Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | FIRST US BANCSHARES INC | |
Entity Central Index Key | 0000717806 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 6,217,489 | |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
ASSETS | ||
Cash and due from banks | $ 13,952 | $ 12,235 |
Interest-bearing deposits in banks | 67,871 | 82,180 |
Total cash and cash equivalents | 81,823 | 94,415 |
Federal funds sold | 83 | 85 |
Investment securities available-for-sale, at fair value | 118,735 | 84,993 |
Investment securities held-to-maturity, at amortized cost | 4,848 | 6,429 |
Federal Home Loan Bank stock, at cost | 870 | 1,135 |
Loans, net of allowance for loan and lease losses of $7,726 and $7,470, respectively | 677,756 | 638,374 |
Premises and equipment, net of accumulated depreciation of $24,370 and $23,774, respectively | 27,959 | 28,206 |
Cash surrender value of bank-owned life insurance | 15,992 | 15,846 |
Accrued interest receivable | 2,579 | 2,807 |
Goodwill and core deposit intangible, net | 8,227 | 8,410 |
Other real estate owned | 846 | 949 |
Other assets | 7,228 | 8,862 |
Total assets | 946,946 | 890,511 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Non-interest-bearing | 174,691 | 151,935 |
Interest-bearing | 663,194 | 630,277 |
Total deposits | 837,885 | 782,212 |
Accrued interest expense | 223 | 292 |
Other liabilities | 10,043 | 11,312 |
Short-term borrowings | 10,017 | 10,017 |
Total liabilities | 858,168 | 803,833 |
Shareholders’ equity: | ||
Common stock, par value $0.01 per share, 10,000,000 shares authorized; 7,634,281 and 7,596,351 shares issued, respectively; 6,214,809 and 6,176,556 shares outstanding, respectively | 75 | 75 |
Additional paid-in capital | 13,981 | 13,786 |
Accumulated other comprehensive income (loss), net of tax | 312 | (52) |
Retained earnings | 96,252 | 94,722 |
Less treasury stock: 1,419,472 and 1,419,795 shares at cost, respectively | (21,842) | (21,853) |
Total shareholders’ equity | 88,778 | 86,678 |
Total liabilities and shareholders’ equity | $ 946,946 | $ 890,511 |
Interim Condensed Consolidate_2
Interim Condensed Consolidated Balance Sheets (Current Period Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Statement Of Financial Position [Abstract] | ||
Loans, allowance for loan losses | $ 7,726 | $ 7,470 |
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) | 7,634,281 | 7,596,351 |
Common stock, shares outstanding (in shares) | 6,214,809 | 6,176,556 |
Treasury stock, shares (in shares) | 1,419,472 | 1,419,795 |
Interim Condensed Consolidate_3
Interim Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Interest income: | ||||
Interest and fees on loans | $ 9,668 | $ 9,237 | $ 19,158 | $ 18,876 |
Interest on investment securities | 391 | 543 | 746 | 1,301 |
Total interest income | 10,059 | 9,780 | 19,904 | 20,177 |
Interest expense: | ||||
Interest on deposits | 705 | 1,131 | 1,448 | 2,606 |
Interest on borrowings | 42 | 26 | 80 | 62 |
Total interest expense | 747 | 1,157 | 1,528 | 2,668 |
Net interest income | 9,312 | 8,623 | 18,376 | 17,509 |
Provision for loan and lease losses | 498 | 850 | 899 | 1,430 |
Net interest income after provision for loan and lease losses | 8,814 | 7,773 | 17,477 | 16,079 |
Non-interest income: | ||||
Net gain on sales and prepayments of investment securities | 22 | 326 | 22 | 326 |
Lease income | 202 | 212 | 411 | 424 |
Other income, net | 345 | 353 | 798 | 877 |
Total non-interest income | 809 | 1,330 | 1,760 | 2,627 |
Non-interest expense: | ||||
Salaries and employee benefits | 4,992 | 5,193 | 9,906 | 10,329 |
Net occupancy and equipment | 1,020 | 995 | 2,059 | 1,996 |
Computer services | 485 | 424 | 950 | 841 |
Fees for professional services | 354 | 401 | 711 | 679 |
Other expense | 1,548 | 1,568 | 3,169 | 3,230 |
Total non-interest expense | 8,399 | 8,581 | 16,795 | 17,075 |
Income before income taxes | 1,224 | 522 | 2,442 | 1,631 |
Provision for income taxes | 271 | 118 | 539 | 380 |
Net income | $ 953 | $ 404 | $ 1,903 | $ 1,251 |
Basic net income per share | $ 0.15 | $ 0.07 | $ 0.30 | $ 0.20 |
Diluted net income per share | 0.14 | 0.06 | 0.28 | 0.19 |
Dividends per share | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.06 |
Service [Member] | ||||
Non-interest income: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 240 | $ 263 | $ 506 | $ 697 |
Mortgage Banking [Member] | ||||
Non-interest income: | ||||
Revenue from Contract with Customer, Including Assessed Tax | $ 176 | $ 23 | $ 303 |
Interim Condensed Consolidate_4
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 953 | $ 404 | $ 1,903 | $ 1,251 |
Other comprehensive income (loss): | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during period, net of tax expense (benefit) of $1, $343, ($35) and $550, respectively | 3 | 1,031 | (103) | 1,653 |
Reclassification adjustment for net gains on securities available-for -sale realized in net income, net of tax of $5, $81, $5 and $81, respectively | (17) | (245) | (17) | (245) |
Unrealized holding (losses) gains arising during the period on effective cash flow hedge derivatives, net of tax (benefit) expense of $0, ($56), $161 and ($503), respectively | (1) | (168) | 484 | (1,507) |
Other comprehensive income (loss) | (15) | 618 | 364 | (99) |
Total comprehensive income | $ 938 | $ 1,022 | $ 2,267 | $ 1,152 |
Interim Condensed Consolidate_5
Interim Condensed Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Unrealized holding gains (losses) on securities available-for-sale arising during period, tax expense (benefit) | $ 1 | $ 343 | $ (35) | $ 550 |
Reclassification adjustment for net gains on securities available-for-sale realized in net income, tax expense (benefit) | 5 | 81 | 5 | 81 |
Unrealized holding gains (losses) arising during the period on effective cash flow hedge derivatives, tax expense (benefit) | $ 0 | $ 56 | $ 161 | $ (503) |
Interim Condensed Consolidate_6
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | AOCI Attributable to Parent [Member] | Retained Earnings [Member] | Treasury Stock [Member] |
Beginning balance, value at Dec. 31, 2019 | $ 84,748 | $ 75 | $ 13,814 | $ (46) | $ 92,755 | $ (21,850) |
Balance (in shares) at Dec. 31, 2019 | 6,157,692 | |||||
Net income | 1,251 | 1,251 | ||||
Net change in fair value of securities available-for-sale, net of tax | 1,408 | 1,408 | ||||
Net change in fair value of derivative instruments, net of tax | (1,507) | (1,507) | ||||
Dividends declared | (370) | (370) | ||||
Impact of stock-based compensation plans, net | 203 | 203 | ||||
Impact of stock-based compensation plans, net (in shares) | 28,498 | |||||
Reissuance of treasury stock as compensation | (444) | 444 | ||||
Reissuance of treasury stock as compensation (in shares) | 28,847 | |||||
Treasury stock repurchases | (452) | (452) | ||||
Treasury stock repurchases (in shares) | (38,604) | |||||
Ending balance, value at Jun. 30, 2020 | 85,281 | $ 75 | 13,573 | (145) | 93,636 | (21,858) |
Balance (in shares) at Jun. 30, 2020 | 6,176,433 | |||||
Beginning 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 | |||||
Net income | 404 | 404 | ||||
Net change in fair value of securities available-for-sale, net of tax | 786 | 786 | ||||
Net change in fair value of derivative instruments, net of tax | (168) | (168) | ||||
Dividends declared | (186) | (186) | ||||
Impact of stock-based compensation plans, net | 113 | 113 | ||||
Impact of stock-based compensation plans, net (in shares) | 4,300 | |||||
Reissuance of treasury stock as compensation | (444) | 444 | ||||
Reissuance of treasury stock as compensation (in shares) | 28,847 | |||||
Ending balance, value at Jun. 30, 2020 | 85,281 | $ 75 | 13,573 | (145) | 93,636 | (21,858) |
Balance (in shares) at Jun. 30, 2020 | 6,176,433 | |||||
Beginning balance, value at Dec. 31, 2020 | 86,678 | $ 75 | 13,786 | (52) | 94,722 | (21,853) |
Balance (in shares) at Dec. 31, 2020 | 6,176,556 | |||||
Net income | 1,903 | 1,903 | ||||
Net change in fair value of securities available-for-sale, net of tax | (120) | (120) | ||||
Net change in fair value of derivative instruments, net of tax | 484 | 484 | ||||
Dividends declared | (373) | (373) | ||||
Impact of stock-based compensation plans, net | 213 | 213 | ||||
Impact of stock-based compensation plans, net (in shares) | 37,085 | |||||
Reissuance of treasury stock as compensation | (18) | 18 | ||||
Reissuance of treasury stock as compensation (in shares) | 1,168 | |||||
Treasury stock repurchases | (7) | (7) | ||||
Ending balance, value at Jun. 30, 2021 | 88,778 | $ 75 | 13,981 | 312 | 96,252 | (21,842) |
Balance (in shares) at Jun. 30, 2021 | 6,214,809 | |||||
Beginning balance, value at Mar. 31, 2021 | 87,917 | $ 75 | 13,889 | 327 | 95,486 | (21,860) |
Balance (in shares) at Mar. 31, 2021 | 6,213,641 | |||||
Net income | 953 | 953 | ||||
Net change in fair value of securities available-for-sale, net of tax | (14) | (14) | ||||
Net change in fair value of derivative instruments, net of tax | (1) | (1) | ||||
Dividends declared | (187) | (187) | ||||
Impact of stock-based compensation plans, net | 110 | 110 | ||||
Reissuance of treasury stock as compensation | (18) | 18 | ||||
Reissuance of treasury stock as compensation (in shares) | 1,168 | |||||
Ending balance, value at Jun. 30, 2021 | $ 88,778 | $ 75 | $ 13,981 | $ 312 | $ 96,252 | $ (21,842) |
Balance (in shares) at Jun. 30, 2021 | 6,214,809 |
Interim Condensed Consolidate_7
Interim Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Stockholders Equity [Abstract] | ||||
Dividends per share | $ 0.03 | $ 0.03 | $ 0.06 | $ 0.06 |
Interim Condensed Consolidate_8
Interim Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 1,903 | $ 1,251 |
Adjustments to reconcile net income to cash provided by operating activities: | ||
Depreciation and amortization | 878 | 806 |
Provision for loan and lease losses | 899 | 1,430 |
Deferred income tax provision | 111 | 366 |
Net gain on sale and prepayment of investment securities | (22) | (326) |
Stock-based compensation expense | 213 | 203 |
Net amortization of securities | 152 | 170 |
Amortization of intangible assets | 183 | 220 |
Net loss on premises and equipment and other real estate | 15 | 288 |
Changes in assets and liabilities: | ||
Decrease (increase) in accrued interest receivable | 228 | (652) |
Decrease in other assets | 1,020 | 28 |
Decrease in accrued interest expense | (69) | (99) |
Decrease in other liabilities | (317) | (1,278) |
Net cash provided by operating activities | 5,194 | 2,407 |
Cash flows from investing activities: | ||
Net decrease in federal funds sold | 2 | 10,000 |
Purchases of investment securities, available-for-sale | (59,962) | (26,296) |
Proceeds from sale of investment securities, available-for-sale | 12,203 | |
Proceeds from maturities and prepayments of investment securities, available-for-sale | 25,952 | 15,513 |
Proceeds from maturities and prepayments of investment securities, held-to-maturity | 1,559 | 5,005 |
Net decrease in Federal Home Loan Bank stock | 265 | 2 |
Proceeds from the sale of premises and equipment and other real estate | 747 | 646 |
Net increase in loans | (41,103) | (21,896) |
Purchases of premises and equipment | (539) | (461) |
Net cash used in investing activities | (73,079) | (5,284) |
Cash flows from financing activities: | ||
Net increase in deposits | 55,673 | 54,628 |
Net increase in short-term borrowings | 309 | |
Net share-based compensation transactions | (7) | |
Treasury stock repurchases | (452) | |
Dividends paid | (373) | (370) |
Net cash provided by financing activities | 55,293 | 54,115 |
Net increase (decrease) in cash and cash equivalents | (12,592) | 51,238 |
Cash and cash equivalents, beginning of period | 94,415 | 57,030 |
Cash and cash equivalents, end of period | 81,823 | 108,268 |
Supplemental disclosures: | ||
Interest | 1,597 | 2,767 |
Income taxes | 578 | 185 |
Non-cash transactions: | ||
Assets acquired in settlement of loans | 515 | 854 |
Reissuance of treasury stock as compensation | $ 18 | $ 444 |
General
General | 6 Months Ended |
Jun. 30, 2021 | |
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, 2021. 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, 2020. Risks and Uncertainties 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 spread of COVID-19 and its variants, vaccination efforts, the duration of the pandemic, its impact on our customers, employees and vendors, and the continued governmental, regulatory and private sector responses, which may be precautionary, to COVID-19. 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, in March 2020, the Federal Reserve reduced the target federal funds rate by 150 basis points. The reduction in interest rates and other economic uncertainties that have arisen as a result primarily of the COVID-19 pandemic have negatively impacted 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 | 6 Months Ended |
Jun. 30, 2021 | |
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, 2020. Reclassification Certain amounts and disclosures in the notes to the prior period consolidated financial statements have been reclassified to conform to the 2021 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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Basic shares 6,328,794 6,276,001 6,316,598 6,279,079 Dilutive shares 421,000 422,000 421,000 422,000 Diluted shares 6,749,794 6,698,001 6,737,598 6,701,079 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Net income $ 953 $ 404 $ 1,903 $ 1,251 Basic net income per share $ 0.15 $ 0.07 $ 0.30 $ 0.20 Diluted net income per share $ 0.14 $ 0.06 $ 0.28 $ 0.19 Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities, settlement of derivative contracts or changes in the fair value of cash flow derivatives. Accounting Policies Recently Adopted ASU 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. ASU 2019-12 became effective for the Company on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. Pending Accounting Pronouncements ASU 2021-01, In January 2021, the FASB issued ASU 2021-01, which is in response to stakeholder concerns related to reference rate reform. The amendments in ASU 2021-01 are elective and apply to all entities that have derivative instruments that use an interest rate for managing, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2021-01 are effective immediately for all entities. The Company is currently reviewing the amendments in ASU 2021-01 but does not expect this guidance to have a material impact on its consolidated financial statements. 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 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 | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | 3 . INVESTMENT SECURITIES Details of investment securities available-for-sale and held-to-maturity as of June 30, 2021 and December 31, 2020 were as follows: Available-for-Sale June 30, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 47,269 $ 757 $ (4 ) $ 48,022 Commercial 31,688 652 (61 ) 32,279 Obligations of states and political subdivisions 3,711 117 — 3,828 Corporate notes 4,321 34 — 4,355 U.S. Treasury securities 30,202 71 (22 ) 30,251 Total $ 117,191 $ 1,631 $ (87 ) $ 118,735 Held-to-Maturity June 30, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 2,964 $ 65 $ — $ 3,029 Obligations of U.S. government-sponsored agencies 928 21 — 949 Obligations of states and political subdivisions 956 9 — 965 Total $ 4,848 $ 95 $ — $ 4,943 Available-for-Sale December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 24,680 $ 865 $ (8 ) $ 25,537 Commercial 40,849 780 (142 ) 41,487 Obligations of states and political subdivisions 4,971 137 — 5,108 Corporate notes 2,711 73 — 2,784 U.S. Treasury securities 10,078 — (1 ) 10,077 Total $ 83,289 $ 1,855 $ (151 ) $ 84,993 Held-to-Maturity December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 4,302 $ 75 $ — $ 4,377 Obligations of U.S. government-sponsored agencies 1,120 34 — 1,154 Obligations of states and political subdivisions 1,007 21 — 1,028 Total $ 6,429 $ 130 $ — $ 6,559 The scheduled maturities of investment securities available-for-sale and held-to-maturity as of June 30, 2021 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 $ 84 $ 84 $ 402 $ 407 Maturing after one to five years 21,185 21,369 360 361 Maturing after five to ten years 64,499 65,480 2,447 2,505 Maturing after ten years 31,423 31,802 1,639 1,670 Total $ 117,191 $ 118,735 $ 4,848 $ 4,943 For purposes of the maturity table, mortgage-backed securities, which are not due at a single maturity date, have been allocated over maturity groupings based on the weighted-average contractual maturities of underlying collateral. The mortgage-backed securities generally mature earlier than their weighted-average contractual maturities because of principal prepayments. The following tables reflect gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of June 30, 2021 and December 31, 2020. Available-for-Sale June 30, 2021 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Residential $ 183 $ — $ 781 $ (4 ) Commercial 453 — 3,188 (61 ) U.S. Treasury securities 10,156 (22 ) — — Total $ 10,792 $ (22 ) $ 3,969 $ (65 ) Held-to-Maturity June 30, 2021 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Commercial $ 48 $ — $ — $ — Total $ 48 $ — $ — $ — Available-for-Sale December 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 $ 2,334 $ (1 ) $ 1,019 $ (7 ) Commercial 2,630 (1 ) 3,327 (141 ) U.S. Treasury securities 10,077 (1 ) — — Total $ 15,041 $ (3 ) $ 4,346 $ (148 ) Held-to-Maturity December 31, 2020 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Commercial $ 412 $ — $ — $ — Total $ 412 $ — $ — $ — 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 June 30, 2021, 10 debt securities had been in a loss position for more than 12 months, and six debt securities had been in a loss position for less than 12 months. As of December 31, 2020, nine debt securities had been in a loss position for more than 12 months, and 11 debt securities had been in a loss position for less than 12 months. As of both June 30, 2021 and December 31, 2020, 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 year ended December 31, 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 during 2020 and the first half of 2021. Most of the securities in an unrealized loss position as of both June 30, 2021 and December 31, 2020 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 no t recognize any other-than-temporary impairments as of June 30 , 202 1 or December 31, 20 20 . Investment securities with a carrying value of $57.1 million and $72.9 million as of June 30, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and for other purposes. |
Loans and Allowance for Loan an
Loans and Allowance for Loan and Lease Losses | 6 Months Ended |
Jun. 30, 2021 | |
Allowance For Loan And Lease Losses Writeoffs Net [Abstract] | |
Loans and Allowance for Loan and Lease Losses | 4 . LOANS AND ALLOWANCE FOR LOAN AND LEASE LOSSES Portfolio Segments The Company has divided the loan portfolio into the following portfolio segments based on risk characteristics: Construction, land development and other land loans – Commercial construction, land and land development loans include loans for the development of residential housing projects, loans for the development of commercial and industrial use property, loans for the purchase and improvement of raw land and loans primarily for agricultural production that are secured by farmland. These loans are secured in whole or in part by the underlying real estate collateral and are generally guaranteed by the principals of the borrowing entity. Secured by 1-4 family residential properties – These loans include conventional mortgage loans on one-to-four family residential properties. 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, horse trailers and cargo trailers. As of June 30, 2021 and December 31, 2020, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: June 30, 2021 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 53,425 $ — $ 53,425 Secured by 1-4 family residential properties 75,968 2,847 78,815 Secured by multi-family residential properties 53,811 — 53,811 Secured by non-farm, non-residential properties 191,398 — 191,398 Commercial and industrial loans (1) 77,359 — 77,359 Consumer loans: Direct consumer 6,347 20,590 26,937 Branch retail — 31,688 31,688 Indirect sales 176,116 — 176,116 Total loans 634,424 55,125 689,549 Less: Unearned interest, fees and deferred cost (290 ) 4,357 4,067 Allowance for loan and lease losses 6,464 1,262 7,726 Net loans $ 628,250 $ 49,506 $ 677,756 December 31, 2020 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 37,282 $ — $ 37,282 Secured by 1-4 family residential properties 85,271 3,585 88,856 Secured by multi-family residential properties 54,326 — 54,326 Secured by non-farm, non-residential properties 184,528 — 184,528 Commercial and industrial loans (1) 81,735 — 81,735 Consumer loans: Direct consumer 6,344 23,444 29,788 Branch retail — 32,094 32,094 Indirect sales 141,514 — 141,514 Total loans 591,000 59,123 650,123 Less: Unearned interest, fees and deferred cost (213 ) 4,492 4,279 Allowance for loan and lease losses 5,917 1,553 7,470 Net loans $ 585,296 $ 53,078 $ 638,374 (1) Includes equipment financing leases and PPP loans. As of June 30, 2021 and December 31, 2020, equipment finance leases totaled $6.3 million and $7.0 million, respectively, and PPP loans totaled $11.6 million and $11.9 million, respectively. The Company makes commercial, real estate and installment loans to its customers. Although the Company has a diversified loan portfolio, 54.7% and 56.1% of the portfolio was concentrated in loans secured by real estate as of June 30, 2021 and December 31, 2020, respectively. Loans with a carrying value of $58.6 million and $36.1 million were pledged as collateral to secure Federal Home Loan Bank (“FHLB”) borrowings as of June 30, 2021 and December 31, 2020, 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 $0.3 million and $0.4 million as of June 30, 2021 and December 31, 2020, respectively. During the six months ended June 30, 2021, there were no new loans to these parties, and repayments by active related parties were $0.1 million. During the year ended December 31, 2020, there were no new loans to these parties, and repayments by active related parties were $0.5 million. Allowance for Loan and Lease Losses The following tables present changes in the allowance for loan and lease losses during the six months ended June 30, 2021 and 2020 and the related loan balances by loan type as of June 30, 2021 and 2020: As of and for the Six Months Ended June 30, 2021 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 and lease losses: Beginning balance $ 393 $ 639 $ 577 $ 1,566 $ 1,008 $ 1,202 $ 373 $ 1,712 $ 7,470 Charge-offs (22 ) (5 ) — — — (626 ) (222 ) (310 ) (1,185 ) Recoveries 21 6 — 3 9 369 107 27 542 Provision 80 112 (66 ) 346 (324 ) 14 66 671 899 Ending balance $ 472 $ 752 $ 511 $ 1,915 $ 693 $ 959 $ 324 $ 2,100 $ 7,726 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 11 $ — $ — $ 59 $ — $ — $ — $ 70 Collectively evaluated for impairment 472 741 511 1,915 634 959 324 2,100 7,656 Total allowance for loan and lease losses $ 472 $ 752 $ 511 $ 1,915 $ 693 $ 959 $ 324 $ 2,100 $ 7,726 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 687 $ — $ 1,056 $ 58 $ 22 $ — $ — $ 1,823 Collectively evaluated for impairment 53,425 78,120 53,811 190,342 77,301 26,915 31,688 176,116 687,718 Loans acquired with deteriorated credit quality — 8 — — — — — — 8 Total loans receivable $ 53,425 $ 78,815 $ 53,811 $ 191,398 $ 77,359 $ 26,937 $ 31,688 $ 176,116 $ 689,549 As of and for the Six Months Ended June 30, 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 and lease losses: Beginning balance $ 197 $ 466 $ 422 $ 964 $ 1,377 $ 1,625 $ 395 $ 316 $ 5,762 Charge-offs — (42 ) — — — (962 ) (221 ) (38 ) (1,263 ) Recoveries — 14 — 8 — 381 90 1 494 Provision 72 84 70 272 (448 ) 373 211 796 1,430 Ending balance $ 269 $ 522 $ 492 $ 1,244 $ 929 $ 1,417 $ 475 $ 1,075 $ 6,423 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 13 $ — $ — $ 62 $ 3 $ — $ — $ 78 Collectively evaluated for impairment 269 509 492 1,244 867 1,414 475 1,075 6,345 Total allowance for loan and lease losses $ 269 $ 522 $ 492 $ 1,244 $ 929 $ 1,417 $ 475 $ 1,075 $ 6,423 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 785 $ — $ 2,748 $ 62 $ 25 $ — $ — $ 3,620 Collectively evaluated for impairment 31,384 92,058 48,807 157,935 87,709 33,274 33,000 89,932 574,099 Loans acquired with deteriorated credit quality — 167 — — — — — — 167 Total loans receivable $ 31,384 $ 93,010 $ 48,807 $ 160,683 $ 87,771 $ 33,299 $ 33,000 $ 89,932 $ 577,886 Credit Quality Indicators The Company utilizes a credit grading system that provides a uniform framework for establishing and monitoring credit risk in the loan portfolio. Under this system, construction, land, multi-family real estate, other commercial real estate, and commercial and industrial loans are graded based on pre-determined risk metrics and categorized into one of nine risk grades. These risk grades can be summarized into categories described as pass, special mention, substandard, doubtful and loss, as described in further detail below. • Pass (Risk Grades 1-5): Loans in this category include obligations in which the probability of default is considered low. • Special Mention (Risk Grade 6): Loans in this category exhibit potential credit weaknesses or downward trends deserving management’s close attention. If left uncorrected, these potential weaknesses may result in the deterioration of the repayment prospects for the asset or in the Company’s credit position at some future date. Special mention loans are not adversely classified and do not expose the Company to sufficient risk to warrant adverse classification. Although a special mention asset has a higher probability of default than pass-rated categories, its default is not imminent. • Substandard (Risk Grade 7): Loans in this category have defined weaknesses that jeopardize the orderly liquidation of debt. A substandard loan is inadequately protected by the current worth and paying capacity of the obligor or by the collateral pledged, if any. Normal repayment from the borrower is in jeopardy, although no loss of principal is envisioned. There is a distinct possibility that a partial loss of interest and/or principal will occur if the deficiencies are not corrected. Loss potential, while existing in the aggregate amount of substandard assets, does not have to exist in individual assets classified as substandard. • Doubtful (Risk Grade 8): Loans classified as doubtful have all of the weaknesses found in substandard loans, with the added characteristic that the weaknesses make collection of debt in full, based on currently existing facts, conditions and values, highly questionable or improbable. Serious problems exist such that partial loss of principal is likely; however, because of certain important, reasonably specific pending factors that may work to strengthen the assets, the loans’ classification as estimated losses is deferred until a more exact status may be determined. Such pending factors may include proposed merger, acquisition or liquidation procedures, capital injection, perfection of liens on additional collateral and refinancing plans. Loans classified as doubtful may include loans to borrowers that have demonstrated a history of failing to live up to agreements. The Company did not have any loans classified as Doubtful (Risk Grade 8) as of June 30, 2021 or December 31, 2020. • Loss (Risk Grade 9): Loans are classified in this category when borrowers are deemed incapable of repayment of unsecured debt. Loans to such borrowers are considered uncollectable and of such little value that continuance as active assets of the Company is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather that it is not prudent to defer writing off these assets, even though partial recovery may be realized in the future. The Company did not have any loans classified as Loss (Risk Grade 9) as of June 30, 2021 or December 31, 2020. 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 June 30, 2021: June 30, 2021 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 51,303 $ 2,120 $ 2 $ 53,425 Secured by multi-family residential properties 51,270 2,541 — 53,811 Secured by non-farm, non-residential properties 178,582 11,777 1,039 191,398 Commercial and industrial loans 76,212 480 667 77,359 Total $ 357,367 $ 16,918 $ 1,708 $ 375,993 As a percentage of total loans 95.05 % 4.50 % 0.45 % 100.00 % June 30, 2021 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 77,428 $ 1,387 $ 78,815 Consumer loans: Direct consumer 26,913 24 26,937 Branch retail 31,688 — 31,688 Indirect sales 176,116 — 176,116 Total $ 312,145 $ 1,411 $ 313,556 As a percentage of total loans 99.55 % 0.45 % 100.00 % The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2020: December 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 $ 36,719 $ 558 $ 5 $ 37,282 Secured by multi-family residential properties 54,326 — — 54,326 Secured by non-farm, non-residential properties 170,338 8,572 5,618 184,528 Commercial and industrial loans 79,754 542 1,439 81,735 Total $ 341,137 $ 9,672 $ 7,062 $ 357,871 As a percentage of total loans 95.33 % 2.70 % 1.97 % 100.00 % December 31, 2020 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 86,665 $ 2,191 $ 88,856 Consumer loans: Direct consumer 29,679 109 29,788 Branch retail 31,816 278 32,094 Indirect sales 141,514 — 141,514 Total $ 289,674 $ 2,578 $ 292,252 As a percentage of total loans 99.12 % 0.88 % 100.00 % The following table provides an aging analysis of past due loans by class as of June 30, 2021: As of June 30, 2021 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 $ — $ — $ — $ — $ 53,425 $ 53,425 $ — Secured by 1-4 family residential properties 196 14 79 289 78,526 78,815 — Secured by multi-family residential properties — — — — 53,811 53,811 — Secured by non-farm, non-residential properties 12 — — 12 191,386 191,398 — Commercial and industrial loans 24 6 284 314 77,045 77,359 — Consumer loans: Direct consumer 161 90 64 315 26,622 26,937 — Branch retail 101 27 67 195 31,493 31,688 — Indirect sales 112 36 55 203 175,913 176,116 — Total $ 606 $ 173 $ 549 $ 1,328 $ 688,221 $ 689,549 $ — As a percentage of total loans 0.09 % 0.03 % 0.08 % 0.19 % 99.81 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2020: As of December 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 $ — $ — $ — $ — $ 37,282 $ 37,282 $ — Secured by 1-4 family residential properties 799 244 72 1,115 87,741 88,856 — Secured by multi-family residential properties — — — — 54,326 54,326 — Secured by non-farm, non-residential properties 287 — 1,337 1,624 182,904 184,528 — Commercial and industrial loans 683 561 — 1,244 80,491 81,735 — Consumer loans: Direct consumer 257 191 214 662 29,126 29,788 — Branch retail 176 61 144 381 31,713 32,094 — Indirect sales 234 39 49 322 141,192 141,514 — Total $ 2,436 $ 1,096 $ 1,816 $ 5,348 $ 644,775 $ 650,123 $ — As a percentage of total loans 0.37 % 0.17 % 0.28 % 0.82 % 99.18 % 100.00 % The following table provides an analysis of non-accruing loans by class as of June 30, 2021 and December 31, 2020: Loans on Non-Accrual Status June 30, 2021 December 31, 2020 (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 2 $ 12 Secured by 1-4 family residential properties 780 1,248 Secured by multi-family residential properties — — Secured by non-farm, non-residential properties — 1,340 Commercial and industrial loans 310 74 Consumer loans: Direct consumer 65 219 Branch retail 67 144 Indirect sales 55 49 Total loans $ 1,279 $ 3,086 COVID-19 Loan Deferments and Risk Identification In accordance with section 4013 of the Coronavirus Aid, Relief and Economic Security (CARES) Act and interpretive guidance from banking regulators, in 2020 the Company implemented initiatives to provide short-term payment relief to borrowers who were negatively impacted by COVID-19. As of June 30, 2021, loans that continued to be in pandemic-related deferment totaled $0.6 million, compared to $8.1 million as of December 31, 2020. In addition, at the onset of the pandemic, management identified certain categories of loans that it believed to be at “high-risk” of potential default or credit loss due to the COVID-19 pandemic. The “high-risk” category, which includes loans collateralized by hotels/motels and dine-in restaurants, decreased to $12.0 million, or 1.7% of the loan portfolio, as of June 30, 2021, compared to $13.5 million, or 2.1% of the loan portfolio, as of December 31, 2020. The spread of COVID-19 has created a global public health crisis that has resulted in widespread volatility and deterioration in household, business, economic and market conditions. Although loans in deferment status and loans in the “high-risk” category have decreased, the Company will continue to closely monitor the impact of changing economic circumstances on the Company’s loan portfolio. 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. PPP loans are 100% guaranteed by the SBA and are forgivable in whole or in part if the proceeds are used by the borrower for payroll and other permitted purposes in accordance with the requirements of the PPP (as discussed in greater detail below). If not forgiven in whole or in part, the loans carry a fixed interest rate of 1.00% per annum with payments deferred for 24 weeks from the date of the loan, plus another 10 months after the 24-week period. As compensation for originating a PPP loan, the Company receives lender processing fees from the SBA ranging from 1% to 5% of the original loan balance, depending on the size of the loan. Processing fees, net of origination costs, are deferred and amortized over the contractual life of the loan as interest income. Upon forgiveness of a loan by the SBA, any unrecognized net deferred fees will be recognized as interest income in that period. PPP loans were initially originated for a term of two years; however, a June 5, 2020 amendment to the CARES Act (i) provided for a five-year minimum loan term for loans originated after that date and (ii) permitted lenders and borrowers to amend loans previously issued under two-year terms to provide for terms of five to ten years if mutually agreed upon by both the lender and the borrower. As of June 30, 2021, 151 PPP loans with an aggregate principal balance of $11.6 million remained outstanding. Of this amount, $5.8 million of the loans were originated under two-year terms, and $5.8 million of the loans were originated under five-year terms. A borrower is eligible for forgiveness of principal and accrued interest on its PPP loan to the extent that the proceeds were used to cover eligible payroll costs, interest costs, rent and utility costs over a period of between eight and twenty-four weeks after the loan is made, as long as the borrower retains its employees and their compensation levels. The SBA began processing forgiveness payments during the fourth quarter of 2020. As of June 30, 2021, 120 of the Company’s borrowers had received PPP loan forgiveness. Amortized PPP loan fees, which are recognized in interest and fees on loans, totaled approximately $242 thousand for the six months ended June 30, 2021 and $161 thousand for the year ended December 31, 2020. As of June 30, 2021, the Company had approximately $344 thousand in remaining net deferred SBA PPP loan fees. Impaired Loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the related loan agreement. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the liquidation of the collateral. At the Bank, all loans of $0.5 million or more that have a credit quality risk grade of seven or above are identified for impairment analysis. At management’s discretion, additional loans may be impaired based on homogeneous factors such as changes in the nature and volume of the portfolio, portfolio quality, adequacy of the underlying collateral value, loan concentrations, historical charge-off trends and economic conditions that may affect the borrower’s ability to pay. At ALC, all loans of $50 thousand or more that are 90 days or more past due are identified for impairment analysis. As of both June 30, 2021 and December 31, 2020, 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 June 30, 2021, the carrying amount of the Company’s impaired loans consisted of the following: June 30, 2021 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 678 678 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,056 1,056 — Commercial and industrial — — — Direct consumer 22 22 — Total loans with no related allowance recorded $ 1,756 $ 1,756 $ — 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 17 17 11 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 58 58 59 Direct consumer — — — Total loans with an allowance recorded $ 75 $ 75 $ 70 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 695 695 11 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,056 1,056 — Commercial and industrial 58 58 59 Direct consumer 22 22 — Total impaired loans $ 1,831 $ 1,831 $ 70 As of December 31, 2020, the carrying amount of the Company’s impaired loans consisted of the following: December 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 885 885 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 5,594 5,594 — Commercial and industrial 530 530 — Direct consumer — — — Total loans with no related allowance recorded $ 7,009 $ 7,009 $ — 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 18 18 12 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 60 60 61 Direct consumer 24 24 1 Total loans with an allowance recorded $ 102 $ 102 $ 74 Total impaired loans Loans secured by real estate . Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 903 903 12 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 5,594 5,594 — Commercial and industrial 590 590 61 Direct consumer 24 24 1 Total impaired loans $ 7,111 $ 7,111 $ 74 The average net investment in impaired loans and interest income recognized and received on impaired loans during the six months ended June 30, 2021 and the year ended December 31, 2020 were as follows: Six Months Ended June 30, 2021 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 868 25 25 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 3,700 115 83 Commercial and industrial 433 19 17 Direct consumer 23 1 2 Total $ 5,024 $ 160 $ 127 Year Ended December 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 923 10 10 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,467 28 28 Commercial and industrial 118 7 7 Direct consumer 25 1 2 Total $ 3,533 $ 46 $ 47 Loans on which the accrual of interest has been discontinued amounted to $1.3 million and $3.1 million as of June 30, 2021 and December 31, 2020, respectively. If interest on those loans had been accrued, there would have been $39 thousand and $161 thousand of interest accrued for the periods ended June 30, 2021 and December 31, 2020, respectively. Interest income related to these loans for the six months ended June 30, 2021 and the year ended December 31, 2020 was $17 thousand and $42 thousand, respectively. Troubled Debt Restructurings Troubled debt restructurings include loans with respect to which concessions have been granted to borrowers that generally would not have otherwise been considered had the borrowers not been experiencing financial difficulty. The concessions granted may include payment schedule modifications, interest rate reductions, maturity date extensions, modifications of note structure, principal balance reductions or some combination of these concessions. There were two loans with balances totaling $6.5 million modified with concessions granted during the six months ended June 30, 2021 and no loans modified with concessions granted during the year ended December 31, 2020. Restructured loans may involve loans remaining on non-accrual, moving to non-accrual or continuing on accrual status, depending on the individual facts and circumstances of the borrower. Non-accrual restructured loans are included with all other non-accrual loans. In addition, all accruing restructured loans are reported as troubled debt restructurings. Generally, restructured loans remain on non-accrual until the customer has attained a sustained period of repayment performance under the modified loan terms (generally a minimum of six months). However, performance prior to the restructuring, or significant events that coincide with the restructuring, are considered in assessing whether the borrower can meet the new terms and whether the loan should be returned to or maintained on non-accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, then the loan remains on non-accrual. The Company did not have any non-accruing loans that were previously restructured and that remained on non-accrual status as of both June 30, 2021 and December 31, 2020. For both the six months ended June 30, 2021 and the year ended December 31, 2020, the Company had no loans that were restored to accrual status based on a sustained period of repayment performance. The following table provides, as of June 30, 2021 and December 31, 2020, 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. June 30, 2021 December 31, 2020 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 $ — 1 $ 107 $ — Secured by 1-4 family residential properties 2 59 12 2 59 12 Secured by non-farm, non-residential properties 2 621 621 — — — Commercial loans 2 116 35 2 116 39 Total 7 $ 903 $ 668 5 $ 282 $ 51 As of June 30, 2021 and December 31, 2020, no loans that previously had been modified in a troubled debt restructuring had defaulted subsequent to modification. Restructured loan modifications primarily included maturity date extensions and payment schedule modifications. There were no modifications to principal balances of the loans that were restructured. Accordingly, there was no impact on the Company’s allowance for loan and lease losses resulting from the modifications. All loans with a principal balance of $ 0.5 million or more that have been modified in a troubled debt restructuring are considered impaired and evaluated individually for impairment. The nature and extent of impairment of restructured loans, including those that have experienced a subsequent payment default, are considered in the determination of an appropriate level of allowance for loan and lease losses. This evaluation resulted in an allowance for loan and lease losses attributable to such restructured loans of $7 thousand and $ 1 thousand as of June 30 , 202 1 and December 31, 20 20, respectively . |
Other Real Estate Owned and Rep
Other Real Estate Owned and Repossessed Assets | 6 Months Ended |
Jun. 30, 2021 | |
Other Real Estate [Abstract] | |
Other Real Estate Owned and Repossessed Assets | 5 . OTHER REAL ESTATE OWNED AND REPOSSESSED ASSETS Other Real Estate Owned Other real estate and certain other assets acquired in foreclosure are reported at the net realizable value of the property, less estimated costs to sell. The following table summarizes foreclosed property activity as of the six months ended June 30, 2021 and 2020: June 30, 2021 June 30, 2020 (Dollars in Thousands) Beginning balance $ 949 $ 1,078 Additions (1) — 293 Sales proceeds (142 ) (358 ) Gross gains 56 38 Gross losses — (38 ) Net gains 56 — Impairment (17 ) (10 ) Ending balance $ 846 $ 1,003 (1) Additions to other real estate owned (“OREO”) include transfers from loans, other assets and capitalized improvements to existing OREO properties. Valuation adjustments are recorded in other non-interest expense and are primarily post-foreclosure write-downs that are a result of continued declining property values based on updated appraisals or other indications of value, such as offers to purchase. Net realizable value less estimated costs to sell of foreclosed residential real estate held by the Company was zero and $0.1 million as of June 30, 2021 and 2020, respectively. In addition, the Company did not hold any consumer mortgage loans collateralized by residential real estate that were in the process of foreclosure as of both June 30, 2021 and 2020. 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 six months ended June 30, 2021 and 2020: June 30, 2021 June 30, 2020 (Dollars in Thousands) Beginning balance $ 245 $ 256 Transfers from loans 515 561 Sales proceeds (588 ) (270 ) Gross gains — — Gross losses (67 ) (286 ) Net losses (67 ) (286 ) Impairment — — Ending balance $ 105 $ 261 Repossessed assets are included in Other Assets in the Company’s condensed consolidated balance sheet. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2021 | |
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 The Peoples Bank (“TPB”) in 2018. Goodwill impairment was neither indicated nor recorded during the three months ended June 30, 2021 or the year ended December 31, 2020. Goodwill is tested for impairment annually, or more often if circumstances warrant. If, as a result of impairment testing, it is determined that the implied fair value of goodwill is lower than its carrying amount, impairment is indicated, and goodwill must be written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the consolidated financial statements. Goodwill totaled $7.4 million as of both June 30, 2021 and December 31, 2020. Core deposit premiums are amortized over a seven-year The Company’s goodwill and other intangible assets (carrying basis and accumulated amortization) as of June 30, 2021 were as follows: June 30, 2021 (Dollars in Thousands) Goodwill $ 7,435 Core deposit intangible: Gross carrying amount 2,048 Accumulated amortization (1,256 ) Core deposit intangible, net 792 Total $ 8,227 The Company’s estimated remaining amortization expense on intangibles as of June 30, 2021 was as follows: Amortization Expense (Dollars in Thousands) 2021 158 2022 268 2023 195 2024 122 2025 49 Total $ 792 The net carrying amount of the Company’s core deposit premiums is not considered recoverable if it exceeds the sum of the undiscounted cash flows expected to result from use and eventual disposition. That assessment is based on the carrying amount of the intangible assets subject to amortization at the date on which it is tested for recoverability. Intangible assets subject to amortization are tested by the Company for recoverability whenever events or changes in circumstances indicate that their carrying amount may not be recoverable. |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowings | 7 . BORROWINGS Short-Term Borrowings Short-term borrowings consist of federal funds purchased, securities sold under repurchase agreements, and short-term FHLB advances with original maturities of one year or less. Short-term borrowings totaled $10.0 million as of both June 30, 2021 and December 31, 2020. • 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 June 30, 2021 and December 31, 2020, there were no federal funds purchased outstanding. • Securities sold under repurchase agreements, which are secured borrowings, generally are reflected at the amount of cash received in connection with the transaction. The Bank may be required to provide additional collateral based on the fair value of the underlying securities. The Bank monitors the fair value of the underlying securities on a daily basis. Securities sold under repurchase agreements as of both June 30, 2021 and December 31, 2020 totaled $17 thousand. • Short-term FHLB advances are secured borrowings available to the Bank as an alternative funding source. As of both June 30, 2021 and December 31, 2020, the Bank had $10.0 million in outstanding FHLB advances with original maturities of less than one year. Long-Term Borrowings The Company may use FHLB advances with original maturities of more than one year as an alternative to funding sources with similar maturities, such as certificates of deposit or other deposit programs. These advances generally offer more attractive rates than other mid-term financing options. They are also flexible, allowing the Company to quickly obtain the necessary maturities and rates that best suit its overall asset/liability strategy. FHLB advances with an original maturity of more than one year are classified as long-term. As of both June 30, 2021 and December 31, 2020, the Company did not have any long-term FHLB advances outstanding. Available Credit As an additional funding source, the Company has available unused lines of credit with correspondent banks, the Federal Reserve and the FHLB. Certain of these funding sources are subject to underlying collateral. As of June 30, 2021 and December 31, 2020, the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements June 30, 2021 December 31, 2020 Correspondent banks None $44.8 million $44.8 million Federal Reserve (discount window) Subject to collateral $1.3 million $1.6 million FHLB advances (1) Subject to collateral $227.9 million $225.8 million (1) These amounts represent the total remaining credit the Company has from the FHLB, but this credit can only be utilized to the extent that underlying collateral exists. Assets pledged (including loans and investment securities) associated with FHLB advances and letters of credit totaled $58.6 million and $36.1 million as of June 30, 2021 and December 31, 2020, respectively. The Company’s collateral exposure with the FHLB in the form of advances and letters of credit was $40.0 million and $20.0 million as of June 30, 2021 and December 31, 2020, respectively, leaving an excess of collateral of $18.6 million and $16.1 million available to utilize for additional credit as of the respective dates. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 8 . INCOME TAXES The provision for income taxes was $0.5 million and $0.4 million for the six-month periods ended June 30, 2021 and 2020, respectively. The Company’s effective tax rate was 22.1% and 23.3%, 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 $1.7 million and $2.0 million as of June 30, 2021 and December 31, 2020, 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 and $3.3 million as of June 30, 2021 and December 31, 2020, respectively. Non-employee directors may elect to defer payment of all or any portion of their Bancshares and Bank director fees under Bancshares’ Non-Employee Directors’ Deferred Compensation Plan (the “Deferral Plan”). The Deferral Plan permits non-employee directors to invest their directors’ fees and to receive the adjusted value of the deferred amounts in cash and/or shares of Bancshares’ common stock. Neither Bancshares nor the Bank makes any contribution to participants’ accounts under the Deferral Plan. As of June 30, 2021 and December 31, 2020, a total of 115,506 and 111,419 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 additional paid-in capital. The Company may use issued shares or shares of treasury stock to satisfy these obligations when due. |
Stock Awards
Stock Awards | 6 Months Ended |
Jun. 30, 2021 | |
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 $0.2 million for both of the six-month periods ended June 30, 2021 and 2020. 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. The Company did not grant any stock option awards during the six months ended June 30, 2021. The following table summarizes the Company’s stock option activity for the periods presented. Six Months Ended June 30, 2021 June 30, 2020 Number of Shares Average Exercise Price Number of Shares Average Exercise Price Options: Outstanding, beginning of period 421,000 $ 9.79 412,800 $ 9.72 Granted — — 10,200 11.95 Exercised — — 666 10.75 Expired — — — — Forfeited — — 334 10.75 Options outstanding, end of period 421,000 $ 9.79 422,000 $ 9.77 Options exercisable, end of period 396,095 $ 9.74 353,183 $ 9.59 The aggregate intrinsic value of stock options outstanding (calculated as the amount by which the market value of underlying stock exceeds the exercise price of the option) was approximately $0.7 million and zero as of June 30, 2021 and 2020, respectively. Restricted Stock During the six months ended June 30, 2021 and 2020, respectively, 37,930 shares and 28,460 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 | 6 Months Ended |
Jun. 30, 2021 | |
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 13 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 and six months ended June 30, 2021 and 2020: Location in the Condensed Three Months Ended Six Months Ended Consolidated Statements of Operations June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (Dollars in Thousands) (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 209 $ 212 $ 418 $ 423 Operating lease income (2) Lease income $ 202 $ 212 $ 411 $ 424 (1) Includes short-term lease costs. For the three- and six-month periods ended June 30, 2021 and 2020, 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 June 30, 2021: Location in the Condensed Consolidated Balance Sheet June 30, 2021 (Dollars in Thousands) Operating lease right-of-use assets Other assets $ 2,813 Operating lease liabilities Other liabilities $ 2,878 Weighted-average remaining lease term (in years) 5.42 Weighted-average discount rate 3.04 % The following table provides supplemental lease information for the Condensed Consolidated Statements of Cash Flows for the six months ended June 30, 2021 and 2020: Six Months Ended June 30, 2021 June 30, 2020 (Dollars in Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 349 $ 373 The following table is a schedule of remaining future minimum lease payments for operating leases that had an initial or remaining non-cancellable lease term in excess of one year as of June 30, 2021: Minimum Rental Payments (Dollars in Thousands) 2021 $ 345 2022 625 2023 491 2024 443 2025 339 2026 and thereafter 937 Total future minimum lease payments $ 3,180 Less: Imputed interest 302 Total operating lease liabilities $ 2,878 |
Derivative Financial Instrument
Derivative Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 cash flow hedges or fair value hedges, depending upon the rate characteristic of the hedged item. Cash Flow Hedges The Bank has entered into forward interest rate swap contracts on certain variable-rate money market deposit accounts (indexed to the Federal Funds effective rate’s daily weighted average). The money market account balances are expected to exceed the notional amount for the duration of the hedges and the rates on these deposits are anticipated to move closely with changes in one-month LIBOR, or a comparable benchmark interest rate. The Bank has also entered into a forward interest rate swap contract on a variable-rate FHLB advance (indexed to one-month LIBOR) that will be renewed on a monthly basis and will remain outstanding until the hedge expiration. These interest rate swaps were designated as derivative instruments in cash flow hedges with the objective of converting the floating interest payments to a fixed rate. Under the swap arrangements, the Bank pays a fixed interest rate and receives a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount, with monthly net settlements. T here were no gains or losses reclassified from other comprehensive income (loss) for cash flow hedges for the three or six months ended June 30, 2021 and 2020. Fair Value Hedges The Bank has entered into forward interest rate swap contracts on fixed rate commercial real estate loans. The interest rate swaps were designated as derivative instruments in fair value hedges with the objective of effectively converting pools of fixed rate assets to variable rate throughout the hedge durations. Under the swap arrangements, the Bank pays a fixed interest rate and receives a variable interest rate based on one-month LIBOR, or a comparable benchmark interest rate, on the notional amount, with monthly net settlements. The Bank recognized no gains or losses on the fair value hedges for the three or six months ended June 30, 2021 and 2020. Presentation The Company has elected to offset derivative fair value amounts under master netting agreements, given that all of the Company’s hedges are with the same counterparty. The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a net basis. As of June 30, 2021 As of December 31, 2020 Notional Estimated Fair Value Notional Estimated Fair Value Amount Gain (Loss) (1) Amount Gain (Loss) (1) (Dollars in Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to fixed rate commercial real estate loans $ 20,000 $ (530 ) $ 20,000 $ (837 ) Total fair value hedges (530 ) (837 ) Cash flow hedges: Interest rate swaps related to variable-rate money market deposit accounts 20,000 (854 ) 20,000 (1,337 ) Interest rate swaps related to FHLB advances 10,000 (274 ) 10,000 (436 ) Total cash flow hedges (1,128 ) (1,773 ) Total hedges designated as hedging instruments, net $ (1,658 ) $ (2,610 ) (1) Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets. The Company has elected the last-of-layer method with respect to both of its fair value hedges. This approach allows the Company to designate as the hedged item a stated amount of the assets that are not expected to be affected by prepayments, defaults and other factors affecting the timing and amount of cash flows. Relative to the identified pools of loans, this represents the last dollar amount of the designated commercial loans, which is equivalent to the notional amounts of the derivative instruments. The following amounts were recorded on the condensed consolidated 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 June 30, 2021 (Dollars in Thousands) Loans and leases, net of allowance for loan and lease losses (1) $ 43,021 $ (530 ) (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 June 30, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $42.5 million, the cumulative basis adjustments associated with these hedging relationships were $0.5 million, and the amounts of the designated hedged items were $20.0 million. The following table presents the effect of hedging derivative instruments on the Company’s Consolidated Statements of Income. Location in the Condensed Three Months Ended Six Months Ended Consolidated Statements of Operations June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (Dollars in Thousands) (Dollars in Thousands) Interest income Interest and fees on loans $ $(63) ) $ $(44) ) $ $(124) ) $ $(35) ) Interest expense Interest on deposits 32 21 63 15 Interest expense Interest on short-term borrowings 83 65 164 75 Net interest income (expense) $ $(178) ) $ $(130) ) $ $(351) ) $ $(125) ) |
Segment Reporting
Segment Reporting | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021: Net interest income $ 7,384 $ 1,927 $ 1 $ — $ 9,312 Provision for loan and lease losses 515 (17 ) — — 498 Total non-interest income 789 154 1,201 (1,335 ) 809 Total non-interest expense 6,365 1,811 339 (116 ) 8,399 Income before income taxes 1,293 287 863 (1,219 ) 1,224 Provision for income taxes 275 71 (75 ) — 271 Net income $ 1,018 $ 216 $ 938 $ (1,219 ) $ 953 Other significant items: Total assets $ 949,711 $ 51,836 $ 94,203 $ (148,804 ) $ 946,946 Total investment securities 123,502 — 81 — 123,583 Total loans, net 671,661 49,506 — (43,411 ) 677,756 Goodwill and core deposit intangible, net 8,227 — — — 8,227 Investment in subsidiaries — — 88,228 (88,228 ) — Fixed asset additions 417 — — — 417 Depreciation and amortization expense 409 24 — — 433 Total interest income from external customers 7,719 2,340 — — 10,059 Total interest income from affiliates 413 — 2 (415 ) — For the six months ended June 30, 2021: Net interest income $ 14,472 $ 3,900 $ 4 $ — $ 18,376 Provision for loan and lease losses 820 79 — — 899 Total non-interest income 1,613 304 2,497 (2,654 ) 1,760 Total non-interest expense 12,642 3,649 748 (244 ) 16,795 Income before income taxes 2,623 476 1,753 (2,410 ) 2,442 Provision for income taxes 559 119 (139 ) — 539 Net income $ 2,064 $ 357 $ 1,892 $ (2,410 ) $ 1,903 Other significant items: Fixed asset additions 535 4 — — 539 Depreciation and amortization expense 830 48 — — 878 Total interest income from external customers 15,161 4,743 — — 19,904 Total interest income from affiliates 843 — 4 (847 ) — All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended June 30, 2020: Net interest income $ 6,442 $ 2,174 $ 7 $ — $ 8,623 Provision for loan and lease losses 530 320 — — 850 Total non-interest income 1,251 191 784 (896 ) 1,330 Total non-interest expense 6,110 2,091 538 (158 ) 8,581 Income before income taxes 1,053 (46 ) 253 (738 ) 522 Provision for income taxes 220 (14 ) (88 ) — 118 Net income $ 833 $ (32 ) $ 341 $ (738 ) $ 404 Other significant items: Total assets $ 848,376 $ 60,044 $ 90,684 $ (153,357 ) $ 845,747 Total investment securities 103,883 — 81 — 103,964 Total loans, net 561,253 56,742 — (51,933 ) 566,062 Goodwill and core deposit intangible, net 8,605 — — — 8,605 Investment in subsidiaries — — 84,718 (84,718 ) — Fixed asset additions 223 5 — — 228 Depreciation and amortization expense 376 31 — — 407 Total interest income from external customers 6,872 2,907 1 — 9,780 Total interest income from affiliates 733 — 6 (739 ) — For the six months ended June 30, 2020: Net interest income $ 12,922 $ 4,574 $ 13 $ — $ 17,509 Provision for loan and lease losses 778 652 — — 1,430 Total non-interest income 2,345 428 2,018 (2,164 ) 2,627 Total non-interest expense 12,266 4,260 894 (345 ) 17,075 Income before income taxes 2,223 90 1,137 (1,819 ) 1,631 Provision for income taxes 494 37 (151 ) — 380 Net income $ 1,729 $ 53 $ 1,288 $ (1,819 ) $ 1,251 Other significant items: Fixed asset additions 442 19 — — 461 Depreciation and amortization expense 742 64 — — 806 Total interest income from external customers 14,129 6,047 1 — 20,177 Total interest income from affiliates 1,473 — 12 (1,485 ) — |
Other Operating Income and Expe
Other Operating Income and Expense | 6 Months Ended |
Jun. 30, 2021 | |
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 and six months ended June 30, 2021 and 2020 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Bank-owned life insurance $ 109 $ 107 $ 217 $ 215 Credit insurance commissions and fees (18 ) 45 87 198 Auto Club revenue 37 18 56 53 ATM fee income 155 116 291 216 Wire transfer fees 17 15 31 28 Gain on sales of premises and equipment and other assets — 8 — 8 Other income 45 44 116 159 Total $ 345 $ 353 $ 798 $ 877 All of the Company’s revenue that is subject to ASU Revenue from Contracts with Customers Other Operating Expense Other operating expense for the three and six months ended June 30, 2021 and 2020 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Postage, stationery and supplies $ 197 $ 218 $ 412 $ 432 Telephone/data communication 227 229 459 452 Advertising and marketing 53 42 82 86 Travel and business development 39 23 67 149 Collection and recoveries 64 60 110 145 Other services 79 85 143 176 Insurance expense 152 141 315 303 FDIC insurance and state assessments 177 116 330 196 Loss on sales of premises and equipment and other assets 22 121 54 287 Core deposit intangible amortization 92 109 183 219 Other real estate/foreclosure expense, net (20 ) 22 (13 ) 41 Other expense 466 402 1,027 744 Total $ 1,548 $ 1,568 $ 3,169 $ 3,230 |
Guarantees, Commitments and Con
Guarantees, Commitments and Contingencies | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Guarantees, Commitments and Contingencies | 1 5 . GUARANTEES, COMMITMENTS AND CONTINGENCIES Credit The Bank’s exposure to credit loss in the event of nonperformance by the other party for commitments to make loans and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making these commitments as it does for on-balance sheet instruments. In the normal course of business, there are outstanding commitments and contingent liabilities, such as commitments to extend credit, letters of credit and others, that are not included in the consolidated financial statements. The financial instruments involve, to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the financial statements. A summary of these commitments and contingent liabilities is presented below: June 30, 2021 December 31, 2020 (Dollars in Thousands) Standby letters of credit $ — $ 180 Standby performance letters of credit $ 582 $ 580 Commitments to extend credit $ 136,114 $ 118,699 Standby letters of credit and standby performance letters of credit are contingent commitments issued by the Bank generally to guarantee the performance of a customer to a third party. The Bank has recourse against the customer for any amount that it is required to pay to a third party under a standby letter of credit or standby performance letter of credit. Revenues are recognized over the lives of the standby letters of credit and standby performance letters of credit. As of June 30, 2021 and December 31, 2020, 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 . Self-Insurance The Company is self-insured for a significant portion of employee health benefits. However, the Company maintains stop-loss coverage with third-party insurers to limit the Company’s individual claim and total exposure related to self-insurance. The Company estimates 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 June 30, 2021 and December 31, 2020. The ultimate settlement of loss contingencies and self-insurance reserves may differ significantly from amounts accrued in the Company’s consolidated financial statements. Litigation The Company is party to certain ordinary course litigation from time to time, and the Company intends to vigorously defend itself in all such litigation. In the opinion of the Company, based on review and consultation with legal counsel, the outcome of such ordinary course litigation should not have a material adverse effect on the Company’s consolidated financial statements or results of operations. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 or the year ended December 31, 2020. Fair Value Measurements on a Recurring Basis Securities Available-for-Sale Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include exchange-traded equities. Level 2 securities include U.S. Treasury and agency securities, mortgage-backed agency securities, obligations of states and political subdivisions and certain corporate, asset-backed and other securities. Level 2 fair values are obtained from quoted prices of securities with similar characteristics. In certain cases, where Level 1 or Level 2 inputs are not available, securities are classified within Level 3 of the hierarchy. Interest Rate Derivative Agreements Interest rate derivative agreements are used by the Company to mitigate risk associated with changes in interest rates. The fair value of these agreements is based on information obtained from third-party financial institutions. This information is periodically evaluated by the Company and, as necessary, corroborated against other third-party valuations. The Company classifies these derivative assets within Level 2 of the valuation hierarchy. The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. Fair Value Measurements as of June 30, 2021 Using Totals At June 30, 2021 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 $ 48,022 $ — $ 48,022 $ — Commercial 32,279 — 32,279 — Obligations of states and political subdivisions 3,828 — 3,828 — Corporate notes 4,355 — 4,355 — U.S. Treasury securities 30,251 — 30,251 — Other liabilities - derivatives 1,658 — 1,658 — Fair Value Measurements as of December 31, 2020 Using Totals At December 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 $ 25,537 $ — $ 25,537 $ — Commercial 41,487 — 41,487 — Obligations of states and political subdivisions 5,108 — 5,108 — Corporate notes 2,784 — 2,784 — U.S. Treasury securities 10,077 — 10,077 — Other liabilities - derivatives 2,610 — 2,610 — Fair Value Measurements on a Non-recurring Basis Impaired Loans Loans that are considered impaired are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due under the contractual terms of the loan agreement. Impaired loans can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price or the fair value of the collateral less estimated selling cost if the loan is collateral-dependent. For the Company, the fair value of impaired loans is primarily measured based on the value of the collateral securing the loans (typically real estate). The Company determines the fair value of the collateral based on independent appraisals performed by qualified licensed appraisers. The appraisals may include a single valuation approach or a combination of approaches, including comparable sales and income approaches. Appraised values are discounted for estimated costs to sell and may be discounted further based on management’s knowledge of the collateral, changes in market conditions since the most recent appraisal and/or management’s knowledge of the borrower and the borrower’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are evaluated by management for additional impairment at least quarterly and are adjusted accordingly. OREO and Other Assets Held-for-Sale OREO consists of properties obtained through foreclosure or in satisfaction of loans and is recorded at net realizable value, less estimated cost to sell. Estimates of fair value are generally based on third-party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes discounted based on management’s knowledge of the property and/or changes in market conditions from the date of the most recent appraisal. Such discounts are typically significant unobservable inputs for determining fair value. As of June 30, 2021 and December 31, 2020, included within OREO were certain assets that were formerly included as premises and equipment but have been removed from service, and as of the balance sheet date, were designated as assets to be disposed of by sale. These include assets associated with branches of the Bank that have been closed. When an asset is designated as held-for-sale, the Company ceases depreciation of the asset, and the asset is recorded at the lower of its carrying amount or fair value less estimated cost to sell. Estimates of fair value are generally based on third-party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes discounted based on management’s knowledge of the property and/or changes in market conditions from the date of the most recent appraisal. Such discounts are typically unobservable inputs for determining fair value. The following table presents the balances of impaired loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020: Fair Value Measurements as of June 30, 2021 Using Totals At June 30, 2021 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 $ 5 $ — $ — $ 5 OREO and other assets held-for-sale 846 — — 846 Fair Value Measurements as of December 31, 2020 Using Totals At December 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 $ 28 $ — $ — $ 28 OREO and other assets held-for-sale 949 — — 949 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 June 30, 2021. 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 June 30, 2021 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 June 30, 2021 Valuation Technique Unobservable Input Quantitative Range of Unobservable Inputs (Weighted Average) (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 5 Multiple data points, including discount to appraised value of collateral based on recent market activity Appraisal comparability adjustment (discount) 9%-10% (9.5%) OREO and other assets held-for-sale $ 846 Discount to appraised value of property based on recent market activity for sales of similar properties Appraisal comparability adjustment (discount) 9%-10% (9.5%) Impaired Loans Impaired loans are valued based on multiple data points indicating the fair value for each loan. The primary data point is the appraisal value of the underlying collateral, to which a discount is applied. Management establishes this discount or comparability adjustment based on recent sales of similar property types. As liquidity in the market increases or decreases, the comparability adjustment and the resulting asset valuation are impacted. OREO OREO under a binding contract for sale is valued based on contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Other Assets Held-for-Sale Assets designated as held-for-sale that are under a binding contract are valued based on the contract price. If no sales contract is pending for a specific property, management establishes a comparability adjustment to the appraised value based on historical activity, considering proceeds for properties sold versus the corresponding appraised value. Increases or decreases in realization for properties sold impact the comparability adjustment for similar assets remaining on the balance sheet. Fair Value of Financial Instruments 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 June 30, 2021 and December 31, 2020 were as follows: June 30, 2021 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 81,823 $ 81,823 $ 81,823 $ — $ — Investment securities available-for-sale 118,735 118,735 — 118,735 — Investment securities held-to-maturity 4,848 4,943 — 4,943 — Federal funds sold 83 83 — 83 — Federal Home Loan Bank stock 870 870 — — 870 Loans, net of allowance for loan and lease losses 677,756 682,148 — — 682,148 Liabilities: Deposits 837,885 838,482 — 838,482 — Short-term borrowings 10,017 10,017 — 10,017 — Other liabilities - derivatives 1,658 1,658 — 1,658 — December 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 94,415 $ 94,415 $ 94,415 $ — $ — Investment securities available-for-sale 84,993 84,993 — 84,993 — Investment securities held-to-maturity 6,429 6,559 — 6,559 — Federal funds sold 85 85 — 85 — Federal Home Loan Bank stock 1,135 1,135 — — 1,135 Loans, net of allowance for loan and lease losses 638,374 650,107 — — 650,107 Liabilities: Deposits 782,212 784,574 — 784,574 — Short-term borrowings 10,017 10,017 — 10,017 — Other liabilities - derivatives 2,610 2,610 — 2,610 — |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Reclassification | Reclassification Certain amounts and disclosures in the notes to the prior period consolidated financial statements have been reclassified to conform to the 2021 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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Basic shares 6,328,794 6,276,001 6,316,598 6,279,079 Dilutive shares 421,000 422,000 421,000 422,000 Diluted shares 6,749,794 6,698,001 6,737,598 6,701,079 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Net income $ 953 $ 404 $ 1,903 $ 1,251 Basic net income per share $ 0.15 $ 0.07 $ 0.30 $ 0.20 Diluted net income per share $ 0.14 $ 0.06 $ 0.28 $ 0.19 |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income, as well as unrealized holding gains and losses that arise during the period associated with the Company’s available-for-sale securities portfolio and the effective portion of cash flow hedge derivatives. In the calculation of comprehensive income, reclassification adjustments are made for gains or losses realized in the statement of operations associated with the sale of available-for-sale securities, settlement of derivative contracts or changes in the fair value of cash flow derivatives. |
Accounting Policies Recently Adopted | Accounting Policies Recently Adopted ASU 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. ASU 2019-12 became effective for the Company on January 1, 2021. The adoption of ASU 2019-12 did not have a material impact on the Company’s consolidated financial statements. Pending Accounting Pronouncements ASU 2021-01, In January 2021, the FASB issued ASU 2021-01, which is in response to stakeholder concerns related to reference rate reform. The amendments in ASU 2021-01 are elective and apply to all entities that have derivative instruments that use an interest rate for managing, discounting, or contract price alignment that is modified as a result of reference rate reform. The amendments in ASU 2021-01 are effective immediately for all entities. The Company is currently reviewing the amendments in ASU 2021-01 but does not expect this guidance to have a material impact on its consolidated financial statements. 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 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 | All of the Company’s revenue that is subject to ASU Revenue from Contracts with Customers |
Basis of Presentation (Tables)
Basis of Presentation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 Six Months Ended June 30, June 30, 2021 2020 2021 2020 Basic shares 6,328,794 6,276,001 6,316,598 6,279,079 Dilutive shares 421,000 422,000 421,000 422,000 Diluted shares 6,749,794 6,698,001 6,737,598 6,701,079 Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Net income $ 953 $ 404 $ 1,903 $ 1,251 Basic net income per share $ 0.15 $ 0.07 $ 0.30 $ 0.20 Diluted net income per share $ 0.14 $ 0.06 $ 0.28 $ 0.19 |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale and Held-to-Maturity | Details of investment securities available-for-sale and held-to-maturity as of June 30, 2021 and December 31, 2020 were as follows: Available-for-Sale June 30, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 47,269 $ 757 $ (4 ) $ 48,022 Commercial 31,688 652 (61 ) 32,279 Obligations of states and political subdivisions 3,711 117 — 3,828 Corporate notes 4,321 34 — 4,355 U.S. Treasury securities 30,202 71 (22 ) 30,251 Total $ 117,191 $ 1,631 $ (87 ) $ 118,735 Held-to-Maturity June 30, 2021 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 2,964 $ 65 $ — $ 3,029 Obligations of U.S. government-sponsored agencies 928 21 — 949 Obligations of states and political subdivisions 956 9 — 965 Total $ 4,848 $ 95 $ — $ 4,943 Available-for-Sale December 31, 2020 Gross Gross Estimated Amortized Unrealized Unrealized Fair Cost Gains Losses Value (Dollars in Thousands) Mortgage-backed securities: Residential $ 24,680 $ 865 $ (8 ) $ 25,537 Commercial 40,849 780 (142 ) 41,487 Obligations of states and political subdivisions 4,971 137 — 5,108 Corporate notes 2,711 73 — 2,784 U.S. Treasury securities 10,078 — (1 ) 10,077 Total $ 83,289 $ 1,855 $ (151 ) $ 84,993 Held-to-Maturity December 31, 2020 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value (Dollars in Thousands) Mortgage-backed securities: Commercial $ 4,302 $ 75 $ — $ 4,377 Obligations of U.S. government-sponsored agencies 1,120 34 — 1,154 Obligations of states and political subdivisions 1,007 21 — 1,028 Total $ 6,429 $ 130 $ — $ 6,559 |
Maturities of Investment Securities Available-for-Sale and Held-to-Maturity | The scheduled maturities of investment securities available-for-sale and held-to-maturity as of June 30, 2021 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 $ 84 $ 84 $ 402 $ 407 Maturing after one to five years 21,185 21,369 360 361 Maturing after five to ten years 64,499 65,480 2,447 2,505 Maturing after ten years 31,423 31,802 1,639 1,670 Total $ 117,191 $ 118,735 $ 4,848 $ 4,943 |
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 June 30, 2021 and December 31, 2020. Available-for-Sale June 30, 2021 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Residential $ 183 $ — $ 781 $ (4 ) Commercial 453 — 3,188 (61 ) U.S. Treasury securities 10,156 (22 ) — — Total $ 10,792 $ (22 ) $ 3,969 $ (65 ) Held-to-Maturity June 30, 2021 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Commercial $ 48 $ — $ — $ — Total $ 48 $ — $ — $ — Available-for-Sale December 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 $ 2,334 $ (1 ) $ 1,019 $ (7 ) Commercial 2,630 (1 ) 3,327 (141 ) U.S. Treasury securities 10,077 (1 ) — — Total $ 15,041 $ (3 ) $ 4,346 $ (148 ) Held-to-Maturity December 31, 2020 Less than 12 Months 12 Months or More Fair Value Unrealized Losses Fair Value Unrealized Losses (Dollars in Thousands) Mortgage-backed securities: Commercial $ 412 $ — $ — $ — Total $ 412 $ — $ — $ — |
Loans and Allowance for Loan _2
Loans and Allowance for Loan and Lease Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Allowance For Loan And Lease Losses Writeoffs Net [Abstract] | |
Schedule of Loan Portfolio | As of June 30, 2021 and December 31, 2020, the composition of the loan portfolio by reporting segment and portfolio segment was as follows: June 30, 2021 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 53,425 $ — $ 53,425 Secured by 1-4 family residential properties 75,968 2,847 78,815 Secured by multi-family residential properties 53,811 — 53,811 Secured by non-farm, non-residential properties 191,398 — 191,398 Commercial and industrial loans (1) 77,359 — 77,359 Consumer loans: Direct consumer 6,347 20,590 26,937 Branch retail — 31,688 31,688 Indirect sales 176,116 — 176,116 Total loans 634,424 55,125 689,549 Less: Unearned interest, fees and deferred cost (290 ) 4,357 4,067 Allowance for loan and lease losses 6,464 1,262 7,726 Net loans $ 628,250 $ 49,506 $ 677,756 December 31, 2020 Bank ALC Total (Dollars in Thousands) Real estate loans: Construction, land development and other land loans $ 37,282 $ — $ 37,282 Secured by 1-4 family residential properties 85,271 3,585 88,856 Secured by multi-family residential properties 54,326 — 54,326 Secured by non-farm, non-residential properties 184,528 — 184,528 Commercial and industrial loans (1) 81,735 — 81,735 Consumer loans: Direct consumer 6,344 23,444 29,788 Branch retail — 32,094 32,094 Indirect sales 141,514 — 141,514 Total loans 591,000 59,123 650,123 Less: Unearned interest, fees and deferred cost (213 ) 4,492 4,279 Allowance for loan and lease losses 5,917 1,553 7,470 Net loans $ 585,296 $ 53,078 $ 638,374 (1) Includes equipment financing leases and PPP loans. As of June 30, 2021 and December 31, 2020, equipment finance leases totaled $6.3 million and $7.0 million, respectively, and PPP loans totaled $11.6 million and $11.9 million, respectively. |
Allowance for Loan Losses | The following tables present changes in the allowance for loan and lease losses during the six months ended June 30, 2021 and 2020 and the related loan balances by loan type as of June 30, 2021 and 2020: As of and for the Six Months Ended June 30, 2021 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 and lease losses: Beginning balance $ 393 $ 639 $ 577 $ 1,566 $ 1,008 $ 1,202 $ 373 $ 1,712 $ 7,470 Charge-offs (22 ) (5 ) — — — (626 ) (222 ) (310 ) (1,185 ) Recoveries 21 6 — 3 9 369 107 27 542 Provision 80 112 (66 ) 346 (324 ) 14 66 671 899 Ending balance $ 472 $ 752 $ 511 $ 1,915 $ 693 $ 959 $ 324 $ 2,100 $ 7,726 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 11 $ — $ — $ 59 $ — $ — $ — $ 70 Collectively evaluated for impairment 472 741 511 1,915 634 959 324 2,100 7,656 Total allowance for loan and lease losses $ 472 $ 752 $ 511 $ 1,915 $ 693 $ 959 $ 324 $ 2,100 $ 7,726 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 687 $ — $ 1,056 $ 58 $ 22 $ — $ — $ 1,823 Collectively evaluated for impairment 53,425 78,120 53,811 190,342 77,301 26,915 31,688 176,116 687,718 Loans acquired with deteriorated credit quality — 8 — — — — — — 8 Total loans receivable $ 53,425 $ 78,815 $ 53,811 $ 191,398 $ 77,359 $ 26,937 $ 31,688 $ 176,116 $ 689,549 As of and for the Six Months Ended June 30, 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 and lease losses: Beginning balance $ 197 $ 466 $ 422 $ 964 $ 1,377 $ 1,625 $ 395 $ 316 $ 5,762 Charge-offs — (42 ) — — — (962 ) (221 ) (38 ) (1,263 ) Recoveries — 14 — 8 — 381 90 1 494 Provision 72 84 70 272 (448 ) 373 211 796 1,430 Ending balance $ 269 $ 522 $ 492 $ 1,244 $ 929 $ 1,417 $ 475 $ 1,075 $ 6,423 Ending balance of allowance attributable to loans: Individually evaluated for impairment $ — $ 13 $ — $ — $ 62 $ 3 $ — $ — $ 78 Collectively evaluated for impairment 269 509 492 1,244 867 1,414 475 1,075 6,345 Total allowance for loan and lease losses $ 269 $ 522 $ 492 $ 1,244 $ 929 $ 1,417 $ 475 $ 1,075 $ 6,423 Ending balance of loans receivable: Individually evaluated for impairment $ — $ 785 $ — $ 2,748 $ 62 $ 25 $ — $ — $ 3,620 Collectively evaluated for impairment 31,384 92,058 48,807 157,935 87,709 33,274 33,000 89,932 574,099 Loans acquired with deteriorated credit quality — 167 — — — — — — 167 Total loans receivable $ 31,384 $ 93,010 $ 48,807 $ 160,683 $ 87,771 $ 33,299 $ 33,000 $ 89,932 $ 577,886 |
Loans By Credit Quality Indicators | The tables below illustrate the carrying amount of loans by credit quality indicator as of June 30, 2021: June 30, 2021 Pass 1-5 Special Mention 6 Substandard 7 Total (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 51,303 $ 2,120 $ 2 $ 53,425 Secured by multi-family residential properties 51,270 2,541 — 53,811 Secured by non-farm, non-residential properties 178,582 11,777 1,039 191,398 Commercial and industrial loans 76,212 480 667 77,359 Total $ 357,367 $ 16,918 $ 1,708 $ 375,993 As a percentage of total loans 95.05 % 4.50 % 0.45 % 100.00 % June 30, 2021 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 77,428 $ 1,387 $ 78,815 Consumer loans: Direct consumer 26,913 24 26,937 Branch retail 31,688 — 31,688 Indirect sales 176,116 — 176,116 Total $ 312,145 $ 1,411 $ 313,556 As a percentage of total loans 99.55 % 0.45 % 100.00 % The tables below illustrate the carrying amount of loans by credit quality indicator as of December 31, 2020: December 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 $ 36,719 $ 558 $ 5 $ 37,282 Secured by multi-family residential properties 54,326 — — 54,326 Secured by non-farm, non-residential properties 170,338 8,572 5,618 184,528 Commercial and industrial loans 79,754 542 1,439 81,735 Total $ 341,137 $ 9,672 $ 7,062 $ 357,871 As a percentage of total loans 95.33 % 2.70 % 1.97 % 100.00 % December 31, 2020 Performing Nonperforming Total (Dollars in Thousands) Loans secured by real estate: Secured by 1-4 family residential properties $ 86,665 $ 2,191 $ 88,856 Consumer loans: Direct consumer 29,679 109 29,788 Branch retail 31,816 278 32,094 Indirect sales 141,514 — 141,514 Total $ 289,674 $ 2,578 $ 292,252 As a percentage of total loans 99.12 % 0.88 % 100.00 % |
Aging Analysis of Past Due Loans | The following table provides an aging analysis of past due loans by class as of June 30, 2021: As of June 30, 2021 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 $ — $ — $ — $ — $ 53,425 $ 53,425 $ — Secured by 1-4 family residential properties 196 14 79 289 78,526 78,815 — Secured by multi-family residential properties — — — — 53,811 53,811 — Secured by non-farm, non-residential properties 12 — — 12 191,386 191,398 — Commercial and industrial loans 24 6 284 314 77,045 77,359 — Consumer loans: Direct consumer 161 90 64 315 26,622 26,937 — Branch retail 101 27 67 195 31,493 31,688 — Indirect sales 112 36 55 203 175,913 176,116 — Total $ 606 $ 173 $ 549 $ 1,328 $ 688,221 $ 689,549 $ — As a percentage of total loans 0.09 % 0.03 % 0.08 % 0.19 % 99.81 % 100.00 % The following table provides an aging analysis of past due loans by class as of December 31, 2020: As of December 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 $ — $ — $ — $ — $ 37,282 $ 37,282 $ — Secured by 1-4 family residential properties 799 244 72 1,115 87,741 88,856 — Secured by multi-family residential properties — — — — 54,326 54,326 — Secured by non-farm, non-residential properties 287 — 1,337 1,624 182,904 184,528 — Commercial and industrial loans 683 561 — 1,244 80,491 81,735 — Consumer loans: Direct consumer 257 191 214 662 29,126 29,788 — Branch retail 176 61 144 381 31,713 32,094 — Indirect sales 234 39 49 322 141,192 141,514 — Total $ 2,436 $ 1,096 $ 1,816 $ 5,348 $ 644,775 $ 650,123 $ — As a percentage of total loans 0.37 % 0.17 % 0.28 % 0.82 % 99.18 % 100.00 % |
Non-accruing Loans | The following table provides an analysis of non-accruing loans by class as of June 30, 2021 and December 31, 2020: Loans on Non-Accrual Status June 30, 2021 December 31, 2020 (Dollars in Thousands) Loans secured by real estate: Construction, land development and other land loans $ 2 $ 12 Secured by 1-4 family residential properties 780 1,248 Secured by multi-family residential properties — — Secured by non-farm, non-residential properties — 1,340 Commercial and industrial loans 310 74 Consumer loans: Direct consumer 65 219 Branch retail 67 144 Indirect sales 55 49 Total loans $ 1,279 $ 3,086 |
Impaired Loans | As of June 30, 2021, the carrying amount of the Company’s impaired loans consisted of the following: June 30, 2021 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 678 678 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,056 1,056 — Commercial and industrial — — — Direct consumer 22 22 — Total loans with no related allowance recorded $ 1,756 $ 1,756 $ — 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 17 17 11 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 58 58 59 Direct consumer — — — Total loans with an allowance recorded $ 75 $ 75 $ 70 Total impaired loans Loans secured by real estate Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 695 695 11 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 1,056 1,056 — Commercial and industrial 58 58 59 Direct consumer 22 22 — Total impaired loans $ 1,831 $ 1,831 $ 70 As of December 31, 2020, the carrying amount of the Company’s impaired loans consisted of the following: December 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 885 885 — Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 5,594 5,594 — Commercial and industrial 530 530 — Direct consumer — — — Total loans with no related allowance recorded $ 7,009 $ 7,009 $ — 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 18 18 12 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties — — — Commercial and industrial 60 60 61 Direct consumer 24 24 1 Total loans with an allowance recorded $ 102 $ 102 $ 74 Total impaired loans Loans secured by real estate . Construction, land development and other land loans $ — $ — $ — Secured by 1-4 family residential properties 903 903 12 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 5,594 5,594 — Commercial and industrial 590 590 61 Direct consumer 24 24 1 Total impaired loans $ 7,111 $ 7,111 $ 74 The average net investment in impaired loans and interest income recognized and received on impaired loans during the six months ended June 30, 2021 and the year ended December 31, 2020 were as follows: Six Months Ended June 30, 2021 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 868 25 25 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 3,700 115 83 Commercial and industrial 433 19 17 Direct consumer 23 1 2 Total $ 5,024 $ 160 $ 127 Year Ended December 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 923 10 10 Secured by multi-family residential properties — — — Secured by non-farm, non-residential properties 2,467 28 28 Commercial and industrial 118 7 7 Direct consumer 25 1 2 Total $ 3,533 $ 46 $ 47 |
Loans Modified in a Troubled Debt Restructuring | The following table provides, as of June 30, 2021 and December 31, 2020, 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. June 30, 2021 December 31, 2020 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 $ — 1 $ 107 $ — Secured by 1-4 family residential properties 2 59 12 2 59 12 Secured by non-farm, non-residential properties 2 621 621 — — — Commercial loans 2 116 35 2 116 39 Total 7 $ 903 $ 668 5 $ 282 $ 51 |
Other Real Estate Owned and R_2
Other Real Estate Owned and Repossessed Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 six months ended June 30, 2021 and 2020: June 30, 2021 June 30, 2020 (Dollars in Thousands) Beginning balance $ 949 $ 1,078 Additions (1) — 293 Sales proceeds (142 ) (358 ) Gross gains 56 38 Gross losses — (38 ) Net gains 56 — Impairment (17 ) (10 ) Ending balance $ 846 $ 1,003 (1) Additions to other real estate owned (“OREO”) include transfers from loans, other assets and capitalized improvements to existing OREO properties. |
Summary of Repossessed Assets Activity | The following table summarizes repossessed asset activity as of the six months ended June 30, 2021 and 2020: June 30, 2021 June 30, 2020 (Dollars in Thousands) Beginning balance $ 245 $ 256 Transfers from loans 515 561 Sales proceeds (588 ) (270 ) Gross gains — — Gross losses (67 ) (286 ) Net losses (67 ) (286 ) Impairment — — Ending balance $ 105 $ 261 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Goodwill and Other Intangible Assets | The Company’s goodwill and other intangible assets (carrying basis and accumulated amortization) as of June 30, 2021 were as follows: June 30, 2021 (Dollars in Thousands) Goodwill $ 7,435 Core deposit intangible: Gross carrying amount 2,048 Accumulated amortization (1,256 ) Core deposit intangible, net 792 Total $ 8,227 |
Schedule of Estimated Remaining Amortization Expense | The Company’s estimated remaining amortization expense on intangibles as of June 30, 2021 was as follows: Amortization Expense (Dollars in Thousands) 2021 158 2022 268 2023 195 2024 122 2025 49 Total $ 792 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Available Unused Lines of Credit | As of June 30, 2021 and December 31, 2020, the Company’s available unused lines of credit consisted of the following: Available Unused Lines of Credit Collateral Requirements June 30, 2021 December 31, 2020 Correspondent banks None $44.8 million $44.8 million Federal Reserve (discount window) Subject to collateral $1.3 million $1.6 million FHLB advances (1) Subject to collateral $227.9 million $225.8 million |
Stock Awards (Tables)
Stock Awards (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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. The Company did not grant any stock option awards during the six months ended June 30, 2021. |
Stock Option Activity | The following table summarizes the Company’s stock option activity for the periods presented. Six Months Ended June 30, 2021 June 30, 2020 Number of Shares Average Exercise Price Number of Shares Average Exercise Price Options: Outstanding, beginning of period 421,000 $ 9.79 412,800 $ 9.72 Granted — — 10,200 11.95 Exercised — — 666 10.75 Expired — — — — Forfeited — — 334 10.75 Options outstanding, end of period 421,000 $ 9.79 422,000 $ 9.77 Options exercisable, end of period 396,095 $ 9.74 353,183 $ 9.59 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | Location in the Condensed Three Months Ended Six Months Ended Consolidated Statements of Operations June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (Dollars in Thousands) (Dollars in Thousands) Operating lease expense (1) Net occupancy and equipment $ 209 $ 212 $ 418 $ 423 Operating lease income (2) Lease income $ 202 $ 212 $ 411 $ 424 Location in the Condensed Consolidated Balance Sheet June 30, 2021 (Dollars in Thousands) Operating lease right-of-use assets Other assets $ 2,813 Operating lease liabilities Other liabilities $ 2,878 Weighted-average remaining lease term (in years) 5.42 Weighted-average discount rate 3.04 % Six Months Ended June 30, 2021 June 30, 2020 (Dollars in Thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 349 $ 373 |
Future Minimum Operating Lease Payments | Minimum Rental Payments (Dollars in Thousands) 2021 $ 345 2022 625 2023 491 2024 443 2025 339 2026 and thereafter 937 Total future minimum lease payments $ 3,180 Less: Imputed interest 302 Total operating lease liabilities $ 2,878 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Schedule of Notional Amount and Fair Value of Derivative Instruments Included on Company's Consolidated Balance Sheets on a net Basis | The following table reflects the notional amount and fair value of derivative instruments included on the Company’s Consolidated Balance Sheets on a net basis. As of June 30, 2021 As of December 31, 2020 Notional Estimated Fair Value Notional Estimated Fair Value Amount Gain (Loss) (1) Amount Gain (Loss) (1) (Dollars in Thousands) Derivatives designated as hedging instruments: Fair value hedges: Interest rate swaps related to fixed rate commercial real estate loans $ 20,000 $ (530 ) $ 20,000 $ (837 ) Total fair value hedges (530 ) (837 ) Cash flow hedges: Interest rate swaps related to variable-rate money market deposit accounts 20,000 (854 ) 20,000 (1,337 ) Interest rate swaps related to FHLB advances 10,000 (274 ) 10,000 (436 ) Total cash flow hedges (1,128 ) (1,773 ) Total hedges designated as hedging instruments, net $ (1,658 ) $ (2,610 ) (1) Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets. |
Schedule Of Cumulative Basis Adjustments For Fair Value Hedges | The following amounts were recorded on the condensed consolidated 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 June 30, 2021 (Dollars in Thousands) Loans and leases, net of allowance for loan and lease losses (1) $ 43,021 $ (530 ) (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 June 30, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $42.5 million, the cumulative basis adjustments associated with these hedging relationships were $0.5 million, and the amounts of the designated hedged items were $20.0 million. |
Schedule of Hedging Derivative Instruments' Effect on Company's Consolidated Statement of Income | The following table presents the effect of hedging derivative instruments on the Company’s Consolidated Statements of Income. Location in the Condensed Three Months Ended Six Months Ended Consolidated Statements of Operations June 30, 2021 June 30, 2020 June 30, 2021 June 30, 2020 (Dollars in Thousands) (Dollars in Thousands) Interest income Interest and fees on loans $ $(63) ) $ $(44) ) $ $(124) ) $ $(35) ) Interest expense Interest on deposits 32 21 63 15 Interest expense Interest on short-term borrowings 83 65 164 75 Net interest income (expense) $ $(178) ) $ $(130) ) $ $(351) ) $ $(125) ) |
Segment Reporting (Tables)
Segment Reporting (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
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 June 30, 2021: Net interest income $ 7,384 $ 1,927 $ 1 $ — $ 9,312 Provision for loan and lease losses 515 (17 ) — — 498 Total non-interest income 789 154 1,201 (1,335 ) 809 Total non-interest expense 6,365 1,811 339 (116 ) 8,399 Income before income taxes 1,293 287 863 (1,219 ) 1,224 Provision for income taxes 275 71 (75 ) — 271 Net income $ 1,018 $ 216 $ 938 $ (1,219 ) $ 953 Other significant items: Total assets $ 949,711 $ 51,836 $ 94,203 $ (148,804 ) $ 946,946 Total investment securities 123,502 — 81 — 123,583 Total loans, net 671,661 49,506 — (43,411 ) 677,756 Goodwill and core deposit intangible, net 8,227 — — — 8,227 Investment in subsidiaries — — 88,228 (88,228 ) — Fixed asset additions 417 — — — 417 Depreciation and amortization expense 409 24 — — 433 Total interest income from external customers 7,719 2,340 — — 10,059 Total interest income from affiliates 413 — 2 (415 ) — For the six months ended June 30, 2021: Net interest income $ 14,472 $ 3,900 $ 4 $ — $ 18,376 Provision for loan and lease losses 820 79 — — 899 Total non-interest income 1,613 304 2,497 (2,654 ) 1,760 Total non-interest expense 12,642 3,649 748 (244 ) 16,795 Income before income taxes 2,623 476 1,753 (2,410 ) 2,442 Provision for income taxes 559 119 (139 ) — 539 Net income $ 2,064 $ 357 $ 1,892 $ (2,410 ) $ 1,903 Other significant items: Fixed asset additions 535 4 — — 539 Depreciation and amortization expense 830 48 — — 878 Total interest income from external customers 15,161 4,743 — — 19,904 Total interest income from affiliates 843 — 4 (847 ) — All Bank ALC Other Eliminations Consolidated (Dollars in Thousands) As of and for the three months ended June 30, 2020: Net interest income $ 6,442 $ 2,174 $ 7 $ — $ 8,623 Provision for loan and lease losses 530 320 — — 850 Total non-interest income 1,251 191 784 (896 ) 1,330 Total non-interest expense 6,110 2,091 538 (158 ) 8,581 Income before income taxes 1,053 (46 ) 253 (738 ) 522 Provision for income taxes 220 (14 ) (88 ) — 118 Net income $ 833 $ (32 ) $ 341 $ (738 ) $ 404 Other significant items: Total assets $ 848,376 $ 60,044 $ 90,684 $ (153,357 ) $ 845,747 Total investment securities 103,883 — 81 — 103,964 Total loans, net 561,253 56,742 — (51,933 ) 566,062 Goodwill and core deposit intangible, net 8,605 — — — 8,605 Investment in subsidiaries — — 84,718 (84,718 ) — Fixed asset additions 223 5 — — 228 Depreciation and amortization expense 376 31 — — 407 Total interest income from external customers 6,872 2,907 1 — 9,780 Total interest income from affiliates 733 — 6 (739 ) — For the six months ended June 30, 2020: Net interest income $ 12,922 $ 4,574 $ 13 $ — $ 17,509 Provision for loan and lease losses 778 652 — — 1,430 Total non-interest income 2,345 428 2,018 (2,164 ) 2,627 Total non-interest expense 12,266 4,260 894 (345 ) 17,075 Income before income taxes 2,223 90 1,137 (1,819 ) 1,631 Provision for income taxes 494 37 (151 ) — 380 Net income $ 1,729 $ 53 $ 1,288 $ (1,819 ) $ 1,251 Other significant items: Fixed asset additions 442 19 — — 461 Depreciation and amortization expense 742 64 — — 806 Total interest income from external customers 14,129 6,047 1 — 20,177 Total interest income from affiliates 1,473 — 12 (1,485 ) — |
Other Operating Income and Ex_2
Other Operating Income and Expense (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Other Income And Expenses [Abstract] | |
Other Operating Income | Other operating income for the three and six months ended June 30, 2021 and 2020 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Bank-owned life insurance $ 109 $ 107 $ 217 $ 215 Credit insurance commissions and fees (18 ) 45 87 198 Auto Club revenue 37 18 56 53 ATM fee income 155 116 291 216 Wire transfer fees 17 15 31 28 Gain on sales of premises and equipment and other assets — 8 — 8 Other income 45 44 116 159 Total $ 345 $ 353 $ 798 $ 877 |
Other Operating Expense | Other Operating Expense Other operating expense for the three and six months ended June 30, 2021 and 2020 consisted of the following: Three Months Ended Six Months Ended June 30, June 30, 2021 2020 2021 2020 (Dollars in Thousands, Except Per Share Data) Postage, stationery and supplies $ 197 $ 218 $ 412 $ 432 Telephone/data communication 227 229 459 452 Advertising and marketing 53 42 82 86 Travel and business development 39 23 67 149 Collection and recoveries 64 60 110 145 Other services 79 85 143 176 Insurance expense 152 141 315 303 FDIC insurance and state assessments 177 116 330 196 Loss on sales of premises and equipment and other assets 22 121 54 287 Core deposit intangible amortization 92 109 183 219 Other real estate/foreclosure expense, net (20 ) 22 (13 ) 41 Other expense 466 402 1,027 744 Total $ 1,548 $ 1,568 $ 3,169 $ 3,230 |
Guarantees, Commitments and C_2
Guarantees, Commitments and Contingencies (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Commitments And Contingencies Disclosure [Abstract] | |
Summary of Commitment and Contingent Liabilities | A summary of these commitments and contingent liabilities is presented below: June 30, 2021 December 31, 2020 (Dollars in Thousands) Standby letters of credit $ — $ 180 Standby performance letters of credit $ 582 $ 580 Commitments to extend credit $ 136,114 $ 118,699 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis | The following table presents assets and liabilities measured at fair value on a recurring basis as of June 30, 2021 and December 31, 2020. Fair Value Measurements as of June 30, 2021 Using Totals At June 30, 2021 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 $ 48,022 $ — $ 48,022 $ — Commercial 32,279 — 32,279 — Obligations of states and political subdivisions 3,828 — 3,828 — Corporate notes 4,355 — 4,355 — U.S. Treasury securities 30,251 — 30,251 — Other liabilities - derivatives 1,658 — 1,658 — Fair Value Measurements as of December 31, 2020 Using Totals At December 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 $ 25,537 $ — $ 25,537 $ — Commercial 41,487 — 41,487 — Obligations of states and political subdivisions 5,108 — 5,108 — Corporate notes 2,784 — 2,784 — U.S. Treasury securities 10,077 — 10,077 — Other liabilities - derivatives 2,610 — 2,610 — |
Fair Value Assets Measured on Nonrecurring Basis | The following table presents the balances of impaired loans, OREO and other assets held-for-sale measured at fair value on a non-recurring basis as of June 30, 2021 and December 31, 2020: Fair Value Measurements as of June 30, 2021 Using Totals At June 30, 2021 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 $ 5 $ — $ — $ 5 OREO and other assets held-for-sale 846 — — 846 Fair Value Measurements as of December 31, 2020 Using Totals At December 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 $ 28 $ — $ — $ 28 OREO and other assets held-for-sale 949 — — 949 |
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 June 30, 2021. 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 June 30, 2021 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 June 30, 2021 Valuation Technique Unobservable Input Quantitative Range of Unobservable Inputs (Weighted Average) (Dollars in Thousands) Non-recurring fair value measurements: Impaired loans $ 5 Multiple data points, including discount to appraised value of collateral based on recent market activity Appraisal comparability adjustment (discount) 9%-10% (9.5%) OREO and other assets held-for-sale $ 846 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 June 30, 2021 and December 31, 2020 were as follows: June 30, 2021 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 81,823 $ 81,823 $ 81,823 $ — $ — Investment securities available-for-sale 118,735 118,735 — 118,735 — Investment securities held-to-maturity 4,848 4,943 — 4,943 — Federal funds sold 83 83 — 83 — Federal Home Loan Bank stock 870 870 — — 870 Loans, net of allowance for loan and lease losses 677,756 682,148 — — 682,148 Liabilities: Deposits 837,885 838,482 — 838,482 — Short-term borrowings 10,017 10,017 — 10,017 — Other liabilities - derivatives 1,658 1,658 — 1,658 — December 31, 2020 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Assets: Cash and cash equivalents $ 94,415 $ 94,415 $ 94,415 $ — $ — Investment securities available-for-sale 84,993 84,993 — 84,993 — Investment securities held-to-maturity 6,429 6,559 — 6,559 — Federal funds sold 85 85 — 85 — Federal Home Loan Bank stock 1,135 1,135 — — 1,135 Loans, net of allowance for loan and lease losses 638,374 650,107 — — 650,107 Liabilities: Deposits 782,212 784,574 — 784,574 — Short-term borrowings 10,017 10,017 — 10,017 — Other liabilities - derivatives 2,610 2,610 — 2,610 — |
General - Additional Informatio
General - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021Segment | |
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 | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Earnings Per Share Basic And Diluted [Abstract] | ||||
Basic shares | 6,328,794 | 6,276,001 | 6,316,598 | 6,279,079 |
Dilutive shares | 421,000 | 422,000 | 421,000 | 422,000 |
Diluted shares | 6,749,794 | 6,698,001 | 6,737,598 | 6,701,079 |
Net income | $ 953 | $ 404 | $ 1,903 | $ 1,251 |
Basic net income per share | $ 0.15 | $ 0.07 | $ 0.30 | $ 0.20 |
Diluted net income per share | $ 0.14 | $ 0.06 | $ 0.28 | $ 0.19 |
Investment Securities - Availab
Investment Securities - Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | $ 117,191 | $ 83,289 |
Available-for-sale, gross unrealized gains | 1,631 | 1,855 |
Available-for-sale, gross unrealized losses | (87) | (151) |
Investment securities available-for-sale, at fair value | 118,735 | 84,993 |
Held-to-maturity, amortized cost | 4,848 | 6,429 |
Held-to-maturity, gross unrealized gains | 95 | 130 |
Held-to-maturity, estimated fair value | 4,943 | 6,559 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 47,269 | 24,680 |
Available-for-sale, gross unrealized gains | 757 | 865 |
Available-for-sale, gross unrealized losses | (4) | (8) |
Investment securities available-for-sale, at fair value | 48,022 | 25,537 |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 31,688 | 40,849 |
Available-for-sale, gross unrealized gains | 652 | 780 |
Available-for-sale, gross unrealized losses | (61) | (142) |
Investment securities available-for-sale, at fair value | 32,279 | 41,487 |
Held-to-maturity, amortized cost | 2,964 | 4,302 |
Held-to-maturity, gross unrealized gains | 65 | 75 |
Held-to-maturity, estimated fair value | 3,029 | 4,377 |
US States and Political Subdivisions Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 3,711 | 4,971 |
Available-for-sale, gross unrealized gains | 117 | 137 |
Investment securities available-for-sale, at fair value | 3,828 | 5,108 |
Held-to-maturity, amortized cost | 956 | 1,007 |
Held-to-maturity, gross unrealized gains | 9 | 21 |
Held-to-maturity, estimated fair value | 965 | 1,028 |
Corporate Notes [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 4,321 | 2,711 |
Available-for-sale, gross unrealized gains | 34 | 73 |
Investment securities available-for-sale, at fair value | 4,355 | 2,784 |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, amortized cost | 30,202 | 10,078 |
Available-for-sale, gross unrealized gains | 71 | |
Available-for-sale, gross unrealized losses | (22) | (1) |
Investment securities available-for-sale, at fair value | 30,251 | 10,077 |
US Government Agencies Debt Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Held-to-maturity, amortized cost | 928 | 1,120 |
Held-to-maturity, gross unrealized gains | 21 | 34 |
Held-to-maturity, estimated fair value | $ 949 | $ 1,154 |
Investment Securities - Schedul
Investment Securities - Scheduled Maturities of Investment Securities Available-for-Sale and Held-to-Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Investments Debt And Equity Securities [Abstract] | ||
Available-for-sale, maturing within one year, amortized cost | $ 84 | |
Available-for-sale, maturing after one to five years, amortized cost | 21,185 | |
Available-for-sale, maturing after five to ten years, amortized cost | 64,499 | |
Available-for-sale, maturing after ten years, amortized cost | 31,423 | |
Available-for-sale, amortized cost | 117,191 | $ 83,289 |
Available-for-sale, maturing within one year, estimated fair value | 84 | |
Available-for-sale, maturing after one to five years, estimated fair value | 21,369 | |
Available-for-sale, maturing after five to ten years, estimated fair value | 65,480 | |
Available-for-sale, maturing after ten years, estimated fair value | 31,802 | |
Available-for-sale, amortized cost | 118,735 | 84,993 |
Held-to-maturity, maturing within one year, amortized cost | 402 | |
Held-to-maturity, maturing after one to five years, amortized cost | 360 | |
Held-to-maturity, maturing after five to ten years, amortized cost | 2,447 | |
Held-to-maturity, maturing after ten years, amortized cost | 1,639 | |
Held-to-maturity, amortized cost | 4,848 | 6,429 |
Held-to-maturity, maturing within one year, estimated fair value | 407 | |
Held-to-maturity, maturing after one to five years, estimated fair value | 361 | |
Held-to-maturity, maturity after five to ten years, estimated fair value | 2,505 | |
Held-to-maturity, maturing after ten years, estimated fair value | 1,670 | |
Held-to-maturity, amortized cost | $ 4,943 | $ 6,559 |
Investment Securities - Securit
Investment Securities - Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | $ 10,792 | $ 15,041 |
Available-for-sale, less than 12 months, unrealized losses | (22) | (3) |
Available-for-sale, 12 months or more, fair value | 3,969 | 4,346 |
Available-for-sale, 12 months or more, unrealized losses | (65) | (148) |
Held-to-maturity, less than 12 months, fair value | 48 | 412 |
Residential Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 183 | 2,334 |
Available-for-sale, less than 12 months, unrealized losses | (1) | |
Available-for-sale, 12 months or more, fair value | 781 | 1,019 |
Available-for-sale, 12 months or more, unrealized losses | (4) | (7) |
Commercial Mortgage Backed Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 453 | 2,630 |
Available-for-sale, less than 12 months, unrealized losses | (1) | |
Available-for-sale, 12 months or more, fair value | 3,188 | 3,327 |
Available-for-sale, 12 months or more, unrealized losses | (61) | (141) |
Held-to-maturity, less than 12 months, fair value | 48 | 412 |
US Treasury Securities [Member] | ||
Schedule Of Investments [Line Items] | ||
Available-for-sale, less than 12 months, fair value | 10,156 | 10,077 |
Available-for-sale, less than 12 months, unrealized losses | $ (22) | $ (1) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) | |
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 | 10 | 9 |
Available-for-sale, Securities in Unrealized Loss Positions, Qualitative Disclosure, Number of Positions, Less than One Year | 6 | 11 |
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 | $ 57,100,000 | $ 72,900,000 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | Dec. 31, 2019 | |||
Loans | $ 689,549 | $ 650,123 | $ 577,886 | ||||
Less: Unearned interest, fees and deferred cost | 4,067 | 4,279 | |||||
Loans, allowance for loan losses | 7,726 | 7,470 | 6,423 | $ 5,762 | |||
Net loans | 677,756 | 638,374 | 566,062 | ||||
Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 53,425 | 31,384 | |||||
Loans, allowance for loan losses | 472 | 393 | 269 | 197 | |||
Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 78,815 | 93,010 | |||||
Loans, allowance for loan losses | 752 | 639 | 522 | 466 | |||
Secured By Multi family Residential Properties [Member] | |||||||
Loans | 53,811 | 48,807 | |||||
Loans, allowance for loan losses | 511 | 577 | 492 | 422 | |||
Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 191,398 | 160,683 | |||||
Loans, allowance for loan losses | 1,915 | 1,566 | 1,244 | 964 | |||
Direct Consumer [Member] | |||||||
Loans | 26,937 | ||||||
Branch Retail [Member] | |||||||
Loans | 31,688 | ||||||
Indirect Sales [Member] | |||||||
Loans | 176,116 | ||||||
FUSB [Member] | |||||||
Loans | 634,424 | 591,000 | |||||
Less: Unearned interest, fees and deferred cost | (290) | (213) | |||||
Loans, allowance for loan losses | 6,464 | 5,917 | |||||
Net loans | 628,250 | 585,296 | |||||
ALC [Member] | |||||||
Loans | 55,125 | 59,123 | |||||
Less: Unearned interest, fees and deferred cost | 4,357 | 4,492 | |||||
Loans, allowance for loan losses | 1,262 | 1,553 | |||||
Net loans | 49,506 | 53,078 | |||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 53,425 | 37,282 | |||||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 78,815 | 88,856 | |||||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | |||||||
Loans | 53,811 | 54,326 | |||||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 191,398 | 184,528 | |||||
Real Estate [Member] | FUSB [Member] | Construction, Land Development and Other Land Loans [Member] | |||||||
Loans | 53,425 | 37,282 | |||||
Real Estate [Member] | FUSB [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 75,968 | 85,271 | |||||
Real Estate [Member] | FUSB [Member] | Secured By Multi family Residential Properties [Member] | |||||||
Loans | 53,811 | 54,326 | |||||
Real Estate [Member] | FUSB [Member] | Secured By Non-farm Non residential Properties [Member] | |||||||
Loans | 191,398 | 184,528 | |||||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||||
Loans | 2,847 | 3,585 | |||||
Commercial and Industrial Loans [Member] | |||||||
Loans | 77,359 | [1] | 81,735 | [1] | 87,771 | ||
Loans, allowance for loan losses | 693 | 1,008 | 929 | 1,377 | |||
Commercial and Industrial Loans [Member] | FUSB [Member] | |||||||
Loans | [1] | 77,359 | 81,735 | ||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | |||||||
Loans | 26,937 | 29,788 | 33,299 | ||||
Loans, allowance for loan losses | 959 | 1,202 | 1,417 | 1,625 | |||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||||||
Loans | 31,688 | 32,094 | 33,000 | ||||
Loans, allowance for loan losses | 324 | 373 | 475 | 395 | |||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | |||||||
Loans | 176,116 | 141,514 | 89,932 | ||||
Loans, allowance for loan losses | 2,100 | 1,712 | $ 1,075 | $ 316 | |||
Consumer Portfolio Segment [Member] | FUSB [Member] | Direct Consumer [Member] | |||||||
Loans | 6,347 | 6,344 | |||||
Consumer Portfolio Segment [Member] | FUSB [Member] | Indirect Sales [Member] | |||||||
Loans | 176,116 | 141,514 | |||||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | |||||||
Loans | 20,590 | 23,444 | |||||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | |||||||
Loans | $ 31,688 | $ 32,094 | |||||
[1] | Includes equipment financing leases and PPP loans. As of June 30, 2021 and December 31, 2020, equipment finance leases totaled $6.3 million and $7.0 million, respectively, and PPP loans totaled $11.6 million and $11.9 million, respectively. |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Loans | $ 689,549 | $ 650,123 | $ 577,886 |
Equipment Financing Leases [Member] | |||
Loans | 6,300 | 7,000 | |
PPP Loans [Member] | |||
Loans | $ 11,600 | $ 11,900 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | |||||||||||
Jun. 30, 2021USD ($)LoanBorrower | Jun. 30, 2021USD ($)LoanBorrower | Jun. 30, 2021USD ($)LoanBorrower | Jun. 30, 2021USD ($)LoanBorrower | Jun. 30, 2021USD ($)LoanBorrowerContract | Jun. 30, 2021USD ($)LoanBorrowerDebtSecurityNumber | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($) | Dec. 31, 2020USD ($)Loan | Dec. 31, 2020USD ($)Contract | Dec. 31, 2020USD ($)DebtSecurityNumber | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Loans Pledged as Collateral | $ 58,600 | $ 58,600 | $ 58,600 | $ 58,600 | $ 58,600 | $ 58,600 | $ 36,100 | $ 36,100 | $ 36,100 | $ 36,100 | $ 36,100 | ||
Loans and Leases Receivable, Related Parties, Ending Balance | 300 | 400 | |||||||||||
Loans and Leases Receivable, Related Parties, Additions | 0 | 0 | |||||||||||
Loans and Leases Receivable, Related Parties, Proceeds | 100 | 500 | |||||||||||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 1,300 | 1,300 | 1,300 | 1,300 | 1,300 | 1,300 | 3,100 | 3,100 | 3,100 | 3,100 | 3,100 | ||
Financing Receivable, Troubled Debt Restructuring | 100 | 100 | 100 | 100 | 100 | $ 100 | |||||||
Loans and Leases Receivable, Impaired, Interest Lost on Nonaccrual Loans | 39 | 161 | |||||||||||
Interest Income Recorded | 17 | 17 | 17 | $ 17 | 17 | $ 17 | 42 | 42 | $ 42 | 42 | $ 42 | ||
Number of loans | 2 | 7 | 0 | 5 | |||||||||
Financing Receivable, Restructuring Recorded Investment With Nonaccrual Status | 6,500 | 6,500 | 6,500 | $ 6,500 | 6,500 | $ 6,500 | |||||||
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Acquired During Period, Cash Flows Expected to be Collected at Acquisition | 0 | 0 | 0 | 0 | $ 0 | 0 | 0 | 0 | $ 0 | $ 0 | $ 0 | ||
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts | Contract | 0 | 0 | |||||||||||
Loans, allowance for loan losses | 7,726 | 7,726 | 7,726 | 7,726 | $ 7,726 | 7,726 | 7,470 | 7,470 | 7,470 | $ 7,470 | 7,470 | 6,423 | $ 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 | 500 | 500 | 500 | 500 | 500 | |||||||
Loans, allowance for loan losses | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | $ 1 | 1 | 1 | 1 | 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, fixed interest rate | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||
Loan, aggregate principal balance | $ 11,600 | $ 11,600 | $ 11,600 | $ 11,600 | $ 11,600 | $ 11,600 | |||||||
Number of loans to small businesses | Loan | 151 | 151 | 151 | 151 | 151 | 151 | |||||||
Number of companies | Borrower | 120 | 120 | 120 | 120 | 120 | 120 | |||||||
Amortized loan fees | $ 242 | 161 | |||||||||||
Net deferred loan fee | $ 344 | ||||||||||||
Paycheck Protection Program [Member] | Minimum [Member] | |||||||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Loan fee percentage | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | 1.00% | |||||||
Paycheck Protection Program [Member] | Maximum [Member] | |||||||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Loan fee percentage | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | 5.00% | |||||||
Paycheck Protection Program [Member] | Two Year Term Loan [Member] | |||||||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Loan, aggregate principal balance | $ 5,800 | $ 5,800 | $ 5,800 | $ 5,800 | $ 5,800 | $ 5,800 | |||||||
Loan payment term | two-year | ||||||||||||
Paycheck Protection Program [Member] | Five Year Term Loan [Member] | |||||||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Loan, aggregate principal balance | $ 5,800 | 5,800 | 5,800 | 5,800 | 5,800 | 5,800 | |||||||
Loan payment term | five-year | ||||||||||||
Financial Asset Acquired With Credit Deterioration [Member] | |||||||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Amount Of Deferment Loan | $ 600 | 600 | $ 600 | $ 600 | $ 600 | $ 600 | 8,100 | $ 8,100 | $ 8,100 | $ 8,100 | $ 8,100 | ||
Deferred principal balance of loan reduced | $ 12,000 | $ 13,500 | |||||||||||
Deferred principal balance of loan reduced percentage | 1.70% | 2.10% | |||||||||||
Real Estate [Member] | |||||||||||||
Debt Securities Heldtomaturity Allowance For Credit Loss [Line Items] | |||||||||||||
Percentage of Loan Portfolio | 54.70% | 54.70% | 54.70% | 54.70% | 54.70% | 54.70% | 56.10% | 56.10% | 56.10% | 56.10% | 56.10% |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||||
Beginning balance | $ 7,470 | $ 5,762 | ||||||
Charge-offs | (1,185) | (1,263) | ||||||
Recoveries | 542 | 494 | ||||||
Provision | $ 498 | $ 850 | 899 | 1,430 | ||||
Ending balance | 7,726 | 6,423 | 7,726 | 6,423 | ||||
Individually evaluated for impairment | 70 | 78 | 70 | 78 | ||||
Collectively evaluated for impairment | 7,656 | 6,345 | 7,656 | 6,345 | ||||
Individually evaluated for impairment | 1,823 | 3,620 | 1,823 | 3,620 | ||||
Collectively evaluated for impairment | 687,718 | 574,099 | 687,718 | 574,099 | ||||
Loans | 689,549 | 577,886 | 689,549 | 577,886 | $ 650,123 | |||
Financial Asset Acquired With Credit Deterioration [Member] | ||||||||
Loans | 8 | 167 | 8 | 167 | ||||
Construction, Land Development and Other Land Loans [Member] | ||||||||
Beginning balance | 393 | 197 | ||||||
Charge-offs | (22) | |||||||
Recoveries | 21 | |||||||
Provision | 80 | 72 | ||||||
Ending balance | 472 | 269 | 472 | 269 | ||||
Collectively evaluated for impairment | 472 | 269 | 472 | 269 | ||||
Collectively evaluated for impairment | 53,425 | 31,384 | 53,425 | 31,384 | ||||
Loans | 53,425 | 31,384 | 53,425 | 31,384 | ||||
Secured by 1-4 Family Residential Properties [Member] | ||||||||
Beginning balance | 639 | 466 | ||||||
Charge-offs | (5) | (42) | ||||||
Recoveries | 6 | 14 | ||||||
Provision | 112 | 84 | ||||||
Ending balance | 752 | 522 | 752 | 522 | ||||
Individually evaluated for impairment | 11 | 13 | 11 | 13 | ||||
Collectively evaluated for impairment | 741 | 509 | 741 | 509 | ||||
Individually evaluated for impairment | 687 | 785 | 687 | 785 | ||||
Collectively evaluated for impairment | 78,120 | 92,058 | 78,120 | 92,058 | ||||
Loans | 78,815 | 93,010 | 78,815 | 93,010 | ||||
Secured by 1-4 Family Residential Properties [Member] | Financial Asset Acquired With Credit Deterioration [Member] | ||||||||
Loans | 8 | 167 | 8 | 167 | ||||
Secured By Multi family Residential Properties [Member] | ||||||||
Beginning balance | 577 | 422 | ||||||
Provision | (66) | 70 | ||||||
Ending balance | 511 | 492 | 511 | 492 | ||||
Collectively evaluated for impairment | 511 | 492 | 511 | 492 | ||||
Collectively evaluated for impairment | 53,811 | 48,807 | 53,811 | 48,807 | ||||
Loans | 53,811 | 48,807 | 53,811 | 48,807 | ||||
Secured By Non-farm Non residential Properties [Member] | ||||||||
Beginning balance | 1,566 | 964 | ||||||
Recoveries | 3 | 8 | ||||||
Provision | 346 | 272 | ||||||
Ending balance | 1,915 | 1,244 | 1,915 | 1,244 | ||||
Collectively evaluated for impairment | 1,915 | 1,244 | 1,915 | 1,244 | ||||
Individually evaluated for impairment | 1,056 | 2,748 | 1,056 | 2,748 | ||||
Collectively evaluated for impairment | 190,342 | 157,935 | 190,342 | 157,935 | ||||
Loans | 191,398 | 160,683 | 191,398 | 160,683 | ||||
Direct Consumer [Member] | ||||||||
Loans | 26,937 | 26,937 | ||||||
Branch Retail [Member] | ||||||||
Loans | 31,688 | 31,688 | ||||||
Indirect Sales [Member] | ||||||||
Loans | 176,116 | 176,116 | ||||||
Commercial and Industrial Loans [Member] | ||||||||
Beginning balance | 1,008 | 1,377 | ||||||
Recoveries | 9 | |||||||
Provision | (324) | (448) | ||||||
Ending balance | 693 | 929 | 693 | 929 | ||||
Individually evaluated for impairment | 59 | 62 | 59 | 62 | ||||
Collectively evaluated for impairment | 634 | 867 | 634 | 867 | ||||
Individually evaluated for impairment | 58 | 62 | 58 | 62 | ||||
Collectively evaluated for impairment | 77,301 | 87,709 | 77,301 | 87,709 | ||||
Loans | 77,359 | [1] | 87,771 | 77,359 | [1] | 87,771 | 81,735 | [1] |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||||
Beginning balance | 1,202 | 1,625 | ||||||
Charge-offs | (626) | (962) | ||||||
Recoveries | 369 | 381 | ||||||
Provision | 14 | 373 | ||||||
Ending balance | 959 | 1,417 | 959 | 1,417 | ||||
Individually evaluated for impairment | 3 | 3 | ||||||
Collectively evaluated for impairment | 959 | 1,414 | 959 | 1,414 | ||||
Individually evaluated for impairment | 22 | 25 | 22 | 25 | ||||
Collectively evaluated for impairment | 26,915 | 33,274 | 26,915 | 33,274 | ||||
Loans | 26,937 | 33,299 | 26,937 | 33,299 | 29,788 | |||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||||
Beginning balance | 373 | 395 | ||||||
Charge-offs | (222) | (221) | ||||||
Recoveries | 107 | 90 | ||||||
Provision | 66 | 211 | ||||||
Ending balance | 324 | 475 | 324 | 475 | ||||
Collectively evaluated for impairment | 324 | 475 | 324 | 475 | ||||
Collectively evaluated for impairment | 31,688 | 33,000 | 31,688 | 33,000 | ||||
Loans | 31,688 | 33,000 | 31,688 | 33,000 | 32,094 | |||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||||
Beginning balance | 1,712 | 316 | ||||||
Charge-offs | (310) | (38) | ||||||
Recoveries | 27 | 1 | ||||||
Provision | 671 | 796 | ||||||
Ending balance | 2,100 | 1,075 | 2,100 | 1,075 | ||||
Collectively evaluated for impairment | 2,100 | 1,075 | 2,100 | 1,075 | ||||
Collectively evaluated for impairment | 176,116 | 89,932 | 176,116 | 89,932 | ||||
Loans | $ 176,116 | $ 89,932 | $ 176,116 | $ 89,932 | $ 141,514 | |||
[1] | Includes equipment financing leases and PPP loans. As of June 30, 2021 and December 31, 2020, equipment finance leases totaled $6.3 million and $7.0 million, respectively, and PPP loans totaled $11.6 million and $11.9 million, respectively. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Loans By Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | |||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 689,549 | $ 650,123 | $ 577,886 | |||
As a percentage of total loans | 100.00% | 100.00% | ||||
Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 53,425 | 31,384 | ||||
Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 53,811 | 48,807 | ||||
Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 191,398 | 160,683 | ||||
Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 78,815 | 93,010 | ||||
Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 26,937 | |||||
Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,688 | |||||
Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 176,116 | |||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 53,425 | $ 37,282 | ||||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 53,811 | 54,326 | ||||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 191,398 | 184,528 | ||||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 78,815 | 88,856 | ||||
Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 77,359 | [1] | 81,735 | [1] | 87,771 | |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 26,937 | 29,788 | 33,299 | |||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,688 | 32,094 | 33,000 | |||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 176,116 | 141,514 | $ 89,932 | |||
FUSB [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 634,424 | 591,000 | ||||
FUSB [Member] | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 53,425 | 37,282 | ||||
FUSB [Member] | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 53,811 | 54,326 | ||||
FUSB [Member] | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 191,398 | 184,528 | ||||
FUSB [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 75,968 | 85,271 | ||||
FUSB [Member] | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | [1] | 77,359 | 81,735 | |||
FUSB [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 6,347 | 6,344 | ||||
FUSB [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 176,116 | 141,514 | ||||
FUSB [Member] | Pass | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 357,367 | $ 341,137 | ||||
As a percentage of total loans | 95.05% | 95.33% | ||||
FUSB [Member] | Pass | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 51,303 | $ 36,719 | ||||
FUSB [Member] | Pass | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 51,270 | 54,326 | ||||
FUSB [Member] | Pass | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 178,582 | 170,338 | ||||
FUSB [Member] | Pass | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 76,212 | 79,754 | ||||
FUSB [Member] | Special Mention | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 16,918 | $ 9,672 | ||||
As a percentage of total loans | 4.50% | 2.70% | ||||
FUSB [Member] | Special Mention | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 2,120 | $ 558 | ||||
FUSB [Member] | Special Mention | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 2,541 | |||||
FUSB [Member] | Special Mention | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 11,777 | 8,572 | ||||
FUSB [Member] | Special Mention | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 480 | 542 | ||||
FUSB [Member] | Substandard | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 1,708 | $ 7,062 | ||||
As a percentage of total loans | 0.45% | 1.97% | ||||
FUSB [Member] | Substandard | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 2 | $ 5 | ||||
FUSB [Member] | Substandard | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 1,039 | 5,618 | ||||
FUSB [Member] | Substandard | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 667 | 1,439 | ||||
FUSB [Member] | Pass And Criticized [Member} | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 375,993 | $ 357,871 | ||||
As a percentage of total loans | 100.00% | 100.00% | ||||
FUSB [Member] | Pass And Criticized [Member} | Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 53,425 | $ 37,282 | ||||
FUSB [Member] | Pass And Criticized [Member} | Real Estate [Member] | Secured By Multi family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 53,811 | 54,326 | ||||
FUSB [Member] | Pass And Criticized [Member} | Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 191,398 | 184,528 | ||||
FUSB [Member] | Pass And Criticized [Member} | Commercial and Industrial Loans [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 77,359 | 81,735 | ||||
ALC [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 55,125 | 59,123 | ||||
ALC [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 312,145 | $ 289,674 | ||||
As a percentage of total loans | 99.55% | 99.12% | ||||
ALC [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 1,411 | $ 2,578 | ||||
As a percentage of total loans | 0.45% | 0.88% | ||||
ALC [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 313,556 | $ 292,252 | ||||
As a percentage of total loans | 100.00% | 100.00% | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 2,847 | $ 3,585 | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 77,428 | 86,665 | ||||
ALC [Member] | Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 1,387 | 2,191 | ||||
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 | 78,815 | 88,856 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 20,590 | 23,444 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 26,913 | 29,679 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 24 | 109 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 26,937 | 29,788 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,688 | 32,094 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,688 | 31,816 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Nonperforming Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 278 | |||||
ALC [Member] | Consumer Portfolio Segment [Member] | Branch Retail [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 31,688 | 32,094 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | Performing Financial Instruments | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | 176,116 | 141,514 | ||||
ALC [Member] | Consumer Portfolio Segment [Member] | Indirect Sales [Member] | Performing And Non Performing [Member] | ||||||
Financing Receivable Recorded Investment [Line Items] | ||||||
Loans | $ 176,116 | $ 141,514 | ||||
[1] | Includes equipment financing leases and PPP loans. As of June 30, 2021 and December 31, 2020, equipment finance leases totaled $6.3 million and $7.0 million, respectively, and PPP loans totaled $11.6 million and $11.9 million, respectively. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 | ||
Loans | $ 689,549 | $ 650,123 | $ 577,886 | ||
As a percentage of total loans | 100.00% | 100.00% | |||
Total Past Due | $ 1,328 | $ 5,348 | |||
Current | $ 688,221 | $ 644,775 | |||
As a percentage of total loans, Total Past Due | 0.19% | 0.82% | |||
As a percentage of total loans, Current | 99.81% | 99.18% | |||
Financial Asset, 30 to 59 Days Past Due | |||||
As a percentage of total loans | 0.37% | ||||
Financial Asset, 60 to 89 Days Past Due | |||||
As a percentage of total loans | 0.17% | ||||
Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
As a percentage of total loans | 0.28% | ||||
Construction, Land Development and Other Land Loans [Member] | |||||
Loans | $ 53,425 | 31,384 | |||
Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 78,815 | 93,010 | |||
Secured By Multi family Residential Properties [Member] | |||||
Loans | 53,811 | 48,807 | |||
Secured By Non-farm Non residential Properties [Member] | |||||
Loans | 191,398 | 160,683 | |||
Direct Consumer [Member] | |||||
Loans | 26,937 | ||||
Total Past Due | 315 | ||||
Current | 26,622 | ||||
Branch Retail [Member] | |||||
Loans | 31,688 | ||||
Total Past Due | 195 | ||||
Current | 31,493 | ||||
Indirect Sales [Member] | |||||
Loans | 176,116 | ||||
Total Past Due | 203 | ||||
Current | 175,913 | ||||
ALC [Member] | |||||
Loans | 55,125 | $ 59,123 | |||
ALC [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | $ 606 | 2,436 | |||
As a percentage of total loans | 0.09% | ||||
ALC [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | $ 173 | 1,096 | |||
As a percentage of total loans | 0.03% | ||||
ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | $ 549 | 1,816 | |||
As a percentage of total loans | 0.08% | ||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | |||||
Loans | $ 53,425 | 37,282 | |||
Current | 53,425 | 37,282 | |||
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 78,815 | 88,856 | |||
Total Past Due | 289 | 1,115 | |||
Current | 78,526 | 87,741 | |||
Real Estate [Member] | Secured By Multi family Residential Properties [Member] | |||||
Loans | 53,811 | 54,326 | |||
Current | 53,811 | 54,326 | |||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | |||||
Loans | 191,398 | 184,528 | |||
Total Past Due | 12 | 1,624 | |||
Current | 191,386 | 182,904 | |||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | |||||
Loans | 2,847 | 3,585 | |||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 196 | 799 | |||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | 14 | 244 | |||
Real Estate [Member] | ALC [Member] | Secured by 1-4 Family Residential Properties [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | 79 | 72 | |||
Real Estate [Member] | ALC [Member] | Secured By Non-farm Non residential Properties [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 12 | 287 | |||
Real Estate [Member] | ALC [Member] | Secured By Non-farm Non residential Properties [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | 1,337 | ||||
Commercial and Industrial Loans [Member] | |||||
Loans | 77,359 | [1] | 81,735 | [1] | 87,771 |
Total Past Due | 314 | 1,244 | |||
Current | 77,045 | 80,491 | |||
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 24 | 683 | |||
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | 6 | 561 | |||
Commercial and Industrial Loans [Member] | ALC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | 284 | ||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | |||||
Loans | 26,937 | 29,788 | 33,299 | ||
Total Past Due | 662 | ||||
Current | 29,126 | ||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 257 | ||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | 191 | ||||
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | 214 | ||||
Consumer Portfolio Segment [Member] | Branch Retail [Member] | |||||
Loans | 31,688 | 32,094 | 33,000 | ||
Total Past Due | 381 | ||||
Current | 31,713 | ||||
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | |||||
Loans | 176,116 | 141,514 | $ 89,932 | ||
Total Past Due | 322 | ||||
Current | 141,192 | ||||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | |||||
Loans | 20,590 | 23,444 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 161 | ||||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | 90 | ||||
Consumer Portfolio Segment [Member] | ALC [Member] | Direct Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | 64 | ||||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | |||||
Loans | 31,688 | 32,094 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 101 | 176 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | 27 | 61 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Branch Retail [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | 67 | 144 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Sales [Member] | Financial Asset, 30 to 59 Days Past Due | |||||
Loans | 112 | 234 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Sales [Member] | Financial Asset, 60 to 89 Days Past Due | |||||
Loans | 36 | 39 | |||
Consumer Portfolio Segment [Member] | ALC [Member] | Indirect Sales [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due | |||||
Loans | $ 55 | $ 49 | |||
[1] | Includes equipment financing leases and PPP loans. As of June 30, 2021 and December 31, 2020, equipment finance leases totaled $6.3 million and $7.0 million, respectively, and PPP loans totaled $11.6 million and $11.9 million, respectively. |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Non-accruing Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Non-accruing loans | $ 1,279 | $ 3,086 |
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||
Non-accruing loans | 2 | 12 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Non-accruing loans | 780 | 1,248 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Non-accruing loans | 1,340 | |
Commercial and Industrial Loans [Member] | ||
Non-accruing loans | 310 | 74 |
Consumer Portfolio Segment [Member] | Direct Consumer [Member] | ||
Non-accruing loans | 65 | 219 |
Consumer Portfolio Segment [Member] | Branch Retail [Member] | ||
Non-accruing loans | 67 | 144 |
Consumer Portfolio Segment [Member] | Indirect Sales [Member] | ||
Non-accruing loans | $ 55 | $ 49 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Impaired loans with no related allowance recorded, carrying amount | $ 1,756 | $ 7,009 |
Impaired loans with no related allowance recorded, unpaid principal balance | 1,756 | 7,009 |
Impaired loans, related allowances | 70 | 74 |
Impaired loans with no related allowance recorded, carrying amount | 75 | 102 |
Impaired loans with no related allowance recorded, unpaid principal balance | 75 | 102 |
Impaired loans, carrying amount | 1,831 | 7,111 |
Impaired loans, unpaid principal balance | 1,831 | 7,111 |
Impaired loans, average recorded investment | 5,024 | 3,533 |
Impaired loans, interest income recognized | 160 | 46 |
Impaired loans, interest income received | 127 | 47 |
Real Estate [Member] | Secured by 1-4 Family Residential Properties [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 678 | 885 |
Impaired loans with no related allowance recorded, unpaid principal balance | 678 | 885 |
Impaired loans, related allowances | 11 | 12 |
Impaired loans with no related allowance recorded, carrying amount | 17 | 18 |
Impaired loans with no related allowance recorded, unpaid principal balance | 17 | 18 |
Impaired loans, carrying amount | 695 | 903 |
Impaired loans, unpaid principal balance | 695 | 903 |
Impaired loans, average recorded investment | 868 | 923 |
Impaired loans, interest income recognized | 25 | 10 |
Impaired loans, interest income received | 25 | 10 |
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 1,056 | 5,594 |
Impaired loans with no related allowance recorded, unpaid principal balance | 1,056 | 5,594 |
Impaired loans, carrying amount | 1,056 | 5,594 |
Impaired loans, unpaid principal balance | 1,056 | 5,594 |
Impaired loans, average recorded investment | 3,700 | 2,467 |
Impaired loans, interest income recognized | 115 | 28 |
Impaired loans, interest income received | 83 | 28 |
Commercial and Industrial Loans [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 530 | |
Impaired loans with no related allowance recorded, unpaid principal balance | 530 | |
Impaired loans, related allowances | 59 | 61 |
Impaired loans with no related allowance recorded, carrying amount | 58 | 60 |
Impaired loans with no related allowance recorded, unpaid principal balance | 58 | 60 |
Impaired loans, carrying amount | 58 | 590 |
Impaired loans, unpaid principal balance | 58 | 590 |
Impaired loans, average recorded investment | 433 | 118 |
Impaired loans, interest income recognized | 19 | 7 |
Impaired loans, interest income received | 17 | 7 |
Direct Consumer [Member] | ||
Impaired loans with no related allowance recorded, carrying amount | 22 | |
Impaired loans with no related allowance recorded, unpaid principal balance | 22 | |
Impaired loans, related allowances | 1 | |
Impaired loans with no related allowance recorded, carrying amount | 24 | |
Impaired loans with no related allowance recorded, unpaid principal balance | 24 | |
Impaired loans, carrying amount | 22 | 24 |
Impaired loans, unpaid principal balance | 22 | 24 |
Impaired loans, average recorded investment | 23 | 25 |
Impaired loans, interest income recognized | 1 | 1 |
Impaired loans, interest income received | $ 2 | $ 2 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses - Loans Modified in a Troubled Debt Restructuring (Details) $ in Thousands | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2021USD ($) | Jun. 30, 2021Loan | Jun. 30, 2021DebtSecurityNumber | Dec. 31, 2020USD ($) | Dec. 31, 2020Loan | Dec. 31, 2020DebtSecurityNumber | |
Number of loans | 2 | 7 | 0 | 5 | ||
Pre- Modification Outstanding Principal Balance | $ 903 | $ 282 | ||||
Post- Modification Principal Balance | 668 | 51 | ||||
Real Estate [Member] | Construction, Land Development and Other Land Loans [Member] | ||||||
Number of loans | DebtSecurityNumber | 1 | 1 | ||||
Pre- Modification Outstanding Principal Balance | 107 | 107 | ||||
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 | 12 | ||||
Real Estate [Member] | Secured By Non-farm Non residential Properties [Member] | ||||||
Number of loans | DebtSecurityNumber | 2 | |||||
Pre- Modification Outstanding Principal Balance | 621 | |||||
Post- Modification Principal Balance | 621 | |||||
Commercial and Industrial Loans [Member] | ||||||
Number of loans | DebtSecurityNumber | 2 | 2 | ||||
Pre- Modification Outstanding Principal Balance | 116 | 116 | ||||
Post- Modification Principal Balance | $ 35 | $ 39 |
Other Real Estate Owned and R_3
Other Real Estate Owned and Repossessed Assets - Summary of Foreclosed Property Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | ||
Other Real Estate [Abstract] | |||
Beginning balance | $ 949 | $ 1,078 | |
Additions | [1] | 293 | |
Sales proceeds | (142) | (358) | |
Gross gains | 56 | 38 | |
Gross losses | (38) | ||
Net gains (losses) | 56 | ||
Impairment | (17) | (10) | |
Ending balance | $ 846 | $ 1,003 | |
[1] | Additions to other real estate owned (“OREO”) include transfers from loans, other assets 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 | Jun. 30, 2021 | Jun. 30, 2020 |
Other Real Estate [Abstract] | ||
Foreclosed real estate owned, fair value less disposal costs | $ 0 | $ 0.1 |
Mortgage loans in process of foreclosure, amount | $ 0 | $ 0 |
Other Real Estate Owned and R_5
Other Real Estate Owned and Repossessed Assets - Summary of Repossessed Assets Activity (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Sales proceeds | $ (142) | $ (358) |
Gross gains | 56 | 38 |
Gross losses | (38) | |
Net gains (losses) | 56 | |
Impairment | (17) | (10) |
Repossessed Assets [Member] | ||
Other Real Estate And Other Assets Acquired In Foreclosure [Line Items] | ||
Beginning balance | 245 | 256 |
Transfers from loans | 515 | 561 |
Sales proceeds | (588) | (270) |
Gross losses | (67) | (286) |
Net gains (losses) | (67) | (286) |
Ending balance | $ 105 | $ 261 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2018 | |
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill, Ending Balance | $ 7,435 | $ 7,400 | ||
Finite-Lived Intangible Assets, Net, Ending Balance | $ 792 | |||
Core Deposits [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Finite-Lived Intangible Asset, Useful Life | 7 years | |||
Finite-Lived Intangible Assets, Net, Ending Balance | $ 2,000 | |||
The Peoples Bank [Member] | ||||
Goodwill And Other Intangible Assets [Line Items] | ||||
Goodwill, Ending Balance | $ 7,400 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Summary of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Jun. 30, 2020 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 7,435 | $ 7,400 | |
Gross carrying amount | 2,048 | ||
Accumulated amortization | (1,256) | ||
Core deposit intangible, net | 792 | ||
Total | $ 8,227 | $ 8,410 | $ 8,605 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Estimated Remaining Amortization Expense (Details) $ in Thousands | Jun. 30, 2021USD ($) |
Finite-Lived Intangible Assets, Amortization Expense, Maturity Schedule [Abstract] | |
2021 | $ 158 |
2022 | 268 |
2023 | 195 |
2024 | 122 |
2025 | 49 |
Core deposit intangible, net | $ 792 |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Short Term Debt [Line Items] | ||
Short-term borrowings | $ 10,017 | $ 10,017 |
Federal Funds Purchased | 0 | 0 |
Securities Sold under Agreements to Repurchase, Total | 17 | 17 |
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 |
Minimum [Member] | ||
Short Term Debt [Line Items] | ||
Maturity Period of Federal Funds | 1 day | |
Maximum [Member] | ||
Short Term Debt [Line Items] | ||
Maturity Period of Federal Funds | 4 days |
Borrowings - Schedule of Availa
Borrowings - Schedule of Available Unused Lines of Credit (Details) - Unused lines of Credit [Member] - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Correspondent Banks [Member] | ||
Short Term Debt [Line Items] | ||
Collateral Requirements | None | |
Available lines of credit | $ 44,800 | $ 44,800 |
Federal Reserve (Discount Window) [Member] | ||
Short Term Debt [Line Items] | ||
Collateral Requirements | Subject to collateral | |
Available lines of credit | $ 1,300 | 1,600 |
FHLB Advances [Member] | ||
Short Term Debt [Line Items] | ||
Collateral Requirements | Subject to collateral | |
Available lines of credit | $ 227,900 | $ 225,800 |
Borrowings - Schedule of Avai_2
Borrowings - Schedule of Available Unused Lines of Credit (Parenthetical) (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Debt Disclosure [Abstract] | ||
Federal Home Loan Bank, advances, general debt obligations, disclosures, collateral pledged | $ 58.6 | $ 36.1 |
Collateral exposure with FHLB in form of advances | 40 | 20 |
Collateral pledged in excess available to utilize additional credit | $ 18.6 | $ 16.1 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Income Tax Disclosure [Abstract] | |||||
Provision for income taxes | $ 271 | $ 118 | $ 539 | $ 380 | |
Effective Income Tax Rate Reconciliation, Percent | 22.10% | 23.30% | |||
Deferred Tax Assets, Net | $ 1,700 | $ 1,700 | $ 2,000 |
Deferred Compensation Plans - A
Deferred Compensation Plans - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Jun. 30, 2020 |
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Arrangement with Individual, Common Stock Reserved for Future Issuance | 115,506 | 111,419 |
Other Liabilities [Member] | ||
Deferred Compensation Arrangement With Individual Share Based Payments [Line Items] | ||
Deferred Compensation Liability, Current and Noncurrent, Total | $ 3.2 | $ 3.3 |
Stock Awards - Additional Infor
Stock Awards - Additional Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Granted (in shares) | 0 | 10,200 |
Share-based compensation arrangement by share-based payment award, options, outstanding, intrinsic value | $ 0.7 | $ 0 |
Employee Stock Option [Member] | Omnibus Incentive Plan [Member] | ||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Share-based payment arrangement, expense | $ 0.2 | $ 0.2 |
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 | 37,930 | 28,460 |
Stock Awards - Stock Option Act
Stock Awards - Stock Option Activity (Details) - $ / shares | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Outstanding, beginning of period (in shares) | 421,000 | 412,800 |
Granted (in shares) | 0 | 10,200 |
Exercised (in shares) | 666 | |
Forfeited (in shares) | 334 | |
Options outstanding, end of period (in shares) | 421,000 | 422,000 |
Options exercisable, end of period (in shares) | 396,095 | 353,183 |
Outstanding, beginning of period, average exercise price (in dollars per share) | $ 9.79 | $ 9.72 |
Granted, average exercise price (in dollars per share) | 11.95 | |
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) | 9.79 | 9.77 |
Options exercisable, end of period, average exercise price (in dollars per share) | $ 9.74 | $ 9.59 |
Leases - Additional Information
Leases - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021 | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Renewal Term | 5 years |
Lessee, Operating Lease, Period of Option to Terminate | 1 year |
Minimum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Remaining Term of Contract | 1 year |
Maximum [Member] | |
Lessee Lease Description [Line Items] | |
Lessee, Operating Lease, Remaining Term of Contract | 13 years |
Leases - Components of Lease Ex
Leases - Components of Lease Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Leases [Abstract] | |||||
Operating lease expense | [1] | $ 209 | $ 212 | $ 418 | $ 423 |
Operating lease income | [2] | 202 | $ 212 | 411 | 424 |
Operating lease, right-of-use asset | 2,813 | 2,813 | |||
Operating lease, liability | $ 2,878 | $ 2,878 | |||
Weighted-average remaining lease term (in years) | 5 years 5 months 1 day | 5 years 5 months 1 day | |||
Weighted-average discount rate | 3.04% | 3.04% | |||
Operating cash flows from operating leases | $ 349 | $ 373 | |||
[1] | Includes short-term lease costs. For the three- and six-month periods ended June 30, 2021 and 2020, 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 | Jun. 30, 2021USD ($) |
Leases [Abstract] | |
2021 | $ 345 |
2022 | 625 |
2023 | 491 |
2024 | 443 |
2025 | 339 |
2026 and thereafter | 937 |
Total future minimum lease payments | 3,180 |
Less: Imputed interest | 302 |
Total operating lease liabilities | $ 2,878 |
Derivative Financial Instrume_3
Derivative Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative [Line Items] | ||||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net | $ 0 | $ 0 | $ 0 | $ 0 |
Forward Interest Rate Swap Contracts [Member] | Cash Flow Hedging [Member] | ||||
Derivative [Line Items] | ||||
Derivative instruments, gain (loss) reclassified from accumulated OCI into income, effective portion, net | $ 0 | $ 0 | $ 0 | $ 0 |
Derivative Financial Instrume_4
Derivative Financial Instruments - Schedule of Notional Amount and Fair Value of Derivative Instruments Included on Company's Consolidated Balance Sheets on a net Basis (Details) - Derivatives Designated as Hedging Instruments [Member] - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | ||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | $ (1,658) | $ (2,610) | |
Fair Value Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | (530) | (837) | |
Fair Value Hedging [Member] | Interest Rate Swaps Related to Fixed Rate Commercial Real Estate Loans [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 20,000 | 20,000 | [1] |
Estimated Fair Value Gain (Loss) | (530) | (837) | |
Cash Flow Hedging [Member] | |||
Derivatives Fair Value [Line Items] | |||
Estimated Fair Value Gain (Loss) | (1,128) | (1,773) | |
Cash Flow Hedging [Member] | Interest Rate Swaps Related to Variable-Rate Money Market Deposit Accounts [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 20,000 | 20,000 | [1] |
Estimated Fair Value Gain (Loss) | (854) | (1,337) | |
Cash Flow Hedging [Member] | Interest Rate Swaps Related to FHLB Advances [Member] | |||
Derivatives Fair Value [Line Items] | |||
Notional Amount | 10,000 | 10,000 | [1] |
Estimated Fair Value Gain (Loss) | $ (274) | $ (436) | |
[1] | Derivatives in a gain position are recorded as other assets and derivatives in a loss position are recorded as other liabilities in the consolidated balance sheets |
Derivative Financial Instrume_5
Derivative Financial Instruments - Schedule of Cumulative Basis Adjustments For Fair Value Hedges (Details) $ in Thousands | Jun. 30, 2021USD ($) | [1] |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | ||
Carrying Amount of the Hedged Assets | $ 43,021 | |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | $ (530) | |
[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 June 30, 2021, the amortized cost basis of the closed portfolios used in these hedging relationships was $42.5 million, the cumulative basis adjustments associated with these hedging relationships were $0.5 million, and the amounts of the designated hedged items were $20.0 million. |
Derivative Financial Instrume_6
Derivative Financial Instruments - Schedule of Cumulative Basis Adjustments For Fair Value Hedges (Parenthetical) (Details) $ in Millions | Jun. 30, 2021USD ($) |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Amortized cost basis of closed portfolios used in hedging relationships | $ 42.5 |
Cumulative basis adjustments associated with hedging relationships | 0.5 |
Designated hedged items | $ 20 |
Derivative Financial Instrume_7
Derivative Financial Instruments - Schedule of Hedging Derivative Instruments' Effect on Company's Consolidated Statement of Income (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | $(178) | $(130) | $(351) | $(125) |
Interest and Fees on Loans [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | $(63) | $(44) | $(124) | $(35) |
Interest on Deposits [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | 32 | 21 | 63 | 15 |
Interest on Short-Term Borrowings [Member] | ||||
Derivative Instruments Gain Loss [Line Items] | ||||
Interest income (expense) | 83 | 65 | 164 | 75 |
Segment Reporting - Additional
Segment Reporting - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2021Segment | |
Segment Reporting [Abstract] | |
Number of Reportable Segments | 2 |
Segment Reporting - Results for
Segment Reporting - Results for Reportable Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Net interest income | $ 9,312 | $ 8,623 | $ 18,376 | $ 17,509 | |
Provision | 498 | 850 | 899 | 1,430 | |
Total non-interest income | 809 | 1,330 | 1,760 | 2,627 | |
Total non-interest expense | 8,399 | 8,581 | 16,795 | 17,075 | |
Income before income taxes | 1,224 | 522 | 2,442 | 1,631 | |
Provision for income taxes | 271 | 118 | 539 | 380 | |
Net income | 953 | 404 | 1,903 | 1,251 | |
Total assets | 946,946 | 845,747 | 946,946 | 845,747 | $ 890,511 |
Total investment securities | 123,583 | 103,964 | 123,583 | 103,964 | |
Total loans, net | 677,756 | 566,062 | 677,756 | 566,062 | 638,374 |
Goodwill and core deposit intangible, net | 8,227 | 8,605 | 8,227 | 8,605 | 8,410 |
Fixed asset additions | 417 | 228 | 539 | 461 | |
Depreciation and amortization expense | 433 | 407 | 878 | 806 | |
Total interest income from external customers | 10,059 | 9,780 | 19,904 | 20,177 | |
Intersegment Eliminations [Member] | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total non-interest income | (1,335) | (896) | (2,654) | (2,164) | |
Total non-interest expense | (116) | (158) | (244) | (345) | |
Income before income taxes | (1,219) | (738) | (2,410) | (1,819) | |
Net income | (1,219) | (738) | (2,410) | (1,819) | |
Total assets | (148,804) | (153,357) | (148,804) | (153,357) | |
Total loans, net | (43,411) | (51,933) | (43,411) | (51,933) | |
Investment in subsidiaries | (88,228) | (84,718) | (88,228) | (84,718) | |
Total interest income from affiliates | (415) | (739) | (847) | (1,485) | |
FUSB [Member] | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total loans, net | 628,250 | 628,250 | 585,296 | ||
FUSB [Member] | Operating Segments [Member] | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Net interest income | 7,384 | 6,442 | 14,472 | 12,922 | |
Provision | 515 | 530 | 820 | 778 | |
Total non-interest income | 789 | 1,251 | 1,613 | 2,345 | |
Total non-interest expense | 6,365 | 6,110 | 12,642 | 12,266 | |
Income before income taxes | 1,293 | 1,053 | 2,623 | 2,223 | |
Provision for income taxes | 275 | 220 | 559 | 494 | |
Net income | 1,018 | 833 | 2,064 | 1,729 | |
Total assets | 949,711 | 848,376 | 949,711 | 848,376 | |
Total investment securities | 123,502 | 103,883 | 123,502 | 103,883 | |
Total loans, net | 671,661 | 561,253 | 671,661 | 561,253 | |
Goodwill and core deposit intangible, net | 8,227 | 8,605 | 8,227 | 8,605 | |
Fixed asset additions | 417 | 223 | 535 | 442 | |
Depreciation and amortization expense | 409 | 376 | 830 | 742 | |
Total interest income from external customers | 7,719 | 6,872 | 15,161 | 14,129 | |
Total interest income from affiliates | 413 | 733 | 843 | 1,473 | |
ALC [Member] | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Total loans, net | 49,506 | 49,506 | $ 53,078 | ||
ALC [Member] | Operating Segments [Member] | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Net interest income | 1,927 | 2,174 | 3,900 | 4,574 | |
Provision | (17) | 320 | 79 | 652 | |
Total non-interest income | 154 | 191 | 304 | 428 | |
Total non-interest expense | 1,811 | 2,091 | 3,649 | 4,260 | |
Income before income taxes | 287 | (46) | 476 | 90 | |
Provision for income taxes | 71 | (14) | 119 | 37 | |
Net income | 216 | (32) | 357 | 53 | |
Total assets | 51,836 | 60,044 | 51,836 | 60,044 | |
Total loans, net | 49,506 | 56,742 | 49,506 | 56,742 | |
Fixed asset additions | 5 | 4 | 19 | ||
Depreciation and amortization expense | 24 | 31 | 48 | 64 | |
Total interest income from external customers | 2,340 | 2,907 | 4,743 | 6,047 | |
Other Segments [Member] | Operating Segments [Member] | |||||
Segment Reporting Revenue Reconciling Item [Line Items] | |||||
Net interest income | 1 | 7 | 4 | 13 | |
Total non-interest income | 1,201 | 784 | 2,497 | 2,018 | |
Total non-interest expense | 339 | 538 | 748 | 894 | |
Income before income taxes | 863 | 253 | 1,753 | 1,137 | |
Provision for income taxes | (75) | (88) | (139) | (151) | |
Net income | 938 | 341 | 1,892 | 1,288 | |
Total assets | 94,203 | 90,684 | 94,203 | 90,684 | |
Total investment securities | 81 | 81 | 81 | 81 | |
Investment in subsidiaries | 88,228 | 84,718 | 88,228 | 84,718 | |
Total interest income from external customers | 1 | 1 | |||
Total interest income from affiliates | $ 2 | $ 6 | $ 4 | $ 12 |
Other Operating Income and Ex_3
Other Operating Income and Expense - Other Operating Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Other Income And Expenses [Abstract] | ||||
Bank-owned life insurance | $ 109 | $ 107 | $ 217 | $ 215 |
Credit insurance commissions and fees | (18) | 45 | 87 | 198 |
Auto Club revenue | 37 | 18 | 56 | 53 |
ATM fee income | 155 | 116 | 291 | 216 |
Wire transfer fees | 17 | 15 | 31 | 28 |
Gain on sales of premises and equipment and other assets | 8 | 8 | ||
Other income | 45 | 44 | 116 | 159 |
Total | $ 345 | $ 353 | $ 798 | $ 877 |
Other Operating Income and Ex_4
Other Operating Income and Expense - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Finite Lived Intangible Assets [Line Items] | ||||
Revenue, remaining performance obligation, amount | $ 0 | $ 0 | ||
Contract with customer, liability, total | 0 | 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 | $ 500 | $ 600 | $ 1,000 | $ 1,400 |
Other Operating Income and Ex_5
Other Operating Income and Expense - Other Operating Expense (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Postage, stationery and supplies | $ 197 | $ 218 | $ 412 | $ 432 |
Telephone/data communication | 227 | 229 | 459 | 452 |
Advertising and marketing | 53 | 42 | 82 | 86 |
Travel and business development | 39 | 23 | 67 | 149 |
Collection and recoveries | 64 | 60 | 110 | 145 |
Other services | 79 | 85 | 143 | 176 |
Insurance expense | 152 | 141 | 315 | 303 |
FDIC insurance and state assessments | 177 | 116 | 330 | 196 |
Loss on sales of premises and equipment and other assets | 22 | 121 | 54 | 287 |
Amortization of intangible assets | 183 | 220 | ||
Other real estate/foreclosure expense, net | (20) | 22 | (13) | 41 |
Other expense | 466 | 402 | 1,027 | 744 |
Total | 1,548 | 1,568 | 3,169 | 3,230 |
Core Deposits [Member] | ||||
Amortization of intangible assets | $ 92 | $ 109 | $ 183 | $ 219 |
Guarantees, Commitments and C_3
Guarantees, Commitments and Contingencies - Summary of Commitment and Contingent Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Standby Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 180 | |
Standby Performance Letters of Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 582 | 580 |
Commitments to Extend Credit [Member] | ||
Fair Value Off Balance Sheet Risks Disclosure Information [Line Items] | ||
Commitments and contingent liabilities | $ 136,114 | $ 118,699 |
Guarantees, Commitments and C_4
Guarantees, Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
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 | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Financial and Nonfinancial Liabilities, Fair Value Disclosure | $ 0 | $ 0 |
Fair Value of Financial Instr_4
Fair Value of Financial Instruments - Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | $ 118,735 | $ 84,993 |
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 | 48,022 | 25,537 |
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 | 48,022 | 25,537 |
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 | 48,022 | 25,537 |
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 | 32,279 | 41,487 |
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 | 32,279 | 41,487 |
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 | 32,279 | 41,487 |
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 | 3,828 | 5,108 |
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 | 3,828 | 5,108 |
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 | 3,828 | 5,108 |
Corporate Notes [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, at fair value | 4,355 | 2,784 |
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 | 4,355 | 2,784 |
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 | 4,355 | 2,784 |
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 | 30,251 | 10,077 |
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 | 30,251 | 10,077 |
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 | 30,251 | 10,077 |
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 | 1,658 | 2,610 |
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 | $ 1,658 | $ 2,610 |
Fair Value of Financial Instr_5
Fair Value of Financial Instruments - Assets Measured at Fair Value on Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 5 | |
OREO and other assets held-for-sale | 846 | |
Fair Value, Recurring [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 5 | $ 28 |
OREO and other assets held-for-sale | 846 | 949 |
Fair Value, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | 5 | 28 |
OREO and other assets held-for-sale | $ 846 | $ 949 |
Fair Value of Financial Instr_6
Fair Value of Financial Instruments - Assets and Liabilities Measured at Fair Value Using Significant Unobservable Inputs (Level 3) (Details) - Fair Value, Inputs, Level 3 [Member] $ in Thousands | Jun. 30, 2021USD ($) |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | $ 5 |
OREO and other assets held-for-sale | $ 846 |
Minimum [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 9 |
OREO and other assets held-for-sale | 9 |
Maximum [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 10 |
OREO and other assets held-for-sale | 10 |
Weighted Average [Member] | Measurement Input, Comparability Adjustment [Member] | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | |
Impaired loans | 9.5 |
OREO and other assets held-for-sale | 9.5 |
Fair Value of Financial Instr_7
Fair Value of Financial Instruments - Estimated Fair Value and Related Carrying or Notional Amounts of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Assets: | ||
Investment securities available-for-sale | $ 118,735 | $ 84,993 |
Investment securities held-to-maturity | 4,943 | 6,559 |
Reported Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 81,823 | 94,415 |
Investment securities available-for-sale | 118,735 | 84,993 |
Investment securities held-to-maturity | 4,848 | 6,429 |
Federal funds sold | 83 | 85 |
Federal Home Loan Bank stock | 870 | 1,135 |
Loans, net of allowance for loan and lease losses | 677,756 | 638,374 |
Liabilities: | ||
Deposits | 837,885 | 782,212 |
Short-term borrowings | 10,017 | 10,017 |
Other liabilities - derivatives | 1,658 | 2,610 |
Estimate of Fair Value Measurement [Member] | ||
Assets: | ||
Cash and cash equivalents | 81,823 | 94,415 |
Investment securities available-for-sale | 118,735 | 84,993 |
Investment securities held-to-maturity | 4,943 | 6,559 |
Federal funds sold | 83 | 85 |
Federal Home Loan Bank stock | 870 | 1,135 |
Loans, net of allowance for loan and lease losses | 682,148 | 650,107 |
Liabilities: | ||
Deposits | 838,482 | 784,574 |
Short-term borrowings | 10,017 | 10,017 |
Other liabilities - derivatives | 1,658 | 2,610 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Cash and cash equivalents | 81,823 | 94,415 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Assets: | ||
Investment securities available-for-sale | 118,735 | 84,993 |
Investment securities held-to-maturity | 4,943 | 6,559 |
Federal funds sold | 83 | 85 |
Liabilities: | ||
Deposits | 838,482 | 784,574 |
Short-term borrowings | 10,017 | 10,017 |
Other liabilities - derivatives | 1,658 | 2,610 |
Estimate of Fair Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Assets: | ||
Federal Home Loan Bank stock | 870 | 1,135 |
Loans, net of allowance for loan and lease losses | $ 682,148 | $ 650,107 |