Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 02, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2021 | |
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 | 20 LOWER MAIN STREET, P.O. BOX 667 | |
Entity Address, City or Town | MORRISVILLE | |
Entity Address, State or Province | VT | |
Entity Address, Postal Zip Code | 05661 | |
City Area Code | 802 | |
Local Phone Number | 888-6600 | |
Title of 12(b) Security | Common Stock, $2.00 par value | |
Trading Symbol | UNB | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 4,484,875 | |
Entity Central Index Key | 0000706863 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets | ||
Cash and due from banks | $ 4,952 | $ 5,413 |
Federal funds sold and overnight deposits | 56,279 | 117,358 |
Cash and cash equivalents | 61,231 | 122,771 |
Interest bearing deposits in banks | 12,948 | 12,699 |
Investment securities available-for-sale | 158,101 | 105,763 |
Other investments | 1,174 | 1,047 |
Total investments | 159,275 | 106,810 |
Loans held for sale | 42,149 | 32,188 |
Loans | 741,474 | 771,169 |
Allowance for loan losses | (8,505) | (8,271) |
Net deferred loan fees | (578) | (146) |
Net loans | 732,391 | 762,752 |
Premises and equipment, net | 21,637 | 20,039 |
Company-owned life insurance | 12,778 | 12,640 |
Other assets | 23,728 | 23,655 |
Total assets | 1,066,137 | 1,093,554 |
Deposits | ||
Noninterest bearing | 243,573 | 215,245 |
Interest bearing | 610,540 | 637,369 |
Time | 113,567 | 141,688 |
Total deposits | 967,680 | 994,302 |
Borrowed funds | 7,164 | 7,164 |
Accrued interest and other liabilities | 8,926 | 11,221 |
Total liabilities | 983,770 | 1,012,687 |
Commitments and Contingencies | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,957,884 shares issued at June 30, 2021 and 4,954,732 shares issued at December 31, 2020 | 9,916 | 9,910 |
Additional paid-in capital | 1,609 | 1,393 |
Retained earnings | 74,006 | 71,097 |
Treasury stock at cost; 474,011 shares at June 30, 2021 and 474,632 shares at December 31, 2020 | (4,165) | (4,169) |
Accumulated other comprehensive income | 1,001 | 2,636 |
Total stockholders' equity | 82,367 | 80,867 |
Total liabilities and stockholders' equity | $ 1,066,137 | $ 1,093,554 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 30, 2021 | Dec. 31, 2020 |
Statement of Financial Position [Abstract] | ||
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) | 4,957,884 | 4,954,732 |
Treasury stock, shares (in shares) | 474,011 | 474,632 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest and dividend income | ||||
Interest and fees on loans | $ 9,236 | $ 8,565 | $ 18,121 | $ 16,856 |
Interest on debt securities: | ||||
Taxable | 456 | 337 | 860 | 724 |
Tax exempt | 154 | 160 | 305 | 317 |
Dividends | 4 | 26 | 8 | 60 |
Interest on federal funds sold and overnight deposits | 14 | 11 | 33 | 64 |
Interest on interest bearing deposits in banks | 34 | 40 | 71 | 81 |
Total interest and dividend income | 9,898 | 9,139 | 19,398 | 18,102 |
Interest expense | ||||
Interest on deposits | 924 | 1,252 | 1,971 | 2,561 |
Interest on borrowed funds | 55 | 109 | 109 | 257 |
Total interest expense | 979 | 1,361 | 2,080 | 2,818 |
Net interest income | 8,919 | 7,778 | 17,318 | 15,284 |
Provision for loan losses | 75 | 500 | 225 | 800 |
Net interest income after provision for loan losses | 8,844 | 7,278 | 17,093 | 14,484 |
Noninterest income | ||||
Trust income | 198 | 178 | 383 | 351 |
Service fees | 1,581 | 1,284 | 3,104 | 2,781 |
Net gains on sales of investment securities available-for-sale | 0 | 0 | 0 | 11 |
Net gains on sales of loans held for sale | 1,151 | 1,227 | 2,045 | 2,039 |
Net gain on other investments | 15 | 162 | 59 | 38 |
Other income | 194 | 137 | 169 | 286 |
Total noninterest income | 3,139 | 2,988 | 5,760 | 5,506 |
Noninterest expenses | ||||
Salaries and wages | 3,553 | 2,829 | 6,636 | 5,950 |
Employee benefits | 1,203 | 1,231 | 2,372 | 2,213 |
Occupancy expense, net | 527 | 477 | 1,004 | 991 |
Equipment expense | 872 | 756 | 1,670 | 1,496 |
Other expenses | 2,234 | 1,818 | 4,160 | 3,633 |
Total noninterest expenses | 8,389 | 7,111 | 15,842 | 14,283 |
Income before provision for income taxes | 3,594 | 3,155 | 7,011 | 5,707 |
Provision for income taxes | 603 | 487 | 1,144 | 843 |
Net income | $ 2,991 | $ 2,668 | $ 5,867 | $ 4,864 |
Basic earnings per common share (in usd per share) | $ 0.67 | $ 0.60 | $ 1.31 | $ 1.09 |
Diluted earnings per common share (in usd per share) | $ 0.66 | $ 0.59 | $ 1.30 | $ 1.08 |
Weighted average number of common shares outstanding (in shares) | 4,482,597 | 4,474,139 | 4,481,475 | 4,473,512 |
Weighted-average common and potential common shares for diluted EPS (in shares) | 4,511,169 | 4,491,836 | 4,506,150 | 4,490,938 |
Dividends per common share (in usd per share) | $ 0.33 | $ 0.32 | $ 0.66 | $ 0.64 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,991 | $ 2,668 | $ 5,867 | $ 4,864 |
Investment securities available-for-sale: | ||||
Net unrealized holding gains (losses) arising during the period on investment securities available-for-sale | 920 | 656 | (1,635) | 1,740 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | 0 | 0 | 0 | (9) |
Total other comprehensive income (loss) | 920 | 656 | (1,635) | 1,731 |
Total comprehensive income | $ 3,911 | $ 3,324 | $ 4,232 | $ 6,595 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained earnings | Treasury stock | Accumulated other comprehensive income |
Beginning 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 | 4,864 | 4,864 | ||||
Other comprehensive income (loss) | 1,731 | 1,731 | ||||
Dividend reinvestment plan | 19 | 13 | 6 | |||
Dividend reinvestment plan (in shares) | 737 | |||||
Cash dividends declared | (2,863) | (2,863) | ||||
Stock based compensation expense (in shares) | 1,185 | |||||
Stock based compensation expense | 151 | $ 2 | 149 | |||
Exercise of stock options | 22 | $ 2 | 20 | |||
Exercise of stock options (in shares) | 1,000 | |||||
Ending balance (in shares) at Jun. 30, 2020 | 4,474,899 | |||||
Balances at Jun. 30, 2020 | 75,767 | $ 9,901 | 1,306 | 66,020 | (4,177) | 2,717 |
Beginning balance (in shares) at Mar. 31, 2020 | 4,473,200 | |||||
Balances at Mar. 31, 2020 | 73,788 | $ 9,899 | 1,226 | 64,783 | (4,181) | 2,061 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,668 | 2,668 | ||||
Other comprehensive income (loss) | 656 | 656 | ||||
Dividend reinvestment plan | 11 | 7 | 4 | |||
Dividend reinvestment plan (in shares) | 514 | |||||
Cash dividends declared | (1,431) | (1,431) | ||||
Stock based compensation expense (in shares) | 1,185 | |||||
Stock based compensation expense | 75 | $ 2 | 73 | |||
Ending balance (in shares) at Jun. 30, 2020 | 4,474,899 | |||||
Balances at Jun. 30, 2020 | 75,767 | $ 9,901 | 1,306 | 66,020 | (4,177) | 2,717 |
Beginning 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 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,867 | 5,867 | ||||
Other comprehensive income (loss) | (1,635) | (1,635) | ||||
Dividend reinvestment plan | 21 | 15 | 6 | |||
Dividend reinvestment plan (in shares) | 718 | |||||
Cash dividends declared | (2,958) | (2,958) | ||||
Stock based compensation expense (in shares) | 2,152 | |||||
Stock based compensation expense | 183 | $ 4 | 179 | |||
Exercise of stock options | 24 | $ 2 | 22 | |||
Exercise of stock options (in shares) | 1,000 | |||||
Purchase of treasury stock | (2) | (2) | ||||
Purchase of treasury stock (in shares) | (97) | |||||
Ending balance (in shares) at Jun. 30, 2021 | 4,483,873 | |||||
Balances at Jun. 30, 2021 | 82,367 | $ 9,916 | 1,609 | 74,006 | (4,165) | 1,001 |
Beginning balance (in shares) at Mar. 31, 2021 | 4,480,954 | |||||
Balances at Mar. 31, 2021 | 79,823 | $ 9,911 | 1,504 | 72,494 | (4,167) | 81 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 2,991 | 2,991 | ||||
Other comprehensive income (loss) | 920 | 920 | ||||
Dividend reinvestment plan | 9 | 7 | 2 | |||
Dividend reinvestment plan (in shares) | 267 | |||||
Cash dividends declared | (1,479) | (1,479) | ||||
Stock based compensation expense (in shares) | 2,152 | |||||
Stock based compensation expense | 91 | $ 4 | 87 | |||
Exercise of stock options | 12 | $ 1 | 11 | |||
Exercise of stock options (in shares) | 500 | |||||
Ending balance (in shares) at Jun. 30, 2021 | 4,483,873 | |||||
Balances at Jun. 30, 2021 | $ 82,367 | $ 9,916 | $ 1,609 | $ 74,006 | $ (4,165) | $ 1,001 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) Parenthetical - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared, per share | $ 0.33 | $ 0.32 | $ 0.66 | $ 0.64 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash Flows From Operating Activities | ||
Net income | $ 5,867,000 | $ 4,864,000 |
Adjustments to reconcile net income to net cash used in operating activities: | ||
Depreciation | 925,000 | 943,000 |
Provision for loan losses | 225,000 | 800,000 |
Deferred income tax provision | 13,000 | 6,000 |
Net amortization of premiums on investment securities | 323,000 | 245,000 |
Equity in losses of limited partnerships | 501,000 | 376,000 |
Stock based compensation expense | 183,000 | 151,000 |
Net decrease in unamortized loan costs | 432,000 | 1,864,000 |
Proceeds from sales of loans held for sale | 87,203,000 | 99,950,000 |
Origination of loans held for sale | (95,119,000) | (134,019,000) |
Net gains on sales of loans held for sale | (2,045,000) | (2,039,000) |
Net loss on disposals of premises and equipment | 108,000 | 0 |
Net gains on sales of investment securities available-for-sale | 0 | (11,000) |
Net gain on sales of other real estate owned | (11,000) | 0 |
Net gain on other investments | (59,000) | (38,000) |
Decrease (increase) in accrued interest receivable | 799,000 | (713,000) |
Amortization of core deposit intangible | 71,000 | 86,000 |
Increase in other assets | (1,041,000) | (45,000) |
(Decrease) increase in other liabilities | (993,000) | 526,000 |
Net cash used in operating activities | (2,618,000) | (27,054,000) |
Interest bearing deposits in banks | ||
Proceeds from maturities and redemptions | 2,490,000 | 498,000 |
Purchases | (2,739,000) | (3,735,000) |
Investment securities available-for-sale | ||
Proceeds from sales | 0 | 3,076,000 |
Proceeds from maturities, calls and paydowns | 15,656,000 | 8,695,000 |
Purchases | (70,387,000) | (7,851,000) |
Net purchases of other investments | (68,000) | (63,000) |
Net (increase) decrease in nonmarketable stock | (13,000) | 1,457,000 |
Net decrease (increase) in loans | 29,695,000 | (22,471,000) |
Recoveries of loans charged off | 9,000 | 23,000 |
Purchases of premises and equipment | (2,631,000) | (399,000) |
Investments in limited partnerships | (1,458,000) | (1,658,000) |
Proceeds from sales of other real estate owned | 61,000 | 0 |
Net cash used in investing activities | (29,385,000) | (22,428,000) |
Cash Flows From Financing Activities | ||
Net decrease in short-term borrowings outstanding | 0 | (37,667,000) |
Net increase in noninterest bearing deposits | 28,328,000 | 52,307,000 |
Net (decrease) increase in interest bearing deposits | (26,829,000) | 25,556,000 |
Net decrease in time deposits | (28,121,000) | (2,398,000) |
Issuance of common stock | 24,000 | 22,000 |
Purchase of treasury stock | (2,000) | 0 |
Dividends paid | (2,937,000) | (2,844,000) |
Net cash (used in) provided by financing activities | (29,537,000) | 34,976,000 |
Net decrease in cash and cash equivalents | (61,540,000) | (14,506,000) |
Cash and cash equivalents | ||
Beginning of period | 122,771,000 | 51,134,000 |
End of period | 61,231,000 | 36,628,000 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 2,122,000 | 3,326,000 |
Income taxes paid | 1,300,000 | 0 |
Supplemental Schedule of Noncash Investing Activities | ||
Investment in limited partnerships acquired by capital contributions payable | 0 | 2,722,000 |
Dividends paid on Common Stock: | ||
Dividends declared | 2,958,000 | 2,863,000 |
Dividends reinvested | (21,000) | (19,000) |
Dividends paid | $ 2,937,000 | $ 2,844,000 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of June 30, 2021, and for the three and six months ended June 30, 2021 and 2020, have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2020 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2021, or any future interim period. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this report, as permitted for smaller reporting companies. Certain amounts in the 2020 consolidated financial statements have been reclassified to conform to the current year presentation. In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q. AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MSRs: Mortgage servicing rights ASU: Accounting Standards Update OAO: Other assets owned Board: Board of Directors OCI: Other comprehensive income (loss) bp or bps: Basis point(s) 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 Company: Union Bankshares, Inc. and Subsidiary OTT: Other-than-temporary COVID-19: Novel Coronavirus PPP: Paycheck Protection Program Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 PPPLF: PPP Liquidity Facility of the FRB DRIP: Dividend Reinvestment Plan RD: USDA Rural Development FASB: Financial Accounting Standards Board RSU: Restricted Stock Unit FDIC: Federal Deposit Insurance Corporation SBA: U.S. Small Business Administration FHA: U.S. Federal Housing Administration SEC: U.S. Securities and Exchange Commission FHLB: Federal Home Loan Bank of Boston TDR: Troubled-debt restructuring FRB: Federal Reserve Board Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation USDA: U.S. Department of Agriculture GAAP: Generally Accepted Accounting Principles in the United States VA: U.S. Veterans Administration HTM: Held-to-maturity 2014 Equity Plan: 2014 Equity Incentive Plan HUD: U.S. Department of Housing and Urban Development 2020 Annual Report Annual Report on Form 10-K for the year ended December 31, 2020 |
Risks and Uncertainties
Risks and Uncertainties | 6 Months Ended |
Jun. 30, 2021 | |
Risks and Uncertainties [Abstract] | |
Risks and Uncertainties | Risks and Uncertainties Significant progress has been made to combat the outbreak of COVID-19; however, the global pandemic has adversely impacted a broad range of industries in which the Company's customers operate and could still impair their ability to fulfill their financial obligations to the Company. The Company’s business is dependent upon the willingness and ability of its employees and customers to conduct banking and other financial transactions. While it appears that health and economic conditions are trending in a positive direction as of June 30, 2021, a resurgence in the virus or its variants could have an adverse effect on the Company's business, financial condition, results of operations and cash flows. While it is not possible to know the full impact COVID-19, and any potential measures to curtail its spread, will have on the Company's future operations, the Company is disclosing potentially material items of which it is aware. Congress, the President, and the Federal Reserve have taken several actions designed to cushion the economic fallout of the pandemic. 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 curb the economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors through programs like the PPP. During December 2020, many provisions of the CARES Act were extended through the end of 2021. Additionally, The American Rescue Plan Act of 2021, a $1.9 trillion economic stimulus bill, was signed into law in March 2021. This package builds upon many of the measures in the CARES Act and is intended to speed up the recovery from the economic and health effects of COVID-19. Financial position and results of operations The Company has not yet experienced any charge-offs related to COVID-19. See Note 8. Should economic conditions worsen as a result of a resurgence of the virus or its variants and resulting measures to curtail its spread, the Company could experience increases in the required ALL and record additional provision for loan losses. The use of payment deferrals assisted the ratio of past due loans to total loans as well other asset quality ratios at June 30, 2021. It is possible that asset quality measures could worsen at future measurement periods if a resurgence of COVID-19 progresses. Through June 30, 2021, the Company had executed modifications on outstanding loan balances of $159.1 million that carried accrued interest of $946 thousand. Of the total modifications executed, at June 30, 2021 outstanding loan balances of $2.0 million remained subject to modified terms and carried accrued interest of $78 thousand. Capital and liquidity As of June 30, 2021, all of the Company's and Union's capital ratios were in excess of all regulatory requirements. While the Company believes it has sufficient capital to withstand a double-dip economic recession brought about by a resurgence in COVID-19, the reported and regulatory capital ratios could be adversely impacted by further credit loss expense. The Company relies on cash on hand as well as dividends from its subsidiary bank to pay dividends to shareholders. If the Company’s capital deteriorates such that its subsidiary bank is unable to pay dividends to it for an extended period of time, the Company may not be able to maintain its dividend to shareholders at the current level. Management continues to analyze the Company's current capital levels and its ability to maintain growth projections and absorb future credit losses while maintaining sufficient levels of capital. The Company maintains access to multiple sources of liquidity. Wholesale funding markets have remained open to the Company. If funding costs are elevated for an extended period of time, it could have an adverse effect on the Company’s net interest margin. If an extended recession caused large numbers of the Company’s deposit customers to withdraw their funds, the Company might become more reliant on volatile or more expensive sources of funding. To date in 2021, primarily as a result of the deposit of PPP loan proceeds and government assistance payments under the CARES Act and The American Rescue Plan Act of 2021, the Company has experienced a significant increase in customer deposits. Asset valuation COVID-19 has not affected the Company's ability to account timely for the assets on the balance sheet; however, a resurgence of COVID-19 could cause this to change in future periods. The Company’s stock price or the occurrence of what management would deem to be a triggering event that could, under certain circumstances, cause the Company to perform a goodwill impairment test, an intangible asset impairment test, or both, resulting in an impairment charge being recorded for that period. In the event that the Company concludes that all or a portion of its goodwill or intangible assets are impaired, a non-cash charge for the amount of such impairment would be recorded to earnings. Such a charge would have no impact on tangible capital or regulatory capital. The Company does not anticipate significant changes in methodology used to determine the fair value of assets measured in accordance with GAAP. As of June 30, 2021, goodwill was not impaired and there was no impairment with respect to our intangible assets, premises and equipment or other long-lived assets. Processes, controls and business continuity plan The Company’s preparedness efforts, coupled with quick and decisive plan implementation, has resulted in minimal impacts to operations as a result of COVID-19. At June 30, 2021, several employees have returned to banking facilities while some continue to work remotely. The Company has not experienced any disruption to its operations. The Company has not incurred additional material cost related to the remote working strategy to date, nor are material costs anticipated in future periods. As of June 30, 2021, management does not anticipate significant challenges to its ability to maintain the systems and controls and does not currently face any material resource constraint through the implementation of our business continuity plans. Lending operations and accommodations to borrowers Union continued to work with borrowers during the unprecedented situation caused by COVID-19 and as allowed under the CARES Act, executed a payment deferral program for its customers that were adversely affected by COVID-19. Depending on the demonstrated need of the customer, the Company either deferred the full loan payment or the principal component of the loan payment for up to 180 days for the majority of the deferral requests. The Company had executed 334 of these deferrals on outstanding loan balances of $159.1 million as of June 30, 2021. Of the total deferrals executed, 17 remained in effect on outstanding loan balances of $2.0 million as of June 30, 2021. In accordance with interagency guidance issued in March 2020 and updated in April 2020, and confirmed by the FASB, these short term deferrals are not considered TDRs. In August 2020, the federal banking regulators issued supplemental guidance for working with borrowers as their loans near the end of their accommodation period. It is possible that in spite of our best efforts to assist our borrowers and achieve full collection of our investment, these deferred loans could result in future charge-offs with additional credit loss expense charged to earnings; however, the amount of any future charge-offs on deferred loans is unknown. With the passage of the PPP, administered by the SBA, 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 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. |
Legal Contingencies
Legal Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | Legal ContingenciesIn the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations. |
Per Share Information
Per Share Information | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Per Share Information | Per Share Information The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the three and six months ended June 30, 2021 and 2020: For the Three Months For the Six Months 2021 2020 2021 2020 (Dollars in thousands, except per share data) Net income $ 2,991 $ 2,668 $ 5,867 $ 4,864 Weighted average common shares outstanding for basic EPS 4,482,597 4,474,139 4,481,475 4,473,512 Dilutive effect of stock-based awards 28,572 17,697 24,675 17,426 Weighted-average common and potential common shares for diluted EPS 4,511,169 4,491,836 4,506,150 4,490,938 Earnings per common share: Basic EPS $ 0.67 $ 0.60 $ 1.31 $ 1.09 Diluted EPS $ 0.66 $ 0.59 $ 1.30 $ 1.08 ____________________ (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. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was 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. 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., six months or less) 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. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Debt securities AFS as of the balance sheet dates consisted of the following: June 30, 2021 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises $ 17,887 $ 122 $ (184) $ 17,825 Agency mortgage-backed 103,236 913 (1,500) 102,649 State and political subdivisions 27,887 1,394 — 29,281 Corporate 7,824 541 (19) 8,346 Total $ 156,834 $ 2,970 $ (1,703) $ 158,101 December 31, 2020 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises $ 6,462 $ 137 $ (51) $ 6,548 Agency mortgage-backed 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 There were no investment securities HTM at June 30, 2021 or December 31, 2020. There were no investment securities pledged as collateral at June 30, 2021 or December 31, 2020. The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of June 30, 2021 were as follows: Amortized Fair Available-for-sale (Dollars in thousands) Due from one to five years $ 6,457 $ 6,814 Due from five to ten years 26,179 26,749 Due after ten years 20,962 21,889 53,598 55,452 Agency mortgage-backed 103,236 102,649 Total debt securities available-for-sale $ 156,834 $ 158,101 Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities usually differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and are not included in the contractual maturity categories in the above maturity summary. Information pertaining to all debt securities AFS 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: June 30, 2021 Less Than 12 Months 12 Months and over Total Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Government- 16 $ 13,362 $ (159) 6 $ 795 $ (25) 22 $ 14,157 $ (184) Agency mortgage-backed 35 77,624 (1,498) 2 130 (2) 37 77,754 (1,500) Corporate — — — 2 981 (19) 2 981 (19) Total 51 $ 90,986 $ (1,657) 10 $ 1,906 $ (46) 61 $ 92,892 $ (1,703) December 31, 2020 Less Than 12 Months 12 Months and over Total Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Government- 15 $ 2,005 $ (16) 8 $ 1,661 $ (35) 23 $ 3,666 $ (51) Agency mortgage-backed 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) The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. The Company has the ability to hold the investment securities that had unrealized losses at June 30, 2021 and December 31, 2020 for the foreseeable future. The decline in 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. There were no sales of AFS securities during the three and six months ended June 30, 2021 or the three months ended June 30, 2020. The following table presents the proceeds, gross realized gains and gross realized losses from the sales of AFS securities for the six months ended June 30, 2020: For The Six Months Ended June 30, 2020 (Dollars in thousands) Proceeds $ 3,076 Gross gains 32 Gross losses (21) Net gains on sales of investment securities AFS $ 11 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
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. The composition of Net loans as of the balance sheet dates was as follows: June 30, December 31, (Dollars in thousands) Residential real estate $ 216,025 $ 183,166 Construction real estate 75,110 57,417 Commercial real estate 316,943 320,627 Commercial 98,220 108,861 Consumer 2,638 2,601 Municipal 32,538 98,497 Gross loans 741,474 771,169 Allowance for loan losses (8,505) (8,271) Net deferred loan fees (578) (146) Net loans $ 732,391 $ 762,752 There were 637 and 679 PPP loans totaling $57.3 million and $66.2 million classified as commercial loans as of June 30, 2021 and December 31, 2020, respectively. Origination fees received from the SBA on these PPP loans totaled $2.5 million and $2.4 million at June 30, 2021 and December 31, 2020, respectively, and will be amortized over the respective lives of the loans. PPP loan origination fees of $715 thousand and $1.4 million were recognized in earnings during the three and six months ended June 30, 2021, respectively, and $234 thousand was recognized during the three and six months ended June 30, 2020. Qualifying residential first mortgage loans and certain commercial real estate loans with an aggregate carrying value of $215.7 million and $210.0 million were pledged as collateral for borrowings from the FHLB under a blanket lien at June 30, 2021 and December 31, 2020, respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: June 30, 2021 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 214,341 $ 513 $ — $ 176 $ 995 $ 216,025 Construction real estate 74,914 — 50 — 146 75,110 Commercial real estate 312,283 49 — — 4,611 316,943 Commercial 98,220 — — — — 98,220 Consumer 2,638 — — — — 2,638 Municipal 32,538 — — — — 32,538 Total $ 734,934 $ 562 $ 50 $ 176 $ 5,752 $ 741,474 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 There was one residential real estate loan totaling $47 thousand in process of foreclosure at June 30, 2021 and no loans in process of foreclosure at December 31, 2020. A moratorium on residential mortgage foreclosures instituted by the State of |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the second quarter of 2021. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan. Changes in the ALL, by class of loans, for the three and six months ended June 30, 2021 and 2020 were as follows: For The Three Months Ended June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2021 $ 1,996 $ 881 $ 4,133 $ 443 $ 13 $ 199 $ 764 $ 8,429 Provision (credit) for loan losses 86 143 (22) (18) (2) (118) 6 75 Recoveries of amounts charged off — — — — 1 — — 1 2,082 1,024 4,111 425 12 81 770 8,505 Amounts charged off — — — — — — — — Balance, June 30, 2021 $ 2,082 $ 1,024 $ 4,111 $ 425 $ 12 $ 81 $ 770 $ 8,505 For The Three Months Ended June 30, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2020 $ 1,513 $ 622 $ 3,459 $ 407 $ 23 $ 85 $ 282 $ 6,391 Provision (credit) for loan losses 77 (28) 373 84 3 (6) (3) 500 Recoveries of amounts charged off — — — — — — — — 1,590 594 3,832 491 26 79 279 6,891 Amounts charged off — — — — (3) — — (3) Balance, June 30, 2020 $ 1,590 $ 594 $ 3,832 $ 491 $ 23 $ 79 $ 279 $ 6,888 For The Six Months Ended June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2020 $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 Provision (credit) for loan 298 261 (88) (33) (4) (133) (76) 225 Recoveries of amounts 8 — — — 1 — — 9 2,082 1,024 4,111 425 12 81 770 8,505 Amounts charged off — — — — — — — — Balance, June 30, 2021 $ 2,082 $ 1,024 $ 4,111 $ 425 $ 12 $ 81 $ 770 $ 8,505 For The Six Months Ended June 30, 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 175 (180) 708 97 3 3 (6) 800 Recoveries of amounts 23 — — — — — — 23 1,590 594 3,886 491 26 79 279 6,945 Amounts charged off — — (54) — (3) — — (57) Balance, June 30, 2020 $ 1,590 $ 594 $ 3,832 $ 491 $ 23 $ 79 $ 279 $ 6,888 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: June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 28 $ — $ 30 $ — $ — $ — $ — $ 58 Collectively evaluated 2,054 1,024 4,081 425 12 81 770 8,447 Total allocated $ 2,082 $ 1,024 $ 4,111 $ 425 $ 12 $ 81 $ 770 $ 8,505 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 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: June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,691 $ 208 $ 5,266 $ 12 $ — $ — $ 7,177 Collectively evaluated 214,334 74,902 311,677 98,208 2,638 32,538 734,297 Total $ 216,025 $ 75,110 $ 316,943 $ 98,220 $ 2,638 $ 32,538 $ 741,474 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 Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise those loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4-4.5 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: June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 195,730 $ 49,882 $ 167,889 $ 88,819 $ 2,631 $ 32,538 $ 537,489 Satisfactory/Monitor 17,064 25,020 142,936 9,301 7 — 194,328 Substandard 3,231 208 6,118 100 — — 9,657 Total $ 216,025 $ 75,110 $ 316,943 $ 98,220 $ 2,638 $ 32,538 $ 741,474 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 The following tables provide information with respect to impaired loans by class of loan as of and for the three and six months ended June 30, 2021 and June 30, 2020: As of June 30, 2021 For The Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 203 $ 213 $ 28 Commercial real estate 1,612 1,769 30 With an allowance recorded 1,815 1,982 58 Residential real estate 1,488 2,080 — Construction real estate 208 229 — Commercial real estate 3,654 3,759 — Commercial 12 14 — With no allowance recorded 5,362 6,082 — Residential real estate 1,691 2,293 28 $ 1,715 $ 22 $ 1,738 $ 77 Construction real estate 208 229 — 209 1 209 2 Commercial real estate 5,266 5,528 30 5,271 25 4,321 38 Commercial 12 14 — 91 1 130 6 Total $ 7,177 $ 8,064 $ 58 $ 7,286 $ 49 $ 6,398 $ 123 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2021 totaling $354 thousand. As of June 30, 2020 For The Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 1,959 $ 2,524 $ 35 $ 1,724 $ 9 $ 1,654 $ 28 Construction real estate 218 237 2 218 1 219 2 Commercial real estate 3,085 3,264 86 3,121 16 3,149 38 Commercial 250 254 7 265 5 276 12 Total $ 5,512 $ 6,279 $ 130 $ 5,328 $ 31 $ 5,298 $ 80 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2020 totaling $553 thousand. The following table provides information with respect to impaired loans by class of loan as of December 31, 2020: December 31, 2020 Recorded Investment Principal Balance Related Allowance (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 Construction real estate 210 231 — Commercial real estate 2,422 2,664 21 Commercial 207 211 7 Total $ 4,621 $ 5,506 $ 58 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2020 totaling $514 thousand. The following is a summary of TDR loans by class of loan as of the balance sheet dates: June 30, 2021 December 31, 2020 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 30 $ 1,691 32 $ 1,782 Construction real estate 2 83 2 87 Commercial real estate 6 756 6 788 Commercial 2 12 5 207 Total 40 $ 2,542 45 $ 2,864 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. There was no new TDR activity for the three and six months ended June 30, 2021. The following table provides new TDR activity for the three and six months ended June 30, 2020: New TDRs During the New TDRs During the Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 6 $ 493 $ 493 6 $ 493 $ 493 There were no TDR loans modified within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2021 or 2020. TDR loans are considered defaulted at 90 days past due. In March 2020, the federal banking agencies issued guidance, confirmed by the FASB, that certain 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 Notes 2 and 5). Through June 30, 2021, the Company had executed modifications under this guidance on outstanding loan balances of $159.1 million that carried accrued interest of $946 thousand. Of the total modifications executed, outstanding loan balances of $2.0 million remained subject to modified terms and carried accrued interest of $78 thousand as of June 30, 2021. The Company intends to continue to follow the guidance of the banking regulators in making TDR determinations. At June 30, 2021 and December 31, 2020, the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Stock Based Compensation
Stock Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation Under the Union Bankshares, Inc. 2014 Equity Incentive Plan, 50,000 shares of the Company’s common stock were reserved for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of June 30, 2021, there were outstanding grants of RSUs and incentive stock options under the 2014 Equity Plan with respect to an aggregate of 28,044 shares of common stock. RSUs. Each outstanding RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The general terms of the awards are described in the Company's 2020 Annual Report. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table summarizes the RSUs awarded to Company executives in 2019, 2020 and 2021, and the number of such RSUs remaining unvested as of June 30, 2021: 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 2021 Award 17,685 26.73 17,685 Total 30,337 23,324 Unrecognized compensation expense related to the unvested RSUs as of June 30, 2021 and 2020 was $396 thousand and $329 thousand, respectively, and $209 thousand as of December 31, 2020. On May 19, 2021, the Company's board of directors, as a component of total director compensation, granted an aggregate of 1,220 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 2022, subject to continued board service through the vesting date, other than in the case of the director's death or disability. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. Unrecognized director compensation expense related to the unvested RSUs as of June 30, 2021 was $37 thousand. Stock options. As of June 30, 2021, 3,500 incentive stock options granted in December 2014 under the 2014 Equity Plan remained outstanding and exercisable and will expire in December 2021. The intrinsic value of those options was $43 thousand |
Other Comprehensive Income
Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Other Comprehensive Income | Other Comprehensive Income Accounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. As of the balance sheet dates, the components of Accumulated OCI, net of tax, were: June 30, 2021 December 31, 2020 (Dollars in thousands) Net unrealized gain on investment securities available-for-sale $ 1,001 $ 2,636 The following tables disclose the tax effects allocated to each component of OCI for the three and six months ended June 30: Three Months Ended June 30, 2021 June 30, 2020 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Investment securities available-for-sale: (Dollars in thousands) Net unrealized holding gains arising during the period on investment securities available-for-sale $ 1,165 $ (245) $ 920 $ 830 $ (174) $ 656 Total other comprehensive income $ 1,165 $ (245) $ 920 $ 830 $ (174) $ 656 Six Months Ended June 30, 2021 June 30, 2020 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Investment securities available-for-sale: (Dollars in thousands) Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale $ (2,069) $ 434 $ (1,635) $ 2,202 $ (462) $ 1,740 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income — — — (11) 2 (9) Total other comprehensive (loss) income $ (2,069) $ 434 $ (1,635) $ 2,191 $ (460) $ 1,731 There were no reclassification adjustments from OCI for the three months ended June 30, 2021 and 2020 or the six months ended June 30, 2021. The following table discloses information concerning reclassification adjustments from OCI for the six months ended June 30, 2020: Six Months Ended Reclassification Adjustment Description June 30, 2020 Affected Line Item in (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (11) Net gains on sales of investment securities available-for-sale Tax expense 2 Provision for income taxes Total reclassifications $ (9) Net income |
Fair Value Measurement
Fair Value Measurement | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
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; • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS : The Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds : Mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. Assets measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020, segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Fair Quoted Prices in Significant Significant June 30, 2021: (Dollars in thousands) Debt securities AFS: U.S. Government-sponsored enterprises $ 17,825 $ — $ 17,825 $ — Agency mortgage-backed 102,649 — 102,649 — State and political subdivisions 29,281 — 29,281 — Corporate 8,346 — 8,346 — Total debt securities $ 158,101 $ — $ 158,101 $ — Other investments: Mutual funds $ 1,174 $ 1,174 $ — $ — December 31, 2020: Debt securities AFS: U.S. Government-sponsored enterprises $ 6,548 $ — $ 6,548 $ — Agency mortgage-backed 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 $ — $ — There were no transfers in or out of Levels 1 and 2 during the three and six months ended June 30, 2021 or the year ended December 31, 2020, nor were there any Level 3 assets at any time during either period. Certain other assets and liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis in periods after initial recognition, such as collateral-dependent impaired loans, MSRs and OREO, were not considered material at June 30, 2021 or December 31, 2020. 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: June 30, 2021 Fair Value Measurements Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 61,231 $ 61,231 $ 61,231 $ — $ — Interest bearing deposits in banks 12,948 12,950 — 12,950 — Investment securities 159,275 159,275 1,174 158,101 — Loans held for sale 42,149 43,207 — 43,207 — Loans, net Residential real estate 213,775 216,779 — — 216,779 Construction real estate 74,027 74,193 — — 74,193 Commercial real estate 311,815 314,481 — — 314,481 Commercial 97,718 96,600 — — 96,600 Consumer 2,624 2,603 — — 2,603 Municipal 32,432 33,109 — — 33,109 Accrued interest receivable 3,330 3,330 — 520 2,810 Nonmarketable equity securities 1,162 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 243,573 $ 243,573 $ 243,573 $ — $ — Interest bearing 610,540 610,540 610,540 — — Time 113,567 113,949 — 113,949 — Borrowed funds Long-term 7,164 7,483 — 7,483 — Accrued interest payable 66 66 — 66 — December 31, 2020 Fair Value Measurements 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 — The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. Accrued interest receivable and nonmarketable equity securities are included in Other assets in the consolidated balance sheets. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events represent events or transactions occurring after the balance sheet date but before the financial statements are issued. Financial statements are considered “issued” when they are widely distributed to shareholders and others for general use and reliance in a form and format that complies with GAAP. Events occurring subsequent to June 30, 2021 have been evaluated as to their potential impact to the consolidated financial statements. On July 21, 2021, the Company declared a regular quarterly cash dividend of $0.33 per share, payable August 5, 2021, to stockholders of record on July 31, 2021. |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of June 30, 2021, and for the three and six months ended June 30, 2021 and 2020, have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020 (2020 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2020 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2021, or any future interim period. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this report, as permitted for smaller reporting companies. Certain amounts in the 2020 consolidated financial statements have been reclassified to conform to the current year presentation. |
Per Share Information | Per Share Information The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the three and six months ended June 30, 2021 and 2020: For the Three Months For the Six Months 2021 2020 2021 2020 (Dollars in thousands, except per share data) Net income $ 2,991 $ 2,668 $ 5,867 $ 4,864 Weighted average common shares outstanding for basic EPS 4,482,597 4,474,139 4,481,475 4,473,512 Dilutive effect of stock-based awards 28,572 17,697 24,675 17,426 Weighted-average common and potential common shares for diluted EPS 4,511,169 4,491,836 4,506,150 4,490,938 Earnings per common share: Basic EPS $ 0.67 $ 0.60 $ 1.31 $ 1.09 Diluted EPS $ 0.66 $ 0.59 $ 1.30 $ 1.08 ____________________ (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. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was 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. 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., six months or less) 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. |
Investment Securities | The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. |
Loans | 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 and Credit Quality | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the second quarter of 2021. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan. |
Other Comprehensive Income | Other Comprehensive IncomeAccounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Fair Value 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; • 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). |
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 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. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Acronyms, Abbreviations and Capitalized Terms | In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q. AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MSRs: Mortgage servicing rights ASU: Accounting Standards Update OAO: Other assets owned Board: Board of Directors OCI: Other comprehensive income (loss) bp or bps: Basis point(s) 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 Company: Union Bankshares, Inc. and Subsidiary OTT: Other-than-temporary COVID-19: Novel Coronavirus PPP: Paycheck Protection Program Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 PPPLF: PPP Liquidity Facility of the FRB DRIP: Dividend Reinvestment Plan RD: USDA Rural Development FASB: Financial Accounting Standards Board RSU: Restricted Stock Unit FDIC: Federal Deposit Insurance Corporation SBA: U.S. Small Business Administration FHA: U.S. Federal Housing Administration SEC: U.S. Securities and Exchange Commission FHLB: Federal Home Loan Bank of Boston TDR: Troubled-debt restructuring FRB: Federal Reserve Board Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation USDA: U.S. Department of Agriculture GAAP: Generally Accepted Accounting Principles in the United States VA: U.S. Veterans Administration HTM: Held-to-maturity 2014 Equity Plan: 2014 Equity Incentive Plan HUD: U.S. Department of Housing and Urban Development 2020 Annual Report Annual Report on Form 10-K for the year ended December 31, 2020 |
Per Share Information (Tables)
Per Share Information (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the three and six months ended June 30, 2021 and 2020: For the Three Months For the Six Months 2021 2020 2021 2020 (Dollars in thousands, except per share data) Net income $ 2,991 $ 2,668 $ 5,867 $ 4,864 Weighted average common shares outstanding for basic EPS 4,482,597 4,474,139 4,481,475 4,473,512 Dilutive effect of stock-based awards 28,572 17,697 24,675 17,426 Weighted-average common and potential common shares for diluted EPS 4,511,169 4,491,836 4,506,150 4,490,938 Earnings per common share: Basic EPS $ 0.67 $ 0.60 $ 1.31 $ 1.09 Diluted EPS $ 0.66 $ 0.59 $ 1.30 $ 1.08 ____________________ (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. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Debt Securities, Available-for-sale | Debt securities AFS as of the balance sheet dates consisted of the following: June 30, 2021 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises $ 17,887 $ 122 $ (184) $ 17,825 Agency mortgage-backed 103,236 913 (1,500) 102,649 State and political subdivisions 27,887 1,394 — 29,281 Corporate 7,824 541 (19) 8,346 Total $ 156,834 $ 2,970 $ (1,703) $ 158,101 December 31, 2020 Amortized Gross Gross Fair (Dollars in thousands) U.S. Government-sponsored enterprises $ 6,462 $ 137 $ (51) $ 6,548 Agency mortgage-backed 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 |
Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of June 30, 2021 were as follows: Amortized Fair Available-for-sale (Dollars in thousands) Due from one to five years $ 6,457 $ 6,814 Due from five to ten years 26,179 26,749 Due after ten years 20,962 21,889 53,598 55,452 Agency mortgage-backed 103,236 102,649 Total debt securities available-for-sale $ 156,834 $ 158,101 |
Schedule of Unrealized Loss on Investments | Information pertaining to all debt securities AFS 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: June 30, 2021 Less Than 12 Months 12 Months and over Total Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Government- 16 $ 13,362 $ (159) 6 $ 795 $ (25) 22 $ 14,157 $ (184) Agency mortgage-backed 35 77,624 (1,498) 2 130 (2) 37 77,754 (1,500) Corporate — — — 2 981 (19) 2 981 (19) Total 51 $ 90,986 $ (1,657) 10 $ 1,906 $ (46) 61 $ 92,892 $ (1,703) December 31, 2020 Less Than 12 Months 12 Months and over Total Number Fair Gross Number Fair Gross Number Fair Gross (Dollars in thousands) U.S. Government- 15 $ 2,005 $ (16) 8 $ 1,661 $ (35) 23 $ 3,666 $ (51) Agency mortgage-backed 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) |
Schedule of Realized Gain (Loss) | The following table presents the proceeds, gross realized gains and gross realized losses from the sales of AFS securities for the six months ended June 30, 2020: For The Six Months Ended June 30, 2020 (Dollars in thousands) Proceeds $ 3,076 Gross gains 32 Gross losses (21) Net gains on sales of investment securities AFS $ 11 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Composition of Net Loans | The composition of Net loans as of the balance sheet dates was as follows: June 30, December 31, (Dollars in thousands) Residential real estate $ 216,025 $ 183,166 Construction real estate 75,110 57,417 Commercial real estate 316,943 320,627 Commercial 98,220 108,861 Consumer 2,638 2,601 Municipal 32,538 98,497 Gross loans 741,474 771,169 Allowance for loan losses (8,505) (8,271) Net deferred loan fees (578) (146) Net loans $ 732,391 $ 762,752 |
Financing Receivable, Past Due | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: June 30, 2021 Current 30-59 Days 60-89 Days 90 Days and Over and Accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 214,341 $ 513 $ — $ 176 $ 995 $ 216,025 Construction real estate 74,914 — 50 — 146 75,110 Commercial real estate 312,283 49 — — 4,611 316,943 Commercial 98,220 — — — — 98,220 Consumer 2,638 — — — — 2,638 Municipal 32,538 — — — — 32,538 Total $ 734,934 $ 562 $ 50 $ 176 $ 5,752 $ 741,474 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 |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Credit Quality (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Credit Loss [Abstract] | |
Financing Receivable, Allowance for Credit Loss | Changes in the ALL, by class of loans, for the three and six months ended June 30, 2021 and 2020 were as follows: For The Three Months Ended June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2021 $ 1,996 $ 881 $ 4,133 $ 443 $ 13 $ 199 $ 764 $ 8,429 Provision (credit) for loan losses 86 143 (22) (18) (2) (118) 6 75 Recoveries of amounts charged off — — — — 1 — — 1 2,082 1,024 4,111 425 12 81 770 8,505 Amounts charged off — — — — — — — — Balance, June 30, 2021 $ 2,082 $ 1,024 $ 4,111 $ 425 $ 12 $ 81 $ 770 $ 8,505 For The Three Months Ended June 30, 2020 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, March 31, 2020 $ 1,513 $ 622 $ 3,459 $ 407 $ 23 $ 85 $ 282 $ 6,391 Provision (credit) for loan losses 77 (28) 373 84 3 (6) (3) 500 Recoveries of amounts charged off — — — — — — — — 1,590 594 3,832 491 26 79 279 6,891 Amounts charged off — — — — (3) — — (3) Balance, June 30, 2020 $ 1,590 $ 594 $ 3,832 $ 491 $ 23 $ 79 $ 279 $ 6,888 For The Six Months Ended June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2020 $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 Provision (credit) for loan 298 261 (88) (33) (4) (133) (76) 225 Recoveries of amounts 8 — — — 1 — — 9 2,082 1,024 4,111 425 12 81 770 8,505 Amounts charged off — — — — — — — — Balance, June 30, 2021 $ 2,082 $ 1,024 $ 4,111 $ 425 $ 12 $ 81 $ 770 $ 8,505 For The Six Months Ended June 30, 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 175 (180) 708 97 3 3 (6) 800 Recoveries of amounts 23 — — — — — — 23 1,590 594 3,886 491 26 79 279 6,945 Amounts charged off — — (54) — (3) — — (57) Balance, June 30, 2020 $ 1,590 $ 594 $ 3,832 $ 491 $ 23 $ 79 $ 279 $ 6,888 |
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: June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 28 $ — $ 30 $ — $ — $ — $ — $ 58 Collectively evaluated 2,054 1,024 4,081 425 12 81 770 8,447 Total allocated $ 2,082 $ 1,024 $ 4,111 $ 425 $ 12 $ 81 $ 770 $ 8,505 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 |
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: June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,691 $ 208 $ 5,266 $ 12 $ — $ — $ 7,177 Collectively evaluated 214,334 74,902 311,677 98,208 2,638 32,538 734,297 Total $ 216,025 $ 75,110 $ 316,943 $ 98,220 $ 2,638 $ 32,538 $ 741,474 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 |
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: June 30, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 195,730 $ 49,882 $ 167,889 $ 88,819 $ 2,631 $ 32,538 $ 537,489 Satisfactory/Monitor 17,064 25,020 142,936 9,301 7 — 194,328 Substandard 3,231 208 6,118 100 — — 9,657 Total $ 216,025 $ 75,110 $ 316,943 $ 98,220 $ 2,638 $ 32,538 $ 741,474 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 |
Impaired Financing Receivables | The following tables provide information with respect to impaired loans by class of loan as of and for the three and six months ended June 30, 2021 and June 30, 2020: As of June 30, 2021 For The Three Months Ended June 30, 2021 For the Six Months Ended June 30, 2021 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 203 $ 213 $ 28 Commercial real estate 1,612 1,769 30 With an allowance recorded 1,815 1,982 58 Residential real estate 1,488 2,080 — Construction real estate 208 229 — Commercial real estate 3,654 3,759 — Commercial 12 14 — With no allowance recorded 5,362 6,082 — Residential real estate 1,691 2,293 28 $ 1,715 $ 22 $ 1,738 $ 77 Construction real estate 208 229 — 209 1 209 2 Commercial real estate 5,266 5,528 30 5,271 25 4,321 38 Commercial 12 14 — 91 1 130 6 Total $ 7,177 $ 8,064 $ 58 $ 7,286 $ 49 $ 6,398 $ 123 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2021 totaling $354 thousand. As of June 30, 2020 For The Three Months Ended June 30, 2020 For the Six Months Ended June 30, 2020 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 1,959 $ 2,524 $ 35 $ 1,724 $ 9 $ 1,654 $ 28 Construction real estate 218 237 2 218 1 219 2 Commercial real estate 3,085 3,264 86 3,121 16 3,149 38 Commercial 250 254 7 265 5 276 12 Total $ 5,512 $ 6,279 $ 130 $ 5,328 $ 31 $ 5,298 $ 80 ____________________ (1) Does not reflect government guaranties on impaired loans as of June 30, 2020 totaling $553 thousand. The following table provides information with respect to impaired loans by class of loan as of December 31, 2020: December 31, 2020 Recorded Investment Principal Balance Related Allowance (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 Construction real estate 210 231 — Commercial real estate 2,422 2,664 21 Commercial 207 211 7 Total $ 4,621 $ 5,506 $ 58 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2020 totaling $514 thousand. |
Financing Receivable, Troubled Debt Restructuring | The following is a summary of TDR loans by class of loan as of the balance sheet dates: June 30, 2021 December 31, 2020 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 30 $ 1,691 32 $ 1,782 Construction real estate 2 83 2 87 Commercial real estate 6 756 6 788 Commercial 2 12 5 207 Total 40 $ 2,542 45 $ 2,864 |
Schedule of New Troubled Debt Restructurings on Financing Receivables | The following table provides new TDR activity for the three and six months ended June 30, 2020: New TDRs During the New TDRs During the Three Months Ended June 30, 2020 Six Months Ended June 30, 2020 Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Loans Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 6 $ 493 $ 493 6 $ 493 $ 493 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Compensation Arrangements by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest | The following table summarizes the RSUs awarded to Company executives in 2019, 2020 and 2021, and the number of such RSUs remaining unvested as of June 30, 2021: 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 2021 Award 17,685 26.73 17,685 Total 30,337 23,324 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) | As of the balance sheet dates, the components of Accumulated OCI, net of tax, were: June 30, 2021 December 31, 2020 (Dollars in thousands) Net unrealized gain on investment securities available-for-sale $ 1,001 $ 2,636 |
Schedule of Comprehensive Income (Loss) | The following tables disclose the tax effects allocated to each component of OCI for the three and six months ended June 30: Three Months Ended June 30, 2021 June 30, 2020 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Investment securities available-for-sale: (Dollars in thousands) Net unrealized holding gains arising during the period on investment securities available-for-sale $ 1,165 $ (245) $ 920 $ 830 $ (174) $ 656 Total other comprehensive income $ 1,165 $ (245) $ 920 $ 830 $ (174) $ 656 Six Months Ended June 30, 2021 June 30, 2020 Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) Benefit Net-of-Tax Amount Investment securities available-for-sale: (Dollars in thousands) Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale $ (2,069) $ 434 $ (1,635) $ 2,202 $ (462) $ 1,740 Reclassification adjustment for net gains on investment securities available-for-sale realized in net income — — — (11) 2 (9) Total other comprehensive (loss) income $ (2,069) $ 434 $ (1,635) $ 2,191 $ (460) $ 1,731 |
Reclassification out of Accumulated Other Comprehensive Income | The following table discloses information concerning reclassification adjustments from OCI for the six months ended June 30, 2020: Six Months Ended Reclassification Adjustment Description June 30, 2020 Affected Line Item in (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (11) Net gains on sales of investment securities available-for-sale Tax expense 2 Provision for income taxes Total reclassifications $ (9) Net income |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis at June 30, 2021 and December 31, 2020, segregated by fair value hierarchy level, are summarized below: Fair Value Measurements Fair Quoted Prices in Significant Significant June 30, 2021: (Dollars in thousands) Debt securities AFS: U.S. Government-sponsored enterprises $ 17,825 $ — $ 17,825 $ — Agency mortgage-backed 102,649 — 102,649 — State and political subdivisions 29,281 — 29,281 — Corporate 8,346 — 8,346 — Total debt securities $ 158,101 $ — $ 158,101 $ — Other investments: Mutual funds $ 1,174 $ 1,174 $ — $ — December 31, 2020: Debt securities AFS: U.S. Government-sponsored enterprises $ 6,548 $ — $ 6,548 $ — Agency mortgage-backed 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 $ — $ — |
Fair Values and Carrying Amounts, Significant Financial Instruments | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: June 30, 2021 Fair Value Measurements Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 61,231 $ 61,231 $ 61,231 $ — $ — Interest bearing deposits in banks 12,948 12,950 — 12,950 — Investment securities 159,275 159,275 1,174 158,101 — Loans held for sale 42,149 43,207 — 43,207 — Loans, net Residential real estate 213,775 216,779 — — 216,779 Construction real estate 74,027 74,193 — — 74,193 Commercial real estate 311,815 314,481 — — 314,481 Commercial 97,718 96,600 — — 96,600 Consumer 2,624 2,603 — — 2,603 Municipal 32,432 33,109 — — 33,109 Accrued interest receivable 3,330 3,330 — 520 2,810 Nonmarketable equity securities 1,162 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing $ 243,573 $ 243,573 $ 243,573 $ — $ — Interest bearing 610,540 610,540 610,540 — — Time 113,567 113,949 — 113,949 — Borrowed funds Long-term 7,164 7,483 — 7,483 — Accrued interest payable 66 66 — 66 — December 31, 2020 Fair Value Measurements 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 — |
Risks and Uncertainties (Detail
Risks and Uncertainties (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($)loanRate | |
Risks and Uncertainties [Abstract] | |
Maximum term for payment deferrals | 180 days |
Number of loans receiving payment deferrals | loan | 334 |
Outstanding balance of loans receiving payment deferrals | $ 159,100 |
Outstanding accrued interest balance of loans receiving payment deferrals | $ 946 |
Number of loans receiving payment deferrals subject to modification terms | loan | 17 |
Outstanding balance of loans receiving payment deferrals subject to modification terms | $ 2,000 |
Outstanding accrued interest balance of loans receiving payment deferrals, subject to modification terms | $ 78 |
PPP loan interest rate | Rate | 1.00% |
PPP loan term | 2 years |
Per Share Information (Details)
Per Share Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share [Abstract] | ||||
Net income | $ 2,991 | $ 2,668 | $ 5,867 | $ 4,864 |
Weighted average number of common shares outstanding for basic EPS (in shares) | 4,482,597 | 4,474,139 | 4,481,475 | 4,473,512 |
Dilutive effect of stock-based awards (in shares) | 28,572 | 17,697 | 24,675 | 17,426 |
Weighted-average common and potential common shares for diluted EPS (in shares) | 4,511,169 | 4,491,836 | 4,506,150 | 4,490,938 |
Earnings per common share: | ||||
Basic EPS (in usd per share) | $ 0.67 | $ 0.60 | $ 1.31 | $ 1.09 |
Diluted EPS (in usd per share) | $ 0.66 | $ 0.59 | $ 1.30 | $ 1.08 |
Investment Securities Available
Investment Securities Available-for-Sale Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Available-for-sale | ||
Amortized Cost | $ 156,834 | $ 102,427 |
Gross Unrealized Gains | 2,970 | 3,543 |
Gross Unrealized Losses | (1,703) | (207) |
Fair Value | 158,101 | 105,763 |
U.S. Government-sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 17,887 | 6,462 |
Gross Unrealized Gains | 122 | 137 |
Gross Unrealized Losses | (184) | (51) |
Fair Value | 17,825 | 6,548 |
Agency mortgage-backed | ||
Available-for-sale | ||
Amortized Cost | 103,236 | 61,123 |
Gross Unrealized Gains | 913 | 1,307 |
Gross Unrealized Losses | (1,500) | (78) |
Fair Value | 102,649 | 62,352 |
State and political subdivisions | ||
Available-for-sale | ||
Amortized Cost | 27,887 | 27,025 |
Gross Unrealized Gains | 1,394 | 1,439 |
Gross Unrealized Losses | 0 | (3) |
Fair Value | 29,281 | 28,461 |
Corporate | ||
Available-for-sale | ||
Amortized Cost | 7,824 | 7,817 |
Gross Unrealized Gains | 541 | 660 |
Gross Unrealized Losses | (19) | (75) |
Fair Value | $ 8,346 | $ 8,402 |
Investment Securities Debt Secu
Investment Securities Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Amortized Cost | ||
Due from one to five years | $ 6,457 | |
Due from five to ten years | 26,179 | |
Due after ten years | 20,962 | |
Debt securities with single maturity date, amortized cost | 53,598 | |
Agency mortgage-backed | 103,236 | |
Total debt securities available-for-sale | 156,834 | |
Fair Value | ||
Due from one to five years | 6,814 | |
Due from five to ten years | 26,749 | |
Due after ten years | 21,889 | |
Debt securities with single maturity date, fair value | 55,452 | |
Agency mortgage-backed | 102,649 | |
Total debt securities available-for-sale | $ 158,101 | $ 105,763 |
Investment Securities Schedule
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Jun. 30, 2021USD ($)Securities | Dec. 31, 2020USD ($)Securities |
Less Than 12 Months | ||
Number of Securities | Securities | 51 | 35 |
Fair Value | $ 90,986 | $ 24,278 |
Gross Unrealized Losses | $ (1,657) | $ (97) |
12 Months and over | ||
Number of Securities | Securities | 10 | 11 |
Fair Value | $ 1,906 | $ 3,085 |
Gross Unrealized Losses | $ (46) | $ (110) |
Total | ||
Number of Securities | Securities | 61 | 46 |
Fair Value | $ 92,892 | $ 27,363 |
Gross Unrealized Losses | $ (1,703) | $ (207) |
U.S. Government-sponsored enterprises | ||
Less Than 12 Months | ||
Number of Securities | Securities | 16 | 15 |
Fair Value | $ 13,362 | $ 2,005 |
Gross Unrealized Losses | $ (159) | $ (16) |
12 Months and over | ||
Number of Securities | Securities | 6 | 8 |
Fair Value | $ 795 | $ 1,661 |
Gross Unrealized Losses | $ (25) | $ (35) |
Total | ||
Number of Securities | Securities | 22 | 23 |
Fair Value | $ 14,157 | $ 3,666 |
Gross Unrealized Losses | $ (184) | $ (51) |
Agency mortgage-backed | ||
Less Than 12 Months | ||
Number of Securities | Securities | 35 | 19 |
Fair Value | $ 77,624 | $ 21,698 |
Gross Unrealized Losses | $ (1,498) | $ (78) |
12 Months and over | ||
Number of Securities | Securities | 2 | 0 |
Fair Value | $ 130 | $ 0 |
Gross Unrealized Losses | $ (2) | $ 0 |
Total | ||
Number of Securities | Securities | 37 | 19 |
Fair Value | $ 77,754 | $ 21,698 |
Gross Unrealized Losses | $ (1,500) | $ (78) |
State and political subdivisions | ||
Less Than 12 Months | ||
Number of Securities | Securities | 1 | |
Fair Value | $ 575 | |
Gross Unrealized Losses | $ (3) | |
12 Months and over | ||
Number of Securities | Securities | 0 | |
Fair Value | $ 0 | |
Gross Unrealized Losses | $ 0 | |
Total | ||
Number of Securities | Securities | 1 | |
Fair Value | $ 575 | |
Gross Unrealized Losses | $ (3) | |
Corporate | ||
Less Than 12 Months | ||
Number of Securities | Securities | 0 | 0 |
Fair Value | $ 0 | $ 0 |
Gross Unrealized Losses | $ 0 | $ 0 |
12 Months and over | ||
Number of Securities | Securities | 2 | 3 |
Fair Value | $ 981 | $ 1,424 |
Gross Unrealized Losses | $ (19) | $ (75) |
Total | ||
Number of Securities | Securities | 2 | 3 |
Fair Value | $ 981 | $ 1,424 |
Gross Unrealized Losses | $ (19) | $ (75) |
Investment Securities Narrative
Investment Securities Narrative Data (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |||||
Investment securities HTM | $ 0 | $ 0 | $ 0 | ||
Investment securities pledged as collateral | 0 | 0 | 0 | ||
Other than temporary declines in investment securities | 0 | $ 0 | |||
Proceeds | $ 0 | $ 0 | $ 0 | $ 3,076,000 |
Investment Securities Schedul_2
Investment Securities Schedule of Realized Gain (Loss) (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds | $ 0 | $ 0 | $ 0 | $ 3,076,000 |
Gross gains | 32,000 | |||
Gross losses | (21,000) | |||
Net gains on sales of investment securities AFS | $ 0 | $ 0 | $ 0 | $ 11,000 |
Loans Composition of Net Loans
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | $ 741,474 | $ 771,169 | ||||
Allowance for loan losses | (8,505) | $ (8,429) | (8,271) | $ (6,888) | $ (6,391) | $ (6,122) |
Net deferred loan fees | (578) | (146) | ||||
Net loans | 732,391 | 762,752 | ||||
Residential real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 216,025 | 183,166 | ||||
Allowance for loan losses | (2,082) | (1,996) | (1,776) | (1,590) | (1,513) | (1,392) |
Construction real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 75,110 | 57,417 | ||||
Allowance for loan losses | (1,024) | (881) | (763) | (594) | (622) | (774) |
Commercial real estate | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 316,943 | 320,627 | ||||
Allowance for loan losses | (4,111) | (4,133) | (4,199) | (3,832) | (3,459) | (3,178) |
Commercial | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 98,220 | 108,861 | ||||
Allowance for loan losses | (425) | (443) | (458) | (491) | (407) | (394) |
Consumer | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 2,638 | 2,601 | ||||
Allowance for loan losses | (12) | (13) | (15) | (23) | (23) | (23) |
Municipal | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Loans | 32,538 | 98,497 | ||||
Allowance for loan losses | $ (81) | $ (199) | $ (214) | $ (79) | $ (85) | $ (76) |
Loans Past Due Loans (Details)
Loans Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 741,474 | $ 771,169 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 734,934 | 764,499 |
30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 562 | 3,471 |
60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 50 | 278 |
90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 176 | 511 |
Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,752 | 2,410 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 216,025 | 183,166 |
Residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 214,341 | 179,794 |
Residential real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 513 | 2,166 |
Residential real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 211 |
Residential real estate | 90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 176 | 368 |
Residential real estate | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 995 | 627 |
Construction real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 75,110 | 57,417 |
Construction real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 74,914 | 57,116 |
Construction real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 70 |
Construction real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 50 | 67 |
Construction real estate | 90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 143 |
Construction real estate | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 146 | 21 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 316,943 | 320,627 |
Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 312,283 | 317,748 |
Commercial real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 49 | 1,130 |
Commercial real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | 90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial real estate | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,611 | 1,749 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 98,220 | 108,861 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 98,220 | 108,749 |
Commercial | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 99 |
Commercial | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial | 90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Commercial | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 13 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,638 | 2,601 |
Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,638 | 2,595 |
Consumer | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 6 |
Consumer | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Consumer | 90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Consumer | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Municipal | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 32,538 | 98,497 |
Municipal | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 32,538 | 98,497 |
Municipal | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Municipal | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Municipal | 90 Days and Over and Accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 0 |
Municipal | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 0 | $ 0 |
Loans Narrative Data (Details)
Loans Narrative Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Jun. 30, 2021USD ($)loan | Jun. 30, 2020USD ($) | Dec. 31, 2020USD ($)loan | |
Receivables [Abstract] | |||||
Number of PPP loans | loan | 637 | 637 | 679 | ||
Total amount of PPP loans | $ 57,300 | $ 57,300 | $ 66,200 | ||
Total origination fees on PPP loans | 2,500 | 2,500 | 2,400 | ||
Origination fees recognized on PPP loans | 715 | $ 234 | 1,400 | $ 234 | |
Loans pledged as collateral | $ 215,700 | $ 215,700 | $ 210,000 | ||
Number of residential real estate loans in process of foreclosure | loan | 1 | 1 | 0 | ||
Recorded investment in residential real estate loans in process of foreclosure | $ 47 | $ 47 | |||
Aggregate interest on nonaccrual loans not recognized | $ 414 | $ 420 |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Credit Quality Narrative (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2021USD ($) | |
Receivables [Abstract] | |
Individually evaluated for impairment, aggregate balances (greater than) | $ 500 |
Appropriate time frame on which to base historical losses for each portfolio segment (in years) | 5 years |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Credit Quality Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | $ 8,429 | $ 6,391 | $ 8,271 | $ 6,122 |
Provision (credit) for loan losses | 75 | 500 | 225 | 800 |
Recoveries of amounts charged off | 1 | 0 | 9 | 23 |
Balance, before amounts charged off | 8,505 | 6,891 | 8,505 | 6,945 |
Amounts charged off | 0 | (3) | 0 | (57) |
Balance end of period | 8,505 | 6,888 | 8,505 | 6,888 |
Residential real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 1,996 | 1,513 | 1,776 | 1,392 |
Provision (credit) for loan losses | 86 | 77 | 298 | 175 |
Recoveries of amounts charged off | 0 | 0 | 8 | 23 |
Balance, before amounts charged off | 2,082 | 1,590 | 2,082 | 1,590 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance end of period | 2,082 | 1,590 | 2,082 | 1,590 |
Construction real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 881 | 622 | 763 | 774 |
Provision (credit) for loan losses | 143 | (28) | 261 | (180) |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 1,024 | 594 | 1,024 | 594 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance end of period | 1,024 | 594 | 1,024 | 594 |
Commercial real estate | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 4,133 | 3,459 | 4,199 | 3,178 |
Provision (credit) for loan losses | (22) | 373 | (88) | 708 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 4,111 | 3,832 | 4,111 | 3,886 |
Amounts charged off | 0 | 0 | 0 | (54) |
Balance end of period | 4,111 | 3,832 | 4,111 | 3,832 |
Commercial | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 443 | 407 | 458 | 394 |
Provision (credit) for loan losses | (18) | 84 | (33) | 97 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 425 | 491 | 425 | 491 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance end of period | 425 | 491 | 425 | 491 |
Consumer | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 13 | 23 | 15 | 23 |
Provision (credit) for loan losses | (2) | 3 | (4) | 3 |
Recoveries of amounts charged off | 1 | 0 | 1 | 0 |
Balance, before amounts charged off | 12 | 26 | 12 | 26 |
Amounts charged off | 0 | (3) | 0 | (3) |
Balance end of period | 12 | 23 | 12 | 23 |
Municipal | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 199 | 85 | 214 | 76 |
Provision (credit) for loan losses | (118) | (6) | (133) | 3 |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 81 | 79 | 81 | 79 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance end of period | 81 | 79 | 81 | 79 |
Unallocated | ||||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||||
Balance beginning of period | 764 | 282 | 846 | 285 |
Provision (credit) for loan losses | 6 | (3) | (76) | (6) |
Recoveries of amounts charged off | 0 | 0 | 0 | 0 |
Balance, before amounts charged off | 770 | 279 | 770 | 279 |
Amounts charged off | 0 | 0 | 0 | 0 |
Balance end of period | $ 770 | $ 279 | $ 770 | $ 279 |
Allowance for Loan Losses and_5
Allowance for Loan Losses and Credit Quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | $ 58 | $ 58 | ||||
Collectively evaluated for impairment | 8,447 | 8,213 | ||||
Total allocated | 8,505 | $ 8,429 | 8,271 | $ 6,888 | $ 6,391 | $ 6,122 |
Residential real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 28 | 30 | ||||
Collectively evaluated for impairment | 2,054 | 1,746 | ||||
Total allocated | 2,082 | 1,996 | 1,776 | 1,590 | 1,513 | 1,392 |
Construction real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 1,024 | 763 | ||||
Total allocated | 1,024 | 881 | 763 | 594 | 622 | 774 |
Commercial real estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 30 | 21 | ||||
Collectively evaluated for impairment | 4,081 | 4,178 | ||||
Total allocated | 4,111 | 4,133 | 4,199 | 3,832 | 3,459 | 3,178 |
Commercial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 7 | ||||
Collectively evaluated for impairment | 425 | 451 | ||||
Total allocated | 425 | 443 | 458 | 491 | 407 | 394 |
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 12 | 15 | ||||
Total allocated | 12 | 13 | 15 | 23 | 23 | 23 |
Municipal | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 81 | 214 | ||||
Total allocated | 81 | 199 | 214 | 79 | 85 | 76 |
Unallocated | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for impairment | 0 | 0 | ||||
Collectively evaluated for impairment | 770 | 846 | ||||
Total allocated | $ 770 | $ 764 | $ 846 | $ 279 | $ 282 | $ 285 |
Allowance for Loan Losses and_6
Allowance for Loan Losses and Credit Quality Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 7,177 | $ 4,621 |
Collectively evaluated for impairment | 734,297 | 766,548 |
Individually evaluated for impairment | 741,474 | 771,169 |
Residential real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 1,691 | 1,782 |
Collectively evaluated for impairment | 214,334 | 181,384 |
Individually evaluated for impairment | 216,025 | 183,166 |
Construction real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 208 | 210 |
Collectively evaluated for impairment | 74,902 | 57,207 |
Individually evaluated for impairment | 75,110 | 57,417 |
Commercial real estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 5,266 | 2,422 |
Collectively evaluated for impairment | 311,677 | 318,205 |
Individually evaluated for impairment | 316,943 | 320,627 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 12 | 207 |
Collectively evaluated for impairment | 98,208 | 108,654 |
Individually evaluated for impairment | 98,220 | 108,861 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,638 | 2,601 |
Individually evaluated for impairment | 2,638 | 2,601 |
Municipal | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 32,538 | 98,497 |
Individually evaluated for impairment | $ 32,538 | $ 98,497 |
Allowance for Loan Losses and_7
Allowance for Loan Losses and Credit Quality Loan Ratings by Class (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 741,474 | $ 771,169 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 537,489 | 580,426 |
Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 194,328 | 182,981 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,657 | 7,762 |
Residential real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 216,025 | 183,166 |
Residential real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 195,730 | 166,119 |
Residential real estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 17,064 | 13,756 |
Residential real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,231 | 3,291 |
Construction real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 75,110 | 57,417 |
Construction real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 49,882 | 42,853 |
Construction real estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 25,020 | 14,319 |
Construction real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 208 | 245 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 316,943 | 320,627 |
Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 167,889 | 172,048 |
Commercial real estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 142,936 | 144,784 |
Commercial real estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6,118 | 3,795 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 98,220 | 108,861 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 88,819 | 98,314 |
Commercial | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,301 | 10,116 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 100 | 431 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,638 | 2,601 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,631 | 2,595 |
Consumer | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7 | 6 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Municipal | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 32,538 | 98,497 |
Municipal | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 32,538 | 98,497 |
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_8
Allowance for Loan Losses and Credit Quality Impaired Loans by Class (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded Investment | $ 1,815 | [1] | $ 1,815 | [1] | $ 1,851 | |||||
Principal Balance | 1,982 | [1] | 1,982 | [1] | 2,003 | |||||
Related Allowance | 58 | $ 130 | 58 | $ 130 | 58 | |||||
With no allowance recorded, recorded investment | 5,362 | [1] | 5,362 | [1] | 2,770 | [2] | ||||
With no allowance recorded, principal balance | 6,082 | [1] | 6,082 | [1] | 3,503 | [2] | ||||
Total, recorded investment | 7,177 | [1] | 5,512 | [3] | 7,177 | [1] | 5,512 | [3] | 4,621 | [2] |
Total, principal balance | 8,064 | [1] | 6,279 | [3] | 8,064 | [1] | 6,279 | [3] | 5,506 | [2] |
Average Recorded Investment | 7,286 | 5,328 | 6,398 | 5,298 | ||||||
Interest Income Recognized | 49 | 31 | 123 | 80 | ||||||
Government guarantees on impaired loans | 354 | 553 | 354 | 553 | 514 | |||||
Residential real estate | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded Investment | 203 | 203 | 208 | |||||||
Principal Balance | 213 | 213 | 218 | |||||||
Related Allowance | 28 | 35 | 28 | 35 | 30 | |||||
With no allowance recorded, recorded investment | 1,488 | [1] | 1,488 | [1] | 1,574 | [2] | ||||
With no allowance recorded, principal balance | 2,080 | [1] | 2,080 | [1] | 2,182 | [2] | ||||
Total, recorded investment | 1,691 | [1] | 1,959 | [3] | 1,691 | [1] | 1,959 | [3] | 1,782 | [2] |
Total, principal balance | 2,293 | [1] | 2,524 | [3] | 2,293 | [1] | 2,524 | [3] | 2,400 | [2] |
Average Recorded Investment | 1,715 | 1,724 | 1,738 | 1,654 | ||||||
Interest Income Recognized | 22 | 9 | 77 | 28 | ||||||
Construction real estate | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Related Allowance | 0 | 2 | 0 | 2 | 0 | |||||
With no allowance recorded, recorded investment | 208 | 208 | 210 | |||||||
With no allowance recorded, principal balance | 229 | 229 | 231 | |||||||
Total, recorded investment | 208 | 218 | 208 | 218 | 210 | |||||
Total, principal balance | 229 | 237 | 229 | 237 | 231 | |||||
Average Recorded Investment | 209 | 218 | 209 | 219 | ||||||
Interest Income Recognized | 1 | 1 | 2 | 2 | ||||||
Commercial real estate | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded Investment | 1,612 | 1,612 | 1,634 | |||||||
Principal Balance | 1,769 | 1,769 | 1,774 | |||||||
Related Allowance | 30 | 86 | 30 | 86 | 21 | |||||
With no allowance recorded, recorded investment | 3,654 | [1] | 3,654 | [1] | 788 | [2] | ||||
With no allowance recorded, principal balance | 3,759 | [1] | 3,759 | [1] | 890 | [2] | ||||
Total, recorded investment | 5,266 | [1] | 3,085 | [3] | 5,266 | [1] | 3,085 | [3] | 2,422 | [2] |
Total, principal balance | 5,528 | [1] | 3,264 | [3] | 5,528 | [1] | 3,264 | [3] | 2,664 | [2] |
Average Recorded Investment | 5,271 | 3,121 | 4,321 | 3,149 | ||||||
Interest Income Recognized | 25 | 16 | 38 | 38 | ||||||
Commercial | ||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||
Recorded Investment | 9 | |||||||||
Principal Balance | 11 | |||||||||
Related Allowance | 0 | 7 | 0 | 7 | 7 | |||||
With no allowance recorded, recorded investment | 12 | [1] | 12 | [1] | 198 | [2] | ||||
With no allowance recorded, principal balance | 14 | [1] | 14 | [1] | 200 | [2] | ||||
Total, recorded investment | 12 | [1] | 250 | [3] | 12 | [1] | 250 | [3] | 207 | [2] |
Total, principal balance | 14 | [1] | 254 | [3] | 14 | [1] | 254 | [3] | $ 211 | [2] |
Average Recorded Investment | 91 | 265 | 130 | 276 | ||||||
Interest Income Recognized | $ 1 | $ 5 | $ 6 | $ 12 | ||||||
[1] | Does not reflect government guaranties on impaired loans as of June 30, 2021 totaling $354 thousand. | |||||||||
[2] | Does not reflect government guaranties on impaired loans as of December 31, 2020 totaling $514 thousand. | |||||||||
[3] | Does not reflect government guaranties on impaired loans as of June 30, 2020 totaling $553 thousand. |
Allowance for Loan Losses and_9
Allowance for Loan Losses and Credit Quality Troubled Debt Restructured Loans (Details) $ in Thousands | Jun. 30, 2021USD ($)loan | Dec. 31, 2020USD ($)loan |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 40 | 45 |
Principal Balance | $ | $ 2,542 | $ 2,864 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 30 | 32 |
Principal Balance | $ | $ 1,691 | $ 1,782 |
Construction real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Principal Balance | $ | $ 83 | $ 87 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 6 | 6 |
Principal Balance | $ | $ 756 | $ 788 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 5 |
Principal Balance | $ | $ 12 | $ 207 |
Allowance for Loan Losses an_10
Allowance for Loan Losses and Credit Quality New TDR Activity (Details) - Residential real estate $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2020USD ($)loan | Jun. 30, 2020USD ($)loan | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Number of Loans | loan | 6 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 493 | $ 493 |
Post-Modification Outstanding Recorded Investment | $ 493 | $ 493 |
Allowance for Loan Losses an_11
Allowance for Loan Losses and Credit Quality Narrative Data (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021USD ($)loan | Jun. 30, 2020loan | Jun. 30, 2021USD ($)loan | Jun. 30, 2020loan | |
Credit Loss [Abstract] | ||||
Number of TDR loans modified within the previous twelve months that had subsequently defaulted | loan | 0 | 0 | 0 | 0 |
Outstanding balance of loans receiving payment deferrals | $ 159,100 | $ 159,100 | ||
Outstanding accrued interest balance of loans receiving payment deferrals | 946 | 946 | ||
Outstanding balance of loans receiving payment deferrals subject to modification terms | 2,000 | 2,000 | ||
Outstanding accrued interest balance of loans receiving payment deferrals, subject to modification terms | $ 78 | $ 78 |
Stock Based Compensation Narrat
Stock Based Compensation Narrative Data (Details) - 2014 Equity Plan - USD ($) | 6 Months Ended | |||
Jun. 30, 2021 | May 19, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for equity awards (in shares) | 50,000 | |||
Aggregate number of outstanding grants of RSUs and stock options (in shares) | 28,044 | |||
Stock options outstanding (in shares) | 3,500 | |||
Stock options exercisable (in shares) | 3,500 | |||
Intrinsic value of stock options | $ 43,000 | |||
Exercised in period (in shares) | 1,000 | |||
Unrecognized compensation expense, stock options | $ 0 | |||
Restricted Stock Units (RSUs) | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares common stock upon satisfaction of applicable vesting conditions (in shares) | 1 | 1 | ||
Unrecognized compensation expense, unvested RSUs | $ 396,000 | $ 209,000 | $ 329,000 | |
RSUs granted to non-employee directors (in shares) | 1,220 | |||
Unrecognized director compensation expense, unvested RSUs | $ 37,000 |
Stock Based Compensation RSUs G
Stock Based Compensation RSUs Granted and Unvested (Details) - 2014 Equity Plan - Restricted Stock Units (RSUs) | 6 Months Ended |
Jun. 30, 2021$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted (in shares) | 30,337 |
Number of Unvested RSUs (in shares) | 23,324 |
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 |
2021 Award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted (in shares) | 17,685 |
Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | $ 26.73 |
Number of Unvested RSUs (in shares) | 17,685 |
Other Comprehensive Income Comp
Other Comprehensive Income Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Equity [Abstract] | ||
Net unrealized gain on investment securities available-for-sale | $ 1,001 | $ 2,636 |
Other Comprehensive Income Tax
Other Comprehensive Income Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Before-Tax Amount | ||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | $ 1,165 | $ 830 | $ (2,069) | $ 2,202 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income | 0 | 0 | 0 | (11) |
Total other comprehensive income | 1,165 | 830 | (2,069) | 2,191 |
Tax (Expense) Benefit | ||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | (245) | (174) | 434 | (462) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income | 0 | 2 | ||
Total other comprehensive income | (245) | (174) | 434 | (460) |
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | 920 | 656 | (1,635) | 1,740 |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | 0 | 0 | 0 | (9) |
Total other comprehensive income (loss) | $ 920 | $ 656 | $ (1,635) | $ 1,731 |
Other Comprehensive Income Recl
Other Comprehensive Income Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Provision for income taxes | $ (603) | $ (487) | $ (1,144) | $ (843) |
Net income | $ (2,991) | $ (2,668) | $ (5,867) | (4,864) |
Reclassification out of Accumulated Other Comprehensive Income | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sales of investment securities available-for-sale | (11) | |||
Provision for income taxes | 2 | |||
Net income | $ (9) |
Fair Value Measurement Fair Val
Fair Value Measurement Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | $ 158,101 | $ 105,763 |
Mutual funds | 1,174 | 1,047 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
Mutual funds | 1,174 | 1,047 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 158,101 | 105,763 |
Mutual funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
Mutual funds | 0 | 0 |
U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 17,825 | 6,548 |
U.S. Government-sponsored enterprises | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
U.S. Government-sponsored enterprises | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 17,825 | 6,548 |
U.S. Government-sponsored enterprises | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
Agency mortgage-backed | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 102,649 | 62,352 |
Agency mortgage-backed | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
Agency mortgage-backed | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 102,649 | 62,352 |
Agency mortgage-backed | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 29,281 | 28,461 |
State and political subdivisions | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
State and political subdivisions | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 29,281 | 28,461 |
State and political subdivisions | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 8,346 | 8,402 |
Corporate | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 0 | 0 |
Corporate | Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | 8,346 | 8,402 |
Corporate | Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total debt securities available-for-sale | $ 0 | $ 0 |
Fair Value Measurement Fair V_2
Fair Value Measurement Fair Values and Carrying Amounts, Significant Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing deposits in banks | $ 12,948 | $ 12,699 |
Investment securities | 159,275 | 106,810 |
Loans held for sale | 42,149 | 32,188 |
Deposits | ||
Noninterest bearing | 243,573 | 215,245 |
Interest bearing | 610,540 | 637,369 |
Time | 113,567 | 141,688 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 61,231 | 122,771 |
Interest bearing deposits in banks | 0 | 0 |
Investment securities | 1,174 | 1,047 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits | ||
Noninterest bearing | 243,573 | 215,245 |
Interest bearing | 610,540 | 637,369 |
Time | 0 | 0 |
Borrowed funds | ||
Long-term | 0 | 0 |
Accrued interest payable | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Construction real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing deposits in banks | 12,950 | 12,699 |
Investment securities | 158,101 | 105,763 |
Loans held for sale | 43,207 | 33,437 |
Accrued interest receivable | 520 | 446 |
Deposits | ||
Noninterest bearing | 0 | 0 |
Interest bearing | 0 | 0 |
Time | 113,949 | 142,605 |
Borrowed funds | ||
Long-term | 7,483 | 7,585 |
Accrued interest payable | 66 | 108 |
Significant Other Observable Inputs (Level 2) | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Construction real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [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 | 2,810 | 3,683 |
Deposits | ||
Noninterest bearing | 0 | 0 |
Interest bearing | 0 | 0 |
Time | 0 | 0 |
Borrowed funds | ||
Long-term | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 216,779 | 185,890 |
Significant Unobservable Inputs (Level 3) | Construction real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 74,193 | 56,882 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 314,481 | 324,085 |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 96,600 | 106,358 |
Significant Unobservable Inputs (Level 3) | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 2,603 | 2,557 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 33,109 | 98,973 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 61,231 | 122,771 |
Interest bearing deposits in banks | 12,948 | 12,699 |
Investment securities | 159,275 | 106,810 |
Loans held for sale | 42,149 | 32,188 |
Accrued interest receivable | 3,330 | 4,129 |
Nonmarketable equity securities | 1,162 | 1,150 |
Deposits | ||
Noninterest bearing | 243,573 | 215,245 |
Interest bearing | 610,540 | 637,369 |
Time | 113,567 | 141,688 |
Borrowed funds | ||
Long-term | 7,164 | 7,164 |
Accrued interest payable | 66 | 108 |
Carrying Amount | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 213,775 | 181,355 |
Carrying Amount | Construction real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 74,027 | 56,643 |
Carrying Amount | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 311,815 | 315,522 |
Carrying Amount | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 97,718 | 108,382 |
Carrying Amount | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 2,624 | 2,586 |
Carrying Amount | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 32,432 | 98,264 |
Estimated Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and cash equivalents | 61,231 | 122,771 |
Interest bearing deposits in banks | 12,950 | 12,699 |
Investment securities | 159,275 | 106,810 |
Loans held for sale | 43,207 | 33,437 |
Accrued interest receivable | 3,330 | 4,129 |
Deposits | ||
Noninterest bearing | 243,573 | 215,245 |
Interest bearing | 610,540 | 637,369 |
Time | 113,949 | 142,605 |
Borrowed funds | ||
Long-term | 7,483 | 7,585 |
Accrued interest payable | 66 | 108 |
Estimated Fair Value | Residential real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 216,779 | 185,890 |
Estimated Fair Value | Construction real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 74,193 | 56,882 |
Estimated Fair Value | Commercial real estate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 314,481 | 324,085 |
Estimated Fair Value | Commercial | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 96,600 | 106,358 |
Estimated Fair Value | Consumer | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | 2,603 | 2,557 |
Estimated Fair Value | Municipal | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans, net | $ 33,109 | $ 98,973 |
Subsequent Events Narrative Dat
Subsequent Events Narrative Data (Details) - $ / shares | Aug. 05, 2021 | Jul. 21, 2021 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 |
Subsequent Event [Line Items] | ||||||
Dividends per common share (in usd per share) | $ 0.33 | $ 0.32 | $ 0.66 | $ 0.64 | ||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends cash paid (in usd per share) | $ 0.33 | |||||
Dividends per common share (in usd per share) | $ 0.33 |