Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2020 | Feb. 28, 2021 | Jun. 30, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2020 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-15985 | ||
Entity Registrant Name | UNION BANKSHARES, INC. | ||
Entity Incorporation, State or Country Code | VT | ||
Entity Tax Identification Number | 03-0283552 | ||
Entity Address, Address Line One | P.O. BOX 66720 LOWER MAIN STREET | ||
Entity Address, City or Town | MORRISVILLE | ||
Entity Address, State or Province | VT | ||
Entity Address, Postal Zip Code | 05661-0667 | ||
City Area Code | 802 | ||
Local Phone Number | 888-6600 | ||
Title of 12(b) Security | Common Stock, $2.00 par value | ||
Trading Symbol | UNB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 73,664,335 | ||
Entity Common Stock, Shares Outstanding | 4,480,547 | ||
Documents Incorporated by Reference | Specifically designated portions of the following documents are incorporated by reference in the indicated Part of this Annual Report on Form 10-K: | ||
Entity Central Index Key | 0000706863 | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Filer Category | Non-accelerated Filer |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 5,413 | $ 5,405 |
Federal funds sold and overnight deposits | 117,358 | 45,729 |
Cash and cash equivalents | 122,771 | 51,134 |
Interest bearing deposits in banks | 12,699 | 6,565 |
Investment securities available-for-sale | 105,763 | 87,393 |
Other investments | 1,047 | 690 |
Total investments | 106,810 | 88,083 |
Loans held for sale | 32,188 | 7,442 |
Loans | 771,169 | 670,244 |
Allowance for loan losses | (8,271) | (6,122) |
Net deferred loan (fees) costs | (146) | 1,043 |
Net loans | 762,752 | 665,165 |
Premises and equipment, net | 20,039 | 20,923 |
Goodwill | 2,223 | 2,223 |
Company-owned life insurance | 12,640 | 12,322 |
Other assets | 21,432 | 19,055 |
Total assets | 1,093,554 | 872,912 |
Deposits | ||
Noninterest bearing | 215,245 | 136,434 |
Interest bearing | 637,369 | 458,940 |
Time | 141,688 | 148,653 |
Total deposits | 994,302 | 744,027 |
Borrowed funds | 7,164 | 47,164 |
Accrued interest and other liabilities | 11,221 | 9,878 |
Total liabilities | 1,012,687 | 801,069 |
Commitments and Contingencies (Notes 9, 15, 16, 18, 19 and 22) | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,954,732 shares issued at December 31, 2020 and 4,948,245 shares issued at December 31, 2019 | 9,910 | 9,897 |
Additional-paid-in capital | 1,393 | 1,124 |
Retained earnings | 71,097 | 64,019 |
Treasury stock at cost; 474,632 shares at December 31, 2020 and 476,268 shares at December 31, 2019 | (4,169) | (4,183) |
Accumulated other comprehensive income | 2,636 | 986 |
Total stockholders' equity | 80,867 | 71,843 |
Total liabilities and stockholders' equity | $ 1,093,554 | $ 872,912 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity | ||
Common stock, par value (in usd per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 4,954,732 | 4,948,245 |
Treasury stock, shares (in shares) | 474,632 | 476,268 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Interest and dividend income | ||
Interest and fees on loans | $ 34,435 | $ 33,209 |
Interest on debt securities: | ||
Taxable | 1,329 | 1,615 |
Tax exempt | 635 | 518 |
Dividends | 97 | 143 |
Interest on federal funds sold and overnight deposits | 92 | 190 |
Interest on interest bearing deposits in banks | 162 | 195 |
Total interest and dividend income | 36,750 | 35,870 |
Interest expense | ||
Interest on deposits | 4,776 | 4,725 |
Interest on short-term borrowed funds | 2 | 16 |
Interest on long-term borrowed funds | 369 | 859 |
Total interest expense | 5,147 | 5,600 |
Net interest income | 31,603 | 30,270 |
Provision for loan losses | 2,200 | 775 |
Net interest income after provision for loan losses | 29,403 | 29,495 |
Noninterest income | ||
Trust income | 707 | 692 |
Service fees | 5,924 | 6,108 |
Net gains on sales of investment securities available-for-sale | 11 | 25 |
Net gains on sales of loans held for sale | 8,168 | 2,895 |
Net gain on other investments | 240 | 132 |
Other income | 953 | 603 |
Total noninterest income | 16,003 | 10,455 |
Noninterest expenses | ||
Salaries and wages | 13,220 | 11,821 |
Employee benefits | 4,580 | 4,210 |
Occupancy expense, net | 1,805 | 1,806 |
Equipment expense | 3,057 | 2,475 |
Other expenses | 7,520 | 7,160 |
Total noninterest expenses | 30,182 | 27,472 |
Income before provision for income taxes | 15,224 | 12,478 |
Provision for income taxes | 2,419 | 1,830 |
Net income | $ 12,805 | $ 10,648 |
Basic earnings per common share (in usd per share) | $ 2.86 | $ 2.38 |
Diluted earnings per common share (in usd per share) | 2.85 | 2.38 |
Dividends per common share (in usd per share) | $ 1.28 | $ 1.24 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,805 | $ 10,648 |
Investment securities available-for-sale: | ||
Net unrealized holding gains arising during the year on investment securities available-for-sale | 1,659 | 2,029 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income | (9) | (20) |
Total other comprehensive income | 1,650 | 2,009 |
Total comprehensive income | $ 14,455 | $ 12,657 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive (loss) income |
Beginning balance (in shares) at Dec. 31, 2018 | 4,466,679 | |||||
Balances at Dec. 31, 2018 | $ 64,491 | $ 9,888 | $ 894 | $ 58,911 | $ (4,179) | $ (1,023) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 10,648 | 10,648 | ||||
Other comprehensive income | 2,009 | 2,009 | ||||
Dividend reinvestment plan (in shares) | 1,042 | |||||
Dividend reinvestment plan | 39 | 30 | 9 | |||
Cash dividends declared ($1.24 per share) | (5,540) | (5,540) | ||||
Stock based compensation expense (in shares) | 2,556 | |||||
Stock based compensation expense | 165 | $ 5 | 160 | |||
Exercise of stock options (in shares) | 2,000 | |||||
Exercise of stock options | 44 | $ 4 | 40 | |||
Purchase of treasury stock (in shares) | (300) | |||||
Purchase of treasury stock | (13) | (13) | ||||
Ending balance (in shares) at Dec. 31, 2019 | 4,471,977 | |||||
Balances at Dec. 31, 2019 | 71,843 | $ 9,897 | 1,124 | 64,019 | (4,183) | 986 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,805 | 12,805 | ||||
Other comprehensive income | 1,650 | 1,650 | ||||
Dividend reinvestment plan (in shares) | 1,636 | |||||
Dividend reinvestment plan | 38 | 24 | 14 | |||
Cash dividends declared ($1.24 per share) | (5,727) | (5,727) | ||||
Stock based compensation expense (in shares) | 5,487 | |||||
Stock based compensation expense | 236 | $ 11 | 225 | |||
Exercise of stock options (in shares) | 1,000 | |||||
Exercise of stock options | 22 | $ 2 | 20 | |||
Purchase of treasury stock (in shares) | 0 | |||||
Ending balance (in shares) at Dec. 31, 2020 | 4,480,100 | |||||
Balances at Dec. 31, 2020 | $ 80,867 | $ 9,910 | $ 1,393 | $ 71,097 | $ (4,169) | $ 2,636 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends per common share (in usd per share) | $ 0.32 | $ 1.28 | $ 1.24 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Cash Flows From Operating Activities | ||
Net income | $ 12,805 | $ 10,648 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation | 1,891 | 1,567 |
Provision for loan losses | 2,200 | 775 |
Deferred income tax (benefit) provision | (777) | 438 |
Net amortization of premiums on investment securities | 554 | 490 |
Equity in losses of limited partnerships | 935 | 745 |
Stock based compensation expense | 236 | 165 |
Net decrease (increase) in unamortized loan costs | 1,189 | (105) |
Proceeds from sales of loans held for sale | 271,362 | 161,162 |
Origination of loans held for sale | (287,940) | (162,810) |
Net gains on sales of loans held for sale | (8,168) | (2,895) |
Net gains on sales of investment securities available-for-sale | (11) | (25) |
Net gain on other investments | (240) | (132) |
Increase in accrued interest receivable | (1,196) | (122) |
Amortization of core deposit intangible | 171 | 171 |
Increase in other assets | (897) | (110) |
Increase in other liabilities | 824 | 1,682 |
Net cash (used in) provided by operating activities | (7,062) | 11,644 |
Interest bearing deposits in banks | ||
Proceeds from maturities and redemptions | 3,578 | 2,984 |
Purchases | (9,711) | (249) |
Investment securities available-for-sale | ||
Proceeds from sales | 3,076 | 10,335 |
Proceeds from maturities, calls and paydowns | 22,076 | 11,485 |
Purchases | (41,978) | (33,730) |
Purchases of other investments | (117) | (2) |
Net decrease (increase) in nonmarketable stock | 1,457 | (231) |
Net increase in loans | (101,055) | (28,185) |
Recoveries of loans charged off | 29 | 10 |
Purchases of premises and equipment | (1,007) | (6,417) |
Investments in limited partnerships | (2,257) | (1,929) |
Purchase of Company-owned life insurance | 0 | (3,000) |
Net cash used in investing activities | (125,909) | (48,929) |
Cash Flows From Financing Activities | ||
Repayment of long-term debt | 0 | (20,287) |
Net (decrease) increase in short-term borrowings outstanding | (40,000) | 39,630 |
Net increase in noninterest bearing deposits | 78,811 | 3,463 |
Net increase in interest bearing deposits | 178,429 | 14,218 |
Net (decrease) increase in time deposits | (6,965) | 19,576 |
Issuance of common stock | 22 | 44 |
Purchase of treasury stock | 0 | (13) |
Dividends paid | (5,689) | (5,501) |
Net cash provided by financing activities | 204,608 | 51,130 |
Net increase in cash and cash equivalents | 71,637 | 13,845 |
Cash and cash equivalents | ||
Beginning of year | 51,134 | 37,289 |
End of year | 122,771 | 51,134 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 5,712 | 5,146 |
Income taxes paid | 1,350 | 800 |
Supplemental Schedule of Noncash Investing and Financing Activities | ||
Other real estate acquired in settlement of loans | 50 | 0 |
Investment in limited partnerships acquired by capital contributions payable | 2,722 | 493 |
Right-of-use operating lease assets obtained in exchange for operating lease liabilities | 0 | 2,002 |
Dividends paid on Common Stock: | ||
Dividends declared | 5,727 | 5,540 |
Dividend reinvestment plan | (38) | (39) |
Dividends paid | $ 5,689 | $ 5,501 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and the Subsidiary (the Company) are in conformity with GAAP and general practices within the banking industry. The following is a description of the more significant policies. The consolidated financial statements include the accounts of Union Bankshares, Inc., and its wholly owned subsidiary, Union Bank, headquartered in Morrisville, Vermont. All significant intercompany transactions and balances have been eliminated. The Company utilizes the accrual method of accounting for financial reporting purposes. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its audited consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this Annual Report on Form 10-K, as permitted for smaller reporting companies. Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the current year presentation. The acronyms, abbreviations and capitalized terms identified below are used throughout this Annual Report on Form 10-K, including Parts I, II and III. The following is provided to aid the reader and provide a reference page when reviewing this Annual Report: AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CARES Act: Coronavirus Aid, Relief and Economic Security Act OREO: Other real estate owned CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OTTI: Other-than-temporary impairment CFPB: Consumer Financial Protection Bureau OTT: Other-than-temporary COLI: Company-Owned Life Insurance 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 DFR: Vermont Department of Financial Regulation RSU: Restricted Stock Unit Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 SBA: U.S. Small Business Administration DRIP: Dividend Reinvestment and Stock Purchase Plan SEC: U.S. Securities and Exchange Commission EPS: Earnings per share SOX Act: Sarbanes Oxley Act of 2002 FASB: Financial Accounting Standards Board Tax Act: Tax Cut and Jobs Act FDIC: Federal Deposit Insurance Corporation TDR: Troubled-debt restructuring FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHA: U.S. Federal Housing Administration USDA: U.S. Department of Agriculture FHLB: Federal Home Loan Bank of Boston VA: U.S. Veterans Administration FRB: Federal Reserve Board WHO: World Health Organization Fannie Mae: Federal National Mortgage Association 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company GAAP: Generally accepted accounting principles in the United States 2014 Equity Plan: 2014 Equity Incentive Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2017 Tax Act: Tax Cuts and Jobs Act of 2017 HTM: Held-to-maturity 2020 Plan: 2020 Amended and Restated Nonqualified Excess Plan HUD: U.S. Department of Housing and Urban Development Nature of operations The Company provides a variety of financial services to individuals, municipalities, commercial businesses and nonprofit customers through its branches, ATMs, telebanking, mobile and internet banking systems in northern Vermont and New Hampshire. This market area encompasses primarily retail consumers, small businesses, municipalities, agricultural producers and the tourism industry. The Company's primary deposit products are checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts and its primary lending products are commercial, real estate, municipal and consumer loans. The Company also offers fiduciary and asset management services through its Asset Management Group, an unincorporated division of Union. Significant concentration of credit risk The Company grants loans primarily to customers in Vermont and New Hampshire. Although it has a diversified loan portfolio, a large portion of the Company's loans are secured by commercial or residential real estate located in Vermont and New Hampshire, resulting in exposure to volatility with each state's real estate market. Additionally, the ability of borrowers to repay loans is highly dependent upon other economic factors throughout Vermont and New Hampshire. The Company typically requires the principals of any commercial borrower to obligate themselves personally on the loan. Operating, Accounting and Reporting Considerations related to COVID-19 The outbreak of COVID-19 during 2020 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 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. 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 was 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 included 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 have impacted the Company's operations, accounting, and reporting. The CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. The suspension is applicable for the term of the loan modification that occurs during the applicable period for a loan that was not more than 30 days past due at December 31, 2019. With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreements. The CARES Act also established the PPP, an expansion of the SBAs Section 7(a) loan program and the Economic Injury Disaster Loan Program, also administered by the SBA. With the passage of the PPP, the Company assisted its customers with applications for resources through the program. PPP loans bear a mandated annual interest rate of 1.0%. The PPP was initially launched with loans having a two-year term, but subsequent revisions to the PPP currently allow the maximum term to be extended to five years. The majority of the Company's PPP loans were originated with the two-year term and have not been extended to five years. The Company believes that a significant amount of these loans will ultimately be forgiven by the SBA during 2021 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 losses through additional credit loss expense charged to earnings. Use of estimates in preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term and involve inherent uncertainties relate to the determination of the ALL on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets, and asset impairment judgments, including OTTI of investment securities. These estimates involve a significant degree of complexity and subjectivity and the amount of the change that is reasonably possible, should any of these estimates prove inaccurate, cannot be estimated. Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. Asset management operations Assets held by Union's Asset Management Group in a fiduciary or agency capacity, other than trust cash on deposit with Union, are not included in these consolidated financial statements because they are not assets of Union or the Company. 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; and • 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). Investment securities Debt securities the Company has the positive intent and ability to hold to maturity are classified as HTM and reported at amortized cost. Debt securities not classified as either HTM or trading are classified as AFS and reported at fair value. Debt securities purchased and held primarily for resale in the near future are classified as trading securities and are reported at fair value, with unrealized gains and losses included in earnings. The Company does not generally hold any securities classified as trading. Accretion of discounts and amortization of premiums arising at acquisition on investment securities are included in income using the effective interest method over the life of the securities to the call date. Unrealized gains and losses on investment securities AFS are excluded from earnings and reported in Accumulated OCI, net of tax and reclassification adjustment, as a separate component of stockholders' equity. The specific identification method is used to determine realized gains and losses on sales of AFS or trading securities. The Company evaluates all debt securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A debt 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 an OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement 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 an 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 held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The estimated fair value of loans held for sale is based on current price quotes that determine the amount that the loans could be sold for in the secondary market. Loans transferred from held for sale to portfolio are transferred at the lower of cost or fair value in the aggregate. Sales are normally made without recourse. Gains and losses on the disposition of loans held for sale are determined on the specific identification basis. Net unrealized losses are recognized through a valuation allowance by charges to income. 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. Allowance for loan losses 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. 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 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. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. 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 credit quality of this segment. Loans originated under the PPP are also included in the this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • 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 management's estimate of 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. Mortgage Banking Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The transfer of these financial assets is accounted for as a sale when control over the asset has been surrendered. Control is deemed to be surrendered when (i) the asset has been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset, and (iii) the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity. The Company records the gain on sale of the financial asset within net gains on sales of loans held for sale, net in the consolidated statements of income. Servicing assets are recognized as separate assets when servicing rights are acquired through the sale of residential mortgage loans with servicing rights retained. Capitalized servicing rights, which are reported in other assets on the consolidated statements of condition, are initially recorded at fair value and are amortized in proportion to, and over the period of, the estimated future servicing of the underlying mortgages (typically, the contractual life of the mortgage). The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income within noninterest income on the consolidated statements of income. Servicing assets are evaluated for impairment regularly based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment of the servicing assets is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If it is later determined that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as non-interest income up to, but not in excess of, the prior impairment. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income within noninterest income in the consolidated statements of income when earned. Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statement of income. Maintenance and repairs are charged to current expense as incurred and the costs of major renovations and betterments are capitalized. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. Intangible assets Intangible assets include goodwill, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition, as well as a core deposit intangible related to the deposits acquired (see Note 10). The core deposit intangible is amortized on a straight line basis over the estimated average life of the acquired core deposit base of 10 years. The Company evaluates the valuation and amortization of the core deposit intangible if events occur that could result in possible impairment. With respect to goodwill, in accordance with current authoritative guidance, the Company 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 is less than its carrying amount, which could result in goodwill impairment. Federal Home Loan Bank stock As a member of the FHLB, Union is required to invest in $100 par value stock of the FHLB in an amount to satisfy unpaid principal balances on qualifying loans, plus an amount to satisfy an activity based requirement. The stock is nonmarketable, and is redeemable by the FHLB at par value. Also, there is the possibility of future capital calls by the FHLB on member banks to ensure compliance with its capital plan. FHLB stock is reported in Other assets at its par value of $1.0 million and $2.5 million at December 31, 2020 and 2019, respectively. Company-owned life insurance COLI represents life insurance on the lives of certain current or former directors or employees who have provided positive consent allowing the Company to be the beneficiary of such policies. The Company utilizes COLI as tax-efficient funding for certain benefit obligations to its employees and directors, including obligations under one of the Company's nonqualified deferred compensation plans. (See Note 15.) The Company is the primary beneficiary of the insurance policies. Increases in the cash value of the policies, as well as any gain on insurance proceeds received, are recorded in Other income, and are not currently subject to income taxes. COLI is recorded at the cash value of the policies, less any applicable cash surrender charges (of which there are currently none). The Company reviews the financial strength of the insurance carriers prior to the purchase of COLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed annually and COLI with any individual carrier is limited by Company policy to 15% of the sum of Tier 1 Capital and allowable Tier 2 capital. Investment in real estate limited partnerships The Company has purchased various limited partnership interests in affordable housing partnerships. These partnerships were established to acquire, own and rent residential housing for elderly, low or moderate income residents in northern Vermont or in New Hampshire. GAAP permits an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. There were no impairment losses during the year resulting from the forfeiture or ineligibility of tax credits related to qualified affordable housing project investments. (See Note 11.) Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statement of income. Earnings per common share Basic EPS is calculated based on the weighted average number of shares of common stock issued during the period, including DRIP shares issuable upon reinvestment of dividends, retroactively adjusted for stock splits and stock dividends, if any, and reduced for shares held in treasury. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potential dilutive common shares outstanding during the period. (See Note 17.) Income taxes The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on t |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | Restrictions on Cash and Cash Equivalents The nature of the Company's business requires that it maintain amounts due from correspondent banks which, at times, may exceed federally insured limits. The balances in these accounts at December 31, were as follows: 2020 2019 (Dollars in thousands) Noninterest bearing accounts $ 190 $ 365 Federal Reserve Bank of Boston 117,225 45,638 FHLB of Boston 1,578 1,125 No losses have been experienced in these accounts and the Company believes it is not exposed to any significant risk with respect to the accounts. The Company had no requirement to maintain contracted clearing balances at December 31, 2020 or 2019. Balances at the Federal Reserve Bank of Boston and a portion of the funds at the FHLB are classified as overnight deposits as they earn interest. Prior to March 26, 2020, all banks, including the Company's subsidiary, were required to maintain vault cash or a noninterest bearing reserve balance under FRB regulations. The reserve requirement was eliminated effective March 26, 2020. The Bank had an average total required reserve of $1.8 million for the 14 day maintenance period that included December 31, 2019, which was satisfied by vault cash. |
Interest Bearing Deposits In Ba
Interest Bearing Deposits In Banks | 12 Months Ended |
Dec. 31, 2020 | |
Interest Bearing Deposits in Banks [Abstract] | |
Interest Bearing Deposits in Banks | Interest Bearing Deposits in BanksInterest bearing deposits in banks consist of certificates of deposit purchased from various financial institutions. Deposits at each institution are generally maintained at or below the FDIC insurable limit of $250 thousand. As of December 31, 2020, the Company held $12.7 million in certificates with rates ranging from 0.15% to 3.55% and various maturity dates through 2026, with $5.7 million scheduled to mature in 2021. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments Securities | Investment Securities Investment securities as of the balance sheet dates consisted of the following: December 31, 2020 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 6,462 $ 137 $ (51) $ 6,548 Agency MBS 61,123 1,307 (78) 62,352 State and political subdivisions 27,025 1,439 (3) 28,461 Corporate 7,817 660 (75) 8,402 Total $ 102,427 $ 3,543 $ (207) $ 105,763 December 31, 2019 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 6,349 $ 19 $ (76) $ 6,292 Agency MBS 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 At December 31, 2020 and December 31, 2019, there were no investment securities HTM and no investment securities pledged as collateral. 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: December 31, 2020 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 15 $ 2,005 $ (16) 8 $ 1,661 $ (35) 23 $ 3,666 $ (51) Agency MBS 19 21,698 (78) — — — 19 21,698 (78) State and political 1 575 (3) — — — 1 575 (3) Corporate — — — 3 1,424 (75) 3 1,424 (75) Total 35 $ 24,278 $ (97) 11 $ 3,085 $ (110) 46 $ 27,363 $ (207) December 31, 2019 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 4 $ 2,376 $ (22) 8 $ 2,772 $ (54) 12 $ 5,148 $ (76) Agency MBS 8 6,193 (38) 8 4,861 (43) 16 11,054 (81) State and political 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 has the ability to hold the investment securities that had unrealized losses at December 31, 2020 for the foreseeable future. The decline in fair value is the result of market conditions and not attributable to credit quality in the investment securities and no declines were deemed by management to be OTT at December 31, 2020 and 2019. The following table presents the proceeds, gross gains and gross losses from sales of AFS securities: For The Years Ended December 31, 2020 2019 (Dollars in thousands) Proceeds $ 3,076 $ 10,335 Gross gains 32 62 Gross losses (21) (37) Net gains $ 11 $ 25 The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2020, were as follows: Amortized Fair Available-for-sale (Dollars in thousands) Due in one year or less $ 260 $ 261 Due from one to five years 6,862 7,273 Due from five to ten years 13,202 13,856 Due after ten years 20,980 22,021 41,304 43,411 Agency MBS 61,123 62,352 Total $ 102,427 $ 105,763 Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities may 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 not included in the contractual maturity categories in the above maturity summary. |
Loans Held for Sale and Loan Se
Loans Held for Sale and Loan Servicing | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Loans Held for Sale and Loan Servicing | Loans Held for Sale and Loan ServicingAt December 31, 2020 and 2019, loans held for sale consisted of conventional residential mortgages originated for subsequent sale, with an estimated fair value in excess of their carrying value. Therefore, no valuation reserve was necessary for loans held for sale as of the balance sheet dates. Commercial and residential mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of commercial and residential mortgage loans serviced for others was $629.5 million and $579.9 million at December 31, 2020 and 2019, respectively. Loans sold consisted of the following during the years ended December 31: 2020 2019 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 263,063 $ 8,158 $ 157,952 $ 2,867 Commercial loans 131 10 315 28 Total $ 263,194 $ 8,168 $ 158,267 $ 2,895 There were no obligations to repurchase loans for any amount at December 31, 2020, but there were contractual risk sharing commitments on certain sold loans totaling $747 thousand as of such date. (See Note 19.) The Company generally retains the servicing rights on loans sold. At December 31, 2020 and 2019, the unamortized balance of servicing rights on loans sold with servicing retained was $2.3 million and $1.7 million, respectively, and is included in Other assets. The estimated fair value of these servicing rights was in excess of their carrying value at December 31, 2020 and 2019, and therefore no impairment reserve was necessary. The net capitalization and amortization of MSRs is included in Other income. The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2020 2019 (Dollars in thousands) Capitalization of servicing rights $ 1,736 $ 862 Amortization of servicing rights 1,194 812 Net capitalization of servicing rights $ 542 $ 50 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Loans | Loans The composition of Net loans at December 31, was as follows: 2020 2019 (Dollars in thousands) Residential real estate $ 183,166 $ 192,125 Construction real estate 57,417 69,617 Commercial real estate 320,627 289,883 Commercial 108,861 47,699 Consumer 2,601 3,562 Municipal 98,497 67,358 Gross loans 771,169 670,244 Allowance for loan losses (8,271) (6,122) Net deferred loan (fees) costs (146) 1,043 Net loans $ 762,752 $ 665,165 There were 679 PPP loans totaling $66.2 million classified as commercial loans as of December 31, 2020. Origination fees received from the SBA on these PPP loans totaled $2.4 million and will be amortized over the lives of the respective loans. PPP loan origination fees of $953 thousand were recognized in earnings during the year ended December 31, 2020. Qualifying residential first mortgage loans and certain commercial real estate loans with a carrying value of $210.0 million and $207.7 million were pledged as collateral for borrowings from the FHLB under a blanket lien at December 31, 2020 and 2019, respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2020 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 179,794 $ 2,166 $ 211 $ 368 $ 627 $ 183,166 Construction real estate 57,116 70 67 143 21 57,417 Commercial real estate 317,748 1,130 — — 1,749 320,627 Commercial 108,749 99 — — 13 108,861 Consumer 2,595 6 — — — 2,601 Municipal 98,497 — — — — 98,497 Total $ 764,499 $ 3,471 $ 278 $ 511 $ 2,410 $ 771,169 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 were no residential real estate loans in process of foreclosure at December 31, 2020 and two residential real estate loans totaling $64 thousand in process of foreclosure at December 31, 2019. A moratorium on residential mortgage foreclosures instituted by the State of Vermont in April 2020 related to the COVID-19 pandemic remained in effect as of year end. Aggregate interest not recognized on nonaccrual loans was $420 thousand and $271 thousand for the years ended December 31, 2020 and 2019, respectively. |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality Changes in the ALL, by class of loans, were as follows for the years ended: December 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 376 (11) 1,075 64 (3) 138 561 2,200 Recoveries of amounts 28 — — — 1 — — 29 1,796 763 4,253 458 21 214 846 8,351 Amounts charged off (20) — (54) — (6) — — (80) Balance, December 31, 2020 $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 December 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 150 157 305 239 7 (6) (77) 775 Recoveries of amounts 5 — — 1 4 — — 10 1,523 774 3,238 594 34 76 285 6,524 Amounts charged off (131) — (60) (200) (11) — — (402) Balance, December 31, 2019 $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 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: December 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 30 $ — $ 21 $ 7 $ — $ — $ — $ 58 Collectively evaluated 1,746 763 4,178 451 15 214 846 8,213 Total allocated $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 39 $ — $ 149 $ 8 $ — $ — $ — $ 196 Collectively evaluated 1,353 774 3,029 386 23 76 285 5,926 Total allocated $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 Despite the allocation shown in the tables above, the ALL is general in nature and is available to absorb losses from any class of loan. 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: December 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,782 $ 210 $ 2,422 $ 207 $ — $ — $ 4,621 Collectively evaluated 181,384 57,207 318,205 108,654 2,601 98,497 766,548 Total $ 183,166 $ 57,417 $ 320,627 $ 108,861 $ 2,601 $ 98,497 $ 771,169 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,515 $ 223 $ 3,204 $ 299 $ — $ — $ 5,241 Collectively evaluated 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 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: December 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 166,119 $ 42,853 $ 172,048 $ 98,314 $ 2,595 $ 98,497 $ 580,426 Satisfactory/Monitor 13,756 14,319 144,784 10,116 6 — 182,981 Substandard 3,291 245 3,795 431 — — 7,762 Total $ 183,166 $ 57,417 $ 320,627 $ 108,861 $ 2,601 $ 98,497 $ 771,169 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 years ended December 31, 2020 and 2019: December 31, 2020 For The Year Ended December 31, 2020 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 208 $ 218 $ 30 Commercial real estate 1,634 1,774 21 Commercial 9 11 7 With an allowance recorded 1,851 2,003 58 Residential real estate 1,574 2,182 — Construction real estate 210 231 — Commercial real estate 788 890 — Commercial 198 200 — With no allowance recorded 2,770 3,503 — Residential real estate 1,782 2,400 30 $ 1,710 $ 73 Construction real estate 210 231 — 216 4 Commercial real estate 2,422 2,664 21 2,977 70 Commercial 207 211 7 253 17 Total $ 4,621 $ 5,506 $ 58 $ 5,156 $ 164 December 31, 2019 For The Year Ended December 31, 2019 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (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 $ 1,625 $ 149 Construction real estate 223 241 — 159 4 Commercial real estate 3,204 3,322 149 2,382 110 Commercial 299 302 8 322 23 Total $ 5,241 $ 5,925 $ 196 $ 4,488 $ 286 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2020 and 2019 totaling $514 thousand and $587 thousand, respectively. The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2020 December 31, 2019 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 32 $ 1,782 25 $ 1,515 Construction real estate 2 87 2 100 Commercial real estate 6 788 8 966 Commercial 5 207 5 290 Total 45 $ 2,864 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 table provides new TDR activity by class of loan for the years ended December 31, 2020 and 2019: New TDRs During the New TDRs During the Year Ended December 31, 2020 Year Ended December 31,2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 8 $ 547 $ 549 1 $ 77 $ 79 Commercial — — — 1 15 15 At December 31, 2020, there were no TDR loans modified within the previous twelve months that had subsequently defaulted during the year then ended. At December 31, 2019, there was one residential TDR loan with a recorded investment balance of $79 thousand that had been modified within the previous twelve months that defaulted during the year then ended. TDR loans are considered defaulted at 90 days past due. In March 2020, the CARES ACT was passed and federal banking agencies issued guidance, confirmed by the FASB, providing that certain short-term modifications made to loans to borrowers affected by the COVID-19 pandemic and government shutdown orders would not be considered TDRs under specified circumstances (See Note 1). During 2020, the Company executed modifications, under this guidance and the CARES ACT, on outstanding loan balances of $175.5 million, with total accrued interest of $1.2 million as of December 31, 2020. Of the total modifications executed, outstanding loan balances of $37.6 million remained subject to modification terms and carried accrued interest of $352 thousand as of December 31, 2020. The Company intends to continue to follow the CARES Act and the guidance of the banking regulators in making TDR determinations with respect to loans to borrowers affected by the COVID-19 pandemic. At December 31, 2020 and 2019, the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The major classes of premises and equipment and accumulated depreciation at December 31, were as follows: 2020 2019 (Dollars in thousands) Land and land improvements $ 4,052 $ 3,922 Building and improvements 18,697 18,490 Furniture and equipment 10,329 10,402 Construction in progress and deposits on equipment 170 91 33,248 32,905 Less accumulated depreciation (13,209) (11,982) $ 20,039 $ 20,923 Depreciation included in Occupancy and Equipment expenses amounted to $1.9 million and $1.6 million for the years ended December 31, 2020 and 2019, respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Leases | Leases Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of December 31, 2020, the Company had operating real estate leases for two branch locations, one loan production office, land upon which a branch location was constructed and two ATM locations. The lease agreements have maturity dates ranging from October 2021 to September 2047. As of December 31, 2020, the weighted average remaining life of the lease term for the operating leases was 23.07 years. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate as of January 2019 that corresponded to the remaining lease term for each of these leases at adoption of the ASU. As of December 31, 2020, the weighted average discount rate for operating leases was 3.88%. The right-of-use assets and lease liabilities related to operating leases were as follows at December 31: 2020 2019 (Dollars in thousands) Right-of-use assets included in Other assets $ 1,732 $ 1,861 Lease liabilities included in Accrued interest and other liabilities 1,789 1,894 Total estimated rental commitments for operating leases were as follows as of December 31, 2020: (Dollars in thousands) 2021 $ 173 2022 125 2023 115 2024 111 2025 112 Thereafter 2,225 Total $ 2,861 A reconciliation of the operating lease undiscounted cash flows in the maturity analysis above and the operating lease liability recognized in the consolidated balance sheet is shown below: December 31, 2020 (Dollars in thousands) Undiscounted cash flows $ 2,861 Discount effect of cash flows (1,072) Lease liabilities $ 1,789 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 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 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 years average life of the acquired core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. Amortization expense for the core deposit intangible was $171 thousand for 2020 and 2019. The amortization expense is included in Other expenses in the consolidated statements of income and is deductible for tax purposes. As of December 31, 2020, there is $71 thousand remaining amortization expense related to the core deposit intangible that will be expensed in 2021. |
Investment in Real Estate Limit
Investment in Real Estate Limited Partnerships | 12 Months Ended |
Dec. 31, 2020 | |
Investment in Real Estate Limited Partnerships [Abstract] | |
Investment in Real Estate Limited Partnerships | Investment in Real Estate Limited Partnerships The Company has purchased from time to time various interests in limited partnerships established to acquire, own and rent residential housing for elderly, low or moderate income individuals in northern Vermont and New Hampshire. The following is a summary of investments in real estate limited partnerships at December 31: 2020 2019 (Dollars in thousands) Carrying values of investment carried at equity included in Other assets $ 6,584 $ 4,402 Capital contribution payable included in Accrued interest and other liabilities 1,351 493 The following table presents the net impact on the Provision for income taxes related to investments carried at equity: For The Years Ended December 31, 2020 2019 (Dollars in thousands) Provision for undistributed net losses of limited partnership investments $ 935 $ 745 Federal income tax credits related to limited partnership investments (987) (803) Net effect on Provision for income taxes $ (52) $ (58) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Deposits | Deposits The following is a summary of interest bearing deposits at December 31: 2020 2019 (Dollars in thousands) Interest bearing checking accounts $ 231,465 $ 173,406 Savings and money market accounts 405,904 285,534 Time deposits, $100,000 and over 70,373 73,048 Other time deposits 71,315 75,605 $ 779,057 $ 607,593 Included in time deposits are brokered deposits of $15.0 million and $12.0 million at December 31, 2020 and 2019, respectively. Reciprocal deposits of $160.5 million and $127.3 million at December 31, 2020 and 2019, respectively, are included in deposit balances in the consolidated balance sheets. The following is a summary of time deposits by maturity at December 31, 2020: (Dollars in thousands) 2021 $ 114,919 2022 15,640 2023 5,212 2024 3,311 2025 2,606 $ 141,688 Time deposits of $22.9 million and $24.4 million equal or exceed the FDIC insurance limit of $250 thousand at December 31, 2020 and 2019, respectively. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds Borrowed funds included option advance borrowings from the FHLB of $7.2 million and $47.2 million at December 31, 2020 and 2019, respectively. The FHLB option advance borrowings are a mix of straight bullets, balloons and amortizers with contractual maturities through 2023. All of the FHLB borrowings had interest rates ranging from 0.00% to 3.09% at December 31, 2020 and 2019. The weighted average interest rates on the borrowings were 3.07% and 2.01% at December 31, 2020 and 2019, respectively. The contractual payments due for FHLB option advance borrowings, as of December 31, 2020, were as follows: (Dollars in thousands) 2021 $ 164 2022 — 2023 7,000 $ 7,164 The Company has established both overnight and longer term lines of credit with the FHLB. These borrowings are secured by a blanket lien on qualified collateral consisting of loans with first mortgages secured by one-to-four family properties and certain commercial real estate loans. At December 31, 2020, pledged loans with a carrying value of $210.0 million provided a borrowing capacity of $134.1 million at the FHLB, less outstanding borrowings and other credit subject to collateralization of $21.9 million, resulting in remaining year-end borrowing capacity of $112.2 million. At December 31, 2019, pledged loans with a carrying value of $207.7 million provided a borrowing capacity of $127.5 million at the FHLB, less outstanding borrowings and other credit subject to collateralization of $61.7 million, resulting in remaining year-end borrowing capacity of $65.8 million. A separate agreement has been established with the FHLB under which the Company has the authority, up to its available borrowing capacity, to collateralize public unit deposits with letters of credit issued by the FHLB. FHLB letters of credit in the amount of $23.6 million and $24.8 million were utilized as collateral for these deposits at December 31, 2020 and 2019, respectively. Total fees paid by the Company in connection with the issuance of these letters of credit were $30 thousand and $27 thousand for the years ended December 31, 2020 and 2019, respectively. In addition to its borrowing arrangements with the FHLB, Union maintains a preapproved Federal Funds line of credit with a correspondent bank totaling $15.0 million. Interest on advances under this line is payable daily and charged at the Federal Funds rate at the time of the borrowing. There were no outstanding borrowings on the Federal Funds purchase line at December 31, 2020 or 2019. In addition to the funding sources available to Union, the Company maintains a $5.0 million revolving line of credit with a correspondent bank. There were no outstanding borrowings on the line at December 31, 2020 or 2019. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes for the years ended December 31, were as follows: 2020 2019 (Dollars in thousands) Current federal tax provision $ 3,134 $ 1,351 Current state tax provision 62 41 Deferred tax (benefit) provision (777) 438 $ 2,419 $ 1,830 The total provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 21% primarily due to the following for the years ended December 31: 2020 2019 (Dollars in thousands) Computed “expected” tax expense $ 3,197 $ 2,620 State taxes 49 32 Tax exempt interest (555) (513) Increase in cash surrender value of COLI (67) (59) Tax credits (1,013) (857) Equity in losses of limited partnerships 788 640 Non-deductible expenses 44 46 Other (24) (79) $ 2,419 $ 1,830 Listed below are the significant components of the net deferred tax liability at December 31: 2020 2019 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,798 $ 1,329 Deferred compensation 300 227 Loans held for sale 271 32 Core deposit intangible 119 106 Other 55 37 Total deferred tax asset 2,543 1,731 Components of the deferred tax liability Depreciation (1,254) (1,402) Mortgage servicing rights (490) (371) Limited partnership investments (86) (50) Unrealized gain on investment securities available-for-sale (701) (262) Goodwill (309) (276) Prepaid expenses (132) (136) Total deferred tax liability (2,972) (2,497) Net deferred tax liability $ (429) $ (766) Deferred tax assets are recognized subject to management's judgment that it is more likely than not that the deferred tax asset will be realized. Based on the temporary taxable items, historical taxable income and estimates of future taxable income, the Company believes that it is more likely than not that the deferred tax assets at December 31, 2020 will be realized and therefore no valuation allowance is warranted. The net deferred income tax liability is included in Accrued interest and other liabilities in the consolidated balance sheets at December 31, 2020 and 2019. Based on management's evaluation, management has concluded that there were no significant uncertain tax positions requiring recognition in the Company's financial statements at December 31, 2020 and 2019. The Company is subject to income tax at the federal level and in the state of New Hampshire. Although the Company is not currently the subject of an examination by taxing authorities, the Company's tax years ended December 31, 2017 through 2019 are open to examination under the applicable statute of limitations. The 2020 tax return has not yet been filed. The Company may from time to time be assessed interest and/or penalties by federal or state tax jurisdictions, although any such assessments historically have been minimal and immaterial to the Company's financial results. In the event that the Company receives an assessment for interest and/or penalties, it will be classified in the financial statements as Other expenses. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans 401(k) Plan: Union maintains a tax-qualified defined contribution 401(k) plan under which employees may elect to make tax deferred contributions of up to the IRS maximum from their annual salary. All employees meeting service requirements are eligible to participate in the plan. Union may make employer matching and profit-sharing contributions to the 401(k) plan at the discretion of the Board. Company contributions are fully vested after three years of service. The 401(k) plan includes "Safe Harbor" provisions requiring annual nondiscretionary minimum contributions to the plan for all eligible participants in an amount equal to 3% of eligible earnings of each eligible participant. Additionally, in 2020 and 2019 a discretionary profit-sharing contribution was made to the plan in an amount equal to 3% percent of each employee's eligible earnings, as defined by the plan. The following table summarizes employer contributions for the years ended December 31, 2020 and 2019: 2020 2019 (Dollars in thousands) Employer matching $ 318 $ 270 Profit sharing $ 339 $ 280 Safe harbor $ 382 $ 336 Total $ 1,039 $ 886 Nonqualified Deferred Compensation Plans: The Company and Union have two nonqualified deferred compensation plans for directors and certain key officers, referred to in this Note as the 2008 Plan and the 2020 Plan. The Company accrued an expense of $8 thousand in 2020 and 2019, under the 2008 Plan. The benefit obligations under the 2008 Plan represent general unsecured obligations of the Company and no assets are segregated for such payments. However, the Company and Union have purchased life insurance contracts on the lives of each participant in order to recoup the funding costs of these benefits. The benefits accrued under the 2008 Plan aggregated $327 thousand and $359 thousand at December 31, 2020 and 2019, respectively, and are included in Accrued interest and other liabilities. The cash surrender value of the life insurance policies purchased to recoup the funding costs under the 2008 Plan aggregated $1.1 million and $1 million at December 31, 2020 and 2019, respectively, and are included in Company-owned life insurance in the Company's consolidated balance sheets. The 2020 Plan, which amended and restated an earlier plan adopted in 2006, provides a means by which participants may elect to defer receipt of current compensation from the Company or its subsidiary in order to provide retirement or other benefits as selected in the individual adoption agreements. As originally the Plan did not allow for employer contributions, the Board subsequently determined that employer contributions may be appropriate in certain circumstances and accordingly amended and restated the plan effective February 1, 2020. Participants may select among designated reference investments consisting of investment funds, with the performance of the participant's account mirroring the selected reference investment. Distributions are made only upon a qualifying distribution event, which may include a separation from service, death, disability or unforeseeable emergency, or upon a date specified in the participant's deferral election form. The 2020 Plan is unfunded, representing general unsecured obligations of the Company of $1.1 million and $699 thousand as of December 31, 2020 and 2019, respectively, and are included in accrued interest and other liabilities in the consolidated balance sheets, including employer contributions of $24 thousand accrued as of December 31, 2020. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based CompensationThe Company's stock-based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock are available 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 December 31, 2020, there were outstanding grants under the plan of RSUs and incentive stock options as noted in the tables below. RSUs. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. For each of the awards granted in 2020 and 2019, 50% of the RSUs awarded were in the form of Time-Based RSUs, which vest over three years, approximately one-third per year on the anniversary of the earned date; and 50% of the RSUs awarded were in the form of Performance-Based RSUs, which are subject to both performance and time based vesting conditions, with vesting of awards over two years, approximately one-half per year on the anniversary of the earned date. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table presents a summary of RSUs from the respective Award Plan Summaries as of December 31, 2020: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2019 Award 3,734 $ 47.75 500 2020 Award 8,918 36.26 5,139 Total 12,652 5,639 Unrecognized compensation expense related to the unvested RSUs was $209 thousand and $492 thousand, as of December 31, 2020 and 2019, respectively. On May 22, 2020, the Company's board of directors, as a component of total director compensation, granted an aggregate of 2,152 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 in May 2021, 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. Director compensation expense related to this award is estimated to be $41 thousand of which $25 thousand has been recorded for the year ended December 31, 2020. Incentive stock options. The 2014 Equity Plan replaced the Company's 2008 ISO Plan. There were no options granted in 2020 or 2019 under the 2014 Equity Plan. As of December 31, 2020, there were 4,500 incentive stock options outstanding under the 2014 Equity Plan, all of which were exercisable. The exercise price of outstanding options under the 2014 Equity Plan is equal to the market price of the stock at the date of grant; therefore, the intrinsic value of the options at the date of the grant is $0. All outstanding options have a one year requisite service period, vest after one year, and have a seven year contractual term. There was no compensation cost charged against income in 2020 or 2019 for stock options issued under the 2014 Equity Plan or the 2008 ISO Plan. The following summarizes the stock option activity under the 2014 Equity Plan for the year ended December 31, 2020: Shares Weighted Weighted Period (Dollars in thousands, except per share data) Outstanding at January 1, 2020 4,500 $ 24.00 Exercised — — Forfeited/expired — — Outstanding at December 31, 2020 4,500 $ 24.00 0.96 $ 8 Exercisable at December 31, 2020 4,500 $ 24.00 0.96 $ 8 The following summarizes the stock option activity under the 2008 ISO Plan for the year ended December 31, 2020: Shares Weighted Weighted Period (Dollars in thousands, except per share data) Outstanding at January 1, 2020 1,000 $ 22.00 Exercised (1,000) $ 22.00 Forfeited/expired — — Outstanding at December 31, 2020 — Exercisable at December 31, 2020 — The following summarizes information regarding the proceeds received by the Company from the exercise of stock options during the years ended December 31: 2020 2019 (Dollars in thousands, except per share data) Proceeds received $ 22 $ 44 Number of shares exercised 1,000 2,000 Weighted average price per share $ 22.00 $ 22.00 Total intrinsic value of options exercised $ 14 $ 30 As of December 31, 2020, there was no unrecognized compensation cost as all outstanding options were fully vested and exercisable. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the years ended December 31, 2020 and 2019: 2020 2019 (Dollars in thousands, except per share data) Net income $ 12,805 $ 10,648 Weighted average common shares outstanding for basic EPS 4,474,649 4,468,336 Dilutive effect of stock-based awards (1) 18,508 12,856 Weighted-average common and potential common shares for diluted EPS 4,493,157 4,481,192 Earnings per common share: Basic EPS $ 2.86 $ 2.38 Diluted EPS $ 2.85 $ 2.38 ____________________ |
Financial Instruments With Off-
Financial Instruments With Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Financial Instruments With Off-Balance-Sheet Risk | Financial Instruments With Off-Balance-Sheet RiskThe Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate caps and floors written on adjustable-rate loans, commitments to participate in or sell loans, commitments to buy or sell securities, guarantees on certain sold loans and risk-sharing commitments on certain sold loans under the MPF program with the FHLB. At December 31, 2020 and 2019, the Company had binding loan commitments to sell residential mortgage loans at fixed rates totaling $18.3 million and $7.1 million, respectively. The fair value adjustment of these commitments is not material to the Company's financial statements. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments and the potential impact on the Company's future financial position, financial performance and cash flow. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. For interest rate caps and floors embedded in adjustable-rate loans, the contract or notional amounts do not represent exposure to credit loss. The Company controls the risk of interest rate cap agreements through credit approvals, limits and monitoring procedures. Interest rate caps and floors on adjustable rate loans permit the Company to manage its interest rate risk and cash flow risk on these loans within parameters established by Company policy. The Company generally requires collateral or other security to support financial instruments with credit risk. The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31: Contract or 2020 2019 (Dollars in thousands) Commitments to originate loans $ 61,431 $ 35,689 Unused lines of credit 132,502 103,623 Standby and commercial letters of credit 3,115 2,308 Credit card arrangements 308 311 MPF credit enhancement obligation, net (See Note 19) 728 687 Commitment to purchase investment in a real estate limited partnership 2,000 3,000 Total $ 200,084 $ 145,618 Commitments to extend credit are agreements to lend to a customer at either a fixed or variable interest rate as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates within 90 days of the commitment. Unused lines of credit are generally renewable at least annually except for home equity lines which usually have a specified draw period followed by a specified repayment period. Unused lines may have other termination clauses and may require payment of a fee. Since many of the commitments and lines are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon issuance of a commitment to extend credit is based on management's credit evaluation of the customer. Collateral held varies but may include real estate, accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are issued to support the customer's private borrowing arrangements or guarantee the customer's contractual performance on behalf of a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers and the Company evaluates each customer's creditworthiness on a case-by-case basis. The fair value of standby letters of credit has not been included in the Company's consolidated balance sheet for either year as the fair value is immaterial. The Company did not hold or issue derivative instruments or hedging instruments during the years ended December 31, 2020 and 2019. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Contingent Liabilities: The Company sells 1-4 family residential mortgage loans under the MPF program with FHLB (See Note 18). Under this program, the Company shares in the credit risk of each mortgage loan, while receiving fee income in return. The Company is responsible for a Credit Enhancement Obligation based on the credit quality of these loans. FHLB funds a First Loss Account based on the Company's outstanding MPF mortgage loan balances. This creates a laddered approach to sharing in any losses. In the event of default, homeowner's equity and private mortgage insurance, if any, are the first sources of repayment; the FHLB First Loss Account funds are then utilized, followed by the member's Credit Enhancement Obligation, with the balance the responsibility of FHLB. These loans meet specific underwriting standards of the FHLB. As of December 31, 2020, the Company had sold $31.6 million in loans through the MPF program since inception of its participation in the program, with an outstanding principal balance of $10.4 million as of such date. The volume of loans sold to the MPF program and the corresponding credit obligation are closely monitored by management. As of December 31, 2020 and 2019, the notional amount of the maximum contingent contractual liability related to this program was $747 thousand and $705 thousand, respectively, of which $19 thousand and $18 thousand had been recorded as a reserve through Accrued interest and other liabilities at December 31, 2020 and 2019, respectively. 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 statements. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Fair Value Measurement 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 investment 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 December 31, 2020 and 2019, segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Quoted Prices in Active Markets for Significant Other Observable Inputs Significant December 31, 2020: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,548 $ — $ 6,548 $ — Agency MBS 62,352 — 62,352 — State and political subdivisions 28,461 — 28,461 — Corporate 8,402 — 8,402 — Total debt securities $ 105,763 $ — $ 105,763 $ — Other investments: Mutual funds $ 1,047 $ 1,047 $ — $ — December 31, 2019: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,292 $ — $ 6,292 $ — Agency MBS 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 years ended December 31, 2020 and 2019, nor were there any Level 3 assets at any time during those periods. 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 and MSRs, were not considered material at December 31, 2020 or 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: December 31, 2020 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 122,771 $ 122,771 $ 122,771 $ — $ — Interest bearing deposits in banks 12,699 12,699 — 12,699 — Investment securities 106,810 106,810 1,047 105,763 — Loans held for sale 32,188 33,437 — 33,437 — Loans, net Residential real estate 181,355 185,890 — — 185,890 Construction real estate 56,643 56,882 — — 56,882 Commercial real estate 315,522 324,085 — — 324,085 Commercial 108,382 106,358 — — 106,358 Consumer 2,586 2,557 — — 2,557 Municipal 98,264 98,973 — — 98,973 Accrued interest receivable 4,129 4,129 — 446 3,683 Nonmarketable equity securities 1,150 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 215,245 215,245 215,245 — — Interest bearing 637,369 637,369 637,369 — — Time 141,688 142,605 — 142,605 — Borrowed funds Long-term 7,164 7,585 — 7,585 — Accrued interest payable 108 108 — 108 — December 31, 2019 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (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. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties The Company has had, and is expected to have in the future, banking transactions in the ordinary course of business with principal stockholders, directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties). In the opinion of management, these transactions were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and do not represent more than the normal risk of collectability or present other unfavorable features. Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2020 2019 (Dollars in thousands) Balance, January 1, $ 1,300 $ 749 New loans and advances on lines 1,632 1,045 Repayments (1,222) (690) Other, net (979) 196 Balance, December 31, $ 731 $ 1,300 Balance available on lines of credit or loan commitments $ 1,123 $ 1,153 There were no loans to related parties that were past due, in nonaccrual status or that had been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower, or that were considered classified at December 31, 2020 or 2019. Deposit accounts with related parties were $1.1 million and $1.3 million at December 31, 2020 and 2019, respectively. Union's Asset Management Group also invested $266 thousand and $348 thousand in certificates of deposit with Union at December 31, 2020 and 2019, respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements | Regulatory Capital Requirements The Company (on a consolidated basis) and Union are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's and Union's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Union must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and Union's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier I risk-based capital ratio of 6.0%, a minimum common equity Tier I risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a 2.5% capital conservation buffer consisting of common Tier I equity, increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees. The Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 directed the federal banking regulators to adopt rules providing for a simplified regulatory capital framework for qualifying community banking organizations. In September 2019, the banking regulators finalized a rule that introduced the community bank leverage ratio (CBLR) framework as an optional simplified measure of capital adequacy for qualifying institutions. Beginning with the March 31, 2020 regulatory capital calculation, a banking organization with a Tier I leverage ratio greater than 9.0%, less than $10 billion in average consolidated assets, and limited amounts of off-balance sheet exposures and trading assets and liabilities may opt into the CBLR framework and will be deemed "well capitalized" and will not be required to report or calculate risk-based capital. A community banking organization that does not meet the requirements for use of the simplified CBLR framework will continue to calculate its regulatory capital ratios under existing guidelines. A provision of the CARES Act temporarily lowers the minimum Tier 1 leverage ratio to 8.0% for a banking organization to elect to use the CBLR framework, with a phased increase back to 9.0% by the end of 2021. As of December 31, 2020, the Tier I leverage ratio was 7.31% and 7.26% for the Company and Union, respectively. The Company and Union's risk-based capital ratios exceeded regulatory guidelines at December 31, 2020 and 2019, and, specifically, Union was "well capitalized" under Prompt Corrective Action provisions for each period. There were no conditions or events that occurred subsequent to December 31, 2020 that would change the Company or Union's regulatory capital categorization. Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables: Actual For Capital To Be Well As of December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 83,464 13.87 % $ 48,141 8.00 % N/A N/A Tier 1 capital to risk weighted assets 75,933 12.62 % 36,101 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 75,933 12.62 % 27,076 4.50 % N/A N/A Tier 1 capital to average assets 75,933 7.31 % 41,550 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 82,842 13.79 % $ 48,059 8.00 % $ 60,074 10.00 % Tier 1 capital to risk weighted assets 75,324 12.54 % 36,040 6.00 % 48,054 8.00 % Common Equity Tier 1 to risk weighted assets 75,324 12.54 % 27,030 4.50 % 39,044 6.50 % Tier 1 capital to average assets 75,324 7.26 % 41,501 4.00 % 51,876 5.00 % Actual For Capital To be Well As of December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 74,510 13.02 % $ 45,782 8.00 % N/A N/A Tier 1 capital to risk weighted assets 68,388 11.95 % 34,337 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 68,388 11.95 % 25,753 4.50 % N/A N/A Tier 1 capital to average assets 68,388 8.09 % 33,814 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 74,167 12.98 % $ 45,715 8.00 % $ 57,139 10.00 % Tier 1 capital to risk weighted assets 68,045 11.91 % 34,280 6.00 % 45,706 8.00 % Common Equity Tier 1 to risk weighted assets 68,045 11.91 % 25,710 4.50 % 37,136 6.50 % Tier 1 capital to average assets 68,045 8.06 % 33,769 4.00 % 42,212 5.00 % Dividends paid by Union are the primary source of funds available to the Company for payment of dividends to its stockholders. Union is subject to certain requirements imposed by federal banking laws and regulations, which among other things, establish minimum levels of capital and restrict the amount of dividends that may be distributed by Union to the Company. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2020 | |
Class of Stock Disclosures [Abstract] | |
Treasury Stock | Treasury Stock The basis for the carrying value of the Company's treasury stock is the purchase price of the shares at the time of purchase. The Company maintains a limited stock repurchase plan which authorizes the repurchase of up to 2,500 shares of its common stock each calendar quarter in open market purchases or privately negotiated transactions, as management may deem advisable and as market conditions may warrant. The repurchase authorization for a calendar quarter expires at the end of that quarter to the extent it has not been exercised, and is not carried forward into future quarters. The quarterly repurchase program, which was initially adopted in 2010, was most recently reauthorized in January 2021 and will expire on December 31, 2021 unless reauthorized. The Company repurchased no shares under this program during 2020, while 300 shares, at a total cost of $13 thousand were repurchased under the program during 2019. Since inception, the Company had repurchased 17,693 shares of its common stock as of December 31, 2020, at prices ranging from $17.86 to $48.82 per share and at a total cost of $472 thousand. The Company maintains a Dividend Reinvestment and Stock Purchase Plan (DRIP) whereby registered stockholders may elect to reinvest cash dividends and optional cash contributions to purchase additional shares of the Company's common stock. The Company has reserved 200,000 shares of its common stock for issuance and sale under the DRIP. As of December 31, 2020, 4,139 shares of stock had been issued from treasury stock under the DRIP, since inception of the Plan in 2016. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income The components of Accumulated OCI, net of tax, at December 31 were: 2020 2019 (Dollars in thousands) Net unrealized gain on investment securities available-for-sale $ 2,636 $ 986 The following table discloses the tax effects allocated to each component of OCI for the years ended: December 31, 2020 December 31, 2019 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains arising during the year on investment securities available-for-sale $ 2,099 $ (440) $ 1,659 $ 2,568 $ (539) $ 2,029 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (11) 2 (9) (25) 5 (20) Total other comprehensive income $ 2,088 $ (438) $ 1,650 $ 2,543 $ (534) $ 2,009 The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31: Reclassification Adjustment Description 2020 2019 Affected Line Item in (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (11) $ (25) Net gains on sales of investment securities available-for-sale Tax benefit 2 5 Provision for income taxes Total reclassifications $ (9) $ (20) Net income |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Events occurring subsequent to December 31, 2020 have been evaluated as to their potential impact on the consolidated financial statements. On January 20, 2021, the Board of Directors declared a cash dividend of $0.33 per share for the quarter, an increase of 3.1% from the cash dividend of $0.32 paid in recent prior quarters. The dividend is payable February 5, 2021 to shareholders of record as of February 1, 2021. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only | Condensed Financial Information (Parent Company Only) The following condensed financial statements are for Union Bankshares, Inc. (Parent Company Only), and should be read in conjunction with the consolidated financial statements of Union Bankshares, Inc. and Subsidiary. UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2020 and 2019 2020 2019 (Dollars in thousands) ASSETS Cash $ 93 $ 46 Other investments 60 27 Investment in subsidiary - Union 80,257 71,500 Other assets 869 712 Total assets $ 81,279 $ 72,285 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Other liabilities $ 412 $ 442 Total liabilities 412 442 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,954,732 shares issued at December 31, 2020 and 4,948,245 shares issued at December 31, 2019 9,910 9,897 Additional paid-in capital 1,393 1,124 Retained earnings 71,097 64,019 Treasury stock at cost; 474,632 shares at December 31, 2020 and 476,268 shares at December 31, 2019 (4,169) (4,183) Accumulated other comprehensive income 2,636 986 Total stockholders' equity 80,867 71,843 Total liabilities and stockholders' equity $ 81,279 $ 72,285 The investment in subsidiary is carried under the equity method of accounting. The investment in subsidiary and cash, which is on deposit with Union, have been eliminated in consolidation. UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2020 and 2019 2020 2019 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 6,350 $ 5,925 Other income 28 24 Total revenues 6,378 5,949 Expenses Interest 18 16 Administrative and other 539 536 Total expenses 557 552 Income before applicable income tax benefit and equity in undistributed 5,821 5,397 Applicable income tax benefit (113) (113) Income before equity in undistributed net income of subsidiary 5,934 5,510 Equity in undistributed net income - Union 6,871 5,138 Net income $ 12,805 $ 10,648 UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2020 and 2019 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 12,805 $ 10,648 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (6,871) (5,138) (Increase) decrease in other assets (157) 55 Decrease in other liabilities (30) (137) Net cash provided by operating activities 5,747 5,428 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of other investments — 47 Purchases of other investments (33) (7) Net cash (used in) provided by investing activities (33) 40 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (5,689) (5,501) Issuance of common stock 22 44 Purchase of treasury stock — (13) Net cash used in financing activities (5,667) (5,470) Net decrease in cash 47 (2) Cash, beginning of year 46 48 Cash, end of year $ 93 $ 46 Supplemental Disclosures of Cash Flow Information Interest paid $ 18 $ 16 Dividends paid on Common Stock: Dividends declared $ 5,727 $ 5,540 Dividends reinvested (38) (39) $ 5,689 $ 5,501 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) A summary of consolidated financial data for each of the four quarters of 2020 and 2019 is presented below: Quarters in 2020 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 8,963 $ 9,139 $ 9,343 $ 9,305 Interest expense 1,457 1,361 1,158 1,171 Net interest income 7,506 7,778 8,185 8,134 Provision for loan losses 300 500 800 600 Noninterest income 2,518 2,988 5,508 4,989 Noninterest expenses 7,172 7,111 7,995 7,904 Net income 2,196 2,668 4,147 3,794 Earnings per common share $ 0.49 $ 0.60 $ 0.92 $ 0.85 Quarters in 2019 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 8,592 $ 8,904 $ 9,140 $ 9,234 Interest expense 1,227 1,397 1,493 1,483 Net interest income 7,365 7,507 7,647 7,751 Provision for loan losses 50 150 150 425 Noninterest income 2,232 2,471 2,723 3,029 Noninterest expenses 6,527 6,800 7,005 7,140 Net income 2,621 2,530 2,738 2,759 Earnings per common share $ 0.59 $ 0.56 $ 0.62 $ 0.61 |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Income and Other Noninterest Expenses | Other Noninterest Income and Other Noninterest Expenses The components of other noninterest income and other noninterest expenses for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Income (Dollars in thousands) Income from mortgage servicing rights, net $ 542 $ 50 Other income 411 553 Total other income $ 953 $ 603 Expenses ATM network and debit card expense $ 800 $ 790 Advertising and public relations 544 555 Vermont franchise tax 759 678 Professional fees 774 701 Director and advisory board fees 505 502 Other expenses 4,138 3,934 Total other expenses $ 7,520 $ 7,160 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of financial statement presentation | Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and the Subsidiary (the Company) are in conformity with GAAP and general practices within the banking industry. The following is a description of the more significant policies. The consolidated financial statements include the accounts of Union Bankshares, Inc., and its wholly owned subsidiary, Union Bank, headquartered in Morrisville, Vermont. All significant intercompany transactions and balances have been eliminated. The Company utilizes the accrual method of accounting for financial reporting purposes. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its audited consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this Annual Report on Form 10-K, as permitted for smaller reporting companies. Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the current year presentation. The acronyms, abbreviations and capitalized terms identified below are used throughout this Annual Report on Form 10-K, including Parts I, II and III. The following is provided to aid the reader and provide a reference page when reviewing this Annual Report: AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CARES Act: Coronavirus Aid, Relief and Economic Security Act OREO: Other real estate owned CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OTTI: Other-than-temporary impairment CFPB: Consumer Financial Protection Bureau OTT: Other-than-temporary COLI: Company-Owned Life Insurance 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 DFR: Vermont Department of Financial Regulation RSU: Restricted Stock Unit Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 SBA: U.S. Small Business Administration DRIP: Dividend Reinvestment and Stock Purchase Plan SEC: U.S. Securities and Exchange Commission EPS: Earnings per share SOX Act: Sarbanes Oxley Act of 2002 FASB: Financial Accounting Standards Board Tax Act: Tax Cut and Jobs Act FDIC: Federal Deposit Insurance Corporation TDR: Troubled-debt restructuring FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHA: U.S. Federal Housing Administration USDA: U.S. Department of Agriculture FHLB: Federal Home Loan Bank of Boston VA: U.S. Veterans Administration FRB: Federal Reserve Board WHO: World Health Organization Fannie Mae: Federal National Mortgage Association 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company GAAP: Generally accepted accounting principles in the United States 2014 Equity Plan: 2014 Equity Incentive Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2017 Tax Act: Tax Cuts and Jobs Act of 2017 HTM: Held-to-maturity 2020 Plan: 2020 Amended and Restated Nonqualified Excess Plan HUD: U.S. Department of Housing and Urban Development |
Nature of operations | Nature of operations The Company provides a variety of financial services to individuals, municipalities, commercial businesses and nonprofit customers through its branches, ATMs, telebanking, mobile and internet banking systems in northern Vermont and New Hampshire. This market area encompasses primarily retail consumers, small businesses, municipalities, agricultural producers and the tourism industry. The Company's primary deposit products are checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts and its primary lending products are commercial, real estate, municipal and consumer loans. The Company also offers fiduciary and asset management services through its Asset Management Group, an unincorporated division of Union. |
Significant concentration of credit risk | Significant concentration of credit risk The Company grants loans primarily to customers in Vermont and New Hampshire. Although it has a diversified loan portfolio, a large portion of the Company's loans are secured by commercial or residential real estate located in Vermont and New Hampshire, resulting in exposure to volatility with each state's real estate market. Additionally, the ability of borrowers to repay loans is highly dependent upon other economic factors throughout Vermont and New Hampshire. The Company typically requires the principals of any commercial borrower to obligate themselves personally on the loan. |
Use of estimates in preparation of consolidated financial statements | Use of estimates in preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term and involve inherent uncertainties relate to the determination of the ALL on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets, and asset impairment judgments, including OTTI of investment securities. These estimates involve a significant degree of complexity and subjectivity and the amount of the change that is reasonably possible, should any of these estimates prove inaccurate, cannot be estimated. |
Presentation of cash flows | Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. |
Asset management operations | Asset management operations Assets held by Union's Asset Management Group in a fiduciary or agency capacity, other than trust cash on deposit with Union, are not included in these consolidated financial statements because they are not assets of Union or the Company. |
Fair value measurement | 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; and • 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). |
Investment securities | Investment securities Debt securities the Company has the positive intent and ability to hold to maturity are classified as HTM and reported at amortized cost. Debt securities not classified as either HTM or trading are classified as AFS and reported at fair value. Debt securities purchased and held primarily for resale in the near future are classified as trading securities and are reported at fair value, with unrealized gains and losses included in earnings. The Company does not generally hold any securities classified as trading. Accretion of discounts and amortization of premiums arising at acquisition on investment securities are included in income using the effective interest method over the life of the securities to the call date. Unrealized gains and losses on investment securities AFS are excluded from earnings and reported in Accumulated OCI, net of tax and reclassification adjustment, as a separate component of stockholders' equity. The specific identification method is used to determine realized gains and losses on sales of AFS or trading securities. The Company evaluates all debt securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A debt 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 an OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement 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 an 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 held for sale | Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The estimated fair value of loans held for sale is based on current price quotes that determine the amount that the loans could be sold for in the secondary market. Loans transferred from held for sale to portfolio are transferred at the lower of cost or fair value in the aggregate. Sales are normally made without recourse. Gains and losses on the disposition of loans held for sale are determined on the specific identification basis. Net unrealized losses are recognized through a valuation allowance by charges to income. |
Loans | 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. |
Allowance for credit losses | Allowance for loan losses 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. 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 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. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. 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 credit quality of this segment. Loans originated under the PPP are also included in the this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • 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 management's estimate of 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. |
Mortgage Banking | Mortgage Banking Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The transfer of these financial assets is accounted for as a sale when control over the asset has been surrendered. Control is deemed to be surrendered when (i) the asset has been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset, and (iii) the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity. The Company records the gain on sale of the financial asset within net gains on sales of loans held for sale, net in the consolidated statements of income. Servicing assets are recognized as separate assets when servicing rights are acquired through the sale of residential mortgage loans with servicing rights retained. Capitalized servicing rights, which are reported in other assets on the consolidated statements of condition, are initially recorded at fair value and are amortized in proportion to, and over the period of, the estimated future servicing of the underlying mortgages (typically, the contractual life of the mortgage). The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income within noninterest income on the consolidated statements of income. Servicing assets are evaluated for impairment regularly based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment of the servicing assets is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If it is later determined that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded as non-interest income up to, but not in excess of, the prior impairment. |
Premises and equipment | Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statement of income. Maintenance and repairs are charged to current expense as incurred and the costs of major renovations and betterments are capitalized. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. |
Intangible assets | Intangible assets Intangible assets include goodwill, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition, as well as a core deposit intangible related to the deposits acquired (see Note 10). The core deposit intangible is amortized on a straight line basis over the estimated average life of the acquired core deposit base of 10 years. The Company evaluates the valuation and amortization of the core deposit intangible if events occur that could result in possible impairment. With respect to goodwill, in accordance with current authoritative guidance, the Company 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 is less than its carrying amount, which could result in goodwill impairment. |
Federal Home Loan Bank stock | Federal Home Loan Bank stock As a member of the FHLB, Union is required to invest in $100 par value stock of the FHLB in an amount to satisfy unpaid principal balances on qualifying loans, plus an amount to satisfy an activity based requirement. The stock is nonmarketable, and is redeemable by the FHLB at par value. Also, there is the possibility of future capital calls by the FHLB on member banks to ensure compliance with its capital plan. FHLB stock is reported in Other assets at its par value of $1.0 million and $2.5 million at December 31, 2020 and 2019, respectively. |
Company-owned life insurance | Company-owned life insurance COLI represents life insurance on the lives of certain current or former directors or employees who have provided positive consent allowing the Company to be the beneficiary of such policies. The Company utilizes COLI as tax-efficient funding for certain benefit obligations to its employees and directors, including obligations under one of the Company's nonqualified deferred compensation plans. (See Note 15.) The Company is the primary beneficiary of the insurance policies. Increases in the cash value of the policies, as well as any gain on insurance proceeds received, are recorded in Other income, and are not currently subject to income taxes. COLI is recorded at the cash value of the policies, less any applicable cash surrender charges (of which there are currently none). The Company reviews the financial strength of the insurance carriers prior to the purchase of COLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed |
Investment in real estate limited partnerships | Investment in real estate limited partnerships The Company has purchased various limited partnership interests in affordable housing partnerships. These partnerships were established to acquire, own and rent residential housing for elderly, low or moderate income residents in northern Vermont or in New Hampshire. GAAP permits an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. There were no impairment losses during the year resulting from the forfeiture or ineligibility of tax credits related to qualified affordable housing project investments. (See Note 11.) |
Advertising costs | Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statement of income. |
Earnings per common share | Earnings per common share Basic EPS is calculated based on the weighted average number of shares of common stock issued during the period, including DRIP shares issuable upon reinvestment of dividends, retroactively adjusted for stock splits and stock dividends, if any, and reduced for shares held in treasury. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potential dilutive common shares outstanding during the period. (See Note 17.) |
Income taxes | Income taxes The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on taxable income. The Company recognizes income taxes under the asset and liability method. This involves estimating the Company's actual current tax exposure as well as assessing temporary differences resulting from differing treatment of items, such as timing of the deduction of expenses, for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are netted and included in Other assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company must also assess the likelihood that any deferred tax assets will be recovered from future taxable income and to the extent that recovery is not likely, a valuation allowance must be established. A change in enacted federal income tax rates for future periods requires revaluation of deferred taxes. (See Note 14.) |
Off-balance-sheet financial instruments | Off-balance-sheet financial instruments In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to originate credit, unused lines of credit including commitments under credit card arrangements, commitments to purchase investment securities, commitments to invest in real estate limited partnerships, commercial letters of credit, standby letters of credit and risk-sharing commitments on certain sold loans. (See Notes 18 and 19.) Such financial instruments are recorded in the financial statements when they become fixed and certain. |
Comprehensive income (loss) | Comprehensive income (loss) Accounting principles generally require that 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 debt securities AFS that are not OTTI, are not reflected in the consolidated statement 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 sheet (Accumulated OCI) (See Note 24). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Transfers of financial assets | Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Stock Based Compensation | Stock Based Compensation Under the Company's 2014 Equity Plan approved by the stockholders, 50,000 shares of the Company’s common stock were authorized for equity awards of incentive stock options, nonqualified stock options, restricted stock and restricted stock units to eligible officers and (except for awards of incentive stock options) nonemployee directors. (See Note 16.) |
Segment Reporting | Segment Reporting Operating segments are the components of an entity for which separate financial information is available and evaluated regularly by the chief operating decision-maker in order to allocate resources and assess performance. The Company's chief operating decision-maker assesses consolidated financial results to make operating and strategic decisions, assess performance, and allocate resources. Therefore, the Company has determined that its business is conducted in one reportable segment and represents the consolidated financial statements of the Company. |
Recent accounting pronouncements | Recent accounting pronouncements The Company adopted 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 impact on the Company's consolidated financial statements. The Company also adopted 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 financial institution 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 guidance was subsequently amended following passage of the CARES Act, which included a provision for addressing certain COVID-19 related loan modifications. 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., up to 12 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. The agencies supplemented their interagency guidance on August 3, 2020 to provide prudent risk management and consumer protection principles for financial institutions to consider while working with borrowers near the end of their initial loan accommodation period. The interagency guidance is not expected to have a material impact on the Company’s financial statements nor is it expected that adoption of the ASU will have a material impact on the Company’s consolidated financial statements. 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 to become 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 utilizes a software package for its current calculation of the allowance for loan losses that will also be utilized for CECL implementation. 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. 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. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Acronyms, Abbreviations and Capitalized Terms | AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CARES Act: Coronavirus Aid, Relief and Economic Security Act OREO: Other real estate owned CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OTTI: Other-than-temporary impairment CFPB: Consumer Financial Protection Bureau OTT: Other-than-temporary COLI: Company-Owned Life Insurance 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 DFR: Vermont Department of Financial Regulation RSU: Restricted Stock Unit Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 SBA: U.S. Small Business Administration DRIP: Dividend Reinvestment and Stock Purchase Plan SEC: U.S. Securities and Exchange Commission EPS: Earnings per share SOX Act: Sarbanes Oxley Act of 2002 FASB: Financial Accounting Standards Board Tax Act: Tax Cut and Jobs Act FDIC: Federal Deposit Insurance Corporation TDR: Troubled-debt restructuring FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHA: U.S. Federal Housing Administration USDA: U.S. Department of Agriculture FHLB: Federal Home Loan Bank of Boston VA: U.S. Veterans Administration FRB: Federal Reserve Board WHO: World Health Organization Fannie Mae: Federal National Mortgage Association 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company GAAP: Generally accepted accounting principles in the United States 2014 Equity Plan: 2014 Equity Incentive Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2017 Tax Act: Tax Cuts and Jobs Act of 2017 HTM: Held-to-maturity 2020 Plan: 2020 Amended and Restated Nonqualified Excess Plan HUD: U.S. Department of Housing and Urban Development |
Restrictions on Cash and Cash_2
Restrictions on Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents | The nature of the Company's business requires that it maintain amounts due from correspondent banks which, at times, may exceed federally insured limits. The balances in these accounts at December 31, were as follows: 2020 2019 (Dollars in thousands) Noninterest bearing accounts $ 190 $ 365 Federal Reserve Bank of Boston 117,225 45,638 FHLB of Boston 1,578 1,125 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | Investment securities as of the balance sheet dates consisted of the following: December 31, 2020 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 6,462 $ 137 $ (51) $ 6,548 Agency MBS 61,123 1,307 (78) 62,352 State and political subdivisions 27,025 1,439 (3) 28,461 Corporate 7,817 660 (75) 8,402 Total $ 102,427 $ 3,543 $ (207) $ 105,763 December 31, 2019 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 6,349 $ 19 $ (76) $ 6,292 Agency MBS 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 |
Schedule of Unrealized Loss on Investments | 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: December 31, 2020 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 15 $ 2,005 $ (16) 8 $ 1,661 $ (35) 23 $ 3,666 $ (51) Agency MBS 19 21,698 (78) — — — 19 21,698 (78) State and political 1 575 (3) — — — 1 575 (3) Corporate — — — 3 1,424 (75) 3 1,424 (75) Total 35 $ 24,278 $ (97) 11 $ 3,085 $ (110) 46 $ 27,363 $ (207) December 31, 2019 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 4 $ 2,376 $ (22) 8 $ 2,772 $ (54) 12 $ 5,148 $ (76) Agency MBS 8 6,193 (38) 8 4,861 (43) 16 11,054 (81) State and political 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) | The following table presents the proceeds, gross gains and gross losses from sales of AFS securities: For The Years Ended December 31, 2020 2019 (Dollars in thousands) Proceeds $ 3,076 $ 10,335 Gross gains 32 62 Gross losses (21) (37) Net gains $ 11 $ 25 |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2020, were as follows: Amortized Fair Available-for-sale (Dollars in thousands) Due in one year or less $ 260 $ 261 Due from one to five years 6,862 7,273 Due from five to ten years 13,202 13,856 Due after ten years 20,980 22,021 41,304 43,411 Agency MBS 61,123 62,352 Total $ 102,427 $ 105,763 |
Loans Held for Sale and Loan _2
Loans Held for Sale and Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Transfers and Servicing [Abstract] | |
Schedule of Loans Sold During the Period | Loans sold consisted of the following during the years ended December 31: 2020 2019 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 263,063 $ 8,158 $ 157,952 $ 2,867 Commercial loans 131 10 315 28 Total $ 263,194 $ 8,168 $ 158,267 $ 2,895 |
Schedule of Capitalization and Amortization of Loan Servicing Rights | The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2020 2019 (Dollars in thousands) Capitalization of servicing rights $ 1,736 $ 862 Amortization of servicing rights 1,194 812 Net capitalization of servicing rights $ 542 $ 50 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Receivables [Abstract] | |
Schedule of Composition of Net Loans | The composition of Net loans at December 31, was as follows: 2020 2019 (Dollars in thousands) Residential real estate $ 183,166 $ 192,125 Construction real estate 57,417 69,617 Commercial real estate 320,627 289,883 Commercial 108,861 47,699 Consumer 2,601 3,562 Municipal 98,497 67,358 Gross loans 771,169 670,244 Allowance for loan losses (8,271) (6,122) Net deferred loan (fees) costs (146) 1,043 Net loans $ 762,752 $ 665,165 |
Schedule of Financing Receivable Past Due and Non Accrual Loans | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2020 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 179,794 $ 2,166 $ 211 $ 368 $ 627 $ 183,166 Construction real estate 57,116 70 67 143 21 57,417 Commercial real estate 317,748 1,130 — — 1,749 320,627 Commercial 108,749 99 — — 13 108,861 Consumer 2,595 6 — — — 2,601 Municipal 98,497 — — — — 98,497 Total $ 764,499 $ 3,471 $ 278 $ 511 $ 2,410 $ 771,169 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) | 12 Months Ended |
Dec. 31, 2020 | |
Credit Loss [Abstract] | |
Schedule of Financing Receivable, Allowance for Credit Loss | Changes in the ALL, by class of loans, were as follows for the years ended: December 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 376 (11) 1,075 64 (3) 138 561 2,200 Recoveries of amounts 28 — — — 1 — — 29 1,796 763 4,253 458 21 214 846 8,351 Amounts charged off (20) — (54) — (6) — — (80) Balance, December 31, 2020 $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 December 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 150 157 305 239 7 (6) (77) 775 Recoveries of amounts 5 — — 1 4 — — 10 1,523 774 3,238 594 34 76 285 6,524 Amounts charged off (131) — (60) (200) (11) — — (402) Balance, December 31, 2019 $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 |
Schedule of Allocation of Allowance for Loan Losses by Impairment Methodology | 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: December 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 30 $ — $ 21 $ 7 $ — $ — $ — $ 58 Collectively evaluated 1,746 763 4,178 451 15 214 846 8,213 Total allocated $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 39 $ — $ 149 $ 8 $ — $ — $ — $ 196 Collectively evaluated 1,353 774 3,029 386 23 76 285 5,926 Total allocated $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 |
Schedule of Allocation of Investment in Loans by Impairment Methodology | 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: December 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,782 $ 210 $ 2,422 $ 207 $ — $ — $ 4,621 Collectively evaluated 181,384 57,207 318,205 108,654 2,601 98,497 766,548 Total $ 183,166 $ 57,417 $ 320,627 $ 108,861 $ 2,601 $ 98,497 $ 771,169 December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,515 $ 223 $ 3,204 $ 299 $ — $ — $ 5,241 Collectively evaluated 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 |
Schedule of Financing Receivable Credit Quality Indicators | The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates: December 31, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 166,119 $ 42,853 $ 172,048 $ 98,314 $ 2,595 $ 98,497 $ 580,426 Satisfactory/Monitor 13,756 14,319 144,784 10,116 6 — 182,981 Substandard 3,291 245 3,795 431 — — 7,762 Total $ 183,166 $ 57,417 $ 320,627 $ 108,861 $ 2,601 $ 98,497 $ 771,169 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 |
Schedule of Impaired Financing Receivables | The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2020 and 2019: December 31, 2020 For The Year Ended December 31, 2020 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 208 $ 218 $ 30 Commercial real estate 1,634 1,774 21 Commercial 9 11 7 With an allowance recorded 1,851 2,003 58 Residential real estate 1,574 2,182 — Construction real estate 210 231 — Commercial real estate 788 890 — Commercial 198 200 — With no allowance recorded 2,770 3,503 — Residential real estate 1,782 2,400 30 $ 1,710 $ 73 Construction real estate 210 231 — 216 4 Commercial real estate 2,422 2,664 21 2,977 70 Commercial 207 211 7 253 17 Total $ 4,621 $ 5,506 $ 58 $ 5,156 $ 164 December 31, 2019 For The Year Ended December 31, 2019 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (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 $ 1,625 $ 149 Construction real estate 223 241 — 159 4 Commercial real estate 3,204 3,322 149 2,382 110 Commercial 299 302 8 322 23 Total $ 5,241 $ 5,925 $ 196 $ 4,488 $ 286 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2020 and 2019 totaling $514 thousand and $587 thousand, respectively. |
Schedule of Financing Receivable, Troubled Debt Restructuring | The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2020 December 31, 2019 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 32 $ 1,782 25 $ 1,515 Construction real estate 2 87 2 100 Commercial real estate 6 788 8 966 Commercial 5 207 5 290 Total 45 $ 2,864 40 $ 2,871 |
Schedule of New Troubled Debt Restructurings on Financing Receivables | The following table provides new TDR activity by class of loan for the years ended December 31, 2020 and 2019: New TDRs During the New TDRs During the Year Ended December 31, 2020 Year Ended December 31,2019 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 8 $ 547 $ 549 1 $ 77 $ 79 Commercial — — — 1 15 15 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Class of Premises and Equipment | The major classes of premises and equipment and accumulated depreciation at December 31, were as follows: 2020 2019 (Dollars in thousands) Land and land improvements $ 4,052 $ 3,922 Building and improvements 18,697 18,490 Furniture and equipment 10,329 10,402 Construction in progress and deposits on equipment 170 91 33,248 32,905 Less accumulated depreciation (13,209) (11,982) $ 20,039 $ 20,923 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | The right-of-use assets and lease liabilities related to operating leases were as follows at December 31: 2020 2019 (Dollars in thousands) Right-of-use assets included in Other assets $ 1,732 $ 1,861 Lease liabilities included in Accrued interest and other liabilities 1,789 1,894 |
Schedule of Lease Maturity | Total estimated rental commitments for operating leases were as follows as of December 31, 2020: (Dollars in thousands) 2021 $ 173 2022 125 2023 115 2024 111 2025 112 Thereafter 2,225 Total $ 2,861 |
Schedule of Lease Liability Reconciliation | A reconciliation of the operating lease undiscounted cash flows in the maturity analysis above and the operating lease liability recognized in the consolidated balance sheet is shown below: December 31, 2020 (Dollars in thousands) Undiscounted cash flows $ 2,861 Discount effect of cash flows (1,072) Lease liabilities $ 1,789 |
Investment in Real Estate Lim_2
Investment in Real Estate Limited Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Investment in Real Estate Limited Partnerships [Abstract] | |
Investment Holdings, Schedule of Investments | The following is a summary of investments in real estate limited partnerships at December 31: 2020 2019 (Dollars in thousands) Carrying values of investment carried at equity included in Other assets $ 6,584 $ 4,402 Capital contribution payable included in Accrued interest and other liabilities 1,351 493 |
Schedule of Investment in Real Estate Limited Partnerships Income Tax Impact | The following table presents the net impact on the Provision for income taxes related to investments carried at equity: For The Years Ended December 31, 2020 2019 (Dollars in thousands) Provision for undistributed net losses of limited partnership investments $ 935 $ 745 Federal income tax credits related to limited partnership investments (987) (803) Net effect on Provision for income taxes $ (52) $ (58) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Deposits [Abstract] | |
Schedule of Interest Bearing Deposits | The following is a summary of interest bearing deposits at December 31: 2020 2019 (Dollars in thousands) Interest bearing checking accounts $ 231,465 $ 173,406 Savings and money market accounts 405,904 285,534 Time deposits, $100,000 and over 70,373 73,048 Other time deposits 71,315 75,605 $ 779,057 $ 607,593 |
Schedule of Time Deposits by Maturity | The following is a summary of time deposits by maturity at December 31, 2020: (Dollars in thousands) 2021 $ 114,919 2022 15,640 2023 5,212 2024 3,311 2025 2,606 $ 141,688 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt | The contractual payments due for FHLB option advance borrowings, as of December 31, 2020, were as follows: (Dollars in thousands) 2021 $ 164 2022 — 2023 7,000 $ 7,164 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of the Provision for Income Taxes | The components of the provision for income taxes for the years ended December 31, were as follows: 2020 2019 (Dollars in thousands) Current federal tax provision $ 3,134 $ 1,351 Current state tax provision 62 41 Deferred tax (benefit) provision (777) 438 $ 2,419 $ 1,830 |
Schedule of Effective Income Tax Rate Reconciliation | The total provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 21% primarily due to the following for the years ended December 31: 2020 2019 (Dollars in thousands) Computed “expected” tax expense $ 3,197 $ 2,620 State taxes 49 32 Tax exempt interest (555) (513) Increase in cash surrender value of COLI (67) (59) Tax credits (1,013) (857) Equity in losses of limited partnerships 788 640 Non-deductible expenses 44 46 Other (24) (79) $ 2,419 $ 1,830 |
Schedule of Deferred Tax Assets and Liabilities | Listed below are the significant components of the net deferred tax liability at December 31: 2020 2019 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,798 $ 1,329 Deferred compensation 300 227 Loans held for sale 271 32 Core deposit intangible 119 106 Other 55 37 Total deferred tax asset 2,543 1,731 Components of the deferred tax liability Depreciation (1,254) (1,402) Mortgage servicing rights (490) (371) Limited partnership investments (86) (50) Unrealized gain on investment securities available-for-sale (701) (262) Goodwill (309) (276) Prepaid expenses (132) (136) Total deferred tax liability (2,972) (2,497) Net deferred tax liability $ (429) $ (766) |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Retirement Benefits [Abstract] | |
Schedule of Costs of Retirement Plans | The following table summarizes employer contributions for the years ended December 31, 2020 and 2019: 2020 2019 (Dollars in thousands) Employer matching $ 318 $ 270 Profit sharing $ 339 $ 280 Safe harbor $ 382 $ 336 Total $ 1,039 $ 886 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Summary of RSUs | The following table presents a summary of RSUs from the respective Award Plan Summaries as of December 31, 2020: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2019 Award 3,734 $ 47.75 500 2020 Award 8,918 36.26 5,139 Total 12,652 5,639 |
Schedule of Share-based Payment Arrangement, Option, Activity | The following summarizes the stock option activity under the 2014 Equity Plan for the year ended December 31, 2020: Shares Weighted Weighted Period (Dollars in thousands, except per share data) Outstanding at January 1, 2020 4,500 $ 24.00 Exercised — — Forfeited/expired — — Outstanding at December 31, 2020 4,500 $ 24.00 0.96 $ 8 Exercisable at December 31, 2020 4,500 $ 24.00 0.96 $ 8 The following summarizes the stock option activity under the 2008 ISO Plan for the year ended December 31, 2020: Shares Weighted Weighted Period (Dollars in thousands, except per share data) Outstanding at January 1, 2020 1,000 $ 22.00 Exercised (1,000) $ 22.00 Forfeited/expired — — Outstanding at December 31, 2020 — Exercisable at December 31, 2020 — |
Schedule of Cash Proceeds Received from Share-based Payment Awards | The following summarizes information regarding the proceeds received by the Company from the exercise of stock options during the years ended December 31: 2020 2019 (Dollars in thousands, except per share data) Proceeds received $ 22 $ 44 Number of shares exercised 1,000 2,000 Weighted average price per share $ 22.00 $ 22.00 Total intrinsic value of options exercised $ 14 $ 30 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method | The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the years ended December 31, 2020 and 2019: 2020 2019 (Dollars in thousands, except per share data) Net income $ 12,805 $ 10,648 Weighted average common shares outstanding for basic EPS 4,474,649 4,468,336 Dilutive effect of stock-based awards (1) 18,508 12,856 Weighted-average common and potential common shares for diluted EPS 4,493,157 4,481,192 Earnings per common share: Basic EPS $ 2.86 $ 2.38 Diluted EPS $ 2.85 $ 2.38 ____________________ (1) Dilutive effect of stock based awards represents the effect of the assumed exercise of stock options and vesting of restricted stock units. Unvested awards do not have dividend or dividend equivalent rights. |
Financial Instruments With Of_2
Financial Instruments With Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Schedule of Contractual Amount of Financial Instruments with Credit Risk | The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31: Contract or 2020 2019 (Dollars in thousands) Commitments to originate loans $ 61,431 $ 35,689 Unused lines of credit 132,502 103,623 Standby and commercial letters of credit 3,115 2,308 Credit card arrangements 308 311 MPF credit enhancement obligation, net (See Note 19) 728 687 Commitment to purchase investment in a real estate limited partnership 2,000 3,000 Total $ 200,084 $ 145,618 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis at December 31, 2020 and 2019, segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Quoted Prices in Active Markets for Significant Other Observable Inputs Significant December 31, 2020: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,548 $ — $ 6,548 $ — Agency MBS 62,352 — 62,352 — State and political subdivisions 28,461 — 28,461 — Corporate 8,402 — 8,402 — Total debt securities $ 105,763 $ — $ 105,763 $ — Other investments: Mutual funds $ 1,047 $ 1,047 $ — $ — December 31, 2019: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,292 $ — $ 6,292 $ — Agency MBS 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 $ — $ — |
Schedule of Fair Value, by Balance Sheet Grouping | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: December 31, 2020 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 122,771 $ 122,771 $ 122,771 $ — $ — Interest bearing deposits in banks 12,699 12,699 — 12,699 — Investment securities 106,810 106,810 1,047 105,763 — Loans held for sale 32,188 33,437 — 33,437 — Loans, net Residential real estate 181,355 185,890 — — 185,890 Construction real estate 56,643 56,882 — — 56,882 Commercial real estate 315,522 324,085 — — 324,085 Commercial 108,382 106,358 — — 106,358 Consumer 2,586 2,557 — — 2,557 Municipal 98,264 98,973 — — 98,973 Accrued interest receivable 4,129 4,129 — 446 3,683 Nonmarketable equity securities 1,150 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 215,245 215,245 215,245 — — Interest bearing 637,369 637,369 637,369 — — Time 141,688 142,605 — 142,605 — Borrowed funds Long-term 7,164 7,585 — 7,585 — Accrued interest payable 108 108 — 108 — December 31, 2019 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (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 — |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2020 2019 (Dollars in thousands) Balance, January 1, $ 1,300 $ 749 New loans and advances on lines 1,632 1,045 Repayments (1,222) (690) Other, net (979) 196 Balance, December 31, $ 731 $ 1,300 Balance available on lines of credit or loan commitments $ 1,123 $ 1,153 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables: Actual For Capital To Be Well As of December 31, 2020 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 83,464 13.87 % $ 48,141 8.00 % N/A N/A Tier 1 capital to risk weighted assets 75,933 12.62 % 36,101 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 75,933 12.62 % 27,076 4.50 % N/A N/A Tier 1 capital to average assets 75,933 7.31 % 41,550 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 82,842 13.79 % $ 48,059 8.00 % $ 60,074 10.00 % Tier 1 capital to risk weighted assets 75,324 12.54 % 36,040 6.00 % 48,054 8.00 % Common Equity Tier 1 to risk weighted assets 75,324 12.54 % 27,030 4.50 % 39,044 6.50 % Tier 1 capital to average assets 75,324 7.26 % 41,501 4.00 % 51,876 5.00 % Actual For Capital To be Well As of December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 74,510 13.02 % $ 45,782 8.00 % N/A N/A Tier 1 capital to risk weighted assets 68,388 11.95 % 34,337 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 68,388 11.95 % 25,753 4.50 % N/A N/A Tier 1 capital to average assets 68,388 8.09 % 33,814 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 74,167 12.98 % $ 45,715 8.00 % $ 57,139 10.00 % Tier 1 capital to risk weighted assets 68,045 11.91 % 34,280 6.00 % 45,706 8.00 % Common Equity Tier 1 to risk weighted assets 68,045 11.91 % 25,710 4.50 % 37,136 6.50 % Tier 1 capital to average assets 68,045 8.06 % 33,769 4.00 % 42,212 5.00 % |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated OCI | The components of Accumulated OCI, net of tax, at December 31 were: 2020 2019 (Dollars in thousands) Net unrealized gain on investment securities available-for-sale $ 2,636 $ 986 |
Schedule of Comprehensive Income | The following table discloses the tax effects allocated to each component of OCI for the years ended: December 31, 2020 December 31, 2019 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains arising during the year on investment securities available-for-sale $ 2,099 $ (440) $ 1,659 $ 2,568 $ (539) $ 2,029 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (11) 2 (9) (25) 5 (20) Total other comprehensive income $ 2,088 $ (438) $ 1,650 $ 2,543 $ (534) $ 2,009 |
Schedule of Comprehensive Income Reclassification Adjustments | The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31: Reclassification Adjustment Description 2020 2019 Affected Line Item in (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (11) $ (25) Net gains on sales of investment securities available-for-sale Tax benefit 2 5 Provision for income taxes Total reclassifications $ (9) $ (20) Net income |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2020 and 2019 2020 2019 (Dollars in thousands) ASSETS Cash $ 93 $ 46 Other investments 60 27 Investment in subsidiary - Union 80,257 71,500 Other assets 869 712 Total assets $ 81,279 $ 72,285 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Other liabilities $ 412 $ 442 Total liabilities 412 442 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,954,732 shares issued at December 31, 2020 and 4,948,245 shares issued at December 31, 2019 9,910 9,897 Additional paid-in capital 1,393 1,124 Retained earnings 71,097 64,019 Treasury stock at cost; 474,632 shares at December 31, 2020 and 476,268 shares at December 31, 2019 (4,169) (4,183) Accumulated other comprehensive income 2,636 986 Total stockholders' equity 80,867 71,843 Total liabilities and stockholders' equity $ 81,279 $ 72,285 |
Schedule of Condensed Income Statement | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2020 and 2019 2020 2019 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 6,350 $ 5,925 Other income 28 24 Total revenues 6,378 5,949 Expenses Interest 18 16 Administrative and other 539 536 Total expenses 557 552 Income before applicable income tax benefit and equity in undistributed 5,821 5,397 Applicable income tax benefit (113) (113) Income before equity in undistributed net income of subsidiary 5,934 5,510 Equity in undistributed net income - Union 6,871 5,138 Net income $ 12,805 $ 10,648 |
Schedule of Condensed Cash Flow Statement | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2020 and 2019 2020 2019 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 12,805 $ 10,648 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (6,871) (5,138) (Increase) decrease in other assets (157) 55 Decrease in other liabilities (30) (137) Net cash provided by operating activities 5,747 5,428 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of other investments — 47 Purchases of other investments (33) (7) Net cash (used in) provided by investing activities (33) 40 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (5,689) (5,501) Issuance of common stock 22 44 Purchase of treasury stock — (13) Net cash used in financing activities (5,667) (5,470) Net decrease in cash 47 (2) Cash, beginning of year 46 48 Cash, end of year $ 93 $ 46 Supplemental Disclosures of Cash Flow Information Interest paid $ 18 $ 16 Dividends paid on Common Stock: Dividends declared $ 5,727 $ 5,540 Dividends reinvested (38) (39) $ 5,689 $ 5,501 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information (Unaudited) | A summary of consolidated financial data for each of the four quarters of 2020 and 2019 is presented below: Quarters in 2020 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 8,963 $ 9,139 $ 9,343 $ 9,305 Interest expense 1,457 1,361 1,158 1,171 Net interest income 7,506 7,778 8,185 8,134 Provision for loan losses 300 500 800 600 Noninterest income 2,518 2,988 5,508 4,989 Noninterest expenses 7,172 7,111 7,995 7,904 Net income 2,196 2,668 4,147 3,794 Earnings per common share $ 0.49 $ 0.60 $ 0.92 $ 0.85 Quarters in 2019 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 8,592 $ 8,904 $ 9,140 $ 9,234 Interest expense 1,227 1,397 1,493 1,483 Net interest income 7,365 7,507 7,647 7,751 Provision for loan losses 50 150 150 425 Noninterest income 2,232 2,471 2,723 3,029 Noninterest expenses 6,527 6,800 7,005 7,140 Net income 2,621 2,530 2,738 2,759 Earnings per common share $ 0.59 $ 0.56 $ 0.62 $ 0.61 |
Other Noninterest Income and _2
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2020 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Income and Other Noninterest Expenses | The components of other noninterest income and other noninterest expenses for the years ended December 31, 2020 and 2019 were as follows: 2020 2019 Income (Dollars in thousands) Income from mortgage servicing rights, net $ 542 $ 50 Other income 411 553 Total other income $ 953 $ 603 Expenses ATM network and debit card expense $ 800 $ 790 Advertising and public relations 544 555 Vermont franchise tax 759 678 Professional fees 774 701 Director and advisory board fees 505 502 Other expenses 4,138 3,934 Total other expenses $ 7,520 $ 7,160 |
Significant Accounting Polici_4
Significant Accounting Policies Narrative Data (Details) $ in Millions | 12 Months Ended | |
Dec. 31, 2020USD ($)segmentshares | Dec. 31, 2019USD ($) | |
Class of Stock [Line Items] | ||
Amortization period | 10 years | |
Federal home loan bank stock | $ | $ 1 | $ 2.5 |
COLI limit, percentage | 15.00% | |
Number of reportable segments | segment | 1 | |
2014 Equity Plan | ||
Class of Stock [Line Items] | ||
Shares authorized for equity awards (in shares) | shares | 50,000 |
Restrictions on Cash and Cash_3
Restrictions on Cash and Cash Equivalents Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Noninterest bearing accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured cash accounts | $ 190 | $ 365 |
Federal Reserve Bank of Boston | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured cash accounts | 117,225 | 45,638 |
FHLB of Boston | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured cash accounts | $ 1,578 | $ 1,125 |
Restrictions on Cash and Cash_4
Restrictions on Cash and Cash Equivalents Narrative Data (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Cash and Cash Equivalents [Abstract] | ||
Federal reserve contracted clearing balance | $ 0 | $ 0 |
Federal reserve balance requirement | $ 1,800,000 |
Interest Bearing Deposits In _2
Interest Bearing Deposits In Banks Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Interest Bearing Deposits in Banks [Abstract] | ||
Interest bearing deposits in banks | $ 12,699 | $ 6,565 |
Interest bearing deposits in banks, interest rate, ranging from | 0.15% | |
Interest bearing deposits in banks, interest rate, ranging to | 3.55% | |
Interest bearing deposits in banks scheduled to mature in 2020 | $ 5,700 |
Investment Securities Available
Investment Securities Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Available-for-sale | ||
Amortized Cost | $ 102,427 | $ 86,145 |
Gross Unrealized Gains | 3,543 | 1,514 |
Gross Unrealized Losses | (207) | (266) |
Fair Value | 105,763 | 87,393 |
U.S. Government-sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 6,462 | 6,349 |
Gross Unrealized Gains | 137 | 19 |
Gross Unrealized Losses | (51) | (76) |
Fair Value | 6,548 | 6,292 |
Agency MBS | ||
Available-for-sale | ||
Amortized Cost | 61,123 | 45,503 |
Gross Unrealized Gains | 1,307 | 602 |
Gross Unrealized Losses | (78) | (81) |
Fair Value | 62,352 | 46,024 |
State and political subdivisions | ||
Available-for-sale | ||
Amortized Cost | 27,025 | 26,489 |
Gross Unrealized Gains | 1,439 | 515 |
Gross Unrealized Losses | (3) | (39) |
Fair Value | 28,461 | 26,965 |
Corporate | ||
Available-for-sale | ||
Amortized Cost | 7,817 | 7,804 |
Gross Unrealized Gains | 660 | 378 |
Gross Unrealized Losses | (75) | (70) |
Fair Value | $ 8,402 | $ 8,112 |
Investment Securities Narrative
Investment Securities Narrative Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Investment securities HTM | $ 0 | $ 0 |
Investment securities pledged as collateral | 0 | $ 0 |
Other than temporary declines in available-for-sale securities | $ 0 |
Investment Securities Schedule
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Less Than 12 Months | ||
Number of Securities | loan | 35 | 21 |
Fair Value | $ 24,278 | $ 12,382 |
Gross Unrealized Loss | $ (97) | $ (98) |
12 Months and Over | ||
Number of Securities | loan | 11 | 20 |
Fair Value | $ 3,085 | $ 9,367 |
Gross Unrealized Loss | $ (110) | $ (168) |
Total | ||
Number of Securities | loan | 46 | 41 |
Fair Value | $ 27,363 | $ 21,749 |
Gross Unrealized Loss | $ (207) | $ (266) |
U.S. Government-sponsored enterprises | ||
Less Than 12 Months | ||
Number of Securities | loan | 15 | 4 |
Fair Value | $ 2,005 | $ 2,376 |
Gross Unrealized Loss | $ (16) | $ (22) |
12 Months and Over | ||
Number of Securities | loan | 8 | 8 |
Fair Value | $ 1,661 | $ 2,772 |
Gross Unrealized Loss | $ (35) | $ (54) |
Total | ||
Number of Securities | loan | 23 | 12 |
Fair Value | $ 3,666 | $ 5,148 |
Gross Unrealized Loss | $ (51) | $ (76) |
Agency MBS | ||
Less Than 12 Months | ||
Number of Securities | loan | 19 | 8 |
Fair Value | $ 21,698 | $ 6,193 |
Gross Unrealized Loss | $ (78) | $ (38) |
12 Months and Over | ||
Number of Securities | loan | 0 | 8 |
Fair Value | $ 0 | $ 4,861 |
Gross Unrealized Loss | $ 0 | $ (43) |
Total | ||
Number of Securities | loan | 19 | 16 |
Fair Value | $ 21,698 | $ 11,054 |
Gross Unrealized Loss | $ (78) | $ (81) |
State and political subdivisions | ||
Less Than 12 Months | ||
Number of Securities | loan | 1 | 9 |
Fair Value | $ 575 | $ 3,813 |
Gross Unrealized Loss | $ (3) | $ (38) |
12 Months and Over | ||
Number of Securities | loan | 0 | 1 |
Fair Value | $ 0 | $ 304 |
Gross Unrealized Loss | $ 0 | $ (1) |
Total | ||
Number of Securities | loan | 1 | 10 |
Fair Value | $ 575 | $ 4,117 |
Gross Unrealized Loss | $ (3) | $ (39) |
Corporate | ||
Less Than 12 Months | ||
Number of Securities | loan | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Loss | $ 0 | $ 0 |
12 Months and Over | ||
Number of Securities | loan | 3 | 3 |
Fair Value | $ 1,424 | $ 1,430 |
Gross Unrealized Loss | $ (75) | $ (70) |
Total | ||
Number of Securities | loan | 3 | 3 |
Fair Value | $ 1,424 | $ 1,430 |
Gross Unrealized Loss | $ (75) | $ (70) |
Investment Securities Schedul_2
Investment Securities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 3,076 | $ 10,335 |
Gross gains | 32 | 62 |
Gross losses | (21) | (37) |
Net gains | $ 11 | $ 25 |
Investment Securities Debt Secu
Investment Securities Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Due in one year or less | $ 260 | |
Due from one to five years | 6,862 | |
Due from five to ten years | 13,202 | |
Due after ten years | 20,980 | |
Debt securities with single maturity date, amortized cost | 41,304 | |
Agency MBS | 61,123 | |
Amortized Cost | 102,427 | $ 86,145 |
Fair Value | ||
Due in one year or less | 261 | |
Due from one to five years | 7,273 | |
Due from five to ten years | 13,856 | |
Due after ten years | 22,021 | |
Debt securities with single maturity date, fair value | 43,411 | |
Agency MBS | 62,352 | |
Fair Value | $ 105,763 | $ 87,393 |
Loans Held for Sale and Loan _3
Loans Held for Sale and Loan Servicing Narrative Data (Details) - USD ($) | Dec. 31, 2020 | Dec. 31, 2019 |
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance of loans serviced for others | $ 629,500,000 | $ 579,900,000 |
Loan servicing rights, unamortized balance | 2,300,000 | 1,700,000 |
Loan servicing rights, valuation allowance | 0 | 0 |
Credit Enhancement Obligation | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual risk sharing commitments, maximum liability | $ 747,000 | $ 705,000 |
Loans Held for Sale and Loan _4
Loans Held for Sale and Loan Servicing Loans Sold During the Period (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Sold | $ 263,194 | $ 158,267 |
Net Gains on Sale | 8,168 | 2,895 |
Residential loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Sold | 263,063 | 157,952 |
Net Gains on Sale | 8,158 | 2,867 |
Commercial loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Sold | 131 | 315 |
Net Gains on Sale | $ 10 | $ 28 |
Loans Held for Sale and Loan _5
Loans Held for Sale and Loan Servicing Capitalization and Amortization of Loan Servicing Costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | ||
Capitalization of servicing rights | $ 1,736 | $ 862 |
Amortization of servicing rights | 1,194 | 812 |
Net capitalization of servicing rights | $ 542 | $ 50 |
Loans Composition of Net Loans
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 771,169 | $ 670,244 | |
Allowance for loan losses | (8,271) | (6,122) | $ (5,739) |
Net deferred loan (fees) costs | (146) | 1,043 | |
Net loans | 762,752 | 665,165 | |
Residential loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 183,166 | 192,125 | |
Allowance for loan losses | (1,776) | (1,392) | (1,368) |
Construction real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 57,417 | 69,617 | |
Allowance for loan losses | (763) | (774) | (617) |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 320,627 | 289,883 | |
Allowance for loan losses | (4,199) | (3,178) | (2,933) |
Commercial loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 108,861 | 47,699 | |
Allowance for loan losses | (458) | (394) | (354) |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 2,601 | 3,562 | |
Allowance for loan losses | (15) | (23) | (23) |
Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 98,497 | 67,358 | |
Allowance for loan losses | $ (214) | $ (76) | $ (82) |
Loans Narrative Data (Details)
Loans Narrative Data (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Receivables [Abstract] | ||
Number of PPP loans | loan | 679 | |
PPP loans, outstanding amount | $ 66,200 | |
PPP loans, origination fee | 2,400 | |
PPP loans, origination fee recognized | 953 | |
Loans pledged as collateral | $ 210,000 | $ 207,700 |
Number of residential real estate loans in process of foreclosure | loan | 0 | 2 |
Recorded investment in residential real estate loans in process of foreclosure | $ 64 | |
Aggregate interest on nonaccrual loans not recognized | $ 420 | $ 271 |
Loans Past Due Loans (Details)
Loans Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Loans, current | $ 764,499 | $ 661,111 |
Loans, nonaccrual | 2,410 | 2,323 |
Loans | 771,169 | 670,244 |
30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 3,471 | 4,147 |
60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 278 | 1,484 |
90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 511 | 1,179 |
Residential loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, current | 179,794 | 187,022 |
Loans, nonaccrual | 627 | 272 |
Loans | 183,166 | 192,125 |
Residential loans | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 2,166 | 2,716 |
Residential loans | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 211 | 1,304 |
Residential loans | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 368 | 811 |
Construction real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, current | 57,116 | 68,731 |
Loans, nonaccrual | 21 | 29 |
Loans | 57,417 | 69,617 |
Construction real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 70 | 470 |
Construction real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 67 | 19 |
Construction real estate | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 143 | 368 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, current | 317,748 | 286,795 |
Loans, nonaccrual | 1,749 | 1,998 |
Loans | 320,627 | 289,883 |
Commercial real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 1,130 | 940 |
Commercial real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 150 |
Commercial real estate | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 0 |
Commercial loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, current | 108,749 | 47,673 |
Loans, nonaccrual | 13 | 21 |
Loans | 108,861 | 47,699 |
Commercial loans | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 99 | 0 |
Commercial loans | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 5 |
Commercial loans | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, current | 2,595 | 3,532 |
Loans, nonaccrual | 0 | 3 |
Loans | 2,601 | 3,562 |
Consumer | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 6 | 21 |
Consumer | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 6 |
Consumer | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 0 |
Municipal | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, current | 98,497 | 67,358 |
Loans, nonaccrual | 0 | 0 |
Loans | 98,497 | 67,358 |
Municipal | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 0 |
Municipal | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | 0 | 0 |
Municipal | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, past due | $ 0 | $ 0 |
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 | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | $ 6,122 | $ 5,739 |
Provision (credit) for loan losses | 2,200 | 775 |
Recoveries of amounts charged off | 29 | 10 |
Balance, before amounts charged off | 8,351 | 6,524 |
Amounts charged off | (80) | (402) |
Balance, end of year | 8,271 | 6,122 |
Residential loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 1,392 | 1,368 |
Provision (credit) for loan losses | 376 | 150 |
Recoveries of amounts charged off | 28 | 5 |
Balance, before amounts charged off | 1,796 | 1,523 |
Amounts charged off | (20) | (131) |
Balance, end of year | 1,776 | 1,392 |
Construction real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 774 | 617 |
Provision (credit) for loan losses | (11) | 157 |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 763 | 774 |
Amounts charged off | 0 | 0 |
Balance, end of year | 763 | 774 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 3,178 | 2,933 |
Provision (credit) for loan losses | 1,075 | 305 |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 4,253 | 3,238 |
Amounts charged off | (54) | (60) |
Balance, end of year | 4,199 | 3,178 |
Commercial loans | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 394 | 354 |
Provision (credit) for loan losses | 64 | 239 |
Recoveries of amounts charged off | 0 | 1 |
Balance, before amounts charged off | 458 | 594 |
Amounts charged off | 0 | (200) |
Balance, end of year | 458 | 394 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 23 | 23 |
Provision (credit) for loan losses | (3) | 7 |
Recoveries of amounts charged off | 1 | 4 |
Balance, before amounts charged off | 21 | 34 |
Amounts charged off | (6) | (11) |
Balance, end of year | 15 | 23 |
Municipal | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 76 | 82 |
Provision (credit) for loan losses | 138 | (6) |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 214 | 76 |
Amounts charged off | 0 | 0 |
Balance, end of year | 214 | 76 |
Unallocated | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 285 | 362 |
Provision (credit) for loan losses | 561 | (77) |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 846 | 285 |
Amounts charged off | 0 | 0 |
Balance, end of year | $ 846 | $ 285 |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Credit Quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | $ 58 | $ 196 | |
Collectively evaluated for impairment | 8,213 | 5,926 | |
Total allocated | 8,271 | 6,122 | $ 5,739 |
Residential loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 30 | 39 | |
Collectively evaluated for impairment | 1,746 | 1,353 | |
Total allocated | 1,776 | 1,392 | 1,368 |
Construction real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 763 | 774 | |
Total allocated | 763 | 774 | 617 |
Commercial real estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 21 | 149 | |
Collectively evaluated for impairment | 4,178 | 3,029 | |
Total allocated | 4,199 | 3,178 | 2,933 |
Commercial loans | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 7 | 8 | |
Collectively evaluated for impairment | 451 | 386 | |
Total allocated | 458 | 394 | 354 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 15 | 23 | |
Total allocated | 15 | 23 | 23 |
Municipal | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 214 | 76 | |
Total allocated | 214 | 76 | 82 |
Unallocated | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 846 | 285 | |
Total allocated | $ 846 | $ 285 | $ 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 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 4,621 | $ 5,241 |
Collectively evaluated for impairment | 766,548 | 665,003 |
Total | 771,169 | 670,244 |
Residential loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 1,782 | 1,515 |
Collectively evaluated for impairment | 181,384 | 190,610 |
Total | 183,166 | 192,125 |
Construction real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 210 | 223 |
Collectively evaluated for impairment | 57,207 | 69,394 |
Total | 57,417 | 69,617 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 2,422 | 3,204 |
Collectively evaluated for impairment | 318,205 | 286,679 |
Total | 320,627 | 289,883 |
Commercial loans | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 207 | 299 |
Collectively evaluated for impairment | 108,654 | 47,400 |
Total | 108,861 | 47,699 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,601 | 3,562 |
Total | 2,601 | 3,562 |
Municipal | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 98,497 | 67,358 |
Total | $ 98,497 | $ 67,358 |
Allowance for Loan Losses and_6
Allowance for Loan Losses and Credit Quality Loan Ratings by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 771,169 | $ 670,244 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 580,426 | 497,260 |
Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 182,981 | 164,374 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,762 | 8,610 |
Residential loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 183,166 | 192,125 |
Residential loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 166,119 | 174,798 |
Residential loans | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 13,756 | 14,520 |
Residential loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,291 | 2,807 |
Construction real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 57,417 | 69,617 |
Construction real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 42,853 | 47,326 |
Construction real estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 14,319 | 21,819 |
Construction real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 245 | 472 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 320,627 | 289,883 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 172,048 | 168,654 |
Commercial real estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 144,784 | 117,004 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,795 | 4,225 |
Commercial loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 108,861 | 47,699 |
Commercial loans | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 98,314 | 35,625 |
Commercial loans | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 10,116 | 10,974 |
Commercial loans | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 431 | 1,100 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,601 | 3,562 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,595 | 3,499 |
Consumer | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6 | 57 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 6 |
Municipal | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 98,497 | 67,358 |
Municipal | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 98,497 | 67,358 |
Municipal | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Municipal | Substandard | ||
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 | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | ||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, recorded investment | $ 1,851 | $ 1,991 | |
With an allowance recorded, principal balance | 2,003 | 2,023 | |
Related Allowance | 58 | 196 | |
With no allowance recorded, recorded investment | [1] | 2,770 | 3,250 |
With no allowance recorded, principal balance | [1] | 3,503 | 3,902 |
Total, recorded investment | [1] | 4,621 | 5,241 |
Total, principal balance | [1] | 5,506 | 5,925 |
Average Recorded Investment | 5,156 | 4,488 | |
Interest Income Recognized | 164 | 286 | |
Guarantees on impaired loans | (514) | (587) | |
Residential loans | |||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, recorded investment | 208 | 218 | |
With an allowance recorded, principal balance | 218 | 228 | |
Related Allowance | 30 | 39 | |
With no allowance recorded, recorded investment | [1] | 1,574 | 1,297 |
With no allowance recorded, principal balance | [1] | 2,182 | 1,832 |
Total, recorded investment | [1] | 1,782 | 1,515 |
Total, principal balance | [1] | 2,400 | 2,060 |
Average Recorded Investment | 1,710 | 1,625 | |
Interest Income Recognized | 73 | 149 | |
Construction real estate | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
With no allowance recorded, recorded investment | 210 | 223 | |
With no allowance recorded, principal balance | 231 | 241 | |
Total, recorded investment | 210 | 223 | |
Total, principal balance | 231 | 241 | |
Average Recorded Investment | 216 | 159 | |
Interest Income Recognized | 4 | 4 | |
Commercial real estate | |||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, recorded investment | 1,634 | 1,762 | |
With an allowance recorded, principal balance | 1,774 | 1,783 | |
Related Allowance | 21 | 149 | |
With no allowance recorded, recorded investment | [1] | 788 | 1,442 |
With no allowance recorded, principal balance | [1] | 890 | 1,539 |
Total, recorded investment | [1] | 2,422 | 3,204 |
Total, principal balance | [1] | 2,664 | 3,322 |
Average Recorded Investment | 2,977 | 2,382 | |
Interest Income Recognized | 70 | 110 | |
Commercial loans | |||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, recorded investment | 9 | 11 | |
With an allowance recorded, principal balance | 11 | 12 | |
Related Allowance | 7 | 8 | |
With no allowance recorded, recorded investment | [1] | 198 | 288 |
With no allowance recorded, principal balance | [1] | 200 | 290 |
Total, recorded investment | [1] | 207 | 299 |
Total, principal balance | [1] | 211 | 302 |
Average Recorded Investment | 253 | 322 | |
Interest Income Recognized | $ 17 | $ 23 | |
[1] | Does not reflect government guaranties on impaired loans as of December 31, 2020 and 2019 totaling $514 thousand and $587 thousand, respectively. |
Allowance for Loan Losses and_8
Allowance for Loan Losses and Credit Quality Troubled Debt Restructured Loans (Details) $ in Thousands | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 45 | 40 |
Principal Balance | $ | $ 2,864 | $ 2,871 |
Residential loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 32 | 25 |
Principal Balance | $ | $ 1,782 | $ 1,515 |
Construction real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Principal Balance | $ | $ 87 | $ 100 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 6 | 8 |
Principal Balance | $ | $ 788 | $ 966 |
Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 5 | 5 |
Principal Balance | $ | $ 207 | $ 290 |
Allowance for Loan Losses and_9
Allowance for Loan Losses and Credit Quality New Troubled Debt Restructure Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Residential loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | loan | 8 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 547 | $ 77 |
Post-Modification Outstanding Recorded Investment | $ 549 | $ 79 |
Commercial loans | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | loan | 0 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 15 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 15 |
Allowance for Loan Losses an_10
Allowance for Loan Losses and Credit Quality Narrative Data (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($)loan | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of TDR loans modified within the previous twelve months that had subsequently defaulted | loan | 0 | 1 |
Troubled debt restructuring, recorded balance | $ 79 | |
Modifications, outstanding loan balance | $ 175,500 | |
Modifications, accrued interest | 1,200 | |
Modifications subject to modification terms | 37,600 | |
Modifications subject to modification terms, accrued interest | $ 352 |
Premises and Equipment Class of
Premises and Equipment Class of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 33,248 | $ 32,905 |
Less accumulated depreciation | (13,209) | (11,982) |
Premises and equipment, net | 20,039 | 20,923 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,052 | 3,922 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 18,697 | 18,490 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 10,329 | 10,402 |
Construction in progress and deposits on equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 170 | $ 91 |
Premises and Equipment Narrativ
Premises and Equipment Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,891 | $ 1,567 |
Leases Narrative Data (Details)
Leases Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Leases [Abstract] | ||
Weighted average remaining operating lease term | 23 years 25 days | |
Weighted average operating lease discount rate | 3.88% | |
Operating lease cost | $ 206 | $ 215 |
Rental income | $ 230 | $ 232 |
Leases Operating Lease Right-of
Leases Operating Lease Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Operating lease right-of-use assets | $ 1,732 | $ 1,861 |
Operating lease liabilities | $ 1,789 | $ 1,894 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesAndOtherLiabilities | us-gaap:AccruedLiabilitiesAndOtherLiabilities |
Lease Maturity (Details)
Lease Maturity (Details) $ in Thousands | Dec. 31, 2020USD ($) |
Leases [Abstract] | |
2021 | $ 173 |
2022 | 125 |
2023 | 115 |
2024 | 111 |
2025 | 112 |
Thereafter | 2,225 |
Total | $ 2,861 |
Lease Liability Reconciliation
Lease Liability Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Leases [Abstract] | ||
Total | $ 2,861 | |
Discount effect of cash flows | (1,072) | |
Lease liabilities | $ 1,789 | $ 1,894 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2011 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill at acquisition | $ 2,200 | ||
Core deposit intangible at acquisition | $ 1,700 | ||
Amortization period | 10 years | ||
Amortization of core deposit intangible | $ 171 | $ 171 | |
Remaining amortization expense | $ 71 |
Investment in Real Estate Lim_3
Investment in Real Estate Limited Partnerships - Summary of Investments in Real Estate Limited Partnerships (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Investment in Real Estate Limited Partnerships [Abstract] | ||
Carrying values of investment carried at equity included in Other assets | $ 6,584 | $ 4,402 |
Capital contributions payable for real estate limited partnership investments | $ 1,351 | $ 493 |
Investment in Real Estate Lim_4
Investment in Real Estate Limited Partnerships Income Tax Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Investment in Real Estate Limited Partnerships [Abstract] | ||
Provision for undistributed net losses of limited partnership investments | $ 935 | $ 745 |
Federal income tax credits related to limited partnership investments | (987) | (803) |
Net effect on Provision for income taxes | $ (52) | $ (58) |
Deposits Interest Bearing Depos
Deposits Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Interest bearing checking accounts | $ 231,465 | $ 173,406 |
Savings and money market accounts | 405,904 | 285,534 |
Time deposits, $100,000 and over | 70,373 | 73,048 |
Other time deposits | 71,315 | 75,605 |
Total interest-bearing deposits | $ 779,057 | $ 607,593 |
Deposits Narrative Data (Detail
Deposits Narrative Data (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
Brokered deposits | $ 15 | $ 12 |
Reciprocal deposits | 160.5 | 127.3 |
Time deposits, $250,000 or more | $ 22.9 | $ 24.4 |
Deposits Time Deposits by Matur
Deposits Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Deposits [Abstract] | ||
2021 | $ 114,919 | |
2022 | 15,640 | |
2023 | 5,212 | |
2024 | 3,311 | |
2025 | 2,606 | |
Total time deposits | $ 141,688 | $ 148,653 |
Borrowed Funds Narrative Data (
Borrowed Funds Narrative Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Borrowed Funds Narrative Data [Line Items] | ||
Option advance borrowings from the FHLB | $ 7,164,000 | $ 47,200,000 |
FHLB borrowing capacity, loans pledged | 210,000,000 | 207,700,000 |
FHLB borrowing capacity, maximum available | 134,100,000 | 127,500,000 |
FHLB borrowings and other credit subject to collateralization | 21,900,000 | 61,700,000 |
FHLB borrowing capacity, unused and available | 112,200,000 | 65,800,000 |
FHLB letters of credit, collateral for deposits | 23,600,000 | 24,800,000 |
FHLB letters of credit, fees paid | 30,000 | 27,000 |
Union | ||
Borrowed Funds Narrative Data [Line Items] | ||
Correspondent banks line of credit, maximum available | 15,000,000 | |
Correspondent banks line of credit, amount outstanding | 0 | 0 |
Company | ||
Borrowed Funds Narrative Data [Line Items] | ||
Correspondent banks line of credit, maximum available | 5,000,000 | |
Correspondent banks line of credit, amount outstanding | $ 0 | $ 0 |
Minimum | ||
Borrowed Funds Narrative Data [Line Items] | ||
FHLB borrowings interest rate | 0.00% | 0.00% |
Maximum | ||
Borrowed Funds Narrative Data [Line Items] | ||
FHLB borrowings interest rate | 3.09% | 3.09% |
Weighted Average | ||
Borrowed Funds Narrative Data [Line Items] | ||
FHLB borrowings interest rate | 3.07% | 2.01% |
Borrowed Funds Contractual Paym
Borrowed Funds Contractual Payments Due for FHLB Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
2021 | $ 164 | |
2022 | 0 | |
2023 | 7,000 | |
Total | $ 7,164 | $ 47,200 |
Income Taxes Components of the
Income Taxes Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Current federal tax provision | $ 3,134 | $ 1,351 |
Current state tax provision | 62 | 41 |
Deferred tax (benefit) provision | (777) | 438 |
Provision for income taxes | $ 2,419 | $ 1,830 |
Income Taxes Narrative Data (De
Income Taxes Narrative Data (Details) | Dec. 31, 2020USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, valuation allowance | $ 0 |
Income Taxes Schedule of Effect
Income Taxes Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | ||
Computed “expected” tax expense | $ 3,197 | $ 2,620 |
State taxes | 49 | 32 |
Tax exempt interest | (555) | (513) |
Increase in cash surrender value of COLI | (67) | (59) |
Tax credits | (1,013) | (857) |
Equity in losses of limited partnerships | 788 | 640 |
Non-deductible expenses | 44 | 46 |
Other | (24) | (79) |
Provision for income taxes | $ 2,419 | $ 1,830 |
Income Taxes Components of th_2
Income Taxes Components of the Net Deferred Tax Asset (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Income Tax Disclosure [Abstract] | ||
Bad debts | $ 1,798 | $ 1,329 |
Deferred compensation | 300 | 227 |
Loans held for sale | 271 | 32 |
Core deposit intangible | 119 | 106 |
Other | 55 | 37 |
Total deferred tax asset | 2,543 | 1,731 |
Depreciation | (1,254) | (1,402) |
Mortgage servicing rights | (490) | (371) |
Limited partnership investments | (86) | (50) |
Unrealized gain on investment securities available-for-sale | (701) | (262) |
Goodwill | (309) | (276) |
Prepaid expenses | (132) | (136) |
Total deferred tax liability | (2,972) | (2,497) |
Net deferred tax liability | $ (429) | $ (766) |
Employee Benefit Plans Narrativ
Employee Benefit Plans Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Defined Benefit Plan Disclosure [Line Items] | ||
Contribution vesting period | 3 years | |
Defined benefit plan, contribution percentage | 3.00% | 3.00% |
Deferred compensation expense | $ 8 | $ 8 |
Deferred compensation accrued benefit liability | 327 | 359 |
Cash surrender value of life insurance policies purchased to fund the deferred compensation plan | 1,100 | 1,000 |
General unsecured obligation of unfunded deferred compensation plan | 1,100 | $ 699 |
Employer contributions | $ 24 | |
Minimum | ||
Defined Benefit Plan Disclosure [Line Items] | ||
Defined benefit plan, contribution percentage | 3.00% |
Employee Benefit Plans Employer
Employee Benefit Plans Employer 401(k) Contributions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Retirement Benefits [Abstract] | ||
Employer matching | $ 318 | $ 270 |
Profit sharing | 339 | 280 |
Safe harbor | 382 | 336 |
Total | $ 1,039 | $ 886 |
Stock Option Plan Narrative Dat
Stock Option Plan Narrative Data (Details) - USD ($) | Feb. 03, 2021 | May 31, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | May 22, 2020 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock based compensation expense | $ 236,000 | $ 165,000 | |||
Unrecognized compensation cost related to unvested stock option grants | $ 0 | ||||
2014 Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for equity awards (in shares) | 50,000 | ||||
Stock options granted (in shares) | 0 | 0 | |||
Stock options outstanding (in shares) | 4,500 | 4,500 | |||
2008 ISO Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Stock options outstanding (in shares) | 0 | 1,000 | |||
Time-Based Restricted Stock Units | Subsequent Event | 2021 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of RSUs | 50.00% | ||||
Time-Based Restricted Stock Units | 2014 Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of RSUs | 50.00% | 50.00% | |||
Vesting period | 3 years | 3 years | |||
Performance Shares | Subsequent Event | 2021 Award | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of RSUs | 50.00% | ||||
Performance Shares | 2014 Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Percentage of RSUs | 50.00% | 50.00% | |||
Vesting period | 2 years | 2 years | |||
Restricted Stock Units (RSUs) | 2014 Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shared granted to non-employee directors (in shares) | 2,152 | ||||
Restricted Stock Units (RSUs) | 2014 Equity Plan | Director | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 25,000 | ||||
Restricted Stock Units (RSUs) | 2014 Equity Plan | Director | Forecast | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Compensation expense | $ 41,000 | ||||
Stock Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting period | 1 year | ||||
Intrinsic value at grant date of stock options (in usd per share) | $ 0 | ||||
Requisite service period | 1 year | ||||
Contractual term | 7 years | ||||
Stock based compensation expense | $ 0 | $ 0 | |||
Share-based Payment Arrangement, Tranche One | Time-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Share-based Payment Arrangement, Tranche One | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | ||||
Share-based Payment Arrangement, Tranche Two | Time-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Share-based Payment Arrangement, Tranche Two | Performance Shares | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | ||||
Share-based Payment Arrangement, Tranche Three | Time-Based Restricted Stock Units | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 33.33% | ||||
Executive Employee | Restricted Stock Units (RSUs) | 2014 Equity Plan | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Unrecognized compensation expense, unvested RSUs | $ 209,000 | $ 492,000 |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Units Granted and Unvested (Details) - 2014 Equity Plan - Restricted Stock Units (RSUs) - Executive Employee | 12 Months Ended |
Dec. 31, 2020$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs granted (in shares) | 12,652 |
Number of unvested RSUs (in shares) | 5,639 |
2019 Award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs granted (in shares) | 3,734 |
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 47.75 |
Number of unvested RSUs (in shares) | 500 |
2020 Award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs granted (in shares) | 8,918 |
Weighted-average grant date fair value (in usd per share) | $ / shares | $ 36.26 |
Number of unvested RSUs (in shares) | 5,139 |
Stock Option Plan Stock Option
Stock Option Plan Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Shares | ||
Exercised (in shares) | (1,000) | (2,000) |
Weighted Average Exercise Price | ||
Exercised (in usd per shares) | $ 22 | $ 22 |
2014 Equity Plan | ||
Shares | ||
Outstanding at the beginning (in shares) | 4,500 | |
Exercised (in shares) | 0 | |
Forfeited/expired (in shares) | 0 | |
Outstanding at the end (in shares) | 4,500 | 4,500 |
Exercisable (in shares) | 4,500 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning (in usd per share) | $ 24 | |
Exercised (in usd per shares) | 0 | |
Forfeited/expired (in usd per share) | 0 | |
Outstanding at the end (in usd per share) | 24 | $ 24 |
Exercisable (in usd per share) | $ 24 | |
Weighted Average Remaining Contractual Term | ||
Outstanding at end of the year | 11 months 15 days | |
Exercisable at end of the year | 11 months 15 days | |
Period End Aggregate Intrinsic Value | ||
Outstanding at end of the year | $ 8 | |
Exercisable at end of the year | $ 8 | |
2008 ISO Plan | ||
Shares | ||
Outstanding at the beginning (in shares) | 1,000 | |
Exercised (in shares) | (1,000) | |
Forfeited/expired (in shares) | 0 | |
Outstanding at the end (in shares) | 0 | 1,000 |
Exercisable (in shares) | 0 | |
Weighted Average Exercise Price | ||
Outstanding at the beginning (in usd per share) | $ 22 | |
Exercised (in usd per shares) | 22 | |
Forfeited/expired (in usd per share) | 0 | |
Outstanding at the end (in usd per share) | $ 22 | |
Exercisable (in usd per share) | ||
Weighted Average Remaining Contractual Term | ||
Outstanding at end of the year | ||
Exercisable at end of the year | ||
Period End Aggregate Intrinsic Value | ||
Outstanding at end of the year | ||
Exercisable at end of the year |
Stock Based Compensation Stock
Stock Based Compensation Stock Option Plan Proceeds from the Exercise of Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | ||
Proceeds received | $ 22 | $ 44 |
Number of shares exercised (in shares) | 1,000 | 2,000 |
Weighted average price per share (in usd per share) | $ 22 | $ 22 |
Total intrinsic value of options exercised | $ 14 | $ 30 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Earnings Per Share [Abstract] | ||||||||||
Net income | $ 3,794 | $ 4,147 | $ 2,668 | $ 2,196 | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ 12,805 | $ 10,648 |
Weighted average common shares outstanding for basic EPS (in shares) | 4,474,649 | 4,468,336 | ||||||||
Dilutive effect of stock-based awards (in shares) | 18,508 | 12,856 | ||||||||
Weighted-average common and potential common shares for diluted EPS (in shares) | 4,493,157 | 4,481,192 | ||||||||
Basic earnings per share (in usd per share) | $ 0.85 | $ 0.92 | $ 0.60 | $ 0.49 | $ 0.61 | $ 0.62 | $ 0.56 | $ 0.59 | $ 2.86 | $ 2.38 |
Diluted earnings per common share (in usd per share) | $ 2.85 | $ 2.38 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance-Sheet Risk Narrative Data (Details) - USD ($) $ in Millions | Dec. 31, 2020 | Dec. 31, 2019 |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | ||
Commitment to sell residential mortgage loans | $ 18.3 | $ 7.1 |
Financial Instruments With Of_4
Financial Instruments With Off-Balance-Sheet Risk Contractual Amount of Financial Instruments with Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 200,084 | $ 145,618 |
Commitments to originate loans | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 61,431 | 35,689 |
Unused lines of credit | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 132,502 | 103,623 |
Standby and commercial letters of credit | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 3,115 | 2,308 |
Credit card arrangements | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 308 | 311 |
MPF credit enhancement obligation, net (See Note 19) | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 728 | 687 |
Commitment to purchase investment in a real estate limited partnership | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 2,000 | $ 3,000 |
Commitments and Contingencies N
Commitments and Contingencies Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Loss Contingencies [Line Items] | ||
Total loans sold through the MPF program since inceptions into the program | $ 31,600 | |
Outstanding principal balance | 10,400 | |
Credit Enhancement Obligation | ||
Loss Contingencies [Line Items] | ||
Contractual risk sharing commitments, maximum liability | 747 | $ 705 |
Reserve for contingent contractual liability, amount accrued | $ 19 | $ 18 |
Fair Value Measurement, Assets
Fair Value Measurement, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 105,763 | $ 87,393 |
Mutual funds | 1,047 | 690 |
U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,548 | 6,292 |
Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 62,352 | 46,024 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 28,461 | 26,965 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,402 | 8,112 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Mutual funds | 1,047 | 690 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 105,763 | 87,393 |
Mutual funds | 0 | 0 |
Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,548 | 6,292 |
Significant Other Observable Inputs (Level 2) | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 62,352 | 46,024 |
Significant Other Observable Inputs (Level 2) | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 28,461 | 26,965 |
Significant Other Observable Inputs (Level 2) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,402 | 8,112 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Mutual funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurement, by Bala
Fair Value Measurement, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing deposits in banks | $ 12,699 | $ 6,565 |
Investment securities | 106,810 | 88,083 |
Loans held for sale | 32,188 | 7,442 |
Deposits | ||
Noninterest bearing | 215,245 | 136,434 |
Interest bearing | 637,369 | 458,940 |
Time | 141,688 | 148,653 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 122,771 | 51,134 |
Interest bearing deposits in banks | 0 | 0 |
Investment securities | 1,047 | 690 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits | ||
Noninterest bearing | 215,245 | 136,434 |
Interest bearing | 637,369 | 458,940 |
Time | 0 | 0 |
Borrowed funds | ||
Short-term | 40,000 | |
Long-term | 0 | 0 |
Accrued interest payable | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing deposits in banks | 12,699 | 6,671 |
Investment securities | 105,763 | 87,393 |
Loans held for sale | 33,437 | 7,587 |
Accrued interest receivable | 446 | 435 |
Deposits | ||
Noninterest bearing | 0 | 0 |
Interest bearing | 0 | 0 |
Time | 142,605 | 148,542 |
Borrowed funds | ||
Short-term | 0 | |
Long-term | 7,585 | 7,416 |
Accrued interest payable | 108 | 673 |
Significant Other Observable Inputs (Level 2) | Residential loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing deposits in banks | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 3,683 | 2,267 |
Deposits | ||
Noninterest bearing | 0 | 0 |
Interest bearing | 0 | 0 |
Time | 0 | 0 |
Borrowed funds | ||
Short-term | 0 | |
Long-term | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Residential loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 185,890 | 192,955 |
Significant Unobservable Inputs (Level 3) | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 56,882 | 68,381 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 324,085 | 288,931 |
Significant Unobservable Inputs (Level 3) | Commercial loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 106,358 | 45,872 |
Significant Unobservable Inputs (Level 3) | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 2,557 | 3,483 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 98,973 | 67,103 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 122,771 | 51,134 |
Interest bearing deposits in banks | 12,699 | 6,565 |
Investment securities | 106,810 | 88,083 |
Loans held for sale | 32,188 | 7,442 |
Accrued interest receivable | 4,129 | 2,702 |
Nonmarketable equity securities | 1,150 | 2,607 |
Deposits | ||
Noninterest bearing | 215,245 | 136,434 |
Interest bearing | 637,369 | 458,940 |
Time | 141,688 | 148,653 |
Borrowed funds | ||
Short-term | 40,000 | |
Long-term | 7,164 | 7,164 |
Accrued interest payable | 108 | 673 |
Carrying Amount | Residential loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 181,355 | 191,032 |
Carrying Amount | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 56,643 | 68,951 |
Carrying Amount | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 315,522 | 286,871 |
Carrying Amount | Commercial loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 108,382 | 47,379 |
Carrying Amount | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 2,586 | 3,545 |
Carrying Amount | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 98,264 | 67,387 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 122,771 | 51,134 |
Interest bearing deposits in banks | 12,699 | 6,671 |
Investment securities | 106,810 | 88,083 |
Loans held for sale | 33,437 | 7,587 |
Accrued interest receivable | 4,129 | 2,702 |
Deposits | ||
Noninterest bearing | 215,245 | 136,434 |
Interest bearing | 637,369 | 458,940 |
Time | 142,605 | 148,542 |
Borrowed funds | ||
Short-term | 40,000 | |
Long-term | 7,585 | 7,416 |
Accrued interest payable | 108 | 673 |
Estimated Fair Value | Residential loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 185,890 | 192,955 |
Estimated Fair Value | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 56,882 | 68,381 |
Estimated Fair Value | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 324,085 | 288,931 |
Estimated Fair Value | Commercial loans | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 106,358 | 45,872 |
Estimated Fair Value | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 2,557 | 3,483 |
Estimated Fair Value | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | $ 98,973 | $ 67,103 |
Transactions with Related Par_3
Transactions with Related Parties Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, January 1, | $ 1,300 | $ 749 |
New loans and advances on lines | 1,632 | 1,045 |
Repayments | (1,222) | (690) |
Other, net | (979) | 196 |
Balance, December 31, | 731 | 1,300 |
Balance available on lines of credit or loan commitments | $ 1,123 | $ 1,153 |
Transactions with Related Par_4
Transactions with Related Parties Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Related Party Transactions [Abstract] | ||
Deposit accounts with related parties | $ 1,100 | $ 1,300 |
Union's asset management group investment in union certificates of deposit | $ 266 | $ 348 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements Narrative Data (Details) | Dec. 31, 2020 | Dec. 31, 2019 |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets, actual | 0.0731 | 0.0809 |
Union | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets, actual | 0.0726 | 0.0806 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements (Details) $ in Thousands | Dec. 31, 2020USD ($) | Dec. 31, 2019USD ($) |
Company | ||
Total capital to risk weighted assets | ||
Total capital, actual | $ 83,464 | $ 74,510 |
Total capital to risk weighted assets, actual | 0.1387 | 0.1302 |
Total capital, for capital adequacy purposes | $ 48,141 | $ 45,782 |
Total capital to risk weighted assets, for capital adequacy purposes | 0.0800 | 0.0800 |
Tier 1 capital to risk weighted assets | ||
Tier 1 capital, actual | $ 75,933 | $ 68,388 |
Tier 1 capital to risk weighted assets, actual | 0.1262 | 0.1195 |
Tier 1 capital, for capital adequacy purposes | $ 36,101 | $ 34,337 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | 0.0600 | 0.0600 |
Common Equity Tier 1 to risk weighted assets | ||
Common Equity Tier 1 capital, actual | $ 75,933 | $ 68,388 |
Common Equity Tier 1 capital to risk weighted assets, actual | 0.1262 | 0.1195 |
Common Equity Tier 1 capital, for capital adequacy purposes | $ 27,076 | $ 25,753 |
Common Equity Tier 1 capital to risk weighted assets, for capital adequacy purposes | 4.50% | 4.50% |
Tier 1 capital to average assets | ||
Tier 1 capital, actual | $ 75,933 | $ 68,388 |
Tier 1 capital to average assets, actual | 0.0731 | 0.0809 |
Tier 1 capital, for capital adequacy purposes | $ 41,550 | $ 33,814 |
Tier 1 capital to average assets, for capital adequacy purposes | 0.0400 | 0.0400 |
Union | ||
Total capital to risk weighted assets | ||
Total capital, actual | $ 82,842 | $ 74,167 |
Total capital to risk weighted assets, actual | 0.1379 | 0.1298 |
Total capital, for capital adequacy purposes | $ 48,059 | $ 45,715 |
Total capital to risk weighted assets, for capital adequacy purposes | 0.0800 | 0.0800 |
Total capital, to be well capitalized under prompt corrective action provisions | $ 60,074 | $ 57,139 |
Total capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 0.1000 | 0.1000 |
Tier 1 capital to risk weighted assets | ||
Tier 1 capital, actual | $ 75,324 | $ 68,045 |
Tier 1 capital to risk weighted assets, actual | 0.1254 | 0.1191 |
Tier 1 capital, for capital adequacy purposes | $ 36,040 | $ 34,280 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | 0.0600 | 0.0600 |
Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 48,054 | $ 45,706 |
Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 0.0800 | 0.0800 |
Common Equity Tier 1 to risk weighted assets | ||
Common Equity Tier 1 capital, actual | $ 75,324 | $ 68,045 |
Common Equity Tier 1 capital to risk weighted assets, actual | 0.1254 | 0.1191 |
Common Equity Tier 1 capital, for capital adequacy purposes | $ 27,030 | $ 25,710 |
Common Equity Tier 1 capital to risk weighted assets, for capital adequacy purposes | 4.50% | 4.50% |
Common Equity Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 39,044 | $ 37,136 |
Common Equity Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 6.50% | 6.50% |
Tier 1 capital to average assets | ||
Tier 1 capital, actual | $ 75,324 | $ 68,045 |
Tier 1 capital to average assets, actual | 0.0726 | 0.0806 |
Tier 1 capital, for capital adequacy purposes | $ 41,501 | $ 33,769 |
Tier 1 capital to average assets, for capital adequacy purposes | 0.0400 | 0.0400 |
Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 51,876 | $ 42,212 |
Tier 1 capital to average assets, to be well capitalized under prompt corrective action provisions | 0.0500 | 0.0500 |
Treasury Stock Narrative Data (
Treasury Stock Narrative Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares authorized to be repurchased per quarter (in shares) | 2,500 | |
Purchase of treasury stock, cost | $ 13 | |
Number of shares of common stock repurchased since inception of stock repurchase program (in shares) | 17,693 | |
Cost per share of common stock repurchased since inception of stock repurchase program, low (in usd per share) | $ 17.86 | |
Cost per share of common stock repurchased since inception of stock repurchase program, high (in usd per share) | $ 48.82 | |
Total cost of common stock repurchased since inception of stock repurchase program | $ 472 | |
Number of shares of common stock reserved for issuance and sale under the DRIP (in shares) | 200,000 | |
Common Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Purchase of treasury stock, shares (in shares) | 0 | 300 |
Shares issued under the DRIP (in shares) | 4,139 | |
Treasury stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Purchase of treasury stock, cost | $ 13 |
Other Comprehensive Income Comp
Other Comprehensive Income Components of Accumulated OCI (Details) - USD ($) $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 |
Stockholders' Equity Note [Abstract] | ||
Net unrealized gain on investment securities available-for-sale | $ 2,636 | $ 986 |
Other Comprehensive Income Tax
Other Comprehensive Income Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Other Comprehensive Income, before Tax [Abstract] | ||
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale, Before-Tax Amount | $ 2,099 | $ 2,568 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before-Tax Amount | (11) | (25) |
Other Comprehensive Income (Loss), before Tax, Portion Attributable to Parent | 2,088 | 2,543 |
Other Comprehensive Income, Tax [Abstract] | ||
Net unrealized holding gains (losses) arising during the period on investment securities available-for-sale, Tax | (440) | (539) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 2 | 5 |
Other Comprehensive Income (Loss), Tax, Portion Attributable to Parent | (438) | (534) |
Other Comprehensive Income (Loss), Net of Tax [Abstract] | ||
Net unrealized holding gains arising during the year on investment securities available-for-sale | 1,659 | 2,029 |
Reclassification adjustments for investment securities available-for-sale | (9) | (20) |
Total other comprehensive income | $ 1,650 | $ 2,009 |
Other Comprehensive Income Recl
Other Comprehensive Income Reclassification Adjustments from Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | ||
Net gains on investment securities available-for-sale | $ (11) | $ (25) |
Tax benefit | 2 | 5 |
Total reclassifications | $ (9) | $ (20) |
Subsequent Events Narrative Dat
Subsequent Events Narrative Data (Details) - $ / shares | Jan. 20, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | Dec. 31, 2019 |
Subsequent Event [Line Items] | ||||
Dividends per common share (in usd per share) | $ 0.32 | $ 1.28 | $ 1.24 | |
Subsequent Event | ||||
Subsequent Event [Line Items] | ||||
Dividends per common share (in usd per share) | $ 0.33 | |||
Increase in cash dividend, percentage | 3.10% |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | |||
Other investments | $ 1,047 | $ 690 | |
Other assets | 21,432 | 19,055 | |
Total assets | 1,093,554 | 872,912 | |
LIABILITIES | |||
Other liabilities | 11,221 | 9,878 | |
Total liabilities | 1,012,687 | 801,069 | |
STOCKHOLDERS' EQUITY | |||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,954,732 shares issued at December 31, 2020 and 4,948,245 shares issued at December 31, 2019 | $ 9,910 | $ 9,897 | |
Common stock, par value (in usd per share) | $ 2 | $ 2 | |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | |
Common stock, shares issued (in shares) | 4,954,732 | 4,948,245 | |
Additional-paid-in capital | $ 1,393 | $ 1,124 | |
Retained earnings | 71,097 | 64,019 | |
Treasury stock at cost; 474,632 shares at December 31, 2020 and 476,268 shares at December 31, 2019 | $ (4,169) | $ (4,183) | |
Treasury stock, shares (in shares) | 474,632 | 476,268 | |
Accumulated other comprehensive income | $ 2,636 | $ 986 | |
Total stockholders' equity | 80,867 | 71,843 | $ 64,491 |
Total liabilities and stockholders' equity | 1,093,554 | 872,912 | |
Parent Company | |||
ASSETS | |||
Cash | 93 | 46 | |
Other investments | 60 | 27 | |
Investment in subsidiary - Union | 80,257 | 71,500 | |
Other assets | 869 | 712 | |
Total assets | 81,279 | 72,285 | |
LIABILITIES | |||
Other liabilities | 412 | 442 | |
Total liabilities | 412 | 442 | |
STOCKHOLDERS' EQUITY | |||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,954,732 shares issued at December 31, 2020 and 4,948,245 shares issued at December 31, 2019 | $ 9,910 | $ 9,897 | |
Common stock, par value (in usd per share) | $ 2 | $ 2 | |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | |
Common stock, shares issued (in shares) | 4,954,732 | 4,948,245 | |
Additional-paid-in capital | $ 1,393 | $ 1,124 | |
Retained earnings | 71,097 | 64,019 | |
Treasury stock at cost; 474,632 shares at December 31, 2020 and 476,268 shares at December 31, 2019 | $ (4,169) | $ (4,183) | |
Treasury stock, shares (in shares) | 474,632 | 476,268 | |
Accumulated other comprehensive income | $ 2,636 | $ 986 | |
Total stockholders' equity | 80,867 | 71,843 | |
Total liabilities and stockholders' equity | $ 81,279 | $ 72,285 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Expenses | ||||||||||
Administrative and other | $ 7,520 | $ 7,160 | ||||||||
Applicable income tax benefit | 2,419 | 1,830 | ||||||||
Net income | $ 3,794 | $ 4,147 | $ 2,668 | $ 2,196 | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | 12,805 | 10,648 |
Parent Company | ||||||||||
Revenues | ||||||||||
Dividends - bank subsidiary - Union | 6,350 | 5,925 | ||||||||
Other income | 28 | 24 | ||||||||
Total revenues | 6,378 | 5,949 | ||||||||
Expenses | ||||||||||
Interest | 18 | 16 | ||||||||
Administrative and other | 539 | 536 | ||||||||
Total expenses | 557 | 552 | ||||||||
Income before applicable income tax benefit and equity in undistributed net income of subsidiary | 5,821 | 5,397 | ||||||||
Applicable income tax benefit | (113) | (113) | ||||||||
Income before equity in undistributed net income of subsidiary | 5,934 | 5,510 | ||||||||
Equity in undistributed net income - Union | 6,871 | 5,138 | ||||||||
Net income | $ 12,805 | $ 10,648 |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | $ 3,794 | $ 4,147 | $ 2,668 | $ 2,196 | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ 12,805 | $ 10,648 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||
(Increase) decrease in other assets | (897) | (110) | ||||||||
Net cash provided by operating activities | (7,062) | 11,644 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Purchases of other investments | (117) | (2) | ||||||||
Net cash (used in) provided by investing activities | (125,909) | (48,929) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Dividends paid | (5,689) | (5,501) | ||||||||
Issuance of common stock | 22 | 44 | ||||||||
Purchase of treasury stock | 0 | (13) | ||||||||
Net cash used in financing activities | 204,608 | 51,130 | ||||||||
CASH | ||||||||||
Beginning of year | 51,134 | 37,289 | 51,134 | 37,289 | ||||||
End of year | 122,771 | 51,134 | 122,771 | 51,134 | ||||||
Dividends paid on Common Stock: | ||||||||||
Dividends declared | 5,727 | 5,540 | ||||||||
Dividends reinvested | (38) | (39) | ||||||||
Dividends paid | 5,689 | 5,501 | ||||||||
Parent Company | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | 12,805 | 10,648 | ||||||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||||||||||
Equity in undistributed net income of Union | (6,871) | (5,138) | ||||||||
(Increase) decrease in other assets | (157) | 55 | ||||||||
Decrease in other liabilities | (30) | (137) | ||||||||
Net cash provided by operating activities | 5,747 | 5,428 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Proceeds from sales of other investments | 0 | 47 | ||||||||
Purchases of other investments | (33) | (7) | ||||||||
Net cash (used in) provided by investing activities | (33) | 40 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Dividends paid | (5,689) | (5,501) | ||||||||
Issuance of common stock | 22 | 44 | ||||||||
Purchase of treasury stock | 0 | (13) | ||||||||
Net cash used in financing activities | (5,667) | (5,470) | ||||||||
Net decrease in cash | 47 | (2) | ||||||||
CASH | ||||||||||
Beginning of year | $ 46 | $ 48 | 46 | 48 | ||||||
End of year | $ 93 | $ 46 | 93 | 46 | ||||||
Supplemental Disclosures of Cash Flow Information | ||||||||||
Interest paid | 18 | 16 | ||||||||
Dividends paid on Common Stock: | ||||||||||
Dividends declared | 5,727 | 5,540 | ||||||||
Dividends reinvested | (38) | (39) | ||||||||
Dividends paid | $ 5,689 | $ 5,501 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2020 | Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest and dividend income | $ 9,305 | $ 9,343 | $ 9,139 | $ 8,963 | $ 9,234 | $ 9,140 | $ 8,904 | $ 8,592 | $ 36,750 | $ 35,870 |
Interest expense | 1,171 | 1,158 | 1,361 | 1,457 | 1,483 | 1,493 | 1,397 | 1,227 | 5,147 | 5,600 |
Net interest income | 8,134 | 8,185 | 7,778 | 7,506 | 7,751 | 7,647 | 7,507 | 7,365 | 31,603 | 30,270 |
Provision for loan losses | 600 | 800 | 500 | 300 | 425 | 150 | 150 | 50 | 2,200 | 775 |
Noninterest income | 4,989 | 5,508 | 2,988 | 2,518 | 3,029 | 2,723 | 2,471 | 2,232 | 16,003 | 10,455 |
Noninterest expenses | 7,904 | 7,995 | 7,111 | 7,172 | 7,140 | 7,005 | 6,800 | 6,527 | 30,182 | 27,472 |
Net income | $ 3,794 | $ 4,147 | $ 2,668 | $ 2,196 | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ 12,805 | $ 10,648 |
Basic earnings per common share (in usd per share) | $ 0.85 | $ 0.92 | $ 0.60 | $ 0.49 | $ 0.61 | $ 0.62 | $ 0.56 | $ 0.59 | $ 2.86 | $ 2.38 |
Other Noninterest Income and _3
Other Noninterest Income and Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Dec. 31, 2019 | |
Income | ||
Income from mortgage servicing rights, net | $ 542 | $ 50 |
Other income | 411 | 553 |
Total other income | 953 | 603 |
Expenses | ||
ATM network and debit card expense | 800 | 790 |
Advertising and public relations | 544 | 555 |
Vermont franchise tax | 759 | 678 |
Professional fees | 774 | 701 |
Director and advisory board fees | 505 | 502 |
Other expenses | 4,138 | 3,934 |
Total other expenses | $ 7,520 | $ 7,160 |