Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 27, 2020 | |
Entity Information [Line Items] | ||
Entity Registrant Name | UNION BANKSHARES INC | |
Entity Central Index Key | 0000706863 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 4,473,246 | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Interactive Data Current | Yes | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets (Ma
Consolidated Balance Sheets (March 31, 2020 Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 6,224 | $ 5,405 |
Federal funds sold and overnight deposits | 35,488 | 45,729 |
Cash and cash equivalents | 41,712 | 51,134 |
Interest bearing deposits in banks | 6,067 | 6,565 |
Investment securities available-for-sale | 89,447 | 87,393 |
Other investments | 581 | 690 |
Total investments | 90,028 | 88,083 |
Loans held for sale | 16,456 | 7,442 |
Loans | 676,531 | 670,244 |
Allowance for loan losses | (6,391) | (6,122) |
Net deferred loan costs | 1,056 | 1,043 |
Net loans | 671,196 | 665,165 |
Premises and equipment, net | 20,528 | 20,923 |
Goodwill | 2,223 | 2,223 |
Company-owned life insurance | 12,403 | 12,322 |
Other assets | 22,474 | 19,055 |
Total assets | 883,087 | 872,912 |
Deposits | ||
Noninterest bearing | 139,963 | 136,434 |
Interest bearing | 449,943 | 458,940 |
Time | 146,154 | 148,653 |
Total deposits | 736,060 | 744,027 |
Borrowed funds | 62,164 | 47,164 |
Accrued interest and other liabilities | 11,075 | 9,878 |
Total liabilities | 809,299 | 801,069 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,949,246 shares issued at March 31, 2020 and 4,948,245 shares issued at December 31, 2019 | 9,899 | 9,897 |
Additional paid-in capital | 1,226 | 1,124 |
Retained earnings | 64,783 | 64,019 |
Treasury stock at cost; 476,046 shares at March 31, 2020 and 476,268 shares at December 31, 2019 | (4,181) | (4,183) |
Accumulated other comprehensive income | 2,061 | 986 |
Total stockholders' equity | 73,788 | 71,843 |
Total liabilities and stockholders' equity | $ 883,087 | $ 872,912 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (March 31, 2020 Unaudited) Consolidated Balance Sheets Parenthetical - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 4,949,246 | 4,948,245 |
Treasury stock, shares | 476,046 | 476,268 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and dividend income | ||
Interest and fees on loans | $ 8,291 | $ 7,902 |
Interest on debt securities: | ||
Taxable | 387 | 401 |
Tax exempt | 157 | 131 |
Dividends | 34 | 42 |
Interest on federal funds sold and overnight deposits | 53 | 61 |
Interest on interest bearing deposits in banks | 41 | 55 |
Total interest and dividend income | 8,963 | 8,592 |
Interest expense | ||
Interest on deposits | 1,309 | 1,065 |
Interest on borrowed funds | 148 | 162 |
Total interest expense | 1,457 | 1,227 |
Net interest income | 7,506 | 7,365 |
Provision for loan losses | 300 | 50 |
Net interest income after provision for loan losses | 7,206 | 7,315 |
Noninterest income | ||
Trust Income | 173 | 168 |
Service fees | 1,497 | 1,426 |
Net gains on sales of investment securities available-for-sale | 11 | 4 |
Net gains on sales of loans held for sale | 812 | 374 |
Net (loss) gain on other investments | (124) | 62 |
Other income | 149 | 198 |
Total noninterest income | 2,518 | 2,232 |
Noninterest expenses | ||
Salaries and wages | 3,121 | 2,798 |
Employee benefits | 982 | 999 |
Occupancy expense, net | 514 | 438 |
Equipment expense | 740 | 565 |
Other expenses | 1,815 | 1,727 |
Total noninterest expenses | 7,172 | 6,527 |
Income before provision for income taxes | 2,552 | 3,020 |
Provision for income taxes | 356 | 399 |
Net income | $ 2,196 | $ 2,621 |
Earnings per common share | $ 0.49 | $ 0.59 |
Weighted average number of common shares outstanding | 4,472,886 | 4,467,376 |
Dividends per common share | $ 0.32 | $ 0.31 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Net Income | $ 2,196 | $ 2,621 |
Investment securities available-for-sale: | ||
Net unrealized holding gains arising during the period on investment securities available-for-sale | 1,084 | 943 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | (9) | (3) |
Total other comprehensive income | 1,075 | 940 |
Total comprehensive income | $ 3,271 | $ 3,561 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive income (loss) |
Balances at Dec. 31, 2018 | $ 64,491 | $ 9,888 | $ 894 | $ 58,911 | $ (4,179) | $ (1,023) |
Common Stock, Shares, net of treasury at Dec. 31, 2018 | 4,466,679 | |||||
Net income | 2,621 | 2,621 | ||||
Other comprehensive income | 940 | 940 | ||||
Dividend reinvestment plan | 12 | 10 | 2 | |||
Dividend reinvestment plan, shares | 246 | |||||
Cash dividends declared ($0.32 and $0.31 per share for the three months ended March 31, 2020 and 2019, respectively) | (1,385) | (1,385) | ||||
Stock based compensation expense | 43 | 43 | ||||
Exercise of stock options | 22 | $ 2 | 20 | |||
Exercise of stock options, shares | 1,000 | |||||
Purchase of treasury stock | (13) | (13) | ||||
Purchase of treasury stock, shares | (300) | |||||
Balances at Mar. 31, 2019 | 66,731 | $ 9,890 | 967 | 60,147 | (4,190) | (83) |
Common Stock, Shares, net of treasury at Mar. 31, 2019 | 4,467,625 | |||||
Balances at Dec. 31, 2019 | 71,843 | $ 9,897 | 1,124 | 64,019 | (4,183) | 986 |
Common Stock, Shares, net of treasury at Dec. 31, 2019 | 4,471,977 | |||||
Net income | 2,196 | 2,196 | ||||
Other comprehensive income | 1,075 | 1,075 | ||||
Dividend reinvestment plan | 8 | 6 | 2 | |||
Dividend reinvestment plan, shares | 223 | |||||
Cash dividends declared ($0.32 and $0.31 per share for the three months ended March 31, 2020 and 2019, respectively) | (1,432) | (1,432) | ||||
Stock based compensation expense | 76 | 76 | ||||
Exercise of stock options | 22 | $ 2 | 20 | |||
Exercise of stock options, shares | 1,000 | |||||
Balances at Mar. 31, 2020 | $ 73,788 | $ 9,899 | $ 1,226 | $ 64,783 | $ (4,181) | $ 2,061 |
Common Stock, Shares, net of treasury at Mar. 31, 2020 | 4,473,200 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash dividends declared, per share | $ 0.32 | $ 0.31 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net Income | $ 2,196 | $ 2,621 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 476 | 337 |
Provision for loan losses | 300 | 50 |
Deferred income tax provision | 10 | 8 |
Net amortization of premiums on investment securities | 113 | 87 |
Equity in losses of limited partnerships | 188 | 162 |
Stock based compensation expense | 76 | 43 |
Net increase in unamortized loan costs | (13) | (13) |
Proceeds from sales of loans held for sale | 43,322 | 21,779 |
Origination of loans held for sale | (51,524) | (24,153) |
Net gains on sales of loans held for sale | (812) | (374) |
Net gains on sales of investment securities available-for-sale | (11) | (4) |
Decrease (increase) in other investments | 109 | (65) |
Increase in accrued interest receivable | (275) | (248) |
Amortization of core deposit intangible | 43 | 43 |
Decrease in other assets | 209 | 281 |
(Decrease) increase in other liabilities | (1,339) | 492 |
Net cash (used in) provided by operating activities | (6,932) | 1,046 |
Interest bearing deposits in banks | ||
Proceeds from maturities and redemptions | 498 | 996 |
Purchases | 0 | (249) |
Investment securities available-for-sale | ||
Proceeds from sales | 3,076 | 6,510 |
Proceeds from maturities, calls and paydowns | 3,980 | 1,580 |
Purchases | (7,851) | (13,092) |
Net increase in nonmarketable stock | (599) | (213) |
Net increase in loans | (6,341) | (7,578) |
Recoveries of loans charged off | 23 | 4 |
Purchases of premises and equipment | (81) | (1,545) |
Investments in limited partnerships | (826) | (358) |
Net cash used in investing activities | (8,121) | (13,945) |
Cash Flows From Financing Activities | ||
Repayment of long-term debt | 0 | (10,000) |
Net increase in short-term borrowings outstanding | 15,000 | 19,963 |
Net increase (decrease) in noninterest bearing deposits | 3,529 | (5,133) |
Net decrease in interest bearing deposits | (8,997) | (18,825) |
Net (decrease) increase in time deposits | (2,499) | 17,561 |
Issuance of common stock | 22 | 22 |
Purchase of treasury stock | 0 | (13) |
Dividends paid | (1,424) | (1,373) |
Net cash provided by financing activities | 5,631 | 2,202 |
Net decrease in cash and cash equivalents | (9,422) | (10,697) |
Cash and cash equivalents | ||
Beginning of period | 51,134 | 37,289 |
End of period | 41,712 | 26,592 |
Supplemental Disclosures of Cash Flow Information | ||
Interest Paid | 1,925 | 1,174 |
Income taxes paid | 0 | 0 |
Supplemental Schedule of Noncash Investing Activities | ||
Investment in limited partnerships acquired by capital contributions payable | 2,722 | 0 |
Right-of-use operating lease assets obtained in exchange for operating lease liabilities | 0 | 2,002 |
Dividends paid on Common Stock: | ||
Dividends declared | 1,432 | 1,385 |
Dividends reinvested | (8) | (12) |
Dividends paid | $ 1,424 | $ 1,373 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of March 31, 2020 , and for the three months ended March 31, 2020 and 2019 , have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 ( 2019 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2019 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2020 , or any future interim period. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its consolidated statements of income, comprehensive income, cash flows and changes in stockholder’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this report, as permitted for smaller reporting companies. Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. On May 7, 2020, Union Bankshares, Inc. distributed its First Quarter 2020 unaudited Report to Shareholders presenting information concerning the Company's results of operations and financial condition for the three months ended March 31, 2020 . Subsequent to the compilation of this report, the gain or loss on other investments has been reclassified from dividend income to noninterest income for both the March 31, 2020 and 2019 comparison periods. In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q. AFS: Available-for-sale MBS: Mortgage-backed security ALCO: Asset Liability Committee MSRs: Mortgage servicing rights ALL: Allowance for loan losses OAO: Other assets owned ASC: Accounting Standards Codification OCI: Other comprehensive income (loss) ASU: Accounting Standards Update OFAC: U.S. Office of Foreign Assets Control Board: Board of Directors OREO: Other real estate owned bp or bps: Basis point(s) OTTI: Other-than-temporary impairment Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OTT: Other-than-temporary CARES Act: Coronavirus Aid, Relief and Economic Security Act Plan: The Union Bank Pension Plan CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network PPP: Paycheck Protection Program Company: Union Bankshares, Inc. and Subsidiary PPPLF: PPP Liquidity Facility of the FRB COVID-19: Novel Coronavirus RD: USDA Rural Development DRIP: Dividend Reinvestment Plan RSU: Restricted Stock Unit FASB: Financial Accounting Standards Board SBA: U.S. Small Business Administration FDIC: Federal Deposit Insurance Corporation SEC: U.S. Securities and Exchange Commission FHA: U.S. Federal Housing Administration TDR: Troubled-debt restructuring FHLB: Federal Home Loan Bank of Boston Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FRB: Federal Reserve Board USDA: U.S. Department of Agriculture FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation VA: U.S. Veterans Administration GAAP: Generally Accepted Accounting Principles in the United States WHO: World Health Organization HTM: Held-to-maturity 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company HUD: U.S. Department of Housing and Urban Development 2014 Equity Plan: 2014 Equity Incentive Plan ICS: Insured Cash Sweeps of the Promontory Interfinancial Network 2019 Annual Report Annual Report of Form 10-K for the year ended December 31, 2019 IRS: Internal Revenue Service 2017 Tax Act: Tax Cut and Jobs Act of 2017 |
Risks and Uncertainties (Notes)
Risks and Uncertainties (Notes) | 3 Months Ended |
Mar. 31, 2020 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties [Text Block] | 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 fulfill their financial obligations to the Company. The WHO 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 significant 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 operating issues for the Company. Congress, the President, and the FRB have taken several actions designed to cushion the economic fallout. Most notably, the CARES Act was signed into law at the end of March 2020 as a $2 trillion legislative package. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors. The package also includes extensive emergency funding for small businesses, hospitals and health care providers. In addition to the general impact of COVID-19, certain provisions of the CARES Act as well as other recent legislative and regulatory relief efforts are expected to have a material impact on the Company’s operations in future periods. 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 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. Financial position and results of operations The Company’s fee income could be reduced due to COVID-19. In keeping with guidance from regulators, the Company is working with COVID-19 affected customers to waive a variety of fees, including but not limited to, insufficient funds and overdraft fees, ATM fees and account maintenance fees. These reductions in fees are thought, at this time, to be temporary, while the COVID-19 related economic crisis persists. At this time, the Company is unable to project the duration or materiality of such an impact, but recognizes that the scope of the economic impact is likely to impact its fee income in future periods. Also, the Company expects to collect fee income from the SBA for participating in the PPP and processing PPP loans, which will offset the above mentioned reduction in fee income. The Company’s interest income could be reduced due to COVID-19. In keeping with guidance from regulators, the Company is actively working with COVID-19 affected borrowers to defer their loan payments, interest, and fees. While interest and fees will still accrue to income, through normal GAAP accounting, should eventual credit losses on these deferred payments emerge, interest income and fees accrued would need to be reversed. In such a scenario, interest income in future periods could be negatively impacted. At this time, the Company is unable to project the materiality of such an impact, but recognizes the scope of the economic impact may affect its borrowers’ ability to repay in future periods. Capital and liquidity While the Company believes that it has sufficient capital to withstand an extended economic recession brought about by COVID-19, its reported and regulatory capital ratios could be adversely impacted by further credit losses. The Company relies on cash on hand as well as dividends from its subsidiary bank to pay dividends to shareholders. If the Company’s capital deteriorates such that its subsidiary bank is unable to pay dividends to it for an extended period of time, the Company may not be able to maintain its dividend to shareholders at the current level. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to the Company, but rates for short term funding have recently been volatile. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s deposit customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding. Asset valuation Currently, the Company does not expect COVID-19 to affect its ability to account timely for the assets on its balance sheet; however, this could change in future periods. While certain valuation assumptions and judgments will change to account for pandemic-related circumstances such as widening credit spreads, the Company does not anticipate significant changes in methodology used to determine the fair value of assets measured in accordance with GAAP. COVID-19 could cause a further and sustained decline in the Company’s stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause the Company to perform a goodwill impairment test and result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill is impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. It is possible that the lingering effects of COVID-19 could cause the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause the Company to perform an intangible asset impairment test and result in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its intangible assets are impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. Processes, controls and business continuity plan The Company has implemented its Pandemic and Business Continuity Plans to address the operating risks associated with the global COVID-19 pandemic and has followed guidance as events evolved from the Centers for Disease Control & Prevention (CDC), the WHO and other available resources. Since enacting the Pandemic and Business Continuity Plans, the Company has taken a series of actions to safeguard its employees and customers while continuing to provide essential banking services to its communities. The Company has developed and executed a plan to decentralize employees, including working remotely, to isolate certain personnel essential to critical business continuity operations, canceled business travel and outside vendor appointments, limited inter-branch visits, and increased the use of video conferencing to avoid large gatherings. Also, social distancing and enhanced hygiene practices were put into place as well as rigorous cleaning of all bank facilities. Throughout these changes, employees and customers have been kept informed with regular communications. On March 17, 2020, branch lobby service was limited to appointment-only, and new capabilities were implemented to execute lobby transactions electronically or via its drive-up facilities. Effective March 25, 2020, a "Stay Home, Stay Safe" emergency order issued in the State of Vermont resulted in branch lobbies being closed to all customers. Management continues to evaluate current events and put appropriate protocols in place to ensure the safety of staff and customers while continuing to provide essential banking services our customers rely on. No material operational or internal control challenges or risks related to COVID-19 have been identified to date. The Company does not anticipate significant challenges to its ability to maintain its systems and controls in light of the measures the Company has taken to prevent the spread of COVID-19. The Company does not currently face any material resource constraints through the implementation of its Pandemic and Business Continuity Plans. Lending operations and accommodations to borrowers In keeping with regulatory guidance to work with borrowers during this unprecedented situation and as outlined in the CARES Act, the Company is continuing to approve payment deferrals for its borrowers that are adversely affected by the pandemic. Depending on the demonstrated need of the customer, the Company is deferring either the full loan payment or the principal component of the loan payment for up to 180 days. As of April 30, 2020, the Company has executed 335 of these deferrals on outstanding loan balances of $160.5 million . In accordance with interagency guidance issued in March 2020 and confirmed by the FASB, these short term deferrals are not considered troubled debt restructurings. With the passage of the PPP, administered by the SBA, the Company is actively participating in assisting its customers with applications for resources through the program. PPP loans have a two -year term and earn interest at 1% . The Company believes that a significant amount of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. It is the Company’s understanding that loans funded through the PPP are fully guaranteed by the U.S. Government. Should those circumstances change, the Company could be required to establish additional allowance for credit loss through additional credit loss expense charged to earnings. Further, in sensitivity and service to its communities during this unprecedented time, the Company is waiving late payment and overdraft fees on a case by case basis and has temporarily suspended collection and foreclosure efforts on past due loans in accordance with CARES Act guidance. |
Legal Contingencies
Legal Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Matters and Contingencies Disclosure [Text Block] | Legal Contingencies In the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations. |
Per Share Information
Per Share Information | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Per Share Information Earnings per common share are computed based on the weighted average number of shares of common stock outstanding during the period and reduced for shares held in treasury. The assumed exercise of outstanding exercisable stock options and vesting of RSUs does not result in material dilution and is not included in the calculation. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. In October 2019, the FASB approved amendments to delay the effective date of the ASU to fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. As the Company is a smaller reporting company, the delay is applicable to the Company and the Company does not intend to early adopt the ASU at this time. The Company has established a CECL implementation team and developed a transition project plan. The Company has entered into an agreement with a software provider, historical data has been compiled and training on utilizing the software for the existing incurred loss model has been completed. The Company continues the collection of historical data and training is ongoing surrounding CECL implementation and methodologies, including the running of parallel calculations throughout the year. This will facilitate the eventual implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU was effective for the Company on January 1, 2020 and did not have a material effect on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This guidance, which is a part of the FASB’s disclosure framework project to improve disclosure effectiveness, eliminates certain disclosure requirements for fair value measurements regarding the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, an entity’s policy for the timing of transfers between levels of the fair value hierarchy and an entity’s valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for public entities regarding changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements, including how the weighted average is calculated. In addition, this guidance modifies certain requirements regarding the disclosure of transfers into and out of Level 3 of the fair value hierarchy, purchases and issuances of Level 3 assets and liabilities, and information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. This ASU was effective for the Company on January 1, 2020 and did not have a material impact on the Company's financial statement disclosures. In March 2020, various regulatory agencies, including the FRB and the FDIC (“the agencies”), issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC No. 310-40, Receivables – Troubled Debt Restructurings by Creditors , a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. This interagency guidance is expected to have a material impact on the Company’s financial statements; however, this impact cannot be quantified at this time. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million . The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also initially recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the core deposit base, absent any future impairment. The net core deposit intangible balance of $199 thousand and $242 thousand at March 31, 2020 and December 31, 2019 , respectively, is included in Other assets on the consolidated balance sheets. Management will evaluate the core deposit intangible for impairment if conditions warrant. Amortization expense for the core deposit intangible was $43 thousand for the three months ended March 31, 2020 and 2019 . The amortization expense is included in Other expenses on the consolidated statements of income and is deductible for tax purposes. As of March 31, 2020 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2020 $ 128 2021 71 Total $ 199 |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities AFS securities as of the balance sheet dates consisted of the following: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 5,050 $ 49 $ (42 ) $ 5,057 Agency mortgage-backed 46,212 1,881 (14 ) 48,079 State and political subdivisions 27,767 611 (39 ) 28,339 Corporate 7,808 304 (140 ) 7,972 Total $ 86,837 $ 2,845 $ (235 ) $ 89,447 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,349 $ 19 $ (76 ) $ 6,292 Agency mortgage-backed 45,503 602 (81 ) 46,024 State and political subdivisions 26,489 515 (39 ) 26,965 Corporate 7,804 378 (70 ) 8,112 Total $ 86,145 $ 1,514 $ (266 ) $ 87,393 There were no investment securities HTM at March 31, 2020 or December 31, 2019 . There were no investment securities pledged as collateral at March 31, 2020 or December 31, 2019 . The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of March 31, 2020 were as follows: Amortized Cost Fair Value Available-for-sale (Dollars in thousands) Due in one year or less $ 940 $ 947 Due from one to five years 3,679 3,784 Due from five to ten years 14,136 14,406 Due after ten years 21,870 22,231 40,625 41,368 Agency mortgage-backed 46,212 48,079 Total debt securities available-for-sale $ 86,837 $ 89,447 Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities usually differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and are not included in the contractual maturity categories in the above maturity summary. Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: March 31, 2020 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 2 $ 1,112 $ (3 ) 7 $ 1,614 $ (39 ) 9 $ 2,726 $ (42 ) Agency mortgage-backed — — — 1 703 (14 ) 1 703 (14 ) State and political subdivisions 10 4,923 (39 ) — — — 10 4,923 (39 ) Corporate 1 497 (3 ) 3 1,363 (137 ) 4 1,860 (140 ) Total 13 $ 6,532 $ (45 ) 11 $ 3,680 $ (190 ) 24 $ 10,212 $ (235 ) December 31, 2019 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 4 $ 2,376 $ (22 ) 8 $ 2,772 $ (54 ) 12 $ 5,148 $ (76 ) Agency mortgage-backed 8 6,193 (38 ) 8 4,861 (43 ) 16 11,054 (81 ) State and political subdivisions 9 3,813 (38 ) 1 304 (1 ) 10 4,117 (39 ) Corporate — — — 3 1,430 (70 ) 3 1,430 (70 ) Total 21 $ 12,382 $ (98 ) 20 $ 9,367 $ (168 ) 41 $ 21,749 $ (266 ) The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. The Company has the ability to hold the investment securities that had unrealized losses at March 31, 2020 and December 31, 2019 for the foreseeable future and no declines were deemed by management to be OTT. The following table presents the proceeds, gross realized gains and gross realized losses from the sales of AFS securities: For The Three Months Ended March 31, 2020 For The Three Months Ended March 31, 2019 (Dollars in thousands) Proceeds $ 3,076 $ 6,510 Gross gains 32 38 Gross losses (21 ) (34 ) Net gains on sales of investment securities AFS $ 11 $ 4 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivables [Text Block] | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. The composition of Net loans as of the balance sheet dates was as follows: March 31, December 31, (Dollars in thousands) Residential real estate $ 190,420 $ 192,125 Construction real estate 54,207 69,617 Commercial real estate 304,204 289,883 Commercial 47,633 47,699 Consumer 3,460 3,562 Municipal 76,607 67,358 Gross loans 676,531 670,244 Allowance for loan losses (6,391 ) (6,122 ) Net deferred loan costs 1,056 1,043 Net loans $ 671,196 $ 665,165 Qualifying residential first mortgage loans and certain commercial real estate loans with a carrying value of $221.8 million and $207.7 million were pledged as collateral for borrowings from the FHLB under a blanket lien at March 31, 2020 and December 31, 2019 , respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: March 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 185,549 $ 3,305 $ 35 $ 1,233 $ 298 $ 190,420 Construction real estate 53,550 263 — 369 25 54,207 Commercial real estate 300,689 1,576 — 73 1,866 304,204 Commercial 47,541 29 — 45 18 47,633 Consumer 3,445 6 5 2 2 3,460 Municipal 76,571 36 — — — 76,607 Total $ 667,345 $ 5,215 $ 40 $ 1,722 $ 2,209 $ 676,531 December 31, 2019 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 187,022 $ 2,716 $ 1,304 $ 811 $ 272 $ 192,125 Construction real estate 68,731 470 19 368 29 69,617 Commercial real estate 286,795 940 150 — 1,998 289,883 Commercial 47,673 — 5 — 21 47,699 Consumer 3,532 21 6 — 3 3,562 Municipal 67,358 — — — — 67,358 Total $ 661,111 $ 4,147 $ 1,484 $ 1,179 $ 2,323 $ 670,244 There was one residential real estate loan totaling $50 thousand in process of foreclosure at March 31, 2020 and two residential real estate loans totaling $64 thousand in process of foreclosure at December 31, 2019 . In April 2020, the State of Vermont issued a temporary moratorium on foreclosure actions until the end of the COVID-19 emergency period. Aggregate interest on nonaccrual loans not recognized was $280 thousand as of March 31, 2020 and $271 thousand as of December 31, 2019 . |
Allowance for loan losses and c
Allowance for loan losses and credit quality | 3 Months Ended |
Mar. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Allowance for Credit Losses [Text Block] | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the first quarter of 2020 . While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan. Changes in the ALL, by class of loans, for the three months ended March 31, 2020 and 2019 were as follows: For The Three Months Ended March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2019 $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 Provision (credit) for loan losses 98 (152 ) 335 13 — 9 (3 ) 300 Recoveries of amounts charged off 23 — — — — — — 23 1,513 622 3,513 407 23 85 282 6,445 Amounts charged off — — (54 ) — — — — (54 ) Balance, March 31, 2020 $ 1,513 $ 622 $ 3,459 $ 407 $ 23 $ 85 $ 282 $ 6,391 For The Three Months Ended March 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2018 $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 Provision (credit) for loan losses 37 26 (70 ) 177 2 10 (132 ) 50 Recoveries of amounts charged off — — — 1 3 — — 4 1,405 643 2,863 532 28 92 230 5,793 Amounts charged off (16 ) — — (200 ) (5 ) — — (221 ) Balance, March 31, 2019 $ 1,389 $ 643 $ 2,863 $ 332 $ 23 $ 92 $ 230 $ 5,572 The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 68 $ — $ 133 $ 7 $ — $ — $ — $ 208 Collectively evaluated for impairment 1,445 622 3,326 400 23 85 282 6,183 Total allocated $ 1,513 $ 622 $ 3,459 $ 407 $ 23 $ 85 $ 282 $ 6,391 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 39 $ — $ 149 $ 8 $ — $ — $ — $ 196 Collectively evaluated for impairment 1,353 774 3,029 386 23 76 285 5,926 Total allocated $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,488 $ 218 $ 3,158 $ 280 $ — $ — $ 5,144 Collectively evaluated for impairment 188,932 53,989 301,046 47,353 3,460 76,607 671,387 Total $ 190,420 $ 54,207 $ 304,204 $ 47,633 $ 3,460 $ 76,607 $ 676,531 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,515 $ 223 $ 3,204 $ 299 $ — $ — $ 5,241 Collectively evaluated for impairment 190,610 69,394 286,679 47,400 3,562 67,358 665,003 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise those loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4/M Rating - Satisfactory/Monitor Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list. 5-7 Rating - Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate. The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates: March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 172,425 $ 33,632 $ 174,365 $ 35,464 $ 3,364 $ 76,607 $ 495,857 Satisfactory/Monitor 15,078 20,091 125,767 11,595 91 — 172,622 Substandard 2,917 484 4,072 574 5 — 8,052 Total $ 190,420 $ 54,207 $ 304,204 $ 47,633 $ 3,460 $ 76,607 $ 676,531 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 174,798 $ 47,326 $ 168,654 $ 35,625 $ 3,499 $ 67,358 $ 497,260 Satisfactory/Monitor 14,520 21,819 117,004 10,974 57 — 164,374 Substandard 2,807 472 4,225 1,100 6 — 8,610 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 The following tables provide information with respect to impaired loans by class of loan as of and for the three months ended March 31, 2020 and March 31, 2019 : As of March 31, 2020 For The Three Months Ended March 31, 2020 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 216 $ 226 $ 68 Commercial real estate 1,746 1,781 133 Commercial 25 27 7 With an allowance recorded 1,987 2,034 208 Residential real estate 1,272 1,818 — Construction real estate 218 237 — Commercial real estate 1,412 1,509 — Commercial 255 257 — With no allowance recorded 3,157 3,821 — Residential real estate 1,488 2,044 68 $ 1,502 $ 19 Construction real estate 218 237 — 220 1 Commercial real estate 3,158 3,290 133 3,181 22 Commercial 280 284 7 290 7 Total $ 5,144 $ 5,855 $ 208 $ 5,193 $ 49 ____________________ (1) Does not reflect government guaranties on impaired loans as of March 31, 2020 totaling $570 thousand . As of March 31, 2019 For The Three Months Ended March 31, 2019 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 1,720 $ 2,344 $ 46 $ 1,699 $ 19 Construction real estate 114 131 — 116 1 Commercial real estate 1,669 1,761 11 1,973 40 Commercial 340 342 10 346 5 Total $ 3,843 $ 4,578 $ 67 $ 4,134 $ 65 ____________________ (1) Does not reflect government guaranties on impaired loans as of March 31, 2019 totaling $630 thousand . The following table provides information with respect to impaired loans by class of loan as of December 31, 2019 : December 31, 2019 Recorded Investment (1) Principal Balance (1) Related Allowance (Dollars in thousands) Residential real estate $ 218 $ 228 $ 39 Commercial real estate 1,762 1,783 149 Commercial 11 12 8 With an allowance recorded 1,991 2,023 196 Residential real estate 1,297 1,832 — Construction real estate 223 241 — Commercial real estate 1,442 1,539 — Commercial 288 290 — With no allowance recorded 3,250 3,902 — Residential real estate 1,515 2,060 39 Construction real estate 223 241 — Commercial real estate 3,204 3,322 149 Commercial 299 302 8 Total $ 5,241 $ 5,925 $ 196 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2019 totaling $587 thousand . The following is a summary of TDR loans by class of loan as of the balance sheet dates: March 31, 2020 December 31, 2019 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 25 $ 1,488 25 $ 1,515 Construction real estate 2 96 2 100 Commercial real estate 8 950 8 966 Commercial 5 271 5 290 Total 40 $ 2,805 40 $ 2,871 The TDR loans above represent loan modifications in which a concession was provided to the borrower, including due date extensions, maturity date extensions, interest rate reductions or the forgiveness of accrued interest. Troubled loans that are restructured and meet established thresholds are classified as impaired and a specific reserve amount is allocated to the ALL on the basis of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The following tables provide new TDR activity for the three months ended March 31, 2020 and 2019 : New TDRs During the New TDRs During the Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate — $ — $ — 1 $ 77 $ 79 There were no TDR loans modified within the previous twelve months that subsequently defaulted during the three months ended March 31, 2020 or 2019 . TDR loans are considered defaulted at 90 days past due. In March 2020, the federal banking agencies issued guidance, confirmed by the FASB, that certain modifications made in loans to a borrower affected by the COVID-19 pandemic and government shutdown orders would not be considered a TDR under specified circumstances (See Note 2). As of April 30, 2020, the Company has executed 335 of these modifications on outstanding loan balances of $160.5 million . The Company intends to continue to follow the guidance of the banking regulators in making TDR determinations. At March 31, 2020 and December 31, 2019 , the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock Based Compensation Under the Union Bankshares, Inc. 2014 Equity Incentive Plan, 50,000 shares of the Company’s common stock were reserved for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of March 31, 2020 , there were outstanding grants of RSUs and incentive stock options under the 2014 Equity Plan with respect to an aggregate of 15,971 shares of common stock. RSUs. Each outstanding RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The general terms of the awards are described in the Company's 2019 Annual Report. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table summarizes the RSUs awarded to Company executives in 2018, 2019 and 2020, and the number of such RSUs remaining unvested as of March 31, 2020 : Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2018 Award 3,225 $ 52.95 433 2019 Award 3,734 47.75 2,120 2020 Award 8,918 $ 36.26 8,918 Total 15,877 11,471 Unrecognized compensation expense related to the unvested RSUs as of March 31, 2020 and 2019 was $167 thousand and $254 thousand , respectively. On April 15, 2020, the Compensation Committee adopted criteria for provisional 2021 RSU awards, including performance goals, with one half of the 2021 grants to be in the form of Time-Based RSUs and one-half in the form of Performance-Based RSUs. Under the 2021 award criteria and solely for modeling purposes, assuming achievement of 2020 performance goals at the target level and assuming a stock price of $25.76 per share (the closing price on April 15, 2020), approximately 15,751 RSUs would be granted in 2021. However, actual awards will be subject to Compensation Committee approval and made in the first quarter of 2021, with the number of RSUs actually granted to be determined based on the Company’s stock price on the 2021 approval date, and in the case of Performance-Based RSUs, also on the level of achievement of 2020 performance goals. The number of potential grantees for 2021 RSU awards is 15 , compared to seven grantees in 2020 and prior years. As of March 31, 2020 , the estimated unrecognized executive compensation expense related to the modeled 2021 target level RSU grants, based on the April 15, 2020 closing market price of the Company's stock, would be $294 thousand . On May 15, 2019, the Company's board of directors, as a component of total director compensation, granted an aggregate of 1,185 RSUs to the Company's non-employee directors. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The RSUs will vest on May 19, 2020, subject to continued board service through the vesting date, other than in the case of the director's death or disability. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. Unrecognized director compensation expense related to the unvested RSUs as of March 31, 2020 was $7 thousand . Stock options. As of March 31, 2020 , 4,500 incentive stock options granted in December 2014 under the 2014 Equity Plan remained outstanding and exercisable and will expire in December 2021. There was no unrecognized compensation expense related to those options as of March 31, 2020 . The intrinsic value of those options was $0 due to the stock options not being in the money as of March 31, 2020 . During the quarter ended March 31, 2020 , 1,000 incentive stock options granted under the 2008 ISO Plan were exercised. There are no remaining options outstanding under the 2008 ISO Plan. There was no unrecognized compensation expense related to those options as of March 31, 2020 . |
Other Comprehensive Income
Other Comprehensive Income | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive Income Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. As of the balance sheet dates, the components of Accumulated OCI, net of tax, were: March 31, 2020 December 31, 2019 (Dollars in thousands) Net unrealized gain on investment securities available-for-sale $ 2,061 $ 986 The following tables disclose the tax effects allocated to each component of OCI for the three months ended March 31 : Three Months Ended March 31, 2020 March 31, 2019 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Investment securities available-for-sale: (Dollars in thousands) Net unrealized holding gains arising during the period on investment securities available-for-sale $ 1,372 $ (288 ) $ 1,084 $ 1,194 $ (251 ) $ 943 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (11 ) 2 (9 ) (4 ) 1 (3 ) Total other comprehensive income $ 1,361 $ (286 ) $ 1,075 $ 1,190 $ (250 ) $ 940 The following table discloses information concerning reclassification adjustments from OCI for the three months ended March 31, 2020 and 2019 : Three Months Ended Reclassification Adjustment Description March 31, 2020 March 31, 2019 Affected Line Item in Consolidated Statement of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (11 ) $ (4 ) Net gains on sales of investment securities available-for-sale Tax expense 2 1 Provision for income taxes Total reclassifications $ (9 ) $ (3 ) Net income |
Fair Value Measurement
Fair Value Measurement | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS : The Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds : Mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. Assets measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2020: (Dollars in thousands) Debt securities AFS: U.S. Government-sponsored enterprises $ 5,057 $ — $ 5,057 $ — Agency mortgage-backed 48,079 — 48,079 — State and political subdivisions 28,339 — 28,339 — Corporate 7,972 — 7,972 — Total debt securities $ 89,447 $ — $ 89,447 $ — Other investments: Mutual funds $ 581 $ 581 $ — $ — December 31, 2019: Debt securities AFS: U.S. Government-sponsored enterprises $ 6,292 $ — $ 6,292 $ — Agency mortgage-backed 46,024 — 46,024 — State and political subdivisions 26,965 — 26,965 — Corporate 8,112 — 8,112 — Total debt securities $ 87,393 $ — $ 87,393 $ — Other investments: Mutual funds $ 690 $ 690 $ — $ — There were no transfers in or out of Levels 1 and 2 during the three months ended March 31, 2020 and 2019 , nor were there any Level 3 assets at any time during either period. Certain other assets and liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis in periods after initial recognition, such as collateral-dependent impaired loans, MSRs and OREO, were not considered material at March 31, 2020 or December 31, 2019 . The Company has not elected to apply the fair value method to any financial assets or liabilities other than those situations where other accounting pronouncements require fair value measurements. FASB ASC Topic 825 , Financial Instruments, requires disclosure of the estimated fair value of financial instruments. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Management’s estimates and assumptions are inherently subjective and involve uncertainties and matters of significant judgment. Changes in assumptions could dramatically affect the estimated fair values. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments may be excluded from disclosure requirements. Thus, the aggregate fair value amounts presented may not necessarily represent the actual underlying fair value of such instruments of the Company. As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: March 31, 2020 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 41,712 $ 41,712 $ 41,712 $ — $ — Interest bearing deposits in banks 6,067 6,247 — 6,247 — Investment securities 90,028 90,028 581 89,447 — Loans held for sale 16,456 16,887 — 16,887 — Loans, net Residential real estate 189,204 191,802 — — 191,802 Construction real estate 53,670 53,172 — — 53,172 Commercial real estate 300,938 302,181 — — 302,181 Commercial 47,300 46,065 — — 46,065 Consumer 3,442 3,395 — — 3,395 Municipal 76,642 75,345 — — 75,345 Accrued interest receivable 2,702 2,702 — 443 2,259 Nonmarketable equity securities 3,205 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 139,963 $ 139,963 $ 139,963 $ — $ — Interest bearing 449,943 449,943 449,943 — — Time 146,154 147,443 — 147,443 — Borrowed funds Short-term 55,000 55,031 — 55,031 — Long-term 7,164 7,155 — 7,155 — Accrued interest payable 204 204 — 204 — December 31, 2019 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 51,134 $ 51,134 $ 51,134 $ — $ — Interest bearing deposits in banks 6,565 6,671 — 6,671 — Investment securities 88,083 88,083 690 87,393 — Loans held for sale 7,442 7,587 — 7,587 — Loans, net Residential real estate 191,032 192,955 — — 192,955 Construction real estate 68,951 68,381 — — 68,381 Commercial real estate 286,871 288,931 — — 288,931 Commercial 47,379 45,872 — — 45,872 Consumer 3,545 3,483 — — 3,483 Municipal 67,387 67,103 — — 67,103 Accrued interest receivable 2,702 2,702 — 435 2,267 Nonmarketable equity securities 2,607 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 136,434 $ 136,434 $ 136,434 $ — $ — Interest bearing 458,940 458,940 458,940 — — Time 148,653 148,542 — 148,542 — Borrowed funds Short-term 40,000 40,000 40,000 — — Long-term 7,164 7,416 — 7,416 — Accrued interest payable 673 673 — 673 — The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. |
Subsequent Events
Subsequent Events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Subsequent events represent events or transactions occurring after the balance sheet date but before the financial statements are issued. Financial statements are considered “issued” when they are widely distributed to shareholders and others for general use and reliance in a form and format that complies with GAAP. Events occurring subsequent to March 31, 2020 have been evaluated as to their potential impact to the consolidated financial statements. On April 3, 2020, Union began its participation in the PPP initiated by the SBA as part of the CARES Act. As of April 30, 2020, Union had submitted and received approval for 626 applications in excess of $66.7 million in PPP loans. The PPP loans are required to be closed and disbursed to the borrowers within 10 calendar days of receiving approval from the SBA. The interest rate on the PPP loans is 1.0% with a maximum maturity date of two years from disbursement. Borrowers receiving PPP loans are granted a six month deferment period where no payments are expected, however, interest will continue to accrue during the deferment period. The PPP loans are unsecured and 100% guaranteed by the SBA. The CARES Act permits forgiveness of PPP loans in whole or in part if certain spending criteria are met and certified by the borrower, with the forgiven portion repaid to Union under the SBA guarantee. The amount of principal and interest owed by Union's borrowers that will be forgiven is unknown at this time. Union will collect an origination fee from the SBA for processing PPP loans. The gross amount of fees expected to be collected is approximately $2.4 million with respect to PPP loans approved through April 30, 2020, which will be recognized in interest and fees on loans over the term of the individual loan or at the time of forgiveness. Additionally, on April 9, 2020, the FRB authorized the PPPLF which is intended to facilitate lending by eligible borrowers, such as Union, to small businesses under the PPP. Under the PPPLF, the Federal Reserve Banks will lend to eligible banks and other PPP lenders on a non-recourse basis, taking PPP loans (including purchased loans) as collateral. The maturity date of an extension of credit under the PPPLF will be the maturity date of the PPP loans pledged to secure the extension of credit. The maturity date of the PPPLF's extension of credit will be accelerated if the underlying PPP loan goes into default and the PPP loan is sold to the SBA to collect on the SBA guarantee. The maturity date of the PPPLF's extension of credit also will be accelerated to the extent any loan forgiveness reimbursement is received from the SBA. There are no fees associated with extensions of credit under the PPPLF and advances will bear an interest rate of 0.35% . Union has been approved by the Federal Reserve Bank of Boston to participate in the PPPLF and, as of April 30, 2020, had an outstanding advance in the amount of $2.3 million . Available borrowing capacity through the PPPLF will be determined based on the principal amount of the PPP loans pledged to the facility. Also, in April, Union pledged $42.5 million of qualifying investment securities to the Federal Reserve Bank of Boston to access borrowing capacity at the discount window. On April 15, 2020 , the Company declared a regular quarterly cash dividend of $0.32 per share, payable May 7, 2020 , to stockholders of record on April 27, 2020 . |
Basis of Presentation Accountin
Basis of Presentation Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of financial statement presentation [Policy Text Block] | The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of March 31, 2020 , and for the three months ended March 31, 2020 and 2019 , have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 ( 2019 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2019 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2020 , or any future interim period. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its consolidated statements of income, comprehensive income, cash flows and changes in stockholder’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this report, as permitted for smaller reporting companies. Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. |
Earnings per common share [Policy Text Block] | Earnings per common share are computed based on the weighted average number of shares of common stock outstanding during the period and reduced for shares held in treasury. The assumed exercise of outstanding exercisable stock options and vesting of RSUs does not result in material dilution and is not included in the calculation. |
Recent accounting pronouncements [Policy Text Block] | In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. In October 2019, the FASB approved amendments to delay the effective date of the ASU to fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. As the Company is a smaller reporting company, the delay is applicable to the Company and the Company does not intend to early adopt the ASU at this time. The Company has established a CECL implementation team and developed a transition project plan. The Company has entered into an agreement with a software provider, historical data has been compiled and training on utilizing the software for the existing incurred loss model has been completed. The Company continues the collection of historical data and training is ongoing surrounding CECL implementation and methodologies, including the running of parallel calculations throughout the year. This will facilitate the eventual implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU was effective for the Company on January 1, 2020 and did not have a material effect on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This guidance, which is a part of the FASB’s disclosure framework project to improve disclosure effectiveness, eliminates certain disclosure requirements for fair value measurements regarding the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, an entity’s policy for the timing of transfers between levels of the fair value hierarchy and an entity’s valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for public entities regarding changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements of instruments held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements, including how the weighted average is calculated. In addition, this guidance modifies certain requirements regarding the disclosure of transfers into and out of Level 3 of the fair value hierarchy, purchases and issuances of Level 3 assets and liabilities, and information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. This ASU was effective for the Company on January 1, 2020 and did not have a material impact on the Company's financial statement disclosures. In March 2020, various regulatory agencies, including the FRB and the FDIC (“the agencies”), issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC No. 310-40, Receivables – Troubled Debt Restructurings by Creditors , a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. This interagency guidance is expected to have a material impact on the Company’s financial statements; however, this impact cannot be quantified at this time. |
Intangible assets [Policy Text Block] | As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million . The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also initially recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the core deposit base, absent any future impairment. The net core deposit intangible balance of $199 thousand and $242 thousand at March 31, 2020 and December 31, 2019 , respectively, is included in Other assets on the consolidated balance sheets. Management will evaluate the core deposit intangible for impairment if conditions warrant. |
Investment securities [Policy Text Block] | The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. |
Loans [Policy Text Block] | Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. |
Allowance for loan losses [Policy Text Block] | The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the first quarter of 2020 . While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. |
Comprehensive income (loss) [Policy Text Block] | Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Fair value measurements [Policy Text Block] | The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets, Future Amortization Expense [Table Text Block] | As of March 31, 2020 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2020 $ 128 2021 71 Total $ 199 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | AFS securities as of the balance sheet dates consisted of the following: March 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 5,050 $ 49 $ (42 ) $ 5,057 Agency mortgage-backed 46,212 1,881 (14 ) 48,079 State and political subdivisions 27,767 611 (39 ) 28,339 Corporate 7,808 304 (140 ) 7,972 Total $ 86,837 $ 2,845 $ (235 ) $ 89,447 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,349 $ 19 $ (76 ) $ 6,292 Agency mortgage-backed 45,503 602 (81 ) 46,024 State and political subdivisions 26,489 515 (39 ) 26,965 Corporate 7,804 378 (70 ) 8,112 Total $ 86,145 $ 1,514 $ (266 ) $ 87,393 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of March 31, 2020 were as follows: Amortized Cost Fair Value Available-for-sale (Dollars in thousands) Due in one year or less $ 940 $ 947 Due from one to five years 3,679 3,784 Due from five to ten years 14,136 14,406 Due after ten years 21,870 22,231 40,625 41,368 Agency mortgage-backed 46,212 48,079 Total debt securities available-for-sale $ 86,837 $ 89,447 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: March 31, 2020 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 2 $ 1,112 $ (3 ) 7 $ 1,614 $ (39 ) 9 $ 2,726 $ (42 ) Agency mortgage-backed — — — 1 703 (14 ) 1 703 (14 ) State and political subdivisions 10 4,923 (39 ) — — — 10 4,923 (39 ) Corporate 1 497 (3 ) 3 1,363 (137 ) 4 1,860 (140 ) Total 13 $ 6,532 $ (45 ) 11 $ 3,680 $ (190 ) 24 $ 10,212 $ (235 ) December 31, 2019 Less Than 12 Months 12 Months and over Total Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses Number of Securities Fair Value Gross Unrealized Losses (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 4 $ 2,376 $ (22 ) 8 $ 2,772 $ (54 ) 12 $ 5,148 $ (76 ) Agency mortgage-backed 8 6,193 (38 ) 8 4,861 (43 ) 16 11,054 (81 ) State and political subdivisions 9 3,813 (38 ) 1 304 (1 ) 10 4,117 (39 ) Corporate — — — 3 1,430 (70 ) 3 1,430 (70 ) Total 21 $ 12,382 $ (98 ) 20 $ 9,367 $ (168 ) 41 $ 21,749 $ (266 ) |
Schedule of Realized Gain (Loss) [Table Text Block] | The following table presents the proceeds, gross realized gains and gross realized losses from the sales of AFS securities: For The Three Months Ended March 31, 2020 For The Three Months Ended March 31, 2019 (Dollars in thousands) Proceeds $ 3,076 $ 6,510 Gross gains 32 38 Gross losses (21 ) (34 ) Net gains on sales of investment securities AFS $ 11 $ 4 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Composition of Net Loans [Table Text Block] | The composition of Net loans as of the balance sheet dates was as follows: March 31, December 31, (Dollars in thousands) Residential real estate $ 190,420 $ 192,125 Construction real estate 54,207 69,617 Commercial real estate 304,204 289,883 Commercial 47,633 47,699 Consumer 3,460 3,562 Municipal 76,607 67,358 Gross loans 676,531 670,244 Allowance for loan losses (6,391 ) (6,122 ) Net deferred loan costs 1,056 1,043 Net loans $ 671,196 $ 665,165 |
Financing Receivable, Past Due [Table Text Block] | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: March 31, 2020 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 185,549 $ 3,305 $ 35 $ 1,233 $ 298 $ 190,420 Construction real estate 53,550 263 — 369 25 54,207 Commercial real estate 300,689 1,576 — 73 1,866 304,204 Commercial 47,541 29 — 45 18 47,633 Consumer 3,445 6 5 2 2 3,460 Municipal 76,571 36 — — — 76,607 Total $ 667,345 $ 5,215 $ 40 $ 1,722 $ 2,209 $ 676,531 December 31, 2019 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 187,022 $ 2,716 $ 1,304 $ 811 $ 272 $ 192,125 Construction real estate 68,731 470 19 368 29 69,617 Commercial real estate 286,795 940 150 — 1,998 289,883 Commercial 47,673 — 5 — 21 47,699 Consumer 3,532 21 6 — 3 3,562 Municipal 67,358 — — — — 67,358 Total $ 661,111 $ 4,147 $ 1,484 $ 1,179 $ 2,323 $ 670,244 |
Allowance for loan losses and_2
Allowance for loan losses and credit quality (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounts, Notes, Loans and Financing Receivable, Gross, Allowance, and Net [Abstract] | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Changes in the ALL, by class of loans, for the three months ended March 31, 2020 and 2019 were as follows: For The Three Months Ended March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2019 $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 Provision (credit) for loan losses 98 (152 ) 335 13 — 9 (3 ) 300 Recoveries of amounts charged off 23 — — — — — — 23 1,513 622 3,513 407 23 85 282 6,445 Amounts charged off — — (54 ) — — — — (54 ) Balance, March 31, 2020 $ 1,513 $ 622 $ 3,459 $ 407 $ 23 $ 85 $ 282 $ 6,391 For The Three Months Ended March 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2018 $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 Provision (credit) for loan losses 37 26 (70 ) 177 2 10 (132 ) 50 Recoveries of amounts charged off — — — 1 3 — — 4 1,405 643 2,863 532 28 92 230 5,793 Amounts charged off (16 ) — — (200 ) (5 ) — — (221 ) Balance, March 31, 2019 $ 1,389 $ 643 $ 2,863 $ 332 $ 23 $ 92 $ 230 $ 5,572 |
Allocation of Allowance for Loan Losses by Impairment Methodology [Table Text Block] | The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 68 $ — $ 133 $ 7 $ — $ — $ — $ 208 Collectively evaluated for impairment 1,445 622 3,326 400 23 85 282 6,183 Total allocated $ 1,513 $ 622 $ 3,459 $ 407 $ 23 $ 85 $ 282 $ 6,391 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 39 $ — $ 149 $ 8 $ — $ — $ — $ 196 Collectively evaluated for impairment 1,353 774 3,029 386 23 76 285 5,926 Total allocated $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 |
Allocation of Investment in Loans by Impairment Methodology [Table Text Block] | The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,488 $ 218 $ 3,158 $ 280 $ — $ — $ 5,144 Collectively evaluated for impairment 188,932 53,989 301,046 47,353 3,460 76,607 671,387 Total $ 190,420 $ 54,207 $ 304,204 $ 47,633 $ 3,460 $ 76,607 $ 676,531 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,515 $ 223 $ 3,204 $ 299 $ — $ — $ 5,241 Collectively evaluated for impairment 190,610 69,394 286,679 47,400 3,562 67,358 665,003 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates: March 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 172,425 $ 33,632 $ 174,365 $ 35,464 $ 3,364 $ 76,607 $ 495,857 Satisfactory/Monitor 15,078 20,091 125,767 11,595 91 — 172,622 Substandard 2,917 484 4,072 574 5 — 8,052 Total $ 190,420 $ 54,207 $ 304,204 $ 47,633 $ 3,460 $ 76,607 $ 676,531 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 174,798 $ 47,326 $ 168,654 $ 35,625 $ 3,499 $ 67,358 $ 497,260 Satisfactory/Monitor 14,520 21,819 117,004 10,974 57 — 164,374 Substandard 2,807 472 4,225 1,100 6 — 8,610 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 |
Impaired Financing Receivables [Table Text Block] | The following tables provide information with respect to impaired loans by class of loan as of and for the three months ended March 31, 2020 and March 31, 2019 : As of March 31, 2020 For The Three Months Ended March 31, 2020 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 216 $ 226 $ 68 Commercial real estate 1,746 1,781 133 Commercial 25 27 7 With an allowance recorded 1,987 2,034 208 Residential real estate 1,272 1,818 — Construction real estate 218 237 — Commercial real estate 1,412 1,509 — Commercial 255 257 — With no allowance recorded 3,157 3,821 — Residential real estate 1,488 2,044 68 $ 1,502 $ 19 Construction real estate 218 237 — 220 1 Commercial real estate 3,158 3,290 133 3,181 22 Commercial 280 284 7 290 7 Total $ 5,144 $ 5,855 $ 208 $ 5,193 $ 49 ____________________ (1) Does not reflect government guaranties on impaired loans as of March 31, 2020 totaling $570 thousand . As of March 31, 2019 For The Three Months Ended March 31, 2019 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 1,720 $ 2,344 $ 46 $ 1,699 $ 19 Construction real estate 114 131 — 116 1 Commercial real estate 1,669 1,761 11 1,973 40 Commercial 340 342 10 346 5 Total $ 3,843 $ 4,578 $ 67 $ 4,134 $ 65 ____________________ (1) Does not reflect government guaranties on impaired loans as of March 31, 2019 totaling $630 thousand . The following table provides information with respect to impaired loans by class of loan as of December 31, 2019 : December 31, 2019 Recorded Investment (1) Principal Balance (1) Related Allowance (Dollars in thousands) Residential real estate $ 218 $ 228 $ 39 Commercial real estate 1,762 1,783 149 Commercial 11 12 8 With an allowance recorded 1,991 2,023 196 Residential real estate 1,297 1,832 — Construction real estate 223 241 — Commercial real estate 1,442 1,539 — Commercial 288 290 — With no allowance recorded 3,250 3,902 — Residential real estate 1,515 2,060 39 Construction real estate 223 241 — Commercial real estate 3,204 3,322 149 Commercial 299 302 8 Total $ 5,241 $ 5,925 $ 196 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2019 totaling $587 thousand . |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | The following is a summary of TDR loans by class of loan as of the balance sheet dates: March 31, 2020 December 31, 2019 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 25 $ 1,488 25 $ 1,515 Construction real estate 2 96 2 100 Commercial real estate 8 950 8 966 Commercial 5 271 5 290 Total 40 $ 2,805 40 $ 2,871 |
New Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following tables provide new TDR activity for the three months ended March 31, 2020 and 2019 : New TDRs During the New TDRs During the Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate — $ — $ — 1 $ 77 $ 79 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | The following table summarizes the RSUs awarded to Company executives in 2018, 2019 and 2020, and the number of such RSUs remaining unvested as of March 31, 2020 : Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2018 Award 3,225 $ 52.95 433 2019 Award 3,734 47.75 2,120 2020 Award 8,918 $ 36.26 8,918 Total 15,877 11,471 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | As of the balance sheet dates, the components of Accumulated OCI, net of tax, were: March 31, 2020 December 31, 2019 (Dollars in thousands) Net unrealized gain on investment securities available-for-sale $ 2,061 $ 986 |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The following tables disclose the tax effects allocated to each component of OCI for the three months ended March 31 : Three Months Ended March 31, 2020 March 31, 2019 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Investment securities available-for-sale: (Dollars in thousands) Net unrealized holding gains arising during the period on investment securities available-for-sale $ 1,372 $ (288 ) $ 1,084 $ 1,194 $ (251 ) $ 943 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (11 ) 2 (9 ) (4 ) 1 (3 ) Total other comprehensive income $ 1,361 $ (286 ) $ 1,075 $ 1,190 $ (250 ) $ 940 |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | The following table discloses information concerning reclassification adjustments from OCI for the three months ended March 31, 2020 and 2019 : Three Months Ended Reclassification Adjustment Description March 31, 2020 March 31, 2019 Affected Line Item in Consolidated Statement of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (11 ) $ (4 ) Net gains on sales of investment securities available-for-sale Tax expense 2 1 Provision for income taxes Total reclassifications $ (9 ) $ (3 ) Net income |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets measured at fair value on a recurring basis at March 31, 2020 and December 31, 2019 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) March 31, 2020: (Dollars in thousands) Debt securities AFS: U.S. Government-sponsored enterprises $ 5,057 $ — $ 5,057 $ — Agency mortgage-backed 48,079 — 48,079 — State and political subdivisions 28,339 — 28,339 — Corporate 7,972 — 7,972 — Total debt securities $ 89,447 $ — $ 89,447 $ — Other investments: Mutual funds $ 581 $ 581 $ — $ — December 31, 2019: Debt securities AFS: U.S. Government-sponsored enterprises $ 6,292 $ — $ 6,292 $ — Agency mortgage-backed 46,024 — 46,024 — State and political subdivisions 26,965 — 26,965 — Corporate 8,112 — 8,112 — Total debt securities $ 87,393 $ — $ 87,393 $ — Other investments: Mutual funds $ 690 $ 690 $ — $ — |
Fair Values and Carrying Amounts, Significant Financial Instruments [Table Text Block] | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: March 31, 2020 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 41,712 $ 41,712 $ 41,712 $ — $ — Interest bearing deposits in banks 6,067 6,247 — 6,247 — Investment securities 90,028 90,028 581 89,447 — Loans held for sale 16,456 16,887 — 16,887 — Loans, net Residential real estate 189,204 191,802 — — 191,802 Construction real estate 53,670 53,172 — — 53,172 Commercial real estate 300,938 302,181 — — 302,181 Commercial 47,300 46,065 — — 46,065 Consumer 3,442 3,395 — — 3,395 Municipal 76,642 75,345 — — 75,345 Accrued interest receivable 2,702 2,702 — 443 2,259 Nonmarketable equity securities 3,205 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 139,963 $ 139,963 $ 139,963 $ — $ — Interest bearing 449,943 449,943 449,943 — — Time 146,154 147,443 — 147,443 — Borrowed funds Short-term 55,000 55,031 — 55,031 — Long-term 7,164 7,155 — 7,155 — Accrued interest payable 204 204 — 204 — December 31, 2019 Fair Value Measurements Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 51,134 $ 51,134 $ 51,134 $ — $ — Interest bearing deposits in banks 6,565 6,671 — 6,671 — Investment securities 88,083 88,083 690 87,393 — Loans held for sale 7,442 7,587 — 7,587 — Loans, net Residential real estate 191,032 192,955 — — 192,955 Construction real estate 68,951 68,381 — — 68,381 Commercial real estate 286,871 288,931 — — 288,931 Commercial 47,379 45,872 — — 45,872 Consumer 3,545 3,483 — — 3,483 Municipal 67,387 67,103 — — 67,103 Accrued interest receivable 2,702 2,702 — 435 2,267 Nonmarketable equity securities 2,607 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 136,434 $ 136,434 $ 136,434 $ — $ — Interest bearing 458,940 458,940 458,940 — — Time 148,653 148,542 — 148,542 — Borrowed funds Short-term 40,000 40,000 40,000 — — Long-term 7,164 7,416 — 7,416 — Accrued interest payable 673 673 — 673 — |
Risks and Uncertainties Narratv
Risks and Uncertainties Narratvie Data (Details) | 3 Months Ended |
Mar. 31, 2020Rate | |
Risks and Uncertainties [Line Items] | |
Maximum term for payment deferrals | 180 days |
PPP loan term | 2 years |
PPP loan interest rate | 1.00% |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Core Deposit Intangible Amortization (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
2020 | $ 128 | |
2021 | 71 | |
Total | $ 199 | $ 242 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Narrative Data (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | May 27, 2011 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill at acquisition | $ 2,200 | |||
Core deposit intangible at acquisition | $ 1,700 | |||
Net core deposit intangible | $ 199 | $ 242 | ||
Amortization of core deposit intangible | $ 43 | $ 43 |
Investment Securities Available
Investment Securities Available-for-sale securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities | ||
Amortized Cost | $ 86,837 | $ 86,145 |
Gross Unrealized Gains | 2,845 | 1,514 |
Gross Unrealized Losses | (235) | (266) |
Fair Value | 89,447 | 87,393 |
US Government-sponsored enterprises [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 5,050 | 6,349 |
Gross Unrealized Gains | 49 | 19 |
Gross Unrealized Losses | (42) | (76) |
Fair Value | 5,057 | 6,292 |
Agency mortgage-backed [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 46,212 | 45,503 |
Gross Unrealized Gains | 1,881 | 602 |
Gross Unrealized Losses | (14) | (81) |
Fair Value | 48,079 | 46,024 |
State and political subdivisions [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 27,767 | 26,489 |
Gross Unrealized Gains | 611 | 515 |
Gross Unrealized Losses | (39) | (39) |
Fair Value | 28,339 | 26,965 |
Corporate [Member] | ||
Available-for-sale Securities | ||
Amortized Cost | 7,808 | 7,804 |
Gross Unrealized Gains | 304 | 378 |
Gross Unrealized Losses | (140) | (70) |
Fair Value | $ 7,972 | $ 8,112 |
Investment Securities Debt Secu
Investment Securities Debt Securities by Contactual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale Securities | ||
Due in one year or less, Amortized Cost | $ 940 | |
Due from one to five years, Amortized Cost | 3,679 | |
Due from five to ten years, Amortized Cost | 14,136 | |
Due after ten years, Amortized Cost | 21,870 | |
Debt securities with single maturity date, Amortized Cost | 40,625 | |
Agency mortgage-backed, Amortized Cost | 46,212 | |
Total debt securities available-for-sale, Amortized Cost | 86,837 | $ 86,145 |
Due in one year or less, Fair Value | 947 | |
Due from one to five years, Fair Value | 3,784 | |
Due from five to ten years, Fair Value | 14,406 | |
Due after ten years, Fair Value | 22,231 | |
Debt securities with single maturity date, Fair Value | 41,368 | |
Agency mortgage-backed, Fair Value | 48,079 | |
Total debt securities available-for-sale, Fair Value | $ 89,447 | $ 87,393 |
Investment Securities Schedule
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Mar. 31, 2020USD ($)Securities | Dec. 31, 2019USD ($)Securities |
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 13 | 21 |
Less than 12 Months, Fair Value | $ 6,532 | $ 12,382 |
Less than 12 Months, Gross Unrealized Losses | $ (45) | $ (98) |
12 Months and over, Number of Securities | Securities | 11 | 20 |
12 Months and over, Fair Value | $ 3,680 | $ 9,367 |
12 Months and over, Gross Unrealized Losses | $ (190) | $ (168) |
Total, Number of Securities | Securities | 24 | 41 |
Total, Fair Value | $ 10,212 | $ 21,749 |
Total, Gross Unrealized Losses | $ (235) | $ (266) |
US Government-sponsored enterprises [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 2 | 4 |
Less than 12 Months, Fair Value | $ 1,112 | $ 2,376 |
Less than 12 Months, Gross Unrealized Losses | $ (3) | $ (22) |
12 Months and over, Number of Securities | Securities | 7 | 8 |
12 Months and over, Fair Value | $ 1,614 | $ 2,772 |
12 Months and over, Gross Unrealized Losses | $ (39) | $ (54) |
Total, Number of Securities | Securities | 9 | 12 |
Total, Fair Value | $ 2,726 | $ 5,148 |
Total, Gross Unrealized Losses | $ (42) | $ (76) |
Agency mortgage-backed [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 0 | 8 |
Less than 12 Months, Fair Value | $ 0 | $ 6,193 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ (38) |
12 Months and over, Number of Securities | Securities | 1 | 8 |
12 Months and over, Fair Value | $ 703 | $ 4,861 |
12 Months and over, Gross Unrealized Losses | $ (14) | $ (43) |
Total, Number of Securities | Securities | 1 | 16 |
Total, Fair Value | $ 703 | $ 11,054 |
Total, Gross Unrealized Losses | $ (14) | $ (81) |
State and political subdivisions [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 10 | 9 |
Less than 12 Months, Fair Value | $ 4,923 | $ 3,813 |
Less than 12 Months, Gross Unrealized Losses | $ (39) | $ (38) |
12 Months and over, Number of Securities | Securities | 0 | 1 |
12 Months and over, Fair Value | $ 0 | $ 304 |
12 Months and over, Gross Unrealized Losses | $ 0 | $ (1) |
Total, Number of Securities | Securities | 10 | 10 |
Total, Fair Value | $ 4,923 | $ 4,117 |
Total, Gross Unrealized Losses | $ (39) | $ (39) |
Corporate [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 1 | 0 |
Less than 12 Months, Fair Value | $ 497 | $ 0 |
Less than 12 Months, Gross Unrealized Losses | $ (3) | $ 0 |
12 Months and over, Number of Securities | Securities | 3 | 3 |
12 Months and over, Fair Value | $ 1,363 | $ 1,430 |
12 Months and over, Gross Unrealized Losses | $ (137) | $ (70) |
Total, Number of Securities | Securities | 4 | 3 |
Total, Fair Value | $ 1,860 | $ 1,430 |
Total, Gross Unrealized Losses | $ (140) | $ (70) |
Investment Securities Schedul_2
Investment Securities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Available-for-sale Securities | ||
Proceeds | $ 3,076 | $ 6,510 |
Gross gains | 32 | 38 |
Gross losses | (21) | (34) |
Net gains on sales of investment securities AFS | $ 11 | $ 4 |
Investment Securities Narrative
Investment Securities Narrative Data (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investment Securities | ||
Investment securities HTM | $ 0 | $ 0 |
Investment securities pledged as collateral | 0 | 0 |
Other than temporary declines in investment securities | $ 0 | $ 0 |
Loans Composition of Net Loans
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | $ 676,531 | $ 670,244 | ||
Allowance for loan losses | (6,391) | (6,122) | $ (5,572) | $ (5,739) |
Net deferred loan costs | 1,056 | 1,043 | ||
Net loans | 671,196 | 665,165 | ||
Residential Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 190,420 | 192,125 | ||
Allowance for loan losses | (1,513) | (1,392) | (1,389) | (1,368) |
Construction Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 54,207 | 69,617 | ||
Allowance for loan losses | (622) | (774) | (643) | (617) |
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 304,204 | 289,883 | ||
Allowance for loan losses | (3,459) | (3,178) | (2,863) | (2,933) |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 47,633 | 47,699 | ||
Allowance for loan losses | (407) | (394) | (332) | (354) |
Consumer [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 3,460 | 3,562 | ||
Allowance for loan losses | (23) | (23) | (23) | (23) |
Municipal [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans | 76,607 | 67,358 | ||
Allowance for loan losses | $ (85) | $ (76) | $ (92) | $ (82) |
Loans Past Due Loans (Details)
Loans Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | $ 667,345 | $ 661,111 |
Loans, Nonaccrual | 2,209 | 2,323 |
Loans | 676,531 | 670,244 |
30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 5,215 | 4,147 |
60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 40 | 1,484 |
90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 1,722 | 1,179 |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 185,549 | 187,022 |
Loans, Nonaccrual | 298 | 272 |
Loans | 190,420 | 192,125 |
Residential Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 3,305 | 2,716 |
Residential Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 35 | 1,304 |
Residential Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 1,233 | 811 |
Construction Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 53,550 | 68,731 |
Loans, Nonaccrual | 25 | 29 |
Loans | 54,207 | 69,617 |
Construction Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 263 | 470 |
Construction Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 19 |
Construction Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 369 | 368 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 300,689 | 286,795 |
Loans, Nonaccrual | 1,866 | 1,998 |
Loans | 304,204 | 289,883 |
Commercial Real Estate [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 1,576 | 940 |
Commercial Real Estate [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 150 |
Commercial Real Estate [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 73 | 0 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 47,541 | 47,673 |
Loans, Nonaccrual | 18 | 21 |
Loans | 47,633 | 47,699 |
Commercial [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 29 | 0 |
Commercial [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 5 |
Commercial [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 45 | 0 |
Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 3,445 | 3,532 |
Loans, Nonaccrual | 2 | 3 |
Loans | 3,460 | 3,562 |
Consumer [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 6 | 21 |
Consumer [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 5 | 6 |
Consumer [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 2 | 0 |
Municipal [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 76,571 | 67,358 |
Loans, Nonaccrual | 0 | 0 |
Loans | 76,607 | 67,358 |
Municipal [Member] | 30 - 59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 36 | 0 |
Municipal [Member] | 60 - 89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 90 Days and Over and Accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | $ 0 | $ 0 |
Loans Narrative Data (Details)
Loans Narrative Data (Details) $ in Thousands | Mar. 31, 2020USD ($)loans | Dec. 31, 2019USD ($)loans |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Pledged as Collateral | $ 221,800 | $ 207,700 |
Number of residential real estate loans in process of foreclosure | loans | 1 | 2 |
Recorded investment in residential real estate loans in process of foreclosure | $ 50 | $ 64 |
Aggregate interest on nonaccrual loans not recognized | $ 280 | $ 271 |
Allowance for loan losses and_3
Allowance for loan losses and credit quality Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | $ 6,122 | $ 5,739 |
Provision (credit) for loan losses | 300 | 50 |
Recoveries of amounts charged off | 23 | 4 |
Balance, before amounts charged off | 6,445 | 5,793 |
Amounts charged off | (54) | (221) |
Balance, End of Period | 6,391 | 5,572 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 1,392 | 1,368 |
Provision (credit) for loan losses | 98 | 37 |
Recoveries of amounts charged off | 23 | 0 |
Balance, before amounts charged off | 1,513 | 1,405 |
Amounts charged off | 0 | (16) |
Balance, End of Period | 1,513 | 1,389 |
Construction Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 774 | 617 |
Provision (credit) for loan losses | (152) | 26 |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 622 | 643 |
Amounts charged off | 0 | 0 |
Balance, End of Period | 622 | 643 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 3,178 | 2,933 |
Provision (credit) for loan losses | 335 | (70) |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 3,513 | 2,863 |
Amounts charged off | (54) | 0 |
Balance, End of Period | 3,459 | 2,863 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 394 | 354 |
Provision (credit) for loan losses | 13 | 177 |
Recoveries of amounts charged off | 0 | 1 |
Balance, before amounts charged off | 407 | 532 |
Amounts charged off | 0 | (200) |
Balance, End of Period | 407 | 332 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 23 | 23 |
Provision (credit) for loan losses | 0 | 2 |
Recoveries of amounts charged off | 0 | 3 |
Balance, before amounts charged off | 23 | 28 |
Amounts charged off | 0 | (5) |
Balance, End of Period | 23 | 23 |
Municipal [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 76 | 82 |
Provision (credit) for loan losses | 9 | 10 |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 85 | 92 |
Amounts charged off | 0 | 0 |
Balance, End of Period | 85 | 92 |
Unallocated [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Balance, Beginning of Period | 285 | 362 |
Provision (credit) for loan losses | (3) | (132) |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 282 | 230 |
Amounts charged off | 0 | 0 |
Balance, End of Period | $ 282 | $ 230 |
Allowance for loan losses and_4
Allowance for loan losses and credit quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | $ 208 | $ 196 | ||
Collectively evaluated for impairment | 6,183 | 5,926 | ||
Total allocated | 6,391 | 6,122 | $ 5,572 | $ 5,739 |
Residential Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 68 | 39 | ||
Collectively evaluated for impairment | 1,445 | 1,353 | ||
Total allocated | 1,513 | 1,392 | 1,389 | 1,368 |
Construction Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 622 | 774 | ||
Total allocated | 622 | 774 | 643 | 617 |
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 133 | 149 | ||
Collectively evaluated for impairment | 3,326 | 3,029 | ||
Total allocated | 3,459 | 3,178 | 2,863 | 2,933 |
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 7 | 8 | ||
Collectively evaluated for impairment | 400 | 386 | ||
Total allocated | 407 | 394 | 332 | 354 |
Consumer [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 23 | 23 | ||
Total allocated | 23 | 23 | 23 | 23 |
Municipal [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 85 | 76 | ||
Total allocated | 85 | 76 | 92 | 82 |
Unallocated [Member] | ||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||
Individually evaluated for impairment | 0 | 0 | ||
Collectively evaluated for impairment | 282 | 285 | ||
Total allocated | $ 282 | $ 285 | $ 230 | $ 362 |
Allowance for loan losses and_5
Allowance for loan losses and credit quality Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 5,144 | $ 5,241 |
Collectively evaluated for impairment | 671,387 | 665,003 |
Total | 676,531 | 670,244 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 1,488 | 1,515 |
Collectively evaluated for impairment | 188,932 | 190,610 |
Total | 190,420 | 192,125 |
Construction Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 218 | 223 |
Collectively evaluated for impairment | 53,989 | 69,394 |
Total | 54,207 | 69,617 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 3,158 | 3,204 |
Collectively evaluated for impairment | 301,046 | 286,679 |
Total | 304,204 | 289,883 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 280 | 299 |
Collectively evaluated for impairment | 47,353 | 47,400 |
Total | 47,633 | 47,699 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,460 | 3,562 |
Total | 3,460 | 3,562 |
Municipal [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 76,607 | 67,358 |
Total | $ 76,607 | $ 67,358 |
Allowance for loan losses and_6
Allowance for loan losses and credit quality Loan Ratings by Class (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 676,531 | $ 670,244 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 495,857 | 497,260 |
Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 172,622 | 164,374 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,052 | 8,610 |
Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 190,420 | 192,125 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 172,425 | 174,798 |
Residential Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 15,078 | 14,520 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,917 | 2,807 |
Construction Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 54,207 | 69,617 |
Construction Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 33,632 | 47,326 |
Construction Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 20,091 | 21,819 |
Construction Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 484 | 472 |
Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 304,204 | 289,883 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 174,365 | 168,654 |
Commercial Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 125,767 | 117,004 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,072 | 4,225 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 47,633 | 47,699 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 35,464 | 35,625 |
Commercial [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 11,595 | 10,974 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 574 | 1,100 |
Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,460 | 3,562 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,364 | 3,499 |
Consumer [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 91 | 57 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5 | 6 |
Municipal [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 76,607 | 67,358 |
Municipal [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 76,607 | 67,358 |
Municipal [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Municipal [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 0 | $ 0 |
Allowance for loan losses and_7
Allowance for loan losses and credit quality Impaired Loans by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||||
Financing Receivable, Impaired [Line Items] | ||||||
With an alowance recorded, Recorded Investment | $ 1,987 | [1] | $ 1,991 | |||
With an allowance recorded, Principal Balance | 2,034 | [1] | 2,023 | |||
Related Allowance | 208 | $ 67 | 196 | |||
With no allowance recorded, Recorded Investment | 3,157 | [1] | 3,250 | [2] | ||
With no allowance recorded, Principal Balance | 3,821 | [1] | 3,902 | [2] | ||
Total, Recorded Investment | 5,144 | [1] | 3,843 | [3] | 5,241 | [2] |
Total, Principal Balance | 5,855 | [1] | 4,578 | [3] | 5,925 | [2] |
Total, Average Recorded Investment | 5,193 | 4,134 | ||||
Total, Interest Income Recognized | 49 | 65 | ||||
Government Guarantees on Impaired Loans | 570 | 630 | 587 | |||
Residential Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an alowance recorded, Recorded Investment | 216 | 218 | ||||
With an allowance recorded, Principal Balance | 226 | 228 | ||||
Related Allowance | 68 | 46 | 39 | |||
With no allowance recorded, Recorded Investment | 1,272 | [1] | 1,297 | [2] | ||
With no allowance recorded, Principal Balance | 1,818 | [1] | 1,832 | [2] | ||
Total, Recorded Investment | 1,488 | [1] | 1,720 | [3] | 1,515 | [2] |
Total, Principal Balance | 2,044 | [1] | 2,344 | [3] | 2,060 | [2] |
Total, Average Recorded Investment | 1,502 | 1,699 | ||||
Total, Interest Income Recognized | 19 | 19 | ||||
Construction Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
Related Allowance | 0 | 0 | 0 | |||
With no allowance recorded, Recorded Investment | 218 | 223 | ||||
With no allowance recorded, Principal Balance | 237 | 241 | ||||
Total, Recorded Investment | 218 | 114 | 223 | |||
Total, Principal Balance | 237 | 131 | 241 | |||
Total, Average Recorded Investment | 220 | 116 | ||||
Total, Interest Income Recognized | 1 | 1 | ||||
Commercial Real Estate [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an alowance recorded, Recorded Investment | 1,746 | 1,762 | ||||
With an allowance recorded, Principal Balance | 1,781 | 1,783 | ||||
Related Allowance | 133 | 11 | 149 | |||
With no allowance recorded, Recorded Investment | 1,412 | [1] | 1,442 | [2] | ||
With no allowance recorded, Principal Balance | 1,509 | [1] | 1,539 | [2] | ||
Total, Recorded Investment | 3,158 | [1] | 1,669 | [3] | 3,204 | [2] |
Total, Principal Balance | 3,290 | [1] | 1,761 | [3] | 3,322 | [2] |
Total, Average Recorded Investment | 3,181 | 1,973 | ||||
Total, Interest Income Recognized | 22 | 40 | ||||
Commercial [Member] | ||||||
Financing Receivable, Impaired [Line Items] | ||||||
With an alowance recorded, Recorded Investment | 25 | [1] | 11 | |||
With an allowance recorded, Principal Balance | 27 | [1] | 12 | |||
Related Allowance | 7 | 10 | 8 | |||
With no allowance recorded, Recorded Investment | 255 | [1] | 288 | [2] | ||
With no allowance recorded, Principal Balance | 257 | [1] | 290 | [2] | ||
Total, Recorded Investment | 280 | [1] | 340 | [3] | 299 | [2] |
Total, Principal Balance | 284 | [1] | 342 | [3] | $ 302 | [2] |
Total, Average Recorded Investment | 290 | 346 | ||||
Total, Interest Income Recognized | $ 7 | $ 5 | ||||
[1] | Does not reflect government guaranties on impaired loans as of March 31, 2020 totaling $570 thousand. | |||||
[2] | Does not reflect government guaranties on impaired loans as of December 31, 2019 totaling $587 thousand. | |||||
[3] | Does not reflect government guaranties on impaired loans as of March 31, 2019 totaling $630 thousand. |
Allowance for loan losses and_8
Allowance for loan losses and credit quality Troubled Debt Restured Loans (Details) $ in Thousands | Mar. 31, 2020USD ($)loans | Dec. 31, 2019USD ($)loans |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 40 | 40 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 2,805 | $ 2,871 |
Residential Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 25 | 25 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,488 | $ 1,515 |
Construction Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 2 | 2 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 96 | $ 100 |
Commercial Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 8 | 8 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 950 | $ 966 |
Commercial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 5 | 5 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 271 | $ 290 |
Allowance for loan losses and_9
Allowance for loan losses and credit quality New Troubled Debt Restructured Loans (Details) - Residential Real Estate [Member] $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)loans | Mar. 31, 2019USD ($)loans | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
New TDRs, Number of Loans | loans | 0 | 1 |
New TDRs, Pre-Modification Outstanding Recorded Investment | $ 0 | $ 77 |
New TDRs, Post-Modification Outstanding Recorded Investment | $ 0 | $ 79 |
Allowance for loan losses an_10
Allowance for loan losses and credit quality Narrative Data (Details) $ in Millions | 3 Months Ended | ||
Mar. 31, 2020loans | Mar. 31, 2019loans | Apr. 30, 2020USD ($)loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of TDR loans modified within the previous twelve months that had subsequently defaulted | 0 | 0 | |
Subsequent Event [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Number of loans receiving payment deferrals | 335 | ||
Outstanding balance of loans receiving payment deferrals | $ | $ 160.5 |
Stock Based Compensation RSUs G
Stock Based Compensation RSUs Granted and Unvested (Details) - 2014 Equity Plan [Member] - Restricted Stock Units (RSUs) [Member] | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 15,877 |
Number of Unvested RSUs | 11,471 |
2018 Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 3,225 |
Weighted Average Grant Date Fair Value | $ / shares | $ 52.95 |
Number of Unvested RSUs | 433 |
2019 Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 3,734 |
Weighted Average Grant Date Fair Value | $ / shares | $ 47.75 |
Number of Unvested RSUs | 2,120 |
2020 Award [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted | 8,918 |
Weighted Average Grant Date Fair Value | $ / shares | $ 36.26 |
Number of Unvested RSUs | 8,918 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative Data (Details) | Apr. 15, 2020$ / sharesshares | Mar. 31, 2020USD ($)Granteesshares | Dec. 31, 2019USD ($) | May 15, 2019shares |
2014 Equity Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for equity awards | 50,000 | |||
Aggregate number of outstanding grants of RSUs and stock options | 15,971 | |||
Stock options outstanding | 4,500 | |||
Stock options exercisable | 4,500 | |||
Unrecognized compensation expense, stock options | $ | $ 0 | |||
Intrinsic value of stock options | $ | 0 | |||
2014 Equity Plan [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, unvested RSUs | $ | 167,000 | $ 254,000 | ||
RSUs granted to non-employee directors | 1,185 | |||
Unrecognized director compensation expense, unvested RSUs | $ | $ 7,000 | |||
2014 Equity Plan [Member] | 2021 Provisional Award [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of grantees | Grantees | 15 | |||
Unrecognized compensation expense, RSUs provisionally granted | $ | $ 294,000 | |||
2014 Equity Plan [Member] | 2020 Award [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of grantees | Grantees | 7 | |||
2008 ISO Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock options outstanding | 1,000 | |||
Stock options exercisable | 1,000 | |||
Unrecognized compensation expense, stock options | $ | $ 0 | |||
Subsequent Event [Member] | 2014 Equity Plan [Member] | 2021 Provisional Award [Member] | Restricted Stock Units (RSUs) [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock price at date RSUs provisionally granted | $ / shares | $ 25.76 | |||
RSUs provisionally granted | 15,751 |
Other Comprehensive Income Comp
Other Comprehensive Income Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Net unrealized gain on investment securities available-for-sale | $ 2,061 | $ 986 |
Other Comprehensive Income Tax
Other Comprehensive Income Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Comprehensive Income, before Tax [Abstract] | ||
Net unrealized holding gains arising during the period on investment securities available-for-sale, Before Tax Amount | $ 1,372 | $ 1,194 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before Tax Amount | (11) | (4) |
Total other comprehensive income, Before Tax Amount | 1,361 | 1,190 |
Other Comprehensive Income, Tax [Abstract] | ||
Net unrealized holding gains arising during the period on investment securities available-for-sale, Tax | (288) | (251) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 2 | 1 |
Total other comprehensive income, Tax | (286) | (250) |
Net unrealized holding gains arising during the period on investment securities available-for-sale | 1,084 | 943 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | (9) | (3) |
Total other comprehensive income, Net of Tax Amount | $ 1,075 | $ 940 |
Other Comprehensive Income Recl
Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before Tax Amount | $ (11) | $ (4) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 2 | 1 |
Total reclassifications | $ (9) | $ (3) |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 89,447 | $ 87,393 |
Other investments, mutual funds | 581 | 690 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, mutual funds | 581 | 690 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 89,447 | 87,393 |
US Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,057 | 6,292 |
US Government-sponsored enterprises [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 5,057 | 6,292 |
Agency mortgage-backed [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 48,079 | 46,024 |
Agency mortgage-backed [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 48,079 | 46,024 |
State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 28,339 | 26,965 |
State and political subdivisions [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 28,339 | 26,965 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 7,972 | 8,112 |
Corporate [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 7,972 | $ 8,112 |
Fair Value Measurement Fair V_2
Fair Value Measurement Fair Values and Carrying Amounts, Significant Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | $ 41,712 | $ 51,134 | $ 26,592 | $ 37,289 |
Interest bearing deposits in banks | 6,067 | 6,565 | ||
Investment securities | 90,028 | 88,083 | ||
Loans held for sale | 16,456 | 7,442 | ||
Loans, net | 676,531 | 670,244 | ||
Deposits | ||||
Noninterest bearing | 139,963 | 136,434 | ||
Interest bearing | 449,943 | 458,940 | ||
Time | 146,154 | 148,653 | ||
Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 190,420 | 192,125 | ||
Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 54,207 | 69,617 | ||
Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 304,204 | 289,883 | ||
Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 47,633 | 47,699 | ||
Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 3,460 | 3,562 | ||
Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 76,607 | 67,358 | ||
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 41,712 | 51,134 | ||
Investment securities | 581 | 690 | ||
Deposits | ||||
Noninterest bearing | 139,963 | 136,434 | ||
Interest bearing | 449,943 | 458,940 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 40,000 | |||
Significant Other Observable Inputs (Level 2) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Interest bearing deposits in banks | 6,247 | 6,671 | ||
Investment securities | 89,447 | 87,393 | ||
Loans held for sale | 16,887 | 7,587 | ||
Accrued interest receivable | 443 | 435 | ||
Deposits | ||||
Time | 147,443 | 148,542 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 55,031 | |||
Long-term, Fair Value | 7,155 | 7,416 | ||
Accrued interest payable | 204 | 673 | ||
Significant Unobservable Inputs (Level 3) [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Accrued interest receivable | 2,259 | 2,267 | ||
Significant Unobservable Inputs (Level 3) [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 191,802 | 192,955 | ||
Significant Unobservable Inputs (Level 3) [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 53,172 | 68,381 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 302,181 | 288,931 | ||
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 46,065 | 45,872 | ||
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 3,395 | 3,483 | ||
Significant Unobservable Inputs (Level 3) [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 75,345 | 67,103 | ||
Carrying Amount [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 41,712 | 51,134 | ||
Interest bearing deposits in banks | 6,067 | 6,565 | ||
Investment securities | 90,028 | 88,083 | ||
Loans held for sale | 16,456 | 7,442 | ||
Accrued interest receivable | 2,702 | 2,702 | ||
Nonmarketable equity securities | 3,205 | 2,607 | ||
Deposits | ||||
Noninterest bearing | 139,963 | 136,434 | ||
Interest bearing | 449,943 | 458,940 | ||
Time | 146,154 | 148,653 | ||
Borrowed funds [Abstract] | ||||
Short-term | 55,000 | 40,000 | ||
Long-term | 7,164 | 7,164 | ||
Accrued interest payable | 204 | 673 | ||
Carrying Amount [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 189,204 | 191,032 | ||
Carrying Amount [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 53,670 | 68,951 | ||
Carrying Amount [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 300,938 | 286,871 | ||
Carrying Amount [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 47,300 | 47,379 | ||
Carrying Amount [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 3,442 | 3,545 | ||
Carrying Amount [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net | 76,642 | 67,387 | ||
Estimated Fair Value [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Cash and cash equivalents | 41,712 | 51,134 | ||
Interest bearing deposits in banks | 6,247 | 6,671 | ||
Investment securities | 90,028 | 88,083 | ||
Loans held for sale | 16,887 | 7,587 | ||
Accrued interest receivable | 2,702 | 2,702 | ||
Deposits | ||||
Noninterest bearing | 139,963 | 136,434 | ||
Interest bearing | 449,943 | 458,940 | ||
Time | 147,443 | 148,542 | ||
Borrowed funds [Abstract] | ||||
Short-term, Fair Value | 55,031 | 40,000 | ||
Long-term, Fair Value | 7,155 | 7,416 | ||
Accrued interest payable | 204 | 673 | ||
Estimated Fair Value [Member] | Residential Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 191,802 | 192,955 | ||
Estimated Fair Value [Member] | Construction Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 53,172 | 68,381 | ||
Estimated Fair Value [Member] | Commercial Real Estate [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 302,181 | 288,931 | ||
Estimated Fair Value [Member] | Commercial [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 46,065 | 45,872 | ||
Estimated Fair Value [Member] | Consumer [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | 3,395 | 3,483 | ||
Estimated Fair Value [Member] | Municipal [Member] | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Loans, net, Fair Value | $ 75,345 | $ 67,103 |
Subsequent Events Narrative Dat
Subsequent Events Narrative Data (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)Rate | Apr. 30, 2020USD ($)Applications | Dec. 31, 2019USD ($) | |
Subsequent Event [Line Items] | |||
PPP loan interest rate | Rate | 1.00% | ||
PPP loan term | 2 years | ||
PPPLF Interest Rate | Rate | 0.35% | ||
Investment securities pledged as collateral | $ 0 | $ 0 | |
Dividend Declared [Member] | |||
Subsequent Event [Line Items] | |||
Declaration date, cash dividend | Apr. 15, 2020 | ||
Cash dividend declared, per share | $ 0.32 | ||
Payable date, cash dividend | May 7, 2020 | ||
Record date, cash dividend | Apr. 27, 2020 | ||
Subsequent Event [Member] | |||
Subsequent Event [Line Items] | |||
Number of PPP loan applications approved | Applications | 626 | ||
Total amount of PPP loan applications approved | $ 66,700,000 | ||
Origination fees on PPP loans | 2,400,000 | ||
Oustanding balance of PPPLF | 2,300,000 | ||
Investment securities pledged as collateral | $ 42,500,000 |