 $ 9,584 Charge-offs — (1 ) — (60 ) (1,792 ) (1,853 ) Recoveries 2 — — 8 $ 1,526 1,536 Provision 191 2,299 1,146 (145 ) 119 3,610 Ending Balance $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 Ending Balance: Individually evaluated for Impairment $ — $ — $ — $ — $ — $ — Collectively evaluated for Impairment $ 1,223 $ 6,552 $ 3,326 $ 371 $ 1,405 $ 12,877 |
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 December 31, 2021 and December 31, 2020: December 31, 2021 Loans Receivable (Dollars in thousands) Ending Balance Ending Balance: Individually Evaluated for Impairment Ending Balance: Collectively Evaluated for Impairment Residential Real Estate $ 300,390 $ 147 $ 300,243 Commercial Real Estate 534,187 1,076 533,111 Construction and Land Development 337,173 — 337,173 Commercial & Industrial ( 1) 164,014 8 164,006 Consumer 23,171 — 23,171 Total $ 1,358,935 $ 1,231 $ 1,357,704 (1) No allowance assigned 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 ( 1) 230,027 58 229,969 Consumer 44,073 — 44,073 Total $ 1,249,435 $ 1,447 $ 1,247,988 (1) No allowance assigned to the $135.2 in PPP loans due to SBA guarantee |
Schedule of Impaired Loan | The following table summarizes information in regard to impaired loans by loan portfolio class as of December 31, 2021 and December 31, 2020: December 31, 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 $ 147 $ 147 $ — $ 301 $ 301 $ — Commercial Real Estate: Non-owner occupied 1,076 1,076 — 1,088 1,088 — Commercial & Industrial 8 8 — 58 58 — Total $ 1,231 $ 1,231 $ — $ 1,447 $ 1,447 $ — The following table presents additional information regarding the impaired loans for the years ended December 31, 2021 and 2020. Years Ended December 31, 2021 December 31, 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 $ 209 $ 9 $ 304 $ 16 Commercial Real Estate: Non-owner occupied 1,080 65 1,097 97 Commercial & Industrial 32 2 64 10 Total $ 1,321 $ 76 $ 1,465 $ 123 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables summarize the aggregate Pass and criticized categories of Watch, Special Mention, Substandard and Doubtful within the Company’s internal risk rating system as of December 31, 2021 and December 31, 2020: December 31, 2021 (Dollars in thousands) Pass Watch Special Mention Substandard Doubtful Total Residential Real Estate: Single Family $ 160,234 $ — $ 734 $ 394 $ — $ 161,362 Multifamily 137,705 — — — — 137,705 Farmland 1,323 — — — — 1,323 Commercial Real Estate: Owner occupied 168,352 4,734 — — — 173,086 Non-owner occupied 297,873 46,379 15,275 1,574 — 361,101 Construction & Land Development 317,846 19,327 — — — 337,173 Commercial – Non Real Estate: Commercial & industrial 159,634 145 857 3,378 — 164,014 Consumer – Non Real Estate: Unsecured 185 — — — — 185 Secured 22,986 — — — — 22,986 Total $ 1,266,138 $ 70,585 $ 16,866 $ 5,346 $ — $ 1,358,935 December 31, 2020 (Dollars in thousands) Pass Watch Special Mention Substandard Doubtful 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 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Property Plant And Equipment [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment are summarized as follows at December 31: (Dollars in thousands) 2021 2020 Cost Building $ 12,765 $ 12,765 Land 2,856 2,856 Leasehold improvements 1,083 996 Furniture, fixtures and equipment 3,680 2,741 Computer software and equipment 1,458 1,165 21,842 20,523 Less accumulated depreciation (7,121 ) (6,261 ) Construction in progress 142 27 Premises and equipment, net $ 14,863 $ 14,289 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 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 twelve months ended December 31, 2021 Years Ended December 31, 2021 December 31, 2020 (Dollars in thousands) Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortizable intangible assets: Computer software $ 2,493 $ — $ — $ — Total $ 2,493 $ — $ — $ — |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Schedule of Maturities of Time Deposits | At December 31, 2021, maturities of time deposits are as follows: (Dollars in thousands) Year ended December 31, 2022 $ 207,264 2023 175,928 2024 54,539 2025 20,440 Thereafter 977 Total $ 459,148 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Provision for Income Taxes | The provision for income taxes consists of the following components: (Dollars in thousands) 2021 2020 Current expense $ 5,449 $ 5,595 Deferred expense (benefit) 336 (1,752 ) Total $ 5,785 $ 3,843 |
Schedule of Income Tax Expense Differed From Federal Statutory Rate Income Before Income Taxes | Income tax expense for the years ended December 31, 2021 and 2020 differed from the federal statutory rate applied to income before income taxes for the following reasons: Year ended December 31, (Dollars in thousands) 2021 2020 Computed “expected” income tax expense $ 5,871 $ 4,108 Increase (decrease)in income taxes resulting from: Non-deductible expense 15 25 Tax exempt Interest (230 ) (259 ) BOLI Income (189 ) (164 ) Low Income Housing Investment 49 — State Income Taxes 326 165 Restricted Stock Adjustment 4 (95 ) Federal tax credits (64 ) — Other Adjustments 3 63 Total $ 5,785 $ 3,843 |
Schedule of Tax Effects of Temporary Differences Result in Deferred Tax Assets and Liabilities | The tax effects of temporary differences result in deferred tax assets and liabilities as presented below: December 31, (Dollars in thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,591 $ 2,851 Restricted stock 373 313 OREO adjustment 96 95 Net loan fees 1,214 1,368 Organizational costs 5 6 Right-of-use liability 1,718 1,463 Accrued compensation 116 — Unrealized losses on securities transferred to held to maturity — 12 Gross deferred tax assets 6,113 6,108 Deferred tax liabilities: Depreciation 393 267 Unrealized gain on securities available for sale 56 285 Prepaid expense 22 20 Right-of-use asset 1,585 1,371 Other 11 — Gross deferred tax liabilities 2,067 1,943 Net deferred tax asset $ 4,046 $ 4,165 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Common Share Basic and Diluted | For the Year Ended December 31, (Dollars in thousands) 2021 2020 Net income $ 22,171 $ 15,717 Preferred stock dividends (2,156 ) (635 ) Net income available to common shareholders $ 20,015 $ 15,082 Weighted average number of shares issued, basic and diluted 7,559,310 8,131,334 Net income per common share: Basic and diluted income available to common shareholders $ 2.65 $ 1.85 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Amounts of Loan Commitments and Standby Letters of Credit | The amounts of loan commitments and standby letters of credit are set forth in the following table as of December 31, 2021 and 2020: December 31, (Dollars in thousands) 2021 2020 Loan commitments $ 304,335 $ 219,414 Standby letters of credit $ 230 $ 1,062 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Schedule of Leases Cost | As of December 31, (Dollars in thousands) 2021 2020 Lease liabilities $ 7,753 $ 6,607 Right-of-use assets $ 7,154 $ 6,195 Weighted-average remaining lease term – operating leases (in months). 173.2 187.5 Weighted-average discount rate – operating leases 2.81 % 3.12 % For the year ended December 31, (Dollars in thousands) 2021 2020 Lease Cost Operating lease cost $ 693 $ 590 Total lease costs $ 693 $ 590 Cash paid for amounts included in measurement of lease liabilities $ 590 $ 399 |
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 December 31, 2021 is as follows: (Dollars in thousands) 2022 $ 607 2023 638 2024 654 2025 671 2026 689 Thereafter 6,268 Total undiscounted cash flows 9,527 Discount (1,774 ) Lease liabilities $ 7,753 |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters [Abstract] | |
Schedule of Bank's Actual Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios are presented in the table (dollars in thousands): Actual Capital Adequacy Purposes To Be Well Capitalized Under the Prompt Corrective Action Provision (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2021 Total capital (to risk-weighted assets) $ 227,359 16.06 % $ 113,249 ≥ 8.0% $ 141,562 ≥ 10.0% Common equity tier 1 capital (to risk-weighted assets) $ 215,662 15.23 % $ 63,703 ≥ 4.5% $ 113,249 ≥ 8.0% Tier 1 capital (to risk-weighted assets) $ 215,662 15.23 % $ 84,937 ≥ 6.0% $ 113,249 ≥ 8.0% Tier 1 capital (to average assets) $ 215,662 12.90 % $ 66,898 ≥ 4.0% $ 83,622 ≥ 5.0% As of December 31, 2020 Total capital (to risk-weighted assets) $ 189,534 14.60 % $ 103,872 ≥ 8.0% $ 129,840 ≥ 10.0% Common equity tier 1 capital (to risk-weighted assets) $ 176,657 13.61 % $ 58,428 ≥ 4.5% $ 103,872 ≥ 8.0% Tier 1 capital (to risk-weighted assets) $ 176,657 13.61 % $ 77,904 ≥ 6.0% $ 103,872 ≥ 8.0% Tier 1 capital (to average assets) $ 176,657 10.78 % $ 65,557 ≥ 4.0% $ 81,946 ≥ 5.0% |
Stock Based Compensation Plan (
Stock Based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Summary of Nonvested Restricted Stock Activity | A summary of the status of the Bank’s nonvested restricted stock shares as of December 31, 2021 and changes during the year ended December 31, 2021 is presented below: Nonvested Restricted Stock Shares Shares Weighted Average Grant Date Fair Value Nonvested at January 1, 2021 161,435 $ 18.36 Granted 153,636 19.38 Vested (84,117 ) 17.53 Forfeited (1,697 ) 20.04 Nonvested at December 31, 2021 229,257 $ 19.33 |
Derivatives and Risk Manageme_2
Derivatives and Risk Management Activities (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | The following tables summarize key elements of the Banks’s derivative instruments as of December 31, 2021 and December 31, 2020. December 31, 2021 Customer-related interest rate contracts (Dollars in thousands) Notional Amount Positions Assets Liabilities Collateral Pledges Matched interest rate swap with borrower $ 210,793 40 $ 2,097 — $ 15,120 Matched interest rate swap with counterparty $ 210,793 40 — $ 2,097 $ 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) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and December 31, 2020: December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Investment securities available-for-sale: U.S. Treasury Securities $ — $ 20,000 $ — $ 20,000 Collateralized Mortgage Backed — 30,882 — 30,882 Subordinated Debt — 8,704 — 8,704 Municipal Securities Taxable — 10,557 — 10,557 Tax-exempt — 24,143 — 24,143 U.S. Government Agencies — 5,627 — 5,627 Derivative asset – interest rate swap on loans — 2,097 — 2,097 Total $ — $ 102,010 $ — $ 102,010 Liabilities: Derivative liability – interest rate swap on loans — 2,097 — 2,097 Total $ — $ 2,097 $ — $ 2,097 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 Taxable — 6,271 — 6,271 Tax-exempt — 16,334 — 16,334 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 December 31, 2021 and December 31, 2020 that were measured at fair value on a nonrecurring basis during the period: December 31, 2021 (Dollars in thousands) Level 1 Level 2 Level 3 Total Assets: Other Real Estate Owned $ — $ — $ 775 $ 775 Total $ — $ — $ 775 $ 775 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 presents quantitative information about Level 3 fair value measurements for financial assets measured at fair value on a nonreoccuring basis as of December 31, 2021 Fair Value Measurements at December 31, 2021 (Dollars in thousands) Fair Value Valuation Technique(s) Unobservable Inputs Range of Inputs Other Real Estate Owned, net $ 775 Appraisals Discount to reflect current market conditions and estimated selling costs 6% - 10% Total $ 775 |
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. December 31, 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 $ 93,199 $ 93,199 $ 93,199 $ — $ — Restricted equity securities 15,609 15,609 — 15,609 — Securities: Available for sale 99,913 99,913 — 99,913 — Held to maturity 20,349 21,144 — 21,144 — Loans, net 1,341,760 1,346,048 — — 1,346,048 Derivative asset – interest rate swap on loans 2,097 2,097 — 2,097 — Bank owned life insurance 36,241 36,241 — 36,241 — Accrued interest receivable 6,735 6,735 — 6,735 — Liabilities: Deposits $ 1,411,963 $ 1,415,551 $ — $ 952,815 $ 462,736 Subordinated debt, net 29,294 29,570 — 29,570 — Derivative liability – interest rate swaps on loans 2,097 2,097 — 2,097 — Accrued interest payable 462 462 — 462 — 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 Subordinated debt, net 14,834 14,834 — 14,834 — Derivative liability – interest rate swaps on loans 12,152 12,152 — 12,152 — Accrued interest payable 490 490 — 490 — |
Other Real Estate Owned (Tables
Other Real Estate Owned (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate [Abstract] | |
Changes in Balance for OREO | Changes in the balance for OREO are as follows: (Dollars in thousands) 2021 2020 Balance, beginning of year $ 1,180 $ 1,207 Loss on valuation, net (22 ) (432 ) Sale of other real estate owned (383 ) — Transfers between loans and other real estate owned — 362 Gain on transfer of real estate — 43 Balance, end of year $ 775 $ 1,180 |
Expenses Applicable to Other Real Estate Owned | Expenses applicable to other real estate owned include the following: (Dollars in thousands) 2021 2020 Net loss (gain) on transfer or sale of real estate $ 40 $ (43 ) Loss on valuation, net 22 432 Operating expenses, net of rental income 22 27 Balance, end of year $ 84 $ 459 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 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 December 31, 2021 and December 31, 2020: (Dollars in thousands) 2021 2020 Unrealized gain on securities $ 265 $ 1,287 Unrealized loss on securities transferred to HTM (29 ) (55 ) Securities gains included in net income — — Tax effect (39 ) (255 ) Total accumulated other comprehensive income $ 197 $ 977 |
Condensed Parent Company Fina_2
Condensed Parent Company Financial Statements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheet | Condensed Parent Company Only Condensed Balance Sheet (Dollars in thousands) December 31, 2021 2020 ASSETS Cash on deposit with subsidiary $ 376 $ 3,754 Investment in subsidiary 215,858 177,634 Other assets 2,138 1,560 Total Assets $ 218,372 $ 182,948 Liabilities: Other liabilities $ 290 $ 449 Subordinated debt, net of debt issuance costs 29,294 14,834 Stockholders’ equity 188,788 167,665 Total Liabilities and Stockholders’ Equity $ 218,372 $ 182,948 |
Condensed Statement of Income | Condensed Statement of Income (Dollars in thousands) For the Year Ended December 31, 2021 2020 Income Dividends from subsidiary $ 2,156 $ 635 Expenses Subordinated debt interest expense 1,884 966 Non-interest expense — 4 Total expenses 1,884 970 Undistributed earnings of subsidiary 21,504 15,848 Net income before income taxes 21,776 15,513 Income tax benefit (395 ) (204 ) Net income $ 22,171 $ 15,717 Less: preferred stock dividends (2,156 ) (635 ) Net income available to common shareholders $ 20,015 $ 15,082 |
Condensed Statement of Cash Flows | Condensed Statement of Cash Flows (Dollars in thousands) Year Ended December 31, 2021 2020 CASH FLOWS FROM OPERATING ACTIVITIES: Net income $ 22,171 $ 15,717 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (21,504 ) (15,848 ) Stock based compensation 1,888 1,529 Subordinated debt amortization expense 223 29 Decrease (increase) in other assets (578 ) 212 Increase (decrease) in other liabilities (159 ) 449 Net cash provided by operating activities 2,041 2,088 CASH FLOWS FROM INVESTING ACTIVITIES: Investment in bank subsidiary (17,500 ) (12,500 ) Net cash used in investing activities (17,500 ) (12,500 ) CASH FLOWS FROM FINANCING ACTIVITIES: Repurchase of common stock — (13,797 ) Issuance of preferred stock, net — 27,263 Cash dividends paid on preferred stock (2,156 ) (635 ) Net increase in subordinated debt 14,237 — Net cash provided by financing activities 12,081 12,831 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (3,378 ) 2,419 CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR 3,754 1,335 CASH AND CASH EQUIVALENTS, END OF YEAR $ 376 $ 3,754 |
Organization, Basis of Presen_3
Organization, Basis of Presentation and Recent Accounting Pronouncements - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | Sep. 15, 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 | $ 1 |
Preferred stock, shares outstanding | 28,750 | 28,750 | |
Investment securities held-to-maturity, at amortized cost | $ 20,349,000 | $ 22,520,000 | |
Federal reserve bank stock percentage | 6.00% | ||
Minimum required percentage of Federal Reserve Bank stock to be maintained of outstanding borrowings | 4.50% | ||
Minimum required percentage of Federal Reserve Bank stock to be maintained of total assets | 0.20% | ||
Impairment of investments | $ 0 | 0 | |
Nonmarketable securities | 5,700,000 | 0 | |
Troubled debt restructuring, impaired loans | $ 0 | 0 | |
Tax benefit realization threshold | 50.00% | ||
Unrecognized tax benefits, Income tax penalties and interest accrued | $ 0 | $ 0 | |
Number of shares of stock options granted | 0 | 0 | |
Weighted average number of shares outstanding | 7,559,310 | 8,131,334 | |
Options outstanding | 0 | 0 | |
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 | ||
Minimum [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Property, plant and equipment, useful life | 3 years | ||
Maximum [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Property, plant and equipment, useful life | 39 years | ||
Federal Reserve Bank [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Restricted equity securities | $ 4,100,000 | $ 3,300,000 | |
Federal Home Loan Bank of Atlanta [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Restricted equity securities | 826,000 | 1,100,000 | |
Community Bankers Bank Stock [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Restricted equity securities | 126,800 | $ 126,800 | |
Low-Income Housing Tax Credits [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Restricted equity securities | $ 4,900,000 | ||
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% |
Restrictions on Cash - Addition
Restrictions on Cash - Additional Information (Detail) - USD ($) | Mar. 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 |
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Average cash reserve balances | $ 0 | $ 0 | |
Federal reserve reserve requirement ratios | 0.00% | ||
Minimum [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Low reserve tranche, reserve requirement ratio | 3.00% | ||
Maximum [Member] | |||
Restricted Cash And Cash Equivalents Items [Line Items] | |||
Low reserve tranche, reserve requirement ratio | 10.00% |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Available-for-Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 99,648 | $ 146,126 |
Gross Unrealized Gains | 1,377 | 1,568 |
Gross Unrealized Losses | (1,112) | (280) |
Fair Value | 99,913 | 147,414 |
U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20,000 | 90,000 |
Fair Value | 20,000 | 90,000 |
Collateralized Mortgage Backed [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 31,521 | 24,743 |
Gross Unrealized Gains | 151 | 282 |
Gross Unrealized Losses | (790) | (129) |
Fair Value | 30,882 | 24,896 |
Subordinated Debt [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 8,720 | 3,250 |
Gross Unrealized Gains | 31 | 29 |
Gross Unrealized Losses | (47) | (1) |
Fair Value | 8,704 | 3,278 |
Taxable Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 10,704 | 6,220 |
Gross Unrealized Gains | 13 | 51 |
Gross Unrealized Losses | (160) | |
Fair Value | 10,557 | 6,271 |
U.S Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 5,725 | 6,785 |
Gross Unrealized Losses | (98) | (150) |
Fair Value | 5,627 | 6,635 |
Tax-Exempt Municipal Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 22,978 | 15,128 |
Gross Unrealized Gains | 1,182 | 1,206 |
Gross Unrealized Losses | (17) | |
Fair Value | $ 24,143 | $ 16,334 |
Investment Securities - Sched_2
Investment Securities - Schedule of Investment Securities Held-to-Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 20,349 | $ 22,520 |
Gross Unrealized Gains | 795 | 1,058 |
Fair Value | 21,144 | 23,578 |
Tax-Exempt Municipal Securities [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 17,849 | 20,015 |
Gross Unrealized Gains | 795 | 1,058 |
Fair Value | 18,644 | 21,073 |
Subordinated Debt [Member] | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,500 | 2,505 |
Fair Value | $ 2,500 | $ 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Available-for-Sale, Amortized Cost | ||
Due in one year or less | $ 20,002 | |
Due from one to five years | 1,002 | |
Due from after five to ten years | 10,927 | |
Due after ten years | 67,717 | |
Amortized Cost | 99,648 | $ 146,126 |
Available-for-Sale, Fair Value | ||
Due in one year or less | 20,002 | |
Due from one to five years | 1,006 | |
Due from after five to ten years | 10,957 | |
Due after ten years | 67,948 | |
Total | 99,913 | 147,414 |
Held-to-Maturity, Amortized Cost | ||
Due from one to five years | 1,329 | |
Due from after five to ten years | 10,773 | |
Due after ten years | 8,247 | |
Amortized Cost | 20,349 | 22,520 |
Held-to-Maturity, Fair Value | ||
Due from one to five years | 1,372 | |
Due from after five to ten years | 11,174 | |
Due after ten years | 8,598 | |
Total | $ 21,144 | $ 23,578 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($)Security | |
Net Investment Income [Line Items] | ||
Securities pledged as collateral | $ 410,492 | $ 269,075 |
Number of securities sold | Security | 0 | 0 |
Unamortized unrealized loss | $ (29,016) | $ (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 | $ 11,900,000 | |
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 | $ 12,000,000 | |
Municipal Securities [Member] | ||
Net Investment Income [Line Items] | ||
Number of securities temporarily impaired and unrealized loss position of less than 12 months | 10 | |
Available for sale securities, temporarily impaired and unrealized loss position of less than 12 months, fair value | $ 8,100,000 | |
Number of securities temporarily impaired and unrealized loss position of more than 12 months | 2 | |
Available for sale securities, temporarily impaired and unrealized loss position of more than 12 months, fair value | $ 3,500,000 | |
Subordinated Debt [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 | $ 4,700,000 | |
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 | $ 5,400,000 |
Investment Securities - Sched_4
Investment Securities - Schedule of Fair Value and Unrealized Losses Aggregated by Investment Category And Length of Time (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | $ 24,673 | $ 15,720 |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (342) | (130) |
Available-for-sale securities, 12 Months or Longer, Fair Value | 20,970 | 6,785 |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (770) | (150) |
Available-for-sale securities, Fair Value | 45,643 | 22,505 |
Available-for-sale securities, Unrealized Loss | (1,112) | (280) |
Collateralized Mortgage Backed [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 11,922 | 14,971 |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (215) | (129) |
Available-for-sale securities, 12 Months or Longer, Fair Value | 12,043 | |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (575) | |
Available-for-sale securities, Fair Value | 23,965 | 14,971 |
Available-for-sale securities, Unrealized Loss | (790) | (129) |
Subordinated Debt [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 4,673 | 749 |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (47) | (1) |
Available-for-sale securities, Fair Value | 4,673 | 749 |
Available-for-sale securities, Unrealized Loss | (47) | (1) |
Taxable Municipal Securities [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 5,484 | |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (63) | |
Available-for-sale securities, 12 Months or Longer, Fair Value | 3,482 | |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (97) | |
Available-for-sale securities, Fair Value | 8,966 | |
Available-for-sale securities, Unrealized Loss | (160) | |
U.S Government Agencies [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, 12 Months or Longer, Fair Value | 5,445 | 6,785 |
Available-for-sale securities, 12 Months or Longer, Unrealized Loss | (98) | (150) |
Available-for-sale securities, Fair Value | 5,445 | 6,785 |
Available-for-sale securities, Unrealized Loss | (98) | $ (150) |
Tax-Exempt Municipal Securities [Member] | ||
Investment Securities [Line Items] | ||
Available-for-sale securities, Less than 12 Months, Fair Value | 2,594 | |
Available-for-sale securities, Less than 12 Months, Unrealized Loss | (17) | |
Available-for-sale securities, Fair Value | 2,594 | |
Available-for-sale securities, Unrealized Loss | $ (17) |
Loans Receivable - Schedule of
Loans Receivable - Schedule of Loan Receivable (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | $ 1,358,935 | $ 1,249,435 |
Less: unearned fees | (5,478) | (6,178) |
Less: unamortized discount on consumer secured loans | (1) | |
Less: allowance for loan losses | (11,697) | (12,877) |
Net Loans | 1,341,760 | 1,230,379 |
Single Family [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 161,362 | 139,338 |
Residential Real Estate Multi Family [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 137,705 | 43,332 |
Residential Real Estate Farm Land [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 1,323 | 861 |
Owner Occupied [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 173,086 | 141,813 |
Non Owner Occupied [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 361,101 | 325,085 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 337,173 | 324,906 |
Commercial & Industrial [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 164,014 | 230,027 |
Unsecured [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | 185 | 241 |
Secured [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Total Gross Loans | $ 22,986 | $ 43,832 |
Loans Receivable - Additional I
Loans Receivable - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2021USD ($)SecurityLoan | Dec. 31, 2020USD ($)SecurityLoan | |
Loans and Leases Receivable Disclosure [Line Items] | ||
Unsecured consumer loan include overdrafts reclassified as loans | $ 185,135 | $ 241,064 |
Bank held loans for sale | $ 0 | |
Modifications to loans classified as TDRs subsequently defaulted | SecurityLoan | 0 | 0 |
TDR [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Modifications to loans classified as TDRs | SecurityLoan | 0 | 0 |
Commercial Real Estate Loans [Member] | ||
Loans and Leases Receivable Disclosure [Line Items] | ||
Balance of bank held loans for sale | $ 57,000,000 |
Loans Receivable - Schedule o_2
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_3
Loans Receivable - Schedule of Aging of Past Due (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | $ 1,358,935 | $ 1,249,435 |
Nonaccrual | 149 | |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 46 | 68 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 25 | |
Finance Receivables, Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 71 | 68 |
Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 1,358,864 | 1,249,218 |
Single Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 161,362 | 139,338 |
Nonaccrual | 149 | |
Single Family [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 161,362 | 139,189 |
Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 137,705 | 42,300 |
Residential Real Estate Multi Family [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 137,705 | 42,300 |
Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 1,323 | 861 |
Residential Real Estate Farm Land [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 1,323 | 861 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 173,086 | 141,813 |
Owner Occupied [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 173,086 | 141,813 |
Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 361,101 | 326,117 |
Non Owner Occupied [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 361,101 | 326,117 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 337,173 | 324,906 |
Commercial Real Estate Construction Land Development Loan [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 337,173 | 324,906 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 164,014 | 230,027 |
Commercial & Industrial [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 164,014 | 230,027 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 185 | 241 |
Unsecured [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 185 | 241 |
Secured [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Loans receivable | 22,986 | 43,832 |
Secured [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 46 | 68 |
Secured [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 25 | |
Secured [Member] | Finance Receivables, Total Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | 71 | 68 |
Secured [Member] | Finance Receivables, Current [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Loans Receivable | $ 22,915 | $ 43,764 |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of Allowance for Credit losses by Portfolio Segment (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | $ 12,877 | $ 9,584 |
Charge-offs | (32) | (1,853) |
Recoveries | 27 | 1,536 |
Provision | (1,175) | 3,610 |
Ending Balance | 11,697 | 12,877 |
Collectively evaluated for Impairment | 11,697 | 12,877 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,223 | 1,030 |
Recoveries | 2 | |
Provision | 449 | 191 |
Ending Balance | 1,672 | 1,223 |
Collectively evaluated for Impairment | 1,672 | 1,223 |
Commercial Real Estate Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 6,552 | 4,254 |
Charge-offs | (1) | |
Provision | (863) | 2,299 |
Ending Balance | 5,689 | 6,552 |
Collectively evaluated for Impairment | 5,689 | 6,552 |
Construction Development And Land [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 3,326 | 2,180 |
Provision | (629) | 1,146 |
Ending Balance | 2,697 | 3,326 |
Collectively evaluated for Impairment | 2,697 | 3,326 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 371 | 568 |
Charge-offs | (32) | (60) |
Recoveries | 16 | 8 |
Provision | (256) | (145) |
Ending Balance | 99 | 371 |
Collectively evaluated for Impairment | 99 | 371 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Beginning Balance | 1,405 | 1,552 |
Charge-offs | (1,792) | |
Recoveries | 11 | 1,526 |
Provision | 124 | 119 |
Ending Balance | 1,540 | 1,405 |
Collectively evaluated for Impairment | $ 1,540 | $ 1,405 |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Schedule of Investment in Loans Receivable by Loan Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | ||
Schedule Of Financial Receivables [Line Items] | ||||
Loan Receivable Ending Balance | $ 1,358,935 | $ 1,249,435 | ||
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 1,231 | 1,447 | ||
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 1,357,704 | 1,247,988 | ||
Residential Real Estate [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Loan Receivable Ending Balance | 300,390 | 182,499 | ||
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 147 | 301 | ||
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 300,243 | 182,198 | ||
Commercial Real Estate [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Loan Receivable Ending Balance | 534,187 | 467,930 | ||
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 1,076 | 1,088 | ||
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 533,111 | 466,842 | ||
Real Estate Construction Land And Land Development [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Loan Receivable Ending Balance | 337,173 | 324,906 | ||
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 337,173 | 324,906 | ||
Commercial and Industrial Sector [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Loan Receivable Ending Balance | 164,014 | [1] | 230,027 | [2] |
Loan Receivable Ending Balance: Individually Evaluated for Impairment | 8 | [1] | 58 | [2] |
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | 164,006 | [1] | 229,969 | [2] |
Consumer Loan [Member] | ||||
Schedule Of Financial Receivables [Line Items] | ||||
Loan Receivable Ending Balance | 23,171 | 44,073 | ||
Loan Receivable Ending Balance: Collectively Evaluated for Impairment | $ 23,171 | $ 44,073 | ||
[1] | No allowance assigned | |||
[2] | No allowance assigned to the $135.2 in PPP loans due to SBA guarantee |
Allowance for Loan Losses - S_3
Allowance for Loan Losses - Schedule of Investment in Loans Receivable by Loan Class (Parenthetical) (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Financial Receivables [Line Items] | ||
Total Gross Loans | $ 1,358,935 | $ 1,249,435 |
Commercial & Industrial [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Total Gross Loans | 164,014 | 230,027 |
Commercial & Industrial [Member] | Small Business Administration (SBA), CARES Act, Paycheck Protection Program [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Total Gross Loans | $ 58,300 | $ 135,200 |
Allowance for Loan Losses - S_4
Allowance for Loan Losses - Schedule of Information of Impaired Loans by Loan Portfolio Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | $ 1,231 | $ 1,447 |
Unpaid Principal Balance | 1,231 | 1,447 |
Single Family [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 147 | 301 |
Unpaid Principal Balance | 147 | 301 |
Commercial & Industrial [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 8 | 58 |
Unpaid Principal Balance | 8 | 58 |
Non Owner Occupied [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Recorded Investment | 1,076 | 1,088 |
Unpaid Principal Balance | $ 1,076 | $ 1,088 |
Allowance for Loan Losses - S_5
Allowance for Loan Losses - Schedule of Additional Information of Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment, with no related allowance recorded | $ 1,321 | $ 1,465 |
Interest Income Recognized, with no related allowance recorded | 76 | 123 |
Single Family [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment, with no related allowance recorded | 209 | 304 |
Interest Income Recognized, with no related allowance recorded | 9 | 16 |
Non Owner Occupied [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment, with no related allowance recorded | 1,080 | 1,097 |
Interest Income Recognized, with no related allowance recorded | 65 | 97 |
Commercial & Industrial [Member] | ||
Schedule Of Financial Receivables [Line Items] | ||
Average Record Investment, with no related allowance recorded | 32 | 64 |
Interest Income Recognized, with no related allowance recorded | $ 2 | $ 10 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||
Additional funds committed to be advanced in connection with impaired loans | $ 0 | |
Nonaccrual loans excluded from impaired loan disclosure | $ 0 | $ 0 |
Allowance for Loan Losses - S_6
Allowance for Loan Losses - Schedule of Financing Receivable Credit Quality Indicators (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | $ 1,358,935 | $ 1,249,435 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,266,138 | 1,174,167 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 70,585 | 71,825 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 16,866 | 1,329 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 5,346 | 2,114 |
Single Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 161,362 | 139,338 |
Single Family [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 160,234 | 137,937 |
Single Family [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 734 | 738 |
Single Family [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 394 | 663 |
Residential Real Estate Multi Family [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 137,705 | 43,332 |
Residential Real Estate Multi Family [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 137,705 | 43,332 |
Residential Real Estate Farm Land [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,323 | 861 |
Residential Real Estate Farm Land [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 1,323 | 861 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 173,086 | 141,813 |
Owner Occupied [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 168,352 | 136,257 |
Owner Occupied [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 4,734 | 5,556 |
Non Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 361,101 | 325,085 |
Non Owner Occupied [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 297,873 | 264,546 |
Non Owner Occupied [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 46,379 | 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 | 1,574 | 1,086 |
Commercial Real Estate Construction Land Development Loan [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 337,173 | 324,906 |
Commercial Real Estate Construction Land Development Loan [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 317,846 | 322,149 |
Commercial Real Estate Construction Land Development Loan [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 19,327 | 2,757 |
Commercial & Industrial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 164,014 | 230,027 |
Commercial & Industrial [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 159,634 | 225,012 |
Commercial & Industrial [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 145 | 4,059 |
Commercial & Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 857 | 591 |
Commercial & Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 3,378 | 365 |
Unsecured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 185 | 241 |
Unsecured [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 185 | 241 |
Secured [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | 22,986 | 43,832 |
Secured [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Gross Loans | $ 22,986 | $ 43,832 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Executive Officers Directors And Affiliated Entities [Member] | ||
Related Party Transaction [Line Items] | ||
Aggregate loans amount outstanding | $ 642,640 | $ 648,806 |
New loans and credit line advance to related parties | 50,971 | 146,025 |
Deposits account maintained by bank | 2,300,000 | 1,400,000 |
Directors And Officers [Member] | ||
Related Party Transaction [Line Items] | ||
Repayments of loans | $ 57,137 | $ 357,065 |
Premises And Equipment - Schedu
Premises And Equipment - Schedule Of Premises And Equipment (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, Gross | $ 21,842 | $ 20,523 |
Less accumulated depreciation | (7,121) | (6,261) |
Construction in progress | 142 | 27 |
Premises and equipment, net | 14,863 | 14,289 |
Building | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, Gross | 12,765 | 12,765 |
Land | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, Gross | 2,856 | 2,856 |
Leasehold improvements | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, Gross | 1,083 | 996 |
Furniture, fixtures and equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, Gross | 3,680 | 2,741 |
Computer software and equipment | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, Gross | $ 1,458 | $ 1,165 |
Premises And Equipment - Additi
Premises And Equipment - Additional information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Property Plant And Equipment [Abstract] | ||
Depreciation and amortization | $ 1.2 | $ 1.1 |
Intangible Assets - Additional
Intangible Assets - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 2,493,000 | |
Computer Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | 2,493,000 | $ 0 |
Amortization of intangible assets | $ 0 |
Intangible Assets - Schedule of
Intangible Assets - Schedule of Changes in Computer Software Developed (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | $ 2,493,000 | |
Computer Software [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Carrying amount | 2,493,000 | $ 0 |
Amortization of intangible assets | $ 0 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Time deposits of $250,000 or more | $ 289.7 | $ 219 |
Brokered deposits | $ 245.1 | $ 279.5 |
Deposits - Schedule of Maturiti
Deposits - Schedule of Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
2022 | $ 207,264 | |
2023 | 175,928 | |
2024 | 54,539 | |
2025 | 20,440 | |
Thereafter | 977 | |
Total | $ 459,148 | $ 496,743 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Debt Disclosure [Abstract] | ||
Amount of credit available with FHLB loan | $ 414,000,000 | |
Loans collateralized for FHLB advances | 762,300,000 | |
Securities pledged as collateral for FHLB advances | 410,492 | |
FHLB advances | 0 | $ 0 |
Average balance on FHLB advances | $ 0 | $ 6,200,000 |
Weighted average interest rate on FHLB advances | 0.00% | 1.73% |
Income Taxes - Schedule of Prov
Income Taxes - Schedule of Provision for Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Current expense | $ 5,449 | $ 5,595 |
Deferred income tax (benefit) | 336 | (1,752) |
Total | $ 5,785 | $ 3,843 |
Income Taxes - Schedule of Inco
Income Taxes - Schedule of Income Tax Expense Differed From Federal Statutory Rate Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | ||
Computed “expected” income tax expense | $ 5,871 | $ 4,108 |
Non-deductible expense | 15 | 25 |
Tax exempt Interest | (230) | (259) |
BOLI Income | (189) | (164) |
Low Income Housing Investment | 49 | |
State Income Taxes | 326 | 165 |
Restricted Stock Adjustment | 4 | (95) |
Federal tax credits | (64) | |
Other Adjustments | 3 | 63 |
Total | $ 5,785 | $ 3,843 |
Income Taxes - Schedule of Tax
Income Taxes - Schedule of Tax Effects of Temporary Differences Result in Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,591 | $ 2,851 |
Restricted stock | 373 | 313 |
OREO adjustment | 96 | 95 |
Net loan fees | 1,214 | 1,368 |
Organizational costs | 5 | 6 |
Right-of-use liability | 1,718 | 1,463 |
Accrued compensation | 116 | |
Unrealized losses on securities transferred to held to maturity | 12 | |
Gross deferred tax assets | 6,113 | 6,108 |
Deferred tax liabilities: | ||
Depreciation | 393 | 267 |
Unrealized gain on securities available for sale | 56 | 285 |
Prepaid expense | 22 | 20 |
Right-of-use asset | 1,585 | 1,371 |
Other | 11 | |
Gross deferred tax liabilities | 2,067 | 1,943 |
Net deferred tax asset | $ 4,046 | $ 4,165 |
Earnings Per Common Share - Add
Earnings Per Common Share - Additional Information (Detail) - shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 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 | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Earnings Per Share [Abstract] | ||
Net income | $ 22,171 | $ 15,717 |
Preferred stock dividends | (2,156) | (635) |
Net Income available to Common Shareholders | $ 20,015 | $ 15,082 |
Weighted average number of shares issued, basic and diluted | 7,559,310 | 8,131,334 |
Net income per common share: | ||
Basic and diluted income available to common shareholders | $ 2.65 | $ 1.85 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Amount of Loan Commitments and Standby Letters of Credit (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Loan Commitments [Member] | ||
Commitments And Contingencies [Line Items] | ||
Loan commitments and letters of credit | $ 304,335 | $ 219,414 |
Standby Letters of Credit [Member] | ||
Commitments And Contingencies [Line Items] | ||
Loan commitments and letters of credit | $ 230 | $ 1,062 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 |
Commitments And Contingencies [Line Items] | ||
Commitment amount | $ 0 | $ 0 |
Housing Equity Fund of Virginia XXIV L.L.C [Member] | ||
Commitments And Contingencies [Line Items] | ||
Commitment amount | 5,000,000 | |
Washington Housing Initiative Impact Pool L.L.C [Member] | ||
Commitments And Contingencies [Line Items] | ||
Commitment amount | $ 2,000,000 | |
Commitment funded Balance | 656,000 | |
Commitment unfunded balance | $ 1,300,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended | |
Dec. 31, 2021USD ($)Lease | Dec. 31, 2020USD ($) | |
Leases [Abstract] | ||
Cash paid for amounts included in measurement of lease liabilities | $ 590,000 | $ 399,000 |
Operating leases expense | $ 693,000 | $ 590,000 |
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 |
Leases - Schedule of Leases Cos
Leases - Schedule of Leases Cost (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Leases [Abstract] | ||
Lease liabilities | $ 7,753,000 | $ 6,607,000 |
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other liabilities | Other liabilities |
Right-of-use assets | $ 7,154,000 | $ 6,195,000 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other assets | Other assets |
Weighted-average remaining lease term – operating leases (in months). | 173 months 6 days | 187 months 15 days |
Weighted-average discount rate – operating leases | 2.81% | 3.12% |
Lease Cost | ||
Operating lease cost | $ 693,000 | $ 590,000 |
Total lease costs | 693,000 | 590,000 |
Cash paid for amounts included in measurement of lease liabilities | $ 590,000 | $ 399,000 |
Leases - Schedule of Maturity A
Leases - Schedule of Maturity Analysis of Annual Undiscounted Cash Flows of Operating Lease Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Leases [Abstract] | ||
2022 | $ 607 | |
2023 | 638 | |
2024 | 654 | |
2025 | 671 | |
2026 | 689 | |
Thereafter | 6,268 | |
Total undiscounted cash flows | 9,527 | |
Discount | (1,774) | |
Lease liabilities | $ 7,753 | $ 6,607 |
Significant Concentrations of_2
Significant Concentrations of Credit Risk - Additional Information (Detail) $ in Millions | Dec. 31, 2021USD ($) |
Concentration Of Credit Risk [Abstract] | |
Amount on deposit exceeded insurance limits of Federal Deposit Insurance Corporation | $ 51.2 |
Regulatory Matters - Additional
Regulatory Matters - Additional Information (Details) | 12 Months Ended | |||
Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2015 | |
Regulatory Matters [Abstract] | ||||
Capital conservation buffer, percentage | 2.50% | 2.50% | 2.50% | 0.00% |
Regulatory Matters - Schedule o
Regulatory Matters - Schedule of Bank's Actual Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Regulatory Matters [Abstract] | ||
Total capital (to risk-weighted assets), Actual, Amount | $ 227,359 | $ 189,534 |
Total capital (to risk-weighted assets), Actual, Ratio | 0.1606 | 0.1460 |
Total capital (to risk-weighted assets), Capital Adequacy Purposes, Amount | $ 113,249 | $ 103,872 |
Total capital (to risk-weighted assets), Capital Adequacy Purposes, Ratio | 0.080 | 0.080 |
Total capital (to risk-weighted assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Amount | $ 141,562 | $ 129,840 |
Total capital (to risk-weighted assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Ratio | 0.100 | 0.100 |
Common equity tier 1 capital (to risk-weighted assets), Actual, Amount | $ 215,662 | $ 176,657 |
Common equity tier 1 capital (to risk-weighted assets), Actual, Ratio | 0.1523 | 0.1361 |
Common equity tier 1 capital (to risk-weighted assets), Capital Adequacy Purposes, Amount | $ 63,703 | $ 58,428 |
Common equity tier 1 capital (to risk-weighted assets), Capital Adequacy Purposes, Ratio | 4.50% | 4.50% |
Common equity tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Amount | $ 113,249 | $ 103,872 |
Common equity tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Ratio | 8.00% | 8.00% |
Tier 1 capital (to risk-weighted assets), Actual, Amount | $ 215,662 | $ 176,657 |
Tier 1 capital (to risk-weighted assets), Actual, Ratio | 0.1523 | 0.1361 |
Tier 1 capital (to risk-weighted assets), Capital Adequacy Purposes, Amount | $ 84,937 | $ 77,904 |
Tier 1 capital (to risk-weighted assets), Capital Adequacy Purposes, Ratio | 0.060 | 0.060 |
Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Amount | $ 113,249 | $ 103,872 |
Tier 1 capital (to risk-weighted assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Ratio | 0.080 | 0.080 |
Tier 1 capital (to average assets), Actual, Amount | $ 215,662 | $ 176,657 |
Tier 1 capital (to average assets), Actual, Ratio | 0.1290 | 0.1078 |
Tier 1 capital (to average assets), Capital Adequacy Purposes, Amount | $ 66,898 | $ 65,557 |
Tier 1 capital (to average assets), Capital Adequacy Purposes, Ratio | 0.040 | 0.040 |
Tier 1 capital (to average assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Amount | $ 83,622 | $ 81,946 |
Tier 1 capital (to average assets), To Be Well Capitalized Under the Prompt Corrective Action Provision, Ratio | 0.050 | 0.050 |
Defined Contribution Benefit _2
Defined Contribution Benefit Plan - Additional Information (Detail) - 401(k) Defined Contribution Plan [Member] - USD ($) | Jan. 01, 2010 | Oct. 01, 2004 | Dec. 31, 2021 | Dec. 31, 2020 |
Defined Contribution Plan Disclosure [Line Items] | ||||
Maximum pretax annual compensation, percentage | 5.00% | 15.00% | ||
Employee's contribution, percentage | 2.00% | |||
Defined contribution plan, description | The Bank matches dollar for dollar up to 3% of the employee’s contribution and then fifty cents on the dollar on the next two percentage points up to the employee contribution of 5%. | |||
Amount matched by bank | $ 492,578 | $ 478,960 | ||
Maximum [Member] | ||||
Defined Contribution Plan Disclosure [Line Items] | ||||
Bank matches of employee's contribution, percentage of match | 3.00% |
Stock Based Compensation Plan -
Stock Based Compensation Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation arrangement, options granted | 0 | 0 |
2019 Plan [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation arrangement, options granted | 0 | |
Restricted Stock [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Stock based compensation expenses | $ 1.9 | $ 1.5 |
Share-based compensation arrangement, other than options, granted | 153,636 | |
Share-based compensation arrangement, other than options, forfeited | 1,697 | |
Unrecognized compensation cost | $ 2.7 | |
Period over which unrecognized compensation cost expected to be recognized | 10 years | |
Fair value of shares vested | $ 1.5 | $ 1.2 |
Restricted Stock [Member] | 2019 Plan [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation arrangement, other than options, granted | 153,636 | |
Share-based compensation arrangement, other than options, forfeited | 1,697 | |
Restricted Stock [Member] | 2019 Plan [Member] | Share-based Payment Arrangement Tranche One [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation arrangement, vesting period | 3 years | |
Restricted Stock [Member] | 2019 Plan [Member] | Share-based Payment Arrangement Tranche Two [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation arrangement, vesting period | 5 years | |
Restricted Stock [Member] | 2019 Plan [Member] | Share-based Payment Arrangement Tranche Three [Member] | ||
Employee Service Share Based Compensation Allocation Of Recognized Period Costs [Line Items] | ||
Share-based compensation arrangement, vesting period | 10 years |
Stock Based Compensation Plan_2
Stock Based Compensation Plan - Summary of Nonvested Restricted Stock Activity (Details) - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2021$ / sharesshares | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Nonvested Shares, Beginning Balance | shares | 161,435 |
Nonvested Shares, Granted | shares | 153,636 |
Nonvested Shares, Vested | shares | (84,117) |
Nonvested Shares, Forfeited | shares | (1,697) |
Nonvested Shares, Ending Balance | shares | 229,257 |
Weighted Average Grant Date Fair Value, Beginning Balance | $ / shares | $ 18.36 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 19.38 |
Weighted Average Grant Date Fair Value, Vested | $ / shares | 17.53 |
Weighted Average Grant Date Fair Value, Forfeitures | $ / shares | 20.04 |
Weighted Average Grant Date Fair Value, Ending Balance | $ / shares | $ 19.33 |
Derivatives and Risk Manageme_3
Derivatives and Risk Management Activities - Schedule of Derivative Instruments (Detail) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Matched Interest Rate Swap With Borrower [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 210,793 | $ 210,314 |
Positions | 40 | 38 |
Assets | $ 2,097 | $ 12,152 |
Collateral Pledges | 15,120 | 15,120 |
Matched Interest Rate Swaps With Counterparty [Member] | ||
Derivative [Line Items] | ||
Notional Amount | $ 210,793 | $ 210,314 |
Positions | 40 | 38 |
Liabilities | $ 2,097 | $ 12,152 |
Collateral Pledges | $ 15,120 | $ 15,120 |
Derivatives and Risk Manageme_4
Derivatives and Risk Management Activities - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Interest rate swap fee income | $ 83,000 | $ 3,510,000 |
Fair Value Presentation - Sched
Fair Value Presentation - Schedule of Fair Value Assets Measured on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Investment securities available-for-sale | $ 99,913 | $ 147,414 |
Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 99,913 | 147,414 |
Derivative asset | 2,097 | 12,152 |
Liabilities: | ||
Derivative liability | 2,097 | 12,152 |
U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 20,000 | 90,000 |
Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 30,882 | 24,896 |
Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 8,704 | 3,278 |
Taxable Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 10,557 | 6,271 |
U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,627 | 6,635 |
Tax-Exempt Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 24,143 | 16,334 |
Fair Value, Measurements, Recurring [Member] | ||
Assets: | ||
Total | 102,010 | 159,566 |
Liabilities: | ||
Total | 2,097 | 12,152 |
Fair Value, Measurements, Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Assets: | ||
Derivative asset | 2,097 | 12,152 |
Liabilities: | ||
Derivative liability | 2,097 | 12,152 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Assets: | ||
Total | 102,010 | 159,566 |
Liabilities: | ||
Total | 2,097 | 12,152 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | Interest Rate Swap on Loans [Member] | ||
Assets: | ||
Derivative asset | 2,097 | 12,152 |
Liabilities: | ||
Derivative liability | 2,097 | 12,152 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 20,000 | 90,000 |
Fair Value, Measurements, Recurring [Member] | U.S. Treasury Securities [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 20,000 | 90,000 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed [Member] | ||
Assets: | ||
Investment securities available-for-sale | 30,882 | 24,896 |
Fair Value, Measurements, Recurring [Member] | Collateralized Mortgage Backed [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 30,882 | 24,896 |
Fair Value, Measurements, Recurring [Member] | Subordinated Debt [Member] | ||
Assets: | ||
Investment securities available-for-sale | 8,704 | 3,278 |
Fair Value, Measurements, Recurring [Member] | Subordinated Debt [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 8,704 | 3,278 |
Fair Value, Measurements, Recurring [Member] | Taxable Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 10,557 | 6,271 |
Fair Value, Measurements, Recurring [Member] | Taxable Municipal Securities [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 10,557 | 6,271 |
Fair Value, Measurements, Recurring [Member] | U.S Government Agencies [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,627 | 6,635 |
Fair Value, Measurements, Recurring [Member] | U.S Government Agencies [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 5,627 | 6,635 |
Fair Value, Measurements, Recurring [Member] | Tax-Exempt Municipal Securities [Member] | ||
Assets: | ||
Investment securities available-for-sale | 24,143 | 16,334 |
Fair Value, Measurements, Recurring [Member] | Tax-Exempt Municipal Securities [Member] | Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | $ 24,143 | $ 16,334 |
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 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Assets | $ 775 | $ 1,180 |
Other Real Estate Owned [Member] | ||
Assets: | ||
Assets | 775 | 1,180 |
Level 3 [Member] | ||
Assets: | ||
Assets | 775 | 1,180 |
Level 3 [Member] | Other Real Estate Owned [Member] | ||
Assets: | ||
Assets | $ 775 | $ 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) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Other real estate owned, net | $ 775,000 | $ 1,180,000 | $ 1,207,000 |
Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Total | 775,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Valuation Technique Appraisal | Discount Rate [Member] | |||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |||
Other real estate owned, net | $ 775,000 | ||
Fair Value, Measurements, Nonrecurring [Member] | Valuation Technique Appraisal | 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] | Valuation Technique Appraisal | 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 | Dec. 31, 2021 | Dec. 31, 2020 |
Assets: | ||
Cash and cash equivalents | $ 93,199 | $ 107,528 |
Restricted equity securities | 15,609 | 4,616 |
Securities: | ||
Available for sale | 99,913 | 147,414 |
Held to maturity | 20,349 | 22,520 |
Bank owned life insurance | 36,241 | 25,341 |
Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 93,199 | 107,528 |
Level 2 [Member] | ||
Assets: | ||
Restricted equity securities | 15,609 | 4,616 |
Securities: | ||
Available for sale | 99,913 | 147,414 |
Held to maturity | 21,144 | 23,578 |
Derivative asset – interest rate swap on loans | 2,097 | 12,152 |
Bank owned life insurance | 36,241 | 25,341 |
Accrued interest receivable | 6,735 | 9,154 |
Liabilities: | ||
Deposits | 952,815 | 941,503 |
Subordinated debt, net | 29,570 | 14,834 |
Derivative liability – interest rate swaps on loans | 2,097 | 12,152 |
Accrued interest payable | 462 | 490 |
Level 3 [Member] | ||
Securities: | ||
Loans, net | 1,346,048 | 1,259,671 |
Loans held for sale | 58,930 | |
Liabilities: | ||
Deposits | 462,736 | 510,205 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 93,199 | 107,528 |
Restricted equity securities | 15,609 | 4,616 |
Securities: | ||
Available for sale | 99,913 | 147,414 |
Held to maturity | 20,349 | 22,520 |
Loans, net | 1,341,760 | 1,230,379 |
Loans held for sale | 57,006 | |
Derivative asset – interest rate swap on loans | 2,097 | 12,152 |
Bank owned life insurance | 36,241 | 25,341 |
Accrued interest receivable | 6,735 | 9,154 |
Liabilities: | ||
Deposits | 1,411,963 | 1,438,246 |
Subordinated debt, net | 29,294 | 14,834 |
Derivative liability – interest rate swaps on loans | 2,097 | 12,152 |
Accrued interest payable | 462 | 490 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 93,199 | 107,528 |
Restricted equity securities | 15,609 | 4,616 |
Securities: | ||
Available for sale | 99,913 | 147,414 |
Held to maturity | 21,144 | 23,578 |
Loans, net | 1,346,048 | 1,259,671 |
Loans held for sale | 58,930 | |
Derivative asset – interest rate swap on loans | 2,097 | 12,152 |
Bank owned life insurance | 36,241 | 25,341 |
Accrued interest receivable | 6,735 | 9,154 |
Liabilities: | ||
Deposits | 1,415,551 | 1,451,708 |
Subordinated debt, net | 29,570 | 14,834 |
Derivative liability – interest rate swaps on loans | 2,097 | 12,152 |
Accrued interest payable | $ 462 | $ 490 |
Other Real Estate Owned - Addit
Other Real Estate Owned - Additional Information (Detail) - USD ($) | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Other Real Estate [Abstract] | |||
Other real estate owned, net | $ 775,000 | $ 1,180,000 | $ 1,207,000 |
Real estate loans in process of foreclosure | $ 0 |
Other Real Estate Owned - Chang
Other Real Estate Owned - Changes in Balance for OREO (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate [Abstract] | ||
Balance, beginning of year | $ 1,180,000 | $ 1,207,000 |
Loss on valuation, net | (22,000) | (432,000) |
Sale of other real estate owned | (383,000) | |
Transfers from loans to other real estate owned | 362,000 | |
Gain on transfer of real estate | 43,000 | |
Balance, end of year | $ 775,000 | $ 1,180,000 |
Other Real Estate Owned - Expen
Other Real Estate Owned - Expenses Applicable to Other Real Estate Owned (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Other Real Estate [Abstract] | ||
Net loss (gain) on transfer or sale of real estate | $ 40 | $ (43) |
Loss on valuation, net | 22 | 432 |
Operating expenses, net of rental income | 22 | 27 |
Balance, end of year | $ 84 | $ 459 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income - Components of Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Accumulated Other Comprehensive Loss [Line Items] | ||
Tax effect | $ (39) | $ (255) |
Total accumulated other comprehensive income | 197 | 977 |
Unrealized gain on securities [Member] | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Accumulated other comprehensive gain(loss), before tax | 265 | 1,287 |
Unrealized loss on securities transferred to HTM [Member] | ||
Accumulated Other Comprehensive Loss [Line Items] | ||
Accumulated other comprehensive gain(loss), before tax | $ (29) | $ (55) |
Capital - Additional Informatio
Capital - Additional Information (Detail) - USD ($) | Sep. 25, 2020 | Sep. 15, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | Oct. 22, 2020 | Sep. 18, 2019 |
Capital [Line Items] | |||||||
Depositary shares interest representation description | 1,000,000 depositary shares, each representing a 1/40th interest in a share of the Company’s Fixed Rate Series A Noncumulative Perpetual Preferred Stock | ||||||
Depositary shares interest in fixed rate noncumulative perpetual preferred stock | 0.025% | ||||||
Preferred stock, par value | $ 1 | $ 1 | $ 1 | ||||
Liquidation preference per share | $ 1,000 | ||||||
Common Stock [Member] | |||||||
Capital [Line Items] | |||||||
Repurchase of shares | 13.8 | 0 | 0 | ||||
Common Stock [Member] | Maximum [Member] | |||||||
Capital [Line Items] | |||||||
Share repurchase program authorized amount | $ 17,000,000 | $ 10,000,000 | |||||
Depositary Shares [Member] | |||||||
Capital [Line Items] | |||||||
Aggregate preferred shares sold | 1,000,000 | ||||||
Liquidation preference per depositary share | $ 25 | ||||||
Depositary shares dividend fixed rate percentage | 7.50% | ||||||
Depositary Shares [Member] | Over-Allotment Option [Member] | |||||||
Capital [Line Items] | |||||||
Aggregate preferred shares sold | 150,000 |
Subordinated Notes - Additional
Subordinated Notes - Additional Information (Detail) - Fixed-to-floating Rate Subordinated Notes [Member] - USD ($) | Mar. 15, 2027 | Apr. 15, 2026 | Mar. 01, 2022 | Jan. 01, 2022 | Apr. 06, 2021 | Dec. 30, 2016 | Mar. 31, 2017 |
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 30,000,000 | $ 14,300,000 | $ 15,000,000 | ||||
Debt instrument, additional face amount | $ 700,000 | ||||||
Debt instrument, maturity date | Apr. 15, 2031 | Dec. 31, 2026 | |||||
Debt instrument, interest rate, stated percentage | 3.75% | 6.25% | |||||
Debt instrument, description of variable rate basis | the notes will have a floating interest rate based on three-month SOFR rate plus 302 basis points (3.02%) (computed on the basis of a 360-day year of twelve 30-day months) | the notes were to have a floating interest rate based on three-month LIBOR rate plus 425 basis points (4.25%) (computed on the basis of a 360-day year of twelve 30-day months) | |||||
Debt instrument, interest rate terms | Interest will be paid semi-annually, in arrears, on April 15 and October 15 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on April 15, July 15, October 15 and January 15 throughout the floating interest rate period or earlier redemption date | Interest was paid semi-annually, in arrears, on July 1 and January 1 of each year during the time that the notes remain outstanding. | |||||
LIBOR [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 3.02% | 4.25% | |||||
Subsequent Event [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, face amount | $ 43,800,000 | ||||||
Debt instrument, maturity date | Mar. 15, 2032 | ||||||
Debt instrument, interest rate, stated percentage | 4.00% | ||||||
Debt instrument, description of variable rate basis | the notes will have a floating interest rate based on three-month SOFR rate plus 233 basis points (2.33%) (computed on the basis of a 360-day year of twelve 30-day months) | ||||||
Debt instrument, interest rate terms | Interest will be paid semi-annually, in arrears, on March 15 and September 15 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on March 15, June 15, September 15 and December 15 throughout the floating interest rate period or earlier redemption date. | ||||||
Subsequent Event [Member] | LIBOR [Member] | Scenario Forecast [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt instrument, basis spread on variable rate | 2.33% |
Condensed Parent Company Fina_3
Condensed Parent Company Financial Statements - Condensed Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | |||
Other assets | $ 14,499 | $ 23,288 | |
Total Assets | 1,647,402 | 1,643,165 | |
Liabilities | |||
Other liabilities | 17,357 | 22,420 | |
Subordinated debt, net of debt issuance costs | 29,294 | 14,834 | |
Stockholders’ equity | 188,788 | 167,665 | $ 137,034 |
Total Liabilities and Stockholders’ Equity | 1,647,402 | 1,643,165 | |
Parent Company [Member] | |||
Assets | |||
Cash on deposit with subsidiary | 376 | 3,754 | |
Investment in subsidiary | 215,858 | 177,634 | |
Other assets | 2,138 | 1,560 | |
Total Assets | 218,372 | 182,948 | |
Liabilities | |||
Other liabilities | 290 | 449 | |
Subordinated debt, net of debt issuance costs | 29,294 | 14,834 | |
Stockholders’ equity | 188,788 | 167,665 | |
Total Liabilities and Stockholders’ Equity | $ 218,372 | $ 182,948 |
Condensed Parent Company Fina_4
Condensed Parent Company Financial Statements - Condensed Statement of Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Condensed Income Statements Captions [Line Items] | ||
Interest on subordinated debt | $ 1,884 | $ 966 |
Non-interest expense | 32,865 | 30,258 |
Income before income taxes | 27,956 | 19,560 |
Income tax benefit | 5,785 | 3,843 |
Net Income | 22,171 | 15,717 |
Net Income available to Common Shareholders | 20,015 | 15,082 |
Parent Company [Member] | ||
Condensed Income Statements Captions [Line Items] | ||
Dividends from subsidiary | 2,156 | 635 |
Interest on subordinated debt | 1,884 | 966 |
Non-interest expense | 4 | |
Total expenses | 1,884 | 970 |
Undistributed earnings of subsidiary | 21,504 | 15,848 |
Income before income taxes | 21,776 | 15,513 |
Income tax benefit | (395) | (204) |
Net Income | 22,171 | 15,717 |
Less: preferred stock dividends | (2,156) | (635) |
Net Income available to Common Shareholders | $ 20,015 | $ 15,082 |
Condensed Parent Company Fina_5
Condensed Parent Company Financial Statements - Condensed Statement of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 22,171 | $ 15,717 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock based compensation | 1,888 | 1,529 |
Subordinated debt amortization expense | 223 | 29 |
Decrease (increase) in other assets | 8,224 | (8,167) |
Increase (decrease) in other liabilities | (5,063) | 8,524 |
Net cash provided by operating activities | 60,388 | 17,016 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net cash used in investing activities | (60,515) | (313,786) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | (13,797) | |
Issuance of preferred stock, net | 27,263 | |
Cash dividends paid on preferred stock | (2,156) | (635) |
Net cash provided by (used in) financing activities | (14,202) | 339,454 |
Increase (decrease) in Cash and Cash Equivalents | (14,329) | 42,684 |
Cash and Cash Equivalents, beginning of period | 107,528 | 64,844 |
Cash and Cash Equivalents, end of period | 93,199 | 107,528 |
Parent Company [Member] | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | 22,171 | 15,717 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed earnings of subsidiary | (21,504) | (15,848) |
Stock based compensation | 1,888 | 1,529 |
Subordinated debt amortization expense | 223 | 29 |
Decrease (increase) in other assets | (578) | 212 |
Increase (decrease) in other liabilities | (159) | 449 |
Net cash provided by operating activities | 2,041 | 2,088 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Investment in bank subsidiary | (17,500) | (12,500) |
Net cash used in investing activities | (17,500) | (12,500) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Repurchase of common stock | (13,797) | |
Issuance of preferred stock, net | 27,263 | |
Cash dividends paid on preferred stock | (2,156) | (635) |
Net increase in subordinated debt | 14,237 | |
Net cash provided by (used in) financing activities | 12,081 | 12,831 |
Increase (decrease) in Cash and Cash Equivalents | (3,378) | 2,419 |
Cash and Cash Equivalents, beginning of period | 3,754 | 1,335 |
Cash and Cash Equivalents, end of period | $ 376 | $ 3,754 |