Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 08, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Entity Registrant Name | FIRST US BANCSHARES, INC | ||
Document Type | 10-K | ||
Trading Symbol | FUSB | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 5,869,391 | ||
Entity Central Index Key | 0000717806 | ||
Entity Filer Category | Non-accelerated Filer | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Shell Company | false | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-14549 | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 63-0843362 | ||
Entity Address, Address Line One | 3291 U.S. Highway 280 | ||
Entity Address, City or Town | Birmingham | ||
Entity Address, State or Province | AL | ||
Entity Address, Postal Zip Code | 35243 | ||
City Area Code | 205 | ||
Local Phone Number | 582-1200 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
ICFR Auditor Attestation Flag | false | ||
Title of 12(b) Security | Common Stock, par value $0.01 per share | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Public Float | $ 60,150,607 | ||
Amendment Flag | false | ||
Auditor Firm ID | 213 | ||
Auditor Name | Carr, Riggs & Ingram, LLC | ||
Auditor Location | Atlanta, Georgia, United States | ||
Documents Incorporated by Reference | DOCUMENTS INCORPORATED BY REFERENCE Portions of the registrant’s definitive proxy statement for the 2023 Annual Meeting of Shareholders to be held on April 27, 2023 are incorporated by reference into Part III of this Annual Report on Form 10-K. |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 11,844 | $ 10,843 |
Interest-bearing deposits in banks | 18,308 | 50,401 |
Total cash and cash equivalents | 30,152 | 61,244 |
Federal funds sold | 1,768 | 82 |
Investment securities available-for-sale, at fair value | 130,795 | 130,883 |
Investment securities held-to-maturity, at amortized cost | 1,862 | 3,436 |
Federal Home Loan Bank stock, at cost | 1,359 | 870 |
Loans, net of allowance for loan and lease losses of $9,422 and $8,320, respectively | 764,451 | 700,030 |
Premises and equipment, net of accumulated depreciation of $21,623 and $21,916, respectively | 24,439 | 25,123 |
Cash surrender value of bank-owned life insurance | 16,399 | 16,141 |
Accrued interest receivable | 3,011 | 2,556 |
Goodwill and core deposit intangible, net | 7,801 | 8,069 |
Other real estate owned | 686 | 2,149 |
Other assets | 11,944 | 7,719 |
Total assets | 994,667 | 958,302 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest-bearing | 169,822 | 174,501 |
Interest-bearing | 700,203 | 663,625 |
Total deposits | 870,025 | 838,126 |
Accrued interest expense | 607 | 224 |
Other liabilities | 8,136 | 9,189 |
Short-term borrowings | 20,038 | 10,046 |
Long-term borrowings | 10,726 | 10,653 |
Total liabilities | 909,532 | 868,238 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,680,856 and 7,634,918 shares issued, respectively; 5,812,258 and 6,172,378 shares outstanding, respectively | 75 | 75 |
Additional paid-in capital | 14,510 | 14,163 |
Accumulated other comprehensive loss, net of tax | (7,241) | (276) |
Retained earnings | 104,460 | 98,428 |
Less treasury stock: 1,868,598 and 1,462,540 shares at cost, respectively | (26,669) | (22,326) |
Total shareholders’ equity | 85,135 | 90,064 |
Total liabilities and shareholders’ equity | $ 994,667 | $ 958,302 |
Consolidated Balance Sheets Det
Consolidated Balance Sheets Details (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 9,422 | $ 8,320 |
Accumulated depreciation | $ 21,623 | $ 21,916 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 7,680,856 | 7,634,918 |
Common stock, shares outstanding (in shares) | 5,812,258 | 6,172,378 |
Treasury stock, shares (in shares) | 1,868,598 | 1,462,540 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest income: | ||
Interest and fees on loans | $ 38,015 | $ 38,229 |
Interest on investment securities | 3,182 | 1,692 |
Total interest income | 41,197 | 39,921 |
Interest expense: | ||
Interest on deposits | 3,382 | 2,669 |
Interest on borrowings | 874 | 281 |
Total interest expense | 4,256 | 2,950 |
Net interest income | 36,941 | 36,971 |
Provision for loan and lease losses | 3,308 | 2,010 |
Net interest income after provision for loan and lease losses | 33,633 | 34,961 |
Non-interest income: | ||
Net (loss) gain on sales and prepayments of investment securities | (83) | 22 |
Lease income | 864 | 830 |
Other income, net | 1,516 | 1,600 |
Total non-interest income | 3,451 | 3,521 |
Non-interest expense: | ||
Salaries and employee benefits | 16,418 | 19,157 |
Net occupancy and equipment | 3,281 | 4,388 |
Computer services | 1,639 | 1,832 |
Fees for professional services | 1,060 | 1,275 |
Other expense | 5,674 | 6,104 |
Total non-interest expense | 28,072 | 32,756 |
Income before income taxes | 9,012 | 5,726 |
Provision for income taxes | 2,148 | 1,275 |
Net income | $ 6,864 | $ 4,451 |
Basic net income per share | $ 1.13 | $ 0.70 |
Diluted net income per share | 1.06 | 0.66 |
Dividends per share | $ 0.14 | $ 0.12 |
Service [Member] | ||
Non-interest income: | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 1,154 | $ 1,069 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,864 | $ 4,451 |
Other comprehensive (loss): | ||
Unrealized holding losses on securities available-for-sale arising during the year, net of tax benefit of $2,844 and $369, respectively | (8,534) | (1,106) |
Reclassification adjustment for net losses (gains) on securities available-for-sale realized in net income, net of tax expense (benefit) of $21 and $(6), respectively | 62 | (16) |
Unrealized holding gains on effective cash flow hedge derivatives arising during the year, net of tax expense of $480 and $298, respectively | 1,437 | 898 |
Reclassification adjustment for net gains on cash flow hedge derivatives realized in net income, net of tax expense of $25 and $0, respectively | 70 | |
Other comprehensive loss | (6,965) | (224) |
Total comprehensive (loss) income | $ (101) | $ 4,227 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive (Loss) Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding losses on securities available-for-sale arising during the year, tax benefit | $ (2,844) | $ (369) |
Reclassification adjustment for net losses (gains) on securities available-for-sale realized in net income, tax expense (benefit) | 21 | (6) |
Unrealized holding gains on effective cash flow hedge derivatives arising during the year, tax expense | 480 | 298 |
Reclassification adjustment for net gains on cash flow hedge derivatives realized in net income, tax expense | $ 25 | $ 0 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning balance, value at Dec. 31, 2020 | $ 86,678 | $ 75 | $ 13,786 | $ (52) | $ 94,722 | $ (21,853) |
Balance (in shares) at Dec. 31, 2020 | 6,176,556 | |||||
Net income | 4,451 | 4,451 | ||||
Net change in fair value of securities available-for-sale, net of tax | (1,122) | (1,122) | ||||
Net change in fair value of derivative instruments, net of tax | 898 | 898 | ||||
Dividends declared | (745) | (745) | ||||
Impact of stock-based compensation plans, net | 429 | 436 | (7) | |||
Impact of stock-based compensation plans, net (in shares) | 37,722 | |||||
Reissuance of treasury stock as compensation | 59 | (59) | 59 | |||
Reissuance of treasury stock as compensation (in shares) | 3,848 | |||||
Treasury stock repurchases | (525) | (525) | ||||
Treasury stock repurchases (in shares) | (45,748) | |||||
Ending balance, value at Dec. 31, 2021 | 90,064 | $ 75 | 14,163 | (276) | 98,428 | (22,326) |
Balance (in shares) at Dec. 31, 2021 | 6,172,378 | |||||
Net income | 6,864 | 6,864 | ||||
Net change in fair value of securities available-for-sale, net of tax | (8,472) | (8,472) | ||||
Net change in fair value of derivative instruments, net of tax | 1,507 | 1,507 | ||||
Dividends declared | (832) | (832) | ||||
Impact of stock-based compensation plans, net | 485 | 485 | ||||
Impact of stock-based compensation plans, net (in shares) | 43,096 | |||||
Reissuance of treasury stock as compensation | 138 | (138) | 138 | |||
Reissuance of treasury stock as compensation (in shares) | 9,184 | |||||
Treasury stock repurchases | (4,481) | (4,481) | ||||
Treasury stock repurchases (in shares) | (412,400) | |||||
Ending balance, value at Dec. 31, 2022 | $ 85,135 | $ 75 | $ 14,510 | $ (7,241) | $ 104,460 | $ (26,669) |
Balance (in shares) at Dec. 31, 2022 | 5,812,258 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.14 | $ 0.12 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 6,864 | $ 4,451 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 1,614 | 1,692 |
Provision for loan and lease losses | 3,308 | 2,010 |
Deferred income tax benefit | (367) | (401) |
Net loss (gain) on sale and prepayment of investment securities | 83 | (22) |
Cash received in settlement of derivatives contracts | 324 | |
Stock-based compensation expense | 485 | 436 |
Net amortization of securities | 195 | 338 |
Amortization of intangible assets | 268 | 341 |
Net gain on premises and equipment and other real estate | (207) | (53) |
Changes in assets and liabilities: | ||
(Increase) decrease in accrued interest receivable | (455) | 251 |
Decrease in other assets | 333 | 1,137 |
Increase (decrease) in accrued interest expense | 383 | (68) |
Decrease in other liabilities | (299) | (287) |
Net cash provided by operating activities | 12,529 | 9,825 |
Cash flows from investing activities: | ||
Net (increase) decrease in federal funds sold | (1,686) | 3 |
Purchases of investment securities, available-for-sale | (39,255) | (86,642) |
Proceeds from sales of investment securities, available-for-sale | 8,531 | |
Proceeds from maturities and prepayments of investment securities, available-for-sale | 19,250 | 38,975 |
Proceeds from maturities and prepayments of investment securities, held-to-maturity | 1,563 | 2,957 |
Net (increase) decrease in Federal Home Loan Bank stock | (489) | 265 |
Proceeds from the sale of premises and equipment and other real estate | 3,084 | 2,061 |
Net increase in loans | (69,935) | (65,112) |
Purchases of premises and equipment | (1,262) | (822) |
Net cash used in investing activities | (80,199) | (108,315) |
Cash flows from financing activities: | ||
Net increase in customer deposits | 31,899 | 55,914 |
Net increase in short-term borrowings | 9,992 | 29 |
Net proceeds from long-term borrowings | 10,653 | |
Net share-based compensation transactions | (7) | |
Treasury stock repurchases | (4,481) | (525) |
Dividends paid | (832) | (745) |
Net cash provided by financing activities | 36,578 | 65,319 |
Net decrease in cash and cash equivalents | (31,092) | (33,171) |
Cash and cash equivalents, beginning of period | 61,244 | 94,415 |
Cash and cash equivalents, end of period | $ 30,152 | $ 61,244 |
Description of Business
Description of Business | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Description of Business | 1. DESCRIPTION OF BUSINESS First US Bancshares, Inc., a Delaware corporation (“Bancshares” and, together with its subsidiaries, the “Company”), is a bank holding company formed in 1983 registered under the Bank Holding Company Act of 1956, as amended (the “BHCA”). Bancshares operates one banking subsidiary, First US Bank, an Alabama banking corporation (the “Bank”). Prior to its name change on October 11, 2016, Bancshares was known as United Security Bancshares, Inc. Bancshares and the Bank are headquartered in Birmingham, Alabama. The Bank conducts a general commercial banking business and offers banking services such as demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services and remote deposit capture. The Bank operates and serves its customers through 15 full-service banking offices located in Birmingham, Butler, Calera, Centreville, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa and Woodstock, Alabama; Knoxville and Powell, Tennessee; and Rose Hill, Virginia; as well as loan production offices in Mobile, Alabama and the Chattanooga, Tennessee area. The Bank provides a wide range of commercial banking services to small- and medium-sized businesses, property managers, business executives, professionals and other individuals. The Bank also performs indirect lending through third-party retailers and currently conducts this lending in 12 states, including Alabama, Florida, Georgia, Kentucky, Mississippi, Missouri, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. During the third quarter of 2021, the Company closed four banking offices located in Bucksville, Columbiana and south Tuscaloosa, Alabama, as well as Ewing, Virginia. The Bank has two wholly owned subsidiaries: Acceptance Loan Company, Inc., an Alabama corporation (“ALC”), and FUSB Reinsurance, Inc., an Arizona corporation (“FUSB Reinsurance”). As used herein, unless the context suggests otherwise, references to the “Company,” “we,” “us” and “our” refer to Bancshares, as well as the Bank, ALC, and FUSB Reinsurance, collectively. The Bank owns all of the stock of ALC. ALC is a finance company headquartered in Mobile, Alabama. During the third quarter of 2021, ALC ceased new business development and permanently closed its 20 branch lending locations in Alabama and Mississippi to the public. ALC continues to service its remaining portfolio of loans from its headquarters in Mobile, Alabama. FUSB Reinsurance was designed to reinsure or “underwrite” credit life and credit accident and health insurance policies sold to the Bank’s and ALC’s consumer loan customers. FUSB Reinsurance was responsible for the first level of risk on these policies up to a specified maximum amount, while the primary third-party insurer retained the remaining risk. While FUSB Reinsurance underwrote insurance contracts for both the Bank and ALC, in recent years, the majority of contracts were associated with ALC’s loans. Due to reduced contract volume, particularly following the cessation of business of ALC, during 2022, management of FUSB Reinsurance began procedures to terminate the entity’s activities. During 2022, FUSB Reinsurance ceased writing new insurance contracts, and reached an agreement with a third-party insurance provider to indemnify FUSB Reinsurance for all remaining liabilities associated with previously underwritten insurance policies. As of December 31, 2022, the remaining assets and liabilities of FUSB Reinsurance were transferred to the Bank, and it is anticipated that FUSB Reinsurance will be legally dissolved during 2023. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Principles of Consolidation The consolidated financial statements include the accounts of Bancshares, the Bank and its wholly-owned subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. The Company consolidates an entity if the Company has a controlling financial interest in the entity. Use of Estimates The accounting principles and reporting policies of the Company, and the methods of applying these principles, conform with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with general practices within the financial services industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets, and revenues and expenses for the period included in the consolidated statements of operations and of cash flows. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the accounting for the allowance for loan and lease losses, the right-of-use asset and lease liability, the value of other real estate owned (“OREO”) and certain collateral-dependent loans, consideration related to goodwill impairment testing and deferred tax asset valuation. In connection with the determination of the allowance for loan losses and OREO, management generally obtains independent appraisals for significant properties, evaluates the overall portfolio characteristics and delinquencies and monitors economic conditions. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, instruments with an original maturity of less than 90 days from issuance and amounts due from banks. Supplemental disclosures of cash flow information and non-cash transactions related to cash flows for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 (Dollars in Thousands) Cash paid during the year for: Interest $ 3,873 $ 3,018 Income taxes 2,855 1,375 Non-cash transactions: Assets acquired in settlement of loans 907 806 Transfers of closed branch assets to OREO 391 1,978 Reissuance of treasury stock as compensation 138 59 Revenue Recognition The Company records revenue when control of the promised products or services is transferred to the customer in an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for those products and services. Interest Income The majority of the Company’s revenue is generated through interest earned on financial instruments, including loans and investment securities. This revenue is recognized on an accrual basis and calculated through the use of non-discretionary formulas based on written contracts including loan agreements or securities contracts. Loan origination fees are accreted into interest income over the term of the loan. Service Charges on Deposit Accounts Service charges on deposit accounts include non-sufficient fund fees, overdraft fees and other service charges. When a depositor presents an item for payment in excess of available funds, non-sufficient funds fees are earned when an item is returned unpaid, and overdraft fees are earned when the Company provides the necessary funds to complete the transaction. The Company generates other service charges by providing depositors with proper safeguard and remittance of funds, as well as by providing optional services such as check imaging or treasury management. Charges for proper safeguard and remittance of funds are recognized monthly as the deposit customer maintains funds in the account, while revenue for optional services are recognized when the customer completes the transaction. Gains or Losses on the Sale of Investment Securities Gains or losses on the sale of investment securities are recognized as the sale transaction occurs with the cost of securities sold based on the specific identification method. Lease Income The Bank leases certain office facilities to third parties and classifies the leases as operating leases. Lease income is recognized on a monthly basis based on the contractual terms of the lease agreement. Bank-owned Life Insurance Bank-owned life insurance income represents income earned from the appreciation of the cash surrender value of insurance contracts held and the proceeds of insurance benefits. The Company recognizes revenue each period in the amount of the appreciation of the cash surrender value of the contracts. Revenue recognized from the proceeds of insurance benefits is recognized at the time the claim is confirmed. ATM Fee Income Fee income is generated by allowing the Bank’s debit cardholders to withdraw funds from the ATM’s of other financial institutions and by allowing non-customers to withdraw funds from the Bank’s ATMs. The Bank satisfies performance obligations for each transaction when the withdrawal is processed. The Bank does not direct the activities of the related processing network’s service and recognizes revenue on a net basis as the agent in each transaction. Other Miscellaneous Income Other miscellaneous income includes mortgage fees, credit insurance income, auto club revenue, wire transfer fees, safe deposit box fee income, check fees and other miscellaneous sources of income. The Company recognizes revenue associated with these sources of income in accordance with the satisfaction of the performance obligation based on the timing of the occurrence of a transaction or when service is provided. Reinsurance Activities Before FUSB Reinsurance ceased writing new insurance contracts in 2022, the Company assumed insurance risk related to credit life and credit accident and health insurance written by a non-affiliated insurance company for its customers that choose such coverage through a quota share reinsurance agreement. Assumed premiums on credit life insurance were deferred and earned over the period of insurance coverage using either a pro rata method or the effective yield method, depending on whether the amount of insurance coverage generally remains level or declines. Assumed premiums for accident and health policies were earned on an average of the pro rata and the effective yield methods. Investment Securities The investment portfolio consists of debt securities, including U.S. Treasury securities, obligations of U.S. government agencies, municipal bonds, residential and commercial mortgage-backed securities and corporate notes. Securities may be held in one of three portfolios: trading account securities, securities held-to-maturity or securities available-for-sale. Trading account securities are carried at estimated fair value, with unrealized gains and losses included in operations. The Company held no trading account securities as of December 31, 2022 or 2021. Investment securities held-to-maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts. With regard to investment securities held-to-maturity, management has the intent and the Bank has the ability to hold such securities until maturity. Investment securities available-for-sale are carried at fair value, with any unrealized gains or losses excluded from operations and reflected, net of tax, as a separate component of shareholders’ equity in accumulated other comprehensive income or loss. Investment securities available-for-sale are so classified because management may decide to sell certain securities prior to maturity for liquidity, tax planning or other valid business purposes. When the fair value of a security falls below carrying value, an evaluation must be made to determine whether the unrealized loss is a temporary or other-than-temporary impairment. Impaired securities that are not deemed to be temporarily impaired are written down by a charge to operations to the extent that the impairment is related to credit losses. The amount of impairment related to other factors is recognized in other comprehensive income or loss. The Company uses a systematic methodology to evaluate potential impairment of its investments that considers, among other things, the magnitude and duration of the decline in fair value, the financial health and business outlook of the issuer and the Company’s ability and intent to hold the investment until such time as the security recovers its fair value. Interest earned on investment securities available-for-sale is included in interest income. Amortization of premiums and discounts on investment securities is determined by the interest method and included in interest income. Gains and losses on the sale of investment securities available-for-sale, computed principally on the specific identification method, are shown separately in non-interest income. The Company also holds Federal Home Loan Bank (“FHLB”) stock, which, based on the redemption provision of the FHLB, has no quoted market value and is carried at cost. Dividends earned on FHLB stock are included in interest income. Derivatives and Hedging Activities The Company uses derivative instruments to minimize unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the repricing characteristics of certain assets and liabilities so that changes in interest rates do not adversely affect net interest margin and cash flow. Derivative instruments utilized by the Company generally include interest rate swaps, caps and floors, and are carried as assets and/or liabilities at fair value on the Company’s consolidated balance sheets. The Company does not use derivatives for trading or speculative purposes and generally enters into transactions that have a qualifying hedge relationship. Depending upon the characteristics of the hedged item, derivatives are classified as either cash flow hedges or fair value hedges. When cash flow or fair value hedging strategies are utilized, the Company specifically identifies the derivative instrument as a hedge and identifies the risk that is being hedged contemporaneously with the execution of the hedge transaction. Cash flow hedge relationships mitigate exposure to variability of future cash flows or other forecasted transactions. The change in fair value of cash flow hedges is recorded, net of tax, in accumulated other comprehensive income (loss) except for amounts excluded from hedge effectiveness. Amounts excluded from hedge effectiveness are recorded in earnings. Fair value hedge relationships mitigate exposure to the change in fair value of the hedged risk in an asset, liability, or firm commitment. Gains or losses attributable to the derivative instrument, as well as gains or losses attributable to changes in the fair value of the hedged item are recognized in interest income or interest expense in the same income statement line item with the hedged item in the period in which the change in fair value occurs. To the extent the changes in fair value of the derivative instrument do not offset the changes in the fair value of the hedged item, the difference is recognized in earnings. The corresponding adjustment to the hedged asset or liability is included in the basis of the hedged item, while the corresponding change in the fair value of the derivative instrument is recorded as an adjustment to other assets or other liabilities, as applicable. The Company has entered into certain fair value hedges using the last-of-layer method, which allows the Company to hedge the interest rate risk of prepayable financial assets by designating as the hedged item a stated amount of a closed portfolio that is not expected to be affected by prepayments, defaults, or other factors impacting the timing and amount of cash flows. If a hedge relationship is de-designated or if hedge accounting is discontinued because the hedged item no longer exists, or does not meet the definition of a firm commitment, or because it is probable that the forecasted transaction will no longer occur, the derivative instrument will continue to be recorded in other assets or liabilities in the consolidated balance sheets at its estimated fair value, with changes in fair value recognized in non-interest expense. Any asset or liability that was recognized pursuant to a firm commitment is removed from the consolidated balance sheets and recognized in non-interest expense. Gains or losses that were unrecognized and aggregated in accumulated other comprehensive gain (loss) pursuant to a cash flow hedging relationship are recognized immediately in non-interest expense. The Company may also enter into derivative contracts that are not designated as hedges in order to mitigate economic risks or risks associated with volatility in connection with customer derivative transactions. Loans and Interest Income Loans are reported at principal amounts outstanding, adjusted for unearned income, net deferred loan origination fees and costs, purchase premiums and discounts, write-downs and the allowance for loan losses. Loan origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized as an adjustment to the yield of the related loans, on an effective yield basis. Interest on all loans is accrued and credited to income based on the principal amount outstanding. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. Upon such discontinuance, all unpaid accrued interest is reversed against current income unless the collateral for the loan is sufficient to cover the accrued interest. Interest received on non-accrual loans generally is either applied against principal or reported as interest income in accordance with management’s judgment as to the collectability of principal. The policy for interest recognition on impaired loans is consistent with the non-accrual interest recognition policy. Generally, loans are restored to accrual status when the obligation is brought current and the borrower has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. Allowance for Loan and Lease Losses The allowance for loan and lease losses is determined based on various components for individually impaired loans and for homogeneous pools of loans and leases. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and reduced by charge-offs, net of recoveries by portfolio segment. The methodology for determining charge-offs is consistently applied to each segment. The allowance for loan and lease losses is maintained at a level that, in management’s judgment, is adequate to absorb credit losses inherent in the loan and lease portfolio. The amount of the allowance is based on management’s evaluation of the collectability of the loan and lease portfolio, including the nature of the portfolio, and changes in its risk profile, credit concentrations, historical trends and economic conditions. This evaluation also considers the balance of impaired loans. Losses on individually identified impaired loans are measured based on the present value of expected future cash flows, discounted at each loan’s original effective market interest rate. As a practical expedient, impairment may be measured based on the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. When the measure of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the provision added to the allowance for loan losses. In general, all loans of $ 0.5 million or more and, at ALC, any loans of $ 50 thousand or more that are 90 days or more past due are identified for impairment analysis. One-to-four family residential mortgages and consumer installment loans are subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, loss experience and other factors. Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from estimates. However, estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings during periods in which they become known. Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation, and amortization is computed principally by the straight-line method over the estimated useful lives of the assets or the expected lease terms for leasehold improvements, whichever is shorter. Useful lives for all premises and equipment range from three to forty years . Bank Owned Life Insurance The Company has purchased life insurance policies on certain directors and former executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Goodwill and Other Intangible Assets Goodwill arises from business combinations and is generally determined as the excess of cost over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is determined to have an indefinite useful life and is not amortized but tested for impairment at least annually or more frequently if events or circumstances exist that indicate that a goodwill impairment test should be performed. The Company performs its annual goodwill impairment test as of October 1st. Other intangible assets consist of core deposit intangible assets arising from acquisitions. Core deposit intangibles have definite useful lives and are amortized on an accelerated basis over their estimated useful lives. The Company’s core deposit intangible assets have estimated useful lives of seven years . In addition, these intangible assets are evaluated for impairment whenever events or circumstances exist that indicate that the carrying amount should be reevaluated. Other Real Estate Owned (OREO) OREO consists of properties acquired through a foreclosure or in satisfaction of loans, as well as closed Bank and ALC branches. These properties are carried at net realizable value, less estimated selling costs. Losses arising from the acquisition of properties are charged against the allowance for loan losses. Gains or losses realized upon the sale of OREO and additional losses related to subsequent valuation adjustments are determined on a specific property basis and are included as a component of non-interest expense along with carrying costs. Income Taxes The Company accounts for income taxes on the accrual basis through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the consolidated financial statement carrying amounts and the basis of existing assets and liabilities. Deferred tax assets are also recorded for any tax attributes, such as tax credit and net operating loss carryforwards. The net balance of deferred tax assets and liabilities is reported in other assets in the consolidated balance sheets. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the realization of deferred tax assets based on all positive and negative evidence available at the balance sheet date. Realization of deferred tax assets is based on the Company’s judgments about relevant factors affecting realization, including taxable income within any applicable carryback periods, future projected taxable income, reversal of taxable temporary differences and other tax planning strategies to maximize realization of deferred tax assets. A valuation allowance is recorded for any deferred tax assets that are not “more likely than not” to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit for which there is a greater than 50% likelihood that such amount would be realized upon examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest expense, interest income and penalties related to unrecognized tax benefits within current income tax expense. Stock-Based Compensation Compensation expense is recognized for stock options and restricted stock awards issued to employees based on the fair value of these awards at the date of grant. The Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize compensation expense net of forfeitures. Treasury Stock Treasury stock purchases and sales are accounted for using the cost method. Advertising Costs Advertising costs for promoting the Company are minimal and expensed as incurred. Segment Reporting Management has identified two reportable operating segments of Bancshares: the Bank and ALC. The reportable segments were determined based on the internal management reporting system and comprise Bancshares’ and the Bank’s significant subsidiaries. Segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions were eliminated in the determination of consolidated balances. Reclassification Certain disclosures in the notes to the prior period consolidated financial statements have been reclassified to conform to the 2022 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding (basic shares). Included in basic shares are shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors, as well as shares of restricted stock that have been granted pursuant to Bancshares’ 2013 Incentive Plan (as amended, the “2013 Incentive Plan”) previously approved by Bancshares’ shareholders. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period (dilutive shares). The dilutive shares consist of nonqualified stock option grants issued to employees and members of Bancshares’ Board of Directors pursuant to the 2013 Incentive Plan. The following table reflects weighted average shares used to calculate basic and diluted net income per share for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 2021 Weighted average shares outstanding 5,969,575 6,205,261 Weighted average director deferred shares 114,483 114,096 Basic shares 6,084,058 6,319,357 Dilutive shares 419,650 420,250 Diluted shares 6,503,708 6,739,607 Year Ended December 31, 2022 2021 (Dollars in Thousands, Net income $ 6,864 $ 4,451 Basic net income per share $ 1.13 $ 0.70 Diluted net income per share $ 1.06 $ 0.66 Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities, settlement of derivative contracts or changes in the fair value of cash flow derivatives. Accounting Policies Recently Adopted ASU 2020-04 and ASU 2021-01, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These ASUs provide optional and temporary relief, in the form of optional expedients and exceptions, for applying GAAP to modifications of contracts, hedging relationships and other transactions affected by reference rate (e.g. LIBOR) reforms. The Company utilizes LIBOR, among other indexes, as a reference rate for underwriting certain variable rate loans and interest rate hedging instruments. Management has identified all contracts referencing LIBOR and will continue to monitor risks associated with the discontinuance of LIBOR until remediation of such contracts is complete. Reference rate reform has not had, nor does the Company expect it to have, a material effect on the Company’s consolidated balance sheet, operations or cash flows. ASU 2022-01, "Fair Value Hedging - Portfolio Layer Method - Derivatives and Hedging (Topic 815) ." In March 2022, the FASB issued ASU 2022-01. The amendments in this standard update expand the current last-of-layer method of hedge accounting that permits only one hedged layer to allow multiple hedged layers of a single closed portfolio. This standard update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2022-01 on January 1, 2023. The adoption of this standard update is not expected to have a material impact on the Company's consolidated financial statements; however, the impact will be dependent on future hedging activity. ASU 2017-04 , “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. As originally issued, ASU 2017-04 was effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2017-04 by three years for smaller reporting companies, including the Company. The ASU became effective for the Company on January 1, 2023. The adoption of this standard update is not currently expected to have a material effect on the Company’s financial statements; however, the impact will be dependent on future evaluations of goodwill impairment that will continue to be performed by management on an annual basis. ASU 2016-13 , "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables and held-to-maturity debt securities. Known as the Current Expected Credit Loss (CECL) model, the revised guidance removes all current recognition thresholds and requires companies to recognize an allowance for lifetime expected credit losses. Credit losses will be immediately recognized through net income; the amount recognized will be based on the current estimate of contractual cash flows not expected to be collected over the financial asset’s contractual term. The standard also adds disclosure requirements intended to enable users of the financial statements to understand credit risk in the portfolio and how management monitors credit quality, management’s estimate of expected credit losses, and changes in the estimate of credit losses during the period. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2019, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by three years for smaller reporting companies, including the Company. The standard became effective for the Company on January 1, 2023, and the Company recorded a transition adjustment that increased loan loss reserves by approximately $ 2.4 million. In accordance with transition accounting guidance, the transition adjustment was recorded directly to retained earnings during the first quarter of 2023 and will not impact current period earnings. In 2022, the FASB introduced ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures.” ASU 2022-02 seeks to improve the decision usefulness of information provided to investors concerning certain loan refinancings, restructurings and write-offs. The ASU eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL accounting model and enhances the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the amendments of ASU 2022-02 on January 1, 2023, concurrent with the adoption of the CECL accounting model. The amendments of ASU 2022-02 include only changes to certain financial statement disclosures; and, therefore, adoption of ASU 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements or results of operations. |
Restructuring Charges
Restructuring Charges | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring Charges | 3. RESTRUCTURING CHARGES Effective September 3, 2021, ALC ceased new business development and permanently closed its 20 branch lending locations in Alabama and Mississippi to the public. The closure of ALC’s branches eliminated the majority of ALC’s full-time employment positions during the third quarter of 2021. ALC continues to service its remaining portfolio of loans from its headquarters in Mobile, Alabama. The cessation of new business and closure of ALC’s branch locations were undertaken by the Company as part of a long-term strategy to reduce expenses, fortify asset quality, and focus the Company’s loan growth efforts in other areas, including the Bank’s commercial lending and consumer indirect lending efforts. Total restructuring charges incurred during the years ended December 31, 2022 and 2021 consisted of the following: Year Ended Year Ended December 31, 2022 December 31, 2021 Total (Dollars in Thousands) Expense Category Severance and personnel expenses $ 108 $ 263 $ 371 Lease termination costs 2 224 226 Fixed asset valuation adjustments — 239 239 Termination of technology contracts 45 85 130 Other expenses — 93 93 Total expenses $ 155 $ 904 $ 1,059 As of December 31, 2022, the majority of restructuring charges associated with the closure of ALC's branches have been incurred. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 4. INVESTMENT SECURITIES Details of investment securities available-for-sale and held-to-maturity as of December 31, 2022 and 2021 were as follows: Available-for-Sale December 31, 2022 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Residential $ 47,659 $ 2 $ ( 3,704 ) $ 43,957 Commercial 12,169 4 ( 480 ) 11,693 Obligations of U.S. government-sponsored agencies 5,116 — ( 846 ) 4,270 Obligations of states and political subdivisions 2,166 — ( 94 ) 2,072 Corporate notes 17,817 2 ( 1,898 ) 15,921 U.S. Treasury securities 56,956 — ( 4,074 ) 52,882 Total $ 141,883 $ 8 $ ( 11,096 ) $ 130,795 Held-to-Maturity December 31, 2022 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Commercial $ 1,167 $ — $ ( 41 ) $ 1,126 Obligations of U.S. government-sponsored agencies 610 — ( 40 ) 570 Obligations of states and political subdivisions 85 — ( 12 ) 73 Total $ 1,862 $ — $ ( 93 ) $ 1,769 Available-for-Sale December 31, 2021 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Residential $ 46,020 $ 450 $ ( 242 ) $ 46,228 Commercial 24,647 371 ( 47 ) 24,971 Obligations of U.S. government-sponsored agencies 5,207 — ( 15 ) 5,192 Obligations of states and political subdivisions 4,247 80 ( 10 ) 4,317 Corporate notes 15,458 76 ( 52 ) 15,482 U.S. Treasury securities 35,097 — ( 404 ) 34,693 Total $ 130,676 $ 977 $ ( 770 ) $ 130,883 Held-to-Maturity December 31, 2021 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Commercial $ 2,115 $ 29 $ — $ 2,144 Obligations of U.S. government-sponsored agencies 768 10 — 778 Obligations of states and political subdivisions 553 2 — 555 Total $ 3,436 $ 41 $ — $ 3,477 The scheduled maturities of investment securities available-for-sale and held-to-maturity as of December 31, 2022 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (Dollars in Thousands) Maturing within one year $ 511 $ 511 $ — $ — Maturing after one to five years 61,068 57,159 — — Maturing after five to ten years 67,309 60,872 1,606 1,536 Maturing after ten years 12,995 12,253 256 233 Total $ 141,883 $ 130,795 $ 1,862 $ 1,769 For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments. The following table reflects gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2022 and 2021. Available-for-Sale December 31, 2022 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 19,876 $ ( 952 ) $ 23,903 $ ( 2,752 ) Commercial 9,720 ( 357 ) 1,247 ( 123 ) Obligations of U.S. government-sponsored agencies — — 4,270 ( 846 ) Obligations of states and political subdivisions 1,559 ( 41 ) 512 ( 53 ) Corporate notes 6,845 ( 898 ) 8,075 ( 1,000 ) U.S. Treasury securities 21,240 ( 698 ) 31,642 ( 3,376 ) Total $ 59,240 $ ( 2,946 ) $ 69,649 $ ( 8,150 ) Held-to-Maturity December 31, 2022 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ 1,125 $ ( 41 ) $ — $ — Obligations of U.S. government-sponsored agencies 215 ( 7 ) 356 ( 33 ) Obligations of states and political subdivisions 73 ( 12 ) — — Total $ 1,413 $ ( 60 ) $ 356 $ ( 33 ) Available-for-Sale December 31, 2021 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 31,346 $ ( 240 ) $ 253 $ ( 2 ) Commercial 2,245 ( 12 ) 2,970 ( 35 ) Obligations of U.S. government-sponsored agencies 4,987 ( 13 ) 194 ( 2 ) Obligations of states and political subdivisions 561 ( 10 ) — — Corporate notes 9,092 ( 52 ) — — U.S. Treasury securities 34,692 ( 404 ) — — Total $ 82,923 $ ( 731 ) $ 3,417 $ ( 39 ) There were no held-to-maturity securities in an unrealized loss position as of December 31, 2021. Due to the increasing interest rate environment during the year ended December 31, 2022, gross unrealized losses increased, particularly within the Company’s available-for-sale portfolio. Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: (i) the length of time and the extent to which fair value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether the Company intends to sell the securities; and (iv) whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. As of December 31, 2022 , 38 debt securities had been in a loss position for more than 12 months, and 86 debt securities had been in a loss position for less than 12 months. As of December 31, 2021 , ten debt securities had been in a loss position for more than 12 months, and 32 debt securities had been in a loss position for less than 12 months. As of both December 31, 2022 and 2021 , the losses for all securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. Further, the Company has the current intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. The Company did no t recognize any other-than-temporary impairments as of December 31, 2022 and 2021. Investment securities with a carrying value of $ 54.7 million and $ 52.2 million as of December 31, 2022 and 2021 , respectively, were pledged to secure public deposits and for other purposes. |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 12 Months Ended |
Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Loans and Allowance for Loan and Lease Losses | 5. LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES Portfolio Segments The Company has divided the loan portfolio into the following portfolio segments based on risk characteristics: Construction, land development and other land loans – Commercial construction, land and land development loans include loans for the development of residential housing projects, loans for the development of commercial and industrial use property, loans for the purchase and improvement of raw land and loans primarily for agricultural production that are secured by farmland. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrowing entity. Secured by 1-4 family residential properties – These loans include conventional mortgage loans on one-to-four family residential properties. The properties may serve as the borrower’s primary residence, vacation home or investment property. Also included in this portfolio are home equity loans and lines of credit. This type of lending, which is secured by a first or second mortgage on the borrower’s residence, allows customers to borrow against the equity in their home. Secured by multi-family residential properties – This portfolio segment includes mortgage loans secured by apartment buildings. Secured by non-farm, non-residential properties – This portfolio segment includes real estate loans secured by commercial and industrial properties, office or mixed-use facilities, strip shopping centers or other commercial property. These loans are generally guaranteed by the principals of the borrowing entity. Commercial and industrial loans and leases – This portfolio segment includes loans and leases to commercial customers for use in the normal course of business. These credits may be loans, lines of credit and leases to financially strong borrowers, secured by inventories, equipment or receivables, and are generally guaranteed by the principals of the borrowing entity. Direct consumer – This portfolio segment includes a variety of secured and unsecured personal loans, including automobile loans, loans for household and personal purposes and all other direct consumer installment loans. Branch retail – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom ALC had an established relationship through its branch network to provide financing for the retail products sold if applicable underwriting standards were met. The collateral securing these loans generally includes personal property items such as furniture, ATVs and home appliances. Indirect consumer – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom the Company has an established relationship to provide financing for the retail products sold if applicable underwriting standards are met. The collateral securing these loans generally includes recreational vehicles, campers, boats, horse trailers and cargo trailers. As of December 31, 2022 and 2021, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: December 31, 2022 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 54,396 $ — $ 54,396 Secured by 1-4 family residential properties 86,946 1,480 88,426 Secured by multi-family residential properties 67,917 — 67,917 Secured by non-farm, non-residential properties 199,965 — 199,965 Commercial and industrial loans (1) 73,561 — 73,561 Consumer loans: Direct consumer 5,145 4,908 10,053 Branch retail — 14,237 14,237 Indirect 266,567 — 266,567 Total loans 754,497 20,625 775,122 Less: Unearned interest, fees and deferred cost 799 450 1,249 Allowance for loan losses 8,057 1,365 9,422 Net loans $ 745,641 $ 18,810 $ 764,451 December 31, 2021 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 67,048 $ — $ 67,048 Secured by 1-4 family residential properties 70,439 2,288 72,727 Secured by multi-family residential properties 46,000 — 46,000 Secured by non-farm, non-residential properties 197,901 — 197,901 Commercial and industrial loans (1) 73,947 — 73,947 Consumer loans: Direct consumer 5,972 15,717 21,689 Branch retail — 25,692 25,692 Indirect 205,940 — 205,940 Total loans 667,247 43,697 710,944 Less: Unearned interest, fees and deferred cost ( 324 ) 2,918 2,594 Allowance for loan losses 7,038 1,282 8,320 Net loans $ 660,533 $ 39,497 $ 700,030 (1) Includes equipment financing leases and PPP loans. As of December 31, 2022 and 2021 , equipment financing leases totaled $ 10.3 million and $ 11.0 million, respectively. As of December 31, 2022 and 2021 , PPP loans totaled $ 6 thousand and $ 1.7 million, respectively. The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 53.0 % and 54.0 % % of the portfolio was concentrated in loans secured by real estate as of December 31, 2022 and 2021, respectively. Loans with a carrying value of $ 68.2 million and $ 66.6 million were pledged as collateral to secure FHLB borrowings as of December 31, 2022 and 2021, respectively. Related Party Loans In the ordinary course of business, the Bank makes loans to certain officers and directors of the Company, including companies with which they are associated. These loans are made on the same terms as those prevailing for comparable transactions with unrelated parties. Management believes that such loans do not represent more than a normal risk of collectability, nor do they present other unfavorable features. The aggregate balances of such related party loans and commitments as of December 31, 2022 and 2021 were $ 0.2 million and $ 0.3 million, respectively. During the year ended December 31, 2022 , there were no new loans to these parties, and repayments by active related parties were $ 0.1 million. During the year ended December 31, 2021 , there were no new loans to these parties, and repayments by active related parties were $ 0.1 million. Allowance for Loan and Lease Losses The following tables present changes in the allowance for loan and lease losses during the years ended December 31, 2022 and 2021 and the related loan balances by loan type as of December 31, 2022 and 2021: As of and for the Year Ended December 31, 2022 Construction, 1-4 Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for loan and lease losses: Beginning balance $ 628 $ 690 $ 437 $ 1,958 $ 860 $ 1,004 $ 304 $ 2,439 $ 8,320 Charge-offs — ( 40 ) — — — ( 1,958 ) ( 633 ) ( 382 ) ( 3,013 ) Recoveries 2 39 — 5 0 565 151 45 807 Provision ( 113 ) 143 209 7 59 1,255 696 1,052 3,308 Ending balance $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 866 $ 518 $ 3,154 $ 9,422 Ending balance of allowance Individually evaluated for $ — $ 7 $ — $ — $ 252 $ — $ — $ — $ 259 Collectively evaluated for 517 825 646 1,970 667 866 518 3,154 9,163 Total allowance for loan and lease losses $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 866 $ 518 $ 3,154 $ 9,422 Ending balance of loans Individually evaluated for $ — $ 582 $ — $ 2,492 $ 2,429 $ 18 $ — $ — $ 5,521 Collectively evaluated for 54,396 87,844 67,917 197,473 71,132 10,035 14,237 266,567 769,601 Total loans receivable $ 54,396 $ 88,426 $ 67,917 $ 199,965 $ 73,561 $ 10,053 $ 14,237 $ 266,567 $ 775,122 As of and for the Year Ended December 31, 2021 Construction, 1-4 Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for loan and lease losses: Beginning balance $ 393 $ 639 $ 577 $ 1,566 $ 1,008 $ 1,202 $ 373 $ 1,712 $ 7,470 Charge-offs ( 23 ) ( 12 ) — — ( 6 ) ( 1,230 ) ( 377 ) ( 483 ) ( 2,131 ) Recoveries 22 14 — 5 21 626 215 68 971 Provision 236 49 ( 140 ) 387 ( 163 ) 406 93 1,142 2,010 Ending balance $ 628 $ 690 $ 437 $ 1,958 $ 860 $ 1,004 $ 304 $ 2,439 $ 8,320 Ending balance of allowance Individually evaluated for $ — $ 10 $ — $ — $ 57 $ — $ — $ — $ 67 Collectively evaluated for 628 680 437 1,958 803 1,004 304 2,439 8,253 Total allowance for loan and lease losses $ 628 $ 690 $ 437 $ 1,958 $ 860 $ 1,004 $ 304 $ 2,439 $ 8,320 Ending balance of loans Individually evaluated for $ — $ 646 $ — $ 1,051 $ 880 $ 21 $ — $ — $ 2,598 Collectively evaluated for 67,048 72,081 46,000 196,850 73,067 21,668 25,692 205,940 708,346 Total loans receivable $ 67,048 $ 72,727 $ 46,000 $ 197,901 $ 73,947 $ 21,689 $ 25,692 $ 205,940 $ 710,944 Credit Quality Indicators The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, construction, land, multi-family real estate, other commercial real estate, and commercial and industrial loans are graded based on pre-determined risk metrics and categorized into one of nine risk grades. These risk grades can be summarized into categories described as pass, special mention, substandard, doubtful and loss, as described in further detail below. • Pass (Risk Grades 1-5): Loans in this category include obligations in which the probability of default is considered low. • Special Mention (Risk Grade 6): Loans in this category exhibit potential credit weaknesses or downward trends deserving management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Although a special mention asset has a higher probability of default than pass-rated categories, its default is not imminent. • Substandard (Risk Grade 7): Loans in this category have defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard. • Doubtful (Risk Grade 8): Loans classified as doubtful have all of the weaknesses found in substandard loans, with the added characteristic that the weaknesses make collection of debt in full, based on currently existing facts, conditions and values, highly questionable or improbable. Serious problems exist such that partial loss of principal is likely; however, because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Such pending factors may include proposed merger, acquisition or liquidation procedures, capital injection, perfection of liens on additional collateral and refinancing plans. Loans classified as doubtful may include loans to borrowers that have demonstrated a history of failing to live up to agreements. The Company did not have any loans classified as Doubtful (Risk Grade 8) as of December 31, 2022 or 2021. • Loss (Risk Grade 9): Loans are classified in this category when borrowers are deemed incapable of repayment of unsecured debt. Loans to such borrowers are considered uncollectable and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not prudent to defer writing off these assets, even though partial recovery may be realized in the future. The Company did not have any loans classified as Loss (Risk Grade 9) as of December 31, 2022 or 2021. Because residential real estate and consumer loans are more uniform in nature, each loan is categorized into one of two risk grades, depending on whether the loan is considered to be performing or nonperforming. Performing loans are loans that are paying principal and interest in accordance with a contractual agreement. Nonperforming loans are loans that have demonstrated characteristics that indicate a probability of loss. The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2022: December 31, 2022 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 54,396 $ — $ — $ 54,396 Secured by multi-family residential properties 67,917 — — 67,917 Secured by non-farm, non-residential properties 196,813 651 2,501 199,965 Commercial and industrial loans 70,515 — 3,046 73,561 Total $ 389,641 $ 651 $ 5,547 $ 395,839 As a percentage of total loans 98.43 % 0.17 % 1.40 % 100.00 % December 31, 2022 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 87,302 $ 1,124 $ 88,426 Consumer loans: Direct consumer 10,007 46 10,053 Branch retail 14,205 32 14,237 Indirect 266,496 71 266,567 Total $ 378,010 $ 1,273 $ 379,283 As a percentage of total loans 99.66 % 0.34 % 100.00 % The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2021: December 31, 2021 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 67,046 $ — $ 2 $ 67,048 Secured by multi-family residential properties 43,472 2,528 — 46,000 Secured by non-farm, non-residential properties 189,425 7,442 1,034 197,901 Commercial and industrial loans 72,116 333 1,498 73,947 Total $ 372,059 $ 10,303 $ 2,534 $ 384,896 As a percentage of total loans 96.66 % 2.68 % 0.66 % 100.00 % December 31, 2021 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 71,526 $ 1,201 $ 72,727 Consumer loans: Direct consumer 20,939 750 21,689 Branch retail 25,486 206 25,692 Indirect 205,940 — 205,940 Total $ 323,891 $ 2,157 $ 326,048 As a percentage of total loans 99.34 % 0.66 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2022: As of December 31, 2022 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 54,396 $ 54,396 $ — Secured by 1-4 family residential 800 87 78 965 87,461 88,426 — Secured by multi-family residential — — — — 67,917 67,917 — Secured by non-farm, non-residential 137 — — 137 199,828 199,965 — Commercial and industrial loans 61 — 300 361 73,200 73,561 — Consumer loans: Direct consumer 250 49 30 329 9,724 10,053 — Branch retail 257 85 32 374 13,863 14,237 Indirect 186 55 71 312 266,255 266,567 — Total $ 1,691 $ 276 $ 511 $ 2,478 $ 772,644 $ 775,122 $ — As a percentage of total loans 0.21 % 0.04 % 0.07 % 0.32 % 99.68 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2021: As of December 31, 2021 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 67,048 $ 67,048 $ — Secured by 1-4 family residential 349 23 20 392 72,335 72,727 — Secured by multi-family residential — — — — 46,000 46,000 — Secured by non-farm, non-residential 403 — — 403 197,498 197,901 — Commercial and industrial loans 54 — 234 288 73,659 73,947 — Consumer loans: Direct consumer 652 589 730 1,971 19,718 21,689 — Branch retail 377 182 206 765 24,927 25,692 Indirect 43 14 — 57 205,883 205,940 — Total $ 1,878 $ 808 $ 1,190 $ 3,876 $ 707,068 $ 710,944 $ — As a percentage of total loans 0.27 % 0.11 % 0.17 % 0.55 % 99.45 % 100.00 % The following table provides an analysis of non-accruing loans by class as of December 31, 2022 and 2021: Loans on Non-Accrual Status December 31, December 31, (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — $ 2 Secured by 1-4 family residential properties 914 780 Secured by multi-family residential properties — — Secured by non-farm, non-residential properties — — Commercial and industrial loans 605 277 Consumer loans: Direct consumer 29 743 Branch retail 32 206 Indirect 71 — Total loans $ 1,651 $ 2,008 Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the related loan agreement. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the liquidation of the collateral at the Bank. All loans of $ 0.5 million or more that have a credit quality risk grade of seven or above are identified for impairment analysis. At management’s discretion, additional loans may be impaired based on homogeneous factors such as changes in the nature and volume of the portfolio, portfolio quality, adequacy of the underlying collateral value, loan concentrations, historical charge-off trends and economic conditions that may affect the borrower’s ability to pay. At ALC, all loans of $ 50 thousand or more that are 90 days or more past due are identified for impairment analysis. As of both December 31, 2022 and 2021, there were $ 0.1 million of impaired loans with no related allowance recorded at ALC. Impaired loans, or portions thereof, are charged off when deemed uncollectable. As of December 31, 2022, the carrying amount of the Company’s impaired loans consisted of the following: December 31, 2022 Carrying Unpaid Related (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 568 568 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,492 2,492 — Commercial and industrial 2,076 2,076 — Direct consumer 18 18 — Total impaired loans with no related allowance recorded $ 5,154 $ 5,154 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 14 14 7 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 353 353 252 Direct consumer — — — Total impaired loans with an allowance recorded $ 367 $ 367 $ 259 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 582 582 7 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,492 2,492 — Commercial and industrial 2,429 2,429 252 Direct consumer 18 18 — Total impaired loans $ 5,521 $ 5,521 $ 259 As of December 31, 2021, the carrying amount of the Company’s impaired loans consisted of the following: December 31, 2021 Carrying Unpaid Related (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 630 630 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,051 1,051 — Commercial and industrial 823 823 — Direct consumer 21 21 — Total impaired loans with no related allowance recorded $ 2,525 $ 2,525 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 16 16 10 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 57 57 57 Direct consumer — — — Total impaired loans with an allowance recorded $ 73 $ 73 $ 67 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 646 646 10 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,051 1,051 — Commercial and industrial 880 880 57 Direct consumer 21 21 — Total impaired loans $ 2,598 $ 2,598 $ 67 The average net investment in impaired loans and interest income recognized and received on impaired loans during the years ended December 31, 2022 and 2021 was as follows: Year Ended December 31, 2022 Average Interest Interest (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ 87 $ — $ — Secured by 1-4 family residential properties 614 14 6 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,529 49 48 Commercial and industrial 1,279 8 5 Direct consumer 19 1 1 Total $ 3,528 $ 72 $ 60 Year Ended December 31, 2021 Average Interest Interest (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 773 31 31 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,377 140 108 Commercial and industrial 637 61 40 Direct consumer 22 9 2 Total $ 3,809 $ 241 $ 181 Loans on which the accrual of interest has been discontinued totaled $ 1.7 million and $ 2.0 million as of December 31, 2022 and 2021, respectively. If interest on those loans had been accrued, there would have been $ 60 thousand and $ 52 thousand of interest accrued for the years ended December 31, 2022 and 2021, respectively. Interest income related to these loans for the years ended December 31, 2022 and 2021 was $ 29 thousand and $ 30 thousand, respectively. Troubled Debt Restructurings Troubled debt restructurings include loans with respect to which concessions have been granted to borrowers that generally would not have otherwise been considered had the borrowers not been experiencing financial difficulty. The concessions granted may include payment schedule modifications, interest rate reductions, maturity date extensions, modifications of note structure, principal balance reductions or some combination of these concessions. There were no loans modified with concessions granted during the years ended December 31, 2022 or 2021. Restructured loans may involve loans remaining on non-accrual, moving to non-accrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Non-accrual restructured loans are included with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings. Generally, restructured loans remain on non-accrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on non-accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, then the loan remains on non-accrual. As of both December 31, 2022 and 2021, the Company did not have any non-accruing loans that were previously restructured and that remained on non-accrual status. For both of the years ended December 31, 2022 and 2021 , the Company had no loans that were restored to accrual status based on a sustained period of repayment performance. The following table provides, as of December 31, 2022 and 2021, the number of loans remaining in each loan category that the Company had previously modified in a troubled debt restructuring, as well as the pre- and post-modification principal balance as of each date. December 31, 2022 December 31, 2021 Number Pre- Post- Number Pre- Post- (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties 1 23 12 1 23 12 Secured by non-farm, non-residential properties 2 621 612 2 621 617 Commercial loans 1 71 22 1 71 31 Total 4 $ 715 $ 646 4 $ 715 $ 660 As of December 31, 2022 and 2021 , no loans that previously had been modified in a troubled debt restructuring had defaulted subsequent to modification. Restructured loan modifications primarily included maturity date extensions and payment schedule modifications. There were no modifications to principal balances of the loans that were restructured. Accordingly, there was no impact on the Company’s allowance for loan losses resulting from the modifications. All loans with a principal balance of $ 0.5 million or more that have been modified in a troubled debt restructuring are considered impaired and evaluated individually for impairment. The nature and extent of impairment of restructured loans, including those that have experienced a subsequent payment default, are considered in the determination of an appropriate level of allowance for loan losses. This evaluation resulted in an allowance for loan losses attributable to such restructured loans of $ 6 thousand and $ 7 thousand as of December 31, 2022 and 2021 , respectively. |
Other Real Estate Owned and Rep
Other Real Estate Owned and Repossessed Assets | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned and Repossessed Assets | 6. OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS Other Real Estate Owned Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity during the years ended December 31, 2022 and 2021: December 31, December 31, (Dollars in Thousands) Beginning balance $ 2,149 $ 949 Additions (1) 411 1,981 Sales proceeds ( 2,232 ) ( 1,205 ) Gross gains 386 491 Gross losses ( 27 ) — Net gains 359 491 Impairment ( 1 ) ( 67 ) Ending balance $ 686 $ 2,149 (1) Additions to other real estate owned (“OREO”) include transfers from loans, transfers from closed Bank and ALC branches, and capitalized improvements to existing OREO properties. Valuation adjustments are recorded in other non-interest expense and are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase. Net realizable value less estimated costs to sell of foreclosed residential real estate held by the Company was $ 20 thousand and $ 151 thousand as of December 31, 2022 and 2021 , respectively. In addition, the Company did no t hold any consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of both December 31, 2022 and 2021. Repossessed Assets In addition to the other real estate and other assets acquired in foreclosure, the Company also acquires assets through the repossession of the underlying collateral of loans in default. The following table summarizes repossessed asset activity during the years ended December 31, 2022 and 2021: December 31, December 31, (Dollars in Thousands) Beginning balance $ 154 $ 245 Transfers from loans 887 803 Sales proceeds ( 506 ) ( 798 ) Gross gains — — Gross losses ( 452 ) ( 96 ) Net losses ( 452 ) ( 96 ) Impairment — — Ending balance $ 83 $ 154 Repossessed assets are included in Other Assets in the Company’s consolidated balance sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 7. GOODWILL AND OTHER INTANGIBLE ASSETS The Company recorded $ 7.4 million of goodwill as a result of its acquisition of The Peoples Bank (“TPB”) in 2018. Goodwill impairment was neither indicated nor recorded during the years ended December 31, 2022 or 2021. Goodwill is tested for impairment annually, or more often if circumstances warrant. If, as a result of impairment testing, it is determined that the implied fair value of goodwill is lower than its carrying amount, impairment is indicated, and goodwill must be written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. Goodwill totaled $ 7.4 million as of both December 31, 2022 and 2021. Core deposit premiums are amortized over a seven-year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Core deposit premiums of $ 2.0 million were recorded during 2018 as part of the TPB acquisition. The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) as of December 31, 2022 were as follows: December December (Dollars in (Dollars in Goodwill $ 7,435 $ 7,435 Core deposit intangible: Gross carrying amount 2,048 2,048 Accumulated amortization ( 1,682 ) ( 1,414 ) Core deposit intangible, net 366 634 Total $ 7,801 $ 8,069 The Company’s estimated remaining amortization expense on intangible assets as of December 31, 2022 was as follows: Amortization (Dollars in 2023 195 2024 122 2025 49 Total $ 366 The net carrying amount of the Company’s core deposit assets is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use and eventual disposition. That assessment is based on the carrying amount of the intangible assets subject to amortization at the date on which it is tested for recoverability. Intangible assets subject to amortization are tested by the Company for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | 8. PREMISES AND EQUIPMENT Premises and equipment and applicable depreciable lives are summarized as follows: December 31, 2022 2021 (Dollars in Thousands) Land $ 5,390 $ 5,486 Premises ( 40 years) 24,880 25,924 Furniture, fixtures and equipment ( 3 - 7 years) 15,792 15,629 Total cost of premises and equipment 46,062 47,039 Less accumulated depreciation ( 21,623 ) ( 21,916 ) Total premises and equipment, net $ 24,439 $ 25,123 Depreciation expense of $ 1.6 million and $ 1.7 million was recorded in 2022 and 2021 , respectively. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Deposits | 9. DEPOSITS As of December 31, 2022, the scheduled maturities of the Company’s time deposits were as follows: (Dollars in 2023 $ 115,494 2024 56,104 2025 63,576 2026 13,274 2027 4,264 Total $ 252,712 Time deposits greater than $250 thousand totaled $ 29.5 million and $ 31.0 million as of December 31, 2022 and 2021, respectively. Included in deposits, the Company held brokered certificates of deposit totaling $ 62.5 million as of December 31, 2022 and $ 32.0 million as of December 31, 2021. Deposits from related parties held by the Company totaled $ 4.1 million and $ 4.2 million as of December 31, 2022 and 2021 , respectively. |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowings | 10. BORROWINGS Short-Term Borrowings Short-term borrowings may consist of federal funds purchased, securities sold under repurchase agreements, and short-term FHLB advances with original maturities of one year or less. • Federal funds purchased, which represent unsecured lines of credit that generally mature within one to four days , are available to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both December 31, 2022 and 2021 , there were no federal funds purchased outstanding. • Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of December 31, 2022 and 2021 totaled $ 38 thousand and $ 46 thousand, respectively. • Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source. As of December 31, 2022 and 2021, the Bank had $ 20.0 million and $ 10.0 million in outstanding FHLB advances with original maturities of less than one year, respectively. Long-Term Borrowings FHLB Advances The Company may use FHLB advances with original maturities of more than one year as an alternative to funding sources with similar maturities, such as certificates of deposit or other deposit programs. These advances generally offer more attractive rates than other mid-term financing options. They are also flexible, allowing the Company to quickly obtain the necessary maturities and rates that best suit its overall asset/liability strategy. FHLB advances with an original maturity of more than one year are classified as long-term. As of both December 31, 2022 and 2021 , the Company did no t have any long-term FHLB advances outstanding. Subordinated Debt On October 1, 2021, the Company completed a private placement of $ 11.0 million in aggregate principal amount of fixed-to-floating rate subordinated notes that will mature on October 1, 2031 (the “Notes”). The Notes bear interest at a rate of 3.50 % per annum for the first five years; then the interest rate will be reset quarterly to a benchmark interest rate per annum which, subject to certain conditions provided in the Notes, will be equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) plus 275 basis points . The Company has used and expects to continue to use the net proceeds for general corporate purposes, which may include the repurchase of the Company’s common stock, and to support organic growth plans, including the maintenance of capital ratios. Following receipt of the net proceeds of the Notes, the Company invested $ 5.0 million into capital surplus of the Bank. As of both December 31, 2022 and 2021, the Notes were recorded as long-term borrowings totaling $ 10.7 million, net of unamortized debt issuance costs. 2022 2021 (Dollars in Thousands) Balance at year-end $ 10,726 $ 10,653 Average balance during the year $ 10,689 $ 2,682 Maximum month-end balance during the year $ 10,726 $ 10,653 Average rate paid during the year, including amortization of debt issuance costs 4.20 % 4.20 % Weighted average remaining maturity (in years) 8.75 9.75 Available Credit As an additional funding source, the Company has available unused lines of credit with correspondent banks, the Federal Reserve and the FHLB. Certain of these funding sources are subject to underlying collateral availability. As of December 31, 2022 and 2021 , the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements December 31, 2022 December 31, 2021 Correspondent banks None $ 45.0 million $ 45.0 million Federal Reserve (discount window) Subject to collateral $ 15.0 million $ 15.0 million FHLB advances (1) Subject to collateral $ 246.8 million $ 237.0 million (1) These amounts represent the total remaining credit the Company has from the FHLB, but this credit can only be utilized to the extent that underlying collateral exists. Assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 68.2 million and $ 66.6 million as of December 31, 2022 and 2021, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 50.0 million and $ 40.0 million as of December 31, 2022 and 2021, respectively, leaving an excess of collateral of $ 18.2 million and $ 26.6 million available to utilize for additional credit as of the respective dates. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 11. INCOME TAXES The consolidated provisions for income taxes for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 (Dollars in Thousands) Federal Current $ 2,025 $ 1,522 Deferred ( 291 ) ( 527 ) Total federal 1,734 995 State Current 490 154 Deferred ( 76 ) 126 Total state 414 280 Total $ 2,148 $ 1,275 The consolidated tax expense differed from the amount computed by applying the Company’s federal statutory income tax rate of 21.0 % in 2022 and 2021 as described in the following table: 2022 2021 (Dollars in Thousands) Income tax expense at federal statutory rate $ 1,892 $ 1,202 Increase (decrease) resulting from: Tax-exempt interest ( 76 ) ( 88 ) Bank-owned life insurance ( 62 ) ( 62 ) State income tax expense, net of federal income taxes 329 169 Other 65 54 Total $ 2,148 $ 1,275 The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are presented below: 2022 2021 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 2,333 $ 2,065 Deferred compensation 895 947 Deferred commissions and fees 407 243 Unrealized loss on securities available-for-sale 2,715 — Unrealized loss on cash flow hedges — 144 Other 905 862 Total gross deferred tax assets 7,255 4,261 Deferred tax liabilities: Premises and equipment 1,288 1,248 Core deposit intangible 91 158 Limited partnerships 94 87 Unrealized gain on securities available-for-sale — 52 Unrealized gain on cash flow hedges 301 — Other 341 266 Total gross deferred tax liabilities 2,115 1,811 Net deferred tax asset, included in other assets $ 5,140 $ 2,450 The Company did no t have any federal or state net operating loss carryforwards as of December 31, 2022 or December 31, 2021 . The Company files income tax returns with the federal government and several states. The majority of its income is attributable to the states of Alabama and Tennessee. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and the states in which it filed for the years ended December 31, 2014 through 2022 . As of December 31, 2022 , the Company had no unrecognized tax benefits related to federal or state income tax matters and does no t anticipate any material increase or decrease in unrecognized tax benefits relative to any tax positions taken prior to December 31, 2022. As of December 31, 2022 , the Company had accrued no interest and no penalties related to uncertain tax positions. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Employee Benefit Plans | 12. EMPLOYEE BENEFIT PLANS The Company sponsors a 401(k) Plan (the “401(k) Plan”). The 401(k) Plan allows participants to defer a portion of their compensation on a pre-tax basis, subject to the statutory annual contribution limit. For 2022 and 2021 , the Company made “safe harbor” contributions on behalf of participants in the form of a match that was equal to 100 % of each participant’s elective deferrals, up to a maximum of 4 % of the participant’s eligible compensation. The 401(k) Plan also allows the Company to make discretionary matching contributions on behalf of participants equal to 2 % of each participant’s elective deferrals. No discretionary match was made in 2022 or 2021. The Company’s matching contributions to the 401(k) Plan totaled $ 0.4 million in 2022 and 0.5 million 2021. Participants can elect to invest up to 20 % of incoming contributions (measured at the time of investment) in the 401(k) Plan in the form of Company stock. The 401(k) Plan held 184,987 and 238,514 shares of Company stock as of December 31, 2022 and 2021 , respectively. These shares are allocated to participants in the 401(k) Plan and, accordingly, are included in the earnings per share calculations. |
Deferred Compensation Plans
Deferred Compensation Plans | 12 Months Ended |
Dec. 31, 2022 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation Plans | 13. DEFERRED COMPENSATION PLANS The Company has entered into separate supplemental retirement compensation benefits agreements with certain non-employee directors and former executive officers. These agreements are structured as nonqualified retirement plans for federal income tax purposes. The Company’s obligation under these agreements is accrued as deferred compensation in accordance with the terms of the individual contracts over the required service period to the date the employee is eligible to receive benefits. The Company’s deferred compensation obligation under these agreements totaled $ 3.1 million and $ 3.2 million as of December 31, 2022 and 2021, respectively. Non-employee directors may elect to defer payment of all or any portion of their Bancshares and Bank director fees under Bancshares’ Non-Employee Directors’ Deferred Compensation Plan (the “Deferral Plan”). The Deferral Plan permits non-employee directors to invest their directors’ fees and to receive the adjusted value of the deferred amounts in cash and/or shares of Bancshares’ common stock. Neither Bancshares nor the Bank makes any contribution to participants’ accounts under the Deferral Plan. As of December 31, 2022 and 2021, a total of 114,190 and 117,825 shares of Bancshares common stock, respectively, were deferred in connection with the Deferral Plan. All deferred fees, whether in the form of cash or shares of Bancshares common stock, are reflected as compensation expense in the period earned. The Company classifies all deferred directors’ fees allocated to be paid in shares as additional paid-in capital. The Company may use issued shares or shares of treasury stock to satisfy these obligations when due. |
Stock Awards
Stock Awards | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Awards | 14. STOCK AWARDS In accordance with the 2013 Incentive Plan, stock awards, including stock options and restricted stock, have been granted to certain employees and non-employee directors. Shares of common stock available for distribution to satisfy the grants may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner. Stock-based compensation expense related to stock awards totaled $ 0.4 million and $ 0.3 million for the years ended December 31, 2022 and 2021, respectively. Stock Options Stock option awards have been granted with an exercise price equal to the market price of the Company’s common stock on the date of the grant and have vesting periods ranging from one to three years , with 10 -year contractual terms. The Company recognizes the cost of services received in exchange for stock option awards based on the grant date fair value of the award, with compensation expense recognized on a straight-line basis over the award’s vesting period. The fair value of outstanding awards was determined using the Black-Scholes option pricing model at the date of grant. The Company did no t grant any stock option awards during the years ended December 31, 2022 and 2021. The following table summarizes the Company’s stock option activity for the periods presented. Year Ended December 31, 2022 December 31, 2021 Number of Average Number of Average Options: Outstanding, beginning of year 420,250 $ 9.79 421,000 $ 9.79 Granted — — — — Exercised — — 750 8.23 Forfeited 600 10.86 — — Options outstanding, end of year 419,650 $ 9.79 420,250 $ 9.79 Options exercisable, end of year 416,249 $ 9.77 395,678 $ 9.74 The aggregate intrinsic value of stock options outstanding (calculated as the amount by which the market value of underlying stock exceeds the exercise price of the option) was approximately $ 0.1 million as of December 31, 2022 and $ 0.6 million as of December 31, 2021. Restricted Stock During the years ended December 31, 2022 and 2021, 45,935 shares and 38,430 shares, respectively, of restricted stock were granted. Awards granted to employees had a three-year vesting period, while awards granted to non-employee directors had a one-year vesting period. The Company recognizes the cost of services received in exchange for restricted stock awards based on the grant date closing price of the stock, with compensation expense recognized on a straight-line basis over the award’s vesting period. |
Shareholder's Equity
Shareholder's Equity | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Shareholder's Equity | 15. SHAREHOLDERS’ EQUITY Dividends are paid at the discretion of the Company’s Board of Directors, based on the Company’s operating performance and financial position, including earnings, capital and liquidity. Dividends from the Bank are the Company’s primary source of funds for the payment of dividends to shareholders. In addition, federal and state regulatory agencies have the authority to prevent the Company from paying a dividend to shareholders. During the year ended December 31, 2022, the Company declared dividends totaling $ 0.8 million, or $ 0.14 per share, compared to $ 0.7 million, or $ 0.12 per share, during the year ended December 31, 2021. Regulatory Capital The Bank is subject to the revised capital requirements as described in the section captioned “Supervision and Regulation – Capital Adequacy” included in Part I, Item I of this report. Under these requirements, the Bank is subject to minimum risk-based capital and leverage capital requirements, which are administered by the federal bank regulatory agencies. These capital requirements, as defined by federal regulations, involve quantitative and qualitative measures of assets, liabilities and certain off-balance sheet instruments. Failure to meet minimum capital requirements can result in certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Bank and Bancshares, and could impact Bancshares’ ability to pay dividends. The Bank’s minimum risk-based capital requirements include the fully implemented capital conservation buffer of 2.50 %. As of both December 31, 2022 and 2021, the Bank exceeded all applicable minimum capital standards. In addition, the Bank met applicable regulatory guidelines to be considered well-capitalized as of both December 31, 2022 and 2021. To be categorized in this manner, the Bank maintained common equity Tier 1 risk-based capital, Tier 1 risk-based capital, total risk-based capital and Tier 1 leverage ratios as set forth in the tables below. In addition, the Bank was not subject to any written agreement, order, capital directive or prompt corrective action directive issued by its primary federal regulator to meet and maintain a specific level for any capital measures. The following tables provide the Bank’s actual regulatory capital amounts and ratios under regulatory capital standards in effect (Basel III) at December 31, 2022 and 2021: 2022 Actual Regulatory Capital Minimum To Be Well Amount Ratio Requirement Capitalized (Dollars in Thousands) Common equity Tier 1 capital (to risk-weighted assets) $ 92,853 11.07 % 7.00 % 6.50 % Tier 1 capital (to risk-weighted assets) 92,853 11.07 % 8.50 % 8.00 % Total capital (to risk-weighted assets) 102,275 12.19 % 10.50 % 10.00 % Tier 1 leverage (to average assets) 92,853 9.39 % 4.00 % 5.00 % 2021 Actual Regulatory Capital Minimum To Be Well Amount Ratio Requirement Capitalized (Dollars in Thousands) Common equity Tier 1 capital (to risk-weighted assets) $ 87,379 11.36 % 7.00 % 6.50 % Tier 1 capital (to risk-weighted assets) 87,379 11.36 % 8.50 % 8.00 % Total capital (to risk-weighted assets) 95,699 12.44 % 10.50 % 10.00 % Tier 1 leverage (to average assets) 87,379 9.17 % 4.00 % 5.00 % No significant conditions or events have occurred since December 31, 2022 that management believes have affected the Bank’s classification as “well-capitalized.” Because of the size of the Company’s balance sheet, there is currently no requirement for separate reporting of capital amounts and ratios for Bancshares. Accordingly, such amounts and ratios are not included. Under the FDIC’s final rule establishing the methodology for calculating deposit insurance assessments for banks with less than $10 billion in assets, the rate is determined based on a number of factors, including the bank’s CAMELS ratings, leverage ratio, net income, non-performing loan ratios, OREO ratios, core deposit ratios, one-year organic asset growth and a loan mix index. The CAMELS rating system is a supervisory rating system developed to classify a bank’s overall condition by taking into account capital adequacy, assets, management capability, earnings, liquidity and sensitivity to market and interest rate risk. The loan mix index component of the assessment model requires banks to calculate each of their loan categories as a percentage of assets and then multiply each category by a standardized historical charge-off rate percentage provided by the FDIC, with a higher index leading to a higher assessment rate. The rule implements maximum assessment rates for institutions with a composite CAMELS rating of 1 or 2 and minimum rates for institutions with a rating of 3, 4 or 5. Dividend Restrictions Under Delaware law, dividends may be paid only out of “surplus,” defined as an amount equal to the present fair value of the total assets of the corporation, minus the present fair value of the total liabilities of the corporation, minus the capital of the corporation. In the event that there is no surplus, dividends may be paid out of the net profits of the corporation for the fiscal year in which the dividend is declared and/or the immediately preceding fiscal year. Dividends may not be paid, however, out of net profits of the corporation if the capital represented by the issued and outstanding stock of all classes having a preference on the distribution of assets is impaired. Further, the Federal Reserve permits bank holding companies to pay dividends only out of current earnings and only if future retained earnings would be consistent with the company’s capital, asset quality and financial condition. Since it has no significant independent sources of income, Bancshares’ ability to pay dividends depends on its ability to receive dividends from the Bank. Under Alabama law, a state-chartered bank must annually transfer to surplus at least 10% of its “net earnings” (defined as the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, less all current operating expenses, actual losses, accrued dividends on preferred stock and all federal, state and local taxes) until the bank’s surplus is at least 20% of its capital. Until the bank’s surplus reaches this level, a bank may not declare a dividend in excess of 90% of its net earnings. Once a bank’s surplus equals or exceeds 20% of its capital, if the total of all dividends declared by the bank in a calendar year will exceed the sum of its net earnings for that year and its retained net earnings for the preceding two years (less any required transfers to surplus), then the bank must obtain prior written approval from the Superintendent of the Alabama State Banking Department. The bank may not pay any dividends or make any withdrawals or transfers from surplus without the prior written approval of the Superintendent. The FDIC prohibits the payment of cash dividends if (1) as a result of such payment, the bank would be undercapitalized or (2) the bank is in default with respect to any assessment due to the FDIC, including a deposit insurance assessment. These restrictions could materially influence the Bank’s, and therefore Bancshares’, ability to pay dividends. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | 16. LEASES The Bank and ALC are involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from two years to six y ears , some of which include options to extend the leases for up to five years , and some of which include an option to terminate the lease within one year . The Bank leases certain office facilities to third parties and classifies these leases as operating leases. The following table provides a summary of the components of lease income and expense, as well as the reporting location in the Consolidated Statements of Operations for the years ended December 31, 2022 and 2021: Year Ended Location December 31, December 31, (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 434 $ 999 Operating lease income (2) Lease income $ 864 $ 830 (1) Includes short-term lease costs. For the years ended December 31, 2022 and 2021 , short-term lease costs were nominal in amount. (2) Operating lease income includes rental income from owned properties. The following table provides supplemental lease information for operating leases on the Consolidated Balance Sheet as of December 31, 2022: Location December 31, December 31, (Dollars in (Dollars in Operating lease right-of-use assets Other assets $ 1,883 $ 2,245 Operating lease liabilities Other liabilities $ 1,961 $ 2,317 Weighted-average remaining lease term (in years) 5.03 5.90 Weighted-average discount rate 3.30 % 3.29 % The following table provides supplemental lease information for the Consolidated Statements of Cash Flows for the years ended December 31, 2022 and 2021: Year Ended December 31, December 31, (Dollars in Thousands) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 427 $ 859 The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of December 31, 2022: Minimum (Dollars in 2023 $ 432 2024 438 2025 339 2026 346 2027 353 2028 and thereafter 238 Total future minimum lease payments $ 2,146 Less: Imputed interest 185 Total $ 1,961 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 17. DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of certain balance sheet assets and liabilities. In the normal course of business, the Company also uses derivative financial instruments to add stability to interest income or expense and to manage its exposure to movements in interest rates. The Company does not use derivatives for trading or speculative purposes and only enters into transactions that have a qualifying hedge relationship. The Company’s hedging strategies involving interest rate derivatives are classified as either cash flow hedges or fair value hedges, depending upon the rate characteristic of the hedged item. Cash Flow Hedges The Bank has entered into forward interest rate swap contracts on certain variable-rate money market deposit accounts (indexed to the Federal Funds effective rate’s daily weighted average). The money market account balances are expected to exceed the notional amount for the duration of the hedges and the rates on these deposits are anticipated to move closely with changes in one-month LIBOR, or a comparable benchmark interest rate. These interest rate swaps were designated as derivative instruments in cash flow hedges with the objective of converting the floating interest payments to a fixed rate. Under the swap arrangements, the Bank pays a fixed interest rate and receives a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount, with monthly net settlements. Fair Value Hedges The Bank has entered into forward interest rate swap contracts on fixed rate commercial real estate loans. The interest rate swaps were designated as derivative instruments in fair value hedges with the objective of effectively converting pools of fixed rate assets to variable rate throughout the hedge durations. Under the swap arrangements, the Bank pays a fixed interest rate and receives a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount, with monthly net settlements. The Bank recognized no gains or losses on the fair value hedges during the years ended December 31, 2022 and 2021. Terminated Hedges Cash Flow Hedge Terminated in 2022 During the second quarter of 2022, the Bank terminated a forward interest rate swap contract on a variable FHLB advance that was previously designated as a cash flow hedge. The termination of the swap resulted in a net deferred gain of $ 0.3 million which will remain in accumulated other comprehensive income and be reclassified into earnings over the original term of the interest rate swap contract. During the year ended December 31, 2022, a gain of $ 70 thousand, net of income taxes, was reclassified from other comprehensive income (loss) related to the terminated contract. There were no gains or losses reclassified from other comprehensive income (loss) related to cash flow hedges for the year ended December 31, 2021. Hedges Terminated Subsequent to December 31, 2022 Subsequent to December 31, 2022, the Company terminated all four interest rate swap contracts that were in place as of December 31, 2022 and recorded deferred gains totaling $ 2.2 million associated with the terminations. The purpose of the terminations was to partially mitigate interest rate risk in downward interest rate scenarios. The deferred gains will be accreted to net interest income over the remaining life of the original term of each swap. Presentation The Company has elected to offset derivative fair value amounts under master netting agreements, given that all of the Company’s hedges are with the same counterparty. The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a net basis as of December 31, 2022 and 2021. As of December 31, 2022 As of December 31, 2021 Estimated Fair Value Estimated Fair Value Notional Amount Gain (Loss) (1) Notional Amount Gain (Loss) (1) (Dollars in Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to fixed rate commercial real estate loans $ 20,000 $ 1,101 $ 20,000 $ ( 198 ) Total fair value hedges 1,101 ( 198 ) Cash flow hedges: Interest rate swaps related to variable-rate money market deposit accounts 20,000 1,205 20,000 ( 472 ) Interest rate swaps related to FHLB advances — — 10,000 ( 104 ) Total cash flow hedges 1,205 ( 576 ) Total hedges designated as hedging instruments, net $ 2,306 $ ( 774 ) (1) Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets. The Company has elected the last-of-layer method with respect to both of its fair value hedges. This approach allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows. Relative to the identified pools of loans, this represents the last dollar amount of the designated commercial loans, which is equivalent to the notional amounts of the derivative instruments. The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Location in the Consolidated Carrying Amount of the Cumulative Amount of Fair Item is Included December 31, 2022 (Dollars in Thousands) Loans and leases, net of allowance for loan and (1) $ 32,233 $ 1,101 (1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $ 33.3 million, the cumulative basis adjustments associated with these hedging relationships were $ 1.1 million, and the amounts of the designated hedged items were $ 20 million. The following table presents the effect of hedging derivative instruments on the Company’s Consolidated Statements of Operations. Location in the Year Ended December 31, Consolidated Statements 2022 2021 of Operations (Dollars in Thousands) Interest income Interest and fees on loans $ 75 $ ( 253 ) Interest expense Interest on deposits 56 ( 127 ) Interest expense Interest on short-term borrowings ( 5 ) ( 333 ) Net increase (decrease) to income before income taxes $ 126 $ ( 713 ) |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting | 18. SEGMENT REPORTING In the tables below, information is disclosed for the two reportable operating segments of Bancshares: the Bank and ALC. The reportable segments were determined using the internal management reporting system. These segments comprise Bancshares’ and the Bank’s significant subsidiaries. The accounting policies for each segment are the same as those described in Note 2, “Summary of Significant Accounting Policies.” The segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions have been eliminated to determine the consolidated balances. The parent company and FUSB Reinsurance are included in the "All Other" column. The results for the two reportable segments of the Company are included in the tables below: 2022 Bank ALC All Other Eliminations Consolidated (Dollars in Thousands) Total interest income $ 37,510 $ 4,716 $ 5 $ ( 1,034 ) $ 41,197 Total interest expense 3,803 1,029 458 ( 1,034 ) 4,256 Net interest income 33,707 3,687 ( 453 ) — 36,941 Provision for loan and lease losses 1,338 1,970 — — 3,308 Net interest income after provision 32,369 1,717 ( 453 ) — 33,633 Total non-interest income 3,535 204 8,091 ( 8,379 ) 3,451 Total non-interest expense 25,278 1,751 1,238 ( 195 ) 28,072 Income (loss) before income taxes 10,626 170 6,400 ( 8,184 ) 9,012 Provision for income taxes 2,475 45 ( 372 ) — 2,148 Net income (loss) $ 8,151 $ 125 $ 6,772 $ ( 8,184 ) $ 6,864 Other significant items: Total assets $ 998,727 $ 19,772 $ 101,072 $ ( 124,904 ) $ 994,667 Total investment securities 132,657 — — — 132,657 Total loans, net 763,941 18,810 — ( 18,300 ) 764,451 Goodwill and core deposit intangible, net 7,801 — — — 7,801 Investment in subsidiaries — — 93,414 ( 93,414 ) — Fixed asset additions 1,262 — — — 1,262 Depreciation and amortization expense 1,579 35 — — 1,614 Total interest income from external customers 36,481 4,716 — — 41,197 Total interest income from affiliates 1,029 — 5 ( 1,034 ) — 2021 Bank ALC All Other Eliminations Consolidated (Dollars in Thousands) Total interest income $ 32,537 $ 9,019 $ 7 $ ( 1,642 ) $ 39,921 Total interest expense 2,842 1,635 115 ( 1,642 ) 2,950 Net interest income 29,695 7,384 ( 108 ) — 36,971 Provision for loan and lease losses 1,515 495 — — 2,010 Net interest income after provision 28,180 6,889 ( 108 ) — 34,961 Total non-interest income 3,206 576 5,697 ( 5,958 ) 3,521 Total non-interest expense 25,188 6,599 1,421 ( 452 ) 32,756 Income (loss) before income taxes 6,198 866 4,168 ( 5,506 ) 5,726 Provision for income taxes 1,305 221 ( 251 ) — 1,275 Net income (loss) $ 4,893 $ 645 $ 4,419 $ ( 5,506 ) $ 4,451 Other significant items: Total assets $ 961,572 $ 40,924 $ 106,247 $ ( 150,441 ) $ 958,302 Total investment securities 134,238 — 81 — 134,319 Total loans, net 699,600 39,499 — ( 39,069 ) 700,030 Goodwill and core deposit intangible, net 8,069 — — — 8,069 Investment in subsidiaries — — 95,172 ( 95,172 ) — Fixed asset additions 816 6 — — 822 Depreciation and amortization expense 1,613 79 — — 1,692 Total interest income from external customers 30,902 9,019 — — 39,921 Total interest income from affiliates 1,635 — 7 ( 1,642 ) — |
Other Operating Income and Expe
Other Operating Income and Expense | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Income and Expense | 19. OTHER OPERATING INCOME AND EXPENSE Other operating income for the years ended December 31, 2022 and 2021 consisted of the following: Year Ended December 31, 2022 2021 (Dollars in Thousands) Bank-owned life insurance $ 451 $ 439 Credit insurance commissions and fees $ ( 93 ) $ 192 ATM fee income 532 577 Mortgage fees from secondary market 17 23 Wire transfer fees 52 64 Gain on sales of premises and equipment and other assets 301 19 Other income 256 286 Total $ 1,516 $ 1,600 Other operating expense for the years ended December 31, 2022 and 2021 consisted of the following: Year Ended December 31, 2022 2021 (Dollars in Thousands) Postage, stationery and supplies $ 614 $ 802 Telephone/data communication 682 903 Advertising and marketing 189 167 Travel and business development 225 147 Collection and recoveries 261 168 Other services 323 322 Insurance expense 566 635 FDIC insurance and state assessments 684 726 Loss on sales of premises and equipment and other assets 69 150 Core deposit intangible amortization 268 341 Other real estate/foreclosure expense, net ( 331 ) ( 371 ) Other expense 2,124 2,114 Total $ 5,674 $ 6,104 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 20. GUARANTEES, COMMITMENTS AND CONTINGENCIES The Bank’s exposure to credit loss in the event of nonperformance by the other party for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making these commitments as it does for on-balance sheet instruments. For interest rate swap transactions and commitments to purchase or sell securities for forward delivery, the contract or notional amounts do no t represent exposure to credit loss. The Bank controls the credit risk of these derivative instruments through credit approvals, limits and monitoring procedures. Certain derivative contracts have credit risk for the carrying value plus the amount to replace such contracts in the event of counterparty default. All of the Bank’s financial instruments are held for risk management and not for trading purposes. During the years ended December 31, 2022 and 2021 , there were no credit losses associated with derivative contracts. In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit, letters of credit and other commitments, that are not included in the consolidated financial statements. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the financial statements. A summary of these commitments and contingent liabilities is presented below: December 31, 2022 2021 (Dollars in Thousands) Standby letters of credit $ — $ — Standby performance letters of credit $ 556 $ 582 Commitments to extend credit $ 186,169 $ 164,247 Standby letters of credit and standby performance letters of credit are contingent commitments issued by the Bank generally to guarantee the performance of a customer to a third party. The Bank has recourse against the customer for any amount that it is required to pay to a third party under a standby letter of credit or standby performance letter of credit. Revenues are recognized over the lives of the standby letters of credit and standby performance letters of credit. As of December 31, 2022 and 2021, the potential amounts of future payments that the Bank could be required to make under its standby letters of credit and standby performance letters of credit, which represent the Bank’s total credit risk in these categories, are included in the table above. A commitment to extend credit is an agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon the extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. The Company is self-insured for a significant portion of employee health benefits. However, the Company maintains stop-loss coverage with third-party insurers to limit the Company’s individual claim and total exposure related to self-insurance. The Company estimates accrued liability for the ultimate costs to settle known claims, as well as claims incurred but not yet reported, as of the balance sheet date. The Company’s recorded estimated liability for self-insurance is based on the insurance companies’ incurred loss estimates and management’s judgment, including assumptions and evaluation of factors related to the frequency and severity of claims, the Company’s claims development history and the Company’s claims settlement practices. The assessment of loss contingencies and self-insurance reserves is a highly subjective process that requires judgments about future events. Contingencies are reviewed at least quarterly to determine the adequacy of self-insurance accruals. Self-insurance accruals totaled $ 0.2 million as of both December 31, 2022 and 2021. The ultimate settlement of loss contingencies and self-insurance reserves may differ significantly from amounts accrued in the Company’s consolidated financial statements. Litigation The Company is party to certain ordinary course litigation from time to time, and the Company intends to vigorously defend itself in all such litigation. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such ordinary course litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 21. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows a uniform framework for estimating and classifying the fair value of financial instruments. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. The following disclosures should not be considered a representation of the liquidation value of the Company, but rather represent a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. Fair Value Hierarchy Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. In determining fair value, the Company uses various methods, including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair value. Assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: ● Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange or Nasdaq. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. ● Level 2 — Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. ● Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The Company rarely transfers assets and liabilities measured at fair value between Level 1 and Level 2 measurements. Trading account assets and securities available-for-sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the best method of pricing for an individual security. Such transfers are accounted for as if they occurred at the beginning of a reporting period. There were no such transfers during the years ended December 31, 2022 or 2021. Fair Value Measurements on a Recurring Basis Securities Available-for-Sale Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include exchange-traded equities. Level 2 securities include U.S. Treasury and agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. Level 2 fair values are obtained from quoted prices of securities with similar characteristics. In certain cases, where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Interest Rate Derivative Agreements Interest rate derivative agreements are used by the Company to mitigate risk associated with changes in interest rates. The fair value of these agreements is based on information obtained from third-party financial institutions. This information is periodically evaluated by the Company and, as necessary, corroborated against other third-party valuations. The Company classifies these derivative assets within Level 2 of the valuation hierarchy. The following table presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021. Fair Value Measurements as of December 31, 2022 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 43,957 $ — $ 43,957 $ — Commercial 11,693 — 11,693 — Obligations of U.S. government-sponsored agencies 4,270 — 4,270 — Obligations of states and political subdivisions 2,072 — 2,072 — Corporate notes 15,921 14,921 1,000 U.S. Treasury securities 52,882 52,882 — — Other assets - derivatives 2,306 — 2,306 — Fair Value Measurements as of December 31, 2021 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 46,228 $ — $ 46,228 $ — Commercial 24,971 — 24,971 — Obligations of U.S. government-sponsored agencies 5,192 — 5,182 10 Obligations of states and political subdivisions 4,317 — 4,317 — Corporate notes 15,482 15,482 — U.S. Treasury securities 34,693 34,693 — — Other liabilities - derivatives 774 — 774 — Fair Value Measurements on a Non-recurring Basis Impaired Loans Loans that are considered impaired are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due under the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price or the fair value of the collateral less estimated selling cost if the loan is collateral-dependent. For the Company, the fair value of impaired loans is primarily measured based on the value of the collateral securing the loans (typically real estate). The Company determines the fair value of the collateral based on independent appraisals performed by qualified licensed appraisers. The appraisals may include a single valuation approach or a combination of approaches, including comparable sales and income approaches. Appraised values are discounted for estimated costs to sell and may be discounted further based on management’s knowledge of the collateral, changes in market conditions since the most recent appraisal and/or management’s knowledge of the borrower and the borrower’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are evaluated by management for additional impairment at least quarterly and are adjusted accordingly. OREO and Other Assets Held-for-Sale OREO consists of properties obtained through foreclosure or in satisfaction of loans and is recorded at net realizable value, less estimated cost to sell. Estimates of fair value are generally based on third-party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes discounted based on management’s knowledge of the property and/or changes in market conditions from the date of the most recent appraisal. Such discounts are typically significant unobservable inputs for determining fair value. As of both December 31, 2022 and 2021, included within OREO were certain assets that were formerly included as premises and equipment but have been removed from service, and as of the balance sheet date, were designated as assets to be disposed of by sale. These include assets associated with branches of the Bank and ALC that have been closed. When an asset is designated as held-for-sale, the Company ceases depreciation of the asset, and the asset is recorded at the lower of its carrying amount or fair value less estimated cost to sell. Estimates of fair value are generally based on third-party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes discounted based on management’s knowledge of the property and/or changes in market conditions from the date of the most recent appraisal. Such discounts are typically unobservable inputs for determining fair value. The following table presents the balances of impaired loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of December 31, 2022 and 2021: Fair Value Measurements as of December 31, 2022 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Impaired loans $ 108 $ — $ — $ 108 OREO and other assets held-for-sale 686 — — 686 Fair Value Measurements as of December 31, 2021 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Impaired loans $ 6 $ — $ — $ 6 OREO and other assets held-for-sale 2,149 — — 2,149 Non-recurring Fair Value Measurements Using Significant Unobservable Inputs The following table presents information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of December 31, 2022. The table includes the valuation techniques and the significant unobservable inputs utilized. The range of each unobservable input and the weighted average within the range utilized as of December 31, 2022 are both included. Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input. Level 3 Significant Unobservable Input Assumptions Fair Value Valuation Technique Unobservable Input Quantitative Range (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 108 Multiple data points, including discount to appraised value of collateral based on recent market activity Appraisal comparability adjustment (discount) 9 %- 10 % ( 9.5 )% OREO and other assets held-for-sale $ 686 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9 %- 10 % ( 9.5 )% Impaired loans Impaired loans are valued based on multiple data points indicating the fair value for each loan. The primary data point is the appraisal value of the underlying collateral, to which a discount is applied. Management establishes this discount or comparability adjustment based on recent sales of similar property types. As liquidity in the market increases or decreases, the comparability adjustment and the resulting asset valuation are impacted. OREO OREO under a binding contract for sale is valued based on contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Other Assets Held-for-Sale Assets designated as held-for-sale that are under a binding contract are valued based on the contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash, due from banks and federal funds sold: The carrying amount of cash, due from banks and federal funds sold approximates fair value. Federal Home Loan Bank stock: Based on the redemption provision of the FHLB, the stock has no quoted market value and is carried at cost. Investment securities: Fair values of investment securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on market prices of comparable instruments. Derivative instruments: The fair value of derivative instruments is based on information obtained from a third-party financial institution. This information is periodically evaluated by the Company and, as necessary, corroborated against other third-party information. Accrued interest receivable and payable: The carrying amount of accrued interest approximates fair value. Loans, net: The fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayment discount spreads, credit loss and liquidity premiums. Demand and savings deposits: The fair values of demand deposits are equal to the carrying value of such deposits. Demand deposits include non-interest-bearing demand deposits, savings accounts, NOW accounts and money market demand accounts. Time deposits: The fair values of relatively short-term time deposits are equal to their carrying values. Discounted cash flows are used to value long-term time deposits. The discount rate used is based on interest rates currently offered by the Company on comparable deposits as to amount and term. Short-term borrowings: These borrowings may consist of federal funds purchased, securities sold under agreements to repurchase and the floating rate borrowings from the FHLB account. Due to the short-term nature of these borrowings, fair values approximate carrying values. Long-term borrowings: The fair value of this debt is estimated using discounted cash flows based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements as of the determination date. Off-balance sheet instruments: The carrying amount of commitments to extend credit and standby letters of credit approximates fair value. The carrying amount of the off-balance sheet financial instruments is based on fees currently charged to enter into such agreements. The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of December 31, 2022 and 2021 were as follows: December 31, 2022 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 30,152 $ 30,152 $ 30,152 $ — $ — Investment securities available-for-sale 130,795 130,795 52,882 76,913 1,000 Investment securities held-to-maturity 1,862 1,769 — 1,769 — Federal funds sold 1,768 1,768 — 1,768 — Federal Home Loan Bank stock 1,359 1,359 — — 1,359 Loans, net of allowance for loan losses 764,451 730,961 — — 730,961 Liabilities: Deposits 870,025 788,161 — 788,161 — Short-term borrowings 20,038 20,038 — 20,038 — Long-term borrowings 10,726 9,702 9,702 Other assets - derivatives 2,306 2,306 — 2,306 — December 31, 2021 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 61,244 $ 61,244 $ 61,244 $ — $ — Investment securities available-for-sale 130,883 130,883 34,612 96,260 11 Investment securities held-to-maturity 3,436 3,477 — 3,477 — Federal funds sold 82 82 — 82 — Federal Home Loan Bank stock 870 870 — — 870 Loans, net of allowance for loan losses 700,030 694,744 — — 694,744 Liabilities: Deposits 838,126 837,439 — 837,439 — Short-term borrowings 10,046 10,046 — 10,046 — Long-term borrowings 10,653 10,804 10,804 Other liabilities - derivatives 774 774 — 774 — |
First US Bancshares, Inc. (Pare
First US Bancshares, Inc. (Parent Company Only) Financial Information | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure | 22. FIRST US BANCSHARES, INC. (PARENT COMPANY ONLY) FINANCIAL INFORMATION Balance Sheets Year Ended December 31, 2022 2021 (Dollars in Thousands) Assets: Cash on deposit $ 2,855 $ 5,890 Investment in subsidiaries 93,414 95,172 Other assets 78 83 Total assets $ 96,347 $ 101,145 Liabilities: Other liabilities $ 485 $ 428 Long-term borrowings 10,726 10,653 Shareholders’ equity 85,136 90,064 Total liabilities and shareholders’ equity $ 96,347 $ 101,145 Statements of Operations Year Ended December 31, 2022 2021 (Dollars in Thousands) Income: Dividend income, First US Bank $ 3,463 $ 1,570 Total income 3,463 1,570 Expense 1,320 1,055 Gain before equity in undistributed income of subsidiaries 2,143 515 Equity in undistributed income of subsidiaries 4,721 3,936 Net income $ 6,864 $ 4,451 Statements of Cash Flows Year Ended December 31, 2022 2021 (Dollars in Thousands) Cash flows from operating activities: Net income $ 6,864 $ 4,451 Adjustments to reconcile net income to net cash provided Distributions in excess of undistributed income ( 4,721 ) ( 3,936 ) Change in other assets and liabilities 135 580 Net cash provided by operating activities 2,278 1,095 Cash flows from investing activities: Investment in subsidiaries - ( 5,000 ) Net cash used in investing activities — ( 5,000 ) Cash flows from financing activities: Net proceeds from long-term borrowings - 10,653 Net share-based compensation transactions - ( 7 ) Dividends paid ( 832 ) ( 745 ) Treasury stock repurchases ( 4,481 ) ( 525 ) Net cash provided by (used in) in financing activities ( 5,313 ) 9,376 Net increase (decrease) in cash ( 3,035 ) 5,471 Cash at beginning of year 5,890 419 Cash at end of year $ 2,855 $ 5,890 |
Quarterly Data (Unaudited)
Quarterly Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | 23. QUARTERLY DATA (UNAUDITED) Year Ended December 31, 2022 2021 Fourth Third Second First Fourth Third Second First (Dollars in Thousands) Interest income $ 11,621 $ 10,670 $ 9,525 $ 9,381 $ 9,987 $ 10,030 $ 10,059 $ 9,845 Interest expense 1,730 1,155 699 672 727 695 747 781 Net interest income 9,891 9,515 8,826 8,709 9,260 9,335 9,312 9,064 Provision for loan and lease losses 527 1,165 895 721 493 618 498 401 Net interest income after provision 9,364 8,350 7,931 7,988 8,767 8,717 8,814 8,663 Non-interest: Income 678 1,088 856 829 865 896 809 951 Expense 7,106 7,032 6,878 7,056 7,414 8,547 8,399 8,396 Income before income taxes 2,936 2,406 1,909 1,761 2,218 1,066 1,224 1,218 Provision for income taxes 708 546 494 400 507 229 271 268 Net income after taxes $ 2,228 $ 1,860 $ 1,415 $ 1,361 $ 1,711 $ 837 $ 953 $ 950 Earnings per common share: Basic earnings $ 0.37 $ 0.31 $ 0.23 $ 0.22 $ 0.27 $ 0.13 $ 0.15 $ 0.15 Diluted earnings $ 0.35 $ 0.29 $ 0.22 $ 0.20 $ 0.25 $ 0.13 $ 0.14 $ 0.14 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of Bancshares, the Bank and its wholly-owned subsidiaries (collectively, the “Company”). All significant intercompany balances and transactions have been eliminated. The Company consolidates an entity if the Company has a controlling financial interest in the entity. |
Use of Estimates | Use of Estimates The accounting principles and reporting policies of the Company, and the methods of applying these principles, conform with accounting principles generally accepted in the United States of America (“U.S. GAAP”) and with general practices within the financial services industry. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets, and revenues and expenses for the period included in the consolidated statements of operations and of cash flows. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the accounting for the allowance for loan and lease losses, the right-of-use asset and lease liability, the value of other real estate owned (“OREO”) and certain collateral-dependent loans, consideration related to goodwill impairment testing and deferred tax asset valuation. In connection with the determination of the allowance for loan losses and OREO, management generally obtains independent appraisals for significant properties, evaluates the overall portfolio characteristics and delinquencies and monitors economic conditions. |
Cash and Cash Equivalents | Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, instruments with an original maturity of less than 90 days from issuance and amounts due from banks. Supplemental disclosures of cash flow information and non-cash transactions related to cash flows for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 (Dollars in Thousands) Cash paid during the year for: Interest $ 3,873 $ 3,018 Income taxes 2,855 1,375 Non-cash transactions: Assets acquired in settlement of loans 907 806 Transfers of closed branch assets to OREO 391 1,978 Reissuance of treasury stock as compensation 138 59 |
Revenue Recognition | Revenue Recognition The Company records revenue when control of the promised products or services is transferred to the customer in an amount that reflects the consideration that the Company expects to be entitled to receive in exchange for those products and services. Interest Income The majority of the Company’s revenue is generated through interest earned on financial instruments, including loans and investment securities. This revenue is recognized on an accrual basis and calculated through the use of non-discretionary formulas based on written contracts including loan agreements or securities contracts. Loan origination fees are accreted into interest income over the term of the loan. Service Charges on Deposit Accounts Service charges on deposit accounts include non-sufficient fund fees, overdraft fees and other service charges. When a depositor presents an item for payment in excess of available funds, non-sufficient funds fees are earned when an item is returned unpaid, and overdraft fees are earned when the Company provides the necessary funds to complete the transaction. The Company generates other service charges by providing depositors with proper safeguard and remittance of funds, as well as by providing optional services such as check imaging or treasury management. Charges for proper safeguard and remittance of funds are recognized monthly as the deposit customer maintains funds in the account, while revenue for optional services are recognized when the customer completes the transaction. Gains or Losses on the Sale of Investment Securities Gains or losses on the sale of investment securities are recognized as the sale transaction occurs with the cost of securities sold based on the specific identification method. Lease Income The Bank leases certain office facilities to third parties and classifies the leases as operating leases. Lease income is recognized on a monthly basis based on the contractual terms of the lease agreement. Bank-owned Life Insurance Bank-owned life insurance income represents income earned from the appreciation of the cash surrender value of insurance contracts held and the proceeds of insurance benefits. The Company recognizes revenue each period in the amount of the appreciation of the cash surrender value of the contracts. Revenue recognized from the proceeds of insurance benefits is recognized at the time the claim is confirmed. ATM Fee Income Fee income is generated by allowing the Bank’s debit cardholders to withdraw funds from the ATM’s of other financial institutions and by allowing non-customers to withdraw funds from the Bank’s ATMs. The Bank satisfies performance obligations for each transaction when the withdrawal is processed. The Bank does not direct the activities of the related processing network’s service and recognizes revenue on a net basis as the agent in each transaction. Other Miscellaneous Income Other miscellaneous income includes mortgage fees, credit insurance income, auto club revenue, wire transfer fees, safe deposit box fee income, check fees and other miscellaneous sources of income. The Company recognizes revenue associated with these sources of income in accordance with the satisfaction of the performance obligation based on the timing of the occurrence of a transaction or when service is provided. |
Reinsurance Activities | Reinsurance Activities Before FUSB Reinsurance ceased writing new insurance contracts in 2022, the Company assumed insurance risk related to credit life and credit accident and health insurance written by a non-affiliated insurance company for its customers that choose such coverage through a quota share reinsurance agreement. Assumed premiums on credit life insurance were deferred and earned over the period of insurance coverage using either a pro rata method or the effective yield method, depending on whether the amount of insurance coverage generally remains level or declines. Assumed premiums for accident and health policies were earned on an average of the pro rata and the effective yield methods. |
Investment Securities | Investment Securities The investment portfolio consists of debt securities, including U.S. Treasury securities, obligations of U.S. government agencies, municipal bonds, residential and commercial mortgage-backed securities and corporate notes. Securities may be held in one of three portfolios: trading account securities, securities held-to-maturity or securities available-for-sale. Trading account securities are carried at estimated fair value, with unrealized gains and losses included in operations. The Company held no trading account securities as of December 31, 2022 or 2021. Investment securities held-to-maturity are carried at cost, adjusted for amortization of premiums and accretion of discounts. With regard to investment securities held-to-maturity, management has the intent and the Bank has the ability to hold such securities until maturity. Investment securities available-for-sale are carried at fair value, with any unrealized gains or losses excluded from operations and reflected, net of tax, as a separate component of shareholders’ equity in accumulated other comprehensive income or loss. Investment securities available-for-sale are so classified because management may decide to sell certain securities prior to maturity for liquidity, tax planning or other valid business purposes. When the fair value of a security falls below carrying value, an evaluation must be made to determine whether the unrealized loss is a temporary or other-than-temporary impairment. Impaired securities that are not deemed to be temporarily impaired are written down by a charge to operations to the extent that the impairment is related to credit losses. The amount of impairment related to other factors is recognized in other comprehensive income or loss. The Company uses a systematic methodology to evaluate potential impairment of its investments that considers, among other things, the magnitude and duration of the decline in fair value, the financial health and business outlook of the issuer and the Company’s ability and intent to hold the investment until such time as the security recovers its fair value. Interest earned on investment securities available-for-sale is included in interest income. Amortization of premiums and discounts on investment securities is determined by the interest method and included in interest income. Gains and losses on the sale of investment securities available-for-sale, computed principally on the specific identification method, are shown separately in non-interest income. The Company also holds Federal Home Loan Bank (“FHLB”) stock, which, based on the redemption provision of the FHLB, has no quoted market value and is carried at cost. Dividends earned on FHLB stock are included in interest income. |
Derivatives and Hedging Activities | Derivatives and Hedging Activities The Company uses derivative instruments to minimize unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy involves modifying the repricing characteristics of certain assets and liabilities so that changes in interest rates do not adversely affect net interest margin and cash flow. Derivative instruments utilized by the Company generally include interest rate swaps, caps and floors, and are carried as assets and/or liabilities at fair value on the Company’s consolidated balance sheets. The Company does not use derivatives for trading or speculative purposes and generally enters into transactions that have a qualifying hedge relationship. Depending upon the characteristics of the hedged item, derivatives are classified as either cash flow hedges or fair value hedges. When cash flow or fair value hedging strategies are utilized, the Company specifically identifies the derivative instrument as a hedge and identifies the risk that is being hedged contemporaneously with the execution of the hedge transaction. Cash flow hedge relationships mitigate exposure to variability of future cash flows or other forecasted transactions. The change in fair value of cash flow hedges is recorded, net of tax, in accumulated other comprehensive income (loss) except for amounts excluded from hedge effectiveness. Amounts excluded from hedge effectiveness are recorded in earnings. Fair value hedge relationships mitigate exposure to the change in fair value of the hedged risk in an asset, liability, or firm commitment. Gains or losses attributable to the derivative instrument, as well as gains or losses attributable to changes in the fair value of the hedged item are recognized in interest income or interest expense in the same income statement line item with the hedged item in the period in which the change in fair value occurs. To the extent the changes in fair value of the derivative instrument do not offset the changes in the fair value of the hedged item, the difference is recognized in earnings. The corresponding adjustment to the hedged asset or liability is included in the basis of the hedged item, while the corresponding change in the fair value of the derivative instrument is recorded as an adjustment to other assets or other liabilities, as applicable. The Company has entered into certain fair value hedges using the last-of-layer method, which allows the Company to hedge the interest rate risk of prepayable financial assets by designating as the hedged item a stated amount of a closed portfolio that is not expected to be affected by prepayments, defaults, or other factors impacting the timing and amount of cash flows. If a hedge relationship is de-designated or if hedge accounting is discontinued because the hedged item no longer exists, or does not meet the definition of a firm commitment, or because it is probable that the forecasted transaction will no longer occur, the derivative instrument will continue to be recorded in other assets or liabilities in the consolidated balance sheets at its estimated fair value, with changes in fair value recognized in non-interest expense. Any asset or liability that was recognized pursuant to a firm commitment is removed from the consolidated balance sheets and recognized in non-interest expense. Gains or losses that were unrecognized and aggregated in accumulated other comprehensive gain (loss) pursuant to a cash flow hedging relationship are recognized immediately in non-interest expense. The Company may also enter into derivative contracts that are not designated as hedges in order to mitigate economic risks or risks associated with volatility in connection with customer derivative transactions. |
Loans and Interest Income | Loans and Interest Income Loans are reported at principal amounts outstanding, adjusted for unearned income, net deferred loan origination fees and costs, purchase premiums and discounts, write-downs and the allowance for loan losses. Loan origination fees, net of certain deferred origination costs, and purchase premiums and discounts are recognized as an adjustment to the yield of the related loans, on an effective yield basis. Interest on all loans is accrued and credited to income based on the principal amount outstanding. The accrual of interest on loans is discontinued when, in the opinion of management, there is an indication that the borrower may be unable to make payments as they become due. Upon such discontinuance, all unpaid accrued interest is reversed against current income unless the collateral for the loan is sufficient to cover the accrued interest. Interest received on non-accrual loans generally is either applied against principal or reported as interest income in accordance with management’s judgment as to the collectability of principal. The policy for interest recognition on impaired loans is consistent with the non-accrual interest recognition policy. Generally, loans are restored to accrual status when the obligation is brought current and the borrower has performed in accordance with the contractual terms for a reasonable period of time and the ultimate collectability of the total contractual principal and interest is no longer in doubt. |
Allowance for Loan and Lease Losses | Allowance for Loan and Lease Losses The allowance for loan and lease losses is determined based on various components for individually impaired loans and for homogeneous pools of loans and leases. The allowance for loan and lease losses is increased by a provision for loan and lease losses, which is charged to expense, and reduced by charge-offs, net of recoveries by portfolio segment. The methodology for determining charge-offs is consistently applied to each segment. The allowance for loan and lease losses is maintained at a level that, in management’s judgment, is adequate to absorb credit losses inherent in the loan and lease portfolio. The amount of the allowance is based on management’s evaluation of the collectability of the loan and lease portfolio, including the nature of the portfolio, and changes in its risk profile, credit concentrations, historical trends and economic conditions. This evaluation also considers the balance of impaired loans. Losses on individually identified impaired loans are measured based on the present value of expected future cash flows, discounted at each loan’s original effective market interest rate. As a practical expedient, impairment may be measured based on the loan’s observable market price or the fair value of the collateral if the loan is collateral-dependent. When the measure of the impaired loan is less than the recorded investment in the loan, the impairment is recorded through the provision added to the allowance for loan losses. In general, all loans of $ 0.5 million or more and, at ALC, any loans of $ 50 thousand or more that are 90 days or more past due are identified for impairment analysis. One-to-four family residential mortgages and consumer installment loans are subjected to a collective evaluation for impairment, considering delinquency and repossession statistics, loss experience and other factors. Though management believes the allowance for loan and lease losses to be adequate, ultimate losses may vary from estimates. However, estimates are reviewed periodically, and, as adjustments become necessary, they are reported in earnings during periods in which they become known. |
Premises and Equipment | Premises and Equipment Premises and equipment are carried at cost less accumulated depreciation, and amortization is computed principally by the straight-line method over the estimated useful lives of the assets or the expected lease terms for leasehold improvements, whichever is shorter. Useful lives for all premises and equipment range from three to forty years . |
Bank Owned Life Insurance | Bank Owned Life Insurance The Company has purchased life insurance policies on certain directors and former executives. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill arises from business combinations and is generally determined as the excess of cost over the fair value of the net assets acquired and liabilities assumed as of the acquisition date. Goodwill is determined to have an indefinite useful life and is not amortized but tested for impairment at least annually or more frequently if events or circumstances exist that indicate that a goodwill impairment test should be performed. The Company performs its annual goodwill impairment test as of October 1st. Other intangible assets consist of core deposit intangible assets arising from acquisitions. Core deposit intangibles have definite useful lives and are amortized on an accelerated basis over their estimated useful lives. The Company’s core deposit intangible assets have estimated useful lives of seven years . In addition, these intangible assets are evaluated for impairment whenever events or circumstances exist that indicate that the carrying amount should be reevaluated. |
Other Real Estate Owned (OREO) | Other Real Estate Owned (OREO) OREO consists of properties acquired through a foreclosure or in satisfaction of loans, as well as closed Bank and ALC branches. These properties are carried at net realizable value, less estimated selling costs. Losses arising from the acquisition of properties are charged against the allowance for loan losses. Gains or losses realized upon the sale of OREO and additional losses related to subsequent valuation adjustments are determined on a specific property basis and are included as a component of non-interest expense along with carrying costs. |
Income Taxes | Income Taxes The Company accounts for income taxes on the accrual basis through the use of the asset and liability method. Under the asset and liability method, deferred taxes are recognized for the tax consequences of temporary differences by applying enacted statutory tax rates applicable to future years to differences between the consolidated financial statement carrying amounts and the basis of existing assets and liabilities. Deferred tax assets are also recorded for any tax attributes, such as tax credit and net operating loss carryforwards. The net balance of deferred tax assets and liabilities is reported in other assets in the consolidated balance sheets. The effect on deferred taxes of a change in tax rates is recognized in income in the period that includes the enactment date. The Company evaluates the realization of deferred tax assets based on all positive and negative evidence available at the balance sheet date. Realization of deferred tax assets is based on the Company’s judgments about relevant factors affecting realization, including taxable income within any applicable carryback periods, future projected taxable income, reversal of taxable temporary differences and other tax planning strategies to maximize realization of deferred tax assets. A valuation allowance is recorded for any deferred tax assets that are not “more likely than not” to be realized. A tax position is recognized as a benefit only if it is “more likely than not” that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit for which there is a greater than 50% likelihood that such amount would be realized upon examination. For tax positions not meeting the “more likely than not” test, no tax benefit is recorded. The Company recognizes interest expense, interest income and penalties related to unrecognized tax benefits within current income tax expense. |
Stock Based Compensation | Stock-Based Compensation Compensation expense is recognized for stock options and restricted stock awards issued to employees based on the fair value of these awards at the date of grant. The Black-Scholes model is utilized to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Compensation expense is recognized over the required service period, generally defined as the vesting period. For awards with graded vesting, compensation expense is recognized on a straight-line basis over the requisite service period for the entire award. The Company’s accounting policy is to recognize compensation expense net of forfeitures. |
Treasury Stock | Treasury Stock Treasury stock purchases and sales are accounted for using the cost method. |
Advertising Cost | Advertising Costs Advertising costs for promoting the Company are minimal and expensed as incurred. |
Segment Reporting | Segment Reporting Management has identified two reportable operating segments of Bancshares: the Bank and ALC. The reportable segments were determined based on the internal management reporting system and comprise Bancshares’ and the Bank’s significant subsidiaries. Segment results include certain overhead allocations and intercompany transactions that were recorded at current market prices. All intercompany transactions were eliminated in the determination of consolidated balances. |
Reclassification and Restatement | Reclassification Certain disclosures in the notes to the prior period consolidated financial statements have been reclassified to conform to the 2022 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding (basic shares). Included in basic shares are shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors, as well as shares of restricted stock that have been granted pursuant to Bancshares’ 2013 Incentive Plan (as amended, the “2013 Incentive Plan”) previously approved by Bancshares’ shareholders. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period (dilutive shares). The dilutive shares consist of nonqualified stock option grants issued to employees and members of Bancshares’ Board of Directors pursuant to the 2013 Incentive Plan. The following table reflects weighted average shares used to calculate basic and diluted net income per share for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 2021 Weighted average shares outstanding 5,969,575 6,205,261 Weighted average director deferred shares 114,483 114,096 Basic shares 6,084,058 6,319,357 Dilutive shares 419,650 420,250 Diluted shares 6,503,708 6,739,607 Year Ended December 31, 2022 2021 (Dollars in Thousands, Net income $ 6,864 $ 4,451 Basic net income per share $ 1.13 $ 0.70 Diluted net income per share $ 1.06 $ 0.66 |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities, settlement of derivative contracts or changes in the fair value of cash flow derivatives. |
Accounting Policies Recently Adopted | Accounting Policies Recently Adopted ASU 2020-04 and ASU 2021-01, "Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting." These ASUs provide optional and temporary relief, in the form of optional expedients and exceptions, for applying GAAP to modifications of contracts, hedging relationships and other transactions affected by reference rate (e.g. LIBOR) reforms. The Company utilizes LIBOR, among other indexes, as a reference rate for underwriting certain variable rate loans and interest rate hedging instruments. Management has identified all contracts referencing LIBOR and will continue to monitor risks associated with the discontinuance of LIBOR until remediation of such contracts is complete. Reference rate reform has not had, nor does the Company expect it to have, a material effect on the Company’s consolidated balance sheet, operations or cash flows. ASU 2022-01, "Fair Value Hedging - Portfolio Layer Method - Derivatives and Hedging (Topic 815) ." In March 2022, the FASB issued ASU 2022-01. The amendments in this standard update expand the current last-of-layer method of hedge accounting that permits only one hedged layer to allow multiple hedged layers of a single closed portfolio. This standard update is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. The Company adopted ASU 2022-01 on January 1, 2023. The adoption of this standard update is not expected to have a material impact on the Company's consolidated financial statements; however, the impact will be dependent on future hedging activity. ASU 2017-04 , “Intangibles-Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment.” Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. As originally issued, ASU 2017-04 was effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2017-04 by three years for smaller reporting companies, including the Company. The ASU became effective for the Company on January 1, 2023. The adoption of this standard update is not currently expected to have a material effect on the Company’s financial statements; however, the impact will be dependent on future evaluations of goodwill impairment that will continue to be performed by management on an annual basis. ASU 2016-13 , "Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments.” Issued in June 2016, ASU 2016-13 removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables and held-to-maturity debt securities. Known as the Current Expected Credit Loss (CECL) model, the revised guidance removes all current recognition thresholds and requires companies to recognize an allowance for lifetime expected credit losses. Credit losses will be immediately recognized through net income; the amount recognized will be based on the current estimate of contractual cash flows not expected to be collected over the financial asset’s contractual term. The standard also adds disclosure requirements intended to enable users of the financial statements to understand credit risk in the portfolio and how management monitors credit quality, management’s estimate of expected credit losses, and changes in the estimate of credit losses during the period. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2019, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by three years for smaller reporting companies, including the Company. The standard became effective for the Company on January 1, 2023, and the Company recorded a transition adjustment that increased loan loss reserves by approximately $ 2.4 million. In accordance with transition accounting guidance, the transition adjustment was recorded directly to retained earnings during the first quarter of 2023 and will not impact current period earnings. In 2022, the FASB introduced ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures.” ASU 2022-02 seeks to improve the decision usefulness of information provided to investors concerning certain loan refinancings, restructurings and write-offs. The ASU eliminates the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL accounting model and enhances the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require disclosure of current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The Company adopted the amendments of ASU 2022-02 on January 1, 2023, concurrent with the adoption of the CECL accounting model. The amendments of ASU 2022-02 include only changes to certain financial statement disclosures; and, therefore, adoption of ASU 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements or results of operations. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Cash Flow, Supplemental Disclosures | Supplemental disclosures of cash flow information and non-cash transactions related to cash flows for the years ended December 31, 2022 and 2021 are as follows: 2022 2021 (Dollars in Thousands) Cash paid during the year for: Interest $ 3,873 $ 3,018 Income taxes 2,855 1,375 Non-cash transactions: Assets acquired in settlement of loans 907 806 Transfers of closed branch assets to OREO 391 1,978 Reissuance of treasury stock as compensation 138 59 |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects weighted average shares used to calculate basic and diluted net income per share for the years ended December 31, 2022 and 2021. Year Ended December 31, 2022 2021 Weighted average shares outstanding 5,969,575 6,205,261 Weighted average director deferred shares 114,483 114,096 Basic shares 6,084,058 6,319,357 Dilutive shares 419,650 420,250 Diluted shares 6,503,708 6,739,607 Year Ended December 31, 2022 2021 (Dollars in Thousands, Net income $ 6,864 $ 4,451 Basic net income per share $ 1.13 $ 0.70 Diluted net income per share $ 1.06 $ 0.66 |
Restructuring Charges (Tables)
Restructuring Charges (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Restructuring and Related Activities [Abstract] | |
Scheduled of Restructuring Charges | Total restructuring charges incurred during the years ended December 31, 2022 and 2021 consisted of the following: Year Ended Year Ended December 31, 2022 December 31, 2021 Total (Dollars in Thousands) Expense Category Severance and personnel expenses $ 108 $ 263 $ 371 Lease termination costs 2 224 226 Fixed asset valuation adjustments — 239 239 Termination of technology contracts 45 85 130 Other expenses — 93 93 Total expenses $ 155 $ 904 $ 1,059 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale and Held-to-Maturity | Details of investment securities available-for-sale and held-to-maturity as of December 31, 2022 and 2021 were as follows: Available-for-Sale December 31, 2022 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Residential $ 47,659 $ 2 $ ( 3,704 ) $ 43,957 Commercial 12,169 4 ( 480 ) 11,693 Obligations of U.S. government-sponsored agencies 5,116 — ( 846 ) 4,270 Obligations of states and political subdivisions 2,166 — ( 94 ) 2,072 Corporate notes 17,817 2 ( 1,898 ) 15,921 U.S. Treasury securities 56,956 — ( 4,074 ) 52,882 Total $ 141,883 $ 8 $ ( 11,096 ) $ 130,795 Held-to-Maturity December 31, 2022 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Commercial $ 1,167 $ — $ ( 41 ) $ 1,126 Obligations of U.S. government-sponsored agencies 610 — ( 40 ) 570 Obligations of states and political subdivisions 85 — ( 12 ) 73 Total $ 1,862 $ — $ ( 93 ) $ 1,769 Available-for-Sale December 31, 2021 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Residential $ 46,020 $ 450 $ ( 242 ) $ 46,228 Commercial 24,647 371 ( 47 ) 24,971 Obligations of U.S. government-sponsored agencies 5,207 — ( 15 ) 5,192 Obligations of states and political subdivisions 4,247 80 ( 10 ) 4,317 Corporate notes 15,458 76 ( 52 ) 15,482 U.S. Treasury securities 35,097 — ( 404 ) 34,693 Total $ 130,676 $ 977 $ ( 770 ) $ 130,883 Held-to-Maturity December 31, 2021 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Commercial $ 2,115 $ 29 $ — $ 2,144 Obligations of U.S. government-sponsored agencies 768 10 — 778 Obligations of states and political subdivisions 553 2 — 555 Total $ 3,436 $ 41 $ — $ 3,477 |
Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of investment securities available-for-sale and held-to-maturity as of December 31, 2022 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (Dollars in Thousands) Maturing within one year $ 511 $ 511 $ — $ — Maturing after one to five years 61,068 57,159 — — Maturing after five to ten years 67,309 60,872 1,606 1,536 Maturing after ten years 12,995 12,253 256 233 Total $ 141,883 $ 130,795 $ 1,862 $ 1,769 |
Schedule of Unrealized Loss on Investments | The following table reflects gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31, 2022 and 2021. Available-for-Sale December 31, 2022 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 19,876 $ ( 952 ) $ 23,903 $ ( 2,752 ) Commercial 9,720 ( 357 ) 1,247 ( 123 ) Obligations of U.S. government-sponsored agencies — — 4,270 ( 846 ) Obligations of states and political subdivisions 1,559 ( 41 ) 512 ( 53 ) Corporate notes 6,845 ( 898 ) 8,075 ( 1,000 ) U.S. Treasury securities 21,240 ( 698 ) 31,642 ( 3,376 ) Total $ 59,240 $ ( 2,946 ) $ 69,649 $ ( 8,150 ) Held-to-Maturity December 31, 2022 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ 1,125 $ ( 41 ) $ — $ — Obligations of U.S. government-sponsored agencies 215 ( 7 ) 356 ( 33 ) Obligations of states and political subdivisions 73 ( 12 ) — — Total $ 1,413 $ ( 60 ) $ 356 $ ( 33 ) Available-for-Sale December 31, 2021 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 31,346 $ ( 240 ) $ 253 $ ( 2 ) Commercial 2,245 ( 12 ) 2,970 ( 35 ) Obligations of U.S. government-sponsored agencies 4,987 ( 13 ) 194 ( 2 ) Obligations of states and political subdivisions 561 ( 10 ) — — Corporate notes 9,092 ( 52 ) — — U.S. Treasury securities 34,692 ( 404 ) — — Total $ 82,923 $ ( 731 ) $ 3,417 $ ( 39 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan and Lease Losses (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Schedule of Loan Portfolio | As of December 31, 2022 and 2021, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: December 31, 2022 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 54,396 $ — $ 54,396 Secured by 1-4 family residential properties 86,946 1,480 88,426 Secured by multi-family residential properties 67,917 — 67,917 Secured by non-farm, non-residential properties 199,965 — 199,965 Commercial and industrial loans (1) 73,561 — 73,561 Consumer loans: Direct consumer 5,145 4,908 10,053 Branch retail — 14,237 14,237 Indirect 266,567 — 266,567 Total loans 754,497 20,625 775,122 Less: Unearned interest, fees and deferred cost 799 450 1,249 Allowance for loan losses 8,057 1,365 9,422 Net loans $ 745,641 $ 18,810 $ 764,451 December 31, 2021 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 67,048 $ — $ 67,048 Secured by 1-4 family residential properties 70,439 2,288 72,727 Secured by multi-family residential properties 46,000 — 46,000 Secured by non-farm, non-residential properties 197,901 — 197,901 Commercial and industrial loans (1) 73,947 — 73,947 Consumer loans: Direct consumer 5,972 15,717 21,689 Branch retail — 25,692 25,692 Indirect 205,940 — 205,940 Total loans 667,247 43,697 710,944 Less: Unearned interest, fees and deferred cost ( 324 ) 2,918 2,594 Allowance for loan losses 7,038 1,282 8,320 Net loans $ 660,533 $ 39,497 $ 700,030 (1) Includes equipment financing leases and PPP loans. As of December 31, 2022 and 2021 , equipment financing leases totaled $ 10.3 million and $ 11.0 million, respectively. As of December 31, 2022 and 2021 , PPP loans totaled $ 6 thousand and $ 1.7 million, respectively. |
Allowance for Loan Losses | The following tables present changes in the allowance for loan and lease losses during the years ended December 31, 2022 and 2021 and the related loan balances by loan type as of December 31, 2022 and 2021: As of and for the Year Ended December 31, 2022 Construction, 1-4 Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for loan and lease losses: Beginning balance $ 628 $ 690 $ 437 $ 1,958 $ 860 $ 1,004 $ 304 $ 2,439 $ 8,320 Charge-offs — ( 40 ) — — — ( 1,958 ) ( 633 ) ( 382 ) ( 3,013 ) Recoveries 2 39 — 5 0 565 151 45 807 Provision ( 113 ) 143 209 7 59 1,255 696 1,052 3,308 Ending balance $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 866 $ 518 $ 3,154 $ 9,422 Ending balance of allowance Individually evaluated for $ — $ 7 $ — $ — $ 252 $ — $ — $ — $ 259 Collectively evaluated for 517 825 646 1,970 667 866 518 3,154 9,163 Total allowance for loan and lease losses $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 866 $ 518 $ 3,154 $ 9,422 Ending balance of loans Individually evaluated for $ — $ 582 $ — $ 2,492 $ 2,429 $ 18 $ — $ — $ 5,521 Collectively evaluated for 54,396 87,844 67,917 197,473 71,132 10,035 14,237 266,567 769,601 Total loans receivable $ 54,396 $ 88,426 $ 67,917 $ 199,965 $ 73,561 $ 10,053 $ 14,237 $ 266,567 $ 775,122 As of and for the Year Ended December 31, 2021 Construction, 1-4 Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for loan and lease losses: Beginning balance $ 393 $ 639 $ 577 $ 1,566 $ 1,008 $ 1,202 $ 373 $ 1,712 $ 7,470 Charge-offs ( 23 ) ( 12 ) — — ( 6 ) ( 1,230 ) ( 377 ) ( 483 ) ( 2,131 ) Recoveries 22 14 — 5 21 626 215 68 971 Provision 236 49 ( 140 ) 387 ( 163 ) 406 93 1,142 2,010 Ending balance $ 628 $ 690 $ 437 $ 1,958 $ 860 $ 1,004 $ 304 $ 2,439 $ 8,320 Ending balance of allowance Individually evaluated for $ — $ 10 $ — $ — $ 57 $ — $ — $ — $ 67 Collectively evaluated for 628 680 437 1,958 803 1,004 304 2,439 8,253 Total allowance for loan and lease losses $ 628 $ 690 $ 437 $ 1,958 $ 860 $ 1,004 $ 304 $ 2,439 $ 8,320 Ending balance of loans Individually evaluated for $ — $ 646 $ — $ 1,051 $ 880 $ 21 $ — $ — $ 2,598 Collectively evaluated for 67,048 72,081 46,000 196,850 73,067 21,668 25,692 205,940 708,346 Total loans receivable $ 67,048 $ 72,727 $ 46,000 $ 197,901 $ 73,947 $ 21,689 $ 25,692 $ 205,940 $ 710,944 |
Loans By Credit Quality Indicators | The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2022: December 31, 2022 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 54,396 $ — $ — $ 54,396 Secured by multi-family residential properties 67,917 — — 67,917 Secured by non-farm, non-residential properties 196,813 651 2,501 199,965 Commercial and industrial loans 70,515 — 3,046 73,561 Total $ 389,641 $ 651 $ 5,547 $ 395,839 As a percentage of total loans 98.43 % 0.17 % 1.40 % 100.00 % December 31, 2022 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 87,302 $ 1,124 $ 88,426 Consumer loans: Direct consumer 10,007 46 10,053 Branch retail 14,205 32 14,237 Indirect 266,496 71 266,567 Total $ 378,010 $ 1,273 $ 379,283 As a percentage of total loans 99.66 % 0.34 % 100.00 % The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2021: December 31, 2021 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 67,046 $ — $ 2 $ 67,048 Secured by multi-family residential properties 43,472 2,528 — 46,000 Secured by non-farm, non-residential properties 189,425 7,442 1,034 197,901 Commercial and industrial loans 72,116 333 1,498 73,947 Total $ 372,059 $ 10,303 $ 2,534 $ 384,896 As a percentage of total loans 96.66 % 2.68 % 0.66 % 100.00 % December 31, 2021 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 71,526 $ 1,201 $ 72,727 Consumer loans: Direct consumer 20,939 750 21,689 Branch retail 25,486 206 25,692 Indirect 205,940 — 205,940 Total $ 323,891 $ 2,157 $ 326,048 As a percentage of total loans 99.34 % 0.66 % 100.00 % |
Aging Analysis of Past Due Loans | The following table provides an aging analysis of past due loans by class as of December 31, 2022: As of December 31, 2022 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 54,396 $ 54,396 $ — Secured by 1-4 family residential 800 87 78 965 87,461 88,426 — Secured by multi-family residential — — — — 67,917 67,917 — Secured by non-farm, non-residential 137 — — 137 199,828 199,965 — Commercial and industrial loans 61 — 300 361 73,200 73,561 — Consumer loans: Direct consumer 250 49 30 329 9,724 10,053 — Branch retail 257 85 32 374 13,863 14,237 Indirect 186 55 71 312 266,255 266,567 — Total $ 1,691 $ 276 $ 511 $ 2,478 $ 772,644 $ 775,122 $ — As a percentage of total loans 0.21 % 0.04 % 0.07 % 0.32 % 99.68 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2021: As of December 31, 2021 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 67,048 $ 67,048 $ — Secured by 1-4 family residential 349 23 20 392 72,335 72,727 — Secured by multi-family residential — — — — 46,000 46,000 — Secured by non-farm, non-residential 403 — — 403 197,498 197,901 — Commercial and industrial loans 54 — 234 288 73,659 73,947 — Consumer loans: Direct consumer 652 589 730 1,971 19,718 21,689 — Branch retail 377 182 206 765 24,927 25,692 Indirect 43 14 — 57 205,883 205,940 — Total $ 1,878 $ 808 $ 1,190 $ 3,876 $ 707,068 $ 710,944 $ — As a percentage of total loans 0.27 % 0.11 % 0.17 % 0.55 % 99.45 % 100.00 % |
Non-accruing Loans | The following table provides an analysis of non-accruing loans by class as of December 31, 2022 and 2021: Loans on Non-Accrual Status December 31, December 31, (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — $ 2 Secured by 1-4 family residential properties 914 780 Secured by multi-family residential properties — — Secured by non-farm, non-residential properties — — Commercial and industrial loans 605 277 Consumer loans: Direct consumer 29 743 Branch retail 32 206 Indirect 71 — Total loans $ 1,651 $ 2,008 |
Impaired Loans | As of December 31, 2022, the carrying amount of the Company’s impaired loans consisted of the following: December 31, 2022 Carrying Unpaid Related (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 568 568 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,492 2,492 — Commercial and industrial 2,076 2,076 — Direct consumer 18 18 — Total impaired loans with no related allowance recorded $ 5,154 $ 5,154 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 14 14 7 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 353 353 252 Direct consumer — — — Total impaired loans with an allowance recorded $ 367 $ 367 $ 259 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 582 582 7 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,492 2,492 — Commercial and industrial 2,429 2,429 252 Direct consumer 18 18 — Total impaired loans $ 5,521 $ 5,521 $ 259 As of December 31, 2021, the carrying amount of the Company’s impaired loans consisted of the following: December 31, 2021 Carrying Unpaid Related (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 630 630 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,051 1,051 — Commercial and industrial 823 823 — Direct consumer 21 21 — Total impaired loans with no related allowance recorded $ 2,525 $ 2,525 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 16 16 10 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 57 57 57 Direct consumer — — — Total impaired loans with an allowance recorded $ 73 $ 73 $ 67 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 646 646 10 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,051 1,051 — Commercial and industrial 880 880 57 Direct consumer 21 21 — Total impaired loans $ 2,598 $ 2,598 $ 67 The average net investment in impaired loans and interest income recognized and received on impaired loans during the years ended December 31, 2022 and 2021 was as follows: Year Ended December 31, 2022 Average Interest Interest (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ 87 $ — $ — Secured by 1-4 family residential properties 614 14 6 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,529 49 48 Commercial and industrial 1,279 8 5 Direct consumer 19 1 1 Total $ 3,528 $ 72 $ 60 Year Ended December 31, 2021 Average Interest Interest (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 773 31 31 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,377 140 108 Commercial and industrial 637 61 40 Direct consumer 22 9 2 Total $ 3,809 $ 241 $ 181 |
Loans Modified in a Troubled Debt Restructuring | The following table provides, as of December 31, 2022 and 2021, the number of loans remaining in each loan category that the Company had previously modified in a troubled debt restructuring, as well as the pre- and post-modification principal balance as of each date. December 31, 2022 December 31, 2021 Number Pre- Post- Number Pre- Post- (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties 1 23 12 1 23 12 Secured by non-farm, non-residential properties 2 621 612 2 621 617 Commercial loans 1 71 22 1 71 31 Total 4 $ 715 $ 646 4 $ 715 $ 660 |
Other Real Estate Owned and R_2
Other Real Estate Owned and Repossessed Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Real Estate [Abstract] | |
Summary of Foreclosed Property Activity | Other Real Estate Owned Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity during the years ended December 31, 2022 and 2021: December 31, December 31, (Dollars in Thousands) Beginning balance $ 2,149 $ 949 Additions (1) 411 1,981 Sales proceeds ( 2,232 ) ( 1,205 ) Gross gains 386 491 Gross losses ( 27 ) — Net gains 359 491 Impairment ( 1 ) ( 67 ) Ending balance $ 686 $ 2,149 (1) Additions to other real estate owned (“OREO”) include transfers from loans, transfers from closed Bank and ALC branches, and capitalized improvements to existing OREO properties. |
Summary of Repossessed Assets Activity | The following table summarizes repossessed asset activity during the years ended December 31, 2022 and 2021: December 31, December 31, (Dollars in Thousands) Beginning balance $ 154 $ 245 Transfers from loans 887 803 Sales proceeds ( 506 ) ( 798 ) Gross gains — — Gross losses ( 452 ) ( 96 ) Net losses ( 452 ) ( 96 ) Impairment — — Ending balance $ 83 $ 154 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) as of December 31, 2022 were as follows: December December (Dollars in (Dollars in Goodwill $ 7,435 $ 7,435 Core deposit intangible: Gross carrying amount 2,048 2,048 Accumulated amortization ( 1,682 ) ( 1,414 ) Core deposit intangible, net 366 634 Total $ 7,801 $ 8,069 |
Schedule of Estimated Remaining Amortization Expense | The Company’s estimated remaining amortization expense on intangible assets as of December 31, 2022 was as follows: Amortization (Dollars in 2023 195 2024 122 2025 49 Total $ 366 |
Premises and Equipment (Table)
Premises and Equipment (Table) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment and applicable depreciable lives are summarized as follows: December 31, 2022 2021 (Dollars in Thousands) Land $ 5,390 $ 5,486 Premises ( 40 years) 24,880 25,924 Furniture, fixtures and equipment ( 3 - 7 years) 15,792 15,629 Total cost of premises and equipment 46,062 47,039 Less accumulated depreciation ( 21,623 ) ( 21,916 ) Total premises and equipment, net $ 24,439 $ 25,123 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Disclosure Text Block [Abstract] | |
Scheduled Maturities of Time Deposits | As of December 31, 2022, the scheduled maturities of the Company’s time deposits were as follows: (Dollars in 2023 $ 115,494 2024 56,104 2025 63,576 2026 13,274 2027 4,264 Total $ 252,712 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Borrowings | 2022 2021 (Dollars in Thousands) Balance at year-end $ 10,726 $ 10,653 Average balance during the year $ 10,689 $ 2,682 Maximum month-end balance during the year $ 10,726 $ 10,653 Average rate paid during the year, including amortization of debt issuance costs 4.20 % 4.20 % Weighted average remaining maturity (in years) 8.75 9.75 |
Schedule of Available Unused Lines of Credit | As of December 31, 2022 and 2021 , the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements December 31, 2022 December 31, 2021 Correspondent banks None $ 45.0 million $ 45.0 million Federal Reserve (discount window) Subject to collateral $ 15.0 million $ 15.0 million FHLB advances (1) Subject to collateral $ 246.8 million $ 237.0 million |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) | The consolidated provisions for income taxes for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 (Dollars in Thousands) Federal Current $ 2,025 $ 1,522 Deferred ( 291 ) ( 527 ) Total federal 1,734 995 State Current 490 154 Deferred ( 76 ) 126 Total state 414 280 Total $ 2,148 $ 1,275 |
Schedule of Effective Income Tax Rate Reconciliation | The consolidated tax expense differed from the amount computed by applying the Company’s federal statutory income tax rate of 21.0 % in 2022 and 2021 as described in the following table: 2022 2021 (Dollars in Thousands) Income tax expense at federal statutory rate $ 1,892 $ 1,202 Increase (decrease) resulting from: Tax-exempt interest ( 76 ) ( 88 ) Bank-owned life insurance ( 62 ) ( 62 ) State income tax expense, net of federal income taxes 329 169 Other 65 54 Total $ 2,148 $ 1,275 |
Schedule of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to significant portions of the deferred tax assets and deferred tax liabilities as of December 31, 2022 and 2021 are presented below: 2022 2021 (Dollars in Thousands) Deferred tax assets: Allowance for loan losses $ 2,333 $ 2,065 Deferred compensation 895 947 Deferred commissions and fees 407 243 Unrealized loss on securities available-for-sale 2,715 — Unrealized loss on cash flow hedges — 144 Other 905 862 Total gross deferred tax assets 7,255 4,261 Deferred tax liabilities: Premises and equipment 1,288 1,248 Core deposit intangible 91 158 Limited partnerships 94 87 Unrealized gain on securities available-for-sale — 52 Unrealized gain on cash flow hedges 301 — Other 341 266 Total gross deferred tax liabilities 2,115 1,811 Net deferred tax asset, included in other assets $ 5,140 $ 2,450 |
Stock Awards (Tables)
Stock Awards (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | The following table summarizes the Company’s stock option activity for the periods presented. Year Ended December 31, 2022 December 31, 2021 Number of Average Number of Average Options: Outstanding, beginning of year 420,250 $ 9.79 421,000 $ 9.79 Granted — — — — Exercised — — 750 8.23 Forfeited 600 10.86 — — Options outstanding, end of year 419,650 $ 9.79 420,250 $ 9.79 Options exercisable, end of year 416,249 $ 9.77 395,678 $ 9.74 |
Shareholder's Equity (Tables)
Shareholder's Equity (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | The following tables provide the Bank’s actual regulatory capital amounts and ratios under regulatory capital standards in effect (Basel III) at December 31, 2022 and 2021: 2022 Actual Regulatory Capital Minimum To Be Well Amount Ratio Requirement Capitalized (Dollars in Thousands) Common equity Tier 1 capital (to risk-weighted assets) $ 92,853 11.07 % 7.00 % 6.50 % Tier 1 capital (to risk-weighted assets) 92,853 11.07 % 8.50 % 8.00 % Total capital (to risk-weighted assets) 102,275 12.19 % 10.50 % 10.00 % Tier 1 leverage (to average assets) 92,853 9.39 % 4.00 % 5.00 % 2021 Actual Regulatory Capital Minimum To Be Well Amount Ratio Requirement Capitalized (Dollars in Thousands) Common equity Tier 1 capital (to risk-weighted assets) $ 87,379 11.36 % 7.00 % 6.50 % Tier 1 capital (to risk-weighted assets) 87,379 11.36 % 8.50 % 8.00 % Total capital (to risk-weighted assets) 95,699 12.44 % 10.50 % 10.00 % Tier 1 leverage (to average assets) 87,379 9.17 % 4.00 % 5.00 % |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Components of Lease Expense | The following table provides a summary of the components of lease income and expense, as well as the reporting location in the Consolidated Statements of Operations for the years ended December 31, 2022 and 2021: Year Ended Location December 31, December 31, (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 434 $ 999 Operating lease income (2) Lease income $ 864 $ 830 (1) Includes short-term lease costs. For the years ended December 31, 2022 and 2021 , short-term lease costs were nominal in amount. (2) Operating lease income includes rental income from owned properties. Location December 31, December 31, (Dollars in (Dollars in Operating lease right-of-use assets Other assets $ 1,883 $ 2,245 Operating lease liabilities Other liabilities $ 1,961 $ 2,317 Weighted-average remaining lease term (in years) 5.03 5.90 Weighted-average discount rate 3.30 % 3.29 % Year Ended December 31, December 31, (Dollars in Thousands) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 427 $ 859 |
Future Minimum Operating Lease Payments | The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of December 31, 2022: Minimum (Dollars in 2023 $ 432 2024 438 2025 339 2026 346 2027 353 2028 and thereafter 238 Total future minimum lease payments $ 2,146 Less: Imputed interest 185 Total $ 1,961 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amount and Fair Value of Derivative Instruments Included on Company's Consolidated Balance Sheets on a net Basis | The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a net basis as of December 31, 2022 and 2021. As of December 31, 2022 As of December 31, 2021 Estimated Fair Value Estimated Fair Value Notional Amount Gain (Loss) (1) Notional Amount Gain (Loss) (1) (Dollars in Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to fixed rate commercial real estate loans $ 20,000 $ 1,101 $ 20,000 $ ( 198 ) Total fair value hedges 1,101 ( 198 ) Cash flow hedges: Interest rate swaps related to variable-rate money market deposit accounts 20,000 1,205 20,000 ( 472 ) Interest rate swaps related to FHLB advances — — 10,000 ( 104 ) Total cash flow hedges 1,205 ( 576 ) Total hedges designated as hedging instruments, net $ 2,306 $ ( 774 ) (1) Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets. |
Schedule of Cumulative Basis Adjustments for Fair Value Hedges | The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Location in the Consolidated Carrying Amount of the Cumulative Amount of Fair Item is Included December 31, 2022 (Dollars in Thousands) Loans and leases, net of allowance for loan and (1) $ 32,233 $ 1,101 (1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $ 33.3 million, the cumulative basis adjustments associated with these hedging relationships were $ 1.1 million, and the amounts of the designated hedged items were $ 20 million. |
Schedule of Hedging Derivative Instruments' Effect on Company's Consolidated Statement of Operations | The following table presents the effect of hedging derivative instruments on the Company’s Consolidated Statements of Operations. Location in the Year Ended December 31, Consolidated Statements 2022 2021 of Operations (Dollars in Thousands) Interest income Interest and fees on loans $ 75 $ ( 253 ) Interest expense Interest on deposits 56 ( 127 ) Interest expense Interest on short-term borrowings ( 5 ) ( 333 ) Net increase (decrease) to income before income taxes $ 126 $ ( 713 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The results for the two reportable segments of the Company are included in the tables below: 2022 Bank ALC All Other Eliminations Consolidated (Dollars in Thousands) Total interest income $ 37,510 $ 4,716 $ 5 $ ( 1,034 ) $ 41,197 Total interest expense 3,803 1,029 458 ( 1,034 ) 4,256 Net interest income 33,707 3,687 ( 453 ) — 36,941 Provision for loan and lease losses 1,338 1,970 — — 3,308 Net interest income after provision 32,369 1,717 ( 453 ) — 33,633 Total non-interest income 3,535 204 8,091 ( 8,379 ) 3,451 Total non-interest expense 25,278 1,751 1,238 ( 195 ) 28,072 Income (loss) before income taxes 10,626 170 6,400 ( 8,184 ) 9,012 Provision for income taxes 2,475 45 ( 372 ) — 2,148 Net income (loss) $ 8,151 $ 125 $ 6,772 $ ( 8,184 ) $ 6,864 Other significant items: Total assets $ 998,727 $ 19,772 $ 101,072 $ ( 124,904 ) $ 994,667 Total investment securities 132,657 — — — 132,657 Total loans, net 763,941 18,810 — ( 18,300 ) 764,451 Goodwill and core deposit intangible, net 7,801 — — — 7,801 Investment in subsidiaries — — 93,414 ( 93,414 ) — Fixed asset additions 1,262 — — — 1,262 Depreciation and amortization expense 1,579 35 — — 1,614 Total interest income from external customers 36,481 4,716 — — 41,197 Total interest income from affiliates 1,029 — 5 ( 1,034 ) — 2021 Bank ALC All Other Eliminations Consolidated (Dollars in Thousands) Total interest income $ 32,537 $ 9,019 $ 7 $ ( 1,642 ) $ 39,921 Total interest expense 2,842 1,635 115 ( 1,642 ) 2,950 Net interest income 29,695 7,384 ( 108 ) — 36,971 Provision for loan and lease losses 1,515 495 — — 2,010 Net interest income after provision 28,180 6,889 ( 108 ) — 34,961 Total non-interest income 3,206 576 5,697 ( 5,958 ) 3,521 Total non-interest expense 25,188 6,599 1,421 ( 452 ) 32,756 Income (loss) before income taxes 6,198 866 4,168 ( 5,506 ) 5,726 Provision for income taxes 1,305 221 ( 251 ) — 1,275 Net income (loss) $ 4,893 $ 645 $ 4,419 $ ( 5,506 ) $ 4,451 Other significant items: Total assets $ 961,572 $ 40,924 $ 106,247 $ ( 150,441 ) $ 958,302 Total investment securities 134,238 — 81 — 134,319 Total loans, net 699,600 39,499 — ( 39,069 ) 700,030 Goodwill and core deposit intangible, net 8,069 — — — 8,069 Investment in subsidiaries — — 95,172 ( 95,172 ) — Fixed asset additions 816 6 — — 822 Depreciation and amortization expense 1,613 79 — — 1,692 Total interest income from external customers 30,902 9,019 — — 39,921 Total interest income from affiliates 1,635 — 7 ( 1,642 ) — |
Other Operating Income and Ex_2
Other Operating Income and Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Operating Income | Other operating income for the years ended December 31, 2022 and 2021 consisted of the following: Year Ended December 31, 2022 2021 (Dollars in Thousands) Bank-owned life insurance $ 451 $ 439 Credit insurance commissions and fees $ ( 93 ) $ 192 ATM fee income 532 577 Mortgage fees from secondary market 17 23 Wire transfer fees 52 64 Gain on sales of premises and equipment and other assets 301 19 Other income 256 286 Total $ 1,516 $ 1,600 |
Other Operating Expense | Other operating expense for the years ended December 31, 2022 and 2021 consisted of the following: Year Ended December 31, 2022 2021 (Dollars in Thousands) Postage, stationery and supplies $ 614 $ 802 Telephone/data communication 682 903 Advertising and marketing 189 167 Travel and business development 225 147 Collection and recoveries 261 168 Other services 323 322 Insurance expense 566 635 FDIC insurance and state assessments 684 726 Loss on sales of premises and equipment and other assets 69 150 Core deposit intangible amortization 268 341 Other real estate/foreclosure expense, net ( 331 ) ( 371 ) Other expense 2,124 2,114 Total $ 5,674 $ 6,104 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitment and Contingent Liabilities | A summary of these commitments and contingent liabilities is presented below: December 31, 2022 2021 (Dollars in Thousands) Standby letters of credit $ — $ — Standby performance letters of credit $ 556 $ 582 Commitments to extend credit $ 186,169 $ 164,247 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents assets and liabilities measured at fair value on a recurring basis as of December 31, 2022 and 2021. Fair Value Measurements as of December 31, 2022 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 43,957 $ — $ 43,957 $ — Commercial 11,693 — 11,693 — Obligations of U.S. government-sponsored agencies 4,270 — 4,270 — Obligations of states and political subdivisions 2,072 — 2,072 — Corporate notes 15,921 14,921 1,000 U.S. Treasury securities 52,882 52,882 — — Other assets - derivatives 2,306 — 2,306 — Fair Value Measurements as of December 31, 2021 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 46,228 $ — $ 46,228 $ — Commercial 24,971 — 24,971 — Obligations of U.S. government-sponsored agencies 5,192 — 5,182 10 Obligations of states and political subdivisions 4,317 — 4,317 — Corporate notes 15,482 15,482 — U.S. Treasury securities 34,693 34,693 — — Other liabilities - derivatives 774 — 774 — |
Fair Value Assets Measured on Nonrecurring Basis | The following table presents the balances of impaired loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of December 31, 2022 and 2021: Fair Value Measurements as of December 31, 2022 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Impaired loans $ 108 $ — $ — $ 108 OREO and other assets held-for-sale 686 — — 686 Fair Value Measurements as of December 31, 2021 Using Totals At Quoted Prices Significant Significant (Dollars in Thousands) Impaired loans $ 6 $ — $ — $ 6 OREO and other assets held-for-sale 2,149 — — 2,149 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input. Level 3 Significant Unobservable Input Assumptions Fair Value Valuation Technique Unobservable Input Quantitative Range (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 108 Multiple data points, including discount to appraised value of collateral based on recent market activity Appraisal comparability adjustment (discount) 9 %- 10 % ( 9.5 )% OREO and other assets held-for-sale $ 686 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9 %- 10 % ( 9.5 )% |
Fair Value, by Balance Sheet Grouping | The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of December 31, 2022 and 2021 were as follows: December 31, 2022 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 30,152 $ 30,152 $ 30,152 $ — $ — Investment securities available-for-sale 130,795 130,795 52,882 76,913 1,000 Investment securities held-to-maturity 1,862 1,769 — 1,769 — Federal funds sold 1,768 1,768 — 1,768 — Federal Home Loan Bank stock 1,359 1,359 — — 1,359 Loans, net of allowance for loan losses 764,451 730,961 — — 730,961 Liabilities: Deposits 870,025 788,161 — 788,161 — Short-term borrowings 20,038 20,038 — 20,038 — Long-term borrowings 10,726 9,702 9,702 Other assets - derivatives 2,306 2,306 — 2,306 — December 31, 2021 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 61,244 $ 61,244 $ 61,244 $ — $ — Investment securities available-for-sale 130,883 130,883 34,612 96,260 11 Investment securities held-to-maturity 3,436 3,477 — 3,477 — Federal funds sold 82 82 — 82 — Federal Home Loan Bank stock 870 870 — — 870 Loans, net of allowance for loan losses 700,030 694,744 — — 694,744 Liabilities: Deposits 838,126 837,439 — 837,439 — Short-term borrowings 10,046 10,046 — 10,046 — Long-term borrowings 10,653 10,804 10,804 Other liabilities - derivatives 774 774 — 774 — |
First US Bancshares, Inc. (Pa_2
First US Bancshares, Inc. (Parent Company Only) Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Table Text Block [Abstract] | |
Balance Sheet | Balance Sheets Year Ended December 31, 2022 2021 (Dollars in Thousands) Assets: Cash on deposit $ 2,855 $ 5,890 Investment in subsidiaries 93,414 95,172 Other assets 78 83 Total assets $ 96,347 $ 101,145 Liabilities: Other liabilities $ 485 $ 428 Long-term borrowings 10,726 10,653 Shareholders’ equity 85,136 90,064 Total liabilities and shareholders’ equity $ 96,347 $ 101,145 |
Income Statement | Statements of Operations Year Ended December 31, 2022 2021 (Dollars in Thousands) Income: Dividend income, First US Bank $ 3,463 $ 1,570 Total income 3,463 1,570 Expense 1,320 1,055 Gain before equity in undistributed income of subsidiaries 2,143 515 Equity in undistributed income of subsidiaries 4,721 3,936 Net income $ 6,864 $ 4,451 |
Cash Flow Statement | Statements of Cash Flows Year Ended December 31, 2022 2021 (Dollars in Thousands) Cash flows from operating activities: Net income $ 6,864 $ 4,451 Adjustments to reconcile net income to net cash provided Distributions in excess of undistributed income ( 4,721 ) ( 3,936 ) Change in other assets and liabilities 135 580 Net cash provided by operating activities 2,278 1,095 Cash flows from investing activities: Investment in subsidiaries - ( 5,000 ) Net cash used in investing activities — ( 5,000 ) Cash flows from financing activities: Net proceeds from long-term borrowings - 10,653 Net share-based compensation transactions - ( 7 ) Dividends paid ( 832 ) ( 745 ) Treasury stock repurchases ( 4,481 ) ( 525 ) Net cash provided by (used in) in financing activities ( 5,313 ) 9,376 Net increase (decrease) in cash ( 3,035 ) 5,471 Cash at beginning of year 5,890 419 Cash at end of year $ 2,855 $ 5,890 |
Quarterly Data (Unaudited) (Tab
Quarterly Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information | Year Ended December 31, 2022 2021 Fourth Third Second First Fourth Third Second First (Dollars in Thousands) Interest income $ 11,621 $ 10,670 $ 9,525 $ 9,381 $ 9,987 $ 10,030 $ 10,059 $ 9,845 Interest expense 1,730 1,155 699 672 727 695 747 781 Net interest income 9,891 9,515 8,826 8,709 9,260 9,335 9,312 9,064 Provision for loan and lease losses 527 1,165 895 721 493 618 498 401 Net interest income after provision 9,364 8,350 7,931 7,988 8,767 8,717 8,814 8,663 Non-interest: Income 678 1,088 856 829 865 896 809 951 Expense 7,106 7,032 6,878 7,056 7,414 8,547 8,399 8,396 Income before income taxes 2,936 2,406 1,909 1,761 2,218 1,066 1,224 1,218 Provision for income taxes 708 546 494 400 507 229 271 268 Net income after taxes $ 2,228 $ 1,860 $ 1,415 $ 1,361 $ 1,711 $ 837 $ 953 $ 950 Earnings per common share: Basic earnings $ 0.37 $ 0.31 $ 0.23 $ 0.22 $ 0.27 $ 0.13 $ 0.15 $ 0.15 Diluted earnings $ 0.35 $ 0.29 $ 0.22 $ 0.20 $ 0.25 $ 0.13 $ 0.14 $ 0.14 |
Description Of Business - Addit
Description Of Business - Additional Information (Details) - Branch | 3 Months Ended | 12 Months Ended | |
Sep. 03, 2021 | Sep. 30, 2021 | Dec. 31, 2022 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of states | 12 | ||
ALC [Member] | |||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |||
Number of office closed | 20 | 20 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 USD ($) Portfolio TradingSecurities Segment | Dec. 31, 2021 USD ($) TradingSecurities | Jan. 01, 2023 USD ($) | |
Finite Lived Intangible Assets [Line Items] | |||
Maximum maturity period for cash equivalents | 90 days | ||
Number of investment portfolios | Portfolio | 3 | ||
Number of securities held as trading securities | TradingSecurities | 0 | 0 | |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 1,700 | $ 2,000 | |
Useful lives of premises and equipment | three to forty years | ||
Number of reportable segments | Segment | 2 | ||
Core Deposits [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | ||
Subsequent Event [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Transition adjustment increase in loan loss reserves | $ 2,400 | ||
Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Loans Modified in a Troubled Debt Restructuring, Individually Evaluated for Impairment, Principal Balance, Threshold | $ 500 | ||
ALC [Member] | Minimum [Member] | |||
Finite Lived Intangible Assets [Line Items] | |||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 50 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Disclosures of Cash Flow Information and Non-cash Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounting Policies [Abstract] | ||
Interest | $ 3,873 | $ 3,018 |
Income taxes | 2,855 | 1,375 |
Non-cash transactions: | ||
Assets acquired in settlement of loans | 907 | 806 |
Transfers of closed branch assets to OREO | 391 | 1,978 |
Reissuance of treasury stock as compensation | $ 138 | $ 59 |
Summary of Significant Accoun_6
Summary of Significant Accounting Policies - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||||||||||
Weighted average shares outstanding | 5,969,575 | 6,205,261 | ||||||||
Weighted average director deferred shares | 114,483 | 114,096 | ||||||||
Basic shares | 6,084,058 | 6,319,357 | ||||||||
Dilutive shares | 419,650 | 420,250 | ||||||||
Diluted shares | 6,503,708 | 6,739,607 | ||||||||
Net income | $ 6,864 | $ 4,451 | ||||||||
Basic net income per share | $ 0.37 | $ 0.31 | $ 0.23 | $ 0.22 | $ 0.27 | $ 0.13 | $ 0.15 | $ 0.15 | $ 1.13 | $ 0.70 |
Diluted net income per share | $ 0.35 | $ 0.29 | $ 0.22 | $ 0.20 | $ 0.25 | $ 0.13 | $ 0.14 | $ 0.14 | $ 1.06 | $ 0.66 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) - ALC [Member] $ in Thousands | 3 Months Ended | 12 Months Ended | 24 Months Ended | ||
Sep. 03, 2021 Branch | Sep. 30, 2021 Branch | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | Dec. 31, 2022 USD ($) | |
Restructuring Cost And Reserve [Line Items] | |||||
Number of office closed | Branch | 20 | 20 | |||
Pre-tax charges of restructuring | $ | $ 155 | $ 904 | $ 1,059 |
Restructuring Charges - Schedul
Restructuring Charges - Scheduled of Restructuring Charges (Details) - ALC [Member] - USD ($) $ in Thousands | 12 Months Ended | 24 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2022 | |
Expense Category | |||
Severance and personnel expenses | $ 108 | $ 263 | $ 371 |
Lease termination costs | 2 | 224 | 226 |
Fixed asset valuation adjustments | 239 | 239 | |
Termination of technology contracts | 45 | 85 | 130 |
Other expenses | 93 | 93 | |
Total expenses | $ 155 | $ 904 | $ 1,059 |
Investment Securities - Availab
Investment Securities - Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | $ 141,883 | $ 130,676 |
Available-for-sale, gross unrealized gains | 8 | 977 |
Available-for-sale, gross unrealized losses | (11,096) | (770) |
Investment securities available-for-sale, at fair value | 130,795 | 130,883 |
Held-to-maturity, amortized cost | 1,862 | 3,436 |
Held-to-maturity, gross unrealized gains | 41 | |
Held-to-maturity, gross unrealized losses | (93) | |
Held-to-maturity, estimated fair value | 1,769 | 3,477 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 47,659 | 46,020 |
Available-for-sale, gross unrealized gains | 2 | 450 |
Available-for-sale, gross unrealized losses | (3,704) | (242) |
Investment securities available-for-sale, at fair value | 43,957 | 46,228 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 12,169 | 24,647 |
Available-for-sale, gross unrealized gains | 4 | 371 |
Available-for-sale, gross unrealized losses | (480) | (47) |
Investment securities available-for-sale, at fair value | 11,693 | 24,971 |
Held-to-maturity, amortized cost | 1,167 | 2,115 |
Held-to-maturity, gross unrealized gains | 29 | |
Held-to-maturity, gross unrealized losses | (41) | |
Held-to-maturity, estimated fair value | 1,126 | 2,144 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 5,116 | 5,207 |
Available-for-sale, gross unrealized losses | (846) | (15) |
Investment securities available-for-sale, at fair value | 4,270 | 5,192 |
Held-to-maturity, amortized cost | 610 | 768 |
Held-to-maturity, gross unrealized gains | 10 | |
Held-to-maturity, gross unrealized losses | (40) | |
Held-to-maturity, estimated fair value | 570 | 778 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 2,166 | 4,247 |
Available-for-sale, gross unrealized gains | 80 | |
Available-for-sale, gross unrealized losses | (94) | (10) |
Investment securities available-for-sale, at fair value | 2,072 | 4,317 |
Held-to-maturity, amortized cost | 85 | 553 |
Held-to-maturity, gross unrealized gains | 2 | |
Held-to-maturity, gross unrealized losses | (12) | |
Held-to-maturity, estimated fair value | 73 | 555 |
Corporate Note Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 17,817 | 15,458 |
Available-for-sale, gross unrealized gains | 2 | 76 |
Available-for-sale, gross unrealized losses | (1,898) | (52) |
Investment securities available-for-sale, at fair value | 15,921 | 15,482 |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 56,956 | 35,097 |
Available-for-sale, gross unrealized losses | (4,074) | (404) |
Investment securities available-for-sale, at fair value | $ 52,882 | $ 34,693 |
Investment Securities - Schedul
Investment Securities - Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale, maturing within one year, amortized cost | $ 511 | |
Available-for-sale, maturing after one to five years, amortized cost | 61,068 | |
Available-for-sale, maturing after five to ten years, amortized cost | 67,309 | |
Available-for-sale, maturing after ten years, amortized cost | 12,995 | |
Available-for-sale, amortized cost | 141,883 | $ 130,676 |
Available-for-sale, maturing within one year, estimated fair value | 511 | |
Available-for-sale, maturing after one to five years, estimated fair value | 57,159 | |
Available-for-sale, maturing after five to ten years, estimated fair value | 60,872 | |
Available-for-sale, maturing after ten years, estimated fair value | 12,253 | |
Available-for-sale, amortized cost | 130,795 | 130,883 |
Held-to-maturity, maturing after five to ten years, amortized cost | 1,606 | |
Held-to-maturity, maturing after ten years, amortized cost | 256 | |
Held-to-maturity, amortized cost | 1,862 | 3,436 |
Held-to-maturity, maturity after five to ten years, estimated fair value | 1,536 | |
Held-to-maturity, maturing after ten years, estimated fair value | 233 | |
Held-to-maturity, amortized cost | $ 1,769 | $ 3,477 |
Investment Securities - Securit
Investment Securities - Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | $ 59,240 | $ 82,923 |
Available-for-sale, less than 12 months, unrealized losses | (2,946) | (731) |
Available-for-sale, 12 months or more, fair value | 69,649 | 3,417 |
Available-for-sale, 12 months or more, unrealized losses | (8,150) | (39) |
Held-to-maturity, less than 12 months, fair value | 1,413 | |
Held-to-maturity, less than 12 months, unrealized losses | (60) | |
Held-to-maturity, 12 months or more, fair value | 356 | |
Held-to-maturity, 12 months or more, unrealized losses | (33) | |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 19,876 | 31,346 |
Available-for-sale, less than 12 months, unrealized losses | (952) | (240) |
Available-for-sale, 12 months or more, fair value | 23,903 | 253 |
Available-for-sale, 12 months or more, unrealized losses | (2,752) | (2) |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 9,720 | 2,245 |
Available-for-sale, less than 12 months, unrealized losses | (357) | (12) |
Available-for-sale, 12 months or more, fair value | 1,247 | 2,970 |
Available-for-sale, 12 months or more, unrealized losses | (123) | (35) |
Held-to-maturity, less than 12 months, fair value | 1,125 | |
Held-to-maturity, less than 12 months, unrealized losses | (41) | |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 4,987 | |
Available-for-sale, less than 12 months, unrealized losses | (13) | |
Available-for-sale, 12 months or more, fair value | 4,270 | 194 |
Available-for-sale, 12 months or more, unrealized losses | (846) | (2) |
Held-to-maturity, less than 12 months, fair value | 215 | |
Held-to-maturity, less than 12 months, unrealized losses | (7) | |
Held-to-maturity, 12 months or more, fair value | 356 | |
Held-to-maturity, 12 months or more, unrealized losses | (33) | |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 1,559 | 561 |
Available-for-sale, less than 12 months, unrealized losses | (41) | (10) |
Available-for-sale, 12 months or more, fair value | 512 | |
Available-for-sale, 12 months or more, unrealized losses | (53) | |
Held-to-maturity, less than 12 months, fair value | 73 | |
Held-to-maturity, less than 12 months, unrealized losses | (12) | |
Corporate Note Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 6,845 | 9,092 |
Available-for-sale, less than 12 months, unrealized losses | (898) | (52) |
Available-for-sale, 12 months or more, fair value | 8,075 | |
Available-for-sale, 12 months or more, unrealized losses | (1,000) | |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 21,240 | 34,692 |
Available-for-sale, less than 12 months, unrealized losses | (698) | $ (404) |
Available-for-sale, 12 months or more, fair value | 31,642 | |
Available-for-sale, 12 months or more, unrealized losses | $ (3,376) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) DebtSecurities | Dec. 31, 2021 USD ($) DebtSecurities | |
Investments, Debt and Equity Securities [Abstract] | ||
Debt securities held to maturities in unrealized loss position | $ 60 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | DebtSecurities | 38 | 10 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | DebtSecurities | 86 | 32 |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Total | $ 0 | $ 0 |
Debt Securities, Available-for-sale, Restricted | $ 54,700 | $ 52,200 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan and Lease Losses - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 | |
Loans | $ 775,122 | $ 710,944 | ||
Less: Unearned interest, fees and deferred cost | 1,249 | 2,594 | ||
Loans, allowance for loan losses | 9,422 | 8,320 | $ 7,470 | |
Net loans | 764,451 | 700,030 | ||
Construction, Land Development and Other Land Loans [Member] | ||||
Loans | 54,396 | 67,048 | ||
Loans, allowance for loan losses | 517 | 628 | 393 | |
Secured by 1-4 Family Residential Properties [Member] | ||||
Loans | 88,426 | 72,727 | ||
Loans, allowance for loan losses | 832 | 690 | 639 | |
Secured By Multi family Residential Properties [Member] | ||||
Loans | 67,917 | 46,000 | ||
Loans, allowance for loan losses | 646 | 437 | 577 | |
Secured By Non-farm Non residential Properties [Member] | ||||
Loans | 199,965 | 197,901 | ||
Loans, allowance for loan losses | 1,970 | 1,958 | 1,566 | |
FUSB [Member] | ||||
Loans | 754,497 | 667,247 | ||
Less: Unearned interest, fees and deferred cost | 799 | (324) | ||
Loans, allowance for loan losses | 8,057 | 7,038 | ||
Net loans | 745,641 | 660,533 | ||
ALC [Member] | ||||
Loans | 20,625 | 43,697 | ||
Less: Unearned interest, fees and deferred cost | 450 | 2,918 | ||
Loans, allowance for loan losses | 1,365 | 1,282 | ||
Net loans | 18,810 | 39,497 | ||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||
Loans | 54,396 | 67,048 | ||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||
Loans | 88,426 | 72,727 | ||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||
Loans | 67,917 | 46,000 | ||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||
Loans | 199,965 | 197,901 | ||
Real Estate [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member] | ||||
Loans | 54,396 | 67,048 | ||
Real Estate [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||
Loans | 86,946 | 70,439 | ||
Real Estate [Member] | FUSB [Member] | Secured By Multi family Residential Properties [Member] | ||||
Loans | 67,917 | 46,000 | ||
Real Estate [Member] | FUSB [Member] | Secured By Non-farm Non residential Properties [Member] | ||||
Loans | 199,965 | 197,901 | ||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||
Loans | 1,480 | 2,288 | ||
Commercial and Industrial Loans and Leases [Member] | ||||
Loans | [1] | 73,561 | 73,947 | |
Commercial and Industrial Loans and Leases [Member] | FUSB [Member] | ||||
Loans | [1] | 73,561 | 73,947 | |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||
Loans | 10,053 | 21,689 | ||
Loans, allowance for loan losses | 866 | 1,004 | 1,202 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||
Loans | 14,237 | 25,692 | ||
Loans, allowance for loan losses | 518 | 304 | 373 | |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||||
Loans | 266,567 | 205,940 | ||
Loans, allowance for loan losses | 3,154 | 2,439 | $ 1,712 | |
Consumer Portfolio Segment [Member] | FUSB [Member] | Direct Consumer [Member] | ||||
Loans | 5,145 | 5,972 | ||
Consumer Portfolio Segment [Member] | FUSB [Member] | Indirect [Member] | ||||
Loans | 266,567 | 205,940 | ||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | ||||
Loans | 4,908 | 15,717 | ||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | ||||
Loans | $ 14,237 | $ 25,692 | ||
[1] Includes equipment financing leases and PPP loans. As of December 31, 2022 and 2021 , equipment financing leases totaled $ 10.3 million and $ 11.0 million, respectively. As of December 31, 2022 and 2021 , PPP loans totaled $ 6 thousand and $ 1.7 million, respectively. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan and Lease Losses - Schedule of Loan Portfolio (Parenthetical) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans | $ 775,122 | $ 710,944 |
Equipment Financing Leases [Member] | ||
Loans | 10,300 | 11,000 |
PPP Loans [Member] | ||
Loans | $ 6 | $ 1,700 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan and Lease Losses - Additional Information (Details) $ in Thousands | 12 Months Ended | ||||||||
Dec. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) Loan | Dec. 31, 2022 USD ($) DebtSecurityNumber | Dec. 31, 2022 USD ($) Contract | Dec. 31, 2021 USD ($) | Dec. 31, 2021 USD ($) Loan | Dec. 31, 2021 USD ($) DebtSecurityNumber | Dec. 31, 2021 USD ($) Contract | Dec. 31, 2020 USD ($) | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||
Loans and Leases Receivable, Related Parties, Ending Balance | $ 200 | $ 300 | |||||||
Loans and Leases Receivable, Related Parties, Additions | 0 | 0 | |||||||
Loans and Leases Receivable, Related Parties, Proceeds | 100 | 100 | |||||||
Loan, aggregate principal balance | 10,726 | $ 10,726 | $ 10,726 | $ 10,726 | 10,653 | $ 10,653 | $ 10,653 | $ 10,653 | |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 1,700 | 1,700 | 1,700 | 1,700 | 2,000 | 2,000 | 2,000 | 2,000 | |
Financing Receivable, Troubled Debt Restructuring | 100 | 100 | 100 | 100 | 100 | 100 | 100 | 100 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 60 | 52 | |||||||
Interest Income Recorded | 29 | $ 29 | $ 29 | 29 | 30 | $ 30 | $ 30 | 30 | |
Number of loans | 0 | 4 | 0 | 4 | |||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition | 0 | $ 0 | $ 0 | $ 0 | 0 | $ 0 | $ 0 | $ 0 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | Contract | 0 | 0 | |||||||
Loans, allowance for loan losses | 9,422 | 9,422 | 9,422 | $ 9,422 | 8,320 | 8,320 | 8,320 | $ 8,320 | $ 7,470 |
Pledged as Collateral [Member] | FHLB Borrowings [Member] | |||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||
Loans pledged as collateral | 68,200 | 68,200 | 68,200 | 68,200 | 66,600 | 66,600 | 66,600 | 66,600 | |
Restructured Loan Modified through Extended Maturity and Payment Schedule Modification [Member] | |||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||
Financing Receivable, Restructuring Recorded Investment With Nonaccrual Status | 500 | 500 | 500 | 500 | |||||
Loans, allowance for loan losses | 6 | 6 | 6 | 6 | $ 7 | $ 7 | $ 7 | $ 7 | |
Minimum [Member] | |||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||
Loans Modified in a Troubled Debt Restructuring, Individually Evaluated for Impairment, Principal Balance, Threshold | 500 | 500 | 500 | 500 | |||||
Minimum [Member] | ALC [Member] | |||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 50 | $ 50 | $ 50 | $ 50 | |||||
Real Estate [Member] | |||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||
Percentage of Loan Portfolio | 53% | 53% | 53% | 53% | 54% | 54% | 54% | 54% |
Loans and Allowance for Loan _6
Loans and Allowance for Loan and Lease Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Beginning balance | $ 8,320 | $ 7,470 |
Charge-offs | (3,013) | (2,131) |
Recoveries | 807 | 971 |
Provision | 3,308 | 2,010 |
Ending balance | 9,422 | 8,320 |
Individually evaluated for impairment | 259 | 67 |
Collectively evaluated for impairment | 9,163 | 8,253 |
Individually evaluated for impairment | 5,521 | 2,598 |
Collectively evaluated for impairment | 769,601 | 708,346 |
Loans | 775,122 | 710,944 |
Construction, Land Development and Other Land Loans [Member] | ||
Beginning balance | 628 | 393 |
Charge-offs | (23) | |
Recoveries | 2 | 22 |
Provision | (113) | 236 |
Ending balance | 517 | 628 |
Collectively evaluated for impairment | 517 | 628 |
Collectively evaluated for impairment | 54,396 | 67,048 |
Loans | 54,396 | 67,048 |
Secured by 1-4 Family Residential Properties [Member] | ||
Beginning balance | 690 | 639 |
Charge-offs | (40) | (12) |
Recoveries | 39 | 14 |
Provision | 143 | 49 |
Ending balance | 832 | 690 |
Individually evaluated for impairment | 7 | 10 |
Collectively evaluated for impairment | 825 | 680 |
Individually evaluated for impairment | 582 | 646 |
Collectively evaluated for impairment | 87,844 | 72,081 |
Loans | 88,426 | 72,727 |
Secured By Multi family Residential Properties [Member] | ||
Beginning balance | 437 | 577 |
Provision | 209 | (140) |
Ending balance | 646 | 437 |
Collectively evaluated for impairment | 646 | 437 |
Collectively evaluated for impairment | 67,917 | 46,000 |
Loans | 67,917 | 46,000 |
Secured By Non-farm Non residential Properties [Member] | ||
Beginning balance | 1,958 | 1,566 |
Recoveries | 5 | 5 |
Provision | 7 | 387 |
Ending balance | 1,970 | 1,958 |
Collectively evaluated for impairment | 1,970 | 1,958 |
Individually evaluated for impairment | 2,492 | 1,051 |
Collectively evaluated for impairment | 197,473 | 196,850 |
Loans | 199,965 | 197,901 |
Commercial and Industrial Loans [Member] | ||
Beginning balance | 860 | 1,008 |
Charge-offs | (6) | |
Recoveries | 0 | 21 |
Provision | 59 | (163) |
Ending balance | 919 | 860 |
Individually evaluated for impairment | 252 | 57 |
Collectively evaluated for impairment | 667 | 803 |
Individually evaluated for impairment | 2,429 | 880 |
Collectively evaluated for impairment | 71,132 | 73,067 |
Loans | 73,561 | 73,947 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Beginning balance | 1,004 | 1,202 |
Charge-offs | (1,958) | (1,230) |
Recoveries | 565 | 626 |
Provision | 1,255 | 406 |
Ending balance | 866 | 1,004 |
Collectively evaluated for impairment | 866 | 1,004 |
Individually evaluated for impairment | 18 | 21 |
Collectively evaluated for impairment | 10,035 | 21,668 |
Loans | 10,053 | 21,689 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Beginning balance | 304 | 373 |
Charge-offs | (633) | (377) |
Recoveries | 151 | 215 |
Provision | 696 | 93 |
Ending balance | 518 | 304 |
Collectively evaluated for impairment | 518 | 304 |
Collectively evaluated for impairment | 14,237 | 25,692 |
Loans | 14,237 | 25,692 |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Beginning balance | 2,439 | 1,712 |
Charge-offs | (382) | (483) |
Recoveries | 45 | 68 |
Provision | 1,052 | 1,142 |
Ending balance | 3,154 | 2,439 |
Collectively evaluated for impairment | 3,154 | 2,439 |
Collectively evaluated for impairment | 266,567 | 205,940 |
Loans | $ 266,567 | $ 205,940 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan and Lease Losses - Loans By Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 775,122 | $ 710,944 |
As a percentage of total loans | 100% | 100% |
Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 54,396 | $ 67,048 |
Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,917 | 46,000 |
Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 199,965 | 197,901 |
Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 88,426 | 72,727 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 54,396 | 67,048 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,917 | 46,000 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 199,965 | 197,901 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 88,426 | 72,727 |
Commercial and Industrial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 73,561 | 73,947 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 10,053 | 21,689 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 14,237 | 25,692 |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 266,567 | 205,940 |
FUSB [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 754,497 | 667,247 |
FUSB [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 389,641 | $ 372,059 |
As a percentage of total loans | 98.43% | 96.66% |
FUSB [Member] | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 651 | $ 10,303 |
As a percentage of total loans | 0.17% | 2.68% |
FUSB [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 5,547 | $ 2,534 |
As a percentage of total loans | 1.40% | 0.66% |
FUSB [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 395,839 | $ 384,896 |
As a percentage of total loans | 100% | 100% |
FUSB [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 54,396 | $ 67,048 |
FUSB [Member] | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,917 | 46,000 |
FUSB [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 199,965 | 197,901 |
FUSB [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 86,946 | 70,439 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 54,396 | 67,046 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,917 | 43,472 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 196,813 | 189,425 |
FUSB [Member] | Real Estate [Member] | Special Mention | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 2,528 | |
FUSB [Member] | Real Estate [Member] | Special Mention | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 651 | 7,442 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 2 | |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 2,501 | 1,034 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 54,396 | 67,048 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,917 | 46,000 |
FUSB [Member] | Real Estate [Member] | Pass And Criticized [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 199,965 | 197,901 |
FUSB [Member] | Commercial and Industrial Loans [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 70,515 | 72,116 |
FUSB [Member] | Commercial and Industrial Loans [Member] | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 333 | |
FUSB [Member] | Commercial and Industrial Loans [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 3,046 | 1,498 |
FUSB [Member] | Commercial and Industrial Loans [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 73,561 | 73,947 |
FUSB [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 5,145 | 5,972 |
FUSB [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 266,567 | 205,940 |
ALC [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 20,625 | 43,697 |
ALC [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 378,010 | $ 323,891 |
As a percentage of total loans | 99.66% | 99.34% |
ALC [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 1,273 | $ 2,157 |
As a percentage of total loans | 0.34% | 0.66% |
ALC [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 379,283 | $ 326,048 |
As a percentage of total loans | 100% | 100% |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 1,480 | $ 2,288 |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 87,302 | 71,526 |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,124 | 1,201 |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 88,426 | 72,727 |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 4,908 | 15,717 |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 10,007 | 20,939 |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 46 | 750 |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 10,053 | 21,689 |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 14,237 | 25,692 |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 14,205 | 25,486 |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 32 | 206 |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 14,237 | 25,692 |
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 266,496 | 205,940 |
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 71 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 266,567 | $ 205,940 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan and Lease Losses - Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loans | $ 775,122 | $ 710,944 |
As a percentage of total loans | 100% | 100% |
As a percentage of total loans, Total Past Due | 0.32% | 0.55% |
As a percentage of total loans, Current | 99.68% | 99.45% |
Construction, Land Development and Other Land Loans [Member] | ||
Loans | $ 54,396 | $ 67,048 |
Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 88,426 | 72,727 |
Secured By Multi family Residential Properties [Member] | ||
Loans | 67,917 | 46,000 |
Secured By Non-farm Non residential Properties [Member] | ||
Loans | 199,965 | $ 197,901 |
Financial Asset, 30 to 59 Days Past Due | ||
As a percentage of total loans | 0.27% | |
Financial Asset, 60 to 89 Days Past Due | ||
As a percentage of total loans | 0.11% | |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
As a percentage of total loans | 0.17% | |
Total Past Due | ||
Loans | 2,478 | $ 3,876 |
Current | ||
Loans | 772,644 | 707,068 |
ALC [Member] | ||
Loans | 20,625 | 43,697 |
ALC [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | $ 1,691 | 1,878 |
As a percentage of total loans | 0.21% | |
ALC [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | $ 276 | 808 |
As a percentage of total loans | 0.04% | |
ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | $ 511 | 1,190 |
As a percentage of total loans | 0.07% | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Loans | $ 54,396 | 67,048 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 88,426 | 72,727 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Loans | 67,917 | 46,000 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Loans | 199,965 | 197,901 |
Real Estate [Member] | Total Past Due | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 965 | 392 |
Real Estate [Member] | Total Past Due | Secured By Non-farm Non residential Properties [Member] | ||
Loans | 137 | 403 |
Real Estate [Member] | Current | Construction, Land Development and Other Land Loans [Member] | ||
Loans | 54,396 | 67,048 |
Real Estate [Member] | Current | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 87,461 | 72,335 |
Real Estate [Member] | Current | Secured By Multi family Residential Properties [Member] | ||
Loans | 67,917 | 46,000 |
Real Estate [Member] | Current | Secured By Non-farm Non residential Properties [Member] | ||
Loans | 199,828 | 197,498 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 1,480 | 2,288 |
Real Estate [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 800 | 349 |
Real Estate [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | Secured By Non-farm Non residential Properties [Member] | ||
Loans | 137 | 403 |
Real Estate [Member] | ALC [Member] | Financial Asset, 60 to 89 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 87 | 23 |
Real Estate [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 78 | 20 |
Commercial and Industrial Loans [Member] | ||
Loans | 73,561 | 73,947 |
Commercial and Industrial Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 234 | |
Commercial and Industrial Loans [Member] | Total Past Due | ||
Loans | 361 | 288 |
Commercial and Industrial Loans [Member] | Current | ||
Loans | 73,200 | 73,659 |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 61 | 54 |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 300 | |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Loans | 10,053 | 21,689 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Loans | 14,237 | 25,692 |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Loans | 266,567 | 205,940 |
Consumer Portfolio Segment [Member] | Total Past Due | Direct Consumer [Member] | ||
Loans | 329 | 1,971 |
Consumer Portfolio Segment [Member] | Total Past Due | Branch Retail [Member] | ||
Loans | 374 | 765 |
Consumer Portfolio Segment [Member] | Total Past Due | Indirect [Member] | ||
Loans | 312 | 57 |
Consumer Portfolio Segment [Member] | Current | Direct Consumer [Member] | ||
Loans | 9,724 | 19,718 |
Consumer Portfolio Segment [Member] | Current | Branch Retail [Member] | ||
Loans | 13,863 | 24,927 |
Consumer Portfolio Segment [Member] | Current | Indirect [Member] | ||
Loans | 266,255 | 205,883 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | ||
Loans | 4,908 | 15,717 |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | ||
Loans | 14,237 | 25,692 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | Direct Consumer [Member] | ||
Loans | 250 | 652 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | Branch Retail [Member] | ||
Loans | 257 | 377 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | Indirect [Member] | ||
Loans | 186 | 43 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, 60 to 89 Days Past Due | Direct Consumer [Member] | ||
Loans | 49 | 589 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, 60 to 89 Days Past Due | Branch Retail [Member] | ||
Loans | 85 | 182 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, 60 to 89 Days Past Due | Indirect [Member] | ||
Loans | 55 | 14 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | Direct Consumer [Member] | ||
Loans | 30 | 730 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | Branch Retail [Member] | ||
Loans | 32 | $ 206 |
Consumer Portfolio Segment [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | Indirect [Member] | ||
Loans | $ 71 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan and Lease Losses - Non-accruing Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Non-accruing loans | $ 1,651 | $ 2,008 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Non-accruing loans | 2 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Non-accruing loans | 914 | 780 |
Commercial and Industrial Loans [Member] | ||
Non-accruing loans | 605 | 277 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Non-accruing loans | 29 | 743 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Non-accruing loans | 32 | $ 206 |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Non-accruing loans | $ 71 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan and Lease Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impaired loans with no related allowance recorded, carrying amount | $ 5,154 | $ 2,525 |
Impaired loans with no related allowance recorded, unpaid principal balance | 5,154 | 2,525 |
Impaired loans, related allowances | 259 | 67 |
Impaired loans with an allowance recorded, carrying amount | 367 | 73 |
Impaired loans with an allowance recorded, unpaid principal balance | 367 | 73 |
Impaired loans, carrying amount | 5,521 | 2,598 |
Impaired loans, unpaid principal balance | 5,521 | 2,598 |
Impaired loans, average recorded investment | 3,528 | 3,809 |
Impaired loans, interest income recognized | 72 | 241 |
Impaired loans, interest income received | 60 | 181 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Impaired loans, average recorded investment | 87 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 568 | 630 |
Impaired loans with no related allowance recorded, unpaid principal balance | 568 | 630 |
Impaired loans, related allowances | 7 | 10 |
Impaired loans with an allowance recorded, carrying amount | 14 | 16 |
Impaired loans with an allowance recorded, unpaid principal balance | 14 | 16 |
Impaired loans, carrying amount | 582 | 646 |
Impaired loans, unpaid principal balance | 582 | 646 |
Impaired loans, average recorded investment | 614 | 773 |
Impaired loans, interest income recognized | 14 | 31 |
Impaired loans, interest income received | 6 | 31 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 2,492 | 1,051 |
Impaired loans with no related allowance recorded, unpaid principal balance | 2,492 | 1,051 |
Impaired loans, carrying amount | 2,492 | 1,051 |
Impaired loans, unpaid principal balance | 2,492 | 1,051 |
Impaired loans, average recorded investment | 1,529 | 2,377 |
Impaired loans, interest income recognized | 49 | 140 |
Impaired loans, interest income received | 48 | 108 |
Commercial and Industrial Loans [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 2,076 | 823 |
Impaired loans with no related allowance recorded, unpaid principal balance | 2,076 | 823 |
Impaired loans, related allowances | 252 | 57 |
Impaired loans with an allowance recorded, carrying amount | 353 | 880 |
Impaired loans with an allowance recorded, unpaid principal balance | 353 | 880 |
Impaired loans, carrying amount | 2,429 | 57 |
Impaired loans, unpaid principal balance | 2,429 | 57 |
Impaired loans, average recorded investment | 1,279 | 637 |
Impaired loans, interest income recognized | 8 | 61 |
Impaired loans, interest income received | 5 | 40 |
Direct Consumer [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 18 | |
Impaired loans with no related allowance recorded, unpaid principal balance | 18 | |
Impaired loans, related allowances | 0 | |
Impaired loans with an allowance recorded, carrying amount | 21 | |
Impaired loans with an allowance recorded, unpaid principal balance | 21 | |
Impaired loans, carrying amount | 18 | 21 |
Impaired loans, unpaid principal balance | 18 | 21 |
Impaired loans, average recorded investment | 19 | 22 |
Impaired loans, interest income recognized | 1 | 9 |
Impaired loans, interest income received | $ 1 | $ 2 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan and Lease Losses - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2022 Loan | Dec. 31, 2022 DebtSecurityNumber | Dec. 31, 2022 USD ($) | Dec. 31, 2021 Loan | Dec. 31, 2021 DebtSecurityNumber | Dec. 31, 2021 USD ($) | |
Number of loans | 0 | 4 | 0 | 4 | ||
Pre- Modification Outstanding Principal Balance | $ 715 | $ 715 | ||||
Post- Modification Principal Balance | 646 | 660 | ||||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Number of loans | DebtSecurityNumber | 1 | 1 | ||||
Pre- Modification Outstanding Principal Balance | 23 | 23 | ||||
Post- Modification Principal Balance | 12 | 12 | ||||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Number of loans | DebtSecurityNumber | 2 | 2 | ||||
Pre- Modification Outstanding Principal Balance | 621 | 621 | ||||
Post- Modification Principal Balance | 612 | 617 | ||||
Commercial and Industrial Loans [Member] | ||||||
Number of loans | DebtSecurityNumber | 1 | 1 | ||||
Pre- Modification Outstanding Principal Balance | 71 | 71 | ||||
Post- Modification Principal Balance | $ 22 | $ 31 |
Other Real Estate Owned and R_3
Other Real Estate Owned and Repossessed Assets - Summary of Foreclosed Property Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Other Real Estate [Abstract] | |||
Beginning balance | $ 2,149 | $ 949 | |
Additions | [1] | 411 | 1,981 |
Sales proceeds | (2,232) | (1,205) | |
Gross gains | 386 | 491 | |
Gross losses | (27) | ||
Net gains | 359 | 491 | |
Impairment | (1) | (67) | |
Ending balance | $ 686 | $ 2,149 | |
[1] Additions to other real estate owned (“OREO”) include transfers from loans, transfers from closed Bank and ALC branches, and capitalized improvements to existing OREO properties. |
Other Real Estate Owned and R_4
Other Real Estate Owned and Repossessed Assets - Additional Information (Details) - USD ($) | Dec. 31, 2022 | Dec. 31, 2021 |
Other Real Estate [Abstract] | ||
Foreclosed real estate owned, fair value less disposal costs | $ 20,000 | $ 151,000 |
Mortgage loans in process of foreclosure, amount | $ 0 | $ 0 |
Other Real Estate Owned and R_5
Other Real Estate Owned and Repossessed Assets - Summary of Repossessed Assets Activity (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Sales proceeds | $ (2,232) | $ (1,205) |
Gross gains | 386 | 491 |
Gross losses | (27) | |
Net gains | 359 | 491 |
Impairment | (1) | (67) |
Repossessed Assets [Member] | ||
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Beginning balance | 154 | 245 |
Transfers from loans | 887 | 803 |
Sales proceeds | (506) | (798) |
Gross losses | (452) | (96) |
Net gains | (452) | (96) |
Ending balance | $ 83 | $ 154 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, Ending Balance | $ 7,435 | $ 7,435 | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 366 | $ 634 | |
Core Deposits [Member] | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Finite-lived intangible asset, useful life | 7 years | ||
Finite-Lived Intangible Assets, Net, Ending Balance | $ 2,000 | ||
The Peoples Bank [Member] | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, Ending Balance | $ 7,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 7,435 | $ 7,435 |
Gross carrying amount | 2,048 | 2,048 |
Accumulated amortization | (1,682) | (1,414) |
Core deposit intangible, net | 366 | 634 |
Total | $ 7,801 | $ 8,069 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2023 | $ 195 | |
2024 | 122 | |
2025 | 49 | |
Core deposit intangible, net | $ 366 | $ 634 |
Premises and Equipment - Summar
Premises and Equipment - Summary of Premises and Equipment and Applicable Depreciable Lives (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 46,062 | $ 47,039 |
Less accumulated depreciation | (21,623) | (21,916) |
Total premises and equipment, net | 24,439 | 25,123 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 5,390 | 5,486 |
Premises [Member] | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | 24,880 | 25,924 |
Furniture, Fixtures and Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Premises and equipment, gross | $ 15,792 | $ 15,629 |
Premises and Equipment - Summ_2
Premises and Equipment - Summary of Premises and Equipment and Applicable Depreciable Lives (Details) (Parenthetical) | 12 Months Ended |
Dec. 31, 2022 | |
Premises [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives for all premises and equipment (Year) | 40 years |
Maximum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives for all premises and equipment (Year) | 7 years |
Minimum [Member] | Furniture, Fixtures and Equipment [Member] | |
Property Plant And Equipment [Line Items] | |
Useful lives for all premises and equipment (Year) | 3 years |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation expense | $ 1,614 | $ 1,692 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of the Bank's Time Deposits (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Disclosure Text Block [Abstract] | |
2023 | $ 115,494 |
2024 | 56,104 |
2025 | 63,576 |
2026 | 13,274 |
2027 | 4,264 |
Total | $ 252,712 |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Disclosure Text Block [Abstract] | ||
Time Deposits, at or Above FDIC Insurance Limit | $ 29.5 | $ 31 |
Brokered Certificates of Deposit | 62.5 | 32 |
Related Party Deposit Liabilities | $ 4.1 | $ 4.2 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Oct. 01, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Short Term Debt [Line Items] | |||
Federal Funds Purchased | $ 0 | $ 0 | |
Securities Sold under Agreements to Repurchase, Total | 38,000 | 46,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months, Total | 20,000,000 | 10,000,000 | |
Long-term Federal Home Loan Bank advances | 0 | 0 | |
Long-Term Debt | $ 10,726,000 | 10,653,000 | |
Subordinated Debt [Member] | |||
Short Term Debt [Line Items] | |||
Maturity date | Oct. 01, 2031 | ||
Interest rate, description | The Notes bear interest at a rate of 3.50% per annum for the first five years; then the interest rate will be reset quarterly to a benchmark interest rate per annum which, subject to certain conditions provided in the Notes, will be equal to the then current three-month term Secured Overnight Financing Rate (“SOFR”) plus 275 basis points. | ||
Variable rate, description | three-month term Secured Overnight Financing Rate (“SOFR”) plus 275 basis points | ||
Loan, fixed interest rate | 3.50% | ||
Variable interest rate | 2.75% | ||
Investment into capital surplus | $ 5,000,000 | ||
Long-Term Debt | $ 10,726,000 | $ 10,653,000 | |
Private Placement [Member] | Subordinated Debt [Member] | |||
Short Term Debt [Line Items] | |||
Principal amount | $ 11,000,000 | ||
Minimum [Member] | |||
Short Term Debt [Line Items] | |||
Maturity Period of Federal Funds | 1 day | ||
Maximum [Member] | |||
Short Term Debt [Line Items] | |||
Maturity Period of Federal Funds | 4 days |
Borrowings - Summary of Long-Te
Borrowings - Summary of Long-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | ||
Beginning balance | $ 10,653 | |
Ending balance | 10,726 | $ 10,653 |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Beginning balance | 10,653 | |
Average balance during the year | 10,689 | 2,682 |
Ending balance | $ 10,726 | $ 10,653 |
Average rate paid during the year, including amortization of debt issuance costs | 4.20% | 4.20% |
Weighted average remaining maturity (in years) | 8 years 9 months | 9 years 9 months |
Borrowings - Schedule of Availa
Borrowings - Schedule of Available Unused Lines of Credit (Details) - Unused lines of Credit [Member] - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Correspondent Banks [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | None | ||
Available lines of credit | $ 45 | $ 45 | |
Federal Reserve (Discount Window) [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | Subject to collateral | ||
Available lines of credit | $ 15 | 15 | |
FHLB Advances [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | [1] | Subject to collateral | |
Available lines of credit | [1] | $ 246.8 | $ 237 |
[1] These amounts represent the total remaining credit the Company has from the FHLB, but this credit can only be utilized to the extent that underlying collateral exists. Assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 68.2 million and $ 66.6 million as of December 31, 2022 and 2021, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 50.0 million and $ 40.0 million as of December 31, 2022 and 2021, respectively, leaving an excess of collateral of $ 18.2 million and $ 26.6 million available to utilize for additional credit as of the respective dates. |
Borrowings - Schedule of Avai_2
Borrowings - Schedule of Available Unused Lines of Credit (Parenthetical) (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | $ 68.2 | $ 66.6 |
Collateral exposure with FHLB in form of advances | 50 | 40 |
Collateral pledged in excess available to utilize additional credit | $ 18.2 | $ 26.6 |
Income Taxes - Consolidated Pro
Income Taxes - Consolidated Provision for Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Federal | ||||||||||
Current | $ 2,025 | $ 1,522 | ||||||||
Deferred | (291) | (527) | ||||||||
Total federal | 1,734 | 995 | ||||||||
State | ||||||||||
Current | 490 | 154 | ||||||||
Deferred | (76) | 126 | ||||||||
Total state | 414 | 280 | ||||||||
Total | $ 708 | $ 546 | $ 494 | $ 400 | $ 507 | $ 229 | $ 271 | $ 268 | $ 2,148 | $ 1,275 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 21% | 21% |
Open Tax Year | 2014 2015 2016 2017 2018 2019 2020 2021 2022 | |
Unrecognized Tax Benefits, Ending Balance | $ 0 | |
Unrecognized Tax Benefits, Period Increase (Decrease), Total | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Total | 0 | |
Unrecognized Tax Benefits, Income Tax Penalties Accrued | 0 | |
Federal [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | 0 | $ 0 |
State [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Net operating loss carryforwards | $ 0 | $ 0 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||||||||||
Income tax expense at federal statutory rate | $ 1,892 | $ 1,202 | ||||||||
Increase (decrease) resulting from: | ||||||||||
Tax-exempt interest | (76) | (88) | ||||||||
Bank-owned life insurance | (62) | (62) | ||||||||
State income tax expense, net of federal income taxes | 329 | 169 | ||||||||
Other | 65 | 54 | ||||||||
Total | $ 708 | $ 546 | $ 494 | $ 400 | $ 507 | $ 229 | $ 271 | $ 268 | $ 2,148 | $ 1,275 |
Income Taxes - Effects of Tempo
Income Taxes - Effects of Temporary Differences of Deferred Tax Assets and Deferred Tax Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,333 | $ 2,065 |
Deferred compensation | 895 | 947 |
Deferred commissions and fees | 407 | 243 |
Unrealized loss on securities available-for-sale | 2,715 | |
Unrealized loss on cash flow hedges | 144 | |
Other | 905 | 862 |
Total gross deferred tax assets | 7,255 | 4,261 |
Deferred tax liabilities: | ||
Premises and equipment | 1,288 | 1,248 |
Core deposit intangible | 91 | 158 |
Limited partnerships | 94 | 87 |
Unrealized gain on securities available-for-sale | 52 | |
Unrealized gain on cash flow hedges | 301 | |
Other | 341 | 266 |
Total gross deferred tax liabilities | 2,115 | 1,811 |
Net deferred tax asset, included in other assets | $ 5,140 | $ 2,450 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Defined Contribution Plan, Employer Matching Contribution, Percent of Match | 100% | 100% |
Defined Contribution Plan, Discretionary Contribution Percent | 2% | |
Defined Contribution Plan, Employer Discretionary Contribution Amount | $ 0.4 | $ 0.5 |
Defined Contribution Plan, Maximum Annual Contributions Per Employee, Percent | 20% | |
Defined Benefit Plan, Plan Assets, Employer, Related Party, Number of Shares | 184,987 | 238,514 |
Maximum [Member] | ||
Defined Contribution Plan, Employer Matching Contribution, Percent of Employees' Gross Pay | 4% |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 114,190 | 117,825 |
Other Liabilities [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Liability, Current and Noncurrent, Total | $ 3.1 | $ 3.2 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted (in shares) | 0 | 0 |
Share-based compensation arrangement by share-based payment award, options, outstanding, intrinsic value | $ 0.1 | $ 0.6 |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based payment arrangement, expense | $ 0.4 | $ 0.3 |
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, weighted average remaining contractual term | 10 years | |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Restricted Stock [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 45,935 | 38,430 |
Restricted Stock [Member] | Omnibus Incentive Plan [Member] | Employees [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Restricted Stock [Member] | Omnibus Incentive Plan [Member] | Non-employee Directors [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year |
Stock Awards - Stock Option Act
Stock Awards - Stock Option Activity (Details) - $ / shares | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of year (in shares) | 420,250 | 421,000 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | 750 |
Forfeited (in shares) | 600 | 0 |
Options outstanding, end of year (in shares) | 419,650 | 420,250 |
Options exercisable, end of year (in shares) | 416,249 | 395,678 |
Outstanding, beginning of year, average exercise price (in dollars per share) | $ 9.79 | $ 9.79 |
Granted, average exercise price (in dollars per share) | 0 | 0 |
Exercised, average exercise price (in dollars per share) | 0 | 8.23 |
Forfeited, average exercise price (in dollars per share) | 10.86 | 0 |
Options outstanding, end of year, average exercise price (in dollars per share) | 9.79 | 9.79 |
Options exercisable, end of year, average exercise price (in dollars per share) | $ 9.77 | $ 9.74 |
Shareholder's Equity - Addition
Shareholder's Equity - Additional Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity [Abstract] | ||
Common Stock, Dividends, Per Share, Declared | $ 0.14 | $ 0.12 |
Dividends, Common Stock, Total | $ 832 | $ 745 |
Capital conservation buffer | 2.50% | |
Dividend payment restrictions schedule, description | Under Alabama law, a state-chartered bank must annually transfer to surplus at least 10% of its “net earnings” (defined as the remainder of all earnings from current operations plus actual recoveries on loans and investments and other assets, less all current operating expenses, actual losses, accrued dividends on preferred stock and all federal, state and local taxes) until the bank’s surplus is at least 20% of its capital. Until the bank’s surplus reaches this level, a bank may not declare a dividend in excess of 90% of its net earnings. Once a bank’s surplus equals or exceeds 20% of its capital, if the total of all dividends declared by the bank in a calendar year will exceed the sum of its net earnings for that year and its retained net earnings for the preceding two years (less any required transfers to surplus), then the bank must obtain prior written approval from the Superintendent of the Alabama State Banking Department. The bank may not pay any dividends or make any withdrawals or transfers from surplus without the prior written approval of the Superintendent. The FDIC prohibits the payment of cash dividends if (1) as a result of such payment, the bank would be undercapitalized or (2) the bank is in default with respect to any assessment due to the FDIC, including a deposit insurance assessment. These restrictions could materially influence the Bank’s, and therefore Bancshares’, ability to pay dividends. |
Shareholder's Equity - Summary
Shareholder's Equity - Summary of Actual Capital Amount and Well Capitalized Total Risk-Based, Tier I Risk-Based, and Tier I Leverage Ratios (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Equity [Abstract] | ||
Common equity Tier 1 capital (to risk-weighted assets), Actual Regulatory Capital, Amount | $ 92,853 | $ 87,379 |
Tier 1 capital (to risk-weighted assets) Actual Regulatory Capital, Amount | 92,853 | 87,379 |
Total capital (to risk-weighted assets), Actual Regulatory Capital, Amount | 102,275 | 95,699 |
Tier 1 capital (to risk-weighted assets), Actual Regulatory Capital, Amount | $ 92,853 | $ 87,379 |
Common equity Tier 1 capital (to risk-weighted assets), Actual Regulatory Capital, Ratio | 0.1107 | 0.1136 |
Tier 1 capital (to risk-weighted assets), Actual Regulatory Capital, Ratio | 0.1107 | 0.1136 |
Total capital (to risk-weighted assets), Actual Regulatory Capital, Ratio | 0.1219 | 0.1244 |
Tier 1 leverage (to average assets), Actual Regulatory Capital, Ratio | 0.0939 | 0.0917 |
Common equity Tier 1 capital (to risk-weighted assets), Minimum Requirement | 7% | 7% |
Tier 1 capital (to risk-weighted assets), Minimum Requirement | 0.0850 | 0.0850 |
Total capital (to risk-weighted assets), Minimum Requirement | 0.1050 | 0.1050 |
Tier 1 leverage (to average assets), Minimum Requirement | 0.0400 | 0.0400 |
Common equity Tier 1 capital (to risk-weighted assets), To Be Well Capitalized | 6.50% | 6.50% |
Tier 1 capital (to risk-weighted assets), To Be Well Capitalized | 0.0800 | 0.0800 |
Total capital (to risk-weighted assets), To Be Well Capitalized | 0.1000 | 0.1000 |
Tier 1 leverage (to average assets), To Be Well Capitalized | 0.0500 | 0.0500 |
Leases - Additional Information
Leases - Additional Information (Details) | 12 Months Ended |
Dec. 31, 2022 | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 5 years |
Lessee, Operating Lease, Period of Option to Terminate | 1 year |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Remaining Term of Contract | 2 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Remaining Term of Contract | 6 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Leases [Abstract] | |||
Operating lease expense | [1] | $ 434 | $ 999 |
Operating lease income | [2] | 864 | 830 |
Operating lease right-of-use assets | 1,883 | 2,245 | |
Operating lease liabilities | $ 1,961 | $ 2,317 | |
Weighted-average remaining lease term (in years) | 5 years 10 days | 5 years 10 months 24 days | |
Weighted-average discount rate | 3.30% | 3.29% | |
Operating cash flows from operating leases | $ 427 | $ 859 | |
[1] Includes short-term lease costs. For the years ended December 31, 2022 and 2021 , short-term lease costs were nominal in amount. Operating lease income includes rental income from owned properties. |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
2023 | $ 432 | |
2024 | 438 | |
2025 | 339 | |
2026 | 346 | |
2027 | 353 | |
2028 and thereafter | 238 | |
Total future minimum lease payments | 2,146 | |
Less: Imputed interest | 185 | |
Total | $ 1,961 | $ 2,317 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Jan. 01, 2023 USD ($) Contract | Jun. 30, 2022 USD ($) | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Subsequent Event [Member] | ||||
Derivative [Line Items] | ||||
Derivative instruments, gain reclassified from accumulated oci into income, effective portion | $ 2,200,000 | |||
Number of interest rate swap contracts terminated | Contract | 4 | |||
Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative instruments, gain reclassified from accumulated oci into income, effective portion | $ 300,000 | |||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net | $ 70,000 | $ 0 | ||
Fair Value Hedging [Member] | Forward Interest Rate Swap Contracts [Member] | ||||
Derivative [Line Items] | ||||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Notional Amount and Fair Value of Derivative Instruments Included on Company's Consolidated Balance Sheets on a net Basis (Details) - Derivatives Designated as Hedging Instruments [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Dec. 31, 2021 | ||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | [1] | $ 2,306 | $ (774) |
Fair Value Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | [1] | 1,101 | (198) |
Fair Value Hedging [Member] | Interest Rate Swaps Related to Fixed Rate Commercial Real Estate Loans [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 20,000 | 20,000 | |
Estimated Fair Value Gain (Loss) | [1] | 1,101 | (198) |
Cash Flow Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | [1] | 1,205 | (576) |
Cash Flow Hedging [Member] | Interest Rate Swaps Related to Variable-Rate Money Market Deposit Accounts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 20,000 | 20,000 | |
Estimated Fair Value Gain (Loss) | [1] | $ 1,205 | (472) |
Cash Flow Hedging [Member] | Interest Rate Swaps Related to FHLB Advances [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 10,000 | ||
Estimated Fair Value Gain (Loss) | [1] | $ (104) | |
[1] Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Details) $ in Thousands | Dec. 31, 2022 USD ($) | [1] |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Carrying Amount of the Hedged Assets | $ 32,233 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ 1,101 | |
[1] These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of December 31, 2022, the amortized cost basis of the closed portfolios used in these hedging relationships was $ 33.3 million, the cumulative basis adjustments associated with these hedging relationships were $ 1.1 million, and the amounts of the designated hedged items were $ 20 million. |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Cumulative Basis Adjustments for Fair Value Hedges (Parenthetical) (Details) $ in Millions | Dec. 31, 2022 USD ($) |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Amortized cost basis of closed portfolios used in hedging relationships | $ 33.3 |
Cumulative basis adjustments associated with hedging relationships | 1.1 |
Designated hedged items | $ 20 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedging Derivative Instruments' Effect on Company's Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and Fees on Loans [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | $ 75 | $ (253) |
Interest on Deposits [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | 56 | (127) |
Interest on Short-Term Borrowings [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | (5) | (333) |
Net Increase (Decrease) to Income Before Income Taxes [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | $ 126 | $ (713) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended | 12 Months Ended | |
Sep. 03, 2021 Branch | Sep. 30, 2021 Branch | Dec. 31, 2022 Segment | |
Segment Reporting Information [Line Items] | |||
Number of reportable segments | Segment | 2 | ||
ALC [Member] | |||
Segment Reporting Information [Line Items] | |||
Number of office closed | Branch | 20 | 20 |
Segment Reporting - Results for
Segment Reporting - Results for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total interest income | $ 11,621 | $ 10,670 | $ 9,525 | $ 9,381 | $ 9,987 | $ 10,030 | $ 10,059 | $ 9,845 | $ 41,197 | $ 39,921 |
Total interest expense | 1,730 | 1,155 | 699 | 672 | 727 | 695 | 747 | 781 | 4,256 | 2,950 |
Net interest income | 9,891 | 9,515 | 8,826 | 8,709 | 9,260 | 9,335 | 9,312 | 9,064 | 36,941 | 36,971 |
Provision | 3,308 | 2,010 | ||||||||
Net interest income after provision for loan and lease losses | 9,364 | 8,350 | 7,931 | 7,988 | 8,767 | 8,717 | 8,814 | 8,663 | 33,633 | 34,961 |
Total non-interest income | 678 | 1,088 | 856 | 829 | 865 | 896 | 809 | 951 | 3,451 | 3,521 |
Total non-interest expense | 7,106 | 7,032 | 6,878 | 7,056 | 7,414 | 8,547 | 8,399 | 8,396 | 28,072 | 32,756 |
Income before income taxes | 2,936 | 2,406 | 1,909 | 1,761 | 2,218 | 1,066 | 1,224 | 1,218 | 9,012 | 5,726 |
Provision for income taxes | 708 | 546 | 494 | 400 | 507 | 229 | 271 | 268 | 2,148 | 1,275 |
Net income (loss) | 2,228 | $ 1,860 | $ 1,415 | $ 1,361 | 1,711 | $ 837 | $ 953 | $ 950 | 6,864 | 4,451 |
Total assets | 994,667 | 958,302 | 994,667 | 958,302 | ||||||
Total investment securities | 132,657 | 134,319 | 132,657 | 134,319 | ||||||
Total loans, net | 764,451 | 700,030 | 764,451 | 700,030 | ||||||
Goodwill and core deposit intangible, net | 7,801 | 8,069 | 7,801 | 8,069 | ||||||
Fixed asset additions | 1,262 | 822 | ||||||||
Depreciation and amortization expense | 1,614 | 1,692 | ||||||||
Total interest income from external customers | 41,197 | 39,921 | ||||||||
Intersegment Eliminations [Member] | ||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total interest income | (1,034) | (1,642) | ||||||||
Total interest expense | (1,034) | (1,642) | ||||||||
Total non-interest income | (8,379) | (5,958) | ||||||||
Total non-interest expense | (195) | (452) | ||||||||
Income before income taxes | (8,184) | (5,506) | ||||||||
Net income (loss) | (8,184) | (5,506) | ||||||||
Total assets | (124,904) | (150,441) | (124,904) | (150,441) | ||||||
Total loans, net | (18,300) | (39,069) | (18,300) | (39,069) | ||||||
Investment in subsidiaries | (93,414) | (95,172) | (93,414) | (95,172) | ||||||
Total interest income from affiliates | (1,034) | (1,642) | ||||||||
FUSB [Member] | ||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total loans, net | 745,641 | 660,533 | 745,641 | 660,533 | ||||||
FUSB [Member] | Operating Segments [Member] | ||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total interest income | 37,510 | 32,537 | ||||||||
Total interest expense | 3,803 | 2,842 | ||||||||
Net interest income | 33,707 | 29,695 | ||||||||
Provision | 1,338 | 1,515 | ||||||||
Net interest income after provision for loan and lease losses | 32,369 | 28,180 | ||||||||
Total non-interest income | 3,535 | 3,206 | ||||||||
Total non-interest expense | 25,278 | 25,188 | ||||||||
Income before income taxes | 10,626 | 6,198 | ||||||||
Provision for income taxes | 2,475 | 1,305 | ||||||||
Net income (loss) | 8,151 | 4,893 | ||||||||
Total assets | 998,727 | 961,572 | 998,727 | 961,572 | ||||||
Total investment securities | 132,657 | 134,238 | 132,657 | 134,238 | ||||||
Total loans, net | 763,941 | 699,600 | 763,941 | 699,600 | ||||||
Goodwill and core deposit intangible, net | 7,801 | 8,069 | 7,801 | 8,069 | ||||||
Fixed asset additions | 1,262 | 816 | ||||||||
Depreciation and amortization expense | 1,579 | 1,613 | ||||||||
Total interest income from external customers | 36,481 | 30,902 | ||||||||
Total interest income from affiliates | 1,029 | 1,635 | ||||||||
ALC [Member] | ||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total loans, net | 18,810 | 39,497 | 18,810 | 39,497 | ||||||
ALC [Member] | Operating Segments [Member] | ||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total interest income | 4,716 | 9,019 | ||||||||
Total interest expense | 1,029 | 1,635 | ||||||||
Net interest income | 3,687 | 7,384 | ||||||||
Provision | 1,970 | 495 | ||||||||
Net interest income after provision for loan and lease losses | 1,717 | 6,889 | ||||||||
Total non-interest income | 204 | 576 | ||||||||
Total non-interest expense | 1,751 | 6,599 | ||||||||
Income before income taxes | 170 | 866 | ||||||||
Provision for income taxes | 45 | 221 | ||||||||
Net income (loss) | 125 | 645 | ||||||||
Total assets | 19,772 | 40,924 | 19,772 | 40,924 | ||||||
Total loans, net | 18,810 | 39,499 | 18,810 | 39,499 | ||||||
Fixed asset additions | 6 | |||||||||
Depreciation and amortization expense | 35 | 79 | ||||||||
Total interest income from external customers | 4,716 | 9,019 | ||||||||
Other Segments [Member] | Operating Segments [Member] | ||||||||||
Segment Reporting Revenue Reconciling Item [Line Items] | ||||||||||
Total interest income | 5 | 7 | ||||||||
Total interest expense | 458 | 115 | ||||||||
Net interest income | (453) | (108) | ||||||||
Net interest income after provision for loan and lease losses | (453) | (108) | ||||||||
Total non-interest income | 8,091 | 5,697 | ||||||||
Total non-interest expense | 1,238 | 1,421 | ||||||||
Income before income taxes | 6,400 | 4,168 | ||||||||
Provision for income taxes | (372) | (251) | ||||||||
Net income (loss) | 6,772 | 4,419 | ||||||||
Total assets | 101,072 | 106,247 | 101,072 | 106,247 | ||||||
Total investment securities | 81 | 81 | ||||||||
Investment in subsidiaries | $ 93,414 | $ 95,172 | 93,414 | 95,172 | ||||||
Total interest income from affiliates | $ 5 | $ 7 |
Other Operating Income and Ex_3
Other Operating Income and Expense - Other Operating Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Other Income and Expenses [Abstract] | ||
Bank-owned life insurance | $ 451 | $ 439 |
Credit insurance commissions and fees | (93) | 192 |
ATM fee income | 532 | 577 |
Mortgage fees from secondary market | 17 | 23 |
Wire transfer fees | 52 | 64 |
Gain on sales of premises and equipment and other assets | 301 | 19 |
Other income | 256 | 286 |
Total | $ 1,516 | $ 1,600 |
Other Operating Income and Ex_4
Other Operating Income and Expense - Other Operating Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Postage, stationery and supplies | $ 614 | $ 802 |
Telephone/data communication | 682 | 903 |
Advertising and marketing | 189 | 167 |
Travel and business development | 225 | 147 |
Collection and recoveries | 261 | 168 |
Other services | 323 | 322 |
Insurance expense | 566 | 635 |
FDIC insurance and state assessments | 684 | 726 |
Loss on sales of premises and equipment and other assets | 69 | 150 |
Amortization of intangible assets | 268 | 341 |
Other real estate/foreclosure expense, net | (331) | (371) |
Other expense | 2,124 | 2,114 |
Total | 5,674 | 6,104 |
Core Deposits [Member] | ||
Amortization of intangible assets | $ 268 | $ 341 |
Guarantees, Commitments and C_3
Guarantees, Commitments and Contingencies - Additional Information (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | ||
Credit losses associated with derivative contracts | $ 0 | $ 0 |
Securities Committed to Sell Amount | 0 | 0 |
Self Insurance Reserve | $ 200,000 | $ 200,000 |
Guarantees, Commitments and C_4
Guarantees, Commitments and Contingencies - Summary of Commitment and Contingent Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Standby Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 0 | $ 0 |
Standby Performance Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | 556 | 582 |
Commitments to Extend Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 186,169 | $ 164,247 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 130,795 | $ 130,883 |
Residential Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 43,957 | 46,228 |
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 43,957 | 46,228 |
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 43,957 | 46,228 |
Commercial Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 11,693 | 24,971 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 11,693 | 24,971 |
Commercial Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 11,693 | 24,971 |
US Government Agencies Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 4,270 | 5,192 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 4,270 | 5,192 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 4,270 | 5,182 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 10 | |
US States and Political Subdivisions Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 2,072 | 4,317 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 2,072 | 4,317 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 2,072 | 4,317 |
Corporate Note Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 15,921 | 15,482 |
Corporate Note Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 15,921 | 15,482 |
Corporate Note Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 14,921 | 15,482 |
Corporate Note Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 1,000 | |
US Treasury Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 52,882 | 34,693 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 52,882 | 34,693 |
US Treasury Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 52,882 | 34,693 |
Other Assets [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 2,306 | |
Other Assets [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 2,306 | |
Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 774 | |
Other Liabilities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 774 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 108 | |
OREO and other assets held-for-sale | 686 | |
Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 108 | $ 6 |
OREO and other assets held-for-sale | 686 | 2,149 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 108 | 6 |
OREO and other assets held-for-sale | $ 686 | $ 2,149 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | $ 108 |
OREO and other assets held-for-sale | $ 686 |
Minimum [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 9 |
OREO and other assets held-for-sale | 9 |
Maximum [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 10 |
OREO and other assets held-for-sale | 10 |
Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 9.5 |
OREO and other assets held-for-sale | 9.5 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Estimated Fair Value and Related Carrying or Notional Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets: | ||
Investment securities available-for-sale | $ 130,795 | $ 130,883 |
Investment securities held-to-maturity | 1,769 | 3,477 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 30,152 | 61,244 |
Investment securities available-for-sale | 130,795 | 130,883 |
Investment securities held-to-maturity | 1,862 | 3,436 |
Federal funds sold | 1,768 | 82 |
Federal Home Loan Bank stock | 1,359 | 870 |
Loans, net of allowance for loan losses | 764,451 | 700,030 |
Liabilities: | ||
Deposits | 870,025 | 838,126 |
Short-term borrowings | 20,038 | 10,046 |
Long-term borrowings | 10,726 | 10,653 |
Other liabilities - derivatives | 2,306 | 774 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 30,152 | 61,244 |
Investment securities available-for-sale | 130,795 | 130,883 |
Investment securities held-to-maturity | 1,769 | 3,477 |
Federal funds sold | 1,768 | 82 |
Federal Home Loan Bank stock | 1,359 | 870 |
Loans, net of allowance for loan losses | 730,961 | 694,744 |
Liabilities: | ||
Deposits | 788,161 | 837,439 |
Short-term borrowings | 20,038 | 10,046 |
Long-term borrowings | 9,702 | 10,804 |
Other liabilities - derivatives | 2,306 | 774 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 30,152 | 61,244 |
Investment securities available-for-sale | 52,882 | 34,612 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 76,913 | 96,260 |
Investment securities held-to-maturity | 1,769 | 3,477 |
Federal funds sold | 1,768 | 82 |
Liabilities: | ||
Deposits | 788,161 | 837,439 |
Short-term borrowings | 20,038 | 10,046 |
Long-term borrowings | 9,702 | 10,804 |
Other liabilities - derivatives | 2,306 | 774 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 1,000 | 11 |
Federal Home Loan Bank stock | 1,359 | 870 |
Loans, net of allowance for loan losses | $ 730,961 | $ 694,744 |
First US Bancshares, Inc. (Pa_3
First US Bancshares, Inc. (Parent Company Only) Financial Information - Statements of Balance Sheet (Detail) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Cash on deposit | $ 30,152 | $ 61,244 | |
Other assets | 11,944 | 7,719 | |
Total assets | 994,667 | 958,302 | |
Other liabilities | 8,136 | 9,189 | |
Long-term borrowings | 10,726 | 10,653 | |
Shareholders’ equity | 85,135 | 90,064 | $ 86,678 |
Total liabilities and shareholders’ equity | 994,667 | 958,302 | |
FUSB [Member] | |||
Cash on deposit | 2,855 | 5,890 | |
Investment in subsidiaries | 93,414 | 95,172 | |
Other assets | 78 | 83 | |
Total assets | 96,347 | 101,145 | |
Other liabilities | 485 | 428 | |
Long-term borrowings | 10,726 | 10,653 | |
Shareholders’ equity | 85,136 | 90,064 | |
Total liabilities and shareholders’ equity | $ 96,347 | $ 101,145 |
First US Bancshares, Inc. (Pa_4
First US Bancshares, Inc. (Parent Company Only) Financial Information - Statements of Operations (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Income: | ||||||||||
Expense | $ 5,674 | $ 6,104 | ||||||||
Net income (loss) | $ 2,228 | $ 1,860 | $ 1,415 | $ 1,361 | $ 1,711 | $ 837 | $ 953 | $ 950 | 6,864 | 4,451 |
FUSB [Member] | ||||||||||
Income: | ||||||||||
Dividend income, First US Bank | 3,463 | 1,570 | ||||||||
Total income | 3,463 | 1,570 | ||||||||
Expense | 1,320 | 1,055 | ||||||||
Gain before equity in undistributed income of subsidiaries | 2,143 | 515 | ||||||||
Equity in undistributed income of subsidiaries | 4,721 | 3,936 | ||||||||
Net income (loss) | $ 6,864 | $ 4,451 |
First US Bancshares, Inc. (Pa_5
First US Bancshares, Inc. (Parent Company Only) Financial Information - Statements of Cash Flow (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities: | ||||||||||
Net income | $ 2,228 | $ 1,860 | $ 1,415 | $ 1,361 | $ 1,711 | $ 837 | $ 953 | $ 950 | $ 6,864 | $ 4,451 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Net cash provided by operating activities | 12,529 | 9,825 | ||||||||
Cash flows from investing activities: | ||||||||||
Net cash used in investing activities | (80,199) | (108,315) | ||||||||
Cash flows from financing activities: | ||||||||||
Net proceeds from long-term borrowings | 10,653 | |||||||||
Net share-based compensation transactions | (7) | |||||||||
Dividends paid | (832) | (745) | ||||||||
Treasury stock repurchases | (4,481) | (525) | ||||||||
Net cash provided by financing activities | 36,578 | 65,319 | ||||||||
Net decrease in cash and cash equivalents | (31,092) | (33,171) | ||||||||
Cash and cash equivalents, beginning of period | 61,244 | 94,415 | 61,244 | 94,415 | ||||||
Cash and cash equivalents, end of period | 30,152 | 61,244 | 30,152 | 61,244 | ||||||
FUSB [Member] | ||||||||||
Cash flows from operating activities: | ||||||||||
Net income | 6,864 | 4,451 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Distributions in excess of undistributed income of subsidiaries | (4,721) | (3,936) | ||||||||
Change in other assets and liabilities | 135 | 580 | ||||||||
Net cash provided by operating activities | 2,278 | 1,095 | ||||||||
Cash flows from investing activities: | ||||||||||
Investment in subsidiaries | (5,000) | |||||||||
Net cash used in investing activities | (5,000) | |||||||||
Cash flows from financing activities: | ||||||||||
Net proceeds from long-term borrowings | 10,653 | |||||||||
Net share-based compensation transactions | (7) | |||||||||
Dividends paid | (832) | (745) | ||||||||
Treasury stock repurchases | (4,481) | (525) | ||||||||
Net cash provided by financing activities | (5,313) | 9,376 | ||||||||
Net decrease in cash and cash equivalents | (3,035) | 5,471 | ||||||||
Cash and cash equivalents, beginning of period | $ 5,890 | $ 419 | 5,890 | 419 | ||||||
Cash and cash equivalents, end of period | $ 2,855 | $ 5,890 | $ 2,855 | $ 5,890 |
Quarterly Data (Unaudited) - Su
Quarterly Data (Unaudited) - Summary of Quarterly Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest income | $ 11,621 | $ 10,670 | $ 9,525 | $ 9,381 | $ 9,987 | $ 10,030 | $ 10,059 | $ 9,845 | $ 41,197 | $ 39,921 |
Interest expense | 1,730 | 1,155 | 699 | 672 | 727 | 695 | 747 | 781 | 4,256 | 2,950 |
Net interest income | 9,891 | 9,515 | 8,826 | 8,709 | 9,260 | 9,335 | 9,312 | 9,064 | 36,941 | 36,971 |
Provision for loan and lease losses | 527 | 1,165 | 895 | 721 | 493 | 618 | 498 | 401 | 3,308 | 2,010 |
Net interest income after provision for loan and lease losses | 9,364 | 8,350 | 7,931 | 7,988 | 8,767 | 8,717 | 8,814 | 8,663 | 33,633 | 34,961 |
Non-interest: | ||||||||||
Income | 678 | 1,088 | 856 | 829 | 865 | 896 | 809 | 951 | 3,451 | 3,521 |
Expense | 7,106 | 7,032 | 6,878 | 7,056 | 7,414 | 8,547 | 8,399 | 8,396 | 28,072 | 32,756 |
Income before income taxes | 2,936 | 2,406 | 1,909 | 1,761 | 2,218 | 1,066 | 1,224 | 1,218 | 9,012 | 5,726 |
Provision for income taxes | 708 | 546 | 494 | 400 | 507 | 229 | 271 | 268 | 2,148 | 1,275 |
Net income (loss) | $ 2,228 | $ 1,860 | $ 1,415 | $ 1,361 | $ 1,711 | $ 837 | $ 953 | $ 950 | $ 6,864 | $ 4,451 |
Earnings Per Share [Abstract] | ||||||||||
Basic earnings | $ 0.37 | $ 0.31 | $ 0.23 | $ 0.22 | $ 0.27 | $ 0.13 | $ 0.15 | $ 0.15 | $ 1.13 | $ 0.70 |
Diluted earnings | $ 0.35 | $ 0.29 | $ 0.22 | $ 0.20 | $ 0.25 | $ 0.13 | $ 0.14 | $ 0.14 | $ 1.06 | $ 0.66 |