Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2024 | Jul. 29, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2024 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q2 | |
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 | 5,744,888 | |
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 | 000-14549 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 63-0843362 | |
Entity Address, Address Line One | 3291 U.S. Highway 280 | |
Entity Address, City or Town | Birmingham | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35243 | |
City Area Code | 205 | |
Local Phone Number | 582-1200 | |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and due from banks | $ 11,601 | $ 12,987 |
Interest-bearing deposits in banks | 46,619 | 37,292 |
Total cash and cash equivalents | 58,220 | 50,279 |
Federal funds sold | 5,520 | 9,475 |
Investment securities available-for-sale, at fair value | 144,008 | 135,565 |
Investment securities held-to-maturity, at amortized cost | 868 | 1,104 |
Federal Home Loan Bank stock, at cost | 1,494 | 1,201 |
Loans and leases held for investment | 819,126 | 821,791 |
Less allowance for credit losses on loans and leases | 10,227 | 10,507 |
Net loans and leases held for investment | 808,899 | 811,284 |
Premises and equipment, net of accumulated depreciation | 24,896 | 24,398 |
Cash surrender value of bank-owned life insurance | 16,875 | 16,702 |
Accrued interest receivable | 3,787 | 3,976 |
Goodwill and core deposit intangible, net | 7,532 | 7,606 |
Other real estate owned | 542 | 602 |
Other assets | 10,672 | 10,748 |
Total assets | 1,083,313 | 1,072,940 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest-bearing | 150,763 | 153,591 |
Interest-bearing | 803,692 | 796,600 |
Total deposits | 954,455 | 950,191 |
Accrued interest expense | 2,026 | 2,030 |
Other liabilities | 7,160 | 9,327 |
Short-term borrowings | 15,000 | 10,000 |
Long-term borrowings | 10,836 | 10,799 |
Total liabilities | 989,477 | 982,347 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,818,931 and 7,738,201 shares issued, respectively; 5,744,254 and 5,735,075 shares outstanding, respectively | 78 | 75 |
Additional paid-in capital | 15,200 | 14,972 |
Accumulated other comprehensive loss, net of tax | (6,368) | (6,431) |
Retained earnings | 113,615 | 109,959 |
Less treasury stock: 2,074,677 and 2,003,126 shares at cost, respectively | (28,689) | (27,982) |
Total shareholders’ equity | 93,836 | 90,593 |
Total liabilities and shareholders’ equity | $ 1,083,313 | $ 1,072,940 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2024 | Dec. 31, 2023 |
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) | 7,818,931 | 7,738,201 |
Common stock, shares outstanding (in shares) | 5,744,254 | 5,735,075 |
Treasury Stock, shares | 2,074,677 | 2,003,126 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest income: | ||||
Interest and fees on loans | $ 12,930 | $ 11,764 | $ 25,783 | $ 22,746 |
Interest on investment securities | 1,108 | 675 | 1,973 | 1,358 |
Interest on deposits in banks | 423 | 526 | 875 | 764 |
Other | 85 | 34 | 192 | 91 |
Total interest income | 14,546 | 12,999 | 28,823 | 24,959 |
Interest expense: | ||||
Interest on deposits | 5,210 | 3,322 | 10,309 | 5,459 |
Interest on borrowings | 160 | 354 | 298 | 743 |
Total interest expense | 5,370 | 3,676 | 10,607 | 6,202 |
Net interest income | 9,176 | 9,323 | 18,216 | 18,757 |
Provision for credit losses | 300 | 569 | ||
Net interest income after provision for credit losses | 9,176 | 9,023 | 18,216 | 18,188 |
Non-interest income: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 298 | $ 282 | $ 597 | $ 567 |
Revenue, Product and Service [Extensible Enumeration] | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember | us-gaap:ServiceMember |
Lease income | $ 253 | $ 235 | $ 510 | $ 466 |
Other income, net | 284 | 282 | 593 | 595 |
Total non-interest income | 835 | 799 | 1,700 | 1,628 |
Non-interest expense: | ||||
Salaries and employee benefits | 3,890 | 3,968 | 7,978 | 8,190 |
Net occupancy and equipment | 954 | 893 | 1,848 | 1,728 |
Computer services | 444 | 430 | 887 | 851 |
Insurance expense and assessments | 414 | 406 | 805 | 733 |
Fees for professional services | 364 | 159 | 705 | 404 |
Other expense | 1,206 | 1,295 | 2,196 | 2,515 |
Total non-interest expense | 7,272 | 7,151 | 14,419 | 14,421 |
Income before income taxes | 2,739 | 2,671 | 5,497 | 5,395 |
Provision for income taxes | 612 | 648 | 1,263 | 1,300 |
Net income | $ 2,127 | $ 2,023 | $ 4,234 | $ 4,095 |
Basic net income per share | $ 0.36 | $ 0.34 | $ 0.72 | $ 0.69 |
Diluted net income per share | 0.34 | 0.31 | 0.68 | 0.64 |
Dividends per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,127 | $ 2,023 | $ 4,234 | $ 4,095 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during period, net of tax expense (benefit) of $124, ($263), $101, and ($367), respectively | 370 | (790) | 297 | (1,104) |
Unrealized holding losses arising during the period on effective cash flow hedge derivatives, net of tax benefit of $0, $0, $0 and $18, respectively | (50) | |||
Reclassification adjustments on cash flow hedge derivatives realized in net income, net of tax benefit of $39, $39, $78 and $77, respectively | (117) | (118) | (234) | (227) |
Other comprehensive income (loss) | 253 | (908) | 63 | (1,381) |
Total comprehensive income | $ 2,380 | $ 1,115 | $ 4,297 | $ 2,714 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during period, tax (benefit) expense | $ 124 | $ (263) | $ 101 | $ (367) |
Unrealized holding losses arising during the period on effective cash flow hedge derivatives, tax benefit | 0 | 0 | 0 | 18 |
Reclassification adjustment for net gains on cash flow hedge derivatives realized in net income, tax benefit | $ 39 | $ 39 | $ 78 | $ 77 |
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] | Accumulated Other Comprehensive Loss [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
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 | 4,095 | 4,095 | ||||
Net change in fair value of securities available-for-sale, net of tax | (1,104) | (1,104) | ||||
Net change in fair value of derivative instruments, net of tax | (277) | (277) | ||||
Dividends declared | (587) | (587) | ||||
Impact of stock-based compensation plans, net | 274 | 299 | (25) | |||
Impact of stock-based compensation plans, net (in shares) | 53,141 | |||||
Reissuance of treasury stock as compensation | (134) | 134 | ||||
Reissuance of treasury stock as compensation (in shares) | 9,366 | |||||
Ending balance, value at Jun. 30, 2023 | 85,725 | $ 75 | 14,675 | (8,622) | 106,157 | (26,560) |
Ending balance, value (Impact of Adopting CECL [Member]) at Jun. 30, 2023 | (1,811) | (1,811) | ||||
Balance (in shares) at Jun. 30, 2023 | 5,874,765 | |||||
Beginning balance, value at Mar. 31, 2023 | 84,757 | $ 75 | 14,663 | (7,714) | 104,427 | (26,694) |
Balance (in shares) at Mar. 31, 2023 | 5,866,866 | |||||
Net income | 2,023 | 2,023 | ||||
Net change in fair value of securities available-for-sale, net of tax | (790) | (790) | ||||
Net change in fair value of derivative instruments, net of tax | (118) | (118) | ||||
Dividends declared | (293) | (293) | ||||
Impact of stock-based compensation plans, net | 146 | 146 | ||||
Impact of stock-based compensation plans, net (in shares) | (1,467) | |||||
Reissuance of treasury stock as compensation | (134) | 134 | ||||
Reissuance of treasury stock as compensation (in shares) | 9,366 | |||||
Ending balance, value at Jun. 30, 2023 | 85,725 | $ 75 | 14,675 | (8,622) | 106,157 | (26,560) |
Ending balance, value (Impact of Adopting CECL [Member]) at Jun. 30, 2023 | (1,811) | (1,811) | ||||
Balance (in shares) at Jun. 30, 2023 | 5,874,765 | |||||
Beginning balance, value at Dec. 31, 2023 | 90,593 | $ 75 | 14,972 | (6,431) | 109,959 | (27,982) |
Balance (in shares) at Dec. 31, 2023 | 5,735,075 | |||||
Net income | 4,234 | 4,234 | ||||
Net change in fair value of securities available-for-sale, net of tax | 297 | 297 | ||||
Net change in fair value of derivative instruments, net of tax | (234) | (234) | ||||
Dividends declared | (578) | (578) | ||||
Impact of stock-based compensation plans, net | 341 | $ 3 | 386 | (48) | ||
Impact of stock-based compensation plans, net (in shares) | 74,886 | |||||
Reissuance of treasury stock as compensation | (158) | 158 | ||||
Reissuance of treasury stock as compensation (in shares) | 11,293 | |||||
Impact of common stock share repurchases | (817) | (817) | ||||
Impact of common stock share repurchases (in shares) | (77,000) | |||||
Ending balance, value at Jun. 30, 2024 | 93,836 | $ 78 | 15,200 | (6,368) | 113,615 | (28,689) |
Balance (in shares) at Jun. 30, 2024 | 5,744,254 | |||||
Beginning balance, value at Mar. 31, 2024 | 92,326 | $ 75 | 15,122 | (6,621) | 111,777 | (28,027) |
Balance (in shares) at Mar. 31, 2024 | 5,787,441 | |||||
Net income | 2,127 | 2,127 | ||||
Net change in fair value of securities available-for-sale, net of tax | 370 | 370 | ||||
Net change in fair value of derivative instruments, net of tax | (117) | (117) | ||||
Dividends declared | (289) | (289) | ||||
Impact of stock-based compensation plans, net | 236 | $ 3 | 236 | (3) | ||
Impact of stock-based compensation plans, net (in shares) | 22,520 | |||||
Reissuance of treasury stock as compensation | (158) | 158 | ||||
Reissuance of treasury stock as compensation (in shares) | 11,293 | |||||
Impact of common stock share repurchases | (817) | (817) | ||||
Impact of common stock share repurchases (in shares) | (77,000) | |||||
Ending balance, value at Jun. 30, 2024 | $ 93,836 | $ 78 | $ 15,200 | $ (6,368) | $ 113,615 | $ (28,689) |
Balance (in shares) at Jun. 30, 2024 | 5,744,254 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per share | $ 0.05 | $ 0.05 | $ 0.10 | $ 0.10 |
Interim Condensed Consolidate_8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Cash flows from operating activities: | ||
Net income | $ 4,234 | $ 4,095 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 776 | 804 |
Provision for credit losses | 569 | |
Deferred income tax expense (benefit) | 511 | (462) |
Proceeds from settlement of derivative contracts | 2,166 | |
Reclassification of unrealized gains on terminated derivative contracts | (625) | (534) |
Stock-based compensation expense | 319 | 299 |
Net (accretion) amortization of securities | (100) | 29 |
Amortization of intangible assets | 74 | 110 |
Net loss on premises and equipment and other real estate | 717 | 393 |
Changes in assets and liabilities: | ||
Increase in cash surrender value of bank owned life insurance | (173) | (147) |
Decrease (increase) in accrued interest receivable | 189 | (140) |
Increase in other assets | (416) | (187) |
(Decrease) increase in accrued interest expense | (4) | 956 |
Decrease in other liabilities | (2,130) | (944) |
Net cash provided by operating activities | 3,372 | 7,007 |
Cash flows from investing activities: | ||
Net decrease in federal funds sold | 3,955 | 1,047 |
Purchases of investment securities, available-for-sale | (27,523) | |
Proceeds from maturities and prepayments of investment securities, available-for-sale | 19,577 | 6,364 |
Proceeds from maturities and prepayments of investment securities, held-to-maturity | 236 | 389 |
Net increase in Federal Home Loan Bank stock | (293) | (443) |
Net decrease (increase) in loans and leases held for investment | 1,412 | (41,850) |
Proceeds from the sale of premises and equipment and other real estate | 480 | 291 |
Purchases of premises and equipment | (1,166) | (242) |
Net cash used in investing activities | (3,322) | (34,444) |
Cash flows from financing activities: | ||
Net increase in deposits | 4,264 | 62,603 |
Net increase in short-term borrowings | 5,000 | 9,962 |
Net share-based compensation transactions | 22 | (25) |
Repurchases of common stock | (817) | |
Dividends paid | (578) | (587) |
Net cash provided by financing activities | 7,891 | 71,953 |
Net increase in cash and cash equivalents | 7,941 | 44,516 |
Cash and cash equivalents, beginning of period | 50,279 | 30,152 |
Cash and cash equivalents, end of period | 58,220 | 74,668 |
Supplemental disclosures: | ||
Interest | 10,611 | 5,246 |
Income taxes | 2,171 | 1,824 |
Non-cash transactions: | ||
Assets acquired in settlement of loans | 846 | 740 |
Reissuance of treasury stock as compensation | $ 158 | $ 134 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Pay vs Performance Disclosure | ||||
Net Income (Loss) | $ 2,127 | $ 2,023 | $ 4,234 | $ 4,095 |
Insider Trading Arrangements
Insider Trading Arrangements | 6 Months Ended |
Jun. 30, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
General
General | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
General | 1. GENERAL First US Bancshares, Inc., a Delaware corporation (“Bancshares” and, together with its subsidiary, the “Company”), is a bank holding company formed in 1983 registered under the Bank Holding Company Act of 1956, as amended (the “BHCA”). Bancshares operates one wholly owned banking subsidiary, First US Bank, an Alabama banking corporation (the “Bank”). Bancshares and the Bank are headquartered in Birmingham, Alabama. Previously, the Bank operated two additional wholly owned subsidiaries, Acceptance Loan Company and FUSB Reinsurance, Inc., both of which were legally dissolved in 2023, and all remaining assets and liabilities of these entities were transferred to the Bank prior to December 31, 2023. The Bank conducts a general commercial banking business and offers banking services such as demand, savings, individual retirement account and time deposits, personal and commercial loans, safe deposit box services and remote deposit capture. The Bank operates and serves its customers through 15 full-service banking offices located in Birmingham, Butler, Calera, Centreville, Gilbertown, Grove Hill, Harpersville, Jackson, Thomasville, Tuscaloosa and Woodstock, Alabama; Knoxville and Powell, Tennessee; and Rose Hill, Virginia; as well as loan production offices in Mobile, Alabama and the Chattanooga, Tennessee area. The Bank provides a wide range of commercial banking services to small- and medium-sized businesses, property managers, business executives, professionals and other individuals. The Bank also performs indirect lending through third-party retailers and currently conducts this lending in 17 states, including Alabama, Arkansas, Florida, Georgia, Indiana, Iowa, Kansas, Kentucky, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina, Tennessee, Texas and Virginia. The Bank is the Company’s only reportable operating segment upon which management makes decisions regarding how to allocate resources and assess performance. 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. The results of operations for any interim period are not necessarily indicative of results expected for the fiscal year ending December 31, 2024. 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, 2023 (the "Company's 2023 Form 10-K"). |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 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 2023 Form 10-K. 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 stock equivalent shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors under the Non-Employee Directors' Deferred Compensation Plan (as defined below and discussed further in Note 9). 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 Company's Incentive Plan (as defined below and discussed further in Note 10). 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted average shares outstanding 5,770,960 5,868,107 5,762,892 5,851,973 Weighted average director stock equivalent shares 109,747 114,740 111,159 114,504 Basic shares 5,880,707 5,982,847 5,874,051 5,966,477 Dilutive shares 327,700 419,650 327,700 419,650 Diluted shares 6,208,407 6,402,497 6,201,751 6,386,127 Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Dollars in Thousands, Except Per Share Data) Net income $ 2,127 $ 2,023 $ 4,234 $ 4,095 Basic net income per share $ 0.36 $ 0.34 $ 0.72 $ 0.69 Diluted net income per share $ 0.34 $ 0.31 $ 0.68 $ 0.64 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 or settlement of derivative contracts. Accounting Standards Not Yet Adopted The following table provides a description of recent accounting standards that have not yet been adopted as of June 30, 2024. Standard Description Required Date of Adoption Effect on Financial Statements or other significant matters ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative This ASU incorporates into the Codification 14 of the 27 disclosures referred by the SEC in Release No. 33-10532, Disclosure Update and Simplification. This update clarifies and improves the disclosure and presentation requirements of a variety of topics in the Codification to align with the SEC's regulations. The date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures This ASU expands the disclosure requirements relating to reportable segments, including requiring entities to disclose information about a reportable segment’s significant expenses, among other changes. This ASU does not change how an entity identifies reportable segments or the accounting for segments. The Company has one reporting segment, therefore, this ASU will not impact our Consolidated Financial Statements; however, this ASU requires disclosure of the title and position of the chief operating decision maker and an explanation of how resources are allocated. Annual financial statements as of and for the year ending December 31, 2024 The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures This ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. Annual financial statements as of and for the year ending December 31, 2025 The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2024 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | 3. INVESTMENT SECURITIES Details of investment securities available-for-sale and held-to-maturity as of June 30, 2024 and December 31, 2023 were as follows: Available-for-Sale June 30, 2024 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 64,172 $ 441 $ ( 3,036 ) $ 61,577 Commercial 13,758 3 ( 301 ) 13,460 Obligations of U.S. government-sponsored agencies 11,644 88 ( 675 ) 11,057 Obligations of states and political subdivisions 1,599 — ( 55 ) 1,544 Corporate notes 17,753 — ( 2,779 ) 14,974 U.S. Treasury securities 44,012 — ( 2,616 ) 41,396 Total $ 152,938 $ 532 $ ( 9,462 ) $ 144,008 Held-to-Maturity June 30, 2024 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 400 $ — $ ( 17 ) $ 383 Obligations of U.S. government-sponsored agencies 422 — ( 34 ) 388 Obligations of states and political subdivisions 46 — ( 5 ) 41 Total $ 868 $ — $ ( 56 ) $ 812 Available-for-Sale December 31, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 47,221 $ 580 $ ( 3,073 ) $ 44,728 Commercial 9,446 — ( 406 ) 9,040 Obligations of U.S. government-sponsored agencies 11,849 158 ( 727 ) 11,280 Obligations of states and political subdivisions 1,621 — ( 63 ) 1,558 Corporate notes 17,757 — ( 2,800 ) 14,957 U.S. Treasury securities 56,999 — ( 2,997 ) 54,002 Total $ 144,893 $ 738 $ ( 10,066 ) $ 135,565 Held-to-Maturity December 31, 2023 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Commercial $ 575 $ — $ ( 22 ) $ 553 Obligations of U.S. government-sponsored agencies 471 — ( 34 ) 437 Obligations of states and political subdivisions 58 — ( 7 ) 51 Total $ 1,104 $ — $ ( 63 ) $ 1,041 The scheduled maturities of investment securities available-for-sale and held-to-maturity as of June 30, 2024 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (Dollars in Thousands) Maturing within one year $ 14,219 $ 13,828 $ — $ — Maturing after one to five years 39,035 36,357 164 157 Maturing after five to ten years 53,259 47,617 538 503 Maturing after ten years 46,425 46,206 166 152 Total $ 152,938 $ 144,008 $ 868 $ 812 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, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2024 and December 31, 2023. Available-for-Sale June 30, 2024 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 14,061 $ ( 66 ) $ 31,727 $ ( 2,970 ) Commercial 5,623 ( 17 ) 7,241 ( 284 ) Obligations of U.S. government-sponsored agencies — — 4,415 ( 675 ) Obligations of states and political subdivisions — — 1,544 ( 55 ) Corporate notes — — 14,974 ( 2,779 ) U.S. Treasury securities — — 41,396 ( 2,616 ) Total $ 19,684 $ ( 83 ) $ 101,297 $ ( 9,379 ) Held-to-Maturity June 30, 2024 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ — $ — $ 383 $ ( 17 ) Obligations of U.S. government-sponsored agencies — — 388 ( 34 ) Obligations of states and political subdivisions — — 41 ( 5 ) Total $ — $ — $ 812 $ ( 56 ) Available-for-Sale December 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 94 $ ( 1 ) $ 35,584 $ ( 3,072 ) Commercial 600 ( 5 ) 8,408 ( 401 ) Obligations of U.S. government-sponsored agencies — — 4,367 ( 727 ) Obligations of states and political subdivisions — — 1,558 ( 63 ) Corporate notes 771 ( 229 ) 14,186 ( 2,571 ) U.S. Treasury securities — — 54,002 ( 2,997 ) Total $ 1,465 $ ( 235 ) $ 118,105 $ ( 9,831 ) Held-to-Maturity December 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ — $ — $ 553 $ ( 22 ) Obligations of U.S. government-sponsored agencies — — 436 ( 34 ) Obligations of states and political subdivisions — — 52 ( 7 ) Total $ — $ — $ 1,041 $ ( 63 ) 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 June 30, 2024 , 102 available-for-sale debt securities had been in a loss position for more than 12 months, and eight available-for-sale debt securities had been in a loss position for less than 12 months. As of December 31, 2023 , 108 available-for-sale debt securities had been in a loss position for more than 12 months, and three available-for-sale debt securities had been in a loss position for less than 12 months. As of June 30, 2024, 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 June 30, 2024 and December 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 June 30, 2024 or December 31, 2023. Held-to-Maturity Considerations Effective January 1, 2023, the Company adopted the current expected credit loss ("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. Specifically, with regard to mortgage-backed securities or obligations of U.S. government sponsored agencies thereof, it is expected that the securities will not be settled at prices less than the amortized cost bases of the securities as such securities are either backed by the full faith and credit of the U.S. government or the agency. With regard to obligations of states and political subdivisions, management considers issuer bond ratings, historical loss rates for given bond ratings, and whether the issuers continue to make timely principal and interest payments under contractual terms of the securities. Based on these evaluations, no allowance for credit losses was recorded by the Company for the held-to-maturity investment portfolio as of June 30, 2024 or December 31, 2023. Pledged Securities Investment securities with a carrying value of $ 48.0 million and $ 41.4 million as of June 30, 2024 and December 31, 2023 , respectively, were pledged to secure public deposits and for other purposes. |
Loans And Leases
Loans And Leases | 6 Months Ended |
Jun. 30, 2024 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Loans And Leases | 4. LOANS AND LEASES 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 the Company previously had an established relationship 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. Loans in this category are no longer being funded, and therefore, the portfolio balance will continue to decrease. Indirect consumer – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom the Company has an established relationship to provide financing for the retail products sold if applicable underwriting standards are met. The collateral securing these loans generally includes recreational vehicles, campers, boats, horse trailers and cargo trailers. As of June 30, 2024 and December 31, 2023, the composition of the loan portfolio by portfolio segment was as follows: June 30, 2024 December 31, 2023 Real estate loans: Construction, land development and other land loans $ 72,183 $ 88,140 Secured by 1-4 family residential properties 70,272 76,200 Secured by multi-family residential properties 97,527 62,397 Secured by non-farm, non-residential properties 218,386 213,586 Commercial and industrial loans and leases (1) 46,249 60,515 Consumer loans: Direct 5,272 5,938 Branch retail 6,879 8,670 Indirect 302,358 306,345 Total loans 819,126 821,791 Allowance for credit losses on loans and leases 10,227 10,507 Net loans $ 808,899 $ 811,284 (1) Includes equipment financing leases, which totaled $ 12.6 million as of both June 30, 2024 and December 31, 2023 . The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 56.0 % and 53.6 % of the portfolio was concentrated in loans secured by real estate as of June 30, 2024 and December 31, 2023, respectively. Loans with a carrying value of $ 95.4 million and $ 98.6 million were pledged as collateral to secure Federal Home Loan Bank (“FHLB”) borrowings as of June 30, 2024 and December 31, 2023 , respectively. In addition, loans with a carrying value of $ 288.3 million and $ 294.4 million were pledged to secure borrowings with the Federal Reserve Bank ("FRB") as of June 30, 2024 and December 31, 2023, 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 $ 1.4 million as of June 30, 2024 and December 31, 2023, respectively. During the six months ended June 30, 2024 , there were new loans of $ 40 thousand to active related parties, and repayments of $ 1.3 million made by these parties. During the year ended December 31, 2023, there were new loans of $ 1.3 million to active related parties, and no repayments made by these parties. Allowances for Credit Losses Effective January 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 on Loans and Leases The Company records the allowance for credit losses on loans and leases as a contra-asset valuation account that is deducted from the amortized cost basis of loans and leases held for investment. Loans are charged off against the allowance when management believes that the uncollectibility of a loan balance is confirmed. Recoveries of previously charged off loans are also recorded to the allowance when collected. As of each quarter-end date, the Company evaluates the appropriateness of the allowance for credit losses on loans and leases and adjusts the allowance through the provision for (recovery of) credit losses. Determining the appropriateness of the allowance for credit losses on loans and leases is complex and requires judgment by management about the effects of matters that are inherently uncertain. The level of the allowance is influenced by loan and lease volumes and mix, historical credit loss experience, estimated 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 by management as 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, less any estimated costs to sell, as applicable, utilizing independent third-party appraisals, and assessment of borrower guarantees. The fair value is compared to the amortized cost basis of the loan to determine if an allowance for credit losses should be recognized. For estimating the component of the allowance for credit losses that share similar risk characteristics, loans are segregated into pooled loan categories that share risk characteristics. Loans are designated into pooled categories 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 pool, adjusted by qualitative factors, to estimate life-of-loan losses for each pool. The qualitative factors utilized include, among others, reasonable and supportable forecasts of economic data, including inflation and unemployment levels, as well as interest rates. Allowance for Credit Losses on 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. As of each quarter-end date, the Company estimates expected credit losses on unfunded lending commitments 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 allowance for credit losses on unfunded lending commitments is recorded in other liabilities, and adjustments to the allowance are recorded through the provision for (recovery of) credit losses. Summary of Allowances for Credit Losses The following tables present changes in the allowance for credit losses on loans and leases, as well as unfunded lending commitments, during the six months ended June 30, 2024 and 2023: As of and for the Six Months Ended June 30, 2024 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for credit losses on loans and leases: Beginning balance $ 565 $ 591 $ 415 $ 1,425 $ 513 $ 64 $ 436 $ 6,498 $ 10,507 Charge-offs — ( 2 ) — — ( 97 ) ( 28 ) ( 38 ) ( 641 ) ( 806 ) Recoveries 20 35 — — — 178 93 88 414 Provision for (recovery of) credit losses ( 50 ) ( 78 ) 343 280 ( 23 ) ( 162 ) ( 353 ) 155 112 Allowance for credit losses on loans and leases $ 535 $ 546 $ 758 $ 1,705 $ 393 $ 52 $ 138 $ 6,100 $ 10,227 Allowance for credit losses on unfunded lending commitments: Beginning balance $ 450 $ 1 $ 9 $ 2 $ 102 $ 5 $ — $ — $ 569 Provision for (recovery of) credit losses on unfunded lending commitments ( 100 ) ( 1 ) ( 1 ) 4 ( 14 ) — — ( 112 ) Allowance for credit losses on unfunded lending commitments $ 350 $ — $ 8 $ 6 $ 88 $ 5 $ — $ — $ 457 As of and for the Six Months Ended June 30, 2023 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for credit losses on loans and leases: 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 — ( 55 ) — — — ( 415 ) ( 266 ) ( 301 ) ( 1,037 ) Recoveries — 23 — — — 347 146 33 549 Provision for (recovery of) credit losses on loans and leases 204 11 ( 145 ) ( 76 ) ( 327 ) ( 215 ) ( 90 ) 1,117 479 Allowance for credit losses on loans and leases $ 627 $ 772 $ 416 $ 1,747 $ 572 $ 630 $ 936 $ 5,836 $ 11,536 Allowance for credit losses on unfunded lending commitments: Beginning balance $ — $ — $ — $ — $ — $ — $ — $ — $ — Impact of adopting CECL accounting guidance 172 39 3 2 — 68 8 — 292 Provision for (recovery of) credit losses on unfunded lending commitments 48 15 — 2 24 1 — — 90 Allowance for credit losses on unfunded lending commitments $ 220 $ 54 $ 3 $ 4 $ 24 $ 69 $ 8 $ — $ 382 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 June 30, 2024 or December 31, 2023. • 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 June 30, 2024 or December 31, 2023. 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 and leases by credit quality indicator and year of origination as of June 30, 2024: June 30, 2024 Loans at Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Total (Dollars in Thousands) Commercial: Construction, land development and other land loans Pass $ 1,747 $ 9,446 $ 32,704 $ 27,672 $ 53 $ 491 $ 72,113 Special Mention — — — 70 — — 70 Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 1,747 $ 9,446 $ 32,704 $ 27,742 $ 53 $ 491 $ 72,183 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by multi-family residential properties Pass $ 89 $ 400 $ 53,354 $ 17,869 $ 5,627 $ 20,188 $ 97,527 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 89 $ 400 $ 53,354 $ 17,869 $ 5,627 $ 20,188 $ 97,527 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by non-farm, non-residential properties Pass $ 1,471 $ 27,221 $ 35,971 $ 32,100 $ 56,119 $ 62,147 $ 215,029 Special Mention — — 314 — 339 — 653 Substandard — — — 494 149 2,061 2,704 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 1,471 $ 27,221 $ 36,285 $ 32,594 $ 56,607 $ 64,208 $ 218,386 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans and leases Pass $ 3,204 $ 6,277 $ 4,309 $ 12,888 $ 1,505 $ 14,004 $ 42,187 Special Mention — — 35 79 — — 114 Substandard — 3,499 — 5 — 444 3,948 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 3,204 $ 9,776 $ 4,344 $ 12,972 $ 1,505 $ 14,448 $ 46,249 Current period gross charge-offs $ — $ — $ 54 $ — $ 43 $ — $ 97 Total commercial Pass $ 6,511 $ 43,344 $ 126,338 $ 90,529 $ 63,304 $ 96,830 $ 426,856 Special Mention — — 349 149 339 — 837 Substandard — 3,499 — 499 149 2,505 6,652 Doubtful — — — — — — — Loss — — — — — — — $ 6,511 $ 46,843 $ 126,687 $ 91,177 $ 63,792 $ 99,335 $ 434,345 Current period gross charge-offs $ — $ — $ 54 $ — $ 43 $ — $ 97 June 30, 2024 Loans at Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Total (Dollars in Thousands) Consumer: Secured by 1-4 family residential properties Performing $ 2,046 $ 3,819 $ 18,189 $ 14,714 $ 6,126 $ 24,603 $ 69,497 Non-performing — — — — — 775 775 Subtotal $ 2,046 $ 3,819 $ 18,189 $ 14,714 $ 6,126 $ 25,378 $ 70,272 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2 $ 2 Direct Performing $ 1,601 $ 1,618 $ 667 $ 850 $ 383 $ 153 $ 5,272 Non-performing — — — — — — — Subtotal $ 1,601 $ 1,618 $ 667 $ 850 $ 383 $ 153 $ 5,272 Current period gross charge-offs $ — $ — $ — $ 24 $ 2 $ 2 $ 28 Branch retail Performing $ — $ — $ — $ 1,585 $ 2,177 $ 3,117 $ 6,879 Non-performing — — — — — — — Subtotal $ — $ — $ — $ 1,585 $ 2,177 $ 3,117 $ 6,879 Current period gross charge-offs $ — $ — $ — $ 6 $ 3 $ 29 $ 38 Indirect Performing $ 25,045 $ 80,594 $ 81,613 $ 60,427 $ 45,051 $ 9,402 $ 302,132 Non-performing — 34 — 149 43 — 226 Subtotal $ 25,045 $ 80,628 $ 81,613 $ 60,576 $ 45,094 $ 9,402 $ 302,358 Current period gross charge-offs $ — $ 17 $ 172 $ 229 $ 155 $ 68 $ 641 Total consumer Performing $ 28,692 $ 86,031 $ 100,469 $ 77,576 $ 53,737 $ 37,275 $ 383,780 Non-performing — 34 — 149 43 775 1,001 $ 28,692 $ 86,065 $ 100,469 $ 77,725 $ 53,780 $ 38,050 $ 384,781 Current period gross charge-offs $ — $ 17 $ 172 $ 259 $ 160 $ 101 $ 709 The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of December 31, 2023: December 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 $ 7,913 $ 37,068 $ 41,800 $ 804 $ — $ 555 $ 88,140 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 7,913 $ 37,068 $ 41,800 $ 804 $ — $ 555 $ 88,140 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by multi-family residential properties Pass $ 407 $ 29,683 $ 5,950 $ 5,676 $ 7,063 $ 13,618 $ 62,397 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 407 $ 29,683 $ 5,950 $ 5,676 $ 7,063 $ 13,618 $ 62,397 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by non-farm, non-residential properties Pass $ 26,521 $ 36,141 $ 23,551 $ 56,404 $ 18,127 $ 46,261 $ 207,005 Special Mention — 532 1,776 344 — 1,448 4,100 Substandard — — — 152 — 2,329 2,481 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 26,521 $ 36,673 $ 25,327 $ 56,900 $ 18,127 $ 50,038 $ 213,586 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans Pass $ 10,948 $ 6,187 $ 14,586 $ 2,593 $ 1,565 $ 22,614 $ 58,493 Special Mention — 159 782 174 38 — 1,153 Substandard — 116 191 59 260 243 869 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 10,948 $ 6,462 $ 15,559 $ 2,826 $ 1,863 $ 22,857 $ 60,515 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Total commercial Pass $ 45,789 $ 109,079 $ 85,887 $ 65,477 $ 26,755 $ 83,048 $ 416,035 Special Mention — 691 2,558 518 38 1,448 5,253 Substandard — 116 191 211 260 2,572 3,350 Doubtful — — — — — — — Loss — — — — — — — $ 45,789 $ 109,886 $ 88,636 $ 66,206 $ 27,053 $ 87,068 $ 424,638 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — December 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 $ 4,230 $ 20,172 $ 14,986 $ 6,675 $ 8,950 $ 20,334 $ 75,347 Non-performing — — — — — 853 853 Subtotal $ 4,230 $ 20,172 $ 14,986 $ 6,675 $ 8,950 $ 21,187 $ 76,200 Current period gross charge-offs $ — $ — $ — $ — $ — $ 97 $ 97 Direct consumer Performing $ 2,383 $ 1,157 $ 1,485 $ 575 $ 225 $ 113 $ 5,938 Non-performing — — — — — — — Subtotal $ 2,383 $ 1,157 $ 1,485 $ 575 $ 225 $ 113 $ 5,938 Current period gross charge-offs $ 2 $ 5 $ 316 $ 118 $ 42 $ 88 $ 571 Branch retail Performing $ — $ — $ 2,160 $ 2,696 $ 1,572 $ 2,242 $ 8,670 Non-performing — — — — — — — Subtotal $ — $ — $ 2,160 $ 2,696 $ 1,572 $ 2,242 $ 8,670 Current period gross charge-offs $ — $ — $ 108 $ 140 $ 57 $ 140 $ 445 Indirect consumer Performing $ 88,688 $ 89,376 $ 66,147 $ 50,883 $ 5,485 $ 5,712 $ 306,291 Non-performing — — 54 — — — 54 Subtotal $ 88,688 $ 89,376 $ 66,201 $ 50,883 $ 5,485 $ 5,712 $ 306,345 Current period gross charge-offs $ 6 $ 235 $ 332 $ 270 $ 39 $ 50 $ 932 Total consumer: Performing $ 95,301 $ 110,705 $ 84,778 $ 60,829 $ 16,232 $ 28,401 $ 396,246 Non-performing — — 54 — — 853 907 $ 95,301 $ 110,705 $ 84,832 $ 60,829 $ 16,232 $ 29,254 $ 397,153 Current period gross charge-offs $ 8 $ 240 $ 756 $ 528 $ 138 $ 375 $ 2,045 The following table provides an aging analysis of past due loans by class as of June 30, 2024: As of June 30, 2024 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 72,183 $ 72,183 $ — Secured by 1-4 family residential 175 18 — 193 70,079 70,272 — Secured by multi-family residential — — — — 97,527 97,527 — Secured by non-farm, non-residential — — 1,253 1,253 217,133 218,386 — Commercial and industrial loans 9 — 50 59 46,190 46,249 — Consumer loans: Direct 31 4 — 35 5,237 5,272 — Branch retail 29 20 — 49 6,830 6,879 — Indirect 123 37 226 386 301,972 302,358 — Total $ 367 $ 79 $ 1,529 $ 1,975 $ 817,151 $ 819,126 $ — As a percentage of total loans 0.04 % 0.01 % 0.19 % 0.24 % 99.76 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2023: As of December 31, 2023 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 88,140 $ 88,140 $ — Secured by 1-4 family residential 820 177 23 1,020 75,180 76,200 — Secured by multi-family residential — — — — 62,397 62,397 — Secured by non-farm, non-residential — — 1,302 1,302 212,284 213,586 — Commercial and industrial loans 89 34 147 270 60,245 60,515 — Consumer loans: Direct 42 — — 42 5,896 5,938 — Branch retail 39 1 — 40 8,630 8,670 — Indirect 316 33 54 403 305,942 306,345 — Total $ 1,306 $ 245 $ 1,526 $ 3,077 $ 818,714 $ 821,791 $ — As a percentage of total loans 0.15 % 0.03 % 0.19 % 0.37 % 99.63 % 100.00 % The tables below present the amortized cost of loans on nonaccrual status and loans past due 90 days or more and still accruing interest as of June 30, 2024 and December 31, 2023. Also presented is the balance of loans on nonaccrual status at June 30, 2024 and December 31, 2023 for which there was no related allowance for credit losses recorded. Loans on Non-Accrual Status June 30, 2024 (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 808 424 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,252 1,253 — Commercial and industrial loans 51 51 — Consumer loans: — Direct — — — Branch retail — — — Indirect 226 — — Total loans $ 2,337 $ 1,728 $ — Loans on Non-Accrual Status December 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 891 462 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,302 1,314 — Commercial and industrial loans 152 77 — Consumer loans: — Direct — — — Branch retail — — — Indirect 55 — — Total loans $ 2,400 $ 1,853 $ — The following tables present the amortized cost basis of collateral dependent loans as of June 30, 2024 and December 31, 2023, which loans are individually evaluated to determine credit losses: June 30, 2024 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 449 — 449 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,660 — 1,660 Commercial and industrial — 3,596 3,596 Direct consumer — — — Total loans individually evaluated $ 2,109 $ 3,596 $ 5,705 December 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 485 — 485 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,333 — 2,333 Commercial and industrial — 112 112 Direct consumer — — — Total loans individually evaluated $ 2,818 $ 112 $ 2,930 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 2024 or 2023 resulted in the permanent reduction of the recorded investment in the loan. During the six months ended June 30, 2024 and the year ended December 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 six months ended June 30, 2024 and 2023 : June 30, 2024 June 30, 2023 (Dollars in Thousands) Beginning balance $ 602 $ 686 Additions (1) — — Sales proceeds — — Gross gains — — Gross losses — — Net gains — — Impairment ( 60 ) ( 69 ) Ending balance $ 542 $ 617 (1) Additions to other real estate owned (“OREO”) may include transfers from loans, transfers from closed branches, and capitalized improvements to existing OREO properties. Valuation adjustments are recorded in other non-interest expense and are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase. Net realizable value less estimated costs to sell of foreclosed residential real estate held by the Company was zero and $ 20 thousand as of June 30, 2024 and June 30, 2023 , respectively. In addition, the Company held $ 18 thousand and zero in consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of June 30, 2024 and 2023, respectively. Repossessed Assets 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 six months ended June 30, 2024 and 2023 : June 30, 2024 June 30, 2023 (Dollars in Thousands) Beginning balance $ 435 $ 83 Transfers from loans 847 740 Sales proceeds ( 480 ) ( 291 ) Gross gains — — Gross losses ( 657 ) ( 324 ) Net losses ( 657 ) ( 324 ) Impairment — — Ending balance $ 145 $ 208 Repossessed assets are included in Other Assets in the Company’s condensed consolidated balance sheets. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2024 | |
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 fair value of goodwill is lower than its carrying amount, goodwill must be written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. Goodwill totaled $ 7.4 million as of both June 30, 2024 and December 31, 2023. Goodwill impairment was neither indicated nor recorded during the six months ended June 30, 2024 or the year ended December 31, 2023. 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. No write-downs of core deposit premiums were recorded by the Company during the six months ended June 30, 2024 or the year ended December 31, 2023. The Company’s goodwill and other intangible assets (carrying basis and accumulated amortization) as of June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (Dollars in Thousands) Goodwill $ 7,435 $ 7,435 Core deposit intangible: Gross carrying amount 2,048 2,048 Accumulated amortization ( 1,951 ) ( 1,877 ) Core deposit intangible, net 97 171 Total $ 7,532 $ 7,606 The Company’s estimated remaining amortization expense on intangible assets as of June 30, 2024 was as follows: Amortization Expense (Dollars in Thousands) 2024 $ 48 2025 49 Total $ 97 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 | 6 Months Ended |
Jun. 30, 2024 | |
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 90 days , are available to the Bank through arrangements with correspondent banks and the FRB. As of both June 30, 2024 and December 31, 2023 , 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 both June 30, 2024 and December 31, 2023. • Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source. As of June 30, 2024 and December 31, 2023, the Bank had $ 15.0 million and $ 10.0 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 June 30, 2024 and December 31, 2023 , 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 of the Notes for general corporate purposes, which included repurchasing of the Company’s common stock, and supporting organic growth plans, including the maintenance of the Bank's capital ratios. Net of unamortized debt issuance costs, the Notes were recorded as long-term borrowings totaling $ 10.8 million as of both June 30, 2024 and December 31, 2023 . The table below provides additional information related to the Notes as of and for the six months ended June 30, 2024 and 2023 . June 30, June 30, 2024 2023 (Dollars in Thousands) Balance at period-end $ 10,836 $ 10,763 Average balance during the period $ 10,830 $ 10,757 Maximum month-end balance during the period $ 10,836 $ 10,763 Average rate paid during the period, including amortization of debt issuance costs 4.16 % 4.16 % Weighted average remaining maturity (in years) 7.25 8.25 Available Credit As an additional funding source, the Company has available unused lines of credit with correspondent banks, the FRB and the FHLB. Certain of these funding sources are subject to underlying collateral. As of June 30, 2024 and December 31, 2023, the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements June 30, 2024 December 31, 2023 Correspondent banks None $ 48.0 million $ 48.0 million FHLB advances (1) Subject to collateral $ 276.1 million $ 279.4 million FRB (2) Subject to collateral $ 158.3 million $ 161.7 million (1) These amounts represent the total remaining credit the Company has from the FHLB, but this credit can only be utilized to the extent that underlying collateral exists. The total lendable collateral value of assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 59.8 million and $ 61.7 million as of June 30, 2024 and December 31, 2023, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 45.0 million and $ 40.0 million as of June 30, 2024 and December 31, 2023, respectively, leaving an excess of collateral of $ 14.8 million and $ 21.7 million 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 FRB's discount window, which allows borrowing on pledged collateral that includes eligible investment securities and loans under 90-day terms. The amounts shown in the table represent the Company's unused borrowing capacity as of the applicable date based on collateral pledged to the FRB's discount window. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2024 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8. INCOME TAXES The provision for income taxes was $ 1.3 million for both the six months ended June 30, 2024 and 2023. The Company’s effective tax rate was 23.0 % and 24.1 % , 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 $ 4.8 million and $ 5.3 million as of June 30, 2024 and December 31, 2023 , 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, changes in the allowance for credit losses, and other book-to-tax temporary differences. |
Deferred Compensation Plans
Deferred Compensation Plans | 6 Months Ended |
Jun. 30, 2024 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation Plans | 9. DEFERRED COMPENSATION PLANS Supplemental Retirement Benefits 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 $ 2.8 million and $ 2.9 million as of June 30, 2024 and December 31, 2023, respectively. Non-Employee Directors' Deferred Compensation Plan Non-employee directors may elect to defer payment of all or any portion of their director fees under Bancshares’ Non-Employee Directors’ Deferred Compensation Plan (the “Deferral Plan”). The Deferral Plan permits non-employee directors to invest their directors’ fees and to receive the adjusted value of the deferred amounts in cash and/or shares of Bancshares’ common stock, as applicable. Neither Bancshares nor the Bank makes any contribution to participants’ accounts under the Deferral Plan. As of June 30, 2024 and December 31, 2023, a total of 105,433 and 113,042 shares of Bancshares common stock, respectively, were being held as stock equivalents in connection with the Deferral Plan. All deferred fees and shares of Bancshares common stock are reflected as compensation expense in the period earned. The Company classifies all deferred directors’ fees allocated to be paid in shares as equity as additional paid-in capital. The Company may use issued shares or shares of treasury stock to satisfy these obligations when due. |
Stock Awards
Stock Awards | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Awards | 10. STOCK AWARDS In 2013, Bancshares’ shareholders authorized the Company, under the direction of the Compensation Committee of the Board of Directors, to provide share-based compensation awards to eligible employees, directors and consultants of the Company and its affiliates pursuant to the 2013 Incentive Plan. Available award types included stock options, stock appreciation rights, restricted stock and restricted stock units, and performance share awards. The 2013 Incentive Plan, as amended in 2019, expired in March 2023. In April 2023, Bancshares’ shareholders approved the 2023 Incentive Plan, which authorizes the Compensation Committee to grant substantially the same types of share-based awards to eligible employees, directors and consultants. Collectively, the 2013 Incentive Plan and the 2023 Incentive Plan are herein referred to as the Company’s “Incentive Plan.” In accordance with the Incentive Plan, shares of common stock available for issuance pursuant to 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. Since the origination of the Incentive Plan, through June 30, 2024, only stock options and restricted stock have been granted. Stock-based compensation expense related to stock awards totaled $ 0.3 million for both the six months ended June 30, 2024 and 2023, respectively. Stock Options Stock option awards have been granted with an exercise price equal to the market price of the Company’s common stock on the date of the grant and have vesting periods ranging from one to three years , with 10 -year contractual terms. The Company recognizes the cost of services received in exchange for stock option awards based on the grant date fair value of the award, with compensation expense recognized on a straight-line basis over the award’s vesting period. The fair value of outstanding awards was determined using the Black-Scholes option pricing model. The Company did no t grant any stock option awards during the six months ended June 30, 2024 or 2023. The following table summarizes the Company’s stock option activity for the periods presented. Six Months Ended June 30, 2024 June 30, 2023 Number of Average Number of Average Options: Outstanding, beginning of period 411,900 $ 9.77 419,650 $ 9.79 Granted — — — — Exercised 83,700 8.14 — — Expired 500 8.00 — — Forfeited — — — — Options outstanding, end of period 327,700 $ 10.19 419,650 $ 9.79 Options exercisable, end of period 327,700 $ 10.19 419,650 $ 9.79 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 $ 0.2 million and zero as of June 30, 2024 and 2023, respectively. Restricted Stock During the six months ended June 30, 2024 and 2023, 55,300 shares and 57,300 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 | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Leases | 11. LEASES The Company is involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from one year to nine 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 Company also leases certain office facilities to third parties and classifies these leases as operating leases. The following table provides a summary of the components of lease income and expense, as well as the reporting location in the interim condensed consolidated statements of operations, for the three and six months ended June 30, 2024 and 2023: Location in the Condensed Three Months Ended Six Months Ended Consolidated Statements June 30, June 30, June 30, June 30, (Dollars in Thousands) (Dollars in Thousands) Operating lease income (1) Lease income $ 253 $ 235 $ 510 $ 466 Operating lease expense (2) Net occupancy and equipment $ 157 $ 108 $ 313 $ 216 (1) Operating lease income includes rental income from owned properties (2) Includes short-term lease costs. For the three and six months ended June 30, 2024 and 2023 , short-term lease costs were nominal in amount. The following table provides supplemental lease information for operating leases on the interim condensed consolidated balance sheet as of June 30, 2024 and December 31, 2023: Location in Consolidated June 30, December 31, (Dollars in Operating lease right-of-use assets Other assets $ 1,859 $ 2,019 Operating lease liabilities Other liabilities $ 1,904 $ 2,055 Weighted-average remaining lease term (in years) 5.87 6.37 Weighted-average discount rate 4.10 % 4.10 % The following table provides supplemental lease information for the interim condensed consolidated statements of cash flows for the six months ended June 30, 2024 and 2023: Six Months Ended June 30, June 30, (Dollars in Thousands) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 197 $ 215 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 June 30, 2024: Minimum (Dollars in Thousands) 2024 $ 198 2025 295 2026 302 2027 308 2028 269 2029 and thereafter 930 Total future minimum lease payments $ 2,302 Less: Imputed interest 398 Total operating lease liabilities $ 1,904 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 12. DERIVATIVE FINANCIAL INSTRUMENTS The Company uses derivative instruments to minimize unplanned fluctuations in earnings and cash flows caused by interest rate volatility. The Company’s interest rate risk management strategy generally involves modifying the repricing characteristics of certain assets and liabilities to mitigate negative impacts on net interest margin and/or cash flow. Derivative instruments utilized by the Company generally include interest rate swap contracts or option contracts, such as caps and floors. The fair values of derivative instruments are carried in the Company’s consolidated balance sheets as assets and/or liabilities. The Company does not use derivatives for speculative purposes and generally enters into transactions that have a qualifying hedge relationship. When hedge accounting is used, derivatives are classified as either cash flow hedges or fair value hedges. The Company may also enter into derivative contracts that are not designated as hedges in order to mitigate economic risks or risks associated with volatility in connection with customer derivative transactions. As of June 30, 2024, the Company had active hedges in place that were receiving hedge accounting treatment, as well as derivative instruments that were not receiving hedge accounting treatment. In addition, the Company’s net interest income continued to benefit from certain derivative contracts that were terminated in prior periods, but that were originally designated for hedge accounting purposes. In accordance with original hedge relationship, unrealized gains recorded upon termination are being reclassified to interest income or interest expense over the original terms of the derivative contracts. Active Hedges In June 2023, the Company entered into three forward interest rate swap contracts on a pool of fixed rate indirect consumer loans. Each of the three contracts has a $ 10.0 million notional amount, or $ 30.0 million in aggregate. The interest rate swaps were designated as derivative instruments in fair value hedges with the objective of effectively converting a pool of fixed rate indirect consumer loans to a variable rate throughout the hedge durations in accordance with the portfolio layer method. Under the contractual arrangements, for each swap, the Company pays a fixed interest rate and receives a variable interest rate based on the SOFR, on the notional amounts, with monthly net settlements. The three swap contracts are scheduled to terminate at different maturity dates, including December 1, 2025 , December 1, 2026 , and June 1, 2027 . As of both June 30, 2024 and December 31, 2023, the hedge relationships for all three swaps were designated effective, and accordingly, changes in the fair value of the contracts were included as adjustment to the underlying fixed rate consumer loans. Hedges Terminated in 2023 In February 2023, the Company voluntarily terminated four interest rates swap contracts, each with notional amounts of $ 10.0 million, or an aggregate amount of $ 40.0 million. Two of the swaps were previously designated as cash flow hedges, while two were previously 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, net of tax, and is being reclassified to reduce interest expense over the original terms of the swap contracts. Remaining unrealized gains associated with these terminated cash flow hedges totaled $ 0.4 million and $ 0.7 million as of June 30, 2024 and December 31, 2023, respectively. The termination of the fair value hedges resulted in an unrealized gain totaling $ 1.0 million which is being reclassified to increase interest income over the original terms of the swap contracts. Remaining unrealized gains associated with the fair value hedges totaled $ 0.1 million and $ 0.4 million as of June 30, 2024 and December 31, 2023, respectively. Hedge Terminated in 2022 In May 2022, the Company voluntarily terminated one interest rate swap contract with a notional amount of $ 10.0 million. The swap was previously designated as a cash flow hedge. The termination resulted in a net unrealized gain of $ 0.3 million. The unrealized gain was initially recorded in accumulated other comprehensive income, net of tax, and is being reclassified to reduce interest expense over the original term of the swap contract. Remaining unrealized gains associated with this terminated cash flow hedge totaled $ 12 thousand and $ 84 thousand as of June 30, 2024 and December 31, 2023, respectively. Derivatives Not Designated as Hedging Instruments In March 2024, the Company entered into two interest rate floor contracts, each with a notional amount of $ 25.0 million, or $ 50.0 million in aggregate. The interest rate floor contracts were not designated as hedging instruments, and accordingly, changes in the fair value of the contracts are being recorded as non-interest income or expense. Both of the derivative contracts are intended to mitigate the Company’s risk of loss associated with shifts downward in the SOFR. One of the contracts will provide cash flow to the Company in the event the SOFR decreases below 4.0 % before the contract’s designated termination date of March 27, 2025 , while the other contract will provide cash flow to the Company in the event the SOFR decreases below 3.0 % prior to the contract’s designated termination date of March 27, 2026 . Presentation The table below reflects the notional amount and fair value of active derivative instruments included on the Company’s consolidated balance sheets on a net basis as of June 30, 2024 and December 31, 2023. As of June 30, 2024 As of December 31, 2023 Estimated Estimated Notional Fair Value Notional Fair Value Amount Gain (Loss) (1) Amount Gain (Loss) (1) (Dollars in Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to fixed rate indirect consumer loans $ 30,000 $ 336 $ 30,000 $ ( 119 ) Total fair value hedges 336 ( 119 ) Total derivatives designated as hedging instruments, net 336 ( 119 ) Derivatives not designated as hedging instruments: Interest rate floors $ 50,000 37 $ — — Total derivatives not designated as hedging instruments, net $ 37 $ — (1) Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets. The following table presents the net effects of derivative instruments on the Company’s interim condensed consolidated statements of operations for the three and six months ended June 30, 2024 and 2023 . 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 Six Months Ended Consolidated Statements June 30, June 30, June 30, June 30, (Dollars in Thousands) (Dollars in Thousands) Interest income Interest and fees on loans $ 260 $ 157 $ 520 $ 325 Interest expense Interest on deposits 120 120 240 256 Interest expense Interest on borrowings 36 36 72 72 Non-interest expense Other non-interest expense ( 38 ) — ( 62 ) — Net increase (decrease) to income before income taxes $ 378 $ 313 $ 770 $ 653 |
Other Operating Income and Expe
Other Operating Income and Expense | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Operating Income and Expense | 13. OTHER OPERATING INCOME AND EXPENSE Other Operating Income Other operating income for the three and six months ended June 30, 2024 and 2023 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in Thousands) Bank-owned life insurance $ 133 $ 115 $ 264 $ 229 ATM fee income 97 110 182 222 Other income 54 57 147 144 Total $ 284 $ 282 $ 593 $ 595 Other Operating Expense Other operating expense for the three and six months ended June 30, 2024 and 2023 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in Thousands) Postage, stationery and supplies $ 136 $ 160 $ 314 $ 321 Telephone/data communication 193 182 385 351 Collection and recoveries 34 90 60 181 Directors fees 85 95 181 190 Software amortization 87 103 177 227 Other real estate/foreclosure expense, net 30 15 61 21 Other expense 641 650 1,018 1,224 Total $ 1,206 $ 1,295 $ 2,196 $ 2,515 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 14. 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: June 30, December 31, (Dollars in Thousands) Standby letters of credit $ — $ — Standby performance letters of credit $ 651 $ 669 Commitments to extend credit $ 107,300 $ 141,121 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 June 30, 2024 and December 31, 2023, 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. At each quarter end date, the Company calculates an allowance for unfunded lending commitments, including those described in the table above. The Company's allowance for unfunded commitments totaled $ 0.5 million and $ 0.6 million as of June 30, 2024 and December 31, 2023, respectively. Additional discussion related to the calculation of the allowance for unfunded commitments is included in Note 4, "Loans and Leases". 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 June 30, 2024 and December 31, 2023. 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 | 6 Months Ended |
Jun. 30, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 15. FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows a uniform framework for estimating and classifying the fair value of financial instruments. The assumptions used in the estimation of the fair value of the Company’s financial instruments are detailed below. The following disclosures should not be considered a representation of the liquidation value of the Company, but rather represent a good-faith estimate of the increase or decrease in value of financial instruments held by the Company since purchase, origination or issuance. Fair Value Hierarchy Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. In determining fair value, the Company uses various methods, including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair value. Assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: • Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange or Nasdaq. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2 — Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. • Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The Company rarely transfers assets and liabilities measured at fair value between Level 1 and Level 2 measurements. Trading account assets and securities available-for-sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the best method of pricing for an individual security. Such transfers are accounted for as if they occurred at the beginning of a reporting period. There were no such transfers during the six months ended June 30, 2024 or the year ended December 31, 2023. 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 government sponsored 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 Contracts Interest rate derivative contracts are used by the Company to mitigate risk associated with changes in interest rates. The fair value of these contracts 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 June 30, 2024 and December 31, 2023. Fair Value Measurements as of June 30, 2024 Using Totals At Quoted Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 61,577 $ — $ 61,577 $ — Commercial 13,460 — 13,460 — Obligations of U.S. government-sponsored agencies 11,057 — 11,057 — Obligations of states and political subdivisions 1,544 — 1,544 — Corporate notes 14,974 — 14,974 — U.S. Treasury securities 41,396 41,396 — — Interest rate derivative contracts: Other assets - interest rate swaps 336 — 336 — Other assets - interest rate floors 37 — 37 — Fair Value Measurements as of December 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 44,728 $ — $ 44,728 $ — Commercial 9,040 — 9,040 — Obligations of U.S. government-sponsored agencies 11,280 — 11,280 Obligations of states and political subdivisions 1,558 — 1,558 — Corporate notes 14,957 14,957 — U.S. Treasury securities 54,002 54,002 — — Interest rate derivative contracts: Other liabilities - interest rate swaps 119 — 119 — Fair Value Measurements on a Non-recurring Basis Impaired Loans Loans are considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due under the contractual terms of the loan agreement. These loans are evaluated separately in accordance with the Company’s policies for calculating the allowance for credit losses on loans and leases. The fair value of impaired loans with specific allocations of the allowance for credit losses on loans and leases is typically based on recent real estate appraisals. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by independent appraisers to adjust for differences between the comparable sales and income data available. Appraised values are discounted by management for estimated costs to sell and may be discounted further based on management’s knowledge of the collateral, changes in market conditions since the most recent appraisal and/or management’s knowledge of the borrower and the borrower’s business. Such adjustments are usually significant and typically result in Level 3 classification of the inputs for determining fair value. Non-real estate collateral may be valued using an appraisal, net book value per the borrower’s financial statements, or aging reports, adjusted or discounted based on management’s historical knowledge of the borrower’s business, resulting in a Level 3 fair value classification. Impaired loans are evaluated on a quarterly basis for additional impairment and adjusted accordingly. OREO and Other Assets Held-for-Sale OREO consists of properties obtained through foreclosure or in satisfaction of loans and is recorded at net realizable value, less estimated cost to sell. Estimates of fair value are generally based on third-party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes discounted based on management’s knowledge of the property and/or changes in market conditions from the date of the most recent appraisal. Such discounts are typically significant unobservable inputs for determining fair value. As of June 30, 2024 and December 31, 2023, 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 Company 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 June 30, 2024 and December 31, 2023: Fair Value Measurements as of June 30, 2024 Using Totals At Quoted Significant Significant (Dollars in Thousands) Impaired loans $ — $ — $ — $ — OREO and other assets held-for-sale 542 — — 542 Fair Value Measurements as of December 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Impaired loans $ 51 $ — $ — $ 51 OREO and other assets held-for-sale 602 — — 602 Non-recurring Fair Value Measurements Using Significant Unobservable Inputs The following tables present information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of June 30, 2024 and December 31, 2023. The tables include 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 June 30, 2024 and December 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: Impaired loans $ — Multiple data points, Appraisal comparability 9 %- 10 % 9.5 % OREO and other assets held-for-sale $ 542 Discount to appraised Appraisal comparability 9 %- 10 % 9.5 % Level 3 Significant Unobservable Input Assumptions Fair Value Valuation Technique Unobservable Input Quantitative Range (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 51 Multiple data points, Appraisal comparability 9 %- 10 % 9.5 % OREO and other assets held-for-sale $ 602 Discount to appraised Appraisal comparability 9 %- 10 % 9.5 % Impaired Loans Impaired loans are valued based on multiple data points indicating the fair value for each loan. The primary data point is the appraisal value of the underlying collateral, to which a discount is applied. Management establishes this discount or comparability adjustment based on recent sales of similar property types. As liquidity in the market increases or decreases, the comparability adjustment and the resulting asset valuation are impacted. OREO OREO under a binding contract for sale is valued based on contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Other Assets Held-for-Sale Assets designated as held-for-sale that are under a binding contract are valued based on the contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Fair Value of Financial Instruments The following methods and assumptions were used by the Company in estimating the fair value of its financial instruments: Cash, due from banks and federal funds sold: The carrying amount of cash, due from banks and federal funds sold approximates fair value. Federal Home Loan Bank stock: Based on the redemption provision of the FHLB, the stock has no quoted market value and is carried at cost. Investment securities: Fair values of investment securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on market prices of comparable instruments. Derivative instruments: The fair value of derivative instruments is based on information obtained from a third-party financial institution. This information is periodically evaluated by the Company and, as necessary, corroborated against other third-party information. Accrued interest receivable and payable: The carrying amount of accrued interest approximates fair value. Loans, net: The fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayment discount spreads, credit loss and liquidity premiums. Demand and savings deposits: The fair values of demand deposits are equal to the carrying value of such deposits. Demand deposits include non-interest-bearing demand deposits, savings accounts, NOW accounts and money market demand accounts. Time deposits: The fair values of relatively short-term time deposits are equal to their carrying values. Discounted cash flows are used to value long-term time deposits. The discount rate used is based on interest rates currently offered by the Company on comparable deposits as to amount and term. Short-term borrowings: These borrowings may consist of federal funds purchased, securities sold under agreements to repurchase and the floating rate borrowings from the FHLB account. Due to the short-term nature of these borrowings, fair values approximate carrying values. Long-term 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 June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 58,220 $ 58,220 $ 58,220 $ — $ — Investment securities available-for-sale 144,008 144,008 41,396 102,612 — Investment securities held-to-maturity 868 812 — 812 — Federal funds sold 5,520 5,520 — 5,520 — Federal Home Loan Bank stock 1,494 1,494 — — 1,494 Loans, net of allowance for credit losses 808,899 760,790 — — 760,790 Other assets - interest rate swaps 336 336 — 336 — Other assets - interest rate floors 37 37 — 37 — Liabilities: Deposits 954,455 878,189 — 878,189 — Short-term borrowings 15,000 15,000 — 15,000 — Long-term borrowings 10,836 9,652 — 9,652 — December 31, 2023 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 50,279 $ 50,279 $ 50,279 $ — $ — Investment securities available-for-sale 135,565 135,565 54,002 81,563 — Investment securities held-to-maturity 1,104 1,041 — 1,041 — Federal funds sold 9,475 9,475 — 9,475 — Federal Home Loan Bank stock 1,201 1,201 — — 1,201 Loans, net of allowance for credit losses 811,284 773,800 — — 773,800 Liabilities: Deposits 950,191 882,746 — 882,746 — Short-term borrowings 10,000 10,000 — 10,000 — Long-term borrowings 10,799 9,814 9,814 Other liabilities - interest rate swaps 119 119 119 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2024 | |
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 2024 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 2023 Form 10-K. |
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 stock equivalent shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors under the Non-Employee Directors' Deferred Compensation Plan (as defined below and discussed further in Note 9). 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 Company's Incentive Plan (as defined below and discussed further in Note 10). 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 Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted average shares outstanding 5,770,960 5,868,107 5,762,892 5,851,973 Weighted average director stock equivalent shares 109,747 114,740 111,159 114,504 Basic shares 5,880,707 5,982,847 5,874,051 5,966,477 Dilutive shares 327,700 419,650 327,700 419,650 Diluted shares 6,208,407 6,402,497 6,201,751 6,386,127 Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Dollars in Thousands, Except Per Share Data) Net income $ 2,127 $ 2,023 $ 4,234 $ 4,095 Basic net income per share $ 0.36 $ 0.34 $ 0.72 $ 0.69 Diluted net income per share $ 0.34 $ 0.31 $ 0.68 $ 0.64 |
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 or settlement of derivative contracts. |
Accounting Standards Not Yet Adopted | Accounting Standards Not Yet Adopted The following table provides a description of recent accounting standards that have not yet been adopted as of June 30, 2024. Standard Description Required Date of Adoption Effect on Financial Statements or other significant matters ASU 2023-06, Disclosure Improvements: Codification Amendments in Response to the SEC's Disclosure Update and Simplification Initiative This ASU incorporates into the Codification 14 of the 27 disclosures referred by the SEC in Release No. 33-10532, Disclosure Update and Simplification. This update clarifies and improves the disclosure and presentation requirements of a variety of topics in the Codification to align with the SEC's regulations. The date on which the SEC's removal of that related disclosure from Regulation S-X or Regulation S-K becomes effective. The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. ASU 2023-07, Segment Reporting (Topic 280) Improvements to Reportable Segment Disclosures This ASU expands the disclosure requirements relating to reportable segments, including requiring entities to disclose information about a reportable segment’s significant expenses, among other changes. This ASU does not change how an entity identifies reportable segments or the accounting for segments. The Company has one reporting segment, therefore, this ASU will not impact our Consolidated Financial Statements; however, this ASU requires disclosure of the title and position of the chief operating decision maker and an explanation of how resources are allocated. Annual financial statements as of and for the year ending December 31, 2024 The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. ASU 2023-09, Income Taxes (Topic 740) Improvements to Income Tax Disclosures This ASU improves the transparency of income tax disclosures by requiring (1) consistent categories and greater disaggregation of information in the rate reconciliation and (2) income taxes paid disaggregated by jurisdiction. It also includes certain other amendments to improve the effectiveness of income tax disclosures. Annual financial statements as of and for the year ending December 31, 2025 The adoption of this guidance is not likely to have a material impact. Management will continue to evaluate through date of adoption. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 Weighted average shares outstanding 5,770,960 5,868,107 5,762,892 5,851,973 Weighted average director stock equivalent shares 109,747 114,740 111,159 114,504 Basic shares 5,880,707 5,982,847 5,874,051 5,966,477 Dilutive shares 327,700 419,650 327,700 419,650 Diluted shares 6,208,407 6,402,497 6,201,751 6,386,127 Three Months Ended Six Months Ended June 30, June 30, 2024 2023 2024 2023 (Dollars in Thousands, Except Per Share Data) Net income $ 2,127 $ 2,023 $ 4,234 $ 4,095 Basic net income per share $ 0.36 $ 0.34 $ 0.72 $ 0.69 Diluted net income per share $ 0.34 $ 0.31 $ 0.68 $ 0.64 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 were as follows: Available-for-Sale June 30, 2024 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 64,172 $ 441 $ ( 3,036 ) $ 61,577 Commercial 13,758 3 ( 301 ) 13,460 Obligations of U.S. government-sponsored agencies 11,644 88 ( 675 ) 11,057 Obligations of states and political subdivisions 1,599 — ( 55 ) 1,544 Corporate notes 17,753 — ( 2,779 ) 14,974 U.S. Treasury securities 44,012 — ( 2,616 ) 41,396 Total $ 152,938 $ 532 $ ( 9,462 ) $ 144,008 Held-to-Maturity June 30, 2024 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 400 $ — $ ( 17 ) $ 383 Obligations of U.S. government-sponsored agencies 422 — ( 34 ) 388 Obligations of states and political subdivisions 46 — ( 5 ) 41 Total $ 868 $ — $ ( 56 ) $ 812 Available-for-Sale December 31, 2023 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 47,221 $ 580 $ ( 3,073 ) $ 44,728 Commercial 9,446 — ( 406 ) 9,040 Obligations of U.S. government-sponsored agencies 11,849 158 ( 727 ) 11,280 Obligations of states and political subdivisions 1,621 — ( 63 ) 1,558 Corporate notes 17,757 — ( 2,800 ) 14,957 U.S. Treasury securities 56,999 — ( 2,997 ) 54,002 Total $ 144,893 $ 738 $ ( 10,066 ) $ 135,565 Held-to-Maturity December 31, 2023 Amortized Gross Gross Estimated (Dollars in Thousands) Mortgage-backed securities: Commercial $ 575 $ — $ ( 22 ) $ 553 Obligations of U.S. government-sponsored agencies 471 — ( 34 ) 437 Obligations of states and political subdivisions 58 — ( 7 ) 51 Total $ 1,104 $ — $ ( 63 ) $ 1,041 |
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 June 30, 2024 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated (Dollars in Thousands) Maturing within one year $ 14,219 $ 13,828 $ — $ — Maturing after one to five years 39,035 36,357 164 157 Maturing after five to ten years 53,259 47,617 538 503 Maturing after ten years 46,425 46,206 166 152 Total $ 152,938 $ 144,008 $ 868 $ 812 |
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, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2024 and December 31, 2023. Available-for-Sale June 30, 2024 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 14,061 $ ( 66 ) $ 31,727 $ ( 2,970 ) Commercial 5,623 ( 17 ) 7,241 ( 284 ) Obligations of U.S. government-sponsored agencies — — 4,415 ( 675 ) Obligations of states and political subdivisions — — 1,544 ( 55 ) Corporate notes — — 14,974 ( 2,779 ) U.S. Treasury securities — — 41,396 ( 2,616 ) Total $ 19,684 $ ( 83 ) $ 101,297 $ ( 9,379 ) Held-to-Maturity June 30, 2024 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ — $ — $ 383 $ ( 17 ) Obligations of U.S. government-sponsored agencies — — 388 ( 34 ) Obligations of states and political subdivisions — — 41 ( 5 ) Total $ — $ — $ 812 $ ( 56 ) Available-for-Sale December 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Residential $ 94 $ ( 1 ) $ 35,584 $ ( 3,072 ) Commercial 600 ( 5 ) 8,408 ( 401 ) Obligations of U.S. government-sponsored agencies — — 4,367 ( 727 ) Obligations of states and political subdivisions — — 1,558 ( 63 ) Corporate notes 771 ( 229 ) 14,186 ( 2,571 ) U.S. Treasury securities — — 54,002 ( 2,997 ) Total $ 1,465 $ ( 235 ) $ 118,105 $ ( 9,831 ) Held-to-Maturity December 31, 2023 Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized (Dollars in Thousands) Mortgage-backed securities: Commercial $ — $ — $ 553 $ ( 22 ) Obligations of U.S. government-sponsored agencies — — 436 ( 34 ) Obligations of states and political subdivisions — — 52 ( 7 ) Total $ — $ — $ 1,041 $ ( 63 ) |
Loans And Leases (Tables)
Loans And Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Financing Receivable, Allowance for Credit Loss, Writeoff, after Recovery [Abstract] | |
Schedule of Loan Portfolio | As of June 30, 2024 and December 31, 2023, the composition of the loan portfolio by portfolio segment was as follows: June 30, 2024 December 31, 2023 Real estate loans: Construction, land development and other land loans $ 72,183 $ 88,140 Secured by 1-4 family residential properties 70,272 76,200 Secured by multi-family residential properties 97,527 62,397 Secured by non-farm, non-residential properties 218,386 213,586 Commercial and industrial loans and leases (1) 46,249 60,515 Consumer loans: Direct 5,272 5,938 Branch retail 6,879 8,670 Indirect 302,358 306,345 Total loans 819,126 821,791 Allowance for credit losses on loans and leases 10,227 10,507 Net loans $ 808,899 $ 811,284 (1) Includes equipment financing leases, which totaled $ 12.6 million as of both June 30, 2024 and December 31, 2023 . |
Allowance for Credit Losses on Loans and Leases | The following tables present changes in the allowance for credit losses on loans and leases, as well as unfunded lending commitments, during the six months ended June 30, 2024 and 2023: As of and for the Six Months Ended June 30, 2024 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for credit losses on loans and leases: Beginning balance $ 565 $ 591 $ 415 $ 1,425 $ 513 $ 64 $ 436 $ 6,498 $ 10,507 Charge-offs — ( 2 ) — — ( 97 ) ( 28 ) ( 38 ) ( 641 ) ( 806 ) Recoveries 20 35 — — — 178 93 88 414 Provision for (recovery of) credit losses ( 50 ) ( 78 ) 343 280 ( 23 ) ( 162 ) ( 353 ) 155 112 Allowance for credit losses on loans and leases $ 535 $ 546 $ 758 $ 1,705 $ 393 $ 52 $ 138 $ 6,100 $ 10,227 Allowance for credit losses on unfunded lending commitments: Beginning balance $ 450 $ 1 $ 9 $ 2 $ 102 $ 5 $ — $ — $ 569 Provision for (recovery of) credit losses on unfunded lending commitments ( 100 ) ( 1 ) ( 1 ) 4 ( 14 ) — — ( 112 ) Allowance for credit losses on unfunded lending commitments $ 350 $ — $ 8 $ 6 $ 88 $ 5 $ — $ — $ 457 As of and for the Six Months Ended June 30, 2023 Construction, Real Estate Real Non- Commercial and Direct Branch Retail Indirect Total (Dollars in Thousands) Allowance for credit losses on loans and leases: 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 — ( 55 ) — — — ( 415 ) ( 266 ) ( 301 ) ( 1,037 ) Recoveries — 23 — — — 347 146 33 549 Provision for (recovery of) credit losses on loans and leases 204 11 ( 145 ) ( 76 ) ( 327 ) ( 215 ) ( 90 ) 1,117 479 Allowance for credit losses on loans and leases $ 627 $ 772 $ 416 $ 1,747 $ 572 $ 630 $ 936 $ 5,836 $ 11,536 Allowance for credit losses on unfunded lending commitments: Beginning balance $ — $ — $ — $ — $ — $ — $ — $ — $ — Impact of adopting CECL accounting guidance 172 39 3 2 — 68 8 — 292 Provision for (recovery of) credit losses on unfunded lending commitments 48 15 — 2 24 1 — — 90 Allowance for credit losses on unfunded lending commitments $ 220 $ 54 $ 3 $ 4 $ 24 $ 69 $ 8 $ — $ 382 |
Loans and Leases By Credit Quality Indicators | The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of June 30, 2024: June 30, 2024 Loans at Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Total (Dollars in Thousands) Commercial: Construction, land development and other land loans Pass $ 1,747 $ 9,446 $ 32,704 $ 27,672 $ 53 $ 491 $ 72,113 Special Mention — — — 70 — — 70 Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 1,747 $ 9,446 $ 32,704 $ 27,742 $ 53 $ 491 $ 72,183 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by multi-family residential properties Pass $ 89 $ 400 $ 53,354 $ 17,869 $ 5,627 $ 20,188 $ 97,527 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 89 $ 400 $ 53,354 $ 17,869 $ 5,627 $ 20,188 $ 97,527 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by non-farm, non-residential properties Pass $ 1,471 $ 27,221 $ 35,971 $ 32,100 $ 56,119 $ 62,147 $ 215,029 Special Mention — — 314 — 339 — 653 Substandard — — — 494 149 2,061 2,704 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 1,471 $ 27,221 $ 36,285 $ 32,594 $ 56,607 $ 64,208 $ 218,386 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans and leases Pass $ 3,204 $ 6,277 $ 4,309 $ 12,888 $ 1,505 $ 14,004 $ 42,187 Special Mention — — 35 79 — — 114 Substandard — 3,499 — 5 — 444 3,948 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 3,204 $ 9,776 $ 4,344 $ 12,972 $ 1,505 $ 14,448 $ 46,249 Current period gross charge-offs $ — $ — $ 54 $ — $ 43 $ — $ 97 Total commercial Pass $ 6,511 $ 43,344 $ 126,338 $ 90,529 $ 63,304 $ 96,830 $ 426,856 Special Mention — — 349 149 339 — 837 Substandard — 3,499 — 499 149 2,505 6,652 Doubtful — — — — — — — Loss — — — — — — — $ 6,511 $ 46,843 $ 126,687 $ 91,177 $ 63,792 $ 99,335 $ 434,345 Current period gross charge-offs $ — $ — $ 54 $ — $ 43 $ — $ 97 June 30, 2024 Loans at Amortized Cost Basis by Origination Year 2024 2023 2022 2021 2020 Prior Total (Dollars in Thousands) Consumer: Secured by 1-4 family residential properties Performing $ 2,046 $ 3,819 $ 18,189 $ 14,714 $ 6,126 $ 24,603 $ 69,497 Non-performing — — — — — 775 775 Subtotal $ 2,046 $ 3,819 $ 18,189 $ 14,714 $ 6,126 $ 25,378 $ 70,272 Current period gross charge-offs $ — $ — $ — $ — $ — $ 2 $ 2 Direct Performing $ 1,601 $ 1,618 $ 667 $ 850 $ 383 $ 153 $ 5,272 Non-performing — — — — — — — Subtotal $ 1,601 $ 1,618 $ 667 $ 850 $ 383 $ 153 $ 5,272 Current period gross charge-offs $ — $ — $ — $ 24 $ 2 $ 2 $ 28 Branch retail Performing $ — $ — $ — $ 1,585 $ 2,177 $ 3,117 $ 6,879 Non-performing — — — — — — — Subtotal $ — $ — $ — $ 1,585 $ 2,177 $ 3,117 $ 6,879 Current period gross charge-offs $ — $ — $ — $ 6 $ 3 $ 29 $ 38 Indirect Performing $ 25,045 $ 80,594 $ 81,613 $ 60,427 $ 45,051 $ 9,402 $ 302,132 Non-performing — 34 — 149 43 — 226 Subtotal $ 25,045 $ 80,628 $ 81,613 $ 60,576 $ 45,094 $ 9,402 $ 302,358 Current period gross charge-offs $ — $ 17 $ 172 $ 229 $ 155 $ 68 $ 641 Total consumer Performing $ 28,692 $ 86,031 $ 100,469 $ 77,576 $ 53,737 $ 37,275 $ 383,780 Non-performing — 34 — 149 43 775 1,001 $ 28,692 $ 86,065 $ 100,469 $ 77,725 $ 53,780 $ 38,050 $ 384,781 Current period gross charge-offs $ — $ 17 $ 172 $ 259 $ 160 $ 101 $ 709 The tables below illustrate the carrying amount of loans and leases by credit quality indicator and year of origination as of December 31, 2023: December 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 $ 7,913 $ 37,068 $ 41,800 $ 804 $ — $ 555 $ 88,140 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 7,913 $ 37,068 $ 41,800 $ 804 $ — $ 555 $ 88,140 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by multi-family residential properties Pass $ 407 $ 29,683 $ 5,950 $ 5,676 $ 7,063 $ 13,618 $ 62,397 Special Mention — — — — — — — Substandard — — — — — — — Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 407 $ 29,683 $ 5,950 $ 5,676 $ 7,063 $ 13,618 $ 62,397 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Secured by non-farm, non-residential properties Pass $ 26,521 $ 36,141 $ 23,551 $ 56,404 $ 18,127 $ 46,261 $ 207,005 Special Mention — 532 1,776 344 — 1,448 4,100 Substandard — — — 152 — 2,329 2,481 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 26,521 $ 36,673 $ 25,327 $ 56,900 $ 18,127 $ 50,038 $ 213,586 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Commercial and industrial loans Pass $ 10,948 $ 6,187 $ 14,586 $ 2,593 $ 1,565 $ 22,614 $ 58,493 Special Mention — 159 782 174 38 — 1,153 Substandard — 116 191 59 260 243 869 Doubtful — — — — — — — Loss — — — — — — — Subtotal $ 10,948 $ 6,462 $ 15,559 $ 2,826 $ 1,863 $ 22,857 $ 60,515 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — Total commercial Pass $ 45,789 $ 109,079 $ 85,887 $ 65,477 $ 26,755 $ 83,048 $ 416,035 Special Mention — 691 2,558 518 38 1,448 5,253 Substandard — 116 191 211 260 2,572 3,350 Doubtful — — — — — — — Loss — — — — — — — $ 45,789 $ 109,886 $ 88,636 $ 66,206 $ 27,053 $ 87,068 $ 424,638 Current period gross charge-offs $ — $ — $ — $ — $ — $ — $ — December 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 $ 4,230 $ 20,172 $ 14,986 $ 6,675 $ 8,950 $ 20,334 $ 75,347 Non-performing — — — — — 853 853 Subtotal $ 4,230 $ 20,172 $ 14,986 $ 6,675 $ 8,950 $ 21,187 $ 76,200 Current period gross charge-offs $ — $ — $ — $ — $ — $ 97 $ 97 Direct consumer Performing $ 2,383 $ 1,157 $ 1,485 $ 575 $ 225 $ 113 $ 5,938 Non-performing — — — — — — — Subtotal $ 2,383 $ 1,157 $ 1,485 $ 575 $ 225 $ 113 $ 5,938 Current period gross charge-offs $ 2 $ 5 $ 316 $ 118 $ 42 $ 88 $ 571 Branch retail Performing $ — $ — $ 2,160 $ 2,696 $ 1,572 $ 2,242 $ 8,670 Non-performing — — — — — — — Subtotal $ — $ — $ 2,160 $ 2,696 $ 1,572 $ 2,242 $ 8,670 Current period gross charge-offs $ — $ — $ 108 $ 140 $ 57 $ 140 $ 445 Indirect consumer Performing $ 88,688 $ 89,376 $ 66,147 $ 50,883 $ 5,485 $ 5,712 $ 306,291 Non-performing — — 54 — — — 54 Subtotal $ 88,688 $ 89,376 $ 66,201 $ 50,883 $ 5,485 $ 5,712 $ 306,345 Current period gross charge-offs $ 6 $ 235 $ 332 $ 270 $ 39 $ 50 $ 932 Total consumer: Performing $ 95,301 $ 110,705 $ 84,778 $ 60,829 $ 16,232 $ 28,401 $ 396,246 Non-performing — — 54 — — 853 907 $ 95,301 $ 110,705 $ 84,832 $ 60,829 $ 16,232 $ 29,254 $ 397,153 Current period gross charge-offs $ 8 $ 240 $ 756 $ 528 $ 138 $ 375 $ 2,045 |
Aging Analysis of Past Due Loans | The following table provides an aging analysis of past due loans by class as of June 30, 2024: As of June 30, 2024 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 72,183 $ 72,183 $ — Secured by 1-4 family residential 175 18 — 193 70,079 70,272 — Secured by multi-family residential — — — — 97,527 97,527 — Secured by non-farm, non-residential — — 1,253 1,253 217,133 218,386 — Commercial and industrial loans 9 — 50 59 46,190 46,249 — Consumer loans: Direct 31 4 — 35 5,237 5,272 — Branch retail 29 20 — 49 6,830 6,879 — Indirect 123 37 226 386 301,972 302,358 — Total $ 367 $ 79 $ 1,529 $ 1,975 $ 817,151 $ 819,126 $ — As a percentage of total loans 0.04 % 0.01 % 0.19 % 0.24 % 99.76 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2023: As of December 31, 2023 30-59 60-89 90 Total Current Total Recorded (Dollars in Thousands) Loans secured by real estate: Construction, land development $ — $ — $ — $ — $ 88,140 $ 88,140 $ — Secured by 1-4 family residential 820 177 23 1,020 75,180 76,200 — Secured by multi-family residential — — — — 62,397 62,397 — Secured by non-farm, non-residential — — 1,302 1,302 212,284 213,586 — Commercial and industrial loans 89 34 147 270 60,245 60,515 — Consumer loans: Direct 42 — — 42 5,896 5,938 — Branch retail 39 1 — 40 8,630 8,670 — Indirect 316 33 54 403 305,942 306,345 — Total $ 1,306 $ 245 $ 1,526 $ 3,077 $ 818,714 $ 821,791 $ — As a percentage of total loans 0.15 % 0.03 % 0.19 % 0.37 % 99.63 % 100.00 % |
Non-accruing Loans | The tables below present the amortized cost of loans on nonaccrual status and loans past due 90 days or more and still accruing interest as of June 30, 2024 and December 31, 2023. Also presented is the balance of loans on nonaccrual status at June 30, 2024 and December 31, 2023 for which there was no related allowance for credit losses recorded. Loans on Non-Accrual Status June 30, 2024 (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 808 424 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,252 1,253 — Commercial and industrial loans 51 51 — Consumer loans: — Direct — — — Branch retail — — — Indirect 226 — — Total loans $ 2,337 $ 1,728 $ — Loans on Non-Accrual Status December 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 891 462 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,302 1,314 — Commercial and industrial loans 152 77 — Consumer loans: — Direct — — — Branch retail — — — Indirect 55 — — Total loans $ 2,400 $ 1,853 $ — |
Schedule of Amortized Cost Basis of Collateral Dependent Loans | The following tables present the amortized cost basis of collateral dependent loans as of June 30, 2024 and December 31, 2023, which loans are individually evaluated to determine credit losses: June 30, 2024 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 449 — 449 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,660 — 1,660 Commercial and industrial — 3,596 3,596 Direct consumer — — — Total loans individually evaluated $ 2,109 $ 3,596 $ 5,705 December 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 485 — 485 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,333 — 2,333 Commercial and industrial — 112 112 Direct consumer — — — Total loans individually evaluated $ 2,818 $ 112 $ 2,930 |
Other Real Estate Owned and R_2
Other Real Estate Owned and Repossessed Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Real Estate [Abstract] | |
Summary of Foreclosed Property Activity | The following table summarizes foreclosed property activity as of the six months ended June 30, 2024 and 2023 : June 30, 2024 June 30, 2023 (Dollars in Thousands) Beginning balance $ 602 $ 686 Additions (1) — — Sales proceeds — — Gross gains — — Gross losses — — Net gains — — Impairment ( 60 ) ( 69 ) Ending balance $ 542 $ 617 (1) Additions to other real estate owned (“OREO”) may include transfers from loans, transfers from closed branches, and capitalized improvements to existing OREO properties. |
Summary of Repossessed Assets Activity | The following table summarizes repossessed asset activity as of the six months ended June 30, 2024 and 2023 : June 30, 2024 June 30, 2023 (Dollars in Thousands) Beginning balance $ 435 $ 83 Transfers from loans 847 740 Sales proceeds ( 480 ) ( 291 ) Gross gains — — Gross losses ( 657 ) ( 324 ) Net losses ( 657 ) ( 324 ) Impairment — — Ending balance $ 145 $ 208 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 December 31, 2023 (Dollars in Thousands) Goodwill $ 7,435 $ 7,435 Core deposit intangible: Gross carrying amount 2,048 2,048 Accumulated amortization ( 1,951 ) ( 1,877 ) Core deposit intangible, net 97 171 Total $ 7,532 $ 7,606 |
Schedule of Estimated Remaining Amortization Expense | The Company’s estimated remaining amortization expense on intangible assets as of June 30, 2024 was as follows: Amortization Expense (Dollars in Thousands) 2024 $ 48 2025 49 Total $ 97 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Debt Disclosure [Abstract] | |
Summary of Long-Term Borrowings | The table below provides additional information related to the Notes as of and for the six months ended June 30, 2024 and 2023 . June 30, June 30, 2024 2023 (Dollars in Thousands) Balance at period-end $ 10,836 $ 10,763 Average balance during the period $ 10,830 $ 10,757 Maximum month-end balance during the period $ 10,836 $ 10,763 Average rate paid during the period, including amortization of debt issuance costs 4.16 % 4.16 % Weighted average remaining maturity (in years) 7.25 8.25 |
Schedule of Available Unused Lines of Credit | As of June 30, 2024 and December 31, 2023, the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements June 30, 2024 December 31, 2023 Correspondent banks None $ 48.0 million $ 48.0 million FHLB advances (1) Subject to collateral $ 276.1 million $ 279.4 million FRB (2) Subject to collateral $ 158.3 million $ 161.7 million (1) These amounts represent the total remaining credit the Company has from the FHLB, but this credit can only be utilized to the extent that underlying collateral exists. The total lendable collateral value of assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $ 59.8 million and $ 61.7 million as of June 30, 2024 and December 31, 2023, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 45.0 million and $ 40.0 million as of June 30, 2024 and December 31, 2023, respectively, leaving an excess of collateral of $ 14.8 million and $ 21.7 million 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 FRB's discount window, which allows borrowing on pledged collateral that includes eligible investment securities and loans under 90-day terms. The amounts shown in the table represent the Company's unused borrowing capacity as of the applicable date based on collateral pledged to the FRB's discount window. |
Stock Awards (Tables)
Stock Awards (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Option Activity | The following table summarizes the Company’s stock option activity for the periods presented. Six Months Ended June 30, 2024 June 30, 2023 Number of Average Number of Average Options: Outstanding, beginning of period 411,900 $ 9.77 419,650 $ 9.79 Granted — — — — Exercised 83,700 8.14 — — Expired 500 8.00 — — Forfeited — — — — Options outstanding, end of period 327,700 $ 10.19 419,650 $ 9.79 Options exercisable, end of period 327,700 $ 10.19 419,650 $ 9.79 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Leases [Abstract] | |
Components of Lease Expense | The following table provides a summary of the components of lease income and expense, as well as the reporting location in the interim condensed consolidated statements of operations, for the three and six months ended June 30, 2024 and 2023: Location in the Condensed Three Months Ended Six Months Ended Consolidated Statements June 30, June 30, June 30, June 30, (Dollars in Thousands) (Dollars in Thousands) Operating lease income (1) Lease income $ 253 $ 235 $ 510 $ 466 Operating lease expense (2) Net occupancy and equipment $ 157 $ 108 $ 313 $ 216 (1) Operating lease income includes rental income from owned properties (2) Includes short-term lease costs. For the three and six months ended June 30, 2024 and 2023 , short-term lease costs were nominal in amount. Location in Consolidated June 30, December 31, (Dollars in Operating lease right-of-use assets Other assets $ 1,859 $ 2,019 Operating lease liabilities Other liabilities $ 1,904 $ 2,055 Weighted-average remaining lease term (in years) 5.87 6.37 Weighted-average discount rate 4.10 % 4.10 % Six Months Ended June 30, June 30, (Dollars in Thousands) Cash paid for amounts included in the measurement of Operating cash flows from operating leases $ 197 $ 215 |
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 June 30, 2024: Minimum (Dollars in Thousands) 2024 $ 198 2025 295 2026 302 2027 308 2028 269 2029 and thereafter 930 Total future minimum lease payments $ 2,302 Less: Imputed interest 398 Total operating lease liabilities $ 1,904 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 active derivative instruments included on the Company’s consolidated balance sheets on a net basis as of June 30, 2024 and December 31, 2023. As of June 30, 2024 As of December 31, 2023 Estimated Estimated Notional Fair Value Notional Fair Value Amount Gain (Loss) (1) Amount Gain (Loss) (1) (Dollars in Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to fixed rate indirect consumer loans $ 30,000 $ 336 $ 30,000 $ ( 119 ) Total fair value hedges 336 ( 119 ) Total derivatives designated as hedging instruments, net 336 ( 119 ) Derivatives not designated as hedging instruments: Interest rate floors $ 50,000 37 $ — — Total derivatives not designated as hedging instruments, net $ 37 $ — (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 Six Months Ended Consolidated Statements June 30, June 30, June 30, June 30, (Dollars in Thousands) (Dollars in Thousands) Interest income Interest and fees on loans $ 260 $ 157 $ 520 $ 325 Interest expense Interest on deposits 120 120 240 256 Interest expense Interest on borrowings 36 36 72 72 Non-interest expense Other non-interest expense ( 38 ) — ( 62 ) — Net increase (decrease) to income before income taxes $ 378 $ 313 $ 770 $ 653 |
Other Operating Income and Ex_2
Other Operating Income and Expense (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Other Income and Expenses [Abstract] | |
Other Operating Income | Other operating income for the three and six months ended June 30, 2024 and 2023 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in Thousands) Bank-owned life insurance $ 133 $ 115 $ 264 $ 229 ATM fee income 97 110 182 222 Other income 54 57 147 144 Total $ 284 $ 282 $ 593 $ 595 |
Other Operating Expense | Other operating expense for the three and six months ended June 30, 2024 and 2023 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, June 30, June 30, (Dollars in Thousands) Postage, stationery and supplies $ 136 $ 160 $ 314 $ 321 Telephone/data communication 193 182 385 351 Collection and recoveries 34 90 60 181 Directors fees 85 95 181 190 Software amortization 87 103 177 227 Other real estate/foreclosure expense, net 30 15 61 21 Other expense 641 650 1,018 1,224 Total $ 1,206 $ 1,295 $ 2,196 $ 2,515 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Commitment and Contingent Liabilities | A summary of these commitments and contingent liabilities is presented below: June 30, December 31, (Dollars in Thousands) Standby letters of credit $ — $ — Standby performance letters of credit $ 651 $ 669 Commitments to extend credit $ 107,300 $ 141,121 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2024 | |
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 June 30, 2024 and December 31, 2023. Fair Value Measurements as of June 30, 2024 Using Totals At Quoted Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 61,577 $ — $ 61,577 $ — Commercial 13,460 — 13,460 — Obligations of U.S. government-sponsored agencies 11,057 — 11,057 — Obligations of states and political subdivisions 1,544 — 1,544 — Corporate notes 14,974 — 14,974 — U.S. Treasury securities 41,396 41,396 — — Interest rate derivative contracts: Other assets - interest rate swaps 336 — 336 — Other assets - interest rate floors 37 — 37 — Fair Value Measurements as of December 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 44,728 $ — $ 44,728 $ — Commercial 9,040 — 9,040 — Obligations of U.S. government-sponsored agencies 11,280 — 11,280 Obligations of states and political subdivisions 1,558 — 1,558 — Corporate notes 14,957 14,957 — U.S. Treasury securities 54,002 54,002 — — Interest rate derivative contracts: Other liabilities - interest rate swaps 119 — 119 — |
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 June 30, 2024 and December 31, 2023: Fair Value Measurements as of June 30, 2024 Using Totals At Quoted Significant Significant (Dollars in Thousands) Impaired loans $ — $ — $ — $ — OREO and other assets held-for-sale 542 — — 542 Fair Value Measurements as of December 31, 2023 Using Totals At Quoted Significant Significant (Dollars in Thousands) Impaired loans $ 51 $ — $ — $ 51 OREO and other assets held-for-sale 602 — — 602 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | Following the table is a description of the valuation technique and the sensitivity of the technique to changes in the significant unobservable input. Level 3 Significant Unobservable Input Assumptions Fair Value Valuation Technique Unobservable Input Quantitative Range (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ — Multiple data points, Appraisal comparability 9 %- 10 % 9.5 % OREO and other assets held-for-sale $ 542 Discount to appraised Appraisal comparability 9 %- 10 % 9.5 % Level 3 Significant Unobservable Input Assumptions Fair Value Valuation Technique Unobservable Input Quantitative Range (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 51 Multiple data points, Appraisal comparability 9 %- 10 % 9.5 % OREO and other assets held-for-sale $ 602 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 June 30, 2024 and December 31, 2023 were as follows: June 30, 2024 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 58,220 $ 58,220 $ 58,220 $ — $ — Investment securities available-for-sale 144,008 144,008 41,396 102,612 — Investment securities held-to-maturity 868 812 — 812 — Federal funds sold 5,520 5,520 — 5,520 — Federal Home Loan Bank stock 1,494 1,494 — — 1,494 Loans, net of allowance for credit losses 808,899 760,790 — — 760,790 Other assets - interest rate swaps 336 336 — 336 — Other assets - interest rate floors 37 37 — 37 — Liabilities: Deposits 954,455 878,189 — 878,189 — Short-term borrowings 15,000 15,000 — 15,000 — Long-term borrowings 10,836 9,652 — 9,652 — December 31, 2023 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 50,279 $ 50,279 $ 50,279 $ — $ — Investment securities available-for-sale 135,565 135,565 54,002 81,563 — Investment securities held-to-maturity 1,104 1,041 — 1,041 — Federal funds sold 9,475 9,475 — 9,475 — Federal Home Loan Bank stock 1,201 1,201 — — 1,201 Loans, net of allowance for credit losses 811,284 773,800 — — 773,800 Liabilities: Deposits 950,191 882,746 — 882,746 — Short-term borrowings 10,000 10,000 — 10,000 — Long-term borrowings 10,799 9,814 9,814 Other liabilities - interest rate swaps 119 119 119 |
General - Additional Informatio
General - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | |
Number of states | 17 |
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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Earning Per Share Basic And Diluted [Abstract] | ||||
Weighted average shares outstanding | 5,770,960 | 5,868,107 | 5,762,892 | 5,851,973 |
Weighted average director stock equivalent shares | 109,747 | 114,740 | 111,159 | 114,504 |
Basic shares | 5,880,707 | 5,982,847 | 5,874,051 | 5,966,477 |
Dilutive shares | 327,700 | 419,650 | 327,700 | 419,650 |
Diluted shares | 6,208,407 | 6,402,497 | 6,201,751 | 6,386,127 |
Net income | $ 2,127 | $ 2,023 | $ 4,234 | $ 4,095 |
Basic net income per share | $ 0.36 | $ 0.34 | $ 0.72 | $ 0.69 |
Diluted net income per share | $ 0.34 | $ 0.31 | $ 0.68 | $ 0.64 |
Investment Securities - Availab
Investment Securities - Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | $ 152,938 | $ 144,893 |
Available-for-sale, gross unrealized gains | 532 | 738 |
Available-for-sale, gross unrealized losses | (9,462) | (10,066) |
Investment securities available-for-sale, at fair value | 144,008 | 135,565 |
Held-to-maturity, amortized cost | 868 | 1,104 |
Held-to-maturity, gross unrealized losses | (56) | (63) |
Held-to-maturity, estimated fair value | 812 | 1,041 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 64,172 | 47,221 |
Available-for-sale, gross unrealized gains | 441 | 580 |
Available-for-sale, gross unrealized losses | (3,036) | (3,073) |
Investment securities available-for-sale, at fair value | 61,577 | 44,728 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 13,758 | 9,446 |
Available-for-sale, gross unrealized gains | 3 | |
Available-for-sale, gross unrealized losses | (301) | (406) |
Investment securities available-for-sale, at fair value | 13,460 | 9,040 |
Held-to-maturity, amortized cost | 400 | 575 |
Held-to-maturity, gross unrealized losses | (17) | (22) |
Held-to-maturity, estimated fair value | 383 | 553 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 11,644 | 11,849 |
Available-for-sale, gross unrealized gains | 88 | 158 |
Available-for-sale, gross unrealized losses | (675) | (727) |
Investment securities available-for-sale, at fair value | 11,057 | 11,280 |
Held-to-maturity, amortized cost | 422 | 471 |
Held-to-maturity, gross unrealized losses | (34) | (34) |
Held-to-maturity, estimated fair value | 388 | 437 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 1,599 | 1,621 |
Available-for-sale, gross unrealized losses | (55) | (63) |
Investment securities available-for-sale, at fair value | 1,544 | 1,558 |
Held-to-maturity, amortized cost | 46 | 58 |
Held-to-maturity, gross unrealized losses | (5) | (7) |
Held-to-maturity, estimated fair value | 41 | 51 |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 17,753 | 17,757 |
Available-for-sale, gross unrealized losses | (2,779) | (2,800) |
Investment securities available-for-sale, at fair value | 14,974 | 14,957 |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 44,012 | 56,999 |
Available-for-sale, gross unrealized losses | (2,616) | (2,997) |
Investment securities available-for-sale, at fair value | $ 41,396 | $ 54,002 |
Investment Securities - Schedul
Investment Securities - Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Investments, Debt and Equity Securities [Abstract] | ||
Available-for-sale, maturing within one year, amortized cost | $ 14,219 | |
Available-for-sale, maturing after one to five years, amortized cost | 39,035 | |
Available-for-sale, maturing after five to ten years, amortized cost | 53,259 | |
Available-for-sale, maturing after ten years, amortized cost | 46,425 | |
Available-for-sale, amortized cost | 152,938 | $ 144,893 |
Available-for-sale, maturing within one year, estimated fair value | 13,828 | |
Available-for-sale, maturing after one to five years, estimated fair value | 36,357 | |
Available-for-sale, maturing after five to ten years, estimated fair value | 47,617 | |
Available-for-sale, maturing after ten years, estimated fair value | 46,206 | |
Available-for-sale, amortized cost | 144,008 | 135,565 |
Held-to-maturity, maturing after one to five years, amortized cost | 164 | |
Held-to-maturity, maturing after five to ten years, amortized cost | 538 | |
Held-to-maturity, maturing after ten years, amortized cost | 166 | |
Held-to-maturity, amortized cost | 868 | 1,104 |
Held-to-maturity, maturing after one to five years, estimated fair value | 157 | |
Held-to-maturity, maturity after five to ten years, estimated fair value | 503 | |
Held-to-maturity, maturing after ten years, estimated fair value | 152 | |
Held-to-maturity, amortized cost | $ 812 | $ 1,041 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | $ 19,684 | $ 1,465 |
Available-for-sale, less than 12 months, unrealized losses | (83) | (235) |
Available-for-sale, 12 months or more, fair value | 101,297 | 118,105 |
Available-for-sale, 12 months or more, unrealized losses | (9,379) | (9,831) |
Held-to-maturity, 12 months or more, fair value | 812 | 1,041 |
Held-to-maturity, 12 months or more, unrealized losses | (56) | (63) |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 14,061 | 94 |
Available-for-sale, less than 12 months, unrealized losses | (66) | (1) |
Available-for-sale, 12 months or more, fair value | 31,727 | 35,584 |
Available-for-sale, 12 months or more, unrealized losses | (2,970) | (3,072) |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 5,623 | 600 |
Available-for-sale, less than 12 months, unrealized losses | (17) | (5) |
Available-for-sale, 12 months or more, fair value | 7,241 | 8,408 |
Available-for-sale, 12 months or more, unrealized losses | (284) | (401) |
Held-to-maturity, 12 months or more, fair value | 383 | 553 |
Held-to-maturity, 12 months or more, unrealized losses | (17) | (22) |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, 12 months or more, fair value | 4,415 | 4,367 |
Available-for-sale, 12 months or more, unrealized losses | (675) | (727) |
Held-to-maturity, 12 months or more, fair value | 388 | 436 |
Held-to-maturity, 12 months or more, unrealized losses | (34) | (34) |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, 12 months or more, fair value | 1,544 | 1,558 |
Available-for-sale, 12 months or more, unrealized losses | (55) | (63) |
Held-to-maturity, 12 months or more, fair value | 41 | 52 |
Held-to-maturity, 12 months or more, unrealized losses | (5) | (7) |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 771 | |
Available-for-sale, less than 12 months, unrealized losses | (229) | |
Available-for-sale, 12 months or more, fair value | 14,974 | 14,186 |
Available-for-sale, 12 months or more, unrealized losses | (2,779) | (2,571) |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, 12 months or more, fair value | 41,396 | 54,002 |
Available-for-sale, 12 months or more, unrealized losses | $ (2,616) | $ (2,997) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | Jun. 30, 2024 USD ($) DebtSecurities | Dec. 31, 2023 USD ($) 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 | 102 | 108 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | DebtSecurities | 8 | 3 |
Debt Securities, Available-for-sale, Restricted | $ | $ 48,000,000 | $ 41,400,000 |
Allowance for credit losses, held-to-maturity | $ | $ 0 | $ 0 |
Loans And Leases - Schedule of
Loans And Leases - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 | |
Loans | $ 819,126 | $ 821,791 | |||
Allowance for credit losses on loans and leases | 10,227 | 10,507 | $ 11,536 | $ 9,422 | |
Net loans and leases held for investment | 808,899 | 811,284 | |||
Construction, Land Development and Other Land Loans [Member] | |||||
Allowance for credit losses on loans and leases | 535 | 565 | 627 | 517 | |
Secured By Multi family Residential Properties [Member] | |||||
Allowance for credit losses on loans and leases | 758 | 415 | 416 | 646 | |
Secured By Non-farm Non residential Properties [Member] | |||||
Allowance for credit losses on loans and leases | 1,705 | 1,425 | 1,747 | 1,970 | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Loans | 72,183 | 88,140 | |||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 70,272 | 76,200 | |||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | |||||
Loans | 97,527 | 62,397 | |||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |||||
Loans | 218,386 | 213,586 | |||
Commercial and Industrial Loans and Leases [Member] | |||||
Loans | [1] | 46,249 | 60,515 | ||
Consumer Portfolio Segment [Member] | |||||
Loans | 384,781 | 397,153 | |||
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 70,272 | 76,200 | |||
Consumer Portfolio Segment [Member] | Direct [Member] | |||||
Loans | 5,272 | 5,938 | |||
Allowance for credit losses on loans and leases | 52 | 64 | 630 | 866 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||||
Loans | 6,879 | 8,670 | |||
Allowance for credit losses on loans and leases | 138 | 436 | 936 | 518 | |
Consumer Portfolio Segment [Member] | Indirect [Member] | |||||
Loans | 302,358 | 306,345 | |||
Allowance for credit losses on loans and leases | $ 6,100 | $ 6,498 | $ 5,836 | $ 3,154 | |
[1] Includes equipment financing leases, which totaled $ 12.6 million as of both June 30, 2024 and December 31, 2023 . |
Loans And Leases - Schedule o_2
Loans And Leases - Schedule of Loan Portfolio (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loans | $ 819,126 | $ 821,791 |
Equipment Financing Leases [Member] | ||
Loans | $ 12,600 | $ 12,600 |
Loans And Leases - Additional I
Loans And Leases - Additional Information (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |||||
Jun. 30, 2024 | Dec. 31, 2023 | Mar. 31, 2024 | Jun. 30, 2023 | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||
Loans and Leases Receivable, Related Parties, Ending Balance | $ 100,000 | $ 1,400,000 | |||||
Loans and Leases Receivable, Related Parties, Additions | 40,000 | 1,300,000 | |||||
Loans and Leases Receivable, Related Parties, Proceeds | 1,300,000 | 0 | |||||
Decrease to retained earnings | 93,836,000 | 90,593,000 | $ 92,326,000 | $ 85,725,000 | $ 84,757,000 | $ 85,135,000 | |
Minimum commitment required for evaluating idividually | 500,000 | ||||||
Commitment required for evaluating individually at management discretion | 500,000 | ||||||
Loans and leases, allowance for credit losses | 10,227,000 | 10,507,000 | 11,536,000 | 9,422,000 | |||
Retained Earnings [Member] | |||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||
Decrease to retained earnings | 113,615,000 | 109,959,000 | $ 111,777,000 | 106,157,000 | $ 104,427,000 | $ 104,460,000 | |
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 and leases, allowance for credit losses | 2,123,000 | ||||||
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] | |||||||
Loans and leases, allowance for credit losses | $ 500,000 | $ 600,000 | |||||
Real Estate [Member] | |||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||
Percentage of Loan Portfolio | 56% | 53.60% | |||||
Pledged as Collateral [Member] | FHLB Borrowings [Member] | |||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||
Loans pledged as collateral | $ 95,400,000 | $ 98,600,000 | |||||
Pledged as Collateral [Member] | Federal Reserve Bank Advances [Member] | |||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||
Loans pledged as collateral | $ 288,300,000 | $ 294,400,000 |
Loans And Leases - Allowance fo
Loans And Leases - Allowance for Credit Losses on Loans and Leases (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Beginning balance | $ 10,507 | $ 9,422 | |
Charge-offs | (806) | (1,037) | |
Recoveries | 414 | 549 | |
Provision for (recovery of) credit losses/unfunded lending commitments | 112 | 479 | |
Ending balance | 10,227 | 11,536 | |
Loans | 819,126 | $ 821,791 | |
Impact of Adopting CECL [Member] | |||
Ending balance | 2,123 | ||
Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 569 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (112) | 90 | |
Ending balance | 457 | 382 | |
Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 292 | ||
Construction, Land Development and Other Land Loans [Member] | |||
Beginning balance | 565 | 517 | |
Recoveries | 20 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (50) | 204 | |
Ending balance | 535 | 627 | |
Construction, Land Development and Other Land Loans [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (94) | ||
Construction, Land Development and Other Land Loans [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 450 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (100) | 48 | |
Ending balance | 350 | 220 | |
Construction, Land Development and Other Land Loans [Member] | Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 172 | ||
Secured by 1-4 Family Residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Provision for (recovery of) credit losses/unfunded lending commitments | 15 | ||
Secured by Real Estate 1-4 Family Residential Properties [Member] | |||
Beginning balance | 591 | 832 | |
Charge-offs | (2) | (55) | |
Recoveries | 35 | 23 | |
Provision for (recovery of) credit losses/unfunded lending commitments | (78) | 11 | |
Ending balance | 546 | 772 | |
Secured by Real Estate 1-4 Family Residential Properties [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (39) | ||
Secured by Real Estate 1-4 Family Residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 1 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (1) | ||
Ending balance | 54 | ||
Secured by Real Estate 1-4 Family Residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 39 | ||
Secured By Multi family Residential Properties [Member] | |||
Beginning balance | 415 | 646 | |
Provision for (recovery of) credit losses/unfunded lending commitments | 343 | (145) | |
Ending balance | 758 | 416 | |
Secured By Multi family Residential Properties [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (85) | ||
Secured By Multi family Residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 9 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (1) | ||
Ending balance | 8 | 3 | |
Secured By Multi family Residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 3 | ||
Secured By Non-farm Non residential Properties [Member] | |||
Beginning balance | 1,425 | 1,970 | |
Provision for (recovery of) credit losses/unfunded lending commitments | 280 | (76) | |
Ending balance | 1,705 | 1,747 | |
Secured By Non-farm Non residential Properties [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (147) | ||
Secured By Non-farm Non residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 2 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | 4 | 2 | |
Ending balance | 6 | 4 | |
Secured By Non-farm Non residential Properties [Member] | Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 2 | ||
Direct [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 47 | ||
Direct [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Provision for (recovery of) credit losses/unfunded lending commitments | 1 | ||
Branch Retail [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 628 | ||
Indirect Consumer [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 1,833 | ||
Reserve for Unfunded Commitments [Member] | |||
Beginning balance | 600 | ||
Ending balance | 500 | ||
Commercial and Industrial Loans [Member] | |||
Beginning balance | 513 | 919 | |
Charge-offs | (97) | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (23) | (327) | |
Ending balance | 393 | 572 | |
Loans | 46,249 | 60,515 | |
Commercial and Industrial Loans [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | (20) | ||
Commercial and Industrial Loans [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 102 | ||
Provision for (recovery of) credit losses/unfunded lending commitments | (14) | 24 | |
Ending balance | 88 | 24 | |
Consumer Portfolio Segment [Member] | |||
Loans | 384,781 | 397,153 | |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 70,272 | 76,200 | |
Consumer Portfolio Segment [Member] | Direct [Member] | |||
Beginning balance | 64 | 866 | |
Charge-offs | (28) | (415) | |
Recoveries | 178 | 347 | |
Provision for (recovery of) credit losses/unfunded lending commitments | (162) | (215) | |
Ending balance | 52 | 630 | |
Loans | 5,272 | 5,938 | |
Consumer Portfolio Segment [Member] | Direct [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Beginning balance | 5 | ||
Ending balance | 5 | 69 | |
Consumer Portfolio Segment [Member] | Direct [Member] | Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 68 | ||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||
Beginning balance | 436 | 518 | |
Charge-offs | (38) | (266) | |
Recoveries | 93 | 146 | |
Provision for (recovery of) credit losses/unfunded lending commitments | (353) | (90) | |
Ending balance | 138 | 936 | |
Loans | 6,879 | 8,670 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Credit Losses on Unfunded Lending Commitments [Member] | |||
Ending balance | 8 | ||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Credit Losses on Unfunded Lending Commitments [Member] | Impact of Adopting CECL [Member] | |||
Ending balance | 8 | ||
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | |||
Beginning balance | 6,498 | 3,154 | |
Charge-offs | (641) | (301) | |
Recoveries | 88 | 33 | |
Provision for (recovery of) credit losses/unfunded lending commitments | 155 | 1,117 | |
Ending balance | 6,100 | $ 5,836 | |
Loans | $ 302,358 | $ 306,345 |
Loans And Leases - Schedule o_3
Loans And Leases - Schedule of Loan and Lease Losses and Recorded Investment in Loans by Loan Classification and by Impairment Evaluation (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Loans and leases, allowance for credit losses | $ 10,227 | $ 10,507 | $ 11,536 | $ 9,422 |
Loans | 819,126 | 821,791 | ||
Construction, Land Development and Other Land Loans [Member] | ||||
Loans and leases, allowance for credit losses | 535 | 565 | 627 | 517 |
Secured by Real Estate 1-4 Family Residential Properties [Member] | ||||
Loans and leases, allowance for credit losses | 546 | 591 | 772 | 832 |
Secured By Multi family Residential Properties [Member] | ||||
Loans and leases, allowance for credit losses | 758 | 415 | 416 | 646 |
Secured By Non-farm Non residential Properties [Member] | ||||
Loans and leases, allowance for credit losses | 1,705 | 1,425 | 1,747 | 1,970 |
Commercial And Industrial Loans [Member] | ||||
Loans and leases, allowance for credit losses | 393 | 513 | 572 | 919 |
Loans | 46,249 | 60,515 | ||
Consumer Portfolio Segment [Member] | ||||
Loans | 384,781 | 397,153 | ||
Consumer Portfolio Segment [Member] | Direct [Member] | ||||
Loans and leases, allowance for credit losses | 52 | 64 | 630 | 866 |
Loans | 5,272 | 5,938 | ||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||
Loans and leases, allowance for credit losses | 138 | 436 | 936 | 518 |
Loans | 6,879 | 8,670 | ||
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | ||||
Loans and leases, allowance for credit losses | 6,100 | 6,498 | $ 5,836 | $ 3,154 |
Loans | $ 302,358 | $ 306,345 |
Loans And Leases - Loans By Cre
Loans And Leases - Loans By Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 819,126 | $ 821,791 |
As a percentage of total loans | 100% | |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 72,183 | 88,140 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 97,527 | 62,397 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 218,386 | 213,586 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 70,272 | 76,200 |
Commercial and Industrial Loans [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 46,249 | 60,515 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 384,781 | 397,153 |
Consumer Portfolio Segment [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 383,780 | 396,246 |
Consumer Portfolio Segment [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 1,001 | 907 |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 70,272 | 76,200 |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 69,497 | 75,347 |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 775 | 853 |
Consumer Portfolio Segment [Member] | Direct [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 5,272 | 5,938 |
Consumer Portfolio Segment [Member] | Direct [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 5,272 | 5,938 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 6,879 | 8,670 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 6,879 | 8,670 |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 302,358 | $ 306,345 |
Consumer Portfolio Segment [Member] | Indirect [Member] | Performing Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | 302,132 | |
Consumer Portfolio Segment [Member] | Indirect [Member] | Nonperforming Financial Instruments | ||
Financing Receivable Recorded Investment [Line Items] | ||
Loans | $ 226 | |
ALC [Member] | ||
Financing Receivable Recorded Investment [Line Items] | ||
As a percentage of total loans | 100% |
Loans And Leases - Carrying Amo
Loans And Leases - Carrying Amount of Loans And Leases by Credit Quality Indicator and Year of Origination (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 819,126 | $ 821,791 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 6,511 | 45,789 |
2023 | 46,843 | 109,886 |
2022 | 126,687 | 88,636 |
2021 | 91,177 | 66,206 |
2020 | 63,792 | 27,053 |
Prior | 99,335 | 87,068 |
Total | 434,345 | 424,638 |
Current period gross charge-offs, 2022 | 54 | |
Current period gross charge-offs, 2020 | 43 | |
Current period gross charge-offs | 97 | |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 6,511 | 45,789 |
2023 | 43,344 | 109,079 |
2022 | 126,338 | 85,887 |
2021 | 90,529 | 65,477 |
2020 | 63,304 | 26,755 |
Prior | 96,830 | 83,048 |
Total | 426,856 | 416,035 |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 691 | |
2022 | 349 | 2,558 |
2021 | 149 | 518 |
2020 | 339 | 38 |
Prior | 1,448 | |
Total | 837 | 5,253 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,499 | 116 |
2022 | 191 | |
2021 | 499 | 211 |
2020 | 149 | 260 |
Prior | 2,505 | 2,572 |
Total | 6,652 | 3,350 |
Commercial [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 1,747 | 7,913 |
2023 | 9,446 | 37,068 |
2022 | 32,704 | 41,800 |
2021 | 27,742 | 804 |
2020 | 53 | |
Prior | 491 | 555 |
Total | 72,183 | 88,140 |
Commercial [Member] | Construction, Land Development and Other Land Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 1,747 | 7,913 |
2023 | 9,446 | 37,068 |
2022 | 32,704 | 41,800 |
2021 | 27,672 | 804 |
2020 | 53 | |
Prior | 491 | 555 |
Total | 72,113 | 88,140 |
Commercial [Member] | Construction, Land Development and Other Land Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 70 | |
Total | 70 | |
Commercial [Member] | Secured By Multi family Residential Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 89 | 407 |
2023 | 400 | 29,683 |
2022 | 53,354 | 5,950 |
2021 | 17,869 | 5,676 |
2020 | 5,627 | 7,063 |
Prior | 20,188 | 13,618 |
Total | 97,527 | 62,397 |
Commercial [Member] | Secured By Multi family Residential Properties [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 89 | |
2023 | 400 | |
2022 | 53,354 | |
2021 | 17,869 | |
2020 | 5,627 | |
Prior | 20,188 | |
Total | 97,527 | |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 1,471 | 26,521 |
2023 | 27,221 | 36,673 |
2022 | 36,285 | 25,327 |
2021 | 32,594 | 56,900 |
2020 | 56,607 | 18,127 |
Prior | 64,208 | 50,038 |
Total | 218,386 | 213,586 |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 1,471 | 26,521 |
2023 | 27,221 | 36,141 |
2022 | 35,971 | 23,551 |
2021 | 32,100 | 56,404 |
2020 | 56,119 | 18,127 |
Prior | 62,147 | 46,261 |
Total | 215,029 | 207,005 |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 532 | |
2022 | 314 | 1,776 |
2021 | 344 | |
2020 | 339 | |
Prior | 1,448 | |
Total | 653 | 4,100 |
Commercial [Member] | Secured By Non-farm Non residential Properties [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2021 | 494 | 152 |
2020 | 149 | |
Prior | 2,061 | 2,329 |
Total | 2,704 | 2,481 |
Commercial [Member] | Commercial and Industrial Loans [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 10,948 | |
2023 | 6,462 | |
2022 | 15,559 | |
2021 | 2,826 | |
2020 | 1,863 | |
Prior | 22,857 | |
Total | 60,515 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 10,948 | |
2023 | 6,187 | |
2022 | 14,586 | |
2021 | 2,593 | |
2020 | 1,565 | |
Prior | 22,614 | |
Total | 58,493 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 159 | |
2022 | 782 | |
2021 | 174 | |
2020 | 38 | |
Total | 1,153 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 116 | |
2022 | 191 | |
2021 | 59 | |
2020 | 260 | |
Prior | 243 | |
Total | 869 | |
Commercial [Member] | Commercial and Industrial Loans and Leases [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 3,204 | |
2023 | 9,776 | |
2022 | 4,344 | |
2021 | 12,972 | |
2020 | 1,505 | |
Prior | 14,448 | |
Total | 46,249 | |
Current period gross charge-offs, 2022 | 54 | |
Current period gross charge-offs, 2020 | 43 | |
Current period gross charge-offs | 97 | |
Commercial [Member] | Commercial and Industrial Loans and Leases [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 3,204 | |
2023 | 6,277 | |
2022 | 4,309 | |
2021 | 12,888 | |
2020 | 1,505 | |
Prior | 14,004 | |
Total | 42,187 | |
Commercial [Member] | Commercial and Industrial Loans and Leases [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 35 | |
2021 | 79 | |
Total | 114 | |
Commercial [Member] | Commercial and Industrial Loans and Leases [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 3,499 | |
2021 | 5 | |
Prior | 444 | |
Total | 3,948 | |
Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 28,692 | 95,301 |
2023 | 86,065 | 110,705 |
2022 | 100,469 | 84,832 |
2021 | 77,725 | 60,829 |
2020 | 53,780 | 16,232 |
Prior | 38,050 | 29,254 |
Total | 384,781 | 397,153 |
Current period gross charge-offs, 2024 | 8 | |
Current period gross charge-offs, 2023 | 17 | 240 |
Current period gross charge-offs, 2022 | 172 | 756 |
Current period gross charge-offs, 2021 | 259 | 528 |
Current period gross charge-offs, 2020 | 160 | 138 |
Current period gross charge-offs, Prior | 101 | 375 |
Current period gross charge-offs | 709 | 2,045 |
Consumer [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 28,692 | 95,301 |
2023 | 86,031 | 110,705 |
2022 | 100,469 | 84,778 |
2021 | 77,576 | 60,829 |
2020 | 53,737 | 16,232 |
Prior | 37,275 | 28,401 |
Total | 383,780 | 396,246 |
Consumer [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 34 | |
2022 | 54 | |
2021 | 149 | |
2020 | 43 | |
Prior | 775 | 853 |
Total | 1,001 | 907 |
Consumer [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 2,046 | 4,230 |
2023 | 3,819 | 20,172 |
2022 | 18,189 | 14,986 |
2021 | 14,714 | 6,675 |
2020 | 6,126 | 8,950 |
Prior | 25,378 | 21,187 |
Total | 70,272 | 76,200 |
Current period gross charge-offs, Prior | 2 | 97 |
Current period gross charge-offs | 2 | 97 |
Consumer [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 2,046 | 4,230 |
2023 | 3,819 | 20,172 |
2022 | 18,189 | 14,986 |
2021 | 14,714 | 6,675 |
2020 | 6,126 | 8,950 |
Prior | 24,603 | 20,334 |
Total | 69,497 | 75,347 |
Consumer [Member] | Secured by 1-4 Family Residential Properties [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Prior | 775 | 853 |
Total | 775 | 853 |
Consumer [Member] | Direct Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 1,601 | 2,383 |
2023 | 1,618 | 1,157 |
2022 | 667 | 1,485 |
2021 | 850 | 575 |
2020 | 383 | 225 |
Prior | 153 | 113 |
Total | 5,272 | 5,938 |
Current period gross charge-offs, 2024 | 2 | |
Current period gross charge-offs, 2023 | 5 | |
Current period gross charge-offs, 2022 | 316 | |
Current period gross charge-offs, 2021 | 24 | 118 |
Current period gross charge-offs, 2020 | 2 | 42 |
Current period gross charge-offs, Prior | 2 | 88 |
Current period gross charge-offs | 28 | 571 |
Consumer [Member] | Direct Consumer [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 1,601 | 2,383 |
2023 | 1,618 | 1,157 |
2022 | 667 | 1,485 |
2021 | 850 | 575 |
2020 | 383 | 225 |
Prior | 153 | 113 |
Total | 5,272 | 5,938 |
Consumer [Member] | Branch Retail [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 2,160 | |
2021 | 1,585 | 2,696 |
2020 | 2,177 | 1,572 |
Prior | 3,117 | 2,242 |
Total | 6,879 | 8,670 |
Current period gross charge-offs, 2022 | 108 | |
Current period gross charge-offs, 2021 | 6 | 140 |
Current period gross charge-offs, 2020 | 3 | 57 |
Current period gross charge-offs, Prior | 29 | 140 |
Current period gross charge-offs | 38 | 445 |
Consumer [Member] | Branch Retail [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 2,160 | |
2021 | 1,585 | 2,696 |
2020 | 2,177 | 1,572 |
Prior | 3,117 | 2,242 |
Total | 6,879 | 8,670 |
Consumer [Member] | Indirect [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 25,045 | |
2023 | 80,628 | |
2022 | 81,613 | |
2021 | 60,576 | |
2020 | 45,094 | |
Prior | 9,402 | |
Total | 302,358 | 306,345 |
Current period gross charge-offs, 2023 | 17 | |
Current period gross charge-offs, 2022 | 172 | |
Current period gross charge-offs, 2021 | 229 | |
Current period gross charge-offs, 2020 | 155 | |
Current period gross charge-offs, Prior | 68 | |
Current period gross charge-offs | 641 | |
Consumer [Member] | Indirect [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 25,045 | |
2023 | 80,594 | |
2022 | 81,613 | |
2021 | 60,427 | |
2020 | 45,051 | |
Prior | 9,402 | |
Total | 302,132 | |
Consumer [Member] | Indirect [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2023 | 34 | |
2021 | 149 | |
2020 | 43 | |
Total | $ 226 | |
Consumer [Member] | Indirect Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 88,688 | |
2023 | 89,376 | |
2022 | 66,201 | |
2021 | 50,883 | |
2020 | 5,485 | |
Prior | 5,712 | |
Total | 306,345 | |
Current period gross charge-offs, 2024 | 6 | |
Current period gross charge-offs, 2023 | 235 | |
Current period gross charge-offs, 2022 | 332 | |
Current period gross charge-offs, 2021 | 270 | |
Current period gross charge-offs, 2020 | 39 | |
Current period gross charge-offs, Prior | 50 | |
Current period gross charge-offs | 932 | |
Consumer [Member] | Indirect Consumer [Member] | Performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2024 | 88,688 | |
2023 | 89,376 | |
2022 | 66,147 | |
2021 | 50,883 | |
2020 | 5,485 | |
Prior | 5,712 | |
Total | 306,291 | |
Consumer [Member] | Indirect Consumer [Member] | Non-performing [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
2022 | 54 | |
Total | $ 54 |
Loans And Leases- Aging Analysi
Loans And Leases- Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Loans | $ 819,126 | $ 821,791 |
As a percentage of total loans | 100% | |
Loans | $ 1,728 | 1,853 |
As a percentage of total loans, Total Past Due | 0.24% | |
As a percentage of total loans, Current | 99.76% | |
Total Past Due | ||
Loans | $ 1,975 | 3,077 |
Current | ||
Loans | 817,151 | $ 818,714 |
ALC [Member] | ||
As a percentage of total loans | 100% | |
As a percentage of total loans, Total Past Due | 0.37% | |
As a percentage of total loans, Current | 99.63% | |
ALC [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | $ 367 | $ 1,306 |
As a percentage of total loans | 0.04% | 0.15% |
ALC [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | $ 79 | $ 245 |
As a percentage of total loans | 0.01% | 0.03% |
ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | $ 1,529 | $ 1,526 |
As a percentage of total loans | 0.19% | 0.19% |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Loans | $ 72,183 | $ 88,140 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | Current | ||
Loans | 72,183 | 88,140 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 70,272 | 76,200 |
Loans | 424 | 462 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Total Past Due | ||
Loans | 193 | 1,020 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Current | ||
Loans | 70,079 | 75,180 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||
Loans | 97,527 | 62,397 |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | Current | ||
Loans | 97,527 | 62,397 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Loans | 218,386 | 213,586 |
Loans | 1,253 | 1,314 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | Total Past Due | ||
Loans | 1,253 | 1,302 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | Current | ||
Loans | 217,133 | 212,284 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 175 | 820 |
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 18 | 177 |
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 | 23 | |
Real Estate [Member] | ALC [Member] | Secured By Non-farm Non residential Properties [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 1,253 | 1,302 |
Commercial and Industrial Loans [Member] | ||
Loans | 46,249 | 60,515 |
Loans | 51 | 77 |
Commercial and Industrial Loans [Member] | Total Past Due | ||
Loans | 59 | 270 |
Commercial and Industrial Loans [Member] | Current | ||
Loans | 46,190 | 60,245 |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 9 | 89 |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 34 | |
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | 50 | 147 |
Consumer Portfolio Segment [Member] | ||
Loans | 384,781 | 397,153 |
Consumer Portfolio Segment [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Loans | 70,272 | 76,200 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Loans | 5,272 | 5,938 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Total Past Due | ||
Loans | 35 | 42 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Current | ||
Loans | 5,237 | 5,896 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Loans | 6,879 | 8,670 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Total Past Due | ||
Loans | 49 | 40 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Current | ||
Loans | 6,830 | 8,630 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | ||
Loans | 302,358 | 306,345 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | Total Past Due | ||
Loans | 386 | 403 |
Consumer Portfolio Segment [Member] | Indirect Consumer [Member] | Current | ||
Loans | 301,972 | 305,942 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 31 | 42 |
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 4 | |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 29 | 39 |
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 20 | 1 |
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Consumer [Member] | Financial Asset, 30 to 59 Days Past Due | ||
Loans | 123 | 316 |
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Consumer [Member] | Financial Asset, 60 to 89 Days Past Due | ||
Loans | 37 | 33 |
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | ||
Loans | $ 226 | $ 54 |
Loans And Leases - Non-accruing
Loans And Leases - Non-accruing Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Non-accruing loans | $ 2,337 | $ 2,400 |
Nonaccrual loans with no allowance for credit losses | 1,728 | 1,853 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Non-accruing loans | 808 | 891 |
Nonaccrual loans with no allowance for credit losses | 424 | 462 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Non-accruing loans | 1,252 | 1,302 |
Nonaccrual loans with no allowance for credit losses | 1,253 | 1,314 |
Commercial and Industrial Loans [Member] | ||
Non-accruing loans | 51 | 152 |
Nonaccrual loans with no allowance for credit losses | 51 | 77 |
Consumer Portfolio Segment [Member] | Indirect [Member] | ||
Non-accruing loans | $ 226 | $ 55 |
Loans And Leases - Schedule o_4
Loans And Leases - Schedule of Amortized Cost Basis of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2024 | Dec. 31, 2023 | |
Total loans individually evaluated | $ 5,705 | $ 2,930 |
Real Estate [Member] | Secured by Real Estate 1-4 Family Residential Properties [Member] | ||
Total loans individually evaluated | 449 | 485 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Total loans individually evaluated | 1,660 | 2,333 |
Commercial And Industrial Loans [Member] | ||
Total loans individually evaluated | 3,596 | 112 |
Real Estate [Member] | ||
Total loans individually evaluated | 2,109 | 2,818 |
Real Estate [Member] | Real Estate [Member] | Secured by Real Estate 1-4 Family Residential Properties [Member] | ||
Total loans individually evaluated | 449 | 485 |
Real Estate [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Total loans individually evaluated | 1,660 | 2,333 |
Other [Member] | ||
Total loans individually evaluated | 3,596 | 112 |
Other [Member] | Commercial And Industrial Loans [Member] | ||
Total loans individually evaluated | $ 3,596 | $ 112 |
Other Real Estate Owned and R_3
Other Real Estate Owned and Repossessed Assets - Summary of Foreclosed Property Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | ||
Other Real Estate [Abstract] | |||
Beginning balance | $ 602 | $ 686 | |
Additions | [1] | 0 | 0 |
Sales proceeds | 0 | 0 | |
Gross gains | 0 | 0 | |
Gross losses | 0 | 0 | |
Net gains (losses) | 0 | 0 | |
Impairment | (60) | (69) | |
Ending balance | $ 542 | $ 617 | |
[1] Additions to other real estate owned (“OREO”) may include transfers from loans, transfers from closed branches, and capitalized improvements to existing OREO properties. |
Other Real Estate Owned and R_4
Other Real Estate Owned and Repossessed Assets - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Jun. 30, 2023 |
Other Real Estate [Abstract] | ||
Foreclosed real estate owned, fair value less disposal costs | $ 0 | $ 20 |
Mortgage loans in process of foreclosure, amount | $ 18 | $ 0 |
Other Real Estate Owned and R_5
Other Real Estate Owned and Repossessed Assets - Summary of Repossessed Assets Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Sales proceeds | $ 0 | $ 0 |
Gross gains | 0 | 0 |
Gross losses | 0 | 0 |
Net gains (losses) | 0 | 0 |
Impairment | (60) | (69) |
Repossessed Assets [Member] | ||
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Beginning balance | 435 | 83 |
Transfers from loans | 847 | 740 |
Sales proceeds | (480) | (291) |
Gross losses | (657) | (324) |
Net gains (losses) | (657) | (324) |
Ending balance | $ 145 | $ 208 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill And Other Intangible Assets [Line Items] | ||
Goodwill, Ending Balance | $ 7,435,000 | $ 7,435,000 |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 97,000 | 171,000 |
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 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Goodwill | $ 7,435 | $ 7,435 |
Gross carrying amount | 2,048 | 2,048 |
Accumulated amortization | (1,951) | (1,877) |
Core deposit intangible, net | 97 | 171 |
Total | $ 7,532 | $ 7,606 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Remaining Amortization Expense (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | ||
2024 | $ 48 | |
2025 | 49 | |
Core deposit intangible, net | $ 97 | $ 171 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) | 6 Months Ended | |||
Oct. 01, 2021 | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | |
Short Term Debt [Line Items] | ||||
Federal Funds Purchased | $ 0 | $ 0 | ||
Securities Sold under Agreements to Repurchase, Total | 0 | 0 | ||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months, Total | 15,000,000 | 10,000,000 | ||
Long-term Federal Home Loan Bank advances | 0 | 0 | ||
Long-Term Debt | $ 10,836,000 | 10,799,000 | ||
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 | $ 10,836,000 | $ 10,800,000 | $ 10,763,000 | |
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 | 90 days |
Borrowings - Summary of Long-Te
Borrowings - Summary of Long-Term Borrowings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Debt Instrument [Line Items] | ||
Beginning balance | $ 10,799 | |
Ending balance | 10,836 | |
Subordinated Debt [Member] | ||
Debt Instrument [Line Items] | ||
Beginning balance | 10,800 | |
Average balance during the period | 10,830 | $ 10,757 |
Ending balance | $ 10,836 | $ 10,763 |
Average rate paid during the period, including amortization of debt issuance costs | 4.16% | 4.16% |
Weighted average remaining maturity (in years) | 7 years 3 months | 8 years 3 months |
Borrowings - Schedule of Availa
Borrowings - Schedule of Available Unused Lines of Credit (Details) - Unused lines of Credit [Member] - USD ($) $ in Millions | 6 Months Ended | ||
Jun. 30, 2024 | Dec. 31, 2023 | ||
Correspondent Banks [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | None | ||
Available lines of credit | $ 48 | $ 48 | |
FHLB Advances [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | [1] | Subject to collateral | |
Available lines of credit | [1] | $ 276.1 | 279.4 |
FRB [Member] | |||
Short Term Debt [Line Items] | |||
Collateral Requirements | [2] | Subject to collateral | |
Available lines of credit | [2] | $ 158.3 | $ 161.7 |
[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 $ 59.8 million and $ 61.7 million as of June 30, 2024 and December 31, 2023, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $ 45.0 million and $ 40.0 million as of June 30, 2024 and December 31, 2023, respectively, leaving an excess of collateral of $ 14.8 million and $ 21.7 million 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 FRB's discount window, which allows borrowing on pledged collateral that includes eligible investment securities and loans under 90-day terms. The amounts shown in the table represent the Company's unused borrowing capacity as of the applicable date based on collateral pledged to the FRB's discount window. |
Borrowings - Schedule of Avai_2
Borrowings - Schedule of Available Unused Lines of Credit (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Short-Term Debt [Line Items] | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | $ 59.8 | $ 61.7 |
Collateral exposure with FHLB in form of advances | 45 | 40 |
Collateral pledged in excess available to utilize additional credit | $ 14.8 | $ 21.7 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | |
Income Tax Disclosure [Line Items] | |||||
Provision for income taxes | $ 612 | $ 648 | $ 1,263 | $ 1,300 | |
Effective Income Tax Rate Reconciliation, Percent | 23% | 24.10% | |||
Deferred Tax Assets, Net | $ 4,800 | $ 4,800 | $ 5,300 |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2024 | Dec. 31, 2023 |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 105,433 | 113,042 |
Other Liabilities [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Liability, Current and Noncurrent, Total | $ 2.8 | $ 2.9 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
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 | $ 0.2 | $ 0 |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based payment arrangement, expense | $ 0.3 | $ 0.3 |
Share-based compensation arrangement by share-based payment award, options, vested and expected to vest, outstanding, weighted average remaining contractual term | 10 years | |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | Minimum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 1 year | |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | Maximum [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, award vesting period | 3 years | |
Restricted Stock [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, equity instruments other than options, grants in period | 55,300 | 57,300 |
Stock Awards - Stock Option Act
Stock Awards - Stock Option Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2024 | Jun. 30, 2023 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 411,900 | 419,650 |
Granted (in shares) | 0 | 0 |
Exercised (in shares) | 83,700 | 0 |
Expired (in shares) | 500 | 0 |
Forfeited (in shares) | 0 | 0 |
Options outstanding, end of period (in shares) | 327,700 | 419,650 |
Options exercisable, end of period (in shares) | 327,700 | 419,650 |
Outstanding, beginning of period, average exercise price (in dollars per share) | $ 9.77 | $ 9.79 |
Granted, average exercise price (in dollars per share) | 0 | 0 |
Exercised, average exercise price (in dollars per share) | 8.14 | 0 |
Expired, average exercise price (in dollars per share) | 8 | 0 |
Forfeited, average exercise price (in dollars per share) | 0 | 0 |
Options outstanding, end of period, average exercise price (in dollars per share) | 10.19 | 9.79 |
Options exercisable, end of period, average exercise price (in dollars per share) | $ 10.19 | $ 9.79 |
Leases - Additional Information
Leases - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2024 | |
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 | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Remaining Term of Contract | 9 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | Dec. 31, 2023 | ||
Leases [Abstract] | ||||||
Operating lease income | [1] | $ 253 | $ 235 | $ 510 | $ 466 | |
Operating Lease, Lease Income, Statement of Income or Comprehensive Income [Extensible Enumeration] | Lease Income | Lease Income | ||||
Operating lease expense | [2] | $ 157 | $ 108 | 313 | 216 | |
Operating lease right-of-use assets | $ 1,859 | $ 1,859 | $ 2,019 | |||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible Enumeration] | Other Assets | Other Assets | Other Assets | |||
Operating lease liabilities | $ 1,904 | $ 1,904 | $ 2,055 | |||
Operating Lease, Liability, Statement of Financial Position [Extensible Enumeration] | Other Liabilities | Other Liabilities | Other Liabilities | |||
Weighted-average remaining lease term (in years) | 5 years 10 months 13 days | 5 years 10 months 13 days | 6 years 4 months 13 days | |||
Weighted-average discount rate | 4.10% | 4.10% | 4.10% | |||
Operating cash flows from operating leases | $ 197 | $ 215 | ||||
[1] Operating lease income includes rental income from owned properties Includes short-term lease costs. For the three and six months ended June 30, 2024 and 2023 , short-term lease costs were nominal in amount. |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Leases [Abstract] | ||
2024 | $ 198 | |
2025 | 295 | |
2026 | 302 | |
2027 | 308 | |
2028 | 269 | |
2029 and thereafter | 930 | |
Total future minimum lease payments | 2,302 | |
Less: Imputed interest | 398 | |
Total operating lease liabilities | $ 1,904 | $ 2,055 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Mar. 31, 2024 USD ($) Contract | Jun. 30, 2023 USD ($) Contract | May 31, 2023 USD ($) Contract | Feb. 28, 2023 USD ($) Contract | May 31, 2022 USD ($) | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) | |
Forward Interest Rate Swap Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 30,000 | ||||||
Forward Interest Rate Swap Contracts One [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, maturity dates | Dec. 01, 2025 | ||||||
Forward Interest Rate Swap Contracts Two [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, maturity dates | Dec. 01, 2026 | ||||||
Forward Interest Rate Swap Contracts Three [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative, maturity dates | Jun. 01, 2027 | ||||||
Derivatives Designated as Hedging Instruments [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 40,000 | ||||||
Number of interest rate swap contracts terminated | Contract | 4 | ||||||
Number of interest rate floor contracts | Contract | 1 | ||||||
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 10,000 | $ 10,000 | |||||
Net unrealized gain | 1,100 | $ 300 | |||||
Remaining unrealized gains associated with terminated derivatives | $ 400 | $ 700 | |||||
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Net unrealized gain | $ 1,000 | ||||||
Remaining unrealized gains associated with terminated derivatives | 100 | 400 | |||||
Number of interest rate swap contracts terminated | Contract | 2 | ||||||
Not Designated as Hedging Instrument [Member] | |||||||
Derivative [Line Items] | |||||||
Number of interest rate floor contracts | Contract | 2 | ||||||
Not Designated as Hedging Instrument [Member] | Interest Rate Floor Contracts One [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 25,000 | ||||||
Derivative, maturity dates | Mar. 27, 2025 | ||||||
Not Designated as Hedging Instrument [Member] | Interest Rate Floor Contracts Two [Member] | |||||||
Derivative [Line Items] | |||||||
Notional amount | $ 50,000 | ||||||
Derivative, maturity dates | Mar. 27, 2026 | ||||||
Not Designated as Hedging Instrument [Member] | Maximum [Member] | Interest Rate Floor Contracts One [Member] | SOFR [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative instrument, interest rate, increase (decrease) | 4% | ||||||
Not Designated as Hedging Instrument [Member] | Maximum [Member] | Interest Rate Floor Contracts Two [Member] | SOFR [Member] | |||||||
Derivative [Line Items] | |||||||
Derivative instrument, interest rate, increase (decrease) | 3% | ||||||
Active Hedges [Member] | Forward Interest Rate Swap Contracts [Member] | |||||||
Derivative [Line Items] | |||||||
Number of interest rate swap contracts | Contract | 3 | ||||||
Notional amount | $ 10,000 | ||||||
Hedge Terminated In 2022 [Member] | Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | |||||||
Derivative [Line Items] | |||||||
Remaining unrealized gains associated with terminated derivatives | $ 12 | $ 84 |
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) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Jun. 30, 2024 | Dec. 31, 2023 | May 31, 2023 | Feb. 28, 2023 | ||
Derivatives Designated as Hedging Instruments [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount | $ 40,000 | ||||
Estimated Fair Value Gain (Loss) | [1] | $ 336 | $ (119) | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Estimated Fair Value Gain (Loss) | [1] | 336 | (119) | ||
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | Interest Rate Swaps Related to Fixed Rate Commercial Real Estate Loans [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount | 30,000 | ||||
Derivatives Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | Interest Rate Swaps Related To Fixed Rate Indirect Consumer Loans [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount | 30,000 | ||||
Estimated Fair Value Gain (Loss) | [1] | 336 | $ (119) | ||
Derivatives Designated as Hedging Instruments [Member] | Cash Flow Hedging [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount | $ 10,000 | $ 10,000 | |||
Derivatives Not Designated as Hedging Instruments [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Estimated Fair Value Gain (Loss) | [1] | 37 | |||
Derivatives Not Designated as Hedging Instruments [Member] | Interest Rate Floors [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Estimated Fair Value Gain (Loss) | [1] | 37 | |||
Derivatives Not Designated as Hedging Instruments [Member] | Fair Value Hedging [Member] | Interest Rate Floors [Member] | |||||
Derivatives Fair Value [Line Items] | |||||
Notional Amount | $ 50,000 | ||||
[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 | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Interest and Fees on Loans [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | $ 260 | $ 157 | $ 520 | $ 325 |
Interest on Deposits [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | 120 | 120 | 240 | 256 |
Interest on Borrowings [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | 36 | 36 | 72 | 72 |
Other Non-Interest Expense [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | (38) | (62) | ||
Net Increase (Decrease) to Income Before Income Taxes [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | $ 378 | $ 313 | $ 770 | $ 653 |
Other Operating Income and Ex_3
Other Operating Income and Expense - Other Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Other Income and Expenses [Abstract] | ||||
Bank-owned life insurance | $ 133 | $ 115 | $ 264 | $ 229 |
ATM fee income | 97 | 110 | 182 | 222 |
Other income | 54 | 57 | 147 | 144 |
Total | $ 284 | $ 282 | $ 593 | $ 595 |
Other Operating Income and Ex_4
Other Operating Income and Expense - Other Operating Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2024 | Jun. 30, 2023 | Jun. 30, 2024 | Jun. 30, 2023 | |
Postage, stationery and supplies | $ 136 | $ 160 | $ 314 | $ 321 |
Telephone/data communication | 193 | 182 | 385 | 351 |
Collection and recoveries | 34 | 90 | 60 | 181 |
Directors fees | 85 | 95 | 181 | 190 |
Amortization of intangible assets | 74 | 110 | ||
Other real estate/foreclosure expense, net | 30 | 15 | 61 | 21 |
Other expense | 641 | 650 | 1,018 | 1,224 |
Total | 1,206 | 1,295 | 2,196 | 2,515 |
Software [Member] | ||||
Amortization of intangible assets | $ 87 | $ 103 | $ 177 | $ 227 |
Guarantees, Commitments and C_3
Guarantees, Commitments and Contingencies - Summary of Commitment and Contingent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
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 | 651 | 669 |
Commitments to Extend Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 107,300 | $ 141,121 |
Guarantees, Commitments and C_4
Guarantees, Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 | Jun. 30, 2023 | Dec. 31, 2022 |
Loss Contingencies [Line Items] | ||||
Loans and leases, allowance for credit losses | $ 10,227 | $ 10,507 | $ 11,536 | $ 9,422 |
Self Insurance Reserve | 200 | 200 | ||
Reserve for Unfunded Commitments [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loans and leases, allowance for credit losses | $ 500 | $ 600 | ||
ASC 326 [Member] | ||||
Loss Contingencies [Line Items] | ||||
Loans and leases, allowance for credit losses | $ 2,123 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
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 | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 144,008 | $ 135,565 |
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 | 61,577 | 44,728 |
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 | 61,577 | 44,728 |
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 | 61,577 | 44,728 |
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 | 13,460 | 9,040 |
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 | 13,460 | 9,040 |
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 | 13,460 | 9,040 |
US Government Agencies Debt Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 11,057 | 11,280 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 11,057 | 11,280 |
US Government Agencies Debt Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 11,057 | 11,280 |
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 | 1,544 | 1,558 |
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 | 1,544 | 1,558 |
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 | 1,544 | 1,558 |
Corporate Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 14,974 | 14,957 |
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 | 14,974 | 14,957 |
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 | 14,974 | 14,957 |
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 | 41,396 | 54,002 |
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 | 41,396 | 54,002 |
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 | 41,396 | 54,002 |
Other Assets interest Rate Swaps [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate derivative contracts, assets at fair value | 336 | |
Other Assets Interest Rate Floors [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate derivative contracts, assets at fair value | 37 | |
Other Assets Interest Rate Floors [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate derivative contracts, assets at fair value | 37 | |
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] | ||
Interest rate derivative contracts, assets at fair value | $ 336 | |
Other Liabilities Interest Rate Swaps [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate derivative contracts, liabilities at fair value | 119 | |
Other Liabilities Interest Rate Swaps [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Interest rate derivative contracts, liabilities at fair value | $ 119 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | $ 51 | |
OREO and other assets held-for-sale | $ 542 | 602 |
Fair Value, Nonrecurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 51 | |
OREO and other assets held-for-sale | 542 | 602 |
Fair Value, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 51 | |
OREO and other assets held-for-sale | $ 542 | $ 602 |
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 | Jun. 30, 2024 USD ($) | Dec. 31, 2023 USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | $ 51 | |
OREO and other assets held-for-sale | $ 542 | $ 602 |
Minimum [Member] | Measurement Input, Comparability Adjustment [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Collateral dependent loans | 9 | 9 |
OREO and other assets held-for-sale | 9 | 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 | 10 |
OREO and other assets held-for-sale | 10 | 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 | 9.5 |
OREO and other assets held-for-sale | 9.5 | 9.5 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Estimated Fair Value and Related Carrying or Notional Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2024 | Dec. 31, 2023 |
Assets: | ||
Investment securities available-for-sale | $ 144,008 | $ 135,565 |
Investment securities held-to-maturity | 812 | 1,041 |
Carrying Amount [Member] | ||
Assets: | ||
Cash and cash equivalents | 58,220 | 50,279 |
Investment securities available-for-sale | 144,008 | 135,565 |
Investment securities held-to-maturity | 868 | 1,104 |
Federal funds sold | 5,520 | 9,475 |
Federal Home Loan Bank stock | 1,494 | 1,201 |
Loans, net of allowance for credit losses | 808,899 | 811,284 |
Liabilities: | ||
Deposits | 954,455 | 950,191 |
Short-term borrowings | 15,000 | 10,000 |
Long-term borrowings | 10,836 | 10,799 |
Other liabilities - interest rate swaps | 119 | |
Carrying Amount [Member] | Other Assets interest Rate Swaps [Member] | ||
Assets: | ||
Interest rate derivative contracts, assets at fair value | 336 | |
Carrying Amount [Member] | Other Assets Interest Rate Floors [Member] | ||
Assets: | ||
Interest rate derivative contracts, assets at fair value | 37 | |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 58,220 | 50,279 |
Investment securities available-for-sale | 144,008 | 135,565 |
Investment securities held-to-maturity | 812 | 1,041 |
Federal funds sold | 5,520 | 9,475 |
Federal Home Loan Bank stock | 1,494 | 1,201 |
Loans, net of allowance for credit losses | 760,790 | 773,800 |
Liabilities: | ||
Deposits | 878,189 | 882,746 |
Short-term borrowings | 15,000 | 10,000 |
Long-term borrowings | 9,652 | 9,814 |
Other liabilities - interest rate swaps | 119 | |
Estimate of Fair Value Measurement [Member] | Other Assets interest Rate Swaps [Member] | ||
Assets: | ||
Interest rate derivative contracts, assets at fair value | 336 | |
Estimate of Fair Value Measurement [Member] | Other Assets Interest Rate Floors [Member] | ||
Assets: | ||
Interest rate derivative contracts, assets at fair value | 37 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 58,220 | 50,279 |
Investment securities available-for-sale | 41,396 | 54,002 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 102,612 | 81,563 |
Investment securities held-to-maturity | 812 | 1,041 |
Federal funds sold | 5,520 | 9,475 |
Liabilities: | ||
Deposits | 878,189 | 882,746 |
Short-term borrowings | 15,000 | 10,000 |
Long-term borrowings | 9,652 | 9,814 |
Other liabilities - interest rate swaps | 119 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets interest Rate Swaps [Member] | ||
Assets: | ||
Interest rate derivative contracts, assets at fair value | 336 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets Interest Rate Floors [Member] | ||
Assets: | ||
Interest rate derivative contracts, assets at fair value | 37 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 0 | |
Federal Home Loan Bank stock | 1,494 | 1,201 |
Loans, net of allowance for credit losses | $ 760,790 | $ 773,800 |