Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 12, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FIRST US BANCSHARES INC | |
Entity Central Index Key | 0000717806 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,865,399 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-14549 | |
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 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | FUSB | |
Security Exchange Name | NASDAQ |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
ASSETS | ||
Cash and due from banks | $ 11,970 | $ 11,844 |
Interest-bearing deposits in banks | 56,457 | 18,308 |
Total cash and cash equivalents | 68,427 | 30,152 |
Federal funds sold | 263 | 1,768 |
Investment securities available-for-sale, at fair value | 127,007 | 130,795 |
Investment securities held-to-maturity, at amortized cost | 1,682 | 1,862 |
Federal Home Loan Bank stock, at cost | 1,590 | 1,359 |
Loans and leases held for investment | 775,889 | 773,873 |
Less allowance for credit losses | 11,599 | 9,422 |
Net loans and leases held for investment | 764,290 | 764,451 |
Premises and equipment, net of accumulated depreciation | 24,290 | 24,439 |
Cash surrender value of bank-owned life insurance | 16,472 | 16,399 |
Accrued interest receivable | 2,898 | 3,011 |
Goodwill and core deposit intangible, net | 7,746 | 7,801 |
Other real estate owned | 617 | 686 |
Other assets | 11,376 | 11,944 |
Total assets | 1,026,658 | 994,667 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest-bearing | 154,661 | 169,822 |
Interest-bearing | 743,224 | 700,203 |
Total deposits | 897,885 | 870,025 |
Accrued interest expense | 841 | 607 |
Other liabilities | 7,431 | 8,136 |
Short-term borrowings | 25,000 | 20,038 |
Long-term borrowings | 10,744 | 10,726 |
Total liabilities | 941,901 | 909,532 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,738,156 and 7,680,856 shares issued, respectively; 5,866,866 and 5,812,258 shares outstanding, respectively | 75 | 75 |
Additional paid-in capital | 14,663 | 14,510 |
Accumulated other comprehensive loss, net of tax | (7,714) | (7,241) |
Retained earnings | 104,427 | 104,460 |
Less treasury stock: 1,871,290 and 1,868,598 shares at cost, respectively | (26,694) | (26,669) |
Total shareholders’ equity | 84,757 | 85,135 |
Total liabilities and shareholders’ equity | $ 1,026,658 | $ 994,667 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
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) | 7,738,156 | 7,680,856 |
Common stock, shares outstanding (in shares) | 5,866,866 | 5,812,258 |
Treasury stock, shares (in shares) | 1,871,290 | 1,868,598 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest income: | ||
Interest and fees on loans | $ 10,982 | $ 8,847 |
Interest on investment securities | 978 | 534 |
Total interest income | 11,960 | 9,381 |
Interest expense: | ||
Interest on deposits | 2,137 | 516 |
Interest on borrowings | 389 | 156 |
Total interest expense | 2,526 | 672 |
Net interest income | 9,434 | 8,709 |
Provision for credit losses | 269 | 721 |
Net interest income after provision for credit losses | 9,165 | 7,988 |
Non-interest income: | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 285 | $ 299 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember |
Lease income | $ 231 | $ 214 |
Other income, net | 313 | 316 |
Total non-interest income | 829 | 829 |
Non-interest expense: | ||
Salaries and employee benefits | 4,222 | 4,330 |
Net occupancy and equipment | 835 | 766 |
Computer services | 421 | 377 |
Insurance expense and assessments | 327 | 367 |
Fees for professional services | 245 | 268 |
Other expense | 1,220 | 948 |
Total non-interest expense | 7,270 | 7,056 |
Income before income taxes | 2,724 | 1,761 |
Provision for income taxes | 652 | 400 |
Net income | $ 2,072 | $ 1,361 |
Basic net income per share | $ 0.35 | $ 0.22 |
Diluted net income per share | 0.33 | 0.20 |
Dividends per share | $ 0.05 | $ 0.03 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 2,072 | $ 1,361 |
Other comprehensive income (loss): | ||
Unrealized holding losses on securities available-for-sale arising during period, net of tax benefit of $105, and $1,176, respectively | (313) | (3,527) |
Unrealized holding (losses) gains arising during the period on effective cash flow hedge derivatives, net of tax benefit (expense) of $18, and ($312), respectively | (50) | 937 |
Reclassification adjustment for net gains on cash flow hedge derivatives realized in net income, net of tax benefit of $37 and $0, respectively | (110) | |
Other comprehensive loss | (473) | (2,590) |
Total comprehensive income (loss) | $ 1,599 | $ (1,229) |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Unrealized holding (losses) on securities available-for-sale arising during period, tax benefit | $ (105) | $ (1,176) |
Unrealized holding gains arising during the period on effective cash flow hedge derivatives, tax benefit (expense) | 18 | (312) |
Reclassification adjustment for net gains on cash flow hedge derivatives realized in net income, tax benefit | $ (37) | $ 0 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - 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, 2021 | $ 90,064 | $ 75 | $ 14,163 | $ (276) | $ 98,428 | $ (22,326) |
Balance (in shares) at Dec. 31, 2021 | 6,172,378 | |||||
Net income | 1,361 | 1,361 | ||||
Net change in fair value of securities available-for-sale, net of tax | (3,527) | (3,527) | ||||
Net change in fair value of derivative instruments, net of tax | 937 | 937 | ||||
Dividends declared | (185) | (185) | ||||
Impact of stock-based compensation plans, net | 115 | 115 | ||||
Impact of stock-based compensation plans, net (in shares) | 44,741 | |||||
Impact of common stock share repurchases | (958) | (958) | ||||
Impact of common stock share repurchases (in shares) | (87,600) | |||||
Ending balance, value at Mar. 31, 2022 | 87,807 | $ 75 | 14,278 | (2,866) | 99,604 | (23,284) |
Balance (in shares) at Mar. 31, 2022 | 6,129,519 | |||||
Beginning 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 | |||||
Net income | 2,072 | 2,072 | ||||
Net change in fair value of securities available-for-sale, net of tax | (313) | (313) | ||||
Net change in fair value of derivative instruments, net of tax | (160) | (160) | ||||
Dividends declared | (294) | (294) | ||||
Impact of stock-based compensation plans, net | 128 | 153 | (25) | |||
Impact of stock-based compensation plans, net (in shares) | 54,608 | |||||
Ending balance, value at Mar. 31, 2023 | 84,757 | $ 75 | $ 14,663 | $ (7,714) | 104,427 | $ (26,694) |
Ending balance, value (Impact of Adopting CECL [Member]) at Mar. 31, 2023 | $ (1,811) | $ (1,811) | ||||
Balance (in shares) at Mar. 31, 2023 | 5,866,866 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends per share | $ 0.05 | $ 0.03 |
Interim Condensed Consolidate_8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Cash flows from operating activities: | ||
Net income | $ 2,072 | $ 1,361 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 412 | 387 |
Provision for credit losses | 269 | 721 |
Deferred income tax provision | (427) | 269 |
Proceeds from settlement of derivative contracts | 2,166 | |
Reclassification of unrealized gains on terminated derivative contracts | (227) | |
Stock-based compensation expense | 153 | 115 |
Net amortization of securities | 16 | 88 |
Amortization of intangible assets | 55 | 73 |
Net loss (gain) on premises and equipment and other real estate | 249 | (131) |
Changes in assets and liabilities: | ||
Decrease in accrued interest receivable | 113 | 106 |
Increase in other assets | (521) | (494) |
Increase in accrued interest expense | 234 | 81 |
Decrease in other liabilities | (979) | (1,730) |
Net cash provided by operating activities | 3,585 | 846 |
Cash flows from investing activities: | ||
Net decrease in federal funds sold | 1,505 | 1 |
Purchases of investment securities, available-for-sale | (14,291) | |
Proceeds from maturities and prepayments of investment securities, available-for-sale | 3,355 | 5,369 |
Proceeds from maturities and prepayments of investment securities, held-to-maturity | 179 | 714 |
Net increase in Federal Home Loan Bank stock | (231) | (64) |
Proceeds from the sale of premises and equipment and other real estate | 128 | 1,550 |
Net (increase) decrease in loans | (2,610) | 28,706 |
Purchases of premises and equipment | (139) | (118) |
Net cash provided by investing activities | 2,187 | 21,867 |
Cash flows from financing activities: | ||
Net increase in deposits | 27,860 | 14,991 |
Net increase in short-term borrowings | 4,962 | 34 |
Net share-based compensation transactions | (25) | |
Repurchases of common stock | (958) | |
Dividends paid | (294) | (185) |
Net cash provided by financing activities | 32,503 | 13,882 |
Net increase in cash and cash equivalents | 38,275 | 36,595 |
Cash and cash equivalents, beginning of period | 30,152 | 61,244 |
Cash and cash equivalents, end of period | 68,427 | 97,839 |
Supplemental disclosures: | ||
Interest | 2,292 | 591 |
Income taxes | 1,020 | 1,071 |
Non-cash transactions: | ||
Assets acquired in settlement of loans | $ 490 | $ 51 |
General
General | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. GENERAL The accompanying unaudited interim condensed consolidated financial statements include the accounts of First US Bancshares, Inc. (“Bancshares”) and its subsidiaries (collectively, the “Company”). Bancshares is the parent holding company of First US Bank (the “Bank”). The Company and the Bank are both headquartered in Birmingham, Alabama. The Bank operates a finance company subsidiary, Acceptance Loan Company, Inc. (“ALC”). Management has determined that the Bank and ALC comprise Bancshares’ two reportable operating segments. All significant intercompany transactions and accounts have been eliminated. 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. The unaudited interim condensed consolidated financial statements, in the opinion of management, reflect all adjustments necessary for a fair presentation of the Company’s consolidated financial position, results of operations and cash flows for the periods presented. Such adjustments are of a normal, recurring nature, except for the adoption of Accounting Standards Codification (“ASC”) 326, Measurement of Credit Losses on Financial Instruments , as discussed below. The results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2023. While certain information and disclosures normally included in financial statements prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) have been condensed or omitted pursuant to the rules and regulations of the Securities and Exchange Commission (“SEC”), management believes that the disclosures herein are adequate to make the information presented not misleading. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2022 . |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION Reclassification Certain amounts in the prior period consolidated financial statements and the notes to the prior period consolidated financial statements have been reclassified to conform to the 2023 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. Summary of Significant Accounting Policies Certain significant accounting policies followed by the Company are set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2022. Adoption of ASC 326 On January 1, 2023, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as subsequently updated for certain clarifications, targeted relief and codification improvements. ASC 326 replaces the previous "incurred loss" model for measuring credit losses, which required allowances for current known and inherent losses within the portfolio, with an "expected loss" model, which requires allowances for losses expected to be incurred over the life of the portfolio. The new current expected credit loss ("CECL") model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance-sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts. ASC 326 also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. In addition, ASC 326 includes certain changes to the accounting for available-for-sale securities including the requirement to present credit losses as an allowance rather than as a direct write-down. The Company adopted ASC 326 using the modified retrospective method for financial assets measured at amortized cost and off-balance-sheet credit exposures. Upon adoption, the Company recognized an increase in the allowance for credit losses (including both loans and unfunded lending commitments) of $ 2.4 million, which included an after-tax cumulative effect decrease to retained earnings totaling $ 1.8 million. Operating results for periods after January 1, 2023 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies described in Note 2 of the Company's 2022 Form 10-K. In connection with the adoption of ASC 326, the Company revised certain accounting policies and implemented certain accounting policy elections. The revised accounting policies are described below. Loans and Leases Held for Investment Loans and leases held for investment (“loans”) represent financial instruments that management has the intent and the ability to hold for the foreseeable future or until maturity or payoff. Loans are reported at amortized cost, net of the allowance for credit losses. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, as well as deferred loan fees and costs. Accrued interest receivable on loans and leases is reported separately on the Company’s consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. At the time a loan is 90 days delinquent, it is placed on nonaccrual status unless it is well-secured and in process of collection. Interest income is discontinued on all loans on nonaccrual status. Past-due status is based on the contractual terms of the loan. In all cases, loans are moved to nonaccrual status, or charged off at an earlier date, if collection of principal and interest is considered doubtful. All interest accrued but not received on loans on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery methods, until qualifying for return to accrual. Under the cash-basis method, interest income is recorded when the payment is received in cash. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses – Loans and Leases The allowance for credit losses is a contra-asset valuation account that is deducted from the amortized cost basis of the loans to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance for credit losses on loans and leases is adjusted through the provision for (recovery of) credit losses. Management estimates the allowance balance by using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for estimation of expected credit losses. Adjustments to historical loss information are made for differences in loan-specific risk characteristics such as changes in economic and business conditions, underwriting standards, portfolio mix, and delinquency level. Considerations related to environmental conditions include reasonable and supportable current and forecasted data related to economic factors such as inflation and unemployment levels, as well as interest rates. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty as of the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for estimated selling costs as appropriate. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company, or management has a reasonable expectation at the reporting date that a loan modification will be made to a borrower experiencing financial difficulty. Additional information related to the factors considered in evaluating credit losses on loans and leases is included in Note 4. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The following categories of off-balance sheet credit exposures have been identified: unfunded loan commitments, standby letters of credit, and financial guarantees (collectively, “unfunded lending commitments”). The allowance for credit losses on unfunded lending commitments is adjusted through the provision for (recovery of) credit losses. The estimate may include consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded, as well as reasonable practical expedients or industry practices to assist in the evaluation of estimated funding amounts. Additional information related to the factors considered in evaluating credit losses on loans and leases is included in Note 4. Allowance for Credit Losses – Investment Securities Held-to-Maturity Expected credit losses on held-to-maturity debt securities are measured on a collective basis by major security type. Accrued interest receivable on held-to-maturity securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The allowance for credit losses on investment securities held-to-maturity is adjusted through the provision for (recovery of) credit losses. Additional information related to the factors considered in evaluating credit losses in the held-to-maturity investment portfolio is included in Note 3. Allowance for Credit Losses – Investment Securities Available-for-Sale For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes in the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded in the provision for (recovery of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is excluded from the estimate of credit losses. Additional information related to the factors considered in evaluating credit losses in the available-for-sale investment portfolio is included in Note 3. 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 unexercised nonqualified stock option grants issued to employees and members of Bancshares’ Board of Directors pursuant to the 2013 Incentive Plan. The following table reflects the weighted average shares used to calculate basic and diluted net income per share for the periods presented. Three Months Ended March 31, 2023 2022 Weighted average shares outstanding 5,839,562 6,157,598 Weighted average director deferred shares 114,783 118,186 Basic shares 5,954,345 6,275,784 Dilutive shares 419,650 420,250 Diluted shares 6,373,995 6,696,034 Three Months Ended March 31, 2023 2022 (Dollars in Thousands, Except Per Share Data) Net income $ 2,072 $ 1,361 Basic net income per share $ 0.35 $ 0.22 Diluted net income per share $ 0.33 $ 0.20 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. Recently Adopted Accounting Guidance Reference Rate Reform 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 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. Historically, the Company has utilized LIBOR, among other indexes, as a reference rate for underwriting certain variable rate loans and interest rate hedging instruments. Since the issuance of this guidance, cessation of U.S. dollar LIBOR has been extended to June 30, 2023. Accordingly, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) : Deferral of the Sunset Date of Topic 848 , which deferred the sunset date of ASC Topic 848 from December 31, 2022 to December 31, 2024. The amendments in this update provide optional expedients designed to provide relief from accounting analysis and the impacts that may otherwise be required for modifications to agreements necessitated by reference rate reform. The optional expedients provided by the update include guidance related to modifications of contracts within the scope of ASC Topics 310, Receivables , and 470, Debt , that indicates the modifications should be accounted for by prospectively adjusting the effective interest rate. As of March 31, 2023, the Company’s contracts referencing LIBOR are limited to certain variable-rate loan agreements. Management has implemented a process to revise such contracts by converting them to another reference rate at an appropriate time in accordance with pricing reset dates. Due to the prospective nature of the implementation of the revised guidance, the adoption did not have a material impact on the Company’s consolidated financial statements. Portfolio Layer Hedging Method 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 expand the current last-of-layer method of hedge accounting to allow multiple hedged layers of a single closed portfolio. The Company adopted ASU 2022-01 on January 1, 2023. Due to the prospective nature of the implementation of this revised guidance, the adoption of this standard update did not have a material impact on the Company's consolidated financial statements. Intangibles and Goodwill 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 did not have a material effect on the Company’s consolidated financial statements. Current Expected Credit Loss Accounting Guidance ASU 2016-13 , "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." Issued in June 2016, ASU 2016-13 removed the thresholds that entities previously applied 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 removed all recognition thresholds under previously used incurred loss models and requires entities to recognize an allowance for lifetime expected credit losses. The standard also added 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. In addition, CECL made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not they will be required to sell. 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 cumulative-effect adjustment that increased the allowance for credit losses by approximately $ 2.1 million. In addition, the Company recorded a cumulative-effect adjustment that increased other liabilities by $ 0.3 million as an allowance for credit losses for unfunded commitments. In accordance with transition accounting guidance, the transition adjustments were recorded directly to retained earnings (net of tax) during the first quarter of 2023 and did not impact current period earnings. Troubled Debt Restructurings and Vintage Disclosures ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. ” Issued in March 2022, ASU 2022-02 seeks to improve the decision usefulness of information provided to investors concerning certain loan refinancings, restructurings and write-offs. The ASU eliminated the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL accounting model and enhanced 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 did not have a material impact on the Company’s consolidated financial statements. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 3. INVESTMENT SECURITIES Details of investment securities available-for-sale and held-to-maturity as of March 31, 2023 and December 31, 2022 were as follows: Available-for-Sale March 31, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 45,498 $ 2 $ ( 3,546 ) $ 41,954 Commercial 11,476 5 ( 499 ) 10,982 Obligations of U.S. government-sponsored agencies 5,114 — ( 739 ) 4,375 Obligations of states and political subdivisions 1,655 — ( 81 ) 1,574 Corporate notes 17,803 — ( 3,149 ) 14,654 U.S. Treasury securities 56,967 — ( 3,499 ) 53,468 Total $ 138,513 $ 7 $ ( 11,513 ) $ 127,007 Held-to-Maturity March 31, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 1,003 $ — $ ( 31 ) $ 972 Obligations of U.S. government-sponsored agencies 601 — ( 42 ) 559 Obligations of states and political subdivisions 78 — ( 10 ) 68 Total $ 1,682 $ — $ ( 83 ) $ 1,599 Available-for-Sale December 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (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 The scheduled maturities of investment securities available-for-sale and held-to-maturity as of March 31, 2023 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (Dollars in Thousands) Maturing within one year $ 12,979 $ 12,696 $ — $ — Maturing after one to five years 49,855 46,675 — — Maturing after five to ten years 65,318 58,009 1,443 1,380 Maturing after ten years 10,361 9,627 239 219 Total $ 138,513 $ 127,007 $ 1,682 $ 1,599 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 tables reflect gross unrealized losses and fair value for securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2023 and December 31, 2022. Available-for-Sale March 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 9,554 $ ( 407 ) $ 32,233 $ ( 3,139 ) Commercial 4,026 ( 135 ) 6,257 ( 364 ) Obligations of U.S. government-sponsored agencies — — 4,375 ( 739 ) Obligations of states and political subdivisions — — 1,574 ( 81 ) Corporate notes 2,565 ( 435 ) 12,089 ( 2,714 ) U.S. Treasury securities — — 53,468 ( 3,499 ) Total $ 16,145 $ ( 977 ) $ 109,996 $ ( 10,536 ) Held-to-Maturity March 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ — $ — $ 972 $ ( 31 ) Obligations of U.S. government-sponsored agencies — — 559 ( 42 ) Obligations of states and political subdivisions — — 68 ( 10 ) Total $ — $ — $ 1,599 $ ( 83 ) 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 ) 513 ( 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 ) $ 69,650 $ ( 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 $ 1,126 $ ( 41 ) $ — $ — Obligations of U.S. government-sponsored agencies $ 214 $ ( 7 ) $ 356 $ ( 33 ) Obligations of states and political subdivisions $ 73 $ ( 12 ) $ — $ — Total $ 1,413 $ ( 60 ) $ 356 $ ( 33 ) Available-for-Sale Considerations For any securities classified as available-for-sale that are in an unrealized loss position as of the balance sheet date, the Company assesses whether or not it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income. As of March 31, 2023 , 91 available-for-sale debt securities had been in a loss position for more than 12 months, and 21 available-for-sale debt securities had been in a loss position for less than 12 months. As of December 31, 2022 , 37 available-for-sale debt securities had been in a loss position for more than 12 months, and 75 available-for-sale debt securities had been in a loss position for less than 12 months. The increase in the number of debt securities in a loss position for greater than 12 months was due to the sustained higher interest rate environment during the three months ended March 31, 2023. As of March 31, 2023, the Company had the current intent and ability to retain its investments for a period of time that management believes to be sufficient to allow for any anticipated recovery of fair value. As of March 31, 2023, the losses for all available-for-sale 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. Accordingly, no allowance for credit losses was considered necessary related to available-for-sale securities as of March 31, 2023. Held-to-Maturity Considerations Effective January 1, 2023, the Company adopted the CECL accounting model to evaluate credit losses in the held-to-maturity investment portfolio. Each quarter, management evaluates the portfolio on a collective basis by major security type to determine whether an allowance for credit losses is needed. Qualitative factors are used in the Company’s credit loss assessments, including current and forecasted economic conditions, the characteristics of the debt issuer, and the historic ability of the issuer to make contractual principal and interest payments. Based on these evaluations, no allowance for credit losses was recorded by the Company for the held-to-maturity investment portfolio upon adoption of the CECL accounting model or as of March 31, 2023. Pledged Securities Investment securities with a carrying value of $ 51.9 million and $ 54.7 million as of March 31, 2023 and December 31, 2022 , 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 | 3 Months Ended |
Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Loans and Allowance for Credit Losses | 4. LOANS AND ALLOWANCE FOR CREDIT 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. These 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 c onsumer – 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 March 31, 2023 and December 31, 2022, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: March 31, 2023 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 69,398 $ — $ 69,398 Secured by 1-4 family residential properties 85,353 1,269 86,622 Secured by multi-family residential properties 63,368 — 63,368 Secured by non-farm, non-residential properties 198,266 — 198,266 Commercial and industrial loans and leases (1) 65,708 — 65,708 Consumer loans: Direct 5,069 3,366 8,435 Branch retail — 12,222 12,222 Indirect 271,870 — 271,870 Total loans 759,032 16,857 775,889 Allowance for credit losses 9,624 1,975 11,599 Net loans $ 749,408 $ 14,882 $ 764,290 December 31, 2022 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 53,914 $ — $ 53,914 Secured by 1-4 family residential properties 86,518 1,477 87,995 Secured by multi-family residential properties 67,852 — 67,852 Secured by non-farm, non-residential properties 200,156 — 200,156 Commercial and industrial loans and leases (1) 73,546 — 73,546 Consumer loans: Direct 5,145 4,706 9,851 Branch retail — 13,992 13,992 Indirect 266,567 — 266,567 Total loans 753,698 20,175 773,873 Allowance for loan and lease losses 8,057 1,365 9,422 Net loans $ 745,641 $ 18,810 $ 764,451 (1) Includes equipment financing leases, which totaled $ 11.2 million and $ 10.3 million as of March 31, 2023 and December 31, 2022 , respectively. The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 53.8 % and 53.0 % of the portfolio was concentrated in loans secured by real estate as of March 31, 2023 and December 31, 2022, respectively. Loans with a carrying value of $ 112.1 million and $ 100.2 million were pledged as collateral to secure Federal Home Loan Bank (“FHLB”) borrowings as of March 31, 2023 and December 31, 2022, 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 were $ 0.1 million and $ 0.2 million as of March 31, 2023 and December 31, 2022, respectively. During the three months ended March 31, 2023 , there were no new loans to these parties and no repayments made. During the year ended December 31, 2022 , there were no new loans to these parties, and repayments by active related parties totaled $ 0.1 million. Allowances for Credit Losses Effective J anuary 1, 2023, the Company adopted the CECL model to account for credit losses on financial instruments, including loans and leases held for investment, as well as off-balance sheet credit exposures including unfunded lending commitments. In accordance with the CECL accounting guidance, the Company recorded a cumulative-effect adjustment totaling $ 2.4 million, of which $ 1.8 million (net of tax) was recorded through retained earnings upon adoption of the model. This amount included estimates for credit losses associated with both loan and lease receivables, as well as unfunded lending commitments. Prospectively, following the date of adoption, all adjustments for credit losses are required to be recorded as a provision for (recovery of) credit losses in the Company’s consolidated statement of operations. Allowance for Credit Losses - Loans and Leases Determining the appropriateness of the allowance for credit losses is complex and requires judgment by management about the effects of matters that are inherently uncertain. In future periods, evaluations of the overall loan portfolio, or particular segments of the portfolio, in the context of factors and forecasts then prevailing, may result in significant changes in the allowance and credit loss expense in those future periods. The level of the allowance is influenced by loan volumes and mix, historical credit loss experience, average remaining life of portfolio segments, asset quality characteristics, delinquency status, and other conditions including reasonable and supportable forecasts of economic conditions and qualitative adjustment factors based on management’s understanding of various attributes that could impact life-of-loan losses as of the balance sheet date. The methodology to estimate losses includes two basic components: (1) an asset-specific component for individual loans that do not share similar risk characteristics with other loans, and (2) a pooled component for estimated expected credit losses for loans that share similar risk characteristics. Loans that do not share risk characteristics with other loans are evaluated on an individual basis. The process for determining whether a loan should be evaluated on an individual basis begins with a determination of credit rating. All loans graded substandard or worse with a total commitment of $ 0.5 million or more are evaluated on an individual basis. At management's discretion, other loans may be evaluated, including loans less than $ 0.5 million, if management determines that the loans exhibit unique risk characteristics. For loans individually evaluated, the allowance is based primarily on the fair value of the underlying collateral, utilizing independent third-party appraisals, and assessment of borrower guarantees. For estimating the component of the allowance for credit losses that share similar risk characteristics, loans are segregated into loan segments or categories that share risk characteristics. Loans are designated into pooled segments based on product types, business lines, collateral, and other risk characteristics. For all pooled loan categories, the Company uses a loss-rate methodology to calculate estimated life-of-loan and lease credit losses. This methodology focuses on historical credit loss rates applied over the estimated weighted average remaining life of each loan segment, adjusted by qualitative factors, to estimate life-of-loan losses for each pooled segment. The qualitative factors utilized include, among others, reasonable and supportable forecasts of economic data, including inflation and unemployment levels, as well as interest rates. The Company’s cumulative-effect adjustment upon the adoption of CECL increased the Company’s allowance for credit losses by $ 2.1 million. Subsequent to January 1, 2023, the Company recorded additional increases to the allowance for credit losses totaling $ 0.3 million which were included in the provision for credit losses in the Company’s consolidated statement of operations during the three months ended March 31, 2023. The following tables present changes in the allowance for credit losses during the three months ended March 31, 2023 and 2022: As of and for the Three Months Ended March 31, 2023 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 866 $ 518 $ 3,154 $ 9,422 Impact of adopting CECL accounting guidance ( 94 ) ( 39 ) ( 85 ) ( 147 ) ( 20 ) 47 628 1,833 2,123 Charge-offs — ( 8 ) — — — ( 215 ) ( 155 ) ( 156 ) ( 534 ) Recoveries — 16 — — — 198 77 28 319 Provision for (recovery of) credit losses 97 ( 32 ) ( 52 ) ( 61 ) ( 117 ) ( 4 ) — 438 269 Ending balance $ 520 $ 769 $ 509 $ 1,762 $ 782 $ 892 $ 1,068 $ 5,297 $ 11,599 As of and for the Three Months Ended March 31, 2022 Construction, Real Estate 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 — ( 2 ) — — — ( 601 ) ( 101 ) ( 25 ) ( 729 ) Recoveries 1 8 — 1 — 128 23 11 172 Provision for (recovery of) loan and lease losses ( 142 ) ( 12 ) 47 ( 185 ) 29 533 295 156 721 Ending balance $ 487 $ 684 $ 484 $ 1,774 $ 889 $ 1,064 $ 521 $ 2,581 $ 8,484 The following table details the allowance for loan and lease losses and recorded investment in loans by loan classification and by impairment evaluation as of December 31, 2022, as determined in accordance with ASC 310, Receivables , prior to the adoption of ASC 326: As of the Year Ended December 31, 2022 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 7 $ — $ — $ 252 $ — $ — $ — $ 259 Collectively evaluated for impairment 517 825 646 1,970 667 886 518 3,154 9,163 Total allowance for loan and lease losses $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 886 $ 518 $ 3,154 $ 9,422 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 582 $ — $ 2,492 $ 2,429 $ 18 $ — $ — $ 5,521 Collectively evaluated for impairment 53,914 87,413 67,852 197,664 71,117 9,833 13,992 266,567 768,352 Total loans receivable $ 53,914 $ 87,995 $ 67,852 $ 200,156 $ 73,546 $ 9,851 $ 13,992 $ 266,567 $ 773,873 Allowance for Credit Losses - Unfunded Lending Commitments Unfunded lending commitments are off-balance sheet arrangements that represent unconditional commitments of the Company to lend to a borrower that are unfunded as of the balance sheet date. These may include unfunded loan commitments, standby letters of credit, and financial guarantees. The CECL accounting guidance requires that an estimate of expected credit loss be measured on commitments in which an entity is exposed to credit risk via a present contractual obligation to extend credit unless the obligation is unconditionally cancellable by the issuer. For the Company, unconditional lending commitments generally include unfunded term loan agreements, home equity lines of credit, lines of credit, and demand deposit account overdraft protection. The Company’s cumulative-effect adjustment upon the adoption of CECL included a reserve for unfunded commitments of $ 0.3 million. As of March 31, 2023, the reserve, which is recorded in other liabilities on the Company’s consolidated balance sheet, remained $ 0.3 million. No reserve for unfunded commitments was recorded by the Company as of December 31, 2022. 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 March 31, 2023 or December 31, 2022. • 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 March 31, 2023 or December 31, 2022. 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 and year of origination as of March 31, 2023: March 31, 2023 Loans at Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Commercial: Construction, land development and other land loans Pass $ — $ 31,710 $ 31,359 $ 5,625 $ — $ 704 $ 69,398 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ — $ 31,710 $ 31,359 $ 5,625 $ — $ 704 $ 69,398 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by multi-family residential properties Pass $ 320 $ 16,533 $ 14,459 $ 701 $ 7,325 $ 24,030 $ 63,368 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 320 $ 16,533 $ 14,459 $ 701 $ 7,325 $ 24,030 $ 63,368 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by non-farm, non-residential properties Pass $ 516 $ 37,109 $ 24,459 $ 59,612 $ 19,152 $ 52,144 $ 192,992 Special Mention — — 1,319 546 — 645 2,510 Substandard — — — — — 2,764 2,764 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 516 $ 37,109 $ 25,778 $ 60,158 $ 19,152 $ 55,553 $ 198,266 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans Pass $ 2,332 $ 8,894 $ 17,835 $ 4,992 $ 4,195 $ 24,938 $ 63,186 Special Mention — 190 1,100 249 93 — 1,632 Substandard — 49 328 37 179 297 890 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 2,332 $ 9,133 $ 19,263 $ 5,278 $ 4,467 $ 25,235 $ 65,708 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Total commercial Pass $ 3,168 $ 94,246 $ 88,112 $ 70,930 $ 30,672 $ 101,816 $ 388,944 Special Mention — 190 2,419 795 93 645 4,142 Substandard — 49 328 37 179 3,061 3,654 Doubtful — — — — — — — Loss — — — — — — — $ 3,168 $ 94,485 $ 90,859 $ 71,762 $ 30,944 $ 105,522 $ 396,740 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — March 31, 2023 Loans at Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Consumer: Secured by 1-4 family residential properties Performing $ 1,762 $ 21,937 $ 16,092 $ 12,095 $ 10,346 $ 23,337 $ 85,569 Non-performing — — — — 164 889 1,053 Subtotal $ 1,762 $ 21,937 $ 16,092 $ 12,095 $ 10,510 $ 24,226 $ 86,622 Current period gross charge-offs $ — $ — $ — $ — $ — $ 8 $ 8 Direct Performing $ 740 $ 2,021 $ 3,378 $ 1,467 $ 533 $ 273 $ 8,412 Non-performing — — 6 — — 17 23 Subtotal $ 740 $ 2,021 $ 3,384 $ 1,467 $ 533 $ 290 $ 8,435 Current period gross charge-offs $ — $ — $ 149 $ 47 $ 1 $ 18 $ 215 Branch retail Performing $ — $ — $ 3,215 $ 3,743 $ 2,173 $ 3,077 $ 12,208 Non-performing — — — 14 — — 14 Subtotal $ — $ — $ 3,215 $ 3,757 $ 2,173 $ 3,077 $ 12,222 Current period gross charge-offs $ — $ — $ 40 $ 44 $ 20 $ 51 $ 155 Indirect Performing $ 18,453 $ 102,067 $ 76,676 $ 60,415 $ 6,674 $ 7,560 $ 271,845 Non-performing — — — 11 14 — 25 Subtotal $ 18,453 $ 102,067 $ 76,676 $ 60,426 $ 6,688 $ 7,560 $ 271,870 Current period gross charge-offs $ — $ 45 $ 42 $ 40 $ — $ 29 $ 156 Total consumer: Performing $ 20,955 $ 126,025 $ 99,361 $ 77,720 $ 19,726 $ 34,247 $ 378,034 Non-performing — — 6 25 178 906 1,115 $ 20,955 $ 126,025 $ 99,367 $ 77,745 $ 19,904 $ 35,153 $ 379,149 Current period gross charge-offs $ — $ 45 $ 231 $ 131 $ 21 $ 106 $ 534 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 $ 53,914 $ — $ — $ 53,914 Secured by multi-family residential properties 67,852 — — 67,852 Secured by non-farm, non-residential properties 197,004 651 2,501 200,156 Commercial and industrial loans 70,500 — 3,046 73,546 Total $ 389,270 $ 651 $ 5,547 $ 395,468 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 $ 86,871 $ 1,124 $ 87,995 Consumer loans: Direct 9,805 46 9,851 Branch retail 13,960 32 13,992 Indirect 266,496 71 266,567 Total $ 377,132 $ 1,273 $ 378,405 As a percentage of total loans 99.66 % 0.34 % 100.00 % The following table provides an aging analysis of past due loans by class as of March 31, 2023: As of March 31, 2023 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 69,398 $ 69,398 $ — Secured by 1-4 family residential 262 18 56 336 86,286 86,622 — Secured by multi-family residential — — — — 63,368 63,368 — Secured by non-farm, non-residential — — — — 198,266 198,266 — Commercial and industrial loans 3 — 173 176 65,532 65,708 — Consumer loans: Direct 97 45 24 166 8,269 8,435 — Branch retail 92 23 14 129 12,093 12,222 — Indirect 179 — 25 204 271,666 271,870 — Total $ 633 $ 86 $ 292 $ 1,011 $ 774,878 $ 775,889 $ — As a percentage of total loans 0.08 % 0.01 % 0.04 % 0.13 % 99.87 % 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 $ — $ — $ — $ — $ 53,914 $ 53,914 $ — Secured by 1-4 family residential 801 87 78 966 87,029 87,995 — Secured by multi-family residential — — — — 67,852 67,852 — Secured by non-farm, non-residential 137 — — 137 200,019 200,156 — Commercial and industrial loans 61 — 300 361 73,185 73,546 — Consumer loans: Direct 251 50 30 330 9,521 9,851 — Branch retail 258 85 32 375 13,617 13,992 — Indirect 186 55 71 312 266,255 266,567 — Total $ 1,694 $ 277 $ 511 $ 2,481 $ 771,392 $ 773,873 $ — As a percentage of total loans 0.21 % 0.04 % 0.07 % 0.32 % 99.68 % 100.00 % The table below presents the amortized cost of loans on nonaccrual status and loans past due 90 days or more and still accruing interest as of March 31, 2023. Also presented is the balance of loans on nonaccrual status at March 31, 2023 for which there was no related allowance for credit losses recorded. Loans on Non-Accrual Status March 31, 2023 (Dollars in Thousands) Total nonaccrual Nonaccrual loans with no allowance for credit losses Loans past due 90 days or more and still accruing Loans secured by real estate: Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 856 483 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial loans 296 113 — Consumer loans: — Direct 23 17 — Branch retail 14 — — Indirect 25 — — Total loans $ 1,214 $ 613 $ — The following table provides an analysis of nonaccruing loans by portfolio segment as of December 31, 2022: Loans on Non-Accrual Status December 31, 2022 (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — Secured by 1-4 family residential properties 914 Secured by multi-family residential properties — Secured by non-farm, non-residential properties — Commercial and industrial loans 605 Consumer loans: Direct 29 Branch retail 32 Indirect 71 Total loans $ 1,651 The following table presents the amortized cost basis of collateral dependent loans as of March 31, 2023, which are individually evaluated to determine credit losses: March 31, 2023 Real Estate Other Total (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 545 — 545 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,776 — 2,776 Commercial and industrial — 337 337 Direct consumer — 18 18 Total loans individually evaluated $ 3,321 $ 355 $ 3,676 The following table presents impaired loans as of December 31, 2022 as determined under ASC 310 prior to the adoption of ASC 326. Impaired loans generally include nonaccrual loans and other loans deemed to be impaired but that continue to accrue interest. Presented are the carrying amount, unpaid principal balance and related allowance of impaired loans as of December 31, 2022 by portfolio segment: 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 The following table details the average recorded investment and the amount of interest income recognized and received for the three months ended March 31, 2022, respectively, related to impaired loans as determined under ASC 310 prior to the adoption of ASC 326: Three Months Ended March 31, 2022 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 642 2 1 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,043 13 15 Commercial and industrial 739 5 5 Direct consumer 20 — 1 Total $ 2,444 $ 20 $ 22 Loan Modifications Made to Borrowers Experiencing Financial Difficulty From time to time, the Company may modify the terms of loan agreements with borrowers that are experiencing financial difficulties. Modification of the terms of such loans typically include one or a combination of the following: a reduction of the stated interest rate of the loan; an extension of the maturity date at a stated rate of interest lower than the current market rate for new debt with similar risk; or a permanent reduction of the recorded investment in the loan. No modifications in 2023 or 2022 resulted in the permanent reduction of the recorded investment in the loan. During the three months ended March 31, 2023, the Company did not modify any loans to borrowers experiencing financial difficulty, and there were no payment defaults on loans that were modified in the previous twelve months. |
Other Real Estate Owned and Rep
Other Real Estate Owned and Repossessed Assets | 3 Months Ended |
Mar. 31, 2023 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned and Repossessed Assets | 5. 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 as of the three months ended March 31, 2023 and 2022 : March 31, 2023 March 31, (Dollars in Thousands) Beginning balance $ 686 $ 2,149 Additions — — Sales proceeds — ( 1,431 ) Gross gains — 183 Gross losses — ( 27 ) Net gains — 156 Impairment ( 69 ) — Ending balance $ 617 $ 874 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 zero as of March 31, 2023 and March 31, 2022 , respectively. In addition, the Company held zero and $ 18 thousand in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of March 31, 2023 and 2022, respectively. 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 as of the three months ended March 31, 2023 and 2022 : March 31, 2023 March 31, (Dollars in Thousands) Beginning balance $ 83 $ 154 Transfers from loans 490 51 Sales proceeds ( 128 ) ( 100 ) Gross gains — — Gross losses ( 180 ) ( 44 ) Net losses ( 180 ) ( 44 ) Impairment — — Ending balance $ 265 $ 61 Repossessed assets are included in Other Assets in the Company’s condensed consolidated balance sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. GOODWILL AND OTHER INTANGIBLE ASSETS 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, originally recorded as a result of the Company's acquisition of The Peoples Bank ("TPB") in 2018, totaled $ 7.4 million as of both March 31, 2023 and December 31, 2022. Goodwill impairment was neither indicated nor recorded during the three months ended March 31, 2023 or the year ended December 31, 2022. 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 intangible assets (carrying basis and accumulated amortization) as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (Dollars in Thousands) Goodwill $ 7,435 $ 7,435 Core deposit intangible: Gross carrying amount 2,048 2,048 Accumulated amortization ( 1,737 ) ( 1,682 ) Core deposit intangible, net 311 366 Total $ 7,746 $ 7,801 The Company’s estimated remaining amortization expense on intangible assets as of March 31, 2023 was as follows: Amortization Expense (Dollars in Thousands) 2023 $ 140 2024 122 2025 49 Total $ 311 The net carrying amount of the Company’s core deposit premiums 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 their carrying amount may not be recoverable. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Borrowings | 7. BORROWINGS Short-Term Borrowings Short-term borrowings 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 March 31, 2023 and December 31, 2022 , 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. There were no securities sold under repurchase agreements as of March 31, 2023. As of December 31, 2022, securities sold under repurchase agreements totaled $ 38 thousand. • Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source. As of March 31, 2023 and December 31, 2022, the Bank had $ 25.0 million and $ 20.0 million, respectively, in outstanding FHLB advances with original maturities of less than one year. 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 March 31, 2023 and December 31, 2022 , 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, after which 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 used the net proceeds for general corporate purposes, including repurchasing of the Company’s common stock, and supporting organic growth plans, including the maintenance of capital ratios. As of both March 31, 2023 and March 31, 2022, the Notes were recorded as long-term borrowings totaling $ 10.7 million, net of unamortized debt issuance costs. The table below provides additional information related to the Notes as of and for the three months ended March 31, 2023 and 2022. March 31, March 31, 2023 2022 (Dollars in Thousands) Balance at period-end $ 10,744 $ 10,671 Average balance during the period $ 10,738 $ 10,655 Maximum month-end balance during the year $ 10,744 $ 10,671 Average rate paid during the period, including amortization of debt issuance costs 4.20 % 4.20 % Weighted average remaining maturity (in years) 8.50 9.50 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. As of March 31, 2023 and December 31, 2022, the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements March 31, 2023 December 31, 2022 Correspondent banks None $ 28.0 million $ 45.0 million FHLB advances (1) Subject to collateral $ 243.4 million $ 246.8 million Federal Reserve Subject to collateral (2) (2) (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. The total lendable collateral value of assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 74.2 million and $ 68.2 million as of March 31, 2023 and December 31, 2022, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 55.0 million and $ 50.0 million as of March 31, 2023 and December 31, 2022, respectively, leaving an excess of collateral of $ 19.2 million and $ 18.2 million, respectively, available to utilize for additional credit as of the respective dates. The Company also has the ability to pledge additional assets to increase the availability of borrowings. (2) The Company has access to the Federal Reserve’s discount window and its Bank Term Funding Program (BTFP), the latter of which was established during the three months ended March 31, 2023 in response to the liquidity events that have occurred in the banking industry. Both the discount window and the BTFP allow borrowing on pledged collateral that includes eligible investment securities and, in certain circumstances, eligible loans. The discount window allows borrowing under 90-day terms, while borrowing terms under the BTFP are up to one year. The BTFP also allows investment securities to be pledged as collateral at 100 % of par value when par value is greater than fair value. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2023 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES The provision for income taxes was $ 0.7 million and $ 0.4 million for the three months ended March 31, 2023 and 2022, respectively. The Company’s effective tax rate was 23.9 % and 22.7 % , respectively, for the same periods. The effective tax rate is impacted by recurring permanent differences, such as those associated with bank-owned life insurance and tax-exempt investment and loan income. The Company had a net deferred tax asset of $ 6.0 million and $ 5.2 million as of March 31, 2023 and December 31, 2022, respectively. The net deferred tax asset, which is included on the interim condensed consolidated balance sheet in other assets, is impacted by changes in the fair value of securities available-for-sale and cash flow hedges, changes in net operating loss carryforwards and other book-to-tax temporary differences. The net deferred tax asset increased by $ 0.6 million as a result of the cumulative effect adjustment to adopt ASC 326, effective January 1, 2023. |
Deferred Compensation Plans
Deferred Compensation Plans | 3 Months Ended |
Mar. 31, 2023 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation Plans | 9. DEFERRED COMPENSATION PLANS The Company has entered into supplemental retirement compensation benefits agreements with certain directors and former executive officers. The measurement of the liability under these agreements includes estimates involving life expectancy, length of time before retirement and the expected returns on the bank-owned life insurance policies used to fund those agreements. Should these estimates prove to be materially wrong, the cost of these agreements could change accordingly. The related deferred compensation obligation to these directors and executive officers included in other liabilities was $ 3.1 million as of both March 31, 2023 and December 31, 2022. Non-employee directors may elect to defer payment of all or any portion of their shares of Bancshares common stock 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 equity awards and to receive the adjusted value of the deferred amounts in cash and/or shares of Bancshares’ common stock, as applicable. Neither Bancshares nor the Bank makes any contribution to participants’ accounts under the Deferral Plan. As of March 31, 2023 and December 31, 2022, a total of 116,561 and 114,190 shares of Bancshares common stock, respectively, were deferred in connection with the Deferral Plan. All deferred fees and shares of Bancshares common stock are reflected as compensation expense in the period earned or granted, as applicable. The Company classifies all deferred directors’ fees allocated to be paid in shares as equity 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 | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Awards | 10. STOCK AWARDS In accordance with the Company’s 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 $ 0.1 million for both the three months ended March 31, 2023 and 2022. 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. The Company did no t grant any stock option awards during the three months ended March 31, 2023 or 2022. The following table summarizes the Company’s stock option activity for the periods presented. Three Months Ended March 31, 2023 March 31, 2022 Number of Average Number of Average Options: Outstanding, beginning of period 419,650 $ 9.79 420,250 $ 9.79 Granted — — — — Exercised — — — — Expired — — — — Forfeited — — 600 10.86 Options outstanding, end of period 419,650 $ 9.79 419,650 $ 9.79 Options exercisable, end of period 419,650 $ 9.79 415,916 $ 9.77 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 zero and $ 0.9 million as of March 31, 2023 and 2022, respectively. Restricted Stock During the three months ended March 31, 2023 and 2022, 57,300 shares and 45,938 shares, respectively, of restricted stock were granted. 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. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | 11. 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 years , 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 expense, as well as the reporting location in the interim condensed consolidated statements of operations, for the three months ended March 31, 2023 and 2022: Location in the Condensed Three Months Ended Consolidated Statements March 31, March 31, (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 108 $ 108 Operating lease income (2) Lease income $ 234 $ 214 (1) Includes short-term lease costs. For the three months ended March 31, 2023 and 2022 , 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 interim condensed consolidated balance sheet as of March 31, 2023 and December 31, 2022: Location in Consolidated March 31, December 31, (Dollars in Operating lease right-of-use assets Other assets $ 1,791 $ 1,883 Operating lease liabilities Other liabilities $ 1,870 $ 1,961 Weighted-average remaining lease term (in years) 4.78 5.03 Weighted-average discount rate 3.30 % 3.30 % The following table provides supplemental lease information for the interim condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, March 31, (Dollars in Thousands) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 107 $ 108 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 March 31, 2023: Minimum (Dollars in Thousands) 2023 324 2024 438 2025 339 2026 346 2027 353 2028 and thereafter 238 Total future minimum lease payments $ 2,038 Less: Imputed interest 168 Total operating lease liabilities $ 1,870 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. 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. The Company had previously utilized pay-fixed interest rate swaps designated as either cash flow hedges or fair value hedges. In response to market conditions, during the three months ended March 31, 2023, the Company voluntarily terminated its remaining four interest rate swap agreements with a total notional amount of $ 40.0 million. In addition, during the year ended December 31, 2022, the Company voluntarily terminated one interest rate swap designated as a cash flow hedge with a notional amount of $ 10.0 million. Hedges Terminated in 2023 Two of the swaps terminated during the three months ended March 31, 2023 were designated as cash flow hedges, while two were designated as fair value hedges. The termination of the cash flow hedges resulted in a net unrealized gain totaling $ 1.1 million. The unrealized gain was initially recorded in accumulated other comprehensive income and is being reclassified to reduce interest expense over the original terms of the swap contracts. The termination of the fair value hedges resulted in an unrealized gain totaling $ 1.0 million which is being reclassified to interest income over the original terms of the swap contracts. Hedge Terminated in 2022 The cash flow hedge terminated during the year ended December 31, 2022, resulted in a net unrealized gain of $ 0.3 million. The unrealized gain was initially recorded in accumulated other comprehensive income and is being reclassified to reduce interest expense over the original term of the swap contract. Presentation As of March 31, 2023, there were no assets or liabilities recorded in the Company’s interim condensed consolidated balance sheet associated with derivative contracts. The table below 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. As of December 31, 2022 Notional Estimated Fair Value 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 Total fair value hedges 1,101 Cash flow hedges: Interest rate swaps related to variable-rate money market deposit accounts 20,000 1,205 Interest rate swaps related to FHLB advances — — Total cash flow hedges 1,205 Total hedges designated as hedging instruments, net $ 2,306 (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. Prior to termination, the Company utilized the last-of-layer method with respect to its interest rate swaps designated as fair value hedges. This approach allowed 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 table presents the net effects of derivative hedging instruments on the Company’s interim condensed consolidated statements of operations for the three-months ended March 31, 2023 and 2022. The effects, which include the reclassification of unrealized gains on terminated swap contracts, are presented as either an increase or decrease to income before income taxes in the relevant caption of the Company’s interim condensed consolidated statements of operations. Location in the Condensed Three Months Ended Consolidated Statements March 31, March 31, (Dollars in Thousands) Interest income Interest and fees on loans $ 168 $ ( 59 ) Interest expense Interest on deposits 36 ( 30 ) Interest expense Interest on short-term borrowings 136 ( 79 ) Net increase (decrease) to income before income taxes $ 340 $ ( 168 ) |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting, Disclosure of Entity's Reportable Segments [Abstract] | |
Segment Reporting | 13. SEGMENT REPORTING Under ASC Topic 280, Segment Reporting , certain 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,” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2022 , as amended in 2023 by the adoption of ASC 326 as discussed in Note 2, “Basis of Presentation,” in the Notes to the Interim Consolidated Financial Statements included in this Quarterly Report on Form 10-Q. 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 results for the two reportable segments of the Company are included in the tables below. All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2023 Total interest income $ 11,506 $ 659 $ 1 $ ( 206 ) $ 11,960 Total interest expense 2,412 205 115 ( 206 ) 2,526 Net interest income 9,094 454 ( 114 ) — 9,434 Provision for credit losses 269 — — — 269 Net interest income after provision 8,825 454 ( 114 ) — 9,165 Total non-interest income 831 17 2,397 ( 2,416 ) 829 Total non-interest expense 6,671 320 298 ( 19 ) 7,270 Income before income taxes 2,985 151 1,985 ( 2,397 ) 2,724 Provision for income taxes 701 38 ( 87 ) — 652 Net income $ 2,284 $ 113 $ 2,072 $ ( 2,397 ) $ 2,072 Other significant items: Total assets $ 1,025,683 $ 16,128 $ 95,018 $ ( 110,171 ) $ 1,026,658 Total investment securities 128,689 — — — 128,689 Total loans, net 764,347 14,882 — ( 14,939 ) 764,290 Goodwill and core deposit intangible, net 7,746 — — — 7,746 Investment in subsidiaries — — 92,210 ( 92,210 ) — Fixed asset additions 139 — — — 139 Depreciation and amortization expense 405 7 — — 412 Total interest income from external customers 11,301 659 — — 11,960 Total interest income from affiliates 205 — 1 ( 206 ) — All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2022 Total interest income $ 8,125 $ 1,589 $ 1 $ ( 334 ) $ 9,381 Total interest expense 559 333 114 ( 334 ) 672 Net interest income 7,566 1,256 ( 113 ) — 8,709 Provision for loan and lease losses ( 135 ) 856 — — 721 Net interest income after provision 7,701 400 ( 113 ) — 7,988 Total non-interest income 855 70 1,648 ( 1,744 ) 829 Total non-interest expense 6,285 544 296 ( 69 ) 7,056 Income (loss) before income taxes 2,271 ( 74 ) 1,239 ( 1,675 ) 1,761 Provision for income taxes 502 ( 19 ) ( 83 ) — 400 Net income (loss) $ 1,769 $ ( 55 ) $ 1,322 $ ( 1,675 ) $ 1,361 Other significant items: Total assets $ 972,318 $ 33,518 $ 104,414 $ ( 141,604 ) $ 968,646 Total investment securities 137,655 — 81 — 137,736 Total loans, net 669,569 32,237 — ( 31,960 ) 669,846 Goodwill and core deposit intangible, net 7,996 — — — 7,996 Investment in subsidiaries — — 93,963 ( 93,963 ) — Fixed asset additions 118 0 — — 118 Depreciation and amortization expense 377 10 — — 387 Total interest income from external customers 7,792 1,589 — — 9,381 Total interest income from affiliates 333 — 1 ( 334 ) — |
Other Operating Income and Expe
Other Operating Income and Expense | 3 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating Income and Expense | 14. OTHER OPERATING INCOME AND EXPENSE Other Operating Income Other operating income for the three months ended March 31, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (Dollars in Thousands) Bank-owned life insurance $ 114 $ 110 ATM fee income 112 134 Gain on sales of premises and equipment and other assets — 19 Other income 87 53 Total $ 313 $ 316 Other Operating Expense Other operating expense for the three months ended March 31, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (Dollars in Thousands) Postage, stationery and supplies $ 161 $ 164 Telephone/data communication 169 171 Collection and recoveries 91 47 Directors fees 95 103 Software amortization 124 99 Other real estate/foreclosure expense, net 6 ( 145 ) Other expense 574 509 Total $ 1,220 $ 948 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 15. GUARANTEES, COMMITMENTS AND CONTINGENCIES Credit 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. In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit, letters of credit and others, 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: March 31, December 31, (Dollars in Thousands) Standby letters of credit $ — $ — Standby performance letters of credit $ 531 $ 556 Commitments to extend credit $ 187,603 $ 186,169 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 March 31, 2023 and December 31, 2022, 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. In accordance with the adoption of ASC 326 on January 1, 2023, the Company recorded a reserve for unfunded commitments of $ 0.3 million. The reserve, which is included in other liabilities in the Company’s balance sheet, remained $ 0.3 million as of March 31, 2023. Additional discussion related to the calculation of the reserve for unfunded commitments is included in Note 4. Self-Insurance 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 a 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 March 31, 2023 and December 31, 2022. 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 | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 16. FAIR VALUE OF FINANCIAL INSTRUMENTS The assumptions used in the Company’s 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 three months ended March 31, 2023 or the year ended December 31, 2022. 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 U.S. Treasury securities. Level 2 securities include 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 March 31, 2023 and December 31, 2022. Fair Value Measurements as of March 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 41,954 $ — $ 41,954 $ — Commercial 10,982 — 10,982 — Obligations of U.S. government-sponsored agencies 4,375 — 4,375 — Obligations of states and political subdivisions 1,574 — 1,574 — Corporate notes 14,654 — 14,654 — U.S. Treasury securities 53,468 53,468 — — Fair Value Measurements as of December 31, 2022 Using Totals At Quoted 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 on a Non-recurring Basis Collateral Dependent Loans Collateral dependent loans are measured at the fair value of the collateral securing the loan less estimated selling costs. The fair value of real estate collateral is determined based on real estate appraisals, which are generally based on recent sales of comparable properties which are then adjusted for property specific factors. Non-real estate collateral value is based on various sources, including third party asset valuations and internally determined values based on cost, adjusted for depreciation and other judgmentally determined discount factors. Collateral dependent loans are classified as Level 3 of the valuation hierarchy due to the unobservable inputs used in determining their fair value, such as collateral values and the borrower's underlying financial condition. 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 March 31, 2023 and December 31, 2022, 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 March 31, 2023 and December 31, 2022: Fair Value Measurements as of March 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Collateral dependent loans $ 78 $ — $ — $ 78 OREO and other assets held-for-sale 617 — — 617 Fair Value Measurements as of December 31, 2022 Using Totals At Quoted Significant Significant (Dollars in Thousands) Impaired loans $ 108 $ — $ — $ 108 OREO and other assets held-for-sale 686 — — 686 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 March 31, 2023. 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 March 31, 2023 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: Collateral dependent loans $ 78 Multiple data points, Appraisal comparability 9 %- 10 % ( 9.5 %) OREO and other assets held-for-sale $ 617 Discount to appraised Appraisal comparability 9 %- 10 % ( 9.5 %) Collateral Dependent Loans Collateral dependent 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 ASC Topic 825, Financial Instruments , requires disclosure of fair value information about financial instruments, whether or not recognized on the face of the balance sheet, for which it is practicable to estimate. 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 debt: 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 March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 68,427 $ 68,427 $ 68,427 $ — $ — Investment securities available-for-sale 127,007 127,007 53,468 73,539 — Investment securities held-to-maturity 1,682 1,599 — 1,599 — Federal funds sold 263 263 — 263 — Federal Home Loan Bank stock 1,590 1,590 — — 1,590 Loans, net of allowance for credit losses 764,290 733,467 — — 733,467 Liabilities: Deposits 897,885 826,524 — 826,524 — Short-term borrowings 25,000 25,000 — 25,000 — Long-term borrowings 10,744 9,885 — 9,885 — 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 and lease 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 — |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Reclassification | Reclassification Certain amounts in the prior period consolidated financial statements and the notes to the prior period consolidated financial statements have been reclassified to conform to the 2023 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. Summary of Significant Accounting Policies Certain significant accounting policies followed by the Company are set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2022. Adoption of ASC 326 On January 1, 2023, the Company adopted Accounting Standards Update ("ASU") 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments , as subsequently updated for certain clarifications, targeted relief and codification improvements. ASC 326 replaces the previous "incurred loss" model for measuring credit losses, which required allowances for current known and inherent losses within the portfolio, with an "expected loss" model, which requires allowances for losses expected to be incurred over the life of the portfolio. The new current expected credit loss ("CECL") model requires the measurement of all expected credit losses for financial assets measured at amortized cost and certain off-balance-sheet credit exposures based on historical experience, current conditions, and reasonable and supportable forecasts. ASC 326 also requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization's portfolio. In addition, ASC 326 includes certain changes to the accounting for available-for-sale securities including the requirement to present credit losses as an allowance rather than as a direct write-down. The Company adopted ASC 326 using the modified retrospective method for financial assets measured at amortized cost and off-balance-sheet credit exposures. Upon adoption, the Company recognized an increase in the allowance for credit losses (including both loans and unfunded lending commitments) of $ 2.4 million, which included an after-tax cumulative effect decrease to retained earnings totaling $ 1.8 million. Operating results for periods after January 1, 2023 are presented in accordance with ASC 326 while prior period amounts continue to be reported in accordance with previously applicable standards and the accounting policies described in Note 2 of the Company's 2022 Form 10-K. In connection with the adoption of ASC 326, the Company revised certain accounting policies and implemented certain accounting policy elections. The revised accounting policies are described below. Loans and Leases Held for Investment Loans and leases held for investment (“loans”) represent financial instruments that management has the intent and the ability to hold for the foreseeable future or until maturity or payoff. Loans are reported at amortized cost, net of the allowance for credit losses. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts, fair value hedge accounting adjustments, as well as deferred loan fees and costs. Accrued interest receivable on loans and leases is reported separately on the Company’s consolidated balance sheets and is excluded from the estimate of credit losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. At the time a loan is 90 days delinquent, it is placed on nonaccrual status unless it is well-secured and in process of collection. Interest income is discontinued on all loans on nonaccrual status. Past-due status is based on the contractual terms of the loan. In all cases, loans are moved to nonaccrual status, or charged off at an earlier date, if collection of principal and interest is considered doubtful. All interest accrued but not received on loans on nonaccrual status is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery methods, until qualifying for return to accrual. Under the cash-basis method, interest income is recorded when the payment is received in cash. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Credit Losses – Loans and Leases The allowance for credit losses is a contra-asset valuation account that is deducted from the amortized cost basis of the loans to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged off and expected to be charged off. The allowance for credit losses on loans and leases is adjusted through the provision for (recovery of) credit losses. Management estimates the allowance balance by using relevant available information from internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. Historical credit loss experience provides the basis for estimation of expected credit losses. Adjustments to historical loss information are made for differences in loan-specific risk characteristics such as changes in economic and business conditions, underwriting standards, portfolio mix, and delinquency level. Considerations related to environmental conditions include reasonable and supportable current and forecasted data related to economic factors such as inflation and unemployment levels, as well as interest rates. The allowance for credit losses is measured on a collective (pool) basis when similar risk characteristics exist. Loans that do not share risk characteristics are evaluated on an individual basis. Loans evaluated individually are not included in the collective evaluation. When management determines that foreclosure is probable or when the borrower is experiencing financial difficulty as of the reporting date and repayment is expected to be provided substantially through the operation or sale of the collateral, expected credit losses are based on the fair value of the collateral at the reporting date, adjusted for estimated selling costs as appropriate. Expected credit losses are estimated over the contractual term of the loans, adjusted for expected prepayments when appropriate. The contractual term excludes expected extensions, renewals, and modifications unless renewal options are included in the original or modified contract at the reporting date and are not unconditionally cancellable by the Company, or management has a reasonable expectation at the reporting date that a loan modification will be made to a borrower experiencing financial difficulty. Additional information related to the factors considered in evaluating credit losses on loans and leases is included in Note 4. Allowance for Credit Losses on Off-Balance Sheet Credit Exposures The Company estimates expected credit losses over the contractual period in which the Company is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The following categories of off-balance sheet credit exposures have been identified: unfunded loan commitments, standby letters of credit, and financial guarantees (collectively, “unfunded lending commitments”). The allowance for credit losses on unfunded lending commitments is adjusted through the provision for (recovery of) credit losses. The estimate may include consideration of the likelihood that funding will occur and an estimate of expected credit losses on commitments expected to be funded, as well as reasonable practical expedients or industry practices to assist in the evaluation of estimated funding amounts. Additional information related to the factors considered in evaluating credit losses on loans and leases is included in Note 4. Allowance for Credit Losses – Investment Securities Held-to-Maturity Expected credit losses on held-to-maturity debt securities are measured on a collective basis by major security type. Accrued interest receivable on held-to-maturity securities is excluded from the estimate of credit losses. The estimate of expected credit losses considers historical credit loss information that is adjusted for current conditions and reasonable and supportable forecasts. The allowance for credit losses on investment securities held-to-maturity is adjusted through the provision for (recovery of) credit losses. Additional information related to the factors considered in evaluating credit losses in the held-to-maturity investment portfolio is included in Note 3. Allowance for Credit Losses – Investment Securities Available-for-Sale For available-for-sale debt securities in an unrealized loss position, the Company first assesses whether it intends to sell, or it is more likely than not that it will be required to sell, the security before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the security’s amortized cost basis is written down to fair value through income. For debt securities available-for-sale that do not meet the aforementioned criteria, the Company evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management considers the extent to which fair value is less than amortized cost, any changes in the rating of the security by a rating agency, and adverse conditions specifically related to the security, among other factors. If this assessment indicates that a credit loss exists, the present value of cash flows expected to be collected from the security are compared to the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis, a credit loss exists and an allowance for credit losses is recorded, limited by the amount that the fair value is less than the amortized cost basis. Any impairment that has not been recorded through an allowance for credit losses is recognized in other comprehensive income. Changes in the allowance for credit losses are recorded in the provision for (recovery of) credit losses. Losses are charged against the allowance when management believes the uncollectibility of an available-for-sale security is confirmed or when either of the criteria regarding intent or requirement to sell is met. Accrued interest receivable on available-for-sale debt securities is excluded from the estimate of credit losses. Additional information related to the factors considered in evaluating credit losses in the available-for-sale investment portfolio is included in Note 3. |
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 unexercised nonqualified stock option grants issued to employees and members of Bancshares’ Board of Directors pursuant to the 2013 Incentive Plan. The following table reflects the weighted average shares used to calculate basic and diluted net income per share for the periods presented. Three Months Ended March 31, 2023 2022 Weighted average shares outstanding 5,839,562 6,157,598 Weighted average director deferred shares 114,783 118,186 Basic shares 5,954,345 6,275,784 Dilutive shares 419,650 420,250 Diluted shares 6,373,995 6,696,034 Three Months Ended March 31, 2023 2022 (Dollars in Thousands, Except Per Share Data) Net income $ 2,072 $ 1,361 Basic net income per share $ 0.35 $ 0.22 Diluted net income per share $ 0.33 $ 0.20 |
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. |
Recently Adopted Accounting Guidance | Recently Adopted Accounting Guidance Reference Rate Reform 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 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. Historically, the Company has utilized LIBOR, among other indexes, as a reference rate for underwriting certain variable rate loans and interest rate hedging instruments. Since the issuance of this guidance, cessation of U.S. dollar LIBOR has been extended to June 30, 2023. Accordingly, in December 2022, the FASB issued ASU 2022-06, Reference Rate Reform (Topic 848) : Deferral of the Sunset Date of Topic 848 , which deferred the sunset date of ASC Topic 848 from December 31, 2022 to December 31, 2024. The amendments in this update provide optional expedients designed to provide relief from accounting analysis and the impacts that may otherwise be required for modifications to agreements necessitated by reference rate reform. The optional expedients provided by the update include guidance related to modifications of contracts within the scope of ASC Topics 310, Receivables , and 470, Debt , that indicates the modifications should be accounted for by prospectively adjusting the effective interest rate. As of March 31, 2023, the Company’s contracts referencing LIBOR are limited to certain variable-rate loan agreements. Management has implemented a process to revise such contracts by converting them to another reference rate at an appropriate time in accordance with pricing reset dates. Due to the prospective nature of the implementation of the revised guidance, the adoption did not have a material impact on the Company’s consolidated financial statements. Portfolio Layer Hedging Method 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 expand the current last-of-layer method of hedge accounting to allow multiple hedged layers of a single closed portfolio. The Company adopted ASU 2022-01 on January 1, 2023. Due to the prospective nature of the implementation of this revised guidance, the adoption of this standard update did not have a material impact on the Company's consolidated financial statements. Intangibles and Goodwill 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 did not have a material effect on the Company’s consolidated financial statements. Current Expected Credit Loss Accounting Guidance ASU 2016-13 , "Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." Issued in June 2016, ASU 2016-13 removed the thresholds that entities previously applied 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 removed all recognition thresholds under previously used incurred loss models and requires entities to recognize an allowance for lifetime expected credit losses. The standard also added 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. In addition, CECL made changes to the accounting for available for sale debt securities. One such change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not they will be required to sell. 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 cumulative-effect adjustment that increased the allowance for credit losses by approximately $ 2.1 million. In addition, the Company recorded a cumulative-effect adjustment that increased other liabilities by $ 0.3 million as an allowance for credit losses for unfunded commitments. In accordance with transition accounting guidance, the transition adjustments were recorded directly to retained earnings (net of tax) during the first quarter of 2023 and did not impact current period earnings. Troubled Debt Restructurings and Vintage Disclosures ASU 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings (“TDRs”) and Vintage Disclosures. ” Issued in March 2022, ASU 2022-02 seeks to improve the decision usefulness of information provided to investors concerning certain loan refinancings, restructurings and write-offs. The ASU eliminated the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL accounting model and enhanced 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 did not have a material impact on the Company’s consolidated financial statements. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects the weighted average shares used to calculate basic and diluted net income per share for the periods presented. Three Months Ended March 31, 2023 2022 Weighted average shares outstanding 5,839,562 6,157,598 Weighted average director deferred shares 114,783 118,186 Basic shares 5,954,345 6,275,784 Dilutive shares 419,650 420,250 Diluted shares 6,373,995 6,696,034 Three Months Ended March 31, 2023 2022 (Dollars in Thousands, Except Per Share Data) Net income $ 2,072 $ 1,361 Basic net income per share $ 0.35 $ 0.22 Diluted net income per share $ 0.33 $ 0.20 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022 were as follows: Available-for-Sale March 31, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 45,498 $ 2 $ ( 3,546 ) $ 41,954 Commercial 11,476 5 ( 499 ) 10,982 Obligations of U.S. government-sponsored agencies 5,114 — ( 739 ) 4,375 Obligations of states and political subdivisions 1,655 — ( 81 ) 1,574 Corporate notes 17,803 — ( 3,149 ) 14,654 U.S. Treasury securities 56,967 — ( 3,499 ) 53,468 Total $ 138,513 $ 7 $ ( 11,513 ) $ 127,007 Held-to-Maturity March 31, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 1,003 $ — $ ( 31 ) $ 972 Obligations of U.S. government-sponsored agencies 601 — ( 42 ) 559 Obligations of states and political subdivisions 78 — ( 10 ) 68 Total $ 1,682 $ — $ ( 83 ) $ 1,599 Available-for-Sale December 31, 2022 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (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 |
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 March 31, 2023 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (Dollars in Thousands) Maturing within one year $ 12,979 $ 12,696 $ — $ — Maturing after one to five years 49,855 46,675 — — Maturing after five to ten years 65,318 58,009 1,443 1,380 Maturing after ten years 10,361 9,627 239 219 Total $ 138,513 $ 127,007 $ 1,682 $ 1,599 |
Schedule of Unrealized Loss on Investments and Fair Value for Securities for Which Allowance for Credit Losses has not been Recorded | The following tables reflect gross unrealized losses and fair value for securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of March 31, 2023 and December 31, 2022. Available-for-Sale March 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 9,554 $ ( 407 ) $ 32,233 $ ( 3,139 ) Commercial 4,026 ( 135 ) 6,257 ( 364 ) Obligations of U.S. government-sponsored agencies — — 4,375 ( 739 ) Obligations of states and political subdivisions — — 1,574 ( 81 ) Corporate notes 2,565 ( 435 ) 12,089 ( 2,714 ) U.S. Treasury securities — — 53,468 ( 3,499 ) Total $ 16,145 $ ( 977 ) $ 109,996 $ ( 10,536 ) Held-to-Maturity March 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ — $ — $ 972 $ ( 31 ) Obligations of U.S. government-sponsored agencies — — 559 ( 42 ) Obligations of states and political subdivisions — — 68 ( 10 ) Total $ — $ — $ 1,599 $ ( 83 ) 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 ) 513 ( 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 ) $ 69,650 $ ( 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 $ 1,126 $ ( 41 ) $ — $ — Obligations of U.S. government-sponsored agencies $ 214 $ ( 7 ) $ 356 $ ( 33 ) Obligations of states and political subdivisions $ 73 $ ( 12 ) $ — $ — Total $ 1,413 $ ( 60 ) $ 356 $ ( 33 ) |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Schedule of Loan Portfolio | As of March 31, 2023 and December 31, 2022, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: March 31, 2023 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 69,398 $ — $ 69,398 Secured by 1-4 family residential properties 85,353 1,269 86,622 Secured by multi-family residential properties 63,368 — 63,368 Secured by non-farm, non-residential properties 198,266 — 198,266 Commercial and industrial loans and leases (1) 65,708 — 65,708 Consumer loans: Direct 5,069 3,366 8,435 Branch retail — 12,222 12,222 Indirect 271,870 — 271,870 Total loans 759,032 16,857 775,889 Allowance for credit losses 9,624 1,975 11,599 Net loans $ 749,408 $ 14,882 $ 764,290 December 31, 2022 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 53,914 $ — $ 53,914 Secured by 1-4 family residential properties 86,518 1,477 87,995 Secured by multi-family residential properties 67,852 — 67,852 Secured by non-farm, non-residential properties 200,156 — 200,156 Commercial and industrial loans and leases (1) 73,546 — 73,546 Consumer loans: Direct 5,145 4,706 9,851 Branch retail — 13,992 13,992 Indirect 266,567 — 266,567 Total loans 753,698 20,175 773,873 Allowance for loan and lease losses 8,057 1,365 9,422 Net loans $ 745,641 $ 18,810 $ 764,451 (1) Includes equipment financing leases, which totaled $ 11.2 million and $ 10.3 million as of March 31, 2023 and December 31, 2022 , respectively. |
Allowance for Credit Losses | The following tables present changes in the allowance for credit losses during the three months ended March 31, 2023 and 2022: As of and for the Three Months Ended March 31, 2023 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for credit losses: Beginning balance $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 866 $ 518 $ 3,154 $ 9,422 Impact of adopting CECL accounting guidance ( 94 ) ( 39 ) ( 85 ) ( 147 ) ( 20 ) 47 628 1,833 2,123 Charge-offs — ( 8 ) — — — ( 215 ) ( 155 ) ( 156 ) ( 534 ) Recoveries — 16 — — — 198 77 28 319 Provision for (recovery of) credit losses 97 ( 32 ) ( 52 ) ( 61 ) ( 117 ) ( 4 ) — 438 269 Ending balance $ 520 $ 769 $ 509 $ 1,762 $ 782 $ 892 $ 1,068 $ 5,297 $ 11,599 As of and for the Three Months Ended March 31, 2022 Construction, Real Estate 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 — ( 2 ) — — — ( 601 ) ( 101 ) ( 25 ) ( 729 ) Recoveries 1 8 — 1 — 128 23 11 172 Provision for (recovery of) loan and lease losses ( 142 ) ( 12 ) 47 ( 185 ) 29 533 295 156 721 Ending balance $ 487 $ 684 $ 484 $ 1,774 $ 889 $ 1,064 $ 521 $ 2,581 $ 8,484 |
Schedule of Loan and Lease Losses and Recorded Investment in Loans by Loan Classification and by Impairment Evaluation | The following table details the allowance for loan and lease losses and recorded investment in loans by loan classification and by impairment evaluation as of December 31, 2022, as determined in accordance with ASC 310, Receivables , prior to the adoption of ASC 326: As of the Year Ended December 31, 2022 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 7 $ — $ — $ 252 $ — $ — $ — $ 259 Collectively evaluated for impairment 517 825 646 1,970 667 886 518 3,154 9,163 Total allowance for loan and lease losses $ 517 $ 832 $ 646 $ 1,970 $ 919 $ 886 $ 518 $ 3,154 $ 9,422 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 582 $ — $ 2,492 $ 2,429 $ 18 $ — $ — $ 5,521 Collectively evaluated for impairment 53,914 87,413 67,852 197,664 71,117 9,833 13,992 266,567 768,352 Total loans receivable $ 53,914 $ 87,995 $ 67,852 $ 200,156 $ 73,546 $ 9,851 $ 13,992 $ 266,567 $ 773,873 |
Loans By Credit Quality Indicators | The tables below illustrate the carrying amount of loans by credit quality indicator and year of origination as of March 31, 2023: March 31, 2023 Loans at Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Commercial: Construction, land development and other land loans Pass $ — $ 31,710 $ 31,359 $ 5,625 $ — $ 704 $ 69,398 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ — $ 31,710 $ 31,359 $ 5,625 $ — $ 704 $ 69,398 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by multi-family residential properties Pass $ 320 $ 16,533 $ 14,459 $ 701 $ 7,325 $ 24,030 $ 63,368 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 320 $ 16,533 $ 14,459 $ 701 $ 7,325 $ 24,030 $ 63,368 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by non-farm, non-residential properties Pass $ 516 $ 37,109 $ 24,459 $ 59,612 $ 19,152 $ 52,144 $ 192,992 Special Mention — — 1,319 546 — 645 2,510 Substandard — — — — — 2,764 2,764 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 516 $ 37,109 $ 25,778 $ 60,158 $ 19,152 $ 55,553 $ 198,266 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans Pass $ 2,332 $ 8,894 $ 17,835 $ 4,992 $ 4,195 $ 24,938 $ 63,186 Special Mention — 190 1,100 249 93 — 1,632 Substandard — 49 328 37 179 297 890 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 2,332 $ 9,133 $ 19,263 $ 5,278 $ 4,467 $ 25,235 $ 65,708 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Total commercial Pass $ 3,168 $ 94,246 $ 88,112 $ 70,930 $ 30,672 $ 101,816 $ 388,944 Special Mention — 190 2,419 795 93 645 4,142 Substandard — 49 328 37 179 3,061 3,654 Doubtful — — — — — — — Loss — — — — — — — $ 3,168 $ 94,485 $ 90,859 $ 71,762 $ 30,944 $ 105,522 $ 396,740 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — March 31, 2023 Loans at Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Total (Dollars in Thousands) Consumer: Secured by 1-4 family residential properties Performing $ 1,762 $ 21,937 $ 16,092 $ 12,095 $ 10,346 $ 23,337 $ 85,569 Non-performing — — — — 164 889 1,053 Subtotal $ 1,762 $ 21,937 $ 16,092 $ 12,095 $ 10,510 $ 24,226 $ 86,622 Current period gross charge-offs $ — $ — $ — $ — $ — $ 8 $ 8 Direct Performing $ 740 $ 2,021 $ 3,378 $ 1,467 $ 533 $ 273 $ 8,412 Non-performing — — 6 — — 17 23 Subtotal $ 740 $ 2,021 $ 3,384 $ 1,467 $ 533 $ 290 $ 8,435 Current period gross charge-offs $ — $ — $ 149 $ 47 $ 1 $ 18 $ 215 Branch retail Performing $ — $ — $ 3,215 $ 3,743 $ 2,173 $ 3,077 $ 12,208 Non-performing — — — 14 — — 14 Subtotal $ — $ — $ 3,215 $ 3,757 $ 2,173 $ 3,077 $ 12,222 Current period gross charge-offs $ — $ — $ 40 $ 44 $ 20 $ 51 $ 155 Indirect Performing $ 18,453 $ 102,067 $ 76,676 $ 60,415 $ 6,674 $ 7,560 $ 271,845 Non-performing — — — 11 14 — 25 Subtotal $ 18,453 $ 102,067 $ 76,676 $ 60,426 $ 6,688 $ 7,560 $ 271,870 Current period gross charge-offs $ — $ 45 $ 42 $ 40 $ — $ 29 $ 156 Total consumer: Performing $ 20,955 $ 126,025 $ 99,361 $ 77,720 $ 19,726 $ 34,247 $ 378,034 Non-performing — — 6 25 178 906 1,115 $ 20,955 $ 126,025 $ 99,367 $ 77,745 $ 19,904 $ 35,153 $ 379,149 Current period gross charge-offs $ — $ 45 $ 231 $ 131 $ 21 $ 106 $ 534 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 $ 53,914 $ — $ — $ 53,914 Secured by multi-family residential properties 67,852 — — 67,852 Secured by non-farm, non-residential properties 197,004 651 2,501 200,156 Commercial and industrial loans 70,500 — 3,046 73,546 Total $ 389,270 $ 651 $ 5,547 $ 395,468 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 $ 86,871 $ 1,124 $ 87,995 Consumer loans: Direct 9,805 46 9,851 Branch retail 13,960 32 13,992 Indirect 266,496 71 266,567 Total $ 377,132 $ 1,273 $ 378,405 As a percentage of total loans 99.66 % 0.34 % 100.00 % |
Aging Analysis of Past Due Loans | The following table provides an aging analysis of past due loans by class as of March 31, 2023: As of March 31, 2023 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 69,398 $ 69,398 $ — Secured by 1-4 family residential 262 18 56 336 86,286 86,622 — Secured by multi-family residential — — — — 63,368 63,368 — Secured by non-farm, non-residential — — — — 198,266 198,266 — Commercial and industrial loans 3 — 173 176 65,532 65,708 — Consumer loans: Direct 97 45 24 166 8,269 8,435 — Branch retail 92 23 14 129 12,093 12,222 — Indirect 179 — 25 204 271,666 271,870 — Total $ 633 $ 86 $ 292 $ 1,011 $ 774,878 $ 775,889 $ — As a percentage of total loans 0.08 % 0.01 % 0.04 % 0.13 % 99.87 % 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 $ — $ — $ — $ — $ 53,914 $ 53,914 $ — Secured by 1-4 family residential 801 87 78 966 87,029 87,995 — Secured by multi-family residential — — — — 67,852 67,852 — Secured by non-farm, non-residential 137 — — 137 200,019 200,156 — Commercial and industrial loans 61 — 300 361 73,185 73,546 — Consumer loans: Direct 251 50 30 330 9,521 9,851 — Branch retail 258 85 32 375 13,617 13,992 — Indirect 186 55 71 312 266,255 266,567 — Total $ 1,694 $ 277 $ 511 $ 2,481 $ 771,392 $ 773,873 $ — As a percentage of total loans 0.21 % 0.04 % 0.07 % 0.32 % 99.68 % 100.00 % |
Non-accruing Loans | March 31, 2023. Also presented is the balance of loans on nonaccrual status at March 31, 2023 for which there was no related allowance for credit losses recorded. Loans on Non-Accrual Status March 31, 2023 (Dollars in Thousands) Total nonaccrual Nonaccrual loans with no allowance for credit losses Loans past due 90 days or more and still accruing Loans secured by real estate: Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 856 483 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial loans 296 113 — Consumer loans: — Direct 23 17 — Branch retail 14 — — Indirect 25 — — Total loans $ 1,214 $ 613 $ — The following table provides an analysis of nonaccruing loans by portfolio segment as of December 31, 2022: Loans on Non-Accrual Status December 31, 2022 (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — Secured by 1-4 family residential properties 914 Secured by multi-family residential properties — Secured by non-farm, non-residential properties — Commercial and industrial loans 605 Consumer loans: Direct 29 Branch retail 32 Indirect 71 Total loans $ 1,651 |
Loans Individually Evaluated, as well as any Related Allowance for Loans and Lease Losses | The following table presents impaired loans as of December 31, 2022 as determined under ASC 310 prior to the adoption of ASC 326. Impaired loans generally include nonaccrual loans and other loans deemed to be impaired but that continue to accrue interest. Presented are the carrying amount, unpaid principal balance and related allowance of impaired loans as of December 31, 2022 by portfolio segment: 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 The following table details the average recorded investment and the amount of interest income recognized and received for the three months ended March 31, 2022, respectively, related to impaired loans as determined under ASC 310 prior to the adoption of ASC 326: Three Months Ended March 31, 2022 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 642 2 1 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,043 13 15 Commercial and industrial 739 5 5 Direct consumer 20 — 1 Total $ 2,444 $ 20 $ 22 |
Other Real Estate Owned and R_2
Other Real Estate Owned and Repossessed Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Real Estate [Abstract] | |
Summary of Foreclosed Property Activity | The following table summarizes foreclosed property activity as of the three months ended March 31, 2023 and 2022 : March 31, 2023 March 31, (Dollars in Thousands) Beginning balance $ 686 $ 2,149 Additions — — Sales proceeds — ( 1,431 ) Gross gains — 183 Gross losses — ( 27 ) Net gains — 156 Impairment ( 69 ) — Ending balance $ 617 $ 874 |
Summary of Repossessed Assets Activity | The following table summarizes repossessed asset activity as of the three months ended March 31, 2023 and 2022 : March 31, 2023 March 31, (Dollars in Thousands) Beginning balance $ 83 $ 154 Transfers from loans 490 51 Sales proceeds ( 128 ) ( 100 ) Gross gains — — Gross losses ( 180 ) ( 44 ) Net losses ( 180 ) ( 44 ) Impairment — — Ending balance $ 265 $ 61 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The Company’s goodwill and other intangible assets (carrying basis and accumulated amortization) as of March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 December 31, 2022 (Dollars in Thousands) Goodwill $ 7,435 $ 7,435 Core deposit intangible: Gross carrying amount 2,048 2,048 Accumulated amortization ( 1,737 ) ( 1,682 ) Core deposit intangible, net 311 366 Total $ 7,746 $ 7,801 |
Schedule of Estimated Remaining Amortization Expense | The Company’s estimated remaining amortization expense on intangible assets as of March 31, 2023 was as follows: Amortization Expense (Dollars in Thousands) 2023 $ 140 2024 122 2025 49 Total $ 311 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Borrowings | The table below provides additional information related to the Notes as of and for the three months ended March 31, 2023 and 2022. March 31, March 31, 2023 2022 (Dollars in Thousands) Balance at period-end $ 10,744 $ 10,671 Average balance during the period $ 10,738 $ 10,655 Maximum month-end balance during the year $ 10,744 $ 10,671 Average rate paid during the period, including amortization of debt issuance costs 4.20 % 4.20 % Weighted average remaining maturity (in years) 8.50 9.50 |
Schedule of Available Unused Lines of Credit | As of March 31, 2023 and December 31, 2022, the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements March 31, 2023 December 31, 2022 Correspondent banks None $ 28.0 million $ 45.0 million FHLB advances (1) Subject to collateral $ 243.4 million $ 246.8 million Federal Reserve Subject to collateral (2) (2) (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. The total lendable collateral value of assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 74.2 million and $ 68.2 million as of March 31, 2023 and December 31, 2022, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 55.0 million and $ 50.0 million as of March 31, 2023 and December 31, 2022, respectively, leaving an excess of collateral of $ 19.2 million and $ 18.2 million, respectively, available to utilize for additional credit as of the respective dates. The Company also has the ability to pledge additional assets to increase the availability of borrowings. (2) The Company has access to the Federal Reserve’s discount window and its Bank Term Funding Program (BTFP), the latter of which was established during the three months ended March 31, 2023 in response to the liquidity events that have occurred in the banking industry. Both the discount window and the BTFP allow borrowing on pledged collateral that includes eligible investment securities and, in certain circumstances, eligible loans. The discount window allows borrowing under 90-day terms, while borrowing terms under the BTFP are up to one year. The BTFP also allows investment securities to be pledged as collateral at 100 % of par value when par value is greater than fair value. |
Stock Awards (Tables)
Stock Awards (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | The following table summarizes the Company’s stock option activity for the periods presented. Three Months Ended March 31, 2023 March 31, 2022 Number of Average Number of Average Options: Outstanding, beginning of period 419,650 $ 9.79 420,250 $ 9.79 Granted — — — — Exercised — — — — Expired — — — — Forfeited — — 600 10.86 Options outstanding, end of period 419,650 $ 9.79 419,650 $ 9.79 Options exercisable, end of period 419,650 $ 9.79 415,916 $ 9.77 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Components of Lease Expense | The following table provides a summary of the components of lease expense, as well as the reporting location in the interim condensed consolidated statements of operations, for the three months ended March 31, 2023 and 2022: Location in the Condensed Three Months Ended Consolidated Statements March 31, March 31, (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 108 $ 108 Operating lease income (2) Lease income $ 234 $ 214 (1) Includes short-term lease costs. For the three months ended March 31, 2023 and 2022 , 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 interim condensed consolidated balance sheet as of March 31, 2023 and December 31, 2022: Location in Consolidated March 31, December 31, (Dollars in Operating lease right-of-use assets Other assets $ 1,791 $ 1,883 Operating lease liabilities Other liabilities $ 1,870 $ 1,961 Weighted-average remaining lease term (in years) 4.78 5.03 Weighted-average discount rate 3.30 % 3.30 % The following table provides supplemental lease information for the interim condensed consolidated statements of cash flows for the three months ended March 31, 2023 and 2022: Three Months Ended March 31, March 31, (Dollars in Thousands) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 107 $ 108 |
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 March 31, 2023: Minimum (Dollars in Thousands) 2023 324 2024 438 2025 339 2026 346 2027 353 2028 and thereafter 238 Total future minimum lease payments $ 2,038 Less: Imputed interest 168 Total operating lease liabilities $ 1,870 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 table below 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. As of December 31, 2022 Notional Estimated Fair Value 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 Total fair value hedges 1,101 Cash flow hedges: Interest rate swaps related to variable-rate money market deposit accounts 20,000 1,205 Interest rate swaps related to FHLB advances — — Total cash flow hedges 1,205 Total hedges designated as hedging instruments, net $ 2,306 (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 Hedging Derivative Instruments' Effect on Company's Interim Condensed Consolidated Statement of Operations | The effects, which include the reclassification of unrealized gains on terminated swap contracts, are presented as either an increase or decrease to income before income taxes in the relevant caption of the Company’s interim condensed consolidated statements of operations. Location in the Condensed Three Months Ended Consolidated Statements March 31, March 31, (Dollars in Thousands) Interest income Interest and fees on loans $ 168 $ ( 59 ) Interest expense Interest on deposits 36 ( 30 ) Interest expense Interest on short-term borrowings 136 ( 79 ) Net increase (decrease) to income before income taxes $ 340 $ ( 168 ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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. All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2023 Total interest income $ 11,506 $ 659 $ 1 $ ( 206 ) $ 11,960 Total interest expense 2,412 205 115 ( 206 ) 2,526 Net interest income 9,094 454 ( 114 ) — 9,434 Provision for credit losses 269 — — — 269 Net interest income after provision 8,825 454 ( 114 ) — 9,165 Total non-interest income 831 17 2,397 ( 2,416 ) 829 Total non-interest expense 6,671 320 298 ( 19 ) 7,270 Income before income taxes 2,985 151 1,985 ( 2,397 ) 2,724 Provision for income taxes 701 38 ( 87 ) — 652 Net income $ 2,284 $ 113 $ 2,072 $ ( 2,397 ) $ 2,072 Other significant items: Total assets $ 1,025,683 $ 16,128 $ 95,018 $ ( 110,171 ) $ 1,026,658 Total investment securities 128,689 — — — 128,689 Total loans, net 764,347 14,882 — ( 14,939 ) 764,290 Goodwill and core deposit intangible, net 7,746 — — — 7,746 Investment in subsidiaries — — 92,210 ( 92,210 ) — Fixed asset additions 139 — — — 139 Depreciation and amortization expense 405 7 — — 412 Total interest income from external customers 11,301 659 — — 11,960 Total interest income from affiliates 205 — 1 ( 206 ) — All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2022 Total interest income $ 8,125 $ 1,589 $ 1 $ ( 334 ) $ 9,381 Total interest expense 559 333 114 ( 334 ) 672 Net interest income 7,566 1,256 ( 113 ) — 8,709 Provision for loan and lease losses ( 135 ) 856 — — 721 Net interest income after provision 7,701 400 ( 113 ) — 7,988 Total non-interest income 855 70 1,648 ( 1,744 ) 829 Total non-interest expense 6,285 544 296 ( 69 ) 7,056 Income (loss) before income taxes 2,271 ( 74 ) 1,239 ( 1,675 ) 1,761 Provision for income taxes 502 ( 19 ) ( 83 ) — 400 Net income (loss) $ 1,769 $ ( 55 ) $ 1,322 $ ( 1,675 ) $ 1,361 Other significant items: Total assets $ 972,318 $ 33,518 $ 104,414 $ ( 141,604 ) $ 968,646 Total investment securities 137,655 — 81 — 137,736 Total loans, net 669,569 32,237 — ( 31,960 ) 669,846 Goodwill and core deposit intangible, net 7,996 — — — 7,996 Investment in subsidiaries — — 93,963 ( 93,963 ) — Fixed asset additions 118 0 — — 118 Depreciation and amortization expense 377 10 — — 387 Total interest income from external customers 7,792 1,589 — — 9,381 Total interest income from affiliates 333 — 1 ( 334 ) — |
Other Operating Income and Ex_2
Other Operating Income and Expense (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Income and Expenses [Abstract] | |
Other Operating Income | Other operating income for the three months ended March 31, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (Dollars in Thousands) Bank-owned life insurance $ 114 $ 110 ATM fee income 112 134 Gain on sales of premises and equipment and other assets — 19 Other income 87 53 Total $ 313 $ 316 |
Other Operating Expense | Other operating expense for the three months ended March 31, 2023 and 2022 consisted of the following: Three Months Ended March 31, 2023 2022 (Dollars in Thousands) Postage, stationery and supplies $ 161 $ 164 Telephone/data communication 169 171 Collection and recoveries 91 47 Directors fees 95 103 Software amortization 124 99 Other real estate/foreclosure expense, net 6 ( 145 ) Other expense 574 509 Total $ 1,220 $ 948 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitment and Contingent Liabilities | A summary of these commitments and contingent liabilities is presented below: March 31, December 31, (Dollars in Thousands) Standby letters of credit $ — $ — Standby performance letters of credit $ 531 $ 556 Commitments to extend credit $ 187,603 $ 186,169 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
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 March 31, 2023 and December 31, 2022. Fair Value Measurements as of March 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 41,954 $ — $ 41,954 $ — Commercial 10,982 — 10,982 — Obligations of U.S. government-sponsored agencies 4,375 — 4,375 — Obligations of states and political subdivisions 1,574 — 1,574 — Corporate notes 14,654 — 14,654 — U.S. Treasury securities 53,468 53,468 — — Fair Value Measurements as of December 31, 2022 Using Totals At Quoted 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 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 March 31, 2023 and December 31, 2022: Fair Value Measurements as of March 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Collateral dependent loans $ 78 $ — $ — $ 78 OREO and other assets held-for-sale 617 — — 617 Fair Value Measurements as of December 31, 2022 Using Totals At Quoted Significant Significant (Dollars in Thousands) Impaired loans $ 108 $ — $ — $ 108 OREO and other assets held-for-sale 686 — — 686 |
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: Collateral dependent loans $ 78 Multiple data points, Appraisal comparability 9 %- 10 % ( 9.5 %) OREO and other assets held-for-sale $ 617 Discount to appraised Appraisal comparability 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 March 31, 2023 and December 31, 2022 were as follows: March 31, 2023 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 68,427 $ 68,427 $ 68,427 $ — $ — Investment securities available-for-sale 127,007 127,007 53,468 73,539 — Investment securities held-to-maturity 1,682 1,599 — 1,599 — Federal funds sold 263 263 — 263 — Federal Home Loan Bank stock 1,590 1,590 — — 1,590 Loans, net of allowance for credit losses 764,290 733,467 — — 733,467 Liabilities: Deposits 897,885 826,524 — 826,524 — Short-term borrowings 25,000 25,000 — 25,000 — Long-term borrowings 10,744 9,885 — 9,885 — 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 and lease 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 — |
General - Additional Informatio
General - Additional Information (Details) | 3 Months Ended | |
Mar. 31, 2023 Segment | Sep. 30, 2021 Branch | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of reportable segments | Segment | 2 | |
ALC [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Number of office closed | Branch | 20 |
Basis of Presentation - Basic a
Basis of Presentation - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Earning per share basic and diluted [Abstract] | ||
Weighted average shares outstanding | 5,839,562 | 6,157,598 |
Weighted average director deferred shares | 114,783 | 118,186 |
Basic shares | 5,954,345 | 6,275,784 |
Dilutive shares | 419,650 | 420,250 |
Diluted shares | 6,373,995 | 6,696,034 |
Net income | $ 2,072 | $ 1,361 |
Basic net income per share | $ 0.35 | $ 0.22 |
Diluted net income per share | $ 0.33 | $ 0.20 |
Basis of Presentation - Additio
Basis of Presentation - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Transition adjustment increase in allowance for credit losses | $ 2,100 | ||||
Decrease to retained earnings | $ 84,757 | $ 85,135 | $ 87,807 | $ 90,064 | |
Impact of Adopting CECL [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Transition adjustment increase in allowance for credit losses | 2,400 | ||||
Decrease to retained earnings | (1,811) | ||||
Retained Earnings [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Decrease to retained earnings | 104,427 | $ 104,460 | $ 99,604 | $ 98,428 | |
Retained Earnings [Member] | Impact of Adopting CECL [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Decrease to retained earnings | $ (1,811) | 1,800 | |||
Reserve for Unfunded Commitments [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Transition adjustment increase in allowance for credit losses | $ 300 |
Restructuring Charges - Additio
Restructuring Charges - Additional Information (Details) | 3 Months Ended |
Sep. 30, 2021 Branch | |
ALC [Member] | |
Restructuring Cost And Reserve [Line Items] | |
Number of office closed | 20 |
Investment Securities - Availab
Investment Securities - Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | $ 138,513 | $ 141,883 |
Available-for-sale, gross unrealized gains | 7 | 8 |
Available-for-sale, gross unrealized losses | (11,513) | (11,096) |
Investment securities available-for-sale, at fair value | 127,007 | 130,795 |
Held-to-maturity, amortized cost | 1,682 | 1,862 |
Held-to-maturity, gross unrealized losses | (83) | (93) |
Held-to-maturity, estimated fair value | 1,599 | 1,769 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 45,498 | 47,659 |
Available-for-sale, gross unrealized gains | 2 | 2 |
Available-for-sale, gross unrealized losses | (3,546) | (3,704) |
Investment securities available-for-sale, at fair value | 41,954 | 43,957 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 11,476 | 12,169 |
Available-for-sale, gross unrealized gains | 5 | 4 |
Available-for-sale, gross unrealized losses | (499) | (480) |
Investment securities available-for-sale, at fair value | 10,982 | 11,693 |
Held-to-maturity, amortized cost | 1,003 | 1,167 |
Held-to-maturity, gross unrealized losses | (31) | (41) |
Held-to-maturity, estimated fair value | 972 | 1,126 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 5,114 | 5,116 |
Available-for-sale, gross unrealized losses | (739) | (846) |
Investment securities available-for-sale, at fair value | 4,375 | 4,270 |
Held-to-maturity, amortized cost | 601 | 610 |
Held-to-maturity, gross unrealized losses | (42) | (40) |
Held-to-maturity, estimated fair value | 559 | 570 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 1,655 | 2,166 |
Available-for-sale, gross unrealized losses | (81) | (94) |
Investment securities available-for-sale, at fair value | 1,574 | 2,072 |
Held-to-maturity, amortized cost | 78 | 85 |
Held-to-maturity, gross unrealized losses | (10) | (12) |
Held-to-maturity, estimated fair value | 68 | 73 |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 17,803 | 17,817 |
Available-for-sale, gross unrealized gains | 2 | |
Available-for-sale, gross unrealized losses | (3,149) | (1,898) |
Investment securities available-for-sale, at fair value | 14,654 | 15,921 |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 56,967 | 56,956 |
Available-for-sale, gross unrealized losses | (3,499) | (4,074) |
Investment securities available-for-sale, at fair value | $ 53,468 | $ 52,882 |
Investment Securities - Schedul
Investment Securities - Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale, maturing within one year, amortized cost | $ 12,979 | |
Available-for-sale, maturing after one to five years, amortized cost | 49,855 | |
Available-for-sale, maturing after five to ten years, amortized cost | 65,318 | |
Available-for-sale, maturing after ten years, amortized cost | 10,361 | |
Available-for-sale, amortized cost | 138,513 | $ 141,883 |
Available-for-sale, maturing within one year, estimated fair value | 12,696 | |
Available-for-sale, maturing after one to five years, estimated fair value | 46,675 | |
Available-for-sale, maturing after five to ten years, estimated fair value | 58,009 | |
Available-for-sale, maturing after ten years, estimated fair value | 9,627 | |
Available-for-sale, amortized cost | 127,007 | 130,795 |
Held-to-maturity, maturing after five to ten years, amortized cost | 1,443 | |
Held-to-maturity, maturing after ten years, amortized cost | 239 | |
Held-to-maturity, amortized cost | 1,682 | 1,862 |
Held-to-maturity, maturity after five to ten years, estimated fair value | 1,380 | |
Held-to-maturity, maturing after ten years, estimated fair value | 219 | |
Held-to-maturity, amortized cost | $ 1,599 | $ 1,769 |
Investment Securities - Sched_2
Investment Securities - Schedule of Unrealized Loss on Investments and Fair Value for Securities for Which Allowance for Credit Losses has not been Recorded (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | $ 16,145 | $ 59,240 |
Available-for-sale, less than 12 months, unrealized losses | (977) | (2,946) |
Available-for-sale, 12 months or more, fair value | 109,996 | 69,650 |
Available-for-sale, 12 months or more, unrealized losses | (10,536) | (8,150) |
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 | 1,599 | 356 |
Held-to-maturity, 12 months or more, unrealized losses | (83) | (33) |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 9,554 | 19,876 |
Available-for-sale, less than 12 months, unrealized losses | (407) | (952) |
Available-for-sale, 12 months or more, fair value | 32,233 | 23,903 |
Available-for-sale, 12 months or more, unrealized losses | (3,139) | (2,752) |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 4,026 | 9,720 |
Available-for-sale, less than 12 months, unrealized losses | (135) | (357) |
Available-for-sale, 12 months or more, fair value | 6,257 | 1,247 |
Available-for-sale, 12 months or more, unrealized losses | (364) | (123) |
Held-to-maturity, less than 12 months, fair value | 1,126 | |
Held-to-maturity, less than 12 months, unrealized losses | (41) | |
Held-to-maturity, 12 months or more, fair value | 972 | |
Held-to-maturity, 12 months or more, unrealized losses | (31) | |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, 12 months or more, fair value | 4,375 | 4,270 |
Available-for-sale, 12 months or more, unrealized losses | (739) | (846) |
Held-to-maturity, less than 12 months, fair value | 214 | |
Held-to-maturity, less than 12 months, unrealized losses | (7) | |
Held-to-maturity, 12 months or more, fair value | 559 | 356 |
Held-to-maturity, 12 months or more, unrealized losses | (42) | (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 | |
Available-for-sale, less than 12 months, unrealized losses | (41) | |
Available-for-sale, 12 months or more, fair value | 1,574 | 513 |
Available-for-sale, 12 months or more, unrealized losses | (81) | (53) |
Held-to-maturity, less than 12 months, fair value | 73 | |
Held-to-maturity, less than 12 months, unrealized losses | (12) | |
Held-to-maturity, 12 months or more, fair value | 68 | |
Held-to-maturity, 12 months or more, unrealized losses | (10) | |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 2,565 | 6,845 |
Available-for-sale, less than 12 months, unrealized losses | (435) | (898) |
Available-for-sale, 12 months or more, fair value | 12,089 | 8,075 |
Available-for-sale, 12 months or more, unrealized losses | (2,714) | (1,000) |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 21,240 | |
Available-for-sale, less than 12 months, unrealized losses | (698) | |
Available-for-sale, 12 months or more, fair value | 53,468 | 31,642 |
Available-for-sale, 12 months or more, unrealized losses | $ (3,499) | $ (3,376) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Mar. 31, 2023 USD ($) DebtSecurities | Jan. 01, 2023 USD ($) | Dec. 31, 2022 USD ($) DebtSecurities |
Investments, Debt and Equity Securities [Abstract] | |||
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Greater than or Equal to One Year | DebtSecurities | 91 | 37 | |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | DebtSecurities | 21 | 75 | |
Debt Securities, Available-for-sale, Restricted | $ | $ 51,900,000 | $ 54,700,000 | |
Allowance for credit losses, held-to-maturity | $ | $ 0 | $ 0 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | |
Loans | $ 775,889 | $ 773,873 | |||
Loans, allowance for credit losses | 11,599 | 9,422 | $ 8,484 | $ 8,320 | |
Net loans and leases held for investment | 764,290 | 764,451 | 669,846 | ||
Construction, Land Development and Other Land Loans [Member] | |||||
Loans, allowance for credit losses | 520 | 517 | 487 | 628 | |
Secured By Multi family Residential Properties [Member] | |||||
Loans, allowance for credit losses | 509 | 646 | 484 | 437 | |
Secured By Non-farm Non residential Properties [Member] | |||||
Loans, allowance for credit losses | 1,762 | 1,970 | 1,774 | 1,958 | |
FUSB [Member] | |||||
Loans | 759,032 | 753,698 | |||
Loans, allowance for credit losses | 9,624 | 8,057 | |||
Net loans and leases held for investment | 749,408 | 745,641 | |||
ALC [Member] | |||||
Loans | 16,857 | 20,175 | |||
Loans, allowance for credit losses | 1,975 | 1,365 | |||
Net loans and leases held for investment | 14,882 | 18,810 | |||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Loans | 69,398 | 53,914 | |||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 86,622 | 87,995 | |||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | |||||
Loans | 63,368 | 67,852 | |||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |||||
Loans | 198,266 | 200,156 | |||
Real Estate [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Loans | 69,398 | 53,914 | |||
Real Estate [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 85,353 | 86,518 | |||
Real Estate [Member] | FUSB [Member] | Secured By Multi family Residential Properties [Member] | |||||
Loans | 63,368 | 67,852 | |||
Real Estate [Member] | FUSB [Member] | Secured By Non-farm Non residential Properties [Member] | |||||
Loans | 198,266 | 200,156 | |||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 1,269 | 1,477 | |||
Commercial and Industrial Loans and Leases [Member] | |||||
Loans | [1] | 65,708 | 73,546 | ||
Commercial and Industrial Loans and Leases [Member] | FUSB [Member] | |||||
Loans | [1] | 65,708 | 73,546 | ||
Consumer Portfolio Segment [Member] | |||||
Loans | 379,149 | ||||
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 86,622 | ||||
Consumer Portfolio Segment [Member] | Direct [Member] | |||||
Loans | 8,435 | 9,851 | |||
Loans, allowance for credit losses | 892 | 866 | 1,064 | 1,004 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||||
Loans | 12,222 | 13,992 | |||
Loans, allowance for credit losses | 1,068 | 518 | 521 | 304 | |
Consumer Portfolio Segment [Member] | Indirect [Member] | |||||
Loans | 271,870 | 266,567 | |||
Loans, allowance for credit losses | 5,297 | 3,154 | $ 2,581 | $ 2,439 | |
Consumer Portfolio Segment [Member] | FUSB [Member] | Direct [Member] | |||||
Loans | 5,069 | 5,145 | |||
Consumer Portfolio Segment [Member] | FUSB [Member] | Indirect [Member] | |||||
Loans | 271,870 | 266,567 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct [Member] | |||||
Loans | 3,366 | 4,706 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | |||||
Loans | $ 12,222 | $ 13,992 | |||
[1] Includes equipment financing leases, which totaled $ 11.2 million and $ 10.3 million as of March 31, 2023 and December 31, 2022 , respectively. |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses - Schedule of Loan Portfolio (Parenthetical) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans | $ 775,889 | $ 773,873 |
Equipment Financing Leases [Member] | ||
Loans | $ 11,200 | $ 10,300 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses - Additional Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2023 | Dec. 31, 2022 | Jan. 01, 2023 | Mar. 31, 2022 | Dec. 31, 2021 | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Loans and Leases Receivable, Related Parties, Ending Balance | $ 100,000 | $ 200,000 | |||
Loans and Leases Receivable, Related Parties, Additions | 0 | 0 | |||
Loans and Leases Receivable, Related Parties, Proceeds | 0 | 100,000 | |||
Transition adjustment increase in allowance for credit losses | $ 2,100,000 | ||||
Decrease to retained earnings | 84,757,000 | 85,135,000 | $ 87,807,000 | $ 90,064,000 | |
Minimum commitment required for evaluating idividually | 500,000 | ||||
Commitment required for evaluating individually at management discretion | 500,000 | ||||
Loans, allowance for credit losses | 11,599,000 | 9,422,000 | 8,484,000 | 8,320,000 | |
Retained Earnings [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Decrease to retained earnings | 104,427,000 | 104,460,000 | $ 99,604,000 | $ 98,428,000 | |
Impact of Adopting CECL [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Transition adjustment increase in allowance for credit losses | 2,400,000 | ||||
Decrease to retained earnings | (1,811,000) | ||||
Loans, allowance for credit losses | 2,123,000 | 2,100,000 | |||
Additional increase to allowance for credit losses | 300,000 | ||||
Impact of Adopting CECL [Member] | Retained Earnings [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Decrease to retained earnings | (1,811,000) | 1,800,000 | |||
Reserve for Unfunded Commitments [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Transition adjustment increase in allowance for credit losses | 300,000 | ||||
Loans, allowance for credit losses | $ 300,000 | $ 0 | |||
Reserve for Unfunded Commitments [Member] | Impact of Adopting CECL [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Loans, allowance for credit losses | $ 300,000 | ||||
Real Estate [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Percentage of Loan Portfolio | 53.80% | 53% | |||
Pledged as Collateral [Member] | FHLB Borrowings [Member] | |||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||
Loans pledged as collateral | $ 112,100,000 | $ 100,200,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Beginning balance | $ 9,422 | $ 8,320 | |
Charge-offs | (534) | (729) | |
Recoveries | 319 | 172 | |
Provision for (recovery of) credit losses | 269 | 721 | |
Ending balance | 11,599 | 8,484 | |
Loans | 775,889 | $ 773,873 | |
Impact of Adopting CECL [Member] | |||
Ending balance | 2,123 | ||
Construction, Land Development and Other Land Loans [Member] | |||
Beginning balance | 517 | 628 | |
Recoveries | 1 | ||
Provision for (recovery of) credit losses | 97 | (142) | |
Ending balance | 520 | 487 | |
Construction, Land Development and Other Land Loans [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (94) | ||
Secured by Real Estate 1-4 Family Residential Properties [Member] | |||
Beginning balance | 832 | 690 | |
Charge-offs | (8) | (2) | |
Recoveries | 16 | 8 | |
Provision for (recovery of) credit losses | (32) | (12) | |
Ending balance | 769 | 684 | |
Secured by Real Estate 1-4 Family Residential Properties [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (39) | ||
Secured By Multi family Residential Properties [Member] | |||
Beginning balance | 646 | 437 | |
Provision for (recovery of) credit losses | (52) | 47 | |
Ending balance | 509 | 484 | |
Secured By Multi family Residential Properties [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (85) | ||
Secured By Non-farm Non residential Properties [Member] | |||
Beginning balance | 1,970 | 1,958 | |
Recoveries | 1 | ||
Provision for (recovery of) credit losses | (61) | (185) | |
Ending balance | 1,762 | 1,774 | |
Secured By Non-farm Non residential Properties [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (147) | ||
Commercial and Industrial Loans [Member] | |||
Beginning balance | 919 | 860 | |
Provision for (recovery of) credit losses | (117) | 29 | |
Ending balance | 782 | 889 | |
Loans | 65,708 | 73,546 | |
Commercial and Industrial Loans [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (20) | ||
Consumer Portfolio Segment [Member] | |||
Loans | 379,149 | ||
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 86,622 | ||
Consumer Portfolio Segment [Member] | Direct [Member] | |||
Beginning balance | 866 | 1,004 | |
Charge-offs | (215) | (601) | |
Recoveries | 198 | 128 | |
Provision for (recovery of) credit losses | (4) | 533 | |
Ending balance | 892 | 1,064 | |
Loans | 8,435 | 9,851 | |
Consumer Portfolio Segment [Member] | Direct [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 47 | ||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||
Beginning balance | 518 | 304 | |
Charge-offs | (155) | (101) | |
Recoveries | 77 | 23 | |
Provision for (recovery of) credit losses | 295 | ||
Ending balance | 1,068 | 521 | |
Loans | 12,222 | 13,992 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 628 | ||
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | |||
Beginning balance | 3,154 | 2,439 | |
Charge-offs | (156) | (25) | |
Recoveries | 28 | 11 | |
Provision for (recovery of) credit losses | 438 | 156 | |
Ending balance | 5,297 | $ 2,581 | |
Loans | 271,870 | $ 266,567 | |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | $ 1,833 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses - Schedule of Amortized Cost Basis of Collateral Dependent Loans (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Total loans individually evaluated | $ 3,676 |
Direct Consumer [Member] | |
Total loans individually evaluated | 18 |
Real Estate [Member] | Secured by Real Estate 1-4 Family Residential Properties [Member] | |
Total loans individually evaluated | 545 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |
Total loans individually evaluated | 2,776 |
Commercial And Industrial Loans [Member] | |
Total loans individually evaluated | 337 |
Real Estate [Member] | |
Total loans individually evaluated | 3,321 |
Real Estate [Member] | Real Estate [Member] | Secured by Real Estate 1-4 Family Residential Properties [Member] | |
Total loans individually evaluated | 545 |
Real Estate [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |
Total loans individually evaluated | 2,776 |
Other [Member] | |
Total loans individually evaluated | 355 |
Other [Member] | Direct Consumer [Member] | |
Total loans individually evaluated | 18 |
Other [Member] | Commercial And Industrial Loans [Member] | |
Total loans individually evaluated | $ 337 |
Loans and Allowance for Credi_7
Loans and Allowance for Credit Losses - Schedule of Loan and Lease Losses and Recorded Investment in Loans by Loan Classification and by Impairment Evaluation (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loans, allowance for credit losses | $ 11,599 | $ 9,422 | $ 8,484 | $ 8,320 |
Loans | 775,889 | 773,873 | ||
In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Individually evaluated for impairment | 259 | |||
Collectively evaluated for impairment | 9,163 | |||
Loans, allowance for credit losses | 9,422 | |||
Individually evaluated for impairment | 5,521 | |||
Collectively evaluated for impairment | 768,352 | |||
Loans | 773,873 | |||
Construction, Land Development and Other Land Loans [Member] | ||||
Loans, allowance for credit losses | 520 | 517 | 487 | 628 |
Construction, Land Development and Other Land Loans [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Collectively evaluated for impairment | 517 | |||
Loans, allowance for credit losses | 517 | |||
Collectively evaluated for impairment | 53,914 | |||
Loans | 53,914 | |||
Secured by Real Estate 1-4 Family Residential Properties [Member] | ||||
Loans, allowance for credit losses | 769 | 832 | 684 | 690 |
Secured by Real Estate 1-4 Family Residential Properties [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Individually evaluated for impairment | 7 | |||
Collectively evaluated for impairment | 825 | |||
Loans, allowance for credit losses | 832 | |||
Individually evaluated for impairment | 582 | |||
Collectively evaluated for impairment | 87,413 | |||
Loans | 87,995 | |||
Secured By Multi family Residential Properties [Member] | ||||
Loans, allowance for credit losses | 509 | 646 | 484 | 437 |
Secured By Multi family Residential Properties [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Collectively evaluated for impairment | 646 | |||
Loans, allowance for credit losses | 646 | |||
Collectively evaluated for impairment | 67,852 | |||
Loans | 67,852 | |||
Secured By Non-farm Non residential Properties [Member] | ||||
Loans, allowance for credit losses | 1,762 | 1,970 | 1,774 | 1,958 |
Secured By Non-farm Non residential Properties [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Collectively evaluated for impairment | 1,970 | |||
Loans, allowance for credit losses | 1,970 | |||
Individually evaluated for impairment | 2,492 | |||
Collectively evaluated for impairment | 197,664 | |||
Loans | 200,156 | |||
Direct [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Collectively evaluated for impairment | 886 | |||
Loans, allowance for credit losses | 886 | |||
Individually evaluated for impairment | 18 | |||
Collectively evaluated for impairment | 9,833 | |||
Loans | 9,851 | |||
Branch Retail [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Collectively evaluated for impairment | 518 | |||
Loans, allowance for credit losses | 518 | |||
Collectively evaluated for impairment | 13,992 | |||
Loans | 13,992 | |||
Indirect Consumer [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Collectively evaluated for impairment | 3,154 | |||
Loans, allowance for credit losses | 3,154 | |||
Collectively evaluated for impairment | 266,567 | |||
Loans | 266,567 | |||
Commercial And Industrial Loans [Member] | ||||
Loans, allowance for credit losses | 782 | 919 | 889 | 860 |
Loans | 65,708 | 73,546 | ||
Commercial And Industrial Loans [Member] | In Accordance with ASC 310 prior to Adoption of ASC 326 [Member] | ||||
Individually evaluated for impairment | 252 | |||
Collectively evaluated for impairment | 667 | |||
Loans, allowance for credit losses | 919 | |||
Individually evaluated for impairment | 2,429 | |||
Collectively evaluated for impairment | 71,117 | |||
Loans | 73,546 | |||
Consumer Portfolio Segment [Member] | ||||
Loans | 379,149 | |||
Consumer Portfolio Segment [Member] | Direct [Member] | ||||
Loans, allowance for credit losses | 892 | 866 | 1,064 | 1,004 |
Loans | 8,435 | 9,851 | ||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||
Loans, allowance for credit losses | 1,068 | 518 | 521 | 304 |
Loans | 12,222 | 13,992 | ||
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | ||||
Loans, allowance for credit losses | 5,297 | 3,154 | $ 2,581 | $ 2,439 |
Loans | $ 271,870 | $ 266,567 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses - Loans By Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 775,889 | $ 773,873 |
As a percentage of total loans | 100% | 100% |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 69,398 | $ 53,914 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 63,368 | 67,852 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 198,266 | 200,156 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 86,622 | 87,995 |
Commercial and Industrial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 65,708 | 73,546 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 379,149 | |
Consumer Portfolio Segment [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 378,034 | |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,115 | |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 86,622 | |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 85,569 | |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,053 | |
Consumer Portfolio Segment [Member] | Direct [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 8,435 | 9,851 |
Consumer Portfolio Segment [Member] | Direct [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 8,412 | |
Consumer Portfolio Segment [Member] | Direct [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 23 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 12,222 | 13,992 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 12,208 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 14 | |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 271,870 | 266,567 |
Consumer Portfolio Segment [Member] | Indirect [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 271,845 | |
Consumer Portfolio Segment [Member] | Indirect [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 25 | |
FUSB [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 759,032 | 753,698 |
FUSB [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 69,398 | 53,914 |
FUSB [Member] | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 63,368 | 67,852 |
FUSB [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 198,266 | 200,156 |
FUSB [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 85,353 | 86,518 |
FUSB [Member] | Consumer Portfolio Segment [Member] | Direct [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 5,069 | 5,145 |
FUSB [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 271,870 | 266,567 |
FUSB [Member] | Pass | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 389,270 | |
As a percentage of total loans | 98.43% | |
FUSB [Member] | Pass | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 53,914 | |
FUSB [Member] | Pass | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,852 | |
FUSB [Member] | Pass | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 197,004 | |
FUSB [Member] | Pass | Commercial and Industrial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 70,500 | |
FUSB [Member] | Special Mention | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 651 | |
As a percentage of total loans | 0.17% | |
FUSB [Member] | Special Mention | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 651 | |
FUSB [Member] | Substandard | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 5,547 | |
As a percentage of total loans | 1.40% | |
FUSB [Member] | Substandard | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 2,501 | |
FUSB [Member] | Substandard | Commercial and Industrial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 3,046 | |
FUSB [Member] | Pass And Criticized [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 395,468 | |
As a percentage of total loans | 100% | |
FUSB [Member] | Pass And Criticized [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 53,914 | |
FUSB [Member] | Pass And Criticized [Member] | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 67,852 | |
FUSB [Member] | Pass And Criticized [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 200,156 | |
FUSB [Member] | Pass And Criticized [Member] | Commercial and Industrial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 73,546 | |
ALC [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 16,857 | 20,175 |
ALC [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 377,132 | |
As a percentage of total loans | 99.66% | |
ALC [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 1,273 | |
As a percentage of total loans | 0.34% | |
ALC [Member] | Performing And Non Performing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 378,405 | |
As a percentage of total loans | 100% | |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,269 | $ 1,477 |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 86,871 | |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,124 | |
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing And Non Performing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 87,995 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 3,366 | 4,706 |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 9,805 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 46 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Direct [Member] | Performing And Non Performing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 9,851 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 12,222 | 13,992 |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 13,960 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 32 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing And Non Performing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 13,992 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 266,496 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 71 | |
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect [Member] | Performing And Non Performing [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 266,567 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses - Carrying Amount of Loans by Credit Quality Indicator and Year of Origination (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 775,889,000 | $ 773,873,000 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,168,000 | |
2022 | 94,485,000 | |
2021 | 90,859,000 | |
2020 | 71,762,000 | |
2019 | 30,944,000 | |
Prior | 105,522,000 | |
Total | 396,740,000 | |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,168,000 | |
2022 | 94,246,000 | |
2021 | 88,112,000 | |
2020 | 70,930,000 | |
2019 | 30,672,000 | |
Prior | 101,816,000 | |
Total | 388,944,000 | |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 190,000 | |
2021 | 2,419,000 | |
2020 | 795,000 | |
2019 | 93,000 | |
Prior | 645,000 | |
Total | 4,142,000 | |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 49,000 | |
2021 | 328,000 | |
2020 | 37,000 | |
2019 | 179,000 | |
Prior | 3,061,000 | |
Total | 3,654,000 | |
Commercial [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 31,710,000 | |
2021 | 31,359,000 | |
2020 | 5,625,000 | |
Prior | 704,000 | |
Total | 69,398,000 | |
Commercial [Member] | Construction, Land Development and Other Land Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 31,710,000 | |
2021 | 31,359,000 | |
2020 | 5,625,000 | |
Prior | 704,000 | |
Total | 69,398,000 | |
Commercial [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 320,000 | |
2022 | 16,533,000 | |
2021 | 14,459,000 | |
2020 | 701,000 | |
2019 | 7,325,000 | |
Prior | 24,030,000 | |
Total | 63,368,000 | |
Commercial [Member] | Secured By Multi family Residential Properties [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 320,000 | |
2022 | 16,533,000 | |
2021 | 14,459,000 | |
2020 | 701,000 | |
2019 | 7,325,000 | |
Prior | 24,030,000 | |
Total | 63,368,000 | |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 516,000 | |
2022 | 37,109,000 | |
2021 | 25,778,000 | |
2020 | 60,158,000 | |
2019 | 19,152,000 | |
Prior | 55,553,000 | |
Total | 198,266,000 | |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 516,000 | |
2022 | 37,109,000 | |
2021 | 24,459,000 | |
2020 | 59,612,000 | |
2019 | 19,152,000 | |
Prior | 52,144,000 | |
Total | 192,992,000 | |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 1,319,000 | |
2020 | 546,000 | |
Prior | 645,000 | |
Total | 2,510,000 | |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 2,764,000 | |
Total | 2,764,000 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 2,332,000 | |
2022 | 9,133,000 | |
2021 | 19,263,000 | |
2020 | 5,278,000 | |
2019 | 4,467,000 | |
Prior | 25,235,000 | |
Total | 65,708,000 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 2,332,000 | |
2022 | 8,894,000 | |
2021 | 17,835,000 | |
2020 | 4,992,000 | |
2019 | 4,195,000 | |
Prior | 24,938,000 | |
Total | 63,186,000 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 190,000 | |
2021 | 1,100,000 | |
2020 | 249,000 | |
2019 | 93,000 | |
Total | 1,632,000 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 49,000 | |
2021 | 328,000 | |
2020 | 37,000 | |
2019 | 179,000 | |
Prior | 297,000 | |
Total | 890,000 | |
Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 20,955,000 | |
2022 | 126,025,000 | |
2021 | 99,367,000 | |
2020 | 77,745,000 | |
2019 | 19,904,000 | |
Prior | 35,153,000 | |
Total | 379,149,000 | |
Current period gross charge-offs, 2022 | 45,000 | |
Current period gross charge-offs, 2021 | 231,000 | |
Current period gross charge-offs, 2020 | 131,000 | |
Current period gross charge-offs, 2019 | 21,000 | |
Current period gross charge-offs, Prior | 106,000 | |
Current period gross charge-offs | 534,000 | |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 20,955,000 | |
2022 | 126,025,000 | |
2021 | 99,361,000 | |
2020 | 77,720,000 | |
2019 | 19,726,000 | |
Prior | 34,247,000 | |
Total | 378,034,000 | |
Consumer [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 6,000 | |
2020 | 25,000 | |
2019 | 178,000 | |
Prior | 906,000 | |
Total | 1,115,000 | |
Consumer [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,762,000 | |
2022 | 21,937,000 | |
2021 | 16,092,000 | |
2020 | 12,095,000 | |
2019 | 10,510,000 | |
Prior | 24,226,000 | |
Total | 86,622,000 | |
Current period gross charge-offs, Prior | 8,000 | |
Current period gross charge-offs | 8,000 | |
Consumer [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 1,762,000 | |
2022 | 21,937,000 | |
2021 | 16,092,000 | |
2020 | 12,095,000 | |
2019 | 10,346,000 | |
Prior | 23,337,000 | |
Total | 85,569,000 | |
Consumer [Member] | Secured by 1-4 Family Residential Properties [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2019 | 164,000 | |
Prior | 889,000 | |
Total | 1,053,000 | |
Consumer [Member] | Direct [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 740,000 | |
2022 | 2,021,000 | |
2021 | 3,384,000 | |
2020 | 1,467,000 | |
2019 | 533,000 | |
Prior | 290,000 | |
Total | 8,435,000 | 9,851,000 |
Current period gross charge-offs, 2021 | 149,000 | |
Current period gross charge-offs, 2020 | 47,000 | |
Current period gross charge-offs, 2019 | 1,000 | |
Current period gross charge-offs, Prior | 18 | |
Current period gross charge-offs | 215,000 | |
Consumer [Member] | Direct [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 740,000 | |
2022 | 2,021,000 | |
2021 | 3,378,000 | |
2020 | 1,467,000 | |
2019 | 533,000 | |
Prior | 273,000 | |
Total | 8,412,000 | |
Consumer [Member] | Direct [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 6,000 | |
Prior | 17,000 | |
Total | 23,000 | |
Consumer [Member] | Branch Retail [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 3,215,000 | |
2020 | 3,757,000 | |
2019 | 2,173,000 | |
Prior | 3,077,000 | |
Total | 12,222,000 | 13,992,000 |
Current period gross charge-offs, 2021 | 40,000 | |
Current period gross charge-offs, 2020 | 44,000 | |
Current period gross charge-offs, 2019 | 20,000 | |
Current period gross charge-offs, Prior | 51,000 | |
Current period gross charge-offs | 155,000 | |
Consumer [Member] | Branch Retail [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 3,215,000 | |
2020 | 3,743,000 | |
2019 | 2,173,000 | |
Prior | 3,077,000 | |
Total | 12,208,000 | |
Consumer [Member] | Branch Retail [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 14,000 | |
Total | 14,000 | |
Consumer [Member] | Indirect [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 18,453,000 | |
2022 | 102,067,000 | |
2021 | 76,676,000 | |
2020 | 60,426,000 | |
2019 | 6,688,000 | |
Prior | 7,560,000 | |
Total | 271,870,000 | $ 266,567,000 |
Current period gross charge-offs, 2022 | 45,000 | |
Current period gross charge-offs, 2021 | 42,000 | |
Current period gross charge-offs, 2020 | 40,000 | |
Current period gross charge-offs, Prior | 29,000 | |
Current period gross charge-offs | 156 | |
Consumer [Member] | Indirect [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 18,453,000 | |
2022 | 102,067,000 | |
2021 | 76,676,000 | |
2020 | 60,415,000 | |
2019 | 6,674,000 | |
Prior | 7,560,000 | |
Total | 271,845,000 | |
Consumer [Member] | Indirect [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2020 | 11,000 | |
2019 | 14,000 | |
Total | $ 25,000 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses - Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Loans | $ 775,889 | $ 773,873 |
As a percentage of total loans | 100% | 100% |
Loans | $ 613 | |
As a percentage of total loans, Total Past Due | 0.13% | 0.32% |
As a percentage of total loans, Current | 99.87% | 99.68% |
Financial Asset, 30 to 59 Days Past Due | ||
As a percentage of total loans | 0.21% | |
Financial Asset, 60 to 89 Days Past Due | ||
As a percentage of total loans | 0.04% | |
Financial Asset, Equal to or Greater than 90 Days Past Due | ||
As a percentage of total loans | 0.07% | |
Total Past Due | ||
Loans | $ 1,011 | $ 2,481 |
Current | ||
Loans | 774,878 | 771,392 |
ALC [Member] | ||
Loans | 16,857 | 20,175 |
ALC [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | $ 633 | 1,694 |
As a percentage of total loans | 0.08% | |
ALC [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | $ 86 | 277 |
As a percentage of total loans | 0.01% | |
ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | $ 292 | 511 |
As a percentage of total loans | 0.04% | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Loans | $ 69,398 | 53,914 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Current | ||
Loans | 69,398 | 53,914 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 86,622 | 87,995 |
Loans | 483 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Total Past Due | ||
Loans | 336 | 966 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Current | ||
Loans | 86,286 | 87,029 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Loans | 63,368 | 67,852 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | Current | ||
Loans | 63,368 | 67,852 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Loans | 198,266 | 200,156 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | Total Past Due | ||
Loans | 137 | |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | Current | ||
Loans | 198,266 | 200,019 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 1,269 | 1,477 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 262 | 801 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 18 | 87 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 56 | 78 |
Real Estate [Member] | ALC [Member] | Secured By Non-farm Non residential Properties [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 137 | |
Commercial and Industrial Loans [Member] | ||
Loans | 65,708 | 73,546 |
Loans | 113 | |
Commercial and Industrial Loans [Member] | Total Past Due | ||
Loans | 176 | 361 |
Commercial and Industrial Loans [Member] | Current | ||
Loans | 65,532 | 73,185 |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 3 | 61 |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 173 | 300 |
Consumer Portfolio Segment [Member] | ||
Loans | 379,149 | |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 86,622 | |
Consumer Portfolio Segment [Member] | Direct [Member] | ||
Loans | 8,435 | 9,851 |
Loans | 17 | |
Consumer Portfolio Segment [Member] | Direct [Member] | Total Past Due | ||
Loans | 166 | 330 |
Consumer Portfolio Segment [Member] | Direct [Member] | Current | ||
Loans | 8,269 | 9,521 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Loans | 12,222 | 13,992 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Total Past Due | ||
Loans | 129 | 375 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Current | ||
Loans | 12,093 | 13,617 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | ||
Loans | 271,870 | 266,567 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | Total Past Due | ||
Loans | 204 | 312 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | Current | ||
Loans | 271,666 | 266,255 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct [Member] | ||
Loans | 3,366 | 4,706 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 97 | 251 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 45 | 50 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 24 | 30 |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | ||
Loans | 12,222 | 13,992 |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 92 | 258 |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 23 | 85 |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 14 | 32 |
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Consumer [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 179 | 186 |
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Consumer [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 55 | |
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | $ 25 | $ 71 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses - Non-accruing Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Non-accruing loans | $ 1,214 | $ 1,651 |
Nonaccrual loans with no allowance for credit losses | 613 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Non-accruing loans | 856 | 914 |
Nonaccrual loans with no allowance for credit losses | 483 | |
Commercial and Industrial Loans [Member] | ||
Non-accruing loans | 296 | 605 |
Nonaccrual loans with no allowance for credit losses | 113 | |
Consumer Portfolio Segment [Member] | Direct [Member] | ||
Non-accruing loans | 23 | 29 |
Nonaccrual loans with no allowance for credit losses | 17 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Non-accruing loans | 14 | 32 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | ||
Non-accruing loans | $ 25 | $ 71 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses - Loans Individually Evaluated, as well as any Related Allowance for Loans and Lease Losses (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Loans individually evaluated with no allowance recorded, carrying amount | $ 5,154 |
Loans individually evaluated with no allowance recorded, unpaid principal balance | 5,154 |
Loans individually evaluated with no allowance recorded, related allowances | 259 |
Loans individually evaluated with an allowance recorded, carrying amount | 367 |
Loans individually evaluated with an allowance recorded, unpaid principal balance | 367 |
Loans individually evaluated with an allowance recorded, carrying amount | 5,521 |
Loans individually evaluated, unpaid principal balance | 5,521 |
Loans individually evaluated, average recorded investment | 2,444 |
Loans individually evaluated, interest income recognized | 20 |
Loans individually evaluated, interest income received | 22 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |
Loans individually evaluated with no allowance recorded, carrying amount | 568 |
Loans individually evaluated with no allowance recorded, unpaid principal balance | 568 |
Loans individually evaluated with no allowance recorded, related allowances | 7 |
Loans individually evaluated with an allowance recorded, carrying amount | 14 |
Loans individually evaluated with an allowance recorded, unpaid principal balance | 14 |
Loans individually evaluated with an allowance recorded, carrying amount | 582 |
Loans individually evaluated, unpaid principal balance | 582 |
Loans individually evaluated, average recorded investment | 642 |
Loans individually evaluated, interest income recognized | 2 |
Loans individually evaluated, interest income received | 1 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |
Loans individually evaluated with no allowance recorded, carrying amount | 2,492 |
Loans individually evaluated with no allowance recorded, unpaid principal balance | 2,492 |
Loans individually evaluated with an allowance recorded, carrying amount | 2,492 |
Loans individually evaluated, unpaid principal balance | 2,492 |
Loans individually evaluated, average recorded investment | 1,043 |
Loans individually evaluated, interest income recognized | 13 |
Loans individually evaluated, interest income received | 15 |
Commercial and Industrial Loans [Member] | |
Loans individually evaluated with no allowance recorded, carrying amount | 2,076 |
Loans individually evaluated with no allowance recorded, unpaid principal balance | 2,076 |
Loans individually evaluated with no allowance recorded, related allowances | 252 |
Loans individually evaluated with an allowance recorded, carrying amount | 353 |
Loans individually evaluated with an allowance recorded, unpaid principal balance | 353 |
Loans individually evaluated with an allowance recorded, carrying amount | 2,429 |
Loans individually evaluated, unpaid principal balance | 2,429 |
Loans individually evaluated, average recorded investment | 739 |
Loans individually evaluated, interest income recognized | 5 |
Loans individually evaluated, interest income received | 5 |
Direct Consumer [Member] | |
Loans individually evaluated with an allowance recorded, carrying amount | 18 |
Loans individually evaluated with an allowance recorded, unpaid principal balance | 18 |
Loans individually evaluated with an allowance recorded, carrying amount | 18 |
Loans individually evaluated, unpaid principal balance | 18 |
Loans individually evaluated, average recorded investment | 20 |
Loans individually evaluated, interest income received | $ 1 |
Other Real Estate Owned and R_3
Other Real Estate Owned and Repossessed Assets - Summary of Foreclosed Property Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Real Estate [Abstract] | ||
Beginning balance | $ 686 | $ 2,149 |
Sales proceeds | (1,431) | |
Gross gains | 183 | |
Gross losses | (27) | |
Net gains (losses) | 156 | |
Impairment | (69) | |
Ending balance | $ 617 | $ 874 |
Other Real Estate Owned and R_4
Other Real Estate Owned and Repossessed Assets - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Other Real Estate [Abstract] | ||
Foreclosed real estate owned, fair value less disposal costs | $ 20 | $ 0 |
Mortgage loans in process of foreclosure, amount | $ 0 | $ 18 |
Other Real Estate Owned and R_5
Other Real Estate Owned and Repossessed Assets - Summary of Repossessed Assets Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Sales proceeds | $ (1,431) | |
Gross gains | 183 | |
Gross losses | (27) | |
Net gains (losses) | 156 | |
Impairment | $ (69) | |
Repossessed Assets [Member] | ||
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Beginning balance | 83 | 154 |
Transfers from loans | 490 | 51 |
Sales proceeds | (128) | (100) |
Gross losses | (180) | (44) |
Net gains (losses) | (180) | (44) |
Ending balance | $ 265 | $ 61 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, Ending Balance | $ 7,435 | $ 7,435 | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 311 | 366 | |
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 | $ 7,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 7,435 | $ 7,435 | |
Gross carrying amount | 2,048 | 2,048 | |
Accumulated amortization | (1,737) | (1,682) | |
Core deposit intangible, net | 311 | 366 | |
Total | $ 7,746 | $ 7,801 | $ 7,996 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2023 | $ 140 | |
2024 | 122 | |
2025 | 49 | |
Core deposit intangible, net | $ 311 | $ 366 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Oct. 01, 2021 | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | |
Short Term Debt [Line Items] | ||||
Federal Funds Purchased | $ 0 | $ 0 | ||
Securities Sold under Agreements to Repurchase, Total | 0 | 38,000 | ||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months, Total | 25,000,000 | 20,000,000 | ||
Long-term Federal Home Loan Bank advances | 0 | 0 | ||
Long-Term Debt | $ 10,744,000 | 10,726,000 | ||
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, after which 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% | |||
Long-Term Debt | $ 10,744,000 | $ 10,700,000 | $ 10,671,000 | |
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 | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Debt Instrument [Line Items] | ||
Beginning balance | $ 10,726 | |
Ending balance | 10,744 | |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Beginning balance | 10,700 | |
Average balance during the period | 10,738 | $ 10,655 |
Ending balance | $ 10,744 | $ 10,671 |
Average rate paid during the period, including amortization of debt issuance costs | 4.20% | 4.20% |
Weighted average remaining maturity (in years) | 8 years 6 months | 9 years 6 months |
Borrowings - Schedule of Availa
Borrowings - Schedule of Available Unused Lines of Credit (Details) - Unused lines of Credit [Member] - USD ($) $ in Millions | 3 Months Ended | ||
Mar. 31, 2023 | Dec. 31, 2022 | ||
Correspondent Banks [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | None | ||
Available lines of credit | $ 28 | $ 45 | |
FHLB Advances [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | [1] | Subject to collateral | |
Available lines of credit | [1] | $ 243.4 | $ 246.8 |
Federal Reserve [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | [2] | Subject to collateral | |
[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. The total lendable collateral value of assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 74.2 million and $ 68.2 million as of March 31, 2023 and December 31, 2022, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 55.0 million and $ 50.0 million as of March 31, 2023 and December 31, 2022, respectively, leaving an excess of collateral of $ 19.2 million and $ 18.2 million, respectively, available to utilize for additional credit as of the respective dates. The Company also has the ability to pledge additional assets to increase the availability of borrowings. The Company has access to the Federal Reserve’s discount window and its Bank Term Funding Program (BTFP), the latter of which was established during the three months ended March 31, 2023 in response to the liquidity events that have occurred in the banking industry. Both the discount window and the BTFP allow borrowing on pledged collateral that includes eligible investment securities and, in certain circumstances, eligible loans. The discount window allows borrowing under 90-day terms, while borrowing terms under the BTFP are up to one year. The BTFP also allows investment securities to be pledged as collateral at 100 % of par value when par value is greater than fair value. |
Borrowings - Schedule of Avai_2
Borrowings - Schedule of Available Unused Lines of Credit (Parenthetical) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | $ 74.2 | $ 68.2 |
Collateral exposure with FHLB in form of advances | 55 | 50 |
Collateral pledged in excess available to utilize additional credit | $ 19.2 | $ 18.2 |
Percentage par value allowed as collateral. | 100% |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 01, 2023 | Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Income Tax Disclosure [Line Items] | ||||
Provision for income taxes | $ 652 | $ 400 | ||
Effective Income Tax Rate Reconciliation, Percent | 23.90% | 22.70% | ||
Deferred Tax Assets, Net | $ 6,000 | $ 5,200 | ||
Cumulative Effect Adjustment | ||||
Income Tax Disclosure [Line Items] | ||||
Net deferred tax asset increased | $ 600 |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2023 | Dec. 31, 2022 |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 116,561 | 114,190 |
Other Liabilities [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Liability, Current and Noncurrent, Total | $ 3.1 | $ 3.1 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
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 | $ 900,000 |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based payment arrangement, expense | $ 100,000 | $ 100,000 |
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 | 57,300 | 45,938 |
Stock Awards - Stock Option Act
Stock Awards - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 419,650 | 420,250 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 0 | 0 |
Expired (in shares) | 0 | 0 |
Forfeited (in shares) | 0 | 600 |
Options outstanding, end of period (in shares) | 419,650 | 419,650 |
Options exercisable, end of period (in shares) | 419,650 | 415,916 |
Outstanding, beginning of period, 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 | 0 |
Expired, average exercise price (in dollars per share) | 0 | 0 |
Forfeited, average exercise price (in dollars per share) | 0 | 10.86 |
Options outstanding, end of period, average exercise price (in dollars per share) | 9.79 | 9.79 |
Options exercisable, end of period, average exercise price (in dollars per share) | $ 9.79 | $ 9.77 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 | |
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 | 3 Months Ended | |||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Leases [Abstract] | ||||
Operating lease expense | [1] | $ 108 | $ 108 | |
Operating lease income | [2] | 234 | 214 | |
Operating lease right-of-use assets | 1,791 | $ 1,883 | ||
Operating lease liabilities | $ 1,870 | $ 1,961 | ||
Weighted-average remaining lease term (in years) | 4 years 9 months 10 days | 5 years 10 days | ||
Weighted-average discount rate | 3.30% | 3.30% | ||
Operating cash flows from operating leases | $ 107 | $ 108 | ||
[1] Includes short-term lease costs. For the three months ended March 31, 2023 and 2022 , 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 | Mar. 31, 2023 | Dec. 31, 2022 |
Leases [Abstract] | ||
2023 | $ 324 | |
2024 | 438 | |
2025 | 339 | |
2026 | 346 | |
2027 | 353 | |
2028 and thereafter | 238 | |
Total future minimum lease payments | 2,038 | |
Less: Imputed interest | 168 | |
Total operating lease liabilities | $ 1,870 | $ 1,961 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 USD ($) Contract | Dec. 31, 2022 USD ($) Contract | |
Derivative [Line Items] | ||
Derivative assets | $ 0 | |
Derivative liabilities | 0 | |
Derivatives Designated as Hedging Instruments [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 40,000,000 | |
Number of interest rate swap contracts terminated | Contract | 4 | |
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | ||
Derivative [Line Items] | ||
Notional amount | $ 10,000,000 | |
Net unrealized gain | $ 1,100,000 | $ 300,000 |
Number of interest rate swap contracts terminated | Contract | 2 | 1 |
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | ||
Derivative [Line Items] | ||
Net unrealized gain | $ 1,000,000 | |
Number of interest rate swap contracts terminated | Contract | 2 |
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 | Mar. 31, 2023 | ||
Derivatives Fair Value [Line Items] | |||
Notional Amount | $ 40,000 | ||
Estimated Fair Value Gain (Loss) | [1] | $ 2,306 | |
Fair Value Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | [1] | 1,101 | |
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 | ||
Estimated Fair Value Gain (Loss) | [1] | 1,101 | |
Cash Flow Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 10,000 | ||
Estimated Fair Value Gain (Loss) | [1] | 1,205 | |
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 | ||
Estimated Fair Value Gain (Loss) | [1] | $ 1,205 | |
[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 Hedging Derivative Instruments' Effect on Company's Interim Condensed Consolidated Statement of Operations (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest and Fees on Loans [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | $ 168 | $ (59) |
Interest on Deposits [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | 36 | (30) |
Interest on Short-Term Borrowings [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | 136 | (79) |
Net Increase (Decrease) to Income Before Income Taxes [Member] | ||
Derivative Instruments Gain Loss [Line Items] | ||
Interest income (expense) | $ 340 | $ (168) |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2023 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 2 |
Segment Reporting - Results for
Segment Reporting - Results for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total interest income | $ 11,960 | $ 9,381 | |
Total interest expense | 2,526 | 672 | |
Net interest income | 9,434 | 8,709 | |
Provision | 269 | 721 | |
Net interest income after provision for credit losses | 9,165 | 7,988 | |
Total non-interest income | 829 | 829 | |
Total non-interest expense | 7,270 | 7,056 | |
Income before income taxes | 2,724 | 1,761 | |
Provision for income taxes | 652 | 400 | |
Net income | 2,072 | 1,361 | |
Total assets | 1,026,658 | 968,646 | $ 994,667 |
Total investment securities | 128,689 | 137,736 | |
Total loans, net | 764,290 | 669,846 | 764,451 |
Goodwill and core deposit intangible, net | 7,746 | 7,996 | 7,801 |
Fixed asset additions | 139 | 118 | |
Depreciation and amortization expense | 412 | 387 | |
Total interest income from external customers | 11,960 | 9,381 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total interest income | (206) | (334) | |
Total interest expense | (206) | (334) | |
Total non-interest income | (2,416) | (1,744) | |
Total non-interest expense | (19) | (69) | |
Income before income taxes | (2,397) | (1,675) | |
Net income | (2,397) | (1,675) | |
Total assets | (110,171) | (141,604) | |
Total loans, net | (14,939) | (31,960) | |
Investment in subsidiaries | (92,210) | (93,963) | |
Total interest income from affiliates | (206) | (334) | |
FUSB [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total loans, net | 749,408 | 745,641 | |
FUSB [Member] | Operating Segments [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total interest income | 11,506 | 8,125 | |
Total interest expense | 2,412 | 559 | |
Net interest income | 9,094 | 7,566 | |
Provision | 269 | (135) | |
Net interest income after provision for credit losses | 8,825 | 7,701 | |
Total non-interest income | 831 | 855 | |
Total non-interest expense | 6,671 | 6,285 | |
Income before income taxes | 2,985 | 2,271 | |
Provision for income taxes | 701 | 502 | |
Net income | 2,284 | 1,769 | |
Total assets | 1,025,683 | 972,318 | |
Total investment securities | 128,689 | 137,655 | |
Total loans, net | 764,347 | 669,569 | |
Goodwill and core deposit intangible, net | 7,746 | 7,996 | |
Fixed asset additions | 139 | 118 | |
Depreciation and amortization expense | 405 | 377 | |
Total interest income from external customers | 11,301 | 7,792 | |
Total interest income from affiliates | 205 | 333 | |
ALC [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total loans, net | 14,882 | $ 18,810 | |
ALC [Member] | Operating Segments [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total interest income | 659 | 1,589 | |
Total interest expense | 205 | 333 | |
Net interest income | 454 | 1,256 | |
Provision | 856 | ||
Net interest income after provision for credit losses | 454 | 400 | |
Total non-interest income | 17 | 70 | |
Total non-interest expense | 320 | 544 | |
Income before income taxes | 151 | (74) | |
Provision for income taxes | 38 | (19) | |
Net income | 113 | (55) | |
Total assets | 16,128 | 33,518 | |
Total loans, net | 14,882 | 32,237 | |
Fixed asset additions | 0 | ||
Depreciation and amortization expense | 7 | 10 | |
Total interest income from external customers | 659 | 1,589 | |
Other Segments [Member] | Operating Segments [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total interest income | 1 | 1 | |
Total interest expense | 115 | 114 | |
Net interest income | (114) | (113) | |
Net interest income after provision for credit losses | (114) | (113) | |
Total non-interest income | 2,397 | 1,648 | |
Total non-interest expense | 298 | 296 | |
Income before income taxes | 1,985 | 1,239 | |
Provision for income taxes | (87) | (83) | |
Net income | 2,072 | 1,322 | |
Total assets | 95,018 | 104,414 | |
Total investment securities | 81 | ||
Investment in subsidiaries | 92,210 | 93,963 | |
Total interest income from affiliates | $ 1 | $ 1 |
Other Operating Income and Ex_3
Other Operating Income and Expense - Other Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Other Income and Expenses [Abstract] | ||
Bank-owned life insurance | $ 114 | $ 110 |
ATM fee income | 112 | 134 |
Gain on sales of premises and equipment and other assets | 19 | |
Other income | 87 | 53 |
Total | $ 313 | $ 316 |
Other Operating Income and Ex_4
Other Operating Income and Expense - Other Operating Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Postage, stationery and supplies | $ 161 | $ 164 |
Telephone/data communication | 169 | 171 |
Collection and recoveries | 91 | 47 |
Directors fees | 95 | 103 |
Amortization of intangible assets | 55 | 73 |
Other real estate/foreclosure expense, net | 6 | (145) |
Other expense | 574 | 509 |
Total | 1,220 | 948 |
Software [Member] | ||
Amortization of intangible assets | $ 124 | $ 99 |
Guarantees, Commitments and C_3
Guarantees, Commitments and Contingencies - Summary of Commitment and Contingent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
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 | 531 | 556 |
Commitments to Extend Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 187,603 | $ 186,169 |
Guarantees, Commitments and C_4
Guarantees, Commitments and Contingencies - Additional Information (Details) - USD ($) | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | Mar. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | |||||
Loans, allowance for credit losses | $ 11,599,000 | $ 9,422,000 | $ 8,484,000 | $ 8,320,000 | |
Self Insurance Reserve | 200,000 | 200,000 | |||
Reserve for Unfunded Commitments [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loans, allowance for credit losses | 300,000 | $ 0 | |||
ASC 326 [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loans, allowance for credit losses | $ 2,123,000 | $ 2,100,000 | |||
ASC 326 [Member] | Reserve for Unfunded Commitments [Member] | |||||
Loss Contingencies [Line Items] | |||||
Loans, allowance for credit losses | $ 300,000 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
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 | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 127,007 | $ 130,795 |
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 | 41,954 | 43,957 |
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 | 41,954 | 43,957 |
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 | 41,954 | 43,957 |
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 | 10,982 | 11,693 |
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 | 10,982 | 11,693 |
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 | 10,982 | 11,693 |
US Government Sponsored Agencies [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 4,375 | 4,270 |
US Government Sponsored Agencies [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 | 4,375 | 4,270 |
US Government Sponsored Agencies [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 | 4,375 | 4,270 |
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 | 1,574 | 2,072 |
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 | 1,574 | 2,072 |
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 | 1,574 | 2,072 |
Corporate Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 14,654 | 15,921 |
Corporate Notes [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 | 14,654 | 15,921 |
Corporate Notes [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 | 14,654 | 14,921 |
Corporate Notes [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 | 53,468 | 52,882 |
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 | 53,468 | 52,882 |
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 | $ 53,468 | 52,882 |
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 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | $ 78 | |
OREO and other assets held-for-sale | 617 | |
Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 78 | |
Impaired loans | $ 108 | |
OREO and other assets held-for-sale | 617 | 686 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 78 | |
Impaired loans | 108 | |
OREO and other assets held-for-sale | $ 617 | $ 686 |
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 | Mar. 31, 2023 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Collateral dependent loans | $ 78 |
OREO and other assets held-for-sale | $ 617 |
Minimum [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Collateral dependent 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] | |
Collateral dependent 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] | |
Collateral dependent 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 ($) | Mar. 31, 2023 | Dec. 31, 2022 |
Assets: | ||
Investment securities available-for-sale | $ 127,007,000 | $ 130,795,000 |
Investment securities held-to-maturity | 1,599,000 | 1,769,000 |
Liabilities: | ||
Other liabilities - derivatives | 0 | |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 68,427,000 | 30,152,000 |
Investment securities available-for-sale | 127,007,000 | 130,795,000 |
Investment securities held-to-maturity | 1,682,000 | 1,862,000 |
Federal funds sold | 263,000 | 1,768,000 |
Federal Home Loan Bank stock | 1,590,000 | 1,359,000 |
Loans, net of allowance for credit losses/loan and lease losses | 764,290,000 | 764,451,000 |
Liabilities: | ||
Deposits | 897,885,000 | 870,025,000 |
Short-term borrowings | 25,000,000 | 20,038,000 |
Long-term borrowings | 10,744,000 | 10,726,000 |
Other liabilities - derivatives | 2,306,000 | |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 68,427,000 | 30,152,000 |
Investment securities available-for-sale | 127,007,000 | 130,795,000 |
Investment securities held-to-maturity | 1,599,000 | 1,769,000 |
Federal funds sold | 263,000 | 1,768,000 |
Federal Home Loan Bank stock | 1,590,000 | 1,359,000 |
Loans, net of allowance for credit losses/loan and lease losses | 733,467,000 | 730,961,000 |
Liabilities: | ||
Deposits | 826,524,000 | 788,161,000 |
Short-term borrowings | 25,000,000 | 20,038,000 |
Long-term borrowings | 9,885,000 | 9,702,000 |
Other liabilities - derivatives | 2,306,000 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 68,427,000 | 30,152,000 |
Investment securities available-for-sale | 53,468,000 | 52,882,000 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 73,539,000 | 76,913,000 |
Investment securities held-to-maturity | 1,599,000 | 1,769,000 |
Federal funds sold | 263,000 | 1,768,000 |
Liabilities: | ||
Deposits | 826,524,000 | 788,161,000 |
Short-term borrowings | 25,000,000 | 20,038,000 |
Long-term borrowings | 9,885,000 | 9,702,000 |
Other liabilities - derivatives | 2,306,000 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 1,000,000 | |
Federal Home Loan Bank stock | 1,590,000 | 1,359,000 |
Loans, net of allowance for credit losses/loan and lease losses | $ 733,467,000 | $ 730,961,000 |