Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 12, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | FIRST US BANCSHARES INC | |
Entity Central Index Key | 0000717806 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,143,286 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Entity File Number | 0-14549 | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 63-0843362 | |
Entity Address, Address Line One | 3291 U.S. Highway 280 | |
Entity Address, City or Town | Birmingham | |
Entity Address, State or Province | AL | |
Entity Address, Postal Zip Code | 35243 | |
City Area Code | 205 | |
Local Phone Number | 582-1200 | |
Title of 12(b) Security | Common Stock, $0.01 par value | |
Trading Symbol | FUSB | |
Security Exchange Name | NASDAQ |
Interim Condensed Consolidated
Interim Condensed Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 13,219 | $ 11,939 |
Interest-bearing deposits in banks | 42,902 | 45,091 |
Total cash and cash equivalents | 56,121 | 57,030 |
Federal funds sold | 15,080 | 10,080 |
Investment securities available-for-sale, at fair value | 96,541 | 94,016 |
Investment securities held-to-maturity, at amortized cost | 13,538 | 14,340 |
Federal Home Loan Bank stock, at cost | 1,135 | 1,137 |
Loans, net of allowance for loan and lease losses of $5,954 and $5,762, respectively | 539,685 | 545,243 |
Premises and equipment, net of accumulated depreciation of $22,900 and $22,570, respectively | 29,071 | 29,216 |
Cash surrender value of bank-owned life insurance | 15,622 | 15,546 |
Accrued interest receivable | 2,391 | 2,488 |
Goodwill and core deposit intangible, net | 8,715 | 8,825 |
Other real estate owned | 1,054 | 1,078 |
Other assets | 9,612 | 9,739 |
Total assets | 788,565 | 788,738 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest-bearing | 116,190 | 112,729 |
Interest-bearing | 566,405 | 570,933 |
Total deposits | 682,595 | 683,662 |
Accrued interest expense | 487 | 537 |
Other liabilities | 10,999 | 9,766 |
Short-term borrowings | 10,152 | 10,025 |
Total liabilities | 704,233 | 703,990 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,592,251 and 7,568,053 shares issued, respectively; 6,143,286 and 6,157,692 shares outstanding, respectively | 75 | 75 |
Surplus | 13,904 | 13,814 |
Accumulated other comprehensive loss, net of tax | (763) | (46) |
Retained earnings | 93,418 | 92,755 |
Less treasury stock: 1,448,965 and 1,410,361 shares at cost, respectively | (22,302) | (21,850) |
Total shareholders’ equity | 84,332 | 84,748 |
Total liabilities and shareholders’ equity | $ 788,565 | $ 788,738 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 5,954 | $ 5,762 |
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) | 7,592,251 | 7,568,053 |
Common stock, shares outstanding (in shares) | 6,143,286 | 6,157,692 |
Treasury stock, shares (in shares) | 1,448,965 | 1,410,361 |
Accumulated depreciation | $ 22,900 | $ 22,570 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income: | ||
Interest and fees on loans | $ 9,639 | $ 9,673 |
Interest on investment securities | 758 | 1,140 |
Total interest income | 10,397 | 10,813 |
Interest expense: | ||
Interest on deposits | 1,475 | 1,640 |
Interest on borrowings | 36 | |
Total interest expense | 1,511 | 1,640 |
Net interest income | 8,886 | 9,173 |
Provision for loan and lease losses | 580 | 400 |
Net interest income after provision for loan and lease losses | 8,306 | 8,773 |
Non-interest income: | ||
Credit insurance income | 153 | 143 |
Net gain on sales and prepayments of investment securities | 13 | |
Lease income | 212 | 209 |
Other income, net | 371 | 337 |
Total non-interest income | 1,297 | 1,265 |
Non-interest expense: | ||
Salaries and employee benefits | 5,136 | 4,988 |
Net occupancy and equipment | 1,001 | 1,089 |
Computer services | 417 | 351 |
Fees for professional services | 278 | 242 |
Other expense | 1,662 | 1,783 |
Total non-interest expense | 8,494 | 8,453 |
Income before income taxes | 1,109 | 1,585 |
Provision for income taxes | 262 | 351 |
Net income | $ 847 | $ 1,234 |
Basic net income per share | $ 0.13 | $ 0.19 |
Diluted net income per share | 0.13 | 0.18 |
Dividends per share | $ 0.03 | $ 0.02 |
Service [Member] | ||
Non-interest income: | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 434 | $ 460 |
Mortgage Banking [Member] | ||
Non-interest income: | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 127 | $ 103 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Net income | $ 847 | $ 1,234 |
Other comprehensive income (loss): | ||
Unrealized holding gains on securities available-for-sale arising during period, net of tax expense of $207 and $284, respectively | 622 | 851 |
Reclassification adjustment for net gains on securities available-for -sale realized in net income, net of tax of $0 and $3, respectively | (10) | |
Unrealized holding losses arising during the period on effective cash flow hedge derivatives, net of tax benefit of $447 and $0, respectively | (1,339) | |
Other comprehensive income (loss) | (717) | 841 |
Total comprehensive income | $ 130 | $ 2,075 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||
Unrealized holding gains (losses) on securities available-for-sale arising during period, tax expense (benefit) | $ 207 | $ 284 |
Reclassification adjustment for net gains on securities available-for-sale realized in net income, tax expense (benefit) | 0 | 3 |
Unrealized holding gains (losses) arising during the period on effective cash flow hedge derivatives, tax expense (benefit) | $ 447 | $ 0 |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Non-controlling Interest [Member] |
Beginning balance, value at Dec. 31, 2018 | $ 79,437 | $ 75 | $ 13,496 | $ (2,377) | $ 88,668 | $ (20,414) | $ (11) |
Balance (in shares) at Dec. 31, 2018 | 6,298,062 | ||||||
Net income | 1,234 | 1,234 | |||||
Net change in fair value of securities available-for-sale, net of tax | 841 | 841 | |||||
Dividends declared | (126) | (126) | |||||
Impact of stock-based compensation plans, net | 93 | 93 | |||||
Impact of stock-based compensation plans, net (in shares) | 5,520 | ||||||
Discontinuation of partnership consolidation | 94 | 83 | $ 11 | ||||
Ending balance, value at Mar. 31, 2019 | 81,573 | $ 75 | 13,589 | (1,536) | 89,859 | (20,414) | |
Balance (in shares) at Mar. 31, 2019 | 6,303,582 | ||||||
Beginning balance, value at Dec. 31, 2019 | 84,748 | $ 75 | 13,814 | (46) | 92,755 | (21,850) | |
Balance (in shares) at Dec. 31, 2019 | 6,157,692 | ||||||
Net income | 847 | 847 | |||||
Net change in fair value of securities available-for-sale, net of tax | 622 | 622 | |||||
Net change in fair value of derivative instruments, net of tax | (1,339) | (1,339) | |||||
Dividends declared | (184) | (184) | |||||
Impact of stock-based compensation plans, net | 90 | 90 | |||||
Impact of stock-based compensation plans, net (in shares) | 24,198 | ||||||
Treasury stock repurchases | (452) | (452) | |||||
Treasury stock repurchases (in shares) | (38,604) | ||||||
Ending balance, value at Mar. 31, 2020 | $ 84,332 | $ 75 | $ 13,904 | $ (763) | $ 93,418 | $ (22,302) | |
Balance (in shares) at Mar. 31, 2020 | 6,143,286 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement Of Stockholders Equity [Abstract] | ||
Dividends per share | $ 0.03 | $ 0.02 |
Interim Condensed Consolidate_8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 847 | $ 1,234 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 399 | 400 |
Provision for loan and lease losses | 580 | 400 |
Deferred income tax provision | 266 | 344 |
Net gain on sale and prepayment of investment securities | (13) | |
Stock-based compensation expense | 90 | 93 |
Net amortization of securities | 96 | 153 |
Amortization of intangible assets | 110 | 128 |
Net loss on premises and equipment and other real estate | 171 | 114 |
Changes in assets and liabilities: | ||
Decrease in accrued interest receivable | 97 | 330 |
Increase in other assets | (299) | (4,252) |
Increase (decrease) in accrued interest expense | (50) | 69 |
Increase (decrease) in other liabilities | (1,308) | 3,081 |
Net cash provided by operating activities | 999 | 2,081 |
Cash flows from investing activities: | ||
Net increase in federal funds sold | (5,000) | (6,726) |
Purchases of investment securities, available-for-sale | (9,142) | (2,560) |
Proceeds from maturities and prepayments of investment securities, available-for-sale | 7,365 | 8,864 |
Proceeds from maturities and prepayments of investment securities, held-to-maturity | 787 | 602 |
Net (increase) decrease in Federal Home Loan Bank stock | 2 | (10) |
Proceeds from the sale of premises and equipment and other real estate | 190 | 464 |
Net decrease in loans | 5,699 | 11,440 |
Purchases of premises and equipment | (233) | (1,691) |
Net cash (used in) provided by investing activities | (332) | 10,383 |
Cash flows from financing activities: | ||
Net decrease in deposits | (1,067) | (1,364) |
Net increase (decrease) in short-term borrowings | 127 | (527) |
Treasury stock repurchases | (452) | |
Dividends paid | (184) | (126) |
Net cash used in financing activities | (1,576) | (2,017) |
Net (decrease) increase in cash and cash equivalents | (909) | 10,447 |
Cash and cash equivalents, beginning of period | 57,030 | 49,599 |
Cash and cash equivalents, end of period | 56,121 | 60,046 |
Supplemental disclosures: | ||
Interest | 1,561 | 1,571 |
Income taxes | 147 | 151 |
Non-cash transactions: | ||
Assets acquired in settlement of loans | $ 335 | $ 267 |
General
General | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | 1. GENERAL The accompanying unaudited interim condensed consolidated financial statements include the accounts of First US Bancshares, Inc. (“Bancshares”) and its subsidiaries (collectively, the “Company”). Bancshares is the parent holding company of First US Bank (the “Bank”). The Bank operates a finance company subsidiary, Acceptance Loan Company, Inc. (“ALC”). Management has determined that the Bank and ALC comprise Bancshares’ two reportable operating segments. All significant intercompany transactions and accounts have been eliminated. 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, 2020. While certain information and footnote 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, 2019. Risks and Uncertainties During the first quarter of 2020, an outbreak of a novel strain of coronavirus (COVID-19), which was originally identified in Wuhan, China, spread to a number of countries around the world, including the United States. In March 2020, the World Health Organization declared COVID-19 a global pandemic, and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely restricted the level of economic activity in the Company’s markets. In response to the pandemic, the governments of the states in which both the Bank and ALC have retail offices and lending operations have taken preventive or protective actions, including imposing restrictions on business operations and travel, advising or requiring individuals to limit or forego time outside of their homes, and ordering temporary closures of businesses that have been determined to be non-essential. The COVID-19 pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity and other economic activities have had, are currently having, and may for some time continue to have a destabilizing effect on financial markets and economic activity. The extent of the impact of COVID-19 on the Company’s operational and financial performance is currently uncertain, cannot be predicted and will depend on certain developments, including, among others, the duration and spread of COVID-19, its impact on our customers, employees and vendors, and the continued governmental, regulatory and private sector responses, which may be precautionary, to the coronavirus. The Company’s business, financial condition and results of operations generally rely upon the ability of the Company’s borrowers to repay their loans, the value of collateral underlying those loans, and demand for loans and other products and services that the Company offers, which are highly dependent on the business environment in the Company’s primary markets and the United States economy as a whole. In light of the changing economic outlook as a result of COVID-19, as well as other factors, in March 2020, the 10-year Treasury yield was reduced to historic lows, and the equity markets were significantly impacted. In response, the Federal Reserve reduced the target federal funds rate by 50 basis points on March 3, 2020, and then by an additional 100 basis points on March 15, 2020. These reductions in interest rates and other economic uncertainties that have arisen as a result primarily of the COVID-19 pandemic are likely to negatively impact net interest income, provisions for loan losses and noninterest income. Additional negative financial impacts could occur; however, the ultimate potential impact is not known at this time. |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | 2. BASIS OF PRESENTATION Summary of Significant Accounting Policies Certain significant accounting policies followed by the Company are set forth in Note 2, “Summary of Significant Accounting Policies,” of the Notes to Consolidated Financial Statements in the Company’s Annual Report on Form 10-K as of and for the year ended December 31, 2019. Reclassification Certain disclosures in the notes to the prior period consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding (basic shares). Included in basic shares are certain shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors, as well as shares of restricted stock that have been granted pursuant to Bancshares’ 2013 Incentive Plan (as amended, the “2013 Incentive Plan”) previously approved by Bancshares’ shareholders. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period (dilutive shares). The dilutive shares consist of nonqualified stock option grants issued to employees and members of Bancshares’ Board of Directors pursuant to the 2013 Incentive Plan. The following table reflects weighted average shares used to calculate basic and diluted net income per share for the periods presented. Three Months Ended March 31, 2020 2019 Basic shares 6,280,593 6,418,242 Dilutive shares 422,000 444,101 Diluted shares 6,702,593 6,862,343 Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Net income $ 847 $ 1,234 Basic net income per share $ 0.13 $ 0.19 Diluted net income per share $ 0.13 $ 0.18 Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities, settlement of derivative contracts or changes in the fair value of cash flow derivatives. Accounting Policies Recently Adopted Accounting Standards Update (“ASU”) 2018-15 350-40 Issued in August 2018, ASU 2018-15 aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments of ASU 2018-15 require an entity to follow the guidance in FASB Accounting Standards Codification (“ASC”) Subtopic 350-40, “ ,” in order to determine which implementation costs to capitalize as assets related to the service contract and which costs to expense. The amendments of ASU 2018-15 also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement (i.e., the noncancelable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the entity is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the entity is reasonably certain not to exercise the option and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor). ASU 2018-15 also requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, and to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. ASU 2018-15 became effective for the Company on January 1, 2020. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-13 820 Issued in August 2018, the amendments in this ASU remove disclosure requirements in ASC Topic 820 related to (1) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels and (3) the valuation processes for Level 3 fair value measurements. The ASU also modifies disclosure requirements such that (1) for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date that restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly, and (2) it is clear that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additionally, this ASU adds disclosure requirements for public entities about (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 became effective for the Company on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. Pending Accounting Pronouncements ASU 2020-04, Issued in March 2020, ASU 2020-04 seeks to provide guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. ASU 2020-04 was issued in response to concerns about the structural risks of interbank offered rates, and specifically, the risk that the London Interbank Offer Rate (LIBOR) will no longer be used. Regulators have begun reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 provides temporary optional expedients to GAAP guidance on contract modifications, hedge accounting, and other transactions that reference LIBOR or another reference rate expected to be discontinued. As the guidance in ASU 2020-04 is intended to assist entities during the global market-wide reference rate transition period, it is in effect for a limited time, from March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the potential discontinuance of LIBOR, and a determination cannot be made at this time as to the impact that the amendments of ASU 2020-04 or the reference rate reform will have on the Company’s consolidated financial statements. ASU 2019-12, Issued in December 2019, ASU 2019-12 seeks to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company intends to adopt the amendments in ASU 2019-12 on January 1, 2021. Adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2017-04, 350 Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. As originally issued, ASU 2017-04 was effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2017-04 by three years for smaller reporting companies, including the Company. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements ASU 2016 13, .” Issued in June 2016, ASU 2016-13 removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance removes all current recognition thresholds and requires companies to recognize an allowance for lifetime expected credit losses. Credit losses will be immediately recognized through net income; the amount recognized will be based on the current estimate of contractual cash flows not expected to be collected over the financial asset’s contractual term. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities. The standard will add new disclosures related to factors that influenced management’s estimate, including current expected credit losses, the changes in those factors and reasons for the changes, as well as the method applied to revert to historical credit loss experience. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2019, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by three years for smaller reporting companies, including the Company. Management has been in the process of developing a revised model to calculate the allowance for loan and lease losses upon implementation of ASU 2016-13 in order to determine the impact on the Company’s consolidated financial statements and, at this time, expects to recognize a one-time cumulative effect adjustment to the allowance for loan and lease losses as of the beginning of the first reporting period in which the new standard is effective. The magnitude of any such one-time adjustment is not yet known. |
Investment Securities
Investment Securities | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 3 . INVESTMENT SECURITIES Details of investment securities available-for-sale and held-to-maturity as of March 31, 2020 and December 31, 2019 were as follows: Available-for-Sale March 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 42,525 $ 589 $ (12 ) $ 43,102 Commercial 48,624 379 (263 ) 48,740 Obligations of states and political subdivisions 3,872 80 — 3,952 Corporate notes 666 — — 666 U.S. Treasury securities 81 — — 81 Total $ 95,768 $ 1,048 $ (275 ) $ 96,541 Held-to-Maturity March 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 8,158 $ 89 $ — $ 8,247 Obligations of U.S. government-sponsored agencies 4,309 34 — 4,343 Obligations of states and political subdivisions 1,071 — (16 ) 1,055 Total $ 13,538 $ 123 $ (16 ) $ 13,645 Available-for-Sale December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 46,182 $ 372 $ (209 ) $ 46,345 Commercial 43,686 73 (386 ) 43,373 Obligations of states and political subdivisions 4,123 95 — 4,218 U.S. Treasury securities 80 — — 80 Total $ 94,071 $ 540 $ (595 ) $ 94,016 Held-to-Maturity December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 8,923 $ 2 $ (46 ) $ 8,879 Obligations of U.S. government-sponsored agencies 4,324 5 (10 ) 4,319 Obligations of states and political subdivisions 1,093 15 — 1,108 Total $ 14,340 $ 22 $ (56 ) $ 14,306 The scheduled maturities of investment securities available-for-sale and held-to-maturity as of March 31, 2020 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (Dollars in Thousands) Maturing within one year $ 1,601 $ 1,621 $ 40 $ 40 Maturing after one to five years 15,561 15,706 766 750 Maturing after five to ten years 43,163 43,770 6,852 6,891 Maturing after ten years 35,443 35,444 5,880 5,964 Total $ 95,768 $ 96,541 $ 13,538 $ 13,645 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 March 31, 2020 and December 31, 2019. Available-for-Sale March 31, 2020 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Residential $ 576 $ (2 ) $ 4,865 $ (10 ) Commercial 7,066 — 4,701 (263 ) Corporate notes 666 — — — U.S. Treasury securities 80 — — — Total $ 8,388 $ (2 ) $ 9,566 $ (273 ) Held-to-Maturity March 31, 2020 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Obligations of states and political subdivisions 750 (16 ) — — Total $ 750 $ (16 ) $ — $ — Available-for-Sale December 31, 2019 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Residential $ 17,340 $ (66 ) $ 10,094 $ (143 ) Commercial 3,794 (25 ) 29,754 (361 ) U.S. Treasury securities 80 — — — Total $ 21,214 $ (91 ) $ 39,848 $ (504 ) Held-to-Maturity December 31, 2019 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Commercial $ 685 $ — $ 6,405 $ (46 ) Obligations of U.S. government-sponsored agencies 846 (4 ) 2,994 (6 ) Total $ 1,531 $ (4 ) $ 9,399 $ (52 ) Management evaluates securities for other-than-temporary impairment no less frequently than quarterly and more frequently when economic or market concerns warrant such evaluation. Consideration is given to: (i) the length of time and the extent to which fair value has been less than cost; (ii) the financial condition and near-term prospects of the issuer; (iii) whether the Company intends to sell the securities; and (iv) whether it is more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases. As of March 31, 2020, 18 debt securities had been in a loss position for more than 12 months, and 14 debt securities had been in a loss position for less than 12 months. As of December 31, 2019, 69 debt securities had been in a loss position for more than 12 months, and 35 debt securities had been in a loss position for less than 12 months. As of both March 31, 2020 and December 31, 2019, the losses for all securities were considered to be a direct result of the effect that the prevailing interest rate environment had on the value of debt securities and were not related to the creditworthiness of the issuers. There was a substantial decrease in interest rates during the first quarter of 2020, including a 150-basis point reduction in the federal funds rate in March 2020. This resulted in significant increases in the fair value of debt securities and a corresponding decline in the number of securities in a loss position as of March 31, 2020 compared to December 31, 2019. Most of the securities in an unrealized loss position as of both March 31, 2020 and December 31, 2019 were residential or commercial mortgage-backed securities that are either direct obligations of the U.S. government or government-sponsored entities and, accordingly, have little associated credit risk. Further, the Company has the current intent and ability to retain its investments in the issuers for a period of time that management believes to be sufficient to allow for any anticipated recovery in fair value. Therefore, the Company did not recognize any other-than-temporary impairments as of March 31, 2020 or December 31, 2019. Investment securities with a carrying value of $62.2 million and $51.7 million as of March 31, 2020 and December 31, 2019, respectively, were pledged to secure public deposits and for other purposes. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Loan And Lease Losses Writeoffs Net [Abstract] | |
Loans and Allowance for Loan Losses | 4 . LOANS AND ALLOWANCE FOR LOAN LOSSES Portfolio Segments The Company has divided the loan portfolio into eight portfolio segments, each with different risk characteristics described as follows: Construction, land development and other land loans – Commercial construction, land and land development loans include 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 – This portfolio segment includes loans and leases to commercial customers for use in the normal course of business. These credits may be loans, lines of credit and leases to financially strong borrowers, secured by inventories, equipment or receivables, and are generally guaranteed by the principals of the borrowing entity. Direct consumer – This portfolio segment includes a variety of secured and unsecured personal loans, including automobile loans, loans for household and personal purposes and all other direct consumer installment loans. Branch retail – This portfolio segment includes loans secured by collateral purchased by consumers at retail stores with whom ALC has an established relationship through its branch network to provide financing for the retail products sold if applicable underwriting standards are met. The collateral securing these loans generally includes personal property items such as furniture, ATVs and home appliances. Indirect sales – 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 and horse trailers. As of March 31, 2020 and December 31, 2019, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: March 31, 2020 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 31,927 $ — $ 31,927 Secured by 1-4 family residential properties 95,166 5,020 100,186 Secured by multi-family residential properties 44,029 — 44,029 Secured by non-farm, non-residential properties 156,222 — 156,222 Commercial and industrial loans (1) 80,771 — 80,771 Consumer loans: Direct consumer 7,839 28,468 36,307 Branch retail — 31,568 31,568 Indirect sales (2) 69,982 — 69,982 Total loans 485,936 65,056 550,992 Less: Unearned interest, fees and deferred cost 257 5,096 5,353 Allowance for loan losses 4,068 1,886 5,954 Net loans $ 481,611 $ 58,074 $ 539,685 December 31, 2019 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 30,820 $ — $ 30,820 Secured by 1-4 family residential properties 98,971 5,566 104,537 Secured by multi-family residential properties 50,910 — 50,910 Secured by non-farm, non-residential properties 162,981 — 162,981 Commercial and industrial loans (1) 90,957 — 90,957 Consumer loans: Direct consumer 7,816 30,224 38,040 Branch retail — 32,305 32,305 Indirect sales (2) — 45,503 45,503 Total loans 442,455 113,598 556,053 Less: Unearned interest, fees and deferred cost 262 4,786 5,048 Allowance for loan losses 3,483 2,279 5,762 Net loans $ 438,710 $ 106,533 $ 545,243 (1) Includes equipment financing leases. (2) Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect sales portfolio from ALC to the Bank. The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 60.3% and 62.8% of the portfolio was concentrated in loans secured by real estate as of March 31, 2020 and December 31, 2019, respectively. Loans with a carrying value of $32.9 million and $34.6 million were pledged as collateral to secure Federal Home Loan Bank (“FHLB”) borrowings as of March 31, 2020 and December 31, 2019, 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 $0.9 million as of both March 31, 2020 and December 31, 2019. During the three months ended March 31, 2020, there were no new loans to these parties, and repayments by active related parties were $6 thousand. During the year ended December 31, 2019, there were $0.1 million of new loans to these parties, and repayments by active related parties were $22 thousand. Acquired Loans The Company acquired loans through the TPB acquisition completed on August 31, 2018. At acquisition, certain acquired loans evidenced deterioration of credit quality since origination and it was probable that all contractually-required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit impaired (“PCI”) loans are accounted for under ASC Topic 310-30, Accounting for Purchased Loans with Deteriorated Credit Quality The carrying amount of PCI loans, which is included within loans on the balance sheet, is set forth in the table below as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in Thousands) Real estate loans: Secured by 1-4 family residential properties $ 219 $ 224 Outstanding balance 219 224 Fair value adjustment (48 ) (49 ) Carrying amount, net of fair value adjustment $ 171 $ 175 During both the three months ended March 31, 2020 and the year ended December 31, 2019, the Company did not recognize any accretable yield, or income expected to be collected, associated with these loans. Additionally, the Company did not increase or reverse the allowance for loan losses related to the remaining PCI loans. Allowance for Loan Losses The following tables present changes in the allowance for loan losses during the three months ended March 31, 2020 and 2019 and the related loan balances by loan type as of March 31, 2020 and 2019: As of and for the Three Months Ended March 31, 2020 Construction, Land Development, and Other 1-4 Family Real Estate Multi- Family Non- Farm Non- Residential Commercial and Industrial Direct Consumer Branch Retail Indirect Sales Total (Dollars in Thousands) Allowance for loan losses: Beginning balance $ 197 $ 466 $ 422 $ 964 $ 1,377 $ 1,625 $ 395 $ 316 $ 5,762 Charge-offs — (20 ) — — — (492 ) (142 ) — (654 ) Recoveries — 12 — 5 — 205 44 — 266 Provision 68 67 16 217 (612 ) 169 142 513 580 Ending balance $ 265 $ 525 $ 438 $ 1,186 $ 765 $ 1,507 $ 439 $ 829 $ 5,954 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 14 $ — $ — $ 63 $ 3 $ — $ — $ 80 Collectively evaluated for impairment 265 511 438 1,186 702 1,504 439 829 5,874 Total allowance for loan losses $ 265 $ 525 $ 438 $ 1,186 $ 765 $ 1,507 $ 439 $ 829 $ 5,954 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 789 $ — $ 2,754 $ 63 $ 26 $ — $ — $ 3,632 Collectively evaluated for impairment 31,927 99,226 44,029 153,468 80,708 36,281 31,568 69,982 547,189 Loans acquired with deteriorated credit quality — 171 — — — — — — 171 Total loans receivable $ 31,927 $ 100,186 $ 44,029 $ 156,222 $ 80,771 $ 36,307 $ 31,568 $ 69,982 $ 550,992 As of and for the Three Months Ended March 31, 2019 Construction, Land Development, and Other 1-4 Family Real Estate Multi- Family Non- Farm Non- Residential Commercial and Industrial Direct Consumer Branch Retail Indirect Sales Total (Dollars in Thousands) Allowance for loan losses: Beginning balance $ 241 $ 346 $ 128 $ 831 $ 1,138 $ 1,799 $ 427 $ 145 $ 5,055 Charge-offs — (53 ) — — — (536 ) (98 ) (52 ) (739 ) Recoveries — 9 — — 1 173 25 — 208 Provision (59 ) 79 32 (58 ) 44 232 55 75 400 Ending balance $ 182 $ 381 $ 160 $ 773 $ 1,183 $ 1,668 $ 409 $ 168 $ 4,924 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 98 $ 16 $ — $ — $ 66 $ 16 $ — $ — $ 196 Collectively evaluated for impairment 84 365 160 773 1,117 1,652 409 168 4,728 Total allowance for loan losses $ 182 $ 381 $ 160 $ 773 $ 1,183 $ 1,668 $ 409 $ 168 $ 4,924 Ending balance of loans receivable: Individually evaluated for impairment $ 421 $ 919 $ — $ 510 $ 66 $ 38 $ — $ — $ 1,954 Collectively evaluated for impairment 27,520 105,885 27,602 156,513 87,799 36,254 27,066 42,280 510,919 Loans acquired with deteriorated credit quality 73 187 — — — — — — 260 Total loans receivable $ 28,014 $ 106,991 $ 27,602 $ 157,023 $ 87,865 $ 36,292 $ 27,066 $ 42,280 $ 513,133 Credit Quality Indicators The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, construction, land, multi-family real estate, other commercial real estate, and commercial and industrial loans are graded based on pre-determined risk metrics and categorized into one of nine risk grades. These risk grades can be summarized into categories described as pass, special mention, substandard, doubtful and loss, as described in further detail below. • Pass (Risk Grades 1-5): Loans in this category include obligations in which the probability of default is considered low. • Special Mention (Risk Grade 6): Loans in this category exhibit potential credit weaknesses or downward trends deserving management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Although a special mention asset has a higher probability of default than pass-rated categories, its default is not imminent. • Substandard (Risk Grade 7): Loans in this category have defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard. • Doubtful (Risk Grade 8): Loans classified as doubtful have all of the weaknesses found in substandard loans, with the added characteristic that the weaknesses make collection of debt in full, based on currently existing facts, conditions and values, highly questionable or improbable. Serious problems exist such that partial loss of principal is likely; however, because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Such pending factors may include proposed merger, acquisition or liquidation procedures, capital injection, perfection of liens on additional collateral and refinancing plans. Loans classified as doubtful may include loans to borrowers that have demonstrated a history of failing to live up to agreements. The Company did not have any loans classified as Doubtful (Risk Grade 8) as of March 31, 2020 or December 31, 2019. • Loss (Risk Grade 9): Loans are classified in this category when borrowers are deemed incapable of repayment of unsecured debt. Loans to such borrowers are considered uncollectable and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not prudent to defer writing off these assets, even though partial recovery may be realized in the future. The Company did not have any loans classified as Loss (Risk Grade 9) as of March 31, 2020 or December 31, 2019. Because residential real estate and consumer loans are more uniform in nature, each loan is categorized into one of two risk grades, depending on whether the loan is considered to be performing or nonperforming. Performing loans are loans that are paying principal and interest in accordance with a contractual agreement. Nonperforming loans are loans that have demonstrated characteristics that indicate a probability of loss. The tables below illustrate the carrying amount of loans by credit quality indicator as of March 31, 2020: March 31, 2020 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 31,849 $ 78 $ — $ 31,927 Secured by multi-family residential properties 44,029 — — 44,029 Secured by non-farm, non-residential properties 151,142 2,814 2,266 156,222 Commercial and industrial loans 79,554 747 470 80,771 Total $ 306,574 $ 3,639 $ 2,736 $ 312,949 March 31, 2020 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 98,051 $ 2,135 $ 100,186 Consumer loans: Direct consumer 35,765 542 36,307 Branch retail 31,332 236 31,568 Indirect sales 69,952 30 69,982 Total $ 235,100 $ 2,943 $ 238,043 The above amounts include PCI loans. As of March 31, 2020, $0.2 million of PCI loans were classified as “Nonperforming.” The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2019: December 31, 2019 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 30,466 $ 354 $ — $ 30,820 Secured by multi-family residential properties 50,910 — — 50,910 Secured by non-farm, non-residential properties 157,718 2,961 2,302 162,981 Commercial and industrial loans 88,463 714 1,780 90,957 Total $ 327,557 $ 4,029 $ 4,082 $ 335,668 December 31, 2019 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 102,176 $ 2,361 $ 104,537 Consumer loans: Direct consumer 37,474 566 38,040 Branch retail 32,024 281 32,305 Indirect sales 45,503 — 45,503 Total $ 217,177 $ 3,208 $ 220,385 The above amounts include PCI loans. As of December 31, 2019, $0.2 million of PCI loans were classified as “Nonperforming.” The following table provides an aging analysis of past due loans by class as of March 31, 2020: As of March 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days And Accruing (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — $ — $ — $ — $ 31,927 $ 31,927 $ — Secured by 1-4 family residential properties 588 35 127 750 99,436 100,186 — Secured by multi-family residential properties — — — — 44,029 44,029 — Secured by non-farm, non-residential properties 200 — 1,416 1,616 154,606 156,222 — Commercial and industrial loans 1,266 378 — 1,644 79,127 80,771 — Consumer loans: Direct consumer 318 273 542 1,133 35,174 36,307 — Branch retail 252 122 237 611 30,957 31,568 — Indirect sales 261 19 30 310 69,672 69,982 — Total $ 2,885 $ 827 $ 2,352 $ 6,064 $ 544,928 $ 550,992 $ — The above amounts include PCI loans. As of March 31, 2020, $0.2 million of PCI loans were 60-89 days past due. The following table provides an aging analysis of past due loans by class as of December 31, 2019: As of December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days And Accruing (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — $ — $ — $ — $ 30,820 $ 30,820 $ — Secured by 1-4 family residential properties 259 108 844 1,211 103,326 104,537 — Secured by multi-family residential properties — — — — 50,910 50,910 — Secured by non-farm, non-residential properties 30 — 1,419 1,449 161,532 162,981 — Commercial and industrial loans 56 — — 56 90,901 90,957 — Consumer loans: Direct consumer 387 287 531 1,205 36,835 38,040 — Branch retail 444 189 281 914 31,391 32,305 — Indirect sales 132 — — 132 45,371 45,503 — Total $ 1,308 $ 584 $ 3,075 $ 4,967 $ 551,086 $ 556,053 $ — The above amounts include PCI loans. As of December 31, 2019, $0.2 million of PCI loans were 60-89 days past due. The following table provides an analysis of non-accruing loans by class as of March 31, 2020 and December 31, 2019: Loans on Non-Accrual Status March 31, 2020 December 31, 2019 (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 8 $ 8 Secured by 1-4 family residential properties 1,372 1,423 Secured by multi-family residential properties — — Secured by non-farm, non-residential properties 1,423 1,426 Commercial and industrial loans 72 27 Consumer loans: Direct consumer 553 558 Branch retail 237 281 Indirect sales 30 — Total loans $ 3,695 $ 3,723 As of both March 31, 2020 and December 31, 2019, PCI loans comprised $0.2 million of nonaccrual loans. Subsequent Events: COVID-19 Loan Deferments and Preliminary Risk Identification In accordance with section 4013 of the Coronavirus Aid, Relief and Economic Security Act (the “CARES Act”), which was signed into law on March 27, 2020, along with interpretive guidance from banking regulatory agencies, the Company has implemented initiatives to provide short-term payment relief to borrowers who have been negatively impacted by COVID-19. Over 1,400 of the Company’s borrowers have requested and have been granted COVID-19 pandemic-related deferments by the Company. Although the interpretive guidance defines short-term as six-months, the deferments granted by the Company were generally for terms of 90 days or less. The majority of the deferment requests were approved by the Company subsequent to March 31, 2020. The table below summarizes all COVID-19 loan payment deferments made by the Company through April 30, 2020 and the percentages of these loans respective to the related portfolio balances as of March 31, 2020. As of April 30, 2020 Number of Loans Deferred Principal Balance of Loans Deferred % of Portfolio Balance as of March 31, 2020 Principal and Interest Deferments Principal Only Deferments (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans 3 $ 16,666 52.2 % $ 9,513 $ 7,153 Secured by 1-4 family residential properties 71 11,549 11.5 % 9,368 2,181 Secured by multi-family residential properties 11 24,482 55.6 % 5,421 19,061 Secured by non-farm, non-residential properties 53 49,851 31.9 % 45,575 4,276 Commercial and industrial loans 12 1,645 2.0 % 1,255 390 Consumer loans: Direct consumer 830 3,774 10.4 % 3,774 — Branch retail 283 2,825 8.9 % 2,825 — Indirect sales 170 4,198 6.0 % 4,198 — Total loans 1,433 $ 114,990 20.9 % $ 81,929 $ 33,061 As of March 31, 2020, no risk grades were changed on loans as a result of COVID-19 deferments. The credit quality of COVID-19 deferred loans will be evaluated on an ongoing basis in accordance with the Company’s uniform framework for establishing and monitoring credit risk. However, in accordance with regulatory guidance related to the CARES Act, loans for which payments were deferred related to COVID-19 will generally not be considered troubled debt restructurings or placed in past due or nonaccrual status during the COVID-19 deferment period. While most industries have and will continue to experience adverse impacts as a result of the COVID-19 pandemic, the Company has identified certain loan categories considered to be “at-risk” of significant impact. The “at-risk” categories have been further subdivided into those deemed by management to be of “high-risk” and those deemed to be of “moderate-risk.” The categories were determined based on management’s current judgment as to the risk that the borrower and underlying collateral supporting the loans could ultimately be negatively impacted by the economic impact of the COVID-19 pandemic. Hotels/motels – These are loans that are secured by real estate and furniture, fixtures and equipment for hotel or motel facilities. This category may also include hotel or motel facilities that were under construction as of March 31, 2020, and for which the Company is financing the construction costs. While all loans in this category are to individual owner groups, 90% of the loan balance is to major franchises. The primary source of income for the borrowers comes from nightly occupancy of the facilities. Because hotels and motels have not been considered essential businesses during the COVID-19 pandemic, and due to restrictions on travel by many state and local governmental authorities, employers and other entities, the hotel industry has seen declines in occupancy rates, resulting in decreased revenue. Additionally, as the government begins to reduce restrictions, there is uncertainty as to when the public will have the confidence to utilize hotels and motels at the levels the industry experienced prior to COVID-19. Therefore, these loans are currently considered by management to be of high risk of potential loss. Restaurants – These are loans that are secured by real estate, equipment and leasehold improvements for restaurant facilities. This category may also include restaurant facilities that were under construction as of March 31, 2020, and for which the Company is financing the construction costs. The restaurant category is comprised of franchised fast food restaurants, which account for 52% of the restaurants loan balance, and dine-in restaurants, which represent the remaining 48% of the loan balance. The primary source of income for the borrowers comes from the operation of the restaurant facilities. Fast food restaurants have shown the ability to adapt more quickly to governmental restrictions due to COVID-19 because of their established presence with drive-through business, and therefore, are considered by management to be of moderate risk of potential loss. Dine-in restaurants, which rely more heavily on the presence of diners within the facilities, have had to adapt to a drive-up concept in the current environment. Due to the greater impact that restrictions placed by governmental authorities have had on dine-in restaurants, these loans are currently considered by management to be of high risk of potential loss. Retail – These are loans that are generally secured by retail strip centers of various sizes. Typically, they have multiple retail-styled tenants. The tenants can range from national or regional retail outlets to small box retailers, restaurants, finance companies, hair and nail salons, and other similar retailers. The primary source of income for these borrowers is from the rental income of tenants that could be considered non-essential businesses during the COVID-19 pandemic. These loans are currently considered by management to be of moderate risk of potential loss. Risk in this category could become more severe if restrictions related to retail stores in response to the COVID-19 pandemic continue for an extended period of time. 1-4 family investment – These are loans that are generally secured by residential dwellings. The borrowers may be companies or individuals that have purchased 1-4 family property for the purpose of leasing the property to households as a residence. Lease terms are typically for 12 months. The primary source of income for the borrower is rental income from the tenant. The borrowers may hold the properties for an indefinite period of time or may sell the properties to similar investors of like properties. These loans are currently considered by management to be of moderate risk of potential loss. Risk in this category could become more severe if economic activity in the area surrounding the properties continues to be restricted due to the COVID-19 pandemic for an extended period of time. The table below summarizes the “at-risk” categories and the relative percentage of the Company’s loan portfolio for each as of March 31, 2020. March 31, 2020 At-Risk Loan Category Due to COVID-19 Balance of Risk Category % of Total Loan Balance (Dollars in Thousands) High-risk loan categories: Hotels/motels $ 10,479 1.9 % Dine-in restaurants 4,508 0.8 % Total high-risk loans 14,987 2.7 % Moderate-risk loan categories: Fast food restaurants 5,067 0.9 % Retail 34,073 6.2 % 1-4 family investment 25,620 4.7 % Total moderate-risk loans 64,760 11.8 % Total at-risk loans $ 79,747 14.5 % As of April 30, 2020, no risk grades had been changed on loans considered to be “at-risk” due to the COVID-19 pandemic. Management will continue to evaluate credit exposures on these loans on an ongoing basis in accordance with the Company’s uniform framework for establishing and monitoring credit risk. Paycheck Protection Program Sections 1102 and 1106 of the CARES Act added a new loan program administered by the Small Business Administration (“SBA”) entitled the Paycheck Protection Program (“PPP”). The PPP is intended to provide economic relief to small businesses throughout the United States that have been adversely impacted by COVID-19. An Interim Final Rule related to the PPP was issued on April 2, 2020, and additional clarifications to the Interim Final Rule have been provided subsequently by the SBA. The Company has participated in the PPP. As of April 30, 2020, the Company had obtained approval from the SBA for 132 loans to small businesses, with an aggregate principal balance of $13.6 million. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the related loan agreement. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the liquidation of the collateral. At the Bank, all loans of $0.5 million or more that have a credit quality risk grade of seven or above are identified for impairment analysis. Loans of less than $0.5 million may also be impaired if in management’s judgement circumstances warrant impairment. At ALC, all loans of $50 thousand or more that are 90 days or more past due are identified for impairment analysis. As of both March 31, 2020 and December 31, 2019, there were $0.1 million of impaired loans with no related allowance recorded at ALC. Impaired loans, or portions thereof, are charged off when deemed uncollectable. As of March 31, 2020, the carrying amount of the Company’s impaired loans consisted of the following: March 31, 2020 Carrying Amount Unpaid Principal Balance Related Allowances (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 940 940 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,754 2,754 — Commercial and industrial — — — Direct consumer — — — Total loans with no related allowance recorded $ 3,694 $ 3,694 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 20 20 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 63 63 63 Direct consumer 26 26 3 Total loans with an allowance recorded $ 109 $ 109 $ 80 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 960 960 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,754 2,754 — Commercial and industrial 63 63 63 Direct consumer 26 26 3 Total impaired loans $ 3,803 $ 3,803 $ 80 The above amounts include PCI loans. As of March 31, 2020, PCI loans comprised $0.2 million of impaired loans without a related allowance recorded. As of December 31, 2019, the carrying amount of the Company’s impaired loans consisted of the following: December 31, 2019 Carrying Amount Unpaid Principal Balance Related Allowances (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 984 984 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,877 1,877 — Commercial and industrial — — — Direct consumer — — — Total loans with no related allowance recorded $ 2,861 $ 2,861 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 21 21 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 206 206 206 Direct consumer 29 29 7 Total loans with an allowance recorded $ 256 $ 256 $ 227 Total impaired loans Loans secured by real estate . Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 1,005 1,005 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,877 1,877 — Commercial and industrial 206 206 206 Direct consumer 29 29 7 Total impaired loans $ 3,117 $ 3,117 $ 227 The above amounts include PCI loans. As of December 31, 2019, PCI loans comprised $0.2 million of impaired loans without a related allowance recorded. The average net investment in impaired loans and interest income recognized and received on impaired loans during the three months ended March 31, 2020 and the year ended December 31, 2019 were as follows: Three Months Ended March 31, 2020 Average Recorded Investment Interest Income Recognized Interest Income Received (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 902 2 2 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,757 — — Commercial and industrial 110 2 2 Direct consumer 27 1 1 Total $ 3,796 $ 5 $ 5 Year Ended December 31, 2019 Average Recorded Investment Interest Income Recognized Interest Income Received (Dollars in Thousands) Loans secured by real estate Construction, land development a |
Other Real Estate Owned and Rep
Other Real Estate Owned and Repossessed Assets | 3 Months Ended |
Mar. 31, 2020 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned and Repossessed Assets | 5 . OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS Other Real Estate Owned Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the three months ended March 31, 2020 and 2019: March 31, 2020 March 31, 2019 (Dollars in Thousands) Beginning balance $ 1,078 $ 1,505 Additions (1) 18 121 Sales proceeds (37 ) (374 ) Gross gains 5 29 Gross losses — (21 ) Net gains 5 8 Impairment (10 ) (38 ) Ending balance $ 1,054 $ 1,222 (1) Additions to other real estate owned (“OREO”) include transfers from loans 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 $0.1 million as of both March 31, 2020 and 2019. In addition, the Company held $0.1 million of consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of both March 31, 2020 and 2019. Repossessed Assets In addition to the other real estate and other assets acquired in foreclosure, the Company also acquires assets through the repossession of the underlying collateral of loans in default. The following table summarizes repossessed asset activity as of the three months ended March 31, 2020 and 2019: March 31, 2020 March 31, 2019 (Dollars in Thousands) Beginning balance $ 256 $ 229 Transfers from loans 317 146 Sales proceeds (153 ) (83 ) Gross gains — 2 Gross losses (166 ) (92 ) Net losses (166 ) (90 ) Impairment — — Ending balance $ 254 $ 202 Repossessed assets are included in Other Assets in the Company’s balance sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | 6. GOODWILL AND OTHER INTANGIBLE ASSETS The Company recorded $7.4 million of goodwill as a result of its acquisition of TPB in 2018. Goodwill impairment was neither indicated nor recorded during the three months ended March 31, 2020 or the year ended December 31, 2019. Goodwill is tested annually, or more often if circumstances warrant, for impairment. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated, and goodwill is 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 March 31, 2020 and December 31, 2019. Core deposit premiums are amortized over a seven-year period and are periodically evaluated, at least annually, as to the recoverability of their carrying value. Core deposit premiums of $2.0 million were recorded during 2018 as part of the TPB acquisition. The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) as of March 31, 2020 were as follows: March 31, 2020 (Dollars in Thousands) Goodwill $ 7,435 Core deposit intangible: Gross carrying amount 2,048 Accumulated amortization (768 ) Core deposit intangible, net 1,280 Total $ 8,715 The Company’s estimated remaining amortization expense on intangibles as of March 31, 2020 was as follows: Amortization Expense (Dollars in Thousands) 2020 $ 305 2021 341 2022 268 2023 195 2024 122 2025 49 Total $ 1,280 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 the use and eventual disposition. That assessment is based on the carrying amount of the intangible assets subject to amortization at the date on which it is tested for recoverability. Intangible assets subject to amortization are tested by the Company for recoverability whenever events or changes in circumstances indicate that its carrying amount may not be recoverable. |
Short-term Borrowings
Short-term Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | 7 . 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. Short-term borrowings totaled $10.2 million and $10.0 million as of March 31, 2020 and December 31, 2019, respectively. Federal funds purchased, which represent unsecured lines of credit that generally mature within one to four days, are available to the Bank through arrangements with correspondent banks and the Federal Reserve. As of both March 31, 2020 and December 31, 2019, there were no federal funds purchased outstanding. The Bank had $61.5 million and $61.7 million in available unused lines of credit with correspondent banks and the Federal Reserve as of March 31, 2020 and December 31, 2019, respectively. Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of March 31, 2020 and December 31, 2019 totaled $0.2 million and $25 thousand, respectively. Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source. As of both March 31, 2020 and December 31, 2019, the Bank had $10.0 million in outstanding FHLB advances with original maturities of less than one year. The Company may use FHLB advances with original maturities of more than one year as an alternative to funding sources with similar maturities, such as certificates of deposit or other deposit programs. These advances generally offer more attractive rates than other mid-term financing options. They are also flexible, allowing the Company to quickly obtain the necessary maturities and rates that best suit its overall asset/liability strategy. FHLB advances with an original maturity of more than one year are classified as long-term. As of both March 31, 2020 and December 31, 2019, the Company did not have any long-term FHLB advances outstanding. Assets pledged (including loans and investment securities) associated with FHLB advances totaled $32.9 million and $34.6 million as of March 31, 2020 and December 31, 2019, respectively. As of March 31, 2020 and December 31, 2019, the Bank had $226.5 million and $211.5 million, respectively, in remaining credit from the FHLB (subject to available collateral). |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . INCOME TAXES The provision for income taxes was $0.3 million and $0.4 million for the three-month periods ended March 31, 2020 and, 2019, respectively. The Company’s effective tax rate was 23.6% and 22.1%, 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 $2.7 million and $2.8 million as of March 31, 2020 and December 31, 2019, respectively. The decrease in the net deferred tax asset resulted primarily from the impact of changes in the fair value of securities available-for-sale, combined with reductions in net operating loss carryforwards and other book-to-tax temporary differences. |
Deferred Compensation Plans
Deferred Compensation Plans | 3 Months Ended |
Mar. 31, 2020 | |
Compensation Related Costs [Abstract] | |
Deferred Compensation Plans | 9 . DEFERRED COMPENSATION PLANS The Company has entered into supplemental retirement compensation benefits agreements with certain directors and former executive officers. The measurement of the liability under these agreements includes estimates involving life expectancy, length of time before retirement and the expected returns on the bank-owned life insurance policies used to fund those agreements. Should these estimates prove to be materially wrong, the cost of these agreements could change accordingly. The related deferred compensation obligation to these directors and executive officers included in other liabilities was $3.2 million as of both March 31, 2020 and December 31, 2019. Non-employee directors may elect to defer payment of all or any portion of their Bancshares and Bank director fees under Bancshares’ Non-Employee Directors’ Deferred Compensation Plan (the “Deferral Plan”). The Deferral Plan permits non-employee directors to invest their directors’ fees and to receive the adjusted value of the deferred amounts in cash and/or shares of Bancshares’ common stock. Neither Bancshares nor the Bank makes any contribution to participants’ accounts under the Deferral Plan. As of March 31, 2020 and December 31, 2019, a total of 129,540 and 124,392 shares of Bancshares common stock, respectively, were deferred in connection with the Deferral Plan. All deferred fees, whether in the form of cash or shares of Bancshares common stock, are reflected as compensation expense in the period earned. The Company classifies all deferred directors’ fees allocated to be paid in shares as equity surplus. The Company may use issued shares or shares of treasury stock to satisfy these obligations when due. |
Stock Awards
Stock Awards | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Awards | 1 0 . STOCK AWARDS In accordance with the Company’s 2013 Incentive Plan, stock awards, including stock options and restricted stock, have been granted to certain employees and non-employee directors. Shares of common stock available for distribution to satisfy the grants may consist, in whole or in part, of authorized and unissued shares, treasury shares or shares reacquired by the Company in any manner. Stock-based compensation expense related to stock awards totaled $0.1 million for both of the three-month periods ended March 31, 2020 and 2019. 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 based on the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. 2020 2019 Risk-free interest rate 1.24 % 2.59 % Expected term (in years) 7.5 7.5 Expected stock price volatility 28.9 % 30.9 % Dividend yield 1.25 % 1.25 % Fair value of stock option 3.34 3.30 The following table summarizes the Company’s stock option activity for the periods presented. Three Months Ended March 31, 2020 March 31, 2019 Number of Shares Average Exercise Price Number of Shares Average Exercise Price Options: Outstanding, beginning of period 412,800 $ 9.72 377,950 $ 9.80 Granted 10,200 11.95 66,150 10.01 Exercised 666 10.75 — — Expired — — — — Forfeited 334 10.75 — — Options outstanding, end of period 422,000 $ 9.77 444,100 $ 9.83 Options exercisable, end of period 352,517 $ 9.58 312,783 $ 9.25 The aggregate intrinsic value of stock options outstanding (calculated as the amount by which the market value of underlying stock exceeds the exercise price of the option) was approximately zero and $0.4 million as of March 31, 2020 and 2019, respectively. Restricted Stock During the three months ended March 31, 2020 and 2019, respectively, 24,160 shares and 5,520 shares of restricted stock were granted. The Company recognizes the cost of services received in exchange for restricted stock awards based on the grant date closing price of the stock, with compensation expense recognized on a straight-line basis over the award’s vesting period. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Leases | 1 1 . LEASES The Bank and ALC are involved in a number of operating leases, primarily for branch locations. Branch leases have remaining lease terms ranging from less than one year to 14 years, some of which include options to extend the leases for up to five years, and some of which include an option to terminate the lease within one year. The Bank leases certain office facilities to third parties and classifies these leases as operating leases. The following table provides a summary of the components of lease expense, as well as the reporting location in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019: Location in the Condensed Three Months Ended Consolidated Statements of Operations March 31, 2020 March 31, 2019 (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 211 $ 210 Operating lease income (2) Other income, net $ 212 $ 209 (1) Includes short-term lease costs. For the three-month periods ended March 31, 2020 and 2019, short-term lease costs were nominal in amount. (2) Operating lease income includes rental income from owned properties. The following table provides supplemental lease information for operating leases on the Condensed Consolidated Balance Sheet as of March 31, 2020: Location in the Condensed Consolidated Balance Sheet March 31, 2020 (Dollars in Thousands) Operating lease right-of-use assets Other assets $ 3,377 Operating lease liabilities Other liabilities $ 3,414 Weighted-average remaining lease term (in years) 6.51 Weighted-average discount rate 3.16 % The following table provides supplemental lease information for the Condensed Consolidated Statements of Cash Flows for the three months ended March 31, 2020 and 2019: Three Months Ended March 31, 2020 March 31, 2019 (Dollars in Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 188 $ 192 The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of March 31, 2020: Minimum Rental Payments (Dollars in Thousands) 2020 $ 524 2021 609 2022 539 2023 453 2024 438 2025 and thereafter 1,276 Total future minimum lease payments $ 3,839 Less: Imputed interest 425 Total operating lease liabilities $ 3,414 |
Derivative Financial Instrument
Derivative Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments | 1 2 . DERIVATIVE FINANCIAL INSTRUMENTS The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of certain balance sheet assets and liabilities. In the normal course of business, the Company also uses derivative financial instruments to add stability to interest income or expense and to manage its exposure to movements in interest rates. The Company does not use derivatives for trading or speculative purposes and only enters into transactions that have a qualifying hedge relationship. The Company’s hedging strategies involving interest rate derivatives are classified as either fair value hedges or cash flow hedges, depending upon the rate characteristic of the hedged item. Cash Flow Hedges Effective July 8, 2019, the Bank entered into a forward interest rate swap contract on certain variable-rate money market deposit accounts (indexed to the Federal Funds effective rate’s daily weighted average) with a total notional amount of $10.0 million. The money market account balances are expected to exceed $10 million for the next seven years and the rates on these deposits are anticipated to move closely with changes in one-month LIBOR, or a comparable benchmark interest rate. The interest rate swap was designated as a derivative instrument in a cash flow hedge with the objective of converting the floating interest payments to a fixed rate throughout the seven-year period beginning on July 8, 2019 and ending on July 8, 2026. Under the swap arrangement, the Bank will pay a fixed interest rate of 1.790% and receive a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount of $10.0 million, with monthly net settlements. Effective July 22, 2019, the Bank entered into a forward interest rate swap contract on certain variable-rate money market deposit accounts (indexed to the Federal Funds effective rate’s daily weighted average) with a total notional amount of $10.0 million. The money market account balances are expected to exceed $10 million for the next five years and the rates on these deposits are anticipated to move closely with changes in one-month LIBOR, or a comparable benchmark interest rate. The interest rate swap was designated as a derivative instrument in a cash flow hedge with the objective of converting the floating interest payments to a fixed rate throughout the five-year period beginning on July 22, 2019 and ending on July 22, 2024. Under the swap arrangement, the Bank will pay a fixed interest rate of 1.698% and receive a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount of $10.0 million, with monthly net settlements. Effective October 1, 2019, the Bank entered into a forward interest rate swap contract on a variable-rate FHLB advance (indexed to one-month LIBOR) with a total notional amount of $10.0 million. The FHLB advance will be renewed on a monthly basis and will remain outstanding until October 1, 2024. The interest rate swap was designated as a derivative instrument in a cash flow hedge with the objective of converting the floating interest payments to a fixed rate throughout the five-year period beginning on October 1, 2019 and ending on October 1, 2024. Under the swap arrangement, the Bank will pay a fixed interest rate of 1.357% and receive a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount of $10.0 million, with monthly net settlements. Fair Value Hedges Effective August 9, 2019, the Bank entered into a forward interest rate swap contract on fixed rate commercial real estate loans with a total notional amount of $10.0 million. The interest rate swap was designated as a derivative instrument in a fair value hedge with the objective of effectively converting a pool of fixed rate assets to variable rate throughout the five-year period beginning on August 9, 2019 and ending on August 9, 2024. Under the swap arrangement, the Bank will pay a fixed interest rate of 1.406% and receive a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount of $10.0 million, with monthly net settlements. Effective August 21, 2019, the Bank entered into a forward interest rate swap contract on fixed rate commercial real estate loans with a total notional amount of $10.0 million. The interest rate swap was designated as a derivative instrument in a fair value hedge with the objective of effectively converting a pool of fixed rate assets to variable rate throughout the five-year period beginning on August 21, 2019 and ending on August 21, 2024. Under the swap arrangement, the Bank will pay a fixed interest rate of 1.292% and receive a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount of $10.0 million, with monthly net settlements. The Company has elected the last-of-layer method with respect to both of its fair value hedges. This approach allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows. Relative to the identified pools of loans, this represents the last dollar amount of the designated commercial loans, which is equivalent to the notional amounts of the derivative instruments. The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Location in the Condensed Consolidated Balance Sheet in Which the Hedged Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets Item is Included March 31, 2020 (Dollars in Thousands) Loans and leases, net of allowance for loan and lease losses (1) $ 56,885 $ 749 (1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of March 31, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $56.1 million, the cumulative basis adjustments associated with these hedging relationships was $0.7 million, and the amounts of the designated hedged items were $20 million. |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Segment Reporting | 1 3 . SEGMENT REPORTING Under ASC Topic 280, Segment Reporting All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2020: Net interest income $ 6,480 $ 2,400 $ 6 $ — $ 8,886 Provision for loan losses 248 332 — — 580 Total non-interest income 1,094 237 1,234 (1,268 ) 1,297 Total non-interest expense 6,156 2,169 356 (187 ) 8,494 Income before income taxes 1,170 136 884 (1,081 ) 1,109 Provision for income taxes 274 51 (63 ) — 262 Net income $ 896 $ 85 $ 947 $ (1,081 ) $ 847 Other significant items: Total assets $ 791,302 $ 61,503 $ 89,897 $ (154,137 ) $ 788,565 Total investment securities 109,998 — 81 — 110,079 Total loans, net 535,188 58,074 — (53,577 ) 539,685 Goodwill and core deposit intangible, net 8,715 — — — 8,715 Investment in subsidiaries — — 83,680 (83,680 ) — Fixed asset additions 219 14 — — 233 Depreciation and amortization expense 366 33 — — 399 Total interest income from external customers 7,257 3,140 — — 10,397 Total interest income from affiliates 740 — 6 (746 ) — All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2019: Net interest income $ 6,009 $ 3,158 $ 6 $ — $ 9,173 Provision for loan losses — 400 — — 400 Total non-interest income 1,078 219 1,581 (1,613 ) 1,265 Total non-interest expense 5,833 2,368 427 (175 ) 8,453 Income before income taxes 1,254 609 1,160 (1,438 ) 1,585 Provision for income taxes 262 143 (54 ) — 351 Net income $ 992 $ 466 $ 1,214 $ (1,438 ) $ 1,234 Other significant items: Total assets $ 796,876 $ 102,780 $ 86,977 $ (191,299 ) $ 795,334 Total investment securities 147,947 — 78 — 148,025 Total loans, net 492,895 98,902 — (89,037 ) 502,760 Goodwill and core deposit intangible, net 9,184 — — — 9,184 Investment in subsidiaries 5 — 81,236 (81,236 ) 5 Fixed asset additions 1,677 14 — — 1,691 Depreciation and amortization expense 367 33 — — 400 Total interest income from external customers 6,493 4,319 1 — 10,813 Total interest income from affiliates 1,161 — 5 (1,166 ) — |
Other Operating Income and Expe
Other Operating Income and Expense | 3 Months Ended |
Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating Income and Expense | 1 4 . OTHER OPERATING INCOME AND EXPENSE Other Operating Income Other operating income for the three months ended March 31, 2020 and 2019 consisted of the following: Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Bank-owned life insurance $ 108 $ 106 Auto Club revenue 35 38 ATM fee income 100 104 Wire transfer fees 13 11 Other income 115 78 Total $ 371 $ 337 On January 1, 2018, the Company implemented ASU Revenue from Contracts with Customers All of the Company’s revenue that is subject to ASC Topic 606 is included in non-interest income; however, not all non-interest income is subject to ASC Topic 606. Revenue earned by the Company that is subject to ASC Topic 606 primarily consists of service and other charges on deposit accounts, mortgage fees from secondary market transactions at the Bank, ATM fee income and other non-interest income. Revenue generated from these sources for both of the three-month periods ended March 31, 2020 and 2019 was $0.7 million. All sources of the Company’s revenue subject to ASC Topic 606 are transaction-based, and revenue is recognized at the time at which the transaction is executed, which is the same time at which the Company’s performance obligation is satisfied. The Company had no contract liabilities or unsatisfied performance obligations with customers as of March 31, 2020. Other Operating Expense Other operating expense for the three months ended March 31, 2020 and 2019 consisted of the following: Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Postage, stationery and supplies $ 214 $ 238 Telephone/data communication 223 213 Advertising and marketing 44 34 Travel and business development 126 111 Collection and recoveries 85 80 Other services 91 72 Insurance expense 162 162 FDIC insurance and state assessments 80 119 Gain or loss on sale of fixed assets 166 85 Core deposit intangible amortization 110 128 Other real estate/foreclosure expense, net 19 58 Other expense 342 483 Total $ 1,662 $ 1,783 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 1 5 . GUARANTEES, COMMITMENTS AND CONTINGENCIES The Bank’s exposure to credit loss in the event of nonperformance by the other party for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making these commitments as it does for on-balance sheet instruments. In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit, letters of credit and others, that are not included in the consolidated financial statements. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the financial statements. A summary of these commitments and contingent liabilities is presented below: March 31, 2020 December 31, 2019 (Dollars in Thousands) Standby letters of credit $ 180 $ 180 Standby performance letters of credit $ 647 $ 647 Commitments to extend credit $ 109,308 $ 96,967 Standby letters of credit and standby performance letters of credit are contingent commitments issued by the Bank generally to guarantee the performance of a customer to a third party. The Bank has recourse against the customer for any amount that it is required to pay to a third party under a standby letter of credit or standby performance letter of credit. Revenues are recognized over the lives of the standby letters of credit and standby performance letters of credit. As of March 31, 2020 and December 31, 2019, the potential amounts of future payments that the Bank could be required to make under its standby letters of credit and standby performance letters of credit, which represent the Bank’s total credit risk in these categories, are included in the table above. A commitment to extend credit is an agreement to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon the extension of credit, is based on management’s credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. The Company is self-insured for a significant portion of employee health benefits. However, the Company maintains stop-loss coverage with third-party insurers to limit the Company’s individual claim and total exposure related to self-insurance. The Company estimates accrued liability for the ultimate costs to settle known claims, as well as claims incurred but not yet reported, as of the balance sheet date. The Company’s recorded estimated liability for self-insurance is based on the insurance companies’ incurred loss estimates and management’s judgment, including assumptions and evaluation of factors related to the frequency and severity of claims, the Company’s claims development history and the Company’s claims settlement practices. The assessment of loss contingencies and self-insurance reserves is a highly subjective process that requires judgments about future events. Contingencies are reviewed at least quarterly to determine the adequacy of self-insurance accruals. Self-insurance accruals totaled $0.2 million as of both March 31, 2020 and December 31, 2019. The ultimate settlement of loss contingencies and self-insurance reserves may differ significantly from amounts accrued in the Company’s consolidated financial statements. Litigation The Company is party to certain ordinary course litigation from time to time, and the Company intends to vigorously defend itself in all such litigation. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such ordinary course litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | 1 6 . FAIR VALUE OF FINANCIAL INSTRUMENTS The Company follows the provisions of ASC Topic 820, Fair Value Measurements and Disclosures Fair Value Hierarchy Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between willing market participants at the measurement date. In determining fair value, the Company uses various methods, including market, income and cost approaches. Based on these approaches, the Company often utilizes certain assumptions that market participants would use in pricing the asset or liability, including assumptions about risk and/or the risks inherent in the inputs to the valuation technique. These inputs can be readily observable, market-corroborated or generally unobservable inputs. The Company utilizes valuation techniques that maximize the use of observable inputs and minimize the use of unobservable inputs. Based on the observability of the inputs used in the valuation techniques, the Company is required to provide the following information according to the fair value hierarchy. The fair value hierarchy ranks the quality and reliability of the information used to determine fair value. Assets and liabilities carried at fair value will be classified and disclosed in one of the following three categories: • Level 1 — Valuations for assets and liabilities traded in active exchange markets, such as the New York Stock Exchange or Nasdaq. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2 — Valuations for assets and liabilities traded in less active dealer or broker markets. Valuations are obtained from third-party pricing services for identical or similar assets or liabilities. • Level 3 — Valuations for assets and liabilities that are derived from other valuation methodologies, including option pricing models, discounted cash flow models and similar techniques, and not based on market exchange, dealer or broker-traded transactions. Level 3 valuations incorporate certain assumptions and projections in determining the fair value assigned to such assets or liabilities. The Company rarely transfers assets and liabilities measured at fair value between Level 1 and Level 2 measurements. Trading account assets and securities available-for-sale may be periodically transferred to or from Level 3 valuation based on management’s conclusion regarding the best method of pricing for an individual security. Such transfers are accounted for as if they occurred at the beginning of a reporting period. There were no such transfers during the three months ended March 31, 2020 or the year ended December 31, 2019. Fair Value Measurements on a Recurring Basis Securities Available-for-Sale Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include exchange-traded equities. Level 2 securities include U.S. Treasury and agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. Level 2 fair values are obtained from quoted prices of securities with similar characteristics. In certain cases, where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. The following table presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019. There were no liabilities measured at fair value on a recurring basis as of December 31, 2019. Fair Value Measurements as of March 31, 2020 Using Totals At March 31, 2020 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 43,102 $ — $ 43,102 $ — Commercial 48,740 — 48,740 — Obligations of states and political subdivisions 3,952 — 3,952 — Corporate notes 666 — 666 — U.S. Treasury securities 81 — 81 — Other liabilities - derivatives 2,541 — 2,541 — Fair Value Measurements as of December 31, 2019 Using Totals At December 31, 2019 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 46,345 $ — $ 46,345 $ — Commercial 43,373 — 43,373 — Obligations of states and political subdivisions 4,218 — 4,218 — U.S. Treasury securities 80 — 80 — Other assets - derivatives 301 — 301 — Fair Value Measurements on a Non-recurring Basis Impaired Loans Loans that are considered impaired are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due under the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price or the fair value of the collateral less estimated selling cost if the loan is collateral-dependent. For the Company, the fair value of impaired loans is primarily measured based on the value of the collateral securing the loans (typically real estate). The Company determines the fair value of the collateral based on independent appraisals performed by qualified licensed appraisers. The appraisals may include a single valuation approach or a combination of approaches, including comparable sales and income approaches. Appraised values are discounted for estimated costs to sell and may be discounted further based on management’s knowledge of the collateral, changes in market conditions since the most recent appraisal and/or management’s knowledge of the borrower and the borrower’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are evaluated by management for additional impairment at least quarterly and are adjusted accordingly. OREO 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. Assets Held-for-Sale Included within other assets are certain assets that were formerly included as premises and equipment but have been removed from service, and as of the balance sheet date, were designated as assets to be disposed of by sale. These include assets associated with branches of the Bank 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 assets held-for-sale measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019: Fair Value Measurements as of March 31, 2020 Using Totals At March 31, 2020 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Impaired loans $ 29 $ — $ — $ 29 OREO 1,054 — — 1,054 Assets held-for-sale 198 — — 198 Fair Value Measurements as of December 31, 2019 Using Totals At December 31, 2019 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Impaired loans $ 29 $ — $ — $ 29 OREO 1,078 — — 1,078 Assets held-for-sale 198 — — 198 Non-recurring Fair Value Measurements Using Significant Unobservable Inputs The following table presents information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of March 31, 2020. The table includes the valuation techniques and the significant unobservable inputs utilized. The range of each unobservable input and the weighted average within the range utilized as of March 31, 2020 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 March 31, 2020 Valuation Technique Unobservable Input Quantitative Range of Unobservable Inputs (Weighted Average) (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 29 Multiple data points, including discount to appraised value of collateral based on recent market activity Appraisal comparability adjustment (discount) 9%-10% (9.5%) OREO $ 1,054 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9%-10% (9.5%) Assets held-for-sale $ 198 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9%-10% (9.5%) Impaired Loans Impaired loans are valued based on multiple data points indicating the fair value for each loan. The primary data point is the appraisal value of the underlying collateral, to which a discount is applied. Management establishes this discount or comparability adjustment based on recent sales of similar property types. As liquidity in the market increases or decreases, the comparability adjustment and the resulting asset valuation are impacted. OREO OREO under a binding contract for sale is valued based on contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Assets Held-for-Sale Assets designated as held-for-sale that are under a binding contract are valued based on the contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Fair Value of Financial Instruments ASC Topic 825, Financial Instruments Cash, due from banks and federal funds sold: The carrying amount of cash, due from banks and federal funds sold approximates fair value. Federal Home Loan Bank stock: Based on the redemption provision of the FHLB, the stock has no quoted market value and is carried at cost. Investment securities: Fair values of investment securities are based on quoted market prices where available. If quoted market prices are not available, estimated fair values are based on market prices of comparable instruments. Derivative instruments: The fair value of derivative instruments is based on information obtained from a third-party financial institution. This information is periodically evaluated by the Company and, as necessary, corroborated against other third-party information. Accrued interest receivable and payable: The carrying amount of accrued interest approximates fair value. Loans, net: The fair value of loans is estimated on an exit price basis incorporating contractual cash flow, prepayment discount spreads, credit loss and liquidity premiums. Demand and savings deposits: The fair values of demand deposits are equal to the carrying value of such deposits. Demand deposits include non-interest-bearing demand deposits, savings accounts, NOW accounts and money market demand accounts. Time deposits: The fair values of relatively short-term time deposits are equal to their carrying values. Discounted cash flows are used to value long-term time deposits. The discount rate used is based on interest rates currently offered by the Company on comparable deposits as to amount and term. Short-term borrowings: These borrowings may consist of federal funds purchased, securities sold under agreements to repurchase and the floating rate borrowings from the FHLB account. Due to the short-term nature of these borrowings, fair values approximate carrying values. Long-term debt: The fair value of this debt is estimated using discounted cash flows based on the Company’s current incremental borrowing rate for similar types of borrowing arrangements as of the determination date. Off-balance sheet instruments: The carrying amount of commitments to extend credit and standby letters of credit approximates fair value. The carrying amount of the off-balance sheet financial instruments is based on fees currently charged to enter into such agreements. The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 56,121 $ 56,121 $ 56,121 $ — $ — Investment securities available-for-sale 96,541 96,541 — 96,541 — Investment securities held-to-maturity 13,538 13,645 — 13,645 — Federal funds sold 15,080 15,080 — 15,080 — Federal Home Loan Bank stock 1,135 1,135 — — 1,135 Loans, net of allowance for loan losses 539,685 542,410 — — 542,410 Liabilities: Deposits 682,595 668,433 — 668,433 — Short-term borrowings 10,152 10,152 — 10,152 — Other liabilities - derivatives 2,541 2,541 — 2,541 — December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 57,030 $ 57,030 $ 57,030 $ — $ — Investment securities available-for-sale 94,016 94,016 — 94,016 — Investment securities held-to-maturity 14,340 14,306 — 14,306 — Federal funds sold 10,080 10,080 — 10,080 — Federal Home Loan Bank stock 1,137 1,137 — — 1,137 Loans, net of allowance for loan losses 545,243 559,911 — — 559,911 Other assets - derivatives 301 301 — 301 — Liabilities: Deposits 683,662 682,828 — 682,828 — Short-term borrowings 10,025 10,025 — 10,025 — |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Reclassification | Reclassification Certain disclosures in the notes to the prior period consolidated financial statements have been reclassified to conform to the 2020 presentation. These reclassifications had no effect on the Company’s results of operations, financial position or net cash flow. |
Net Income Per Share | Net Income Per Share Basic net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding (basic shares). Included in basic shares are certain shares that have been accrued as of the balance sheet date as deferred compensation for members of Bancshares’ Board of Directors, as well as shares of restricted stock that have been granted pursuant to Bancshares’ 2013 Incentive Plan (as amended, the “2013 Incentive Plan”) previously approved by Bancshares’ shareholders. Diluted net income per share is computed by dividing net income by the weighted average number of shares of common stock outstanding, adjusted for the effect of potentially dilutive stock awards outstanding during the period (dilutive shares). The dilutive shares consist of nonqualified stock option grants issued to employees and members of Bancshares’ Board of Directors pursuant to the 2013 Incentive Plan. The following table reflects weighted average shares used to calculate basic and diluted net income per share for the periods presented. Three Months Ended March 31, 2020 2019 Basic shares 6,280,593 6,418,242 Dilutive shares 422,000 444,101 Diluted shares 6,702,593 6,862,343 Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Net income $ 847 $ 1,234 Basic net income per share $ 0.13 $ 0.19 Diluted net income per share $ 0.13 $ 0.18 |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities, settlement of derivative contracts or changes in the fair value of cash flow derivatives. |
Accounting Policies Recently Adopted | Accounting Policies Recently Adopted Accounting Standards Update (“ASU”) 2018-15 350-40 Issued in August 2018, ASU 2018-15 aims to reduce complexity in the accounting for costs of implementing a cloud computing service arrangement. ASU 2018-15 aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software (and hosting arrangements that include an internal-use software license). The amendments of ASU 2018-15 require an entity to follow the guidance in FASB Accounting Standards Codification (“ASC”) Subtopic 350-40, “ ,” in order to determine which implementation costs to capitalize as assets related to the service contract and which costs to expense. The amendments of ASU 2018-15 also require an entity to expense the capitalized implementation costs of a hosting arrangement that is a service contract over the term of the hosting arrangement (i.e., the noncancelable period of the arrangement plus periods covered by (1) an option to extend the arrangement if the entity is reasonably certain to exercise that option, (2) an option to terminate the arrangement if the entity is reasonably certain not to exercise the option and (3) an option to extend (or not to terminate) the arrangement in which exercise of the option is in the control of the vendor). ASU 2018-15 also requires an entity to present the expense related to the capitalized implementation costs in the same line item in the statement of income as the fees associated with the hosting element (service) of the arrangement, and to classify payments for capitalized implementation costs in the statement of cash flows in the same manner as payments made for fees associated with the hosting element. ASU 2018-15 became effective for the Company on January 1, 2020. The adoption of ASU 2018-15 did not have a material impact on the Company’s consolidated financial statements. ASU 2018-13 820 Issued in August 2018, the amendments in this ASU remove disclosure requirements in ASC Topic 820 related to (1) the amount of, and reasons for, transfers between Level 1 and Level 2 of the fair value hierarchy, (2) the policy for timing of transfers between levels and (3) the valuation processes for Level 3 fair value measurements. The ASU also modifies disclosure requirements such that (1) for investments in certain entities that calculate net asset value, an entity is required to disclose the timing of liquidation of an investee’s assets and the date that restrictions from redemption might lapse, only if the investee has communicated the timing to the entity or announced the timing publicly, and (2) it is clear that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. Additionally, this ASU adds disclosure requirements for public entities about (1) the changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period, and (2) the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. ASU 2018-13 became effective for the Company on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. Pending Accounting Pronouncements ASU 2020-04, Issued in March 2020, ASU 2020-04 seeks to provide guidance, for a limited time, to ease the potential burden in accounting for or recognizing the effects of reference rate reform on financial reporting. ASU 2020-04 was issued in response to concerns about the structural risks of interbank offered rates, and specifically, the risk that the London Interbank Offer Rate (LIBOR) will no longer be used. Regulators have begun reference rate reform initiatives to identify alternative reference rates that are more observable or transaction-based and less susceptible to manipulation. ASU 2020-04 provides temporary optional expedients to GAAP guidance on contract modifications, hedge accounting, and other transactions that reference LIBOR or another reference rate expected to be discontinued. As the guidance in ASU 2020-04 is intended to assist entities during the global market-wide reference rate transition period, it is in effect for a limited time, from March 12, 2020 through December 31, 2022. Management is currently evaluating the impact of the potential discontinuance of LIBOR, and a determination cannot be made at this time as to the impact that the amendments of ASU 2020-04 or the reference rate reform will have on the Company’s consolidated financial statements. ASU 2019-12, Issued in December 2019, ASU 2019-12 seeks to simplify the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also simplify GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The Company intends to adopt the amendments in ASU 2019-12 on January 1, 2021. Adoption of ASU 2019-12 is not expected to have a material impact on the Company’s consolidated financial statements. ASU 2017-04, 350 Issued in January 2017, ASU 2017-04 simplifies the manner in which an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit’s goodwill with the carrying amount of that goodwill. In computing the implied fair value of goodwill under Step 2, an entity, prior to the amendments in ASU 2017-04, had to perform procedures to determine the fair value at the impairment testing date of its assets and liabilities, including unrecognized assets and liabilities, in accordance with the procedure that would be required in determining the fair value of assets acquired and liabilities assumed in a business combination. However, under the amendments in ASU 2017-04, an entity should (1) perform its annual or interim goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount, and (2) recognize an impairment charge for the amount by which the carrying amount exceeds the reporting unit’s fair value, with the understanding that the loss recognized should not exceed the total amount of goodwill allocated to that reporting unit. Additionally, ASU 2017-04 removes the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails such qualitative test, to perform Step 2 of the goodwill impairment test. As originally issued, ASU 2017-04 was effective prospectively for annual, or any interim, goodwill impairment tests in fiscal years beginning after December 15, 2019. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2017-04 by three years for smaller reporting companies, including the Company. Management is currently evaluating the impact that this ASU will have on the Company’s consolidated financial statements ASU 2016 13, .” Issued in June 2016, ASU 2016-13 removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance removes all current recognition thresholds and requires companies to recognize an allowance for lifetime expected credit losses. Credit losses will be immediately recognized through net income; the amount recognized will be based on the current estimate of contractual cash flows not expected to be collected over the financial asset’s contractual term. ASU 2016-13 also amends the credit loss measurement guidance for available-for-sale debt securities. The standard will add new disclosures related to factors that influenced management’s estimate, including current expected credit losses, the changes in those factors and reasons for the changes, as well as the method applied to revert to historical credit loss experience. As originally issued, ASU 2016-13 was effective for financial statements issued for fiscal years and for interim periods within those fiscal years beginning after December 15, 2019, with institutions required to apply the changes through a cumulative-effect adjustment to their retained earnings balance as of the beginning of the first reporting period in which the guidance is effective. On October 16, 2019, the FASB approved a delay in the implementation of ASU 2016-13 by three years for smaller reporting companies, including the Company. Management has been in the process of developing a revised model to calculate the allowance for loan and lease losses upon implementation of ASU 2016-13 in order to determine the impact on the Company’s consolidated financial statements and, at this time, expects to recognize a one-time cumulative effect adjustment to the allowance for loan and lease losses as of the beginning of the first reporting period in which the new standard is effective. The magnitude of any such one-time adjustment is not yet known. |
Revenue | On January 1, 2018, the Company implemented ASU Revenue from Contracts with Customers All of the Company’s revenue that is subject to ASC Topic 606 is included in non-interest income; however, not all non-interest income is subject to ASC Topic 606. Revenue earned by the Company that is subject to ASC Topic 606 primarily consists of service and other charges on deposit accounts, mortgage fees from secondary market transactions at the Bank, ATM fee income and other non-interest income. Revenue generated from these sources for both of the three-month periods ended March 31, 2020 and 2019 was $0.7 million. All sources of the Company’s revenue subject to ASC Topic 606 are transaction-based, and revenue is recognized at the time at which the transaction is executed, which is the same time at which the Company’s performance obligation is satisfied. The Company had no contract liabilities or unsatisfied performance obligations with customers as of March 31, 2020. |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table reflects weighted average shares used to calculate basic and diluted net income per share for the periods presented. Three Months Ended March 31, 2020 2019 Basic shares 6,280,593 6,418,242 Dilutive shares 422,000 444,101 Diluted shares 6,702,593 6,862,343 Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Net income $ 847 $ 1,234 Basic net income per share $ 0.13 $ 0.19 Diluted net income per share $ 0.13 $ 0.18 |
Investment Securities (Tables)
Investment Securities (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale and Held-to-Maturity | Details of investment securities available-for-sale and held-to-maturity as of March 31, 2020 and December 31, 2019 were as follows: Available-for-Sale March 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 42,525 $ 589 $ (12 ) $ 43,102 Commercial 48,624 379 (263 ) 48,740 Obligations of states and political subdivisions 3,872 80 — 3,952 Corporate notes 666 — — 666 U.S. Treasury securities 81 — — 81 Total $ 95,768 $ 1,048 $ (275 ) $ 96,541 Held-to-Maturity March 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 8,158 $ 89 $ — $ 8,247 Obligations of U.S. government-sponsored agencies 4,309 34 — 4,343 Obligations of states and political subdivisions 1,071 — (16 ) 1,055 Total $ 13,538 $ 123 $ (16 ) $ 13,645 Available-for-Sale December 31, 2019 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 46,182 $ 372 $ (209 ) $ 46,345 Commercial 43,686 73 (386 ) 43,373 Obligations of states and political subdivisions 4,123 95 — 4,218 U.S. Treasury securities 80 — — 80 Total $ 94,071 $ 540 $ (595 ) $ 94,016 Held-to-Maturity December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 8,923 $ 2 $ (46 ) $ 8,879 Obligations of U.S. government-sponsored agencies 4,324 5 (10 ) 4,319 Obligations of states and political subdivisions 1,093 15 — 1,108 Total $ 14,340 $ 22 $ (56 ) $ 14,306 |
Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of investment securities available-for-sale and held-to-maturity as of March 31, 2020 are presented in the following table: Available-for-Sale Held-to-Maturity Amortized Cost Estimated Fair Value Amortized Cost Estimated Fair Value (Dollars in Thousands) Maturing within one year $ 1,601 $ 1,621 $ 40 $ 40 Maturing after one to five years 15,561 15,706 766 750 Maturing after five to ten years 43,163 43,770 6,852 6,891 Maturing after ten years 35,443 35,444 5,880 5,964 Total $ 95,768 $ 96,541 $ 13,538 $ 13,645 |
Schedule of Unrealized Loss on Investments | 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 March 31, 2020 and December 31, 2019. Available-for-Sale March 31, 2020 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Residential $ 576 $ (2 ) $ 4,865 $ (10 ) Commercial 7,066 — 4,701 (263 ) Corporate notes 666 — — — U.S. Treasury securities 80 — — — Total $ 8,388 $ (2 ) $ 9,566 $ (273 ) Held-to-Maturity March 31, 2020 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Obligations of states and political subdivisions 750 (16 ) — — Total $ 750 $ (16 ) $ — $ — Available-for-Sale December 31, 2019 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Residential $ 17,340 $ (66 ) $ 10,094 $ (143 ) Commercial 3,794 (25 ) 29,754 (361 ) U.S. Treasury securities 80 — — — Total $ 21,214 $ (91 ) $ 39,848 $ (504 ) Held-to-Maturity December 31, 2019 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Commercial $ 685 $ — $ 6,405 $ (46 ) Obligations of U.S. government-sponsored agencies 846 (4 ) 2,994 (6 ) Total $ 1,531 $ (4 ) $ 9,399 $ (52 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Allowance For Loan And Lease Losses Writeoffs Net [Abstract] | |
Schedule of Loan Portfolio | As of March 31, 2020 and December 31, 2019, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: March 31, 2020 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 31,927 $ — $ 31,927 Secured by 1-4 family residential properties 95,166 5,020 100,186 Secured by multi-family residential properties 44,029 — 44,029 Secured by non-farm, non-residential properties 156,222 — 156,222 Commercial and industrial loans (1) 80,771 — 80,771 Consumer loans: Direct consumer 7,839 28,468 36,307 Branch retail — 31,568 31,568 Indirect sales (2) 69,982 — 69,982 Total loans 485,936 65,056 550,992 Less: Unearned interest, fees and deferred cost 257 5,096 5,353 Allowance for loan losses 4,068 1,886 5,954 Net loans $ 481,611 $ 58,074 $ 539,685 December 31, 2019 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 30,820 $ — $ 30,820 Secured by 1-4 family residential properties 98,971 5,566 104,537 Secured by multi-family residential properties 50,910 — 50,910 Secured by non-farm, non-residential properties 162,981 — 162,981 Commercial and industrial loans (1) 90,957 — 90,957 Consumer loans: Direct consumer 7,816 30,224 38,040 Branch retail — 32,305 32,305 Indirect sales (2) — 45,503 45,503 Total loans 442,455 113,598 556,053 Less: Unearned interest, fees and deferred cost 262 4,786 5,048 Allowance for loan losses 3,483 2,279 5,762 Net loans $ 438,710 $ 106,533 $ 545,243 (1) Includes equipment financing leases. (2) Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect sales portfolio from ALC to the Bank. |
Summary of Acquired Loans | The carrying amount of PCI loans, which is included within loans on the balance sheet, is set forth in the table below as of March 31, 2020 and December 31, 2019: March 31, 2020 December 31, 2019 (Dollars in Thousands) Real estate loans: Secured by 1-4 family residential properties $ 219 $ 224 Outstanding balance 219 224 Fair value adjustment (48 ) (49 ) Carrying amount, net of fair value adjustment $ 171 $ 175 |
Allowance for Loan Losses | The following tables present changes in the allowance for loan losses during the three months ended March 31, 2020 and 2019 and the related loan balances by loan type as of March 31, 2020 and 2019: As of and for the Three Months Ended March 31, 2020 Construction, Land Development, and Other 1-4 Family Real Estate Multi- Family Non- Farm Non- Residential Commercial and Industrial Direct Consumer Branch Retail Indirect Sales Total (Dollars in Thousands) Allowance for loan losses: Beginning balance $ 197 $ 466 $ 422 $ 964 $ 1,377 $ 1,625 $ 395 $ 316 $ 5,762 Charge-offs — (20 ) — — — (492 ) (142 ) — (654 ) Recoveries — 12 — 5 — 205 44 — 266 Provision 68 67 16 217 (612 ) 169 142 513 580 Ending balance $ 265 $ 525 $ 438 $ 1,186 $ 765 $ 1,507 $ 439 $ 829 $ 5,954 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 14 $ — $ — $ 63 $ 3 $ — $ — $ 80 Collectively evaluated for impairment 265 511 438 1,186 702 1,504 439 829 5,874 Total allowance for loan losses $ 265 $ 525 $ 438 $ 1,186 $ 765 $ 1,507 $ 439 $ 829 $ 5,954 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 789 $ — $ 2,754 $ 63 $ 26 $ — $ — $ 3,632 Collectively evaluated for impairment 31,927 99,226 44,029 153,468 80,708 36,281 31,568 69,982 547,189 Loans acquired with deteriorated credit quality — 171 — — — — — — 171 Total loans receivable $ 31,927 $ 100,186 $ 44,029 $ 156,222 $ 80,771 $ 36,307 $ 31,568 $ 69,982 $ 550,992 As of and for the Three Months Ended March 31, 2019 Construction, Land Development, and Other 1-4 Family Real Estate Multi- Family Non- Farm Non- Residential Commercial and Industrial Direct Consumer Branch Retail Indirect Sales Total (Dollars in Thousands) Allowance for loan losses: Beginning balance $ 241 $ 346 $ 128 $ 831 $ 1,138 $ 1,799 $ 427 $ 145 $ 5,055 Charge-offs — (53 ) — — — (536 ) (98 ) (52 ) (739 ) Recoveries — 9 — — 1 173 25 — 208 Provision (59 ) 79 32 (58 ) 44 232 55 75 400 Ending balance $ 182 $ 381 $ 160 $ 773 $ 1,183 $ 1,668 $ 409 $ 168 $ 4,924 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ 98 $ 16 $ — $ — $ 66 $ 16 $ — $ — $ 196 Collectively evaluated for impairment 84 365 160 773 1,117 1,652 409 168 4,728 Total allowance for loan losses $ 182 $ 381 $ 160 $ 773 $ 1,183 $ 1,668 $ 409 $ 168 $ 4,924 Ending balance of loans receivable: Individually evaluated for impairment $ 421 $ 919 $ — $ 510 $ 66 $ 38 $ — $ — $ 1,954 Collectively evaluated for impairment 27,520 105,885 27,602 156,513 87,799 36,254 27,066 42,280 510,919 Loans acquired with deteriorated credit quality 73 187 — — — — — — 260 Total loans receivable $ 28,014 $ 106,991 $ 27,602 $ 157,023 $ 87,865 $ 36,292 $ 27,066 $ 42,280 $ 513,133 |
Loans By Credit Quality Indicators | The tables below illustrate the carrying amount of loans by credit quality indicator as of March 31, 2020: March 31, 2020 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 31,849 $ 78 $ — $ 31,927 Secured by multi-family residential properties 44,029 — — 44,029 Secured by non-farm, non-residential properties 151,142 2,814 2,266 156,222 Commercial and industrial loans 79,554 747 470 80,771 Total $ 306,574 $ 3,639 $ 2,736 $ 312,949 March 31, 2020 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 98,051 $ 2,135 $ 100,186 Consumer loans: Direct consumer 35,765 542 36,307 Branch retail 31,332 236 31,568 Indirect sales 69,952 30 69,982 Total $ 235,100 $ 2,943 $ 238,043 The above amounts include PCI loans. As of March 31, 2020, $0.2 million of PCI loans were classified as “Nonperforming.” The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2019: December 31, 2019 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 30,466 $ 354 $ — $ 30,820 Secured by multi-family residential properties 50,910 — — 50,910 Secured by non-farm, non-residential properties 157,718 2,961 2,302 162,981 Commercial and industrial loans 88,463 714 1,780 90,957 Total $ 327,557 $ 4,029 $ 4,082 $ 335,668 December 31, 2019 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 102,176 $ 2,361 $ 104,537 Consumer loans: Direct consumer 37,474 566 38,040 Branch retail 32,024 281 32,305 Indirect sales 45,503 — 45,503 Total $ 217,177 $ 3,208 $ 220,385 |
Aging Analysis of Past Due Loans | The following table provides an aging analysis of past due loans by class as of March 31, 2020: As of March 31, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days And Accruing (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — $ — $ — $ — $ 31,927 $ 31,927 $ — Secured by 1-4 family residential properties 588 35 127 750 99,436 100,186 — Secured by multi-family residential properties — — — — 44,029 44,029 — Secured by non-farm, non-residential properties 200 — 1,416 1,616 154,606 156,222 — Commercial and industrial loans 1,266 378 — 1,644 79,127 80,771 — Consumer loans: Direct consumer 318 273 542 1,133 35,174 36,307 — Branch retail 252 122 237 611 30,957 31,568 — Indirect sales 261 19 30 310 69,672 69,982 — Total $ 2,885 $ 827 $ 2,352 $ 6,064 $ 544,928 $ 550,992 $ — The above amounts include PCI loans. As of March 31, 2020, $0.2 million of PCI loans were 60-89 days past due. The following table provides an aging analysis of past due loans by class as of December 31, 2019: As of December 31, 2019 30-59 Days Past Due 60-89 Days Past Due 90 Days Or Greater Total Past Due Current Total Loans Recorded Investment > 90 Days And Accruing (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ — $ — $ — $ — $ 30,820 $ 30,820 $ — Secured by 1-4 family residential properties 259 108 844 1,211 103,326 104,537 — Secured by multi-family residential properties — — — — 50,910 50,910 — Secured by non-farm, non-residential properties 30 — 1,419 1,449 161,532 162,981 — Commercial and industrial loans 56 — — 56 90,901 90,957 — Consumer loans: Direct consumer 387 287 531 1,205 36,835 38,040 — Branch retail 444 189 281 914 31,391 32,305 — Indirect sales 132 — — 132 45,371 45,503 — Total $ 1,308 $ 584 $ 3,075 $ 4,967 $ 551,086 $ 556,053 $ — The above amounts include PCI loans. As of December 31, 2019, $0.2 million of PCI loans were 60-89 days past due. |
Non-accruing Loans | The following table provides an analysis of non-accruing loans by class as of March 31, 2020 and December 31, 2019: Loans on Non-Accrual Status March 31, 2020 December 31, 2019 (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 8 $ 8 Secured by 1-4 family residential properties 1,372 1,423 Secured by multi-family residential properties — — Secured by non-farm, non-residential properties 1,423 1,426 Commercial and industrial loans 72 27 Consumer loans: Direct consumer 553 558 Branch retail 237 281 Indirect sales 30 — Total loans $ 3,695 $ 3,723 |
Summarizes of All COVID19 Loan Payment Deferment and the Percentage of Loans | The table below summarizes all COVID-19 loan payment deferments made by the Company through April 30, 2020 and the percentages of these loans respective to the related portfolio balances as of March 31, 2020. As of April 30, 2020 Number of Loans Deferred Principal Balance of Loans Deferred % of Portfolio Balance as of March 31, 2020 Principal and Interest Deferments Principal Only Deferments (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans 3 $ 16,666 52.2 % $ 9,513 $ 7,153 Secured by 1-4 family residential properties 71 11,549 11.5 % 9,368 2,181 Secured by multi-family residential properties 11 24,482 55.6 % 5,421 19,061 Secured by non-farm, non-residential properties 53 49,851 31.9 % 45,575 4,276 Commercial and industrial loans 12 1,645 2.0 % 1,255 390 Consumer loans: Direct consumer 830 3,774 10.4 % 3,774 — Branch retail 283 2,825 8.9 % 2,825 — Indirect sales 170 4,198 6.0 % 4,198 — Total loans 1,433 $ 114,990 20.9 % $ 81,929 $ 33,061 |
Summarizes the At Risk Categories and the Relative Percentage of the Loan Portfolio | The table below summarizes the “at-risk” categories and the relative percentage of the Company’s loan portfolio for each as of March 31, 2020. March 31, 2020 At-Risk Loan Category Due to COVID-19 Balance of Risk Category % of Total Loan Balance (Dollars in Thousands) High-risk loan categories: Hotels/motels $ 10,479 1.9 % Dine-in restaurants 4,508 0.8 % Total high-risk loans 14,987 2.7 % Moderate-risk loan categories: Fast food restaurants 5,067 0.9 % Retail 34,073 6.2 % 1-4 family investment 25,620 4.7 % Total moderate-risk loans 64,760 11.8 % Total at-risk loans $ 79,747 14.5 % |
Impaired Loans | As of March 31, 2020, the carrying amount of the Company’s impaired loans consisted of the following: March 31, 2020 Carrying Amount Unpaid Principal Balance Related Allowances (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 940 940 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,754 2,754 — Commercial and industrial — — — Direct consumer — — — Total loans with no related allowance recorded $ 3,694 $ 3,694 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 20 20 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 63 63 63 Direct consumer 26 26 3 Total loans with an allowance recorded $ 109 $ 109 $ 80 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 960 960 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,754 2,754 — Commercial and industrial 63 63 63 Direct consumer 26 26 3 Total impaired loans $ 3,803 $ 3,803 $ 80 The above amounts include PCI loans. As of March 31, 2020, PCI loans comprised $0.2 million of impaired loans without a related allowance recorded. As of December 31, 2019, the carrying amount of the Company’s impaired loans consisted of the following: December 31, 2019 Carrying Amount Unpaid Principal Balance Related Allowances (Dollars in Thousands) Impaired loans with no related allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 984 984 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,877 1,877 — Commercial and industrial — — — Direct consumer — — — Total loans with no related allowance recorded $ 2,861 $ 2,861 $ — Impaired loans with an allowance recorded Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 21 21 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 206 206 206 Direct consumer 29 29 7 Total loans with an allowance recorded $ 256 $ 256 $ 227 Total impaired loans Loans secured by real estate . Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 1,005 1,005 14 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,877 1,877 — Commercial and industrial 206 206 206 Direct consumer 29 29 7 Total impaired loans $ 3,117 $ 3,117 $ 227 The average net investment in impaired loans and interest income recognized and received on impaired loans during the three months ended March 31, 2020 and the year ended December 31, 2019 were as follows: Three Months Ended March 31, 2020 Average Recorded Investment Interest Income Recognized Interest Income Received (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 902 2 2 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,757 — — Commercial and industrial 110 2 2 Direct consumer 27 1 1 Total $ 3,796 $ 5 $ 5 Year Ended December 31, 2019 Average Recorded Investment Interest Income Recognized Interest Income Received (Dollars in Thousands) Loans secured by real estate Construction, land development and other land loans $ 181 $ — $ — Secured by 1-4 family residential properties 1,021 48 48 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 645 29 29 Commercial and industrial 991 7 7 Direct consumer 38 2 2 Total $ 2,876 $ 86 $ 86 |
Loans Modified in a Troubled Debt Restructuring | The following table provides, as of March 31, 2020 and December 31, 2019, the number of loans remaining in each loan category that the Company had previously modified in a troubled debt restructuring, as well as the pre- and post-modification principal balance as of each date. March 31, 2020 December 31, 2019 Number of Loans Pre- Modification Outstanding Principal Balance Post- Modification Principal Balance Number of Loans Pre- Modification Outstanding Principal Balance Post- Modification Principal Balance (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans 1 $ 107 $ 59 1 $ 107 $ 62 Secured by 1-4 family residential properties 2 59 12 2 59 14 Commercial loans 2 116 58 2 116 60 Total 5 $ 282 $ 129 5 $ 282 $ 136 |
Other Real Estate Owned and R_2
Other Real Estate Owned and Repossessed Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Real Estate [Abstract] | |
Summary of Foreclosed Property Activity | Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the three months ended March 31, 2020 and 2019: March 31, 2020 March 31, 2019 (Dollars in Thousands) Beginning balance $ 1,078 $ 1,505 Additions (1) 18 121 Sales proceeds (37 ) (374 ) Gross gains 5 29 Gross losses — (21 ) Net gains 5 8 Impairment (10 ) (38 ) Ending balance $ 1,054 $ 1,222 (1) Additions to other real estate owned (“OREO”) include transfers from loans and capitalized improvements to existing OREO properties. |
Summary of Repossessed Assets Activity | The following table summarizes repossessed asset activity as of the three months ended March 31, 2020 and 2019: March 31, 2020 March 31, 2019 (Dollars in Thousands) Beginning balance $ 256 $ 229 Transfers from loans 317 146 Sales proceeds (153 ) (83 ) Gross gains — 2 Gross losses (166 ) (92 ) Net losses (166 ) (90 ) Impairment — — Ending balance $ 254 $ 202 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The Company’s goodwill and other intangibles (carrying basis and accumulated amortization) as of March 31, 2020 were as follows: March 31, 2020 (Dollars in Thousands) Goodwill $ 7,435 Core deposit intangible: Gross carrying amount 2,048 Accumulated amortization (768 ) Core deposit intangible, net 1,280 Total $ 8,715 |
Schedule of Estimated Remaining Amortization Expense | The Company’s estimated remaining amortization expense on intangibles as of March 31, 2020 was as follows: Amortization Expense (Dollars in Thousands) 2020 $ 305 2021 341 2022 268 2023 195 2024 122 2025 49 Total $ 1,280 |
Stock Awards (Tables)
Stock Awards (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Schedule of Fair Value Assumptions | The fair value of outstanding awards was determined using the Black-Scholes option pricing model based on the assumptions noted in the table below. Expected volatilities are based on historical volatilities of the Company’s common stock. 2020 2019 Risk-free interest rate 1.24 % 2.59 % Expected term (in years) 7.5 7.5 Expected stock price volatility 28.9 % 30.9 % Dividend yield 1.25 % 1.25 % Fair value of stock option 3.34 3.30 |
Stock Option Activity | The following table summarizes the Company’s stock option activity for the periods presented. Three Months Ended March 31, 2020 March 31, 2019 Number of Shares Average Exercise Price Number of Shares Average Exercise Price Options: Outstanding, beginning of period 412,800 $ 9.72 377,950 $ 9.80 Granted 10,200 11.95 66,150 10.01 Exercised 666 10.75 — — Expired — — — — Forfeited 334 10.75 — — Options outstanding, end of period 422,000 $ 9.77 444,100 $ 9.83 Options exercisable, end of period 352,517 $ 9.58 312,783 $ 9.25 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | Location in the Condensed Three Months Ended Consolidated Statements of Operations March 31, 2020 March 31, 2019 (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 211 $ 210 Operating lease income (2) Other income, net $ 212 $ 209 Location in the Condensed Consolidated Balance Sheet March 31, 2020 (Dollars in Thousands) Operating lease right-of-use assets Other assets $ 3,377 Operating lease liabilities Other liabilities $ 3,414 Weighted-average remaining lease term (in years) 6.51 Weighted-average discount rate 3.16 % Three Months Ended March 31, 2020 March 31, 2019 (Dollars in Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 188 $ 192 |
Future Minimum Operating Lease Payments | Minimum Rental Payments (Dollars in Thousands) 2020 $ 524 2021 609 2022 539 2023 453 2024 438 2025 and thereafter 1,276 Total future minimum lease payments $ 3,839 Less: Imputed interest 425 Total operating lease liabilities $ 3,414 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule Of Cumulative Basis Adjustments For Fair Value Hedges | The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges: Location in the Condensed Consolidated Balance Sheet in Which the Hedged Carrying Amount of the Hedged Assets Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets Item is Included March 31, 2020 (Dollars in Thousands) Loans and leases, net of allowance for loan and lease losses (1) $ 56,885 $ 749 (1) These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of March 31, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $56.1 million, the cumulative basis adjustments associated with these hedging relationships was $0.7 million, and the amounts of the designated hedged items were $20 million. |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting Disclosure Of Entitys Reportable Segments [Abstract] | |
Schedule of Segment Reporting Information, by Segment | The results for the two reportable segments of the Company are included in the tables below. All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2020: Net interest income $ 6,480 $ 2,400 $ 6 $ — $ 8,886 Provision for loan losses 248 332 — — 580 Total non-interest income 1,094 237 1,234 (1,268 ) 1,297 Total non-interest expense 6,156 2,169 356 (187 ) 8,494 Income before income taxes 1,170 136 884 (1,081 ) 1,109 Provision for income taxes 274 51 (63 ) — 262 Net income $ 896 $ 85 $ 947 $ (1,081 ) $ 847 Other significant items: Total assets $ 791,302 $ 61,503 $ 89,897 $ (154,137 ) $ 788,565 Total investment securities 109,998 — 81 — 110,079 Total loans, net 535,188 58,074 — (53,577 ) 539,685 Goodwill and core deposit intangible, net 8,715 — — — 8,715 Investment in subsidiaries — — 83,680 (83,680 ) — Fixed asset additions 219 14 — — 233 Depreciation and amortization expense 366 33 — — 399 Total interest income from external customers 7,257 3,140 — — 10,397 Total interest income from affiliates 740 — 6 (746 ) — All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended March 31, 2019: Net interest income $ 6,009 $ 3,158 $ 6 $ — $ 9,173 Provision for loan losses — 400 — — 400 Total non-interest income 1,078 219 1,581 (1,613 ) 1,265 Total non-interest expense 5,833 2,368 427 (175 ) 8,453 Income before income taxes 1,254 609 1,160 (1,438 ) 1,585 Provision for income taxes 262 143 (54 ) — 351 Net income $ 992 $ 466 $ 1,214 $ (1,438 ) $ 1,234 Other significant items: Total assets $ 796,876 $ 102,780 $ 86,977 $ (191,299 ) $ 795,334 Total investment securities 147,947 — 78 — 148,025 Total loans, net 492,895 98,902 — (89,037 ) 502,760 Goodwill and core deposit intangible, net 9,184 — — — 9,184 Investment in subsidiaries 5 — 81,236 (81,236 ) 5 Fixed asset additions 1,677 14 — — 1,691 Depreciation and amortization expense 367 33 — — 400 Total interest income from external customers 6,493 4,319 1 — 10,813 Total interest income from affiliates 1,161 — 5 (1,166 ) — |
Other Operating Income and Ex_2
Other Operating Income and Expense (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Other Income And Expenses [Abstract] | |
Other Operating Income | Other operating income for the three months ended March 31, 2020 and 2019 consisted of the following: Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Bank-owned life insurance $ 108 $ 106 Auto Club revenue 35 38 ATM fee income 100 104 Wire transfer fees 13 11 Other income 115 78 Total $ 371 $ 337 |
Other Operating Expense | Other Operating Expense Other operating expense for the three months ended March 31, 2020 and 2019 consisted of the following: Three Months Ended March 31, 2020 2019 (Dollars in Thousands, Except Per Share Data) Postage, stationery and supplies $ 214 $ 238 Telephone/data communication 223 213 Advertising and marketing 44 34 Travel and business development 126 111 Collection and recoveries 85 80 Other services 91 72 Insurance expense 162 162 FDIC insurance and state assessments 80 119 Gain or loss on sale of fixed assets 166 85 Core deposit intangible amortization 110 128 Other real estate/foreclosure expense, net 19 58 Other expense 342 483 Total $ 1,662 $ 1,783 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Commitment and Contingent Liabilities | A summary of these commitments and contingent liabilities is presented below: March 31, 2020 December 31, 2019 (Dollars in Thousands) Standby letters of credit $ 180 $ 180 Standby performance letters of credit $ 647 $ 647 Commitments to extend credit $ 109,308 $ 96,967 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents assets and liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019. There were no liabilities measured at fair value on a recurring basis as of December 31, 2019. Fair Value Measurements as of March 31, 2020 Using Totals At March 31, 2020 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 43,102 $ — $ 43,102 $ — Commercial 48,740 — 48,740 — Obligations of states and political subdivisions 3,952 — 3,952 — Corporate notes 666 — 666 — U.S. Treasury securities 81 — 81 — Other liabilities - derivatives 2,541 — 2,541 — Fair Value Measurements as of December 31, 2019 Using Totals At December 31, 2019 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Investment securities, available-for-sale Mortgage-backed securities: Residential $ 46,345 $ — $ 46,345 $ — Commercial 43,373 — 43,373 — Obligations of states and political subdivisions 4,218 — 4,218 — U.S. Treasury securities 80 — 80 — Other assets - derivatives 301 — 301 — |
Fair Value Assets Measured on Nonrecurring Basis | The following table presents the balances of impaired loans, OREO and assets held-for-sale measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019: Fair Value Measurements as of March 31, 2020 Using Totals At March 31, 2020 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Impaired loans $ 29 $ — $ — $ 29 OREO 1,054 — — 1,054 Assets held-for-sale 198 — — 198 Fair Value Measurements as of December 31, 2019 Using Totals At December 31, 2019 Quoted Prices in Active Markets For Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in Thousands) Impaired loans $ 29 $ — $ — $ 29 OREO 1,078 — — 1,078 Assets held-for-sale 198 — — 198 |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques | The following table presents information regarding assets and liabilities measured at fair value using significant unobservable inputs (Level 3) as of March 31, 2020. The table includes the valuation techniques and the significant unobservable inputs utilized. The range of each unobservable input and the weighted average within the range utilized as of March 31, 2020 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 March 31, 2020 Valuation Technique Unobservable Input Quantitative Range of Unobservable Inputs (Weighted Average) (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 29 Multiple data points, including discount to appraised value of collateral based on recent market activity Appraisal comparability adjustment (discount) 9%-10% (9.5%) OREO $ 1,054 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9%-10% (9.5%) Assets held-for-sale $ 198 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9%-10% (9.5%) |
Fair Value, by Balance Sheet Grouping | The estimated fair value and related carrying or notional amounts, as well as the level within the fair value hierarchy, of the Company’s financial instruments as of March 31, 2020 and December 31, 2019 were as follows: March 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 56,121 $ 56,121 $ 56,121 $ — $ — Investment securities available-for-sale 96,541 96,541 — 96,541 — Investment securities held-to-maturity 13,538 13,645 — 13,645 — Federal funds sold 15,080 15,080 — 15,080 — Federal Home Loan Bank stock 1,135 1,135 — — 1,135 Loans, net of allowance for loan losses 539,685 542,410 — — 542,410 Liabilities: Deposits 682,595 668,433 — 668,433 — Short-term borrowings 10,152 10,152 — 10,152 — Other liabilities - derivatives 2,541 2,541 — 2,541 — December 31, 2019 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 57,030 $ 57,030 $ 57,030 $ — $ — Investment securities available-for-sale 94,016 94,016 — 94,016 — Investment securities held-to-maturity 14,340 14,306 — 14,306 — Federal funds sold 10,080 10,080 — 10,080 — Federal Home Loan Bank stock 1,137 1,137 — — 1,137 Loans, net of allowance for loan losses 545,243 559,911 — — 559,911 Other assets - derivatives 301 301 — 301 — Liabilities: Deposits 683,662 682,828 — 682,828 — Short-term borrowings 10,025 10,025 — 10,025 — |
General - Additional Informatio
General - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Basis of Presentation - Basic a
Basis of Presentation - Basic and Diluted Net Income Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share Basic And Diluted [Abstract] | ||
Basic shares | 6,280,593 | 6,418,242 |
Dilutive shares | 422,000 | 444,101 |
Diluted shares | 6,702,593 | 6,862,343 |
Net income | $ 847 | $ 1,234 |
Basic net income per share | $ 0.13 | $ 0.19 |
Diluted net income per share | $ 0.13 | $ 0.18 |
Investment Securities - Availab
Investment Securities - Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | $ 95,768 | $ 94,071 |
Available-for-sale, gross unrealized gains | 1,048 | 540 |
Available-for-sale, gross unrealized losses | (275) | (595) |
Investment securities available-for-sale, at fair value | 96,541 | 94,016 |
Held-to-maturity, amortized cost | 13,538 | 14,340 |
Held-to-maturity, gross unrealized gains | 123 | 22 |
Held-to-maturity, gross unrealized losses | (16) | (56) |
Held-to-maturity, estimated fair value | 13,645 | 14,306 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 42,525 | 46,182 |
Available-for-sale, gross unrealized gains | 589 | 372 |
Available-for-sale, gross unrealized losses | (12) | (209) |
Investment securities available-for-sale, at fair value | 43,102 | 46,345 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 48,624 | 43,686 |
Available-for-sale, gross unrealized gains | 379 | 73 |
Available-for-sale, gross unrealized losses | (263) | (386) |
Investment securities available-for-sale, at fair value | 48,740 | 43,373 |
Held-to-maturity, amortized cost | 8,158 | 8,923 |
Held-to-maturity, gross unrealized gains | 89 | 2 |
Held-to-maturity, gross unrealized losses | (46) | |
Held-to-maturity, estimated fair value | 8,247 | 8,879 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 3,872 | 4,123 |
Available-for-sale, gross unrealized gains | 80 | 95 |
Investment securities available-for-sale, at fair value | 3,952 | 4,218 |
Held-to-maturity, amortized cost | 1,071 | 1,093 |
Held-to-maturity, gross unrealized gains | 15 | |
Held-to-maturity, gross unrealized losses | (16) | |
Held-to-maturity, estimated fair value | 1,055 | 1,108 |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 666 | |
Investment securities available-for-sale, at fair value | 666 | |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 81 | 80 |
Investment securities available-for-sale, at fair value | 81 | 80 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Held-to-maturity, amortized cost | 4,309 | 4,324 |
Held-to-maturity, gross unrealized gains | 34 | 5 |
Held-to-maturity, gross unrealized losses | (10) | |
Held-to-maturity, estimated fair value | $ 4,343 | $ 4,319 |
Investment Securities - Schedul
Investment Securities - Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale, maturing within one year, amortized cost | $ 1,601 | |
Available-for-sale, maturing after one to five years, amortized cost | 15,561 | |
Available-for-sale, maturing after five to ten years, amortized cost | 43,163 | |
Available-for-sale, maturing after ten years, amortized cost | 35,443 | |
Available-for-sale, amortized cost | 95,768 | $ 94,071 |
Available-for-sale, maturing within one year, estimated fair value | 1,621 | |
Available-for-sale, maturing after one to five years, estimated fair value | 15,706 | |
Available-for-sale, maturing after five to ten years, estimated fair value | 43,770 | |
Available-for-sale, maturing after ten years, estimated fair value | 35,444 | |
Available-for-sale, amortized cost | 96,541 | 94,016 |
Held-to-maturity, maturing within one year, amortized cost | 40 | |
Held-to-maturity, maturing after one to five years, amortized cost | 766 | |
Held-to-maturity, maturing after five to ten years, amortized cost | 6,852 | |
Held-to-maturity, maturing after ten years, amortized cost | 5,880 | |
Held-to-maturity, amortized cost | 13,538 | 14,340 |
Held-to-maturity, maturing within one year, estimated fair value | 40 | |
Held-to-maturity, maturing after one to five years, estimated fair value | 750 | |
Held-to-maturity, maturity after five to ten years, estimated fair value | 6,891 | |
Held-to-maturity, maturing after ten years, estimated fair value | 5,964 | |
Held-to-maturity, amortized cost | $ 13,645 | $ 14,306 |
Investment Securities - Securit
Investment Securities - Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | $ 8,388 | $ 21,214 |
Available-for-sale, less than 12 months, unrealized losses | (2) | (91) |
Available-for-sale, 12 months or more, fair value | 9,566 | 39,848 |
Available-for-sale, 12 months or more, unrealized losses | (273) | (504) |
Held-to-maturity, less than 12 months, fair value | 750 | 1,531 |
Held-to-maturity, less than 12 months, unrealized losses | (16) | (4) |
Held-to-maturity, 12 months or more, fair value | 9,399 | |
Held-to-maturity, 12 months or more, unrealized losses | (52) | |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 576 | 17,340 |
Available-for-sale, less than 12 months, unrealized losses | (2) | (66) |
Available-for-sale, 12 months or more, fair value | 4,865 | 10,094 |
Available-for-sale, 12 months or more, unrealized losses | (10) | (143) |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 7,066 | 3,794 |
Available-for-sale, less than 12 months, unrealized losses | (25) | |
Available-for-sale, 12 months or more, fair value | 4,701 | 29,754 |
Available-for-sale, 12 months or more, unrealized losses | (263) | (361) |
Held-to-maturity, less than 12 months, fair value | 685 | |
Held-to-maturity, 12 months or more, fair value | 6,405 | |
Held-to-maturity, 12 months or more, unrealized losses | (46) | |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 666 | |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 80 | 80 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Held-to-maturity, less than 12 months, fair value | 750 | |
Held-to-maturity, less than 12 months, unrealized losses | $ (16) | |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Held-to-maturity, less than 12 months, fair value | 846 | |
Held-to-maturity, less than 12 months, unrealized losses | (4) | |
Held-to-maturity, 12 months or more, fair value | 2,994 | |
Held-to-maturity, 12 months or more, unrealized losses | $ (6) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | |
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 | 18 | 69 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 14 | 35 |
Other than temporary impairment loss debt securities available for sale interest rate | 1.50% | |
Other than Temporary Impairment Losses, Investments, Portion Recognized in Earnings, Net, Total | $ 0 | $ 0 |
Debt Securities, Available-for-sale, Restricted | $ 62,200,000 | $ 51,700,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | |||
Loans | $ 550,992 | $ 556,053 | |||||
Less: Unearned interest, fees and deferred cost | 5,353 | 5,048 | |||||
Loans, allowance for loan losses | 5,954 | 5,762 | |||||
Net loans | 539,685 | 545,243 | $ 502,760 | ||||
Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 31,927 | ||||||
Loans, allowance for loan losses | 265 | 197 | |||||
Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 100,186 | ||||||
Loans, allowance for loan losses | 525 | 466 | |||||
Secured By Multi family Residential Properties [Member] | |||||||
Loans | 44,029 | ||||||
Loans, allowance for loan losses | 438 | 422 | |||||
Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 156,222 | ||||||
Loans, allowance for loan losses | 1,186 | 964 | |||||
Direct Consumer [Member] | |||||||
Loans | 36,307 | ||||||
Branch Retail [Member] | |||||||
Loans | 31,568 | ||||||
Indirect Sales [Member] | |||||||
Loans | 69,982 | ||||||
FUSB [Member] | |||||||
Loans | 485,936 | 442,455 | 513,133 | ||||
Less: Unearned interest, fees and deferred cost | 257 | 262 | |||||
Loans, allowance for loan losses | 4,068 | 3,483 | 4,924 | $ 5,055 | |||
Net loans | 481,611 | 438,710 | |||||
FUSB [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 28,014 | ||||||
Loans, allowance for loan losses | 182 | 241 | |||||
FUSB [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 106,991 | ||||||
Loans, allowance for loan losses | 381 | 346 | |||||
FUSB [Member] | Secured By Multi family Residential Properties [Member] | |||||||
Loans | 27,602 | ||||||
Loans, allowance for loan losses | 160 | 128 | |||||
FUSB [Member] | Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 157,023 | ||||||
Loans, allowance for loan losses | 773 | 831 | |||||
ALC [Member] | |||||||
Loans | 65,056 | 113,598 | |||||
Less: Unearned interest, fees and deferred cost | 5,096 | 4,786 | |||||
Loans, allowance for loan losses | 1,886 | 2,279 | |||||
Net loans | 58,074 | 106,533 | |||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 31,927 | 30,820 | |||||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 100,186 | 104,537 | |||||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | |||||||
Loans | 44,029 | 50,910 | |||||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 156,222 | 162,981 | |||||
Real Estate [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 31,927 | 30,820 | |||||
Real Estate [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 95,166 | 98,971 | |||||
Real Estate [Member] | FUSB [Member] | Secured By Multi family Residential Properties [Member] | |||||||
Loans | 44,029 | 50,910 | |||||
Real Estate [Member] | FUSB [Member] | Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 156,222 | 162,981 | |||||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 5,020 | 5,566 | |||||
Commercial and Industrial Loans [Member] | |||||||
Loans | [1] | 80,771 | 90,957 | ||||
Loans, allowance for loan losses | 765 | 1,377 | |||||
Commercial and Industrial Loans [Member] | FUSB [Member] | |||||||
Loans | 80,771 | [1] | 90,957 | [1] | 87,865 | ||
Loans, allowance for loan losses | 1,183 | 1,138 | |||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | |||||||
Loans | 36,307 | 38,040 | |||||
Loans, allowance for loan losses | 1,507 | 1,625 | |||||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||||||
Loans | 31,568 | 32,305 | |||||
Loans, allowance for loan losses | 439 | 395 | |||||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | |||||||
Loans | [2] | 69,982 | 45,503 | ||||
Loans, allowance for loan losses | 829 | 316 | |||||
Consumer Portfolio Segment [Member] | FUSB [Member] | Direct Consumer [Member] | |||||||
Loans | 7,839 | 7,816 | 36,292 | ||||
Loans, allowance for loan losses | 1,668 | 1,799 | |||||
Consumer Portfolio Segment [Member] | FUSB [Member] | Branch Retail [Member] | |||||||
Loans | 27,066 | ||||||
Loans, allowance for loan losses | 409 | 427 | |||||
Consumer Portfolio Segment [Member] | FUSB [Member] | Indirect Sales [Member] | |||||||
Loans | 69,982 | [2] | 42,280 | ||||
Loans, allowance for loan losses | $ 168 | $ 145 | |||||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | |||||||
Loans | 28,468 | 30,224 | |||||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | |||||||
Loans | $ 31,568 | 32,305 | |||||
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Sales [Member] | |||||||
Loans | [2] | $ 45,503 | |||||
[1] | Includes equipment financing leases. | ||||||
[2] | Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect sales portfolio from ALC to the Bank. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio (Parenthetical) (Details) $ in Millions | 3 Months Ended |
Dec. 31, 2019USD ($) | |
Receivables [Abstract] | |
Transfer of indirect loan portfolio to bank | $ 45.5 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)LoanContract | Dec. 31, 2019USD ($)Contract | Aug. 31, 2018USD ($) | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans Pledged as Collateral | $ 32,900 | $ 34,600 | |
Loans and Leases Receivable, Related Parties, Ending Balance | 900 | 900 | |
Loans and Leases Receivable, Related Parties, Additions | 0 | 100 | |
Loans and Leases Receivable, Related Parties, Proceeds | 6 | 22,000 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Outstanding Balance, Total | $ 2,900 | ||
Purchased credit impaired loans | $ 2,800 | ||
Certain Loans Acquired in Transfer, Accretable Yield | 0 | 0 | |
Loans and Leases Receivable, Gross, Total | 550,992 | 556,053 | |
Non-accruing loans | $ 3,695 | 3,723 | |
Percentage of loan balance to Major Franchises | 90.00% | ||
Percentage of restaurants loan balance accounted to franchised fast food | 52.00% | ||
Percentage of loan balance accounted to dine in restaurant | 48.00% | ||
Lease term for Contract | 12 months | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 3,700 | 3,700 | |
Financing Receivable, Troubled Debt Restructuring | 100 | 100 | |
Impaired loans with no related allowance recorded, carrying amount | 3,694 | 2,861 | |
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 43 | 41 | |
Interest Income Recorded | 12 | 147 | |
Financing Receivable, Restructuring Recorded Investment With Nonaccrual Status | 13 | 16 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition | $ 0 | $ 0 | |
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | Contract | 0 | 0 | |
Loans, allowance for loan losses | $ 5,954 | $ 5,762 | |
Restructured Loan Modified through Extended Maturity and Payment Schedule Modification [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Financing Receivable, Restructuring Recorded Investment With Nonaccrual Status | 500 | ||
Loans, allowance for loan losses | 1 | 1 | |
Minimum [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans Modified in a Troubled Debt Restructuring, Individually Evaluated for Impairment, Principal Balance, Threshold | 500 | ||
Minimum [Member] | ALC [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 50 | ||
Paycheck Protection Program [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loan, aggregate principal balance | $ 13,600 | ||
Number of loans to small businesses | Loan | 132 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans and Leases Receivable, Gross, Total | $ 2,352 | ||
Financial Asset Acquired With Credit Deterioration [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans and Leases Receivable, Gross, Total | 171 | ||
Non-accruing loans | 200 | 200 | |
Impaired loans with no related allowance recorded, carrying amount | 200 | 200 | |
Financial Asset Acquired With Credit Deterioration [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans and Leases Receivable, Gross, Total | 200 | 200 | |
Financial Asset Acquired With Credit Deterioration [Member] | Substandard [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Loans and Leases Receivable, Gross, Total | $ 200 | $ 200 | |
Real Estate [Member] | |||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||
Percentage of Loan Portfolio | 60.30% | 62.80% |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Acquired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Outstanding balance | $ 219 | $ 224 |
Fair value adjustment | (48) | (49) |
Carrying amount, net of fair value adjustment | 171 | 175 |
Secured by 1-4 Family Residential Properties [Member] | Real Estate [Member] | ||
Outstanding balance | $ 219 | $ 224 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||||
Beginning balance | $ 5,762 | |||||
Charge-offs | (654) | |||||
Recoveries | 266 | |||||
Provision | 580 | $ 400 | ||||
Ending balance | 5,954 | |||||
Individually evaluated for impairment | 80 | |||||
Collectively evaluated for impairment | 5,874 | |||||
Individually evaluated for impairment | 3,632 | |||||
Collectively evaluated for impairment | 547,189 | |||||
Loans acquired with deteriorated credit quality | 550,992 | |||||
Individually evaluated for impairment | 80 | |||||
Collectively evaluated for impairment | 5,874 | |||||
Individually evaluated for impairment | 3,632 | |||||
Collectively evaluated for impairment | 547,189 | |||||
Loans | 550,992 | $ 556,053 | ||||
FUSB [Member] | ||||||
Beginning balance | 3,483 | 5,055 | ||||
Charge-offs | (739) | |||||
Recoveries | 208 | |||||
Provision | 400 | |||||
Ending balance | 4,068 | 4,924 | ||||
Collectively evaluated for impairment | 4,728 | |||||
Individually evaluated for impairment | 1,954 | |||||
Collectively evaluated for impairment | 510,919 | |||||
Loans acquired with deteriorated credit quality | 485,936 | 513,133 | ||||
Collectively evaluated for impairment | 4,728 | |||||
Individually evaluated for impairment | 1,954 | |||||
Collectively evaluated for impairment | 510,919 | |||||
Loans | 485,936 | 513,133 | 442,455 | |||
Financial Asset Acquired With Credit Deterioration [Member] | ||||||
Loans acquired with deteriorated credit quality | 171 | |||||
Loans | 171 | |||||
Financial Asset Acquired With Credit Deterioration [Member] | FUSB [Member] | ||||||
Loans acquired with deteriorated credit quality | 260 | |||||
Loans | 260 | |||||
FUSB [Member] | FUSB [Member] | ||||||
Individually evaluated for impairment | 196 | |||||
Individually evaluated for impairment | 196 | |||||
Construction, Land Development and Other Land Loans [Member] | ||||||
Beginning balance | 197 | |||||
Provision | 68 | |||||
Ending balance | 265 | |||||
Collectively evaluated for impairment | 265 | |||||
Collectively evaluated for impairment | 31,927 | |||||
Loans acquired with deteriorated credit quality | 31,927 | |||||
Collectively evaluated for impairment | 265 | |||||
Collectively evaluated for impairment | 31,927 | |||||
Loans | 31,927 | |||||
Construction, Land Development and Other Land Loans [Member] | FUSB [Member] | ||||||
Beginning balance | 241 | |||||
Provision | (59) | |||||
Ending balance | 182 | |||||
Collectively evaluated for impairment | 84 | |||||
Individually evaluated for impairment | 421 | |||||
Collectively evaluated for impairment | 27,520 | |||||
Loans acquired with deteriorated credit quality | 28,014 | |||||
Collectively evaluated for impairment | 84 | |||||
Individually evaluated for impairment | 421 | |||||
Collectively evaluated for impairment | 27,520 | |||||
Loans | 28,014 | |||||
Construction, Land Development and Other Land Loans [Member] | Financial Asset Acquired With Credit Deterioration [Member] | FUSB [Member] | ||||||
Loans acquired with deteriorated credit quality | 73 | |||||
Loans | 73 | |||||
Construction, Land Development and Other Land Loans [Member] | FUSB [Member] | FUSB [Member] | ||||||
Individually evaluated for impairment | 98 | |||||
Individually evaluated for impairment | 98 | |||||
Secured by 1-4 Family Residential Properties [Member] | ||||||
Beginning balance | 466 | |||||
Charge-offs | (20) | |||||
Recoveries | 12 | |||||
Provision | 67 | |||||
Ending balance | 525 | |||||
Individually evaluated for impairment | 14 | |||||
Collectively evaluated for impairment | 511 | |||||
Individually evaluated for impairment | 789 | |||||
Collectively evaluated for impairment | 99,226 | |||||
Loans acquired with deteriorated credit quality | 100,186 | |||||
Individually evaluated for impairment | 14 | |||||
Collectively evaluated for impairment | 511 | |||||
Individually evaluated for impairment | 789 | |||||
Collectively evaluated for impairment | 99,226 | |||||
Loans | 100,186 | |||||
Secured by 1-4 Family Residential Properties [Member] | FUSB [Member] | ||||||
Beginning balance | 346 | |||||
Charge-offs | (53) | |||||
Recoveries | 9 | |||||
Provision | 79 | |||||
Ending balance | 381 | |||||
Collectively evaluated for impairment | 365 | |||||
Individually evaluated for impairment | 919 | |||||
Collectively evaluated for impairment | 105,885 | |||||
Loans acquired with deteriorated credit quality | 106,991 | |||||
Collectively evaluated for impairment | 365 | |||||
Individually evaluated for impairment | 919 | |||||
Collectively evaluated for impairment | 105,885 | |||||
Loans | 106,991 | |||||
Secured by 1-4 Family Residential Properties [Member] | Financial Asset Acquired With Credit Deterioration [Member] | ||||||
Loans acquired with deteriorated credit quality | 171 | |||||
Loans | 171 | |||||
Secured by 1-4 Family Residential Properties [Member] | Financial Asset Acquired With Credit Deterioration [Member] | FUSB [Member] | ||||||
Loans acquired with deteriorated credit quality | 187 | |||||
Loans | 187 | |||||
Secured by 1-4 Family Residential Properties [Member] | FUSB [Member] | FUSB [Member] | ||||||
Individually evaluated for impairment | 16 | |||||
Individually evaluated for impairment | 16 | |||||
Secured By Multi family Residential Properties [Member] | ||||||
Beginning balance | 422 | |||||
Provision | 16 | |||||
Ending balance | 438 | |||||
Collectively evaluated for impairment | 438 | |||||
Collectively evaluated for impairment | 44,029 | |||||
Loans acquired with deteriorated credit quality | 44,029 | |||||
Collectively evaluated for impairment | 438 | |||||
Collectively evaluated for impairment | 44,029 | |||||
Loans | 44,029 | |||||
Secured By Multi family Residential Properties [Member] | FUSB [Member] | ||||||
Beginning balance | 128 | |||||
Provision | 32 | |||||
Ending balance | 160 | |||||
Collectively evaluated for impairment | 160 | |||||
Collectively evaluated for impairment | 27,602 | |||||
Loans acquired with deteriorated credit quality | 27,602 | |||||
Collectively evaluated for impairment | 160 | |||||
Collectively evaluated for impairment | 27,602 | |||||
Loans | 27,602 | |||||
Secured By Non-farm Non residential Properties [Member] | ||||||
Beginning balance | 964 | |||||
Recoveries | 5 | |||||
Provision | 217 | |||||
Ending balance | 1,186 | |||||
Collectively evaluated for impairment | 1,186 | |||||
Individually evaluated for impairment | 2,754 | |||||
Collectively evaluated for impairment | 153,468 | |||||
Loans acquired with deteriorated credit quality | 156,222 | |||||
Collectively evaluated for impairment | 1,186 | |||||
Individually evaluated for impairment | 2,754 | |||||
Collectively evaluated for impairment | 153,468 | |||||
Loans | 156,222 | |||||
Secured By Non-farm Non residential Properties [Member] | FUSB [Member] | ||||||
Beginning balance | 831 | |||||
Provision | (58) | |||||
Ending balance | 773 | |||||
Collectively evaluated for impairment | 773 | |||||
Individually evaluated for impairment | 510 | |||||
Collectively evaluated for impairment | 156,513 | |||||
Loans acquired with deteriorated credit quality | 157,023 | |||||
Collectively evaluated for impairment | 773 | |||||
Individually evaluated for impairment | 510 | |||||
Collectively evaluated for impairment | 156,513 | |||||
Loans | 157,023 | |||||
Direct Consumer [Member] | ||||||
Loans acquired with deteriorated credit quality | 36,307 | |||||
Loans | 36,307 | |||||
Branch Retail [Member] | ||||||
Loans acquired with deteriorated credit quality | 31,568 | |||||
Loans | 31,568 | |||||
Indirect Sales [Member] | ||||||
Loans acquired with deteriorated credit quality | 69,982 | |||||
Loans | 69,982 | |||||
Commercial and Industrial Loans [Member] | ||||||
Beginning balance | 1,377 | |||||
Provision | (612) | |||||
Ending balance | 765 | |||||
Individually evaluated for impairment | 63 | |||||
Collectively evaluated for impairment | 702 | |||||
Individually evaluated for impairment | 63 | |||||
Collectively evaluated for impairment | 80,708 | |||||
Loans acquired with deteriorated credit quality | [1] | 80,771 | ||||
Individually evaluated for impairment | 63 | |||||
Collectively evaluated for impairment | 702 | |||||
Individually evaluated for impairment | 63 | |||||
Collectively evaluated for impairment | 80,708 | |||||
Loans | [1] | 80,771 | 90,957 | |||
Commercial and Industrial Loans [Member] | FUSB [Member] | ||||||
Beginning balance | 1,138 | |||||
Recoveries | 1 | |||||
Provision | 44 | |||||
Ending balance | 1,183 | |||||
Collectively evaluated for impairment | 1,117 | |||||
Individually evaluated for impairment | 66 | |||||
Collectively evaluated for impairment | 87,799 | |||||
Loans acquired with deteriorated credit quality | 80,771 | [1] | 87,865 | |||
Collectively evaluated for impairment | 1,117 | |||||
Individually evaluated for impairment | 66 | |||||
Collectively evaluated for impairment | 87,799 | |||||
Loans | 80,771 | [1] | 87,865 | 90,957 | [1] | |
Commercial and Industrial Loans [Member] | FUSB [Member] | FUSB [Member] | ||||||
Individually evaluated for impairment | 66 | |||||
Individually evaluated for impairment | 66 | |||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Beginning balance | 1,625 | |||||
Charge-offs | (492) | |||||
Recoveries | 205 | |||||
Provision | 169 | |||||
Ending balance | 1,507 | |||||
Individually evaluated for impairment | 3 | |||||
Collectively evaluated for impairment | 1,504 | |||||
Individually evaluated for impairment | 26 | |||||
Collectively evaluated for impairment | 36,281 | |||||
Loans acquired with deteriorated credit quality | 36,307 | |||||
Individually evaluated for impairment | 3 | |||||
Collectively evaluated for impairment | 1,504 | |||||
Individually evaluated for impairment | 26 | |||||
Collectively evaluated for impairment | 36,281 | |||||
Loans | 36,307 | 38,040 | ||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | FUSB [Member] | ||||||
Beginning balance | 1,799 | |||||
Charge-offs | (536) | |||||
Recoveries | 173 | |||||
Provision | 232 | |||||
Ending balance | 1,668 | |||||
Collectively evaluated for impairment | 1,652 | |||||
Individually evaluated for impairment | 38 | |||||
Collectively evaluated for impairment | 36,254 | |||||
Loans acquired with deteriorated credit quality | 7,839 | 36,292 | ||||
Collectively evaluated for impairment | 1,652 | |||||
Individually evaluated for impairment | 38 | |||||
Collectively evaluated for impairment | 36,254 | |||||
Loans | 7,839 | 36,292 | 7,816 | |||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | FUSB [Member] | FUSB [Member] | ||||||
Individually evaluated for impairment | 16 | |||||
Individually evaluated for impairment | 16 | |||||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||
Beginning balance | 395 | |||||
Charge-offs | (142) | |||||
Recoveries | 44 | |||||
Provision | 142 | |||||
Ending balance | 439 | |||||
Collectively evaluated for impairment | 439 | |||||
Collectively evaluated for impairment | 31,568 | |||||
Loans acquired with deteriorated credit quality | 31,568 | |||||
Collectively evaluated for impairment | 439 | |||||
Collectively evaluated for impairment | 31,568 | |||||
Loans | 31,568 | 32,305 | ||||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | FUSB [Member] | ||||||
Beginning balance | 427 | |||||
Charge-offs | (98) | |||||
Recoveries | 25 | |||||
Provision | 55 | |||||
Ending balance | 409 | |||||
Collectively evaluated for impairment | 409 | |||||
Collectively evaluated for impairment | 27,066 | |||||
Loans acquired with deteriorated credit quality | 27,066 | |||||
Collectively evaluated for impairment | 409 | |||||
Collectively evaluated for impairment | 27,066 | |||||
Loans | 27,066 | |||||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||
Beginning balance | 316 | |||||
Provision | 513 | |||||
Ending balance | 829 | |||||
Collectively evaluated for impairment | 829 | |||||
Collectively evaluated for impairment | 69,982 | |||||
Loans acquired with deteriorated credit quality | [2] | 69,982 | ||||
Collectively evaluated for impairment | 829 | |||||
Collectively evaluated for impairment | 69,982 | |||||
Loans | [2] | 69,982 | $ 45,503 | |||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | FUSB [Member] | ||||||
Beginning balance | 145 | |||||
Charge-offs | (52) | |||||
Provision | 75 | |||||
Ending balance | 168 | |||||
Collectively evaluated for impairment | 168 | |||||
Collectively evaluated for impairment | 42,280 | |||||
Loans acquired with deteriorated credit quality | 69,982 | [2] | 42,280 | |||
Collectively evaluated for impairment | 168 | |||||
Collectively evaluated for impairment | 42,280 | |||||
Loans | $ 69,982 | [2] | $ 42,280 | |||
[1] | Includes equipment financing leases. | |||||
[2] | Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect sales portfolio from ALC to the Bank. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Loans By Credit Quality Indicators (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 550,992 | $ 556,053 | ||||
Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,927 | |||||
Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 44,029 | |||||
Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 156,222 | |||||
Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 100,186 | |||||
Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 36,307 | |||||
Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,568 | |||||
Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 69,982 | |||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,927 | 30,820 | ||||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 44,029 | 50,910 | ||||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 156,222 | 162,981 | ||||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 100,186 | 104,537 | ||||
Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | [1] | 80,771 | 90,957 | |||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 36,307 | 38,040 | ||||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,568 | 32,305 | ||||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | [2] | 69,982 | 45,503 | |||
FUSB [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 485,936 | 442,455 | $ 513,133 | |||
FUSB [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 28,014 | |||||
FUSB [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 27,602 | |||||
FUSB [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 157,023 | |||||
FUSB [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 106,991 | |||||
FUSB [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,927 | 30,820 | ||||
FUSB [Member] | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 44,029 | 50,910 | ||||
FUSB [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 156,222 | 162,981 | ||||
FUSB [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 95,166 | 98,971 | ||||
FUSB [Member] | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 80,771 | [1] | 90,957 | [1] | 87,865 | |
FUSB [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 7,839 | 7,816 | 36,292 | |||
FUSB [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 27,066 | |||||
FUSB [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 69,982 | [2] | $ 42,280 | |||
FUSB [Member] | Pass | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 306,574 | 327,557 | ||||
FUSB [Member] | Pass | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,849 | 30,466 | ||||
FUSB [Member] | Pass | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 44,029 | 50,910 | ||||
FUSB [Member] | Pass | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 151,142 | 157,718 | ||||
FUSB [Member] | Pass | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 79,554 | 88,463 | ||||
FUSB [Member] | Special Mention | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 3,639 | 4,029 | ||||
FUSB [Member] | Special Mention | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 78 | 354 | ||||
FUSB [Member] | Special Mention | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 2,814 | 2,961 | ||||
FUSB [Member] | Special Mention | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 747 | 714 | ||||
FUSB [Member] | Substandard [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 2,736 | 4,082 | ||||
FUSB [Member] | Substandard [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 2,266 | 2,302 | ||||
FUSB [Member] | Substandard [Member] | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 470 | 1,780 | ||||
FUSB [Member] | Pass And Criticized [Member} | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 312,949 | 335,668 | ||||
FUSB [Member] | Pass And Criticized [Member} | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,927 | 30,820 | ||||
FUSB [Member] | Pass And Criticized [Member} | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 44,029 | 50,910 | ||||
FUSB [Member] | Pass And Criticized [Member} | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 156,222 | 162,981 | ||||
FUSB [Member] | Pass And Criticized [Member} | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 80,771 | 90,957 | ||||
ALC [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 65,056 | 113,598 | ||||
ALC [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 235,100 | 217,177 | ||||
ALC [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 2,943 | 3,208 | ||||
ALC [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 238,043 | 220,385 | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 5,020 | 5,566 | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 98,051 | 102,176 | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 2,135 | 2,361 | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 100,186 | 104,537 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 28,468 | 30,224 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 35,765 | 37,474 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 542 | 566 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 36,307 | 38,040 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,568 | 32,305 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,332 | 32,024 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 236 | 281 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,568 | 32,305 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | [2] | 45,503 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 69,952 | 45,503 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 30 | |||||
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 69,982 | $ 45,503 | ||||
[1] | Includes equipment financing leases. | |||||
[2] | Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect sales portfolio from ALC to the Bank. |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | |
Loans | $ 550,992 | $ 556,053 | |
Total Past Due | 6,064 | 4,967 | |
Current | 544,928 | 551,086 | |
ALC [Member] | |||
Loans | 65,056 | 113,598 | |
Construction, Land Development and Other Land Loans [Member] | |||
Loans | 31,927 | ||
Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 100,186 | ||
Secured By Multi family Residential Properties [Member] | |||
Loans | 44,029 | ||
Secured By Non-farm Non residential Properties [Member] | |||
Loans | 156,222 | ||
Direct Consumer [Member] | |||
Loans | 36,307 | ||
Total Past Due | 1,133 | ||
Current | 35,174 | ||
Branch Retail [Member] | |||
Loans | 31,568 | ||
Total Past Due | 611 | ||
Current | 30,957 | ||
Indirect Sales [Member] | |||
Loans | 69,982 | ||
Total Past Due | 310 | ||
Current | 69,672 | ||
Financial Asset, 30 to 59 Days Past Due | |||
Loans | 2,885 | ||
Financial Asset, 30 to 59 Days Past Due | ALC [Member] | |||
Loans | 1,308 | ||
Financial Asset, 60 to 89 Days Past Due | |||
Loans | 827 | ||
Financial Asset, 60 to 89 Days Past Due | ALC [Member] | |||
Loans | 584 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | |||
Loans | 2,352 | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ALC [Member] | |||
Loans | 3,075 | ||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||
Loans | 31,927 | 30,820 | |
Current | 31,927 | 30,820 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 100,186 | 104,537 | |
Total Past Due | 750 | 1,211 | |
Current | 99,436 | 103,326 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ALC [Member] | |||
Loans | 5,020 | 5,566 | |
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | |||
Loans | 44,029 | 50,910 | |
Current | 44,029 | 50,910 | |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |||
Loans | 156,222 | 162,981 | |
Total Past Due | 1,616 | 1,449 | |
Current | 154,606 | 161,532 | |
Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 588 | ||
Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | ALC [Member] | |||
Loans | 259 | ||
Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due | Secured By Non-farm Non residential Properties [Member] | |||
Loans | 200 | ||
Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due | Secured By Non-farm Non residential Properties [Member] | ALC [Member] | |||
Loans | 30 | ||
Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 35 | ||
Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due | Secured by 1-4 Family Residential Properties [Member] | ALC [Member] | |||
Loans | 108 | ||
Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Secured by 1-4 Family Residential Properties [Member] | |||
Loans | 127 | ||
Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Secured by 1-4 Family Residential Properties [Member] | ALC [Member] | |||
Loans | 844 | ||
Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Secured By Non-farm Non residential Properties [Member] | |||
Loans | 1,416 | ||
Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Secured By Non-farm Non residential Properties [Member] | ALC [Member] | |||
Loans | 1,419 | ||
Commercial and Industrial Loans [Member] | |||
Loans | [1] | 80,771 | 90,957 |
Total Past Due | 1,644 | 56 | |
Current | 79,127 | 90,901 | |
Commercial and Industrial Loans [Member] | Financial Asset, 30 to 59 Days Past Due | |||
Loans | 1,266 | ||
Commercial and Industrial Loans [Member] | Financial Asset, 30 to 59 Days Past Due | ALC [Member] | |||
Loans | 56 | ||
Commercial and Industrial Loans [Member] | Financial Asset, 60 to 89 Days Past Due | |||
Loans | 378 | ||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | |||
Loans | 36,307 | 38,040 | |
Total Past Due | 1,205 | ||
Current | 36,835 | ||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ALC [Member] | |||
Loans | 28,468 | 30,224 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||
Loans | 31,568 | 32,305 | |
Total Past Due | 914 | ||
Current | 31,391 | ||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ALC [Member] | |||
Loans | 31,568 | 32,305 | |
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | |||
Loans | [2] | 69,982 | 45,503 |
Total Past Due | 132 | ||
Current | 45,371 | ||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ALC [Member] | |||
Loans | [2] | 45,503 | |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due | Direct Consumer [Member] | |||
Loans | 318 | 387 | |
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due | Branch Retail [Member] | |||
Loans | 252 | ||
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due | Branch Retail [Member] | ALC [Member] | |||
Loans | 444 | ||
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due | Indirect Sales [Member] | |||
Loans | 261 | ||
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due | Indirect Sales [Member] | ALC [Member] | |||
Loans | 132 | ||
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due | Direct Consumer [Member] | |||
Loans | 273 | 287 | |
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due | Branch Retail [Member] | |||
Loans | 122 | ||
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due | Branch Retail [Member] | ALC [Member] | |||
Loans | 189 | ||
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due | Indirect Sales [Member] | |||
Loans | 19 | ||
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Direct Consumer [Member] | |||
Loans | 542 | 531 | |
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Branch Retail [Member] | |||
Loans | 237 | ||
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Branch Retail [Member] | ALC [Member] | |||
Loans | $ 281 | ||
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Indirect Sales [Member] | |||
Loans | $ 30 | ||
[1] | Includes equipment financing leases. | ||
[2] | Effective January 1, 2020, the Company transferred a total of $45.5 million of its indirect sales portfolio from ALC to the Bank. |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Non-accruing Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Non-accruing loans | $ 3,695 | $ 3,723 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Non-accruing loans | 8 | 8 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Non-accruing loans | 1,372 | 1,423 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Non-accruing loans | 1,423 | 1,426 |
Commercial and Industrial Loans [Member] | ||
Non-accruing loans | 72 | 27 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Non-accruing loans | 553 | 558 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Non-accruing loans | 237 | $ 281 |
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||
Non-accruing loans | $ 30 |
Loans and Allowance for Loan_11
Loans and Allowance for Loan Losses - Summarizes of All COVID19 Loan Payment Deferment and the Percentage of Loans (Details) - COVID-19 [Member] $ in Thousands | Apr. 30, 2020USD ($)DeferredLoan | Mar. 31, 2020 |
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 20.90% | |
Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 1,433 | |
Principal Balance of Loans Deferred | $ 114,990 | |
Principal and Interest Deferments | 81,929 | |
Principal Only Deferments | $ 33,061 | |
Construction, Land Development and Other Land Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 52.20% | |
Construction, Land Development and Other Land Loans [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 3 | |
Principal Balance of Loans Deferred | $ 16,666 | |
Principal and Interest Deferments | 9,513 | |
Principal Only Deferments | $ 7,153 | |
Secured by 1-4 Family Residential Properties [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 11.50% | |
Secured by 1-4 Family Residential Properties [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 71 | |
Principal Balance of Loans Deferred | $ 11,549 | |
Principal and Interest Deferments | 9,368 | |
Principal Only Deferments | $ 2,181 | |
Secured By Multi family Residential Properties [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 55.60% | |
Secured By Multi family Residential Properties [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 11 | |
Principal Balance of Loans Deferred | $ 24,482 | |
Principal and Interest Deferments | 5,421 | |
Principal Only Deferments | $ 19,061 | |
Secured By Non-farm Non residential Properties [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 31.90% | |
Secured By Non-farm Non residential Properties [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 53 | |
Principal Balance of Loans Deferred | $ 49,851 | |
Principal and Interest Deferments | 45,575 | |
Principal Only Deferments | $ 4,276 | |
Commercial and Industrial Loans [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 2.00% | |
Commercial and Industrial Loans [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 12 | |
Principal Balance of Loans Deferred | $ 1,645 | |
Principal and Interest Deferments | 1,255 | |
Principal Only Deferments | $ 390 | |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 10.40% | |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 830 | |
Principal Balance of Loans Deferred | $ 3,774 | |
Principal and Interest Deferments | $ 3,774 | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 8.90% | |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 283 | |
Principal Balance of Loans Deferred | $ 2,825 | |
Principal and Interest Deferments | $ 2,825 | |
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Percentage of Portfolio Balance as of March 31, 2020 | 6.00% | |
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | Subsequent Event [Member] | ||
Financing Receivable Modifications [Line Items] | ||
Number of Loans Deferred | DeferredLoan | 170 | |
Principal Balance of Loans Deferred | $ 4,198 | |
Principal and Interest Deferments | $ 4,198 |
Loans and Allowance for Loan_12
Loans and Allowance for Loan Losses - Summarizes the At Risk Categories and the Relative Percentage of the Loan Portfolio (Details) - COVID-19 [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 79,747 |
Percentage of Total Loan Balance | 14.50% |
High-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 14,987 |
Percentage of Total Loan Balance | 2.70% |
Moderate-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 64,760 |
Percentage of Total Loan Balance | 11.80% |
Hotels/Motels [Member] | Product Concentration Risk | High-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 10,479 |
Percentage of Total Loan Balance | 1.90% |
Dine In Restaurants | Product Concentration Risk | High-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 4,508 |
Percentage of Total Loan Balance | 0.80% |
Retail [Member] | Product Concentration Risk | Moderate-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 34,073 |
Percentage of Total Loan Balance | 6.20% |
1-4 Investment [Member] | Product Concentration Risk | Moderate-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 25,620 |
Percentage of Total Loan Balance | 4.70% |
Fast Food Restaurants | Product Concentration Risk | Moderate-Risk Loan [Member] | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |
Balance of Risk Category | $ 5,067 |
Percentage of Total Loan Balance | 0.90% |
Loans and Allowance for Loan_13
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Impaired loans with no related allowance recorded, carrying amount | $ 3,694 | $ 2,861 |
Impaired loans with no related allowance recorded, unpaid principal balance | 3,694 | 2,861 |
Impaired loans, related allowances | 80 | 227 |
Impaired loans with no related allowance recorded, carrying amount | 109 | 256 |
Impaired loans with no related allowance recorded, unpaid principal balance | 109 | 256 |
Impaired loans, carrying amount | 3,803 | 3,117 |
Impaired loans, unpaid principal balance | 3,803 | 3,117 |
Impaired loans, average recorded investment | 3,796 | 2,876 |
Impaired loans, interest income recognized | 5 | 86 |
Impaired loans, interest income received | 5 | 86 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Impaired loans, average recorded investment | 181 | |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 940 | 984 |
Impaired loans with no related allowance recorded, unpaid principal balance | 940 | 984 |
Impaired loans, related allowances | 14 | 14 |
Impaired loans with no related allowance recorded, carrying amount | 20 | 21 |
Impaired loans with no related allowance recorded, unpaid principal balance | 20 | 21 |
Impaired loans, carrying amount | 960 | 1,005 |
Impaired loans, unpaid principal balance | 960 | 1,005 |
Impaired loans, average recorded investment | 902 | 1,021 |
Impaired loans, interest income recognized | 2 | 48 |
Impaired loans, interest income received | 2 | 48 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 2,754 | 1,877 |
Impaired loans with no related allowance recorded, unpaid principal balance | 2,754 | 1,877 |
Impaired loans, carrying amount | 2,754 | 1,877 |
Impaired loans, unpaid principal balance | 2,754 | 1,877 |
Impaired loans, average recorded investment | 2,757 | 645 |
Impaired loans, interest income recognized | 29 | |
Impaired loans, interest income received | 29 | |
Commercial and Industrial Loans [Member] | ||
Impaired loans, related allowances | 63 | 206 |
Impaired loans with no related allowance recorded, carrying amount | 63 | 206 |
Impaired loans with no related allowance recorded, unpaid principal balance | 63 | 206 |
Impaired loans, carrying amount | 63 | 206 |
Impaired loans, unpaid principal balance | 63 | 206 |
Impaired loans, average recorded investment | 110 | 991 |
Impaired loans, interest income recognized | 2 | 7 |
Impaired loans, interest income received | 2 | 7 |
Direct Consumer [Member] | ||
Impaired loans, related allowances | 3 | 7 |
Impaired loans with no related allowance recorded, carrying amount | 26 | 29 |
Impaired loans with no related allowance recorded, unpaid principal balance | 26 | 29 |
Impaired loans, carrying amount | 26 | 29 |
Impaired loans, unpaid principal balance | 26 | 29 |
Impaired loans, average recorded investment | 27 | 38 |
Impaired loans, interest income recognized | 1 | 2 |
Impaired loans, interest income received | $ 1 | $ 2 |
Loans and Allowance for Loan_14
Loans and Allowance for Loan Losses - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020USD ($)DebtSecurityNumber | Dec. 31, 2019USD ($)DebtSecurityNumber | |
Number of Loans | DebtSecurityNumber | 5 | 5 |
Pre- Modification Outstanding Principal Balance | $ 282 | $ 282 |
Post- Modification Principal Balance | $ 129 | $ 136 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Number of Loans | DebtSecurityNumber | 1 | 1 |
Pre- Modification Outstanding Principal Balance | $ 107 | $ 107 |
Post- Modification Principal Balance | $ 59 | $ 62 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Number of Loans | DebtSecurityNumber | 2 | 2 |
Pre- Modification Outstanding Principal Balance | $ 59 | $ 59 |
Post- Modification Principal Balance | $ 12 | $ 14 |
Commercial and Industrial Loans [Member] | ||
Number of Loans | DebtSecurityNumber | 2 | 2 |
Pre- Modification Outstanding Principal Balance | $ 116 | $ 116 |
Post- Modification Principal Balance | $ 58 | $ 60 |
Other Real Estate Owned and R_3
Other Real Estate Owned and Repossessed Assets - Summary of Foreclosed Property Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Other Real Estate [Abstract] | |||
Beginning balance | $ 1,078 | $ 1,505 | |
Additions | [1] | 18 | 121 |
Sales proceeds | (37) | (374) | |
Gross gains | 5 | 29 | |
Gross losses | (21) | ||
Net gains (losses) | 5 | 8 | |
Impairment | (10) | (38) | |
Ending balance | $ 1,054 | $ 1,222 | |
[1] | Additions to other real estate owned (“OREO”) include transfers from loans 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 Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Other Real Estate [Abstract] | ||
Foreclosed real estate owned, fair value less disposal costs | $ 0.1 | $ 0.1 |
Mortgage loans in process of foreclosure, amount | $ 0.1 | $ 0.1 |
Other Real Estate Owned and R_5
Other Real Estate Owned and Repossessed Assets - Summary of Repossessed Assets Activity (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Sales proceeds | $ (37) | $ (374) |
Gross gains | 5 | 29 |
Gross losses | (21) | |
Net gains (losses) | 5 | 8 |
Impairment | (10) | (38) |
Repossessed Assets [Member] | ||
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Beginning balance | 256 | 229 |
Transfers from loans | 317 | 146 |
Sales proceeds | (153) | (83) |
Gross gains | 2 | |
Gross losses | (166) | (92) |
Net gains (losses) | (166) | (90) |
Ending balance | $ 254 | $ 202 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, Ending Balance | $ 7,435 | $ 7,400 | |
Finite-Lived Intangible Assets, Net, Ending Balance | $ 1,280 | ||
Core Deposits [Member] | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Finite-Lived Intangible Asset, Useful Life | 7 years | ||
Finite-Lived Intangible Assets, Net, Ending Balance | $ 2,000 | ||
The Peoples Bank [Member] | |||
Goodwill And Other Intangible Assets [Line Items] | |||
Goodwill, Ending Balance | $ 7,400 | $ 7,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 7,435 | $ 7,400 | |
Gross carrying amount | 2,048 | ||
Accumulated amortization | (768) | ||
Core deposit intangible, net | 1,280 | ||
Total | $ 8,715 | $ 8,825 | $ 9,184 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2020 | $ 305 |
2021 | 341 |
2022 | 268 |
2023 | 195 |
2024 | 122 |
2025 | 49 |
Core deposit intangible, net | $ 1,280 |
Short-Term Borrowings - Additio
Short-Term Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Short Term Debt [Line Items] | ||
Short-term Debt, Total | $ 10,152 | $ 10,025 |
Federal Funds Purchased | 0 | 0 |
Available Fund Lines From Correspondent Banks | 61,500 | 61,700 |
Securities Sold under Agreements to Repurchase, Total | 200 | 25 |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months, Total | 10,000 | 10,000 |
Long-term Federal Home Loan Bank advances | 0 | 0 |
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | 32,900 | 34,600 |
Federal Home Loan Bank, advances, general debt obligations, amount of available, unused funds | $ 226,500 | $ 211,500 |
Minimum [Member] | ||
Short Term Debt [Line Items] | ||
Maturity Period of Federal Funds | 1 day | |
Maximum [Member] | ||
Short Term Debt [Line Items] | ||
Maturity Period of Federal Funds | 4 days |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |||
Provision for income taxes | $ 262 | $ 351 | |
Effective Income Tax Rate Reconciliation, Percent | 23.60% | 22.10% | |
Deferred Tax Assets, Net | $ 2,700 | $ 2,800 |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 129,540 | 124,392 |
Other Liabilities [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Liability, Current and Noncurrent, Total | $ 3.2 | $ 3.2 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based compensation arrangement by share-based payment award, options, outstanding, intrinsic value | $ 0 | $ 0.4 |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based payment arrangement, expense | $ 0.1 | $ 0.1 |
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 | 24,160 | 5,520 |
Stock Awards - Fair Value Assum
Stock Awards - Fair Value Assumptions (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | ||
Risk-free interest rate | 1.24% | 2.59% |
Expected term (in years) | 7 years 6 months | 7 years 6 months |
Expected stock price volatility | 28.90% | 30.90% |
Dividend yield | 1.25% | 1.25% |
Fair value of stock option | $ 3.34 | $ 3.30 |
Stock Awards - Stock Option Act
Stock Awards - Stock Option Activity (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 412,800 | 377,950 |
Granted (in shares) | 10,200 | 66,150 |
Exercised (in shares) | 666 | |
Forfeited (in shares) | 334 | |
Options outstanding, end of period (in shares) | 422,000 | 444,100 |
Options exercisable, end of period (in shares) | 352,517 | 312,783 |
Outstanding, beginning of period, average exercise price (in dollars per share) | $ 9.72 | $ 9.80 |
Granted, average exercise price (in dollars per share) | 11.95 | 10.01 |
Exercised, average exercise price (in dollars per share) | 10.75 | |
Forfeited, average exercise price (in dollars per share) | 10.75 | |
Options outstanding, end of period, average exercise price (in dollars per share) | 9.77 | 9.83 |
Options exercisable, end of period, average exercise price (in dollars per share) | $ 9.58 | $ 9.25 |
Leases - Additional Information
Leases - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020 | |
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 | 0 years |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Remaining Term of Contract | 14 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Leases [Abstract] | |||
Operating lease expense | [1] | $ 211 | $ 210 |
Operating lease income | [2] | 212 | 209 |
Operating lease, right-of-use asset | 3,377 | ||
Operating lease, liability | $ 3,414 | ||
Weighted-average remaining lease term (in years) | 6 years 6 months 3 days | ||
Weighted-average discount rate | 3.16% | ||
Operating cash flows from operating leases | $ 188 | $ 192 | |
[1] | Includes short-term lease costs. For the three-month periods ended March 31, 2020 and 2019, short-term lease costs were nominal in amount. | ||
[2] | Operating lease income includes rental income from owned properties. |
Leases - Future Minimum Operati
Leases - Future Minimum Operating Lease Payments (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
2020 | $ 524 |
2021 | 609 |
2022 | 539 |
2023 | 453 |
2024 | 438 |
2025 and thereafter | 1,276 |
Total future minimum lease payments | 3,839 |
Less: Imputed interest | 425 |
Total operating lease liabilities | $ 3,414 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) | Oct. 01, 2019 | Aug. 21, 2019 | Aug. 09, 2019 | Jul. 22, 2019 | Jul. 08, 2019 | Mar. 31, 2020 |
Forward Interest Rate Swap Contract One [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount, total | $ 10,000,000 | |||||
Derivative term of contract | 7 years | |||||
Derivative, fixed interest rate | 1.79% | |||||
Forward Interest Rate Swap Contract One [Member] | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Expected derivative notional amount for next seven years | $ 10,000,000 | |||||
Forward Interest Rate Swap Contract Two [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount, total | $ 10,000,000 | |||||
Derivative term of contract | 5 years | |||||
Derivative, fixed interest rate | 1.698% | |||||
Forward Interest Rate Swap Contract Two [Member] | Minimum [Member] | ||||||
Derivative [Line Items] | ||||||
Expected derivative notional amount for next five years | $ 10,000 | |||||
Forward Interest Rate Swap Contract Five [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount, total | $ 10,000,000 | |||||
Derivative term of contract | 5 years | |||||
Derivative, fixed interest rate | 1.357% | |||||
Forward Interest Rate Swap Contract Three [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount, total | $ 10,000,000 | |||||
Derivative term of contract | 5 years | |||||
Derivative, fixed interest rate | 1.406% | |||||
Forward Interest Rate Swap Contract Four [Member] | ||||||
Derivative [Line Items] | ||||||
Notional amount, total | $ 10,000,000 | |||||
Derivative term of contract | 5 years | |||||
Derivative, fixed interest rate | 1.292% |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Cumulative Basis Adjustments For Fair Value Hedges (Details) $ in Thousands | Mar. 31, 2020USD ($) | [1] |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Carrying Amount of the Hedged Assets | $ 56,885 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ 749 | |
[1] | These amounts include the amortized cost basis of closed portfolios used to designate hedging relationships in which the hedged item is the last layer expected to be remaining at the end of the hedging relationship. As of March 31, 2020, the amortized cost basis of the closed portfolios used in these hedging relationships was $56.1 million, the cumulative basis adjustments associated with these hedging relationships was $0.7 million, and the amounts of the designated hedged items were $20 million. |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Cumulative Basis Adjustments For Fair Value Hedges (Parenthetical) (Details) $ in Millions | Mar. 31, 2020USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Amortized cost basis of closed portfolios used in hedging relationships | $ 56.1 |
Cumulative basis adjustments associated with hedging relationships | 0.7 |
Designated hedged items | $ 20 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 3 Months Ended |
Mar. 31, 2020Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Reporting - Results for
Segment Reporting - Results for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Net interest income | $ 8,886 | $ 9,173 | |
Provision | 580 | 400 | |
Total non-interest income | 1,297 | 1,265 | |
Total non-interest expense | 8,494 | 8,453 | |
Income before income taxes | 1,109 | 1,585 | |
Provision for income taxes | 262 | 351 | |
Net income | 847 | 1,234 | |
Total assets | 788,565 | 795,334 | $ 788,738 |
Total investment securities | 110,079 | 148,025 | |
Total loans, net | 539,685 | 502,760 | 545,243 |
Goodwill and core deposit intangible, net | 8,715 | 9,184 | 8,825 |
Investment in subsidiaries | 5 | ||
Fixed asset additions | 233 | 1,691 | |
Depreciation and amortization expense | 399 | 400 | |
Total interest income from external customers | 10,397 | 10,813 | |
Intersegment Eliminations [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total non-interest income | (1,268) | (1,613) | |
Total non-interest expense | (187) | (175) | |
Income before income taxes | (1,081) | (1,438) | |
Net income | (1,081) | (1,438) | |
Total assets | (154,137) | (191,299) | |
Total loans, net | (53,577) | (89,037) | |
Investment in subsidiaries | (83,680) | (81,236) | |
Total interest income from affiliates | (746) | (1,166) | |
FUSB [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Provision | 400 | ||
Total loans, net | 481,611 | 438,710 | |
FUSB [Member] | Operating Segments [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Net interest income | 6,480 | 6,009 | |
Provision | 248 | ||
Total non-interest income | 1,094 | 1,078 | |
Total non-interest expense | 6,156 | 5,833 | |
Income before income taxes | 1,170 | 1,254 | |
Provision for income taxes | 274 | 262 | |
Net income | 896 | 992 | |
Total assets | 791,302 | 796,876 | |
Total investment securities | 109,998 | 147,947 | |
Total loans, net | 535,188 | 492,895 | |
Goodwill and core deposit intangible, net | 8,715 | 9,184 | |
Investment in subsidiaries | 5 | ||
Fixed asset additions | 219 | 1,677 | |
Depreciation and amortization expense | 366 | 367 | |
Total interest income from external customers | 7,257 | 6,493 | |
Total interest income from affiliates | 740 | 1,161 | |
ALC [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Total loans, net | 58,074 | $ 106,533 | |
ALC [Member] | Operating Segments [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Net interest income | 2,400 | 3,158 | |
Provision | 332 | 400 | |
Total non-interest income | 237 | 219 | |
Total non-interest expense | 2,169 | 2,368 | |
Income before income taxes | 136 | 609 | |
Provision for income taxes | 51 | 143 | |
Net income | 85 | 466 | |
Total assets | 61,503 | 102,780 | |
Total loans, net | 58,074 | 98,902 | |
Fixed asset additions | 14 | 14 | |
Depreciation and amortization expense | 33 | 33 | |
Total interest income from external customers | 3,140 | 4,319 | |
Other Segments [Member] | Operating Segments [Member] | |||
Segment Reporting Revenue Reconciling Item [Line Items] | |||
Net interest income | 6 | 6 | |
Total non-interest income | 1,234 | 1,581 | |
Total non-interest expense | 356 | 427 | |
Income before income taxes | 884 | 1,160 | |
Provision for income taxes | (63) | (54) | |
Net income | 947 | 1,214 | |
Total assets | 89,897 | 86,977 | |
Total investment securities | 81 | 78 | |
Investment in subsidiaries | 83,680 | 81,236 | |
Total interest income from external customers | 1 | ||
Total interest income from affiliates | $ 6 | $ 5 |
Other Operating Income and Ex_3
Other Operating Income and Expense - Other Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Other Income And Expenses [Abstract] | ||
Bank-owned life insurance | $ 108 | $ 106 |
Auto Club revenue | 35 | 38 |
ATM fee income | 100 | 104 |
Wire transfer fees | 13 | 11 |
Other income | 115 | 78 |
Total | $ 371 | $ 337 |
Other Operating Income and Ex_4
Other Operating Income and Expense - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Finite Lived Intangible Assets [Line Items] | ||
Revenue, remaining performance obligation, amount | $ 0 | |
Contract with customer, liability, total | 0 | |
Service and Other Charges on Deposit Accounts, Mortgage Fees From Secondary Market Transactions at The Bank ATM Fee Income and Other Noninterest Income [Member] | ||
Finite Lived Intangible Assets [Line Items] | ||
Revenue from Contract with Customer, Including Assessed Tax | $ 700 | $ 700 |
Other Operating Income and Ex_5
Other Operating Income and Expense - Other Operating Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Postage, stationery and supplies | $ 214 | $ 238 |
Telephone/data communication | 223 | 213 |
Advertising and marketing | 44 | 34 |
Travel and business development | 126 | 111 |
Collection and recoveries | 85 | 80 |
Other services | 91 | 72 |
Insurance expense | 162 | 162 |
FDIC insurance and state assessments | 80 | 119 |
Gain or loss on sale of fixed assets | 166 | 85 |
Amortization of intangible assets | 110 | 128 |
Other real estate/foreclosure expense, net | 19 | 58 |
Other expense | 342 | 483 |
Total | 1,662 | 1,783 |
Core Deposits [Member] | ||
Amortization of intangible assets | $ 110 | $ 128 |
Guarantees, Commitments and C_3
Guarantees, Commitments and Contingencies - Summary of Commitment and Contingent Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Standby Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 180 | $ 180 |
Standby Performance Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | 647 | 647 |
Commitments to Extend Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 109,308 | $ 96,967 |
Guarantees, Commitments and C_4
Guarantees, Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments And Contingencies Disclosure [Abstract] | ||
Self Insurance Reserve | $ 0.2 | $ 0.2 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 96,541 | $ 94,016 |
Fair Value, Recurring [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 301 | |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Assets [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 301 | |
Residential Mortgage Backed Securities [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 43,102 | 46,345 |
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 43,102 | 46,345 |
Residential Mortgage Backed Securities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 43,102 | 46,345 |
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 | 48,740 | 43,373 |
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 | 48,740 | 43,373 |
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 | 48,740 | 43,373 |
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 | 3,952 | 4,218 |
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 | 3,952 | 4,218 |
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 | 3,952 | 4,218 |
Corporate Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 666 | |
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 | 666 | |
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 | 666 | |
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 | 81 | 80 |
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 | 81 | 80 |
US Treasury 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 | 81 | $ 80 |
Other Liabilities [Member] | Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 2,541 | |
Other Liabilities [Member] | Fair Value, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 2,541 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
OREO | $ 1,054 | $ 1,078 | $ 1,222 | $ 1,505 |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impaired loans | 29 | |||
OREO | 1,054 | |||
Assets held-for-sale | 198 | |||
Fair Value, Nonrecurring [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impaired loans | 29 | 29 | ||
OREO | 1,054 | 1,078 | ||
Assets held-for-sale | 198 | 198 | ||
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 | 29 | 29 | ||
OREO | 1,054 | 1,078 | ||
Assets held-for-sale | $ 198 | $ 198 |
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) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
OREO | $ 1,054 | $ 1,078 | $ 1,222 | $ 1,505 |
Fair Value, Inputs, Level 3 [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impaired loans | 29 | |||
OREO | 1,054 | |||
Assets held-for-sale | $ 198 | |||
Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Measurement Input, Comparability Adjustment [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0.09 | |||
OREO | 0.09 | |||
Assets held-for-sale | 0.09 | |||
Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Measurement Input, Comparability Adjustment [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0.10 | |||
OREO | 0.10 | |||
Assets held-for-sale | 0.10 | |||
Fair Value, Inputs, Level 3 [Member] | Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member] | ||||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||||
Impaired loans | 0.095 | |||
OREO | 0.095 | |||
Assets held-for-sale | 0.095 |
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 | Mar. 31, 2020 | Dec. 31, 2019 |
Assets: | ||
Investment securities available-for-sale | $ 96,541 | $ 94,016 |
Investment securities held-to-maturity | 13,645 | 14,306 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 56,121 | 57,030 |
Investment securities available-for-sale | 96,541 | 94,016 |
Investment securities held-to-maturity | 13,538 | 14,340 |
Federal funds sold | 15,080 | 10,080 |
Federal Home Loan Bank stock | 1,135 | 1,137 |
Loans, net of allowance for loan losses | 539,685 | 545,243 |
Other assets - derivatives | 301 | |
Liabilities: | ||
Deposits | 682,595 | 683,662 |
Short-term borrowings | 10,152 | 10,025 |
Other liabilities - derivatives | 2,541 | |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 56,121 | 57,030 |
Investment securities available-for-sale | 96,541 | 94,016 |
Investment securities held-to-maturity | 13,645 | 14,306 |
Federal funds sold | 15,080 | 10,080 |
Federal Home Loan Bank stock | 1,135 | 1,137 |
Loans, net of allowance for loan losses | 542,410 | 559,911 |
Other assets - derivatives | 301 | |
Liabilities: | ||
Deposits | 668,433 | 682,828 |
Short-term borrowings | 10,152 | 10,025 |
Other liabilities - derivatives | 2,541 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Assets: | ||
Cash and cash equivalents | 56,121 | 57,030 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 96,541 | 94,016 |
Investment securities held-to-maturity | 13,645 | 14,306 |
Federal funds sold | 15,080 | 10,080 |
Other assets - derivatives | 301 | |
Liabilities: | ||
Deposits | 668,433 | 682,828 |
Short-term borrowings | 10,152 | 10,025 |
Other liabilities - derivatives | 2,541 | |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Federal Home Loan Bank stock | 1,135 | 1,137 |
Loans, net of allowance for loan losses | $ 542,410 | $ 559,911 |