United Bancorp (UBCP) 10-Q 12 Nov 20 2020 Q3 Quarterly report Financial data

Document And Entity Information

Document And Entity Information - shares	9 Months Ended
	Sep. 30, 2020	Nov. 06, 2020
Document And Entity Information
Document Type	10-Q
Document Period End Date	Sep. 30, 2020
Entity Registrant Name	UNITED BANCORP INC /OH/
Title of 12(b) Security	Common Stock, Par Value $1.00
Trading Symbol	UBCP
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		5,976,351
Entity Central Index Key	0000731653
Current Fiscal Year End Date	--12-31
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q3
Amendment Flag	false

Condensed Consolidated Balance

Condensed Consolidated Balance Sheets - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Assets
Cash and due from banks	$ 8,303	$ 5,697
Interest-bearing demand deposits	42,634	9,288
Cash and cash equivalents	50,937	14,985
Available-for-sale securities	158,244	188,785
Loans, net of allowance for loan losses of $5,228 and $2,231 at September 30, 2020 and December 31, 2019, respectively	438,048	439,317
Premises and equipment	13,572	12,402
Federal Home Loan Bank stock	4,252	4,012
Foreclosed assets held for sale, net	746	819
Core deposit intangible asset	747	860
Goodwill	682	682
Accrued interest receivable	3,070	2,697
Bank-owned life insurance	18,002	17,196
Other assets	5,204	3,951
Total assets	693,504	685,706
Deposits
Demand	369,777	334,380
Savings	117,487	108,218
Time	89,592	105,471
Total deposits	576,856	548,069
Securities sold under repurchase agreements	17,027	6,915
Federal Home Loan Bank advances	0	39,800
Deferred federal income tax	2,041	1,736
Subordinated debentures	23,589	23,543
Interest payable and other liabilities	7,300	5,721
Total liabilities	626,813	625,784
Stockholders' Equity
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued	0	0
Common stock, $1 par value; authorized 10,000,000 shares; issued 2020 -5,976,351 shares, 2019 -5,959,351 shares; outstanding 2020 - 5,731,976, 2019 - 5,740,817	5,976	5,959
Additional paid-in capital	23,060	22,871
Retained earnings	30,697	27,905
Stock held by deferred compensation plan; 2020 -164,782 shares, 2019 - 176,134 shares	(1,608)	(1,659)
Unearned ESOP compensation	(59)	(228)
Accumulated other comprehensive gain	9,613	5,536
Treasury stock, at cost 2020 -79,593 shares, 2018 - 42,400 shares	(988)	(462)
Total stockholders' equity	66,691	59,922
Total liabilities and stockholders' equity	$ 693,504	$ 685,706

Condensed Consolidated Balanc_2

Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Condensed Consolidated Balance Sheets
Loans, allowance for loan losses	$ 5,228	$ 2,231
Preferred stock, no par value	$ 0	$ 0
Preferred stock, authorized	2,000,000	2,000,000
Preferred stock, shares issued	0	0
Common stock, par value	$ 1	$ 1
Common stock, authorized	10,000,000	10,000,000
Common stock, issued	5,976,351	5,959,351
Common Stock, Shares, Outstanding	5,731,976	5,740,817
Stock held by deferred compensation plan, shares	(164,782)	176,134
Treasury stock, shares	79,593	42,400

Condensed Consolidated Statemen

Condensed Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Interest and dividend income
Loans, including fees	$ 5,379	$ 5,508	$ 16,646	$ 16,142
Taxable securities	121	296	537	698
Non-taxable securities	1,164	996	3,660	2,569
Federal funds sold	6	75	39	306
Dividends on Federal Home Loan Bank stock and other	22	46	78	169
Total interest and dividend income	6,692	6,921	20,960	19,884
Deposits
Demand	168	620	1,296	1,785
Savings	7	52	30	150
Time	403	613	1,352	1,701
Borrowings	370	441	1,382	766
Total interest expense	948	1,726	4,060	4,402
Net interest income	5,744	5,195	16,900	15,482
Provision for loan losses	1,333	120	3,304	330
Net interest income after provision for loan losses	4,411	5,075	13,596	15,152
Noninterest income
Service charges on deposit accounts	645	731	1,975	2,138
Realized gains on available-for-sale securities	1,344		2,594	0
Realized gains on sales of loans	47	25	93	38
Other income	304	247	878	719
Total noninterest income	2,340	1,003	5,540	2,895
Noninterest expense
Salaries and employee benefits	2,293	2,153	6,935	6,490
Net occupancy and equipment expense	612	567	1,827	1,684
Professional services	330	351	978	961
Insurance	128	118	358	340
Deposit insurance premiums	47	27	137	139
Franchise and other taxes	122	108	369	322
Advertising	119	137	337	412
Stationery and office supplies	35	33	87	103
Amortization of core deposit premium	38	38	113	113
Other expenses	768	630	2,340	1,932
Total noninterest expense	4,492	4,162	13,481	12,496
Income before federal income taxes	2,259	1,916	5,655	5,551
Federal income taxes	200	135	342	510
Net income	$ 2,059	$ 1,781	$ 5,313	$ 5,041
EARNINGS PER COMMON SHARE
Basic Earnings Per Share	$ 0.36	$ 0.31	$ 0.93	$ 0.88
Diluted Earnings Per Share	0.36	0.31	0.93	0.88
DIVIDENDS PER COMMON SHARE	$ 0.1425	$ 0.1375	$ 0.42750	$ 0.4050

Condensed Consolidated Statem_2

Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Comprehensive Income
Net income	$ 2,059	$ 1,781	$ 5,313	$ 5,041
Other comprehensive income (loss), net of tax
Reclassification adjustment for realized gains on available-for-sale securities included in net income, net of taxes $282, $---, $545 and $--- for each respective period	(1,062)		(2,049)
Unrealized holding gains on securities during the period, net of tax of $91, $519, $1,628 and $1,822 for each respective period	341	1,955	6,126	6,770
Comprehensive income	$ 1,338	$ 3,736	$ 9,390	$ 11,811

Condensed Consolidated Statem_3

Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Condensed Consolidated Statements of Comprehensive Income
Reclassification adjustment for realized gains on available for sale securities included in net income net of taxes	$ 282	$ 0	$ 545	$ 0
Unrealized holding gains (losses) on securities during the period, net of tax	$ 91	$ 519	$ 1,628	$ 1,822

Consolidated Statements of Stoc

Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands	Common Stock	Additional Paid-in Capital	Treasury Stock And Deferred Compensation	Shares Acquired By ESOP	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Total
Beginning Balance at Dec. 31, 2018	$ 5,927	$ 22,556	$ (1,747)	$ (404)	$ 24,321	$ (10)	$ 50,643
Net income					5,041		5,041
Other comprehensive income (loss)						6,770	6,770
Cash dividends - per share					(2,393)		(2,393)
Shares sold for deferred compensation plan		(98)	98
Repurchase of common stock			(416)				(416)
Expense related to share-based compensation plans		206					206
Restricted stock activity	32	(32)
Amortization of ESOP				204			204
Ending Balance at Sep. 30, 2019	5,959	22,632	(2,065)	(200)	26,969	6,760	60,055
Beginning Balance at Jun. 30, 2019	5,939	22,517	(2,015)	(268)	26,002	4,805	56,980
Net income	0	0	0	0	1,781	0	1,781
Other comprehensive income (loss)	0	0	0	0	0	1,955	1,955
Cash dividends - per share	0	0	0	0	(814)	0	(814)
Shares sold for deferred compensation plan	0	50	(50)	0	0	0	0
Expense related to share-based compensation plans	0	85	0	0	0	0	85
Restricted stock activity	20	(20)	0	0	0	0	0
Amortization of ESOP	0	0	0	68	0	0	68
Ending Balance at Sep. 30, 2019	5,959	22,632	(2,065)	(200)	26,969	6,760	60,055
Beginning Balance at Dec. 31, 2019	5,959	22,871	(2,121)	(228)	27,905	5,536	59,922
Net income					5,313		5,313
Other comprehensive income (loss)						4,077	4,077
Cash dividends - per share					(2,521)		(2,521)
Shares sold for deferred compensation plan		(51)	51
Repurchase of common stock			(526)				(526)
Expense related to share-based compensation plans		219					219
Restricted stock activity	17	(20)					(3)
Amortization of ESOP		41		169			210
Ending Balance at Sep. 30, 2020	5,976	23,060	(2,596)	(59)	30,697	9,613	66,691
Beginning Balance at Jun. 30, 2020	5,966	22,845	(2,555)	(84)	29,479	10,334	65,985
Net income	0	0	0	0	2,059	0	2,059
Other comprehensive income (loss)	0	0	0	0	0	(721)	(721)
Cash dividends - per share	0	0	0	0	(841)	0	(841)
Shares sold for deferred compensation plan	0	41	(41)	0	0	0	0
Expense related to share-based compensation plans	0	146	0	0	0	0	146
Restricted stock activity	10	(13)	0	0	0	0	(3)
Amortization of ESOP	0	41	0	25	0	0	66
Ending Balance at Sep. 30, 2020	$ 5,976	$ 23,060	$ (2,596)	$ (59)	$ 30,697	$ 9,613	$ 66,691

Consolidated Statements of St_2

Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Consolidated Statements of Stockholders' Equity
Cash dividends, per share	$ 0.1425	$ 0.1375	$ 0.42750	$ 0.4050

Condensed Consolidated Statem_4

Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands	9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019
Operating Activities
Net income	$ 5,313	$ 5,041
Items not requiring (providing) cash
Accretion of premiums and discounts on securities, net	314	232
Amortization of intangible asset	113	113
Depreciation and amortization	875	781
Expense related to share based compensation plans	219	206
Expense related to ESOP	210	204
Provision for loan losses	3,304	330
Increase in value of bank-owned life insurance	(356)	(230)
Gain on sale of loans	(93)	(38)
Proceeds from sale of loans held for sale	4,289	1,285
Originations of loans held for sale	(4,196)	(1,247)
Gain on sale or write down of foreclosed assets	(3)	5
Gain on sale of available-for-sale securities	(2,594)	0
Amortization of debt service costs	46	0
Net change in accrued interest receivable and other assets	(735)	(1,971)
Net change in accrued expenses and other liabilities	(185)	1,516
Net cash provided by operating activities	6,521	6,227
Securities available for sale:
Maturities, prepayments and calls	28,908	24,250
Purchases	(22,602)	(89,645)
Proceeds from sale of available-for-sale securities	31,675	0
Net change in loans	(2,051)	(11,825)
Mandatory redemption of Federal Home Loan Bank Stock	(240)	230
Purchase of Bank Owned Life insurance	(450)	(4,000)
Bank Owned Life Insurance return of principal	0	247
Purchases of premises and equipment-net	(2,046)	(1,152)
Proceeds from sale of foreclosed assets	185	86
Net cash provided by (used in) investing activities	33,379	(81,809)
Financing Activities
Net change in deposits	28,787	24,553
Net change in securities sold under repurchase agreements	10,112	1,834
Net change in FHLB overnight borrowings	(39,800)	20,800
Proceeds from issuance of subordinated debentures, net of origination fees	0	19,404
Repayments of long-term borrowings	0	(106)
Repurchase of common stock	(526)	(416)
Cash dividends paid on common stock	(2,521)	(2,393)
Net cash (used in) provided by financing activities	(3,948)	63,676
Increase in Cash and Cash Equivalents	35,952	(11,906)
Cash and Cash Equivalents, Beginning of Period	14,985	25,253
Cash and Cash Equivalents, End of Period	50,937	13,347
Supplemental Cash Flows Information
Interest paid on deposits and borrowings	3,613	4,419
Federal income taxes	480	0
Purchases of available-for-sale securities not settled	0	3,153
Supplemental Disclosure of Non-Cash Investing and Financing Activities
Transfers from loans to foreclosed assets held for sale	$ 110	$ 30

Summary of Significant Accounti

Summary of Significant Accounting Policies	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	Note 1: Summary of Significant Accounting Policies These interim financial statements are prepared without audit and reflect all adjustments which, in the opinion of management, are necessary to present fairly the financial position of United Bancorp, Inc. (“Company”) at September 30, 2020, and its results of operations and cash flows for the interim periods presented. All such adjustments are normal and recurring in nature. The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not purport to contain all the necessary financial disclosures required by accounting principles generally accepted in the United States of America that might otherwise be necessary in the circumstances and should be read in conjunction with the Company’s consolidated financial statements and related notes for the year ended December 31, 2019 included in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. The results of operations for the three months and nine months ended September 30, 2020, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2019 has been derived from the audited consolidated balance sheet of the Company as of that date. Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moudssville West Virginia. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate and are not considered "sub prime" type loans. The targeted lending areas of our Bank operations encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company's branch locations. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for loan losses and fair values of financial instruments are particularly subject to change. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1‑4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 120 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost- recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior five years. Management believes the five year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. 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 loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% - 35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share (EPS) were computed as follows: Three Months Ended September 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,059 Less allocated earnings on non-vested restricted stock (52) Less allocated dividends on non-vested restricted stock (36) Net income allocated to common stockholders 1,971 5,467,745 Basic and diluted earnings per share $ 0.36 Three Months Ended September 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,781 Less allocated earnings on non-vested restricted stock (37) Less dividends on non-vested restricted stock (30) Net income allocated to common stockholders 1,714 5,519,677 Basic and diluted earnings per share $ 0.31 Nine Months Ended September 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 5,313 Less allocated earnings on non-vested restricted stock (119) Less allocated dividends on non-vested restricted stock (105) Net income allocated to common stockholders 5,089 5,465,854 Basic and diluted earnings per share $ 0.93 Nine Months Ended September 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 5,041 Less allocated earnings on non-vested restricted stock (92) Less dividends on non-vested restricted stock (81) Net income allocated to common stockholders 4,868 5,518,500 Basic and diluted earnings per share $ 0.88 Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2016. Recently Adopted Accounting Pronouncements On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). ” ASU 2016-02 is intended to improve financial reporting about leasing transactions. This ASU affects all companies and other organization that lease assets such as real estate, airplanes, and manufacturing equipment. Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) (b) Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. Right of use assets represents the Company’s right to use the underlying assets for their lease terms and lease liabilities represent the obligation to make lease payments. The Company adopted ASU 2016-02 January 1, 2019. The right of use asset and lease obligation recorded as of March 31, 2019 was approximately $126,000 and is reflected in other assets and interest payable and other liabilities, respectively on the balance sheet. The modified retrospective method was applied. Due to the immateriality of the impact, certain disclosures under ASU 842 have been omitted. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016‑13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016‑13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016‑13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016‑13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. On October 16, 2019, FASB approved a final ASU delaying the effective date of ASU 2016-13 for small reporting companies to interim and annual periods beginning after December 15, 2022. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. As of September 30, 2020, the Company is working with a third party to continues to run projections and reviewing segmentation to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 3.

Securities

Securities	9 Months Ended
	Sep. 30, 2020
Securities
Securities	Note 2: Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: September 30, 2020: U.S. government agencies $ 10,000 $ 89 $ — $ 10,089 Subordinated notes 4,500 — (49) 4,451 State and municipal obligations 130,195 $ 13,509 — 143,704 Total debt securities $ 144,695 $ 13,598 $ (49) $ 158,244 Available-for-sale Securities: December 31, 2019: U.S. government agencies $ 40,000 $ — $ (472) $ 39,528 Subordinated notes 4,500 36 (4) 4,532 State and municipal obligations $ 135,897 $ 8,993 $ (165) $ 144,725 Total debt securities $ 180,397 $ 9,029 $ (641) $ 188,785 The amortized cost and fair value of available-for-sale securities at September 30, 2019, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Available-for-sale Amortized Fair Cost Value (In thousands) Within one year $ — $ — One to five years — — Five to ten year 14,500 14,540 Due after ten years 130,195 143,704 Totals $ 144,695 $ 158,244 The carrying value of securities pledged to secure public deposits and for other purpose, was $44.0 million and $46.8 million at September 30, 2020 and December 31, 2019, respectively. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at September 30, 2020 and December 31, 2019, was $4.5 million and $50.3 million, which represented approximately 3% and 27%, respectively, of the Company’s available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary and are a result on an general increase in longer term interest rates. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables show the Company’s investments’ 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 at September 30, 2020 and December 31, 2019: September 30, 2020 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US Government agencies $ — $ — $ — $ — $ — $ — Subordinated notes 4,500 $ (49) $ — $ — $ 4,500 $ (49) State and municipal obligations — $ — $ — $ — $ — $ Total temporarily impaired securities $ 4,500 $ (49) $ — $ — $ 4,500 $ (49) December 31, 2019 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US Government agencies $ 39,528 $ (472) $ — $ — $ 39,528 $ (472) Subordinated notes 996 $ (4) $ — $ — $ 996 $ (4) State and municipal obligations $ 9,831 $ (165) $ — $ — $ 9,831 $ (165) Total temporarily impaired securities $ 50,355 $ (641) $ — $ — $ 50,355 $ (641) The unrealized losses on the Company’s investments in U.S. Government agencies were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at September 30, 2020 and December 31, 2019. During the nine months ended September 30, 2020 the Company sold $23.7 million of State and Municipal securities for a total gain of approximately $2,525,000 and the Company also sold $8.0 million of US Government Agency bonds for a total gain of approximately $69,000. There were no sales of investment securities for the three and nine months ended September 30, 2019.

Loans and Allowance for Loan Lo

Loans and Allowance for Loan Losses	9 Months Ended
	Sep. 30, 2020
Loans and Allowance for Loan Losses
Loans and Allowance for Loan Losses	Note 3: Loans and Allowance for Loan Losses Categories of loans include: September 30, December 31, 2020 2019 (In thousands) Commercial loans $ 100,460 $ 99,995 Commercial real estate 245,343 254,651 Residential real estate 88,618 77,205 Installment loans 8,855 9,697 Total gross loans 443,276 441,548 Less allowance for loan losses (5,228) (2,231) Total loans $ 438,048 $ 439,317 The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Residential and Installment Residential and installment loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some installment personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and nine month periods ended September 30, 2020 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, July 1, 2020 $ 2,344 $ 751 $ 600 $ 320 $ — $ 4,015 Provision charged to expense (1,031) 1,202 988 174 — 1,333 Losses charged off (5) (63) (21) (55) — (144) Recoveries 13 — 1 10 — 24 Balance, September 30, 2020 $ 1,321 $ 1,890 $ 1,568 $ 449 $ — $ 5,228 Balance, January 1, 2020 $ 568 $ 792 $ 572 $ 299 $ — $ 2,231 Provision charged to expense 777 1,288 1,027 212 — 3,304 Losses charged off (47) (190) (33) (115) — (385) Recoveries 23 — 2 53 — 78 Balance, September 30, 2020 $ 1,321 $ 1,890 $ 1,568 $ 449 $ — $ 5,228 Allocation: Ending balance: individually evaluated for impairment $ 4 $ 21 $ — $ — $ — $ 25 Ending balance: collectively evaluated for impairment $ 1,317 $ 1,869 $ 1,568 $ 449 $ — $ 5,203 Loans: Ending balance: individually evaluated for impairment $ 22 $ 614 $ 525 $ 134 $ — $ 1,295 Ending balance: collectively evaluated for impairment $ 100,438 $ 244,729 $ 88,093 $ 8,721 $ — $ 441,981 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and nine month periods ended September 30, 2019 Commercial Residential Commercial Real Estate Real Estate Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, July 1, 2019 $ 262 $ 799 $ 747 $ 334 $ — $ 2,142 Provision charged to expense 95 (93) 53 65 — 120 Losses charged off — — (100) (54) — (154) Recoveries — — 1 12 — 13 Balance, September 30, 2019 $ 357 $ 706 $ 701 $ 357 $ — $ 2,121 Balance, January 1, 2019 $ 389 $ 672 $ 519 $ 463 $ — $ 2,043 Provision charged to expense (15) 34 311 — — 330 Losses charged off (18) –– (140) (136) — (294) Recoveries 1 — 11 30 — 42 Balance, September 30, 2019 $ 357 $ 706 $ 701 $ 357 $ — $ 2,121 Allocation: Ending balance: individually evaluated for impairment $ 63 $ — $ — $ — $ — $ 63 Ending balance: collectively evaluated for impairment $ 294 $ 706 $ 701 $ 357 $ — $ 2,058 Loans: Ending balance: individually evaluated for impairment $ 1,330 $ 369 $ 558 $ — $ — $ 2,257 Ending balance: collectively evaluated for impairment $ 100,476 $ 234,469 $ 73,969 $ 10,094 $ — $ 419,008 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2019 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ — $ –– $ –– $ — $ — Ending balance: collectively evaluated for impairment $ 568 $ 792 $ 572 $ 299 $ — $ 2,231 Loans: Ending balance: individually evaluated for impairment $ 71 $ 371 $ 594 $ — — $ 1,036 Ending balance: collectively evaluated for impairment $ 99,924 $ 254,280 $ 76,611 $ 9,697 $ — $ 440,512 The following tables show the portfolio quality indicators. September 30, 2020 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 100,435 $ 241,780 $ 88,093 $ 8,721 $ 439,029 Special Mention — 2,727 — — 2,727 Substandard 25 836 525 134 1,520 Doubtful — — — — — $ 100,460 $ 245,343 $ 88,618 $ 8,855 $ 443,276 December 31, 2019 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 99,924 $ 249,563 $ 76,611 $ 9,697 $ 435,795 Special Mention — 4,016 — — 4,016 Substandard 71 1,072 594 — 1,737 Doubtful — — — — — $ 99,995 $ 254,651 $ 77,205 $ 9,697 $ 441,548 To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the ALLL, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis. The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position. The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected. The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the current and past year to date periods presented. Loan Portfolio Aging Analysis As of September 30, 2020 30-59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ — $ — $ — $ 37 $ 37 $ 100,423 $ 100,460 Commercial real estate — — — 497 497 244,846 245,343 Residential 108 — — 1,010 1,118 87,500 88,618 Installment 9 — — — 9 8,846 8,855 Total $ 117 $ — $ — $ 1,544 $ 1,661 $ 441,615 $ 443,276 Loan Portfolio Aging Analysis As of December 31, 2019 30‑59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ 129 $ 132 $ –– $ 30 $ 291 $ 99,704 $ 99,995 Commercial real estate –– 214 197 348 759 253,892 254,651 Residential 448 — 29 1,074 1,551 75,654 77,205 Installment 58 1 –– — 59 9,638 9,697 Total $ 635 $ 347 $ 226 $ 1,452 $ 2,660 $ 438,888 $ 441,548 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310‑10‑35‑16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Impaired Loans For the three months ended For the nine months ended As of September 30, 2020 September 30, 2020 September 30, 2020 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ (5) $ — $ 1 Commercial real estate 522 585 — 593 9 589 14 Residential 525 532 — 525 7 493 21 Installment 134 148 — 150 1 151 5 1,181 1,265 — 1,268 12 1,233 41 Loans with a specific valuation allowance: Commercial 22 22 4 23 — 24 1 Commercial real estate 92 92 21 92 3 92 3 Residential — — — — — — –– Installment –– –– –– –– — –– — Total: Commercial $ 22 $ 22 $ 4 $ 23 $ (5) $ 24 $ 2 Commercial real estate $ 614 $ 677 $ 21 $ 685 $ 12 $ 681 $ 17 Residential $ 525 $ 532 $ — $ 525 $ 7 $ 493 $ 21 Installment $ 134 $ 148 $ — $ 150 $ 1 $ 151 $ 5 Impaired Loans For the three months ended For the nine months ended As of December 31, 2019 September 30, 2019 September 30, 2019 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 71 $ 71 $ — $ 966 $ 9 $ 956 $ 13 Commercial real estate 371 371 — 374 2 350 8 Residential 594 594 — 640 11 644 18 Installment — — — — — — 1,036 1,036 — 1,980 22 1,950 39 Loans with a specific valuation allowance: Commercial — — — 366 — 365 3 Commercial real estate — — — — — — — Residential — — — –– –– –– — Installment — — — –– –– –– — — — — 366 — 365 3 Total: Commercial $ 71 $ 71 $ — $ 1,332 $ 9 $ 1,321 $ 16 Commercial real estate $ 371 $ 371 $ — $ 374 $ 2 $ 350 $ 8 Residential $ 594 $ 594 $ — $ 640 $ 11 $ 644 $ 18 Installment $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis was not materiality different than interest income recognized. For the TDRs noted in the tables below, the Company extended the maturity dates and granted interest rate concessions as part of each of those loan restructurings. The loans included in the tables are considered impaired and specific loss calculations are performed on the individual loans. In conjunction with the restructuring there were no amounts charged-off. Three Months ended September 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended September 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Nine Months ended September 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 3 $ 67 $ 67 Commercial real estate 1 86 86 Residential — — — Installment — — — Nine Months Ended September 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 23 $ 44 $ 67 Commercial real estate — 86 — 87 Residential — — — — Consumer — — — — Three Months ended September 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 2 $ 82 $ 82 Commercial real estate — — — Residential — — — Installment — — — Three Months Ended September 30, 2019 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 82 $ — $ 82 Commercial real estate — — — — Residential — — — — Consumer — — — — Nine Months ended September 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Recorded Recorded Number of Contracts Investment Investment (In thousands) Commercial 2 $ 82 $ 82 Commercial real estate — — — Residential — — — Installment — — — Nine Months Ended September 30, 2019 Interest Total Only Term Combination Modification (In thousands) Commercial $ 2 $ 82 $ — $ 82 Commercial real estate — — — — Residential — — — — Consumer — — — — During the nine months ended September 30, 2019 and 2020 troubled debt restructurings did not have an impact on the allowance for loan losses. At September 30, 2020 and 2019 and for three and nine month periods then ended, there were no defaults of any troubled debt restructurings that were modified in the last 12 months. The Company generally considers TDR’s that become 90 days or more past due under the modified terms as subsequently defaulted.

Benefit Plans

Benefit Plans	9 Months Ended
	Sep. 30, 2020
Benefit Plans
Benefit Plans	Note 4: Benefit Plans Pension expense includes the following: Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Service cost $ 98 $ 75 $ 294 $ 225 Interest cost 59 55 177 165 Expected return on assets (117) (102) (351) (306) Amortization of prior service cost and net loss 13 1 39 3 Pension expense $ 53 $ 29 $ 159 $ 87

Off-balance-sheet Activities

Off-balance-sheet Activities	9 Months Ended
	Sep. 30, 2020
Off-balance-sheet Activities
Off-balance-sheet Activities	Note 5: Off-balance-sheet Activities Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contracts are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: September 30, December 31, 2020 2019 (In thousands) Commercial loans unused lines of credit $ 33,406 $ 40,538 Commitment to originate loans 30,927 38,722 Consumer open end lines of credit 39,244 38,575 Standby lines of credit 22 46

Accumulated Other Comprehensive

Accumulated Other Comprehensive Income (Loss)	9 Months Ended
	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss)
Accumulated Other Comprehensive Income (Loss)	Note 6: Accumulated Other Comprehensive Income (Loss) The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: September 30, December 31, 2020 2019 (In thousands) Net unrealized gain on securities available-for-sale $ 13,549 $ 8,389 Net unrealized loss for unfunded status of defined benefit plan liability (1,381) (1,381) 12,168 7,008 Tax effect (2,555) (1,472) Net-of-tax amount $ 9,613 $ 5,536

Fair Value Measurements

Fair Value Measurements	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Fair Value Measurements	Note 7: Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) September 30, 2020 U.S. government agencies $ 10,089 $ — $ 10,089 $ — State and municipal obligations 143,704 — 143,704 — Subordinated notes 4,451 — 4,451 — December 31, 2019 U.S. government agencies $ 39,528 $ — $ 39,528 $ — State and municipal obligations $ 144,725 $ — $ 144,725 $ — Subordinated notes $ 4,532 $ — $ 4,532 $ — Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) Collateral dependent impaired loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of foreclosed assets held for sale are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2020 Collateral dependent impaired loans $ 89 $ — $ — $ 89 Foreclosed assets held for sale — — — — December 31, 2019 Collateral dependent impaired loans $ — $ — $ — $ — Foreclosed assets held for sale — — — — Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation 9/30/20 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 89 Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale $ — Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation 12/31/19 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ — Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale $ — Market comparable properties Marketability discount 10% – 35% There were no significant changes in the valuation techniques used during 2020 and 2019. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2020 Financial assets Cash and cash equivalents $ 50,937 $ 50,937 $ — $ — Loans, net of allowance 438,048 — — 436,722 Federal Home Loan Bank stock 4,252 — 4,252 — Accrued interest receivable 3,070 — 3,070 — Financial liabilities Deposits 576,856 — 577,842 — Short term borrowings 17,027 — 17,027 — Subordinated debentures 23,589 — 23,524 — Interest payable 660 — 660 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019: Financial assets Cash and cash equivalents $ 14,985 $ 14,985 $ –– $ –– Loans, net of allowance 439,317 –– –– 437,688 Federal Home Loan Bank stock 4,012 –– 4,012 –– Accrued interest receivable 2,697 –– 2,697 –– Financial liabilities Deposits 548,069 –– 548,130 –– Short term borrowings 6,915 –– 6,915 –– Federal Home Loan Bank Advances 39,800 –– 39,800 –– Subordinated debentures 23,543 –– 22,857 –– Interest payable 213 –– 213 –– The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans Fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at September 30, 2020 and December 31, 2019.

Repurchase Agreements

Repurchase Agreements	9 Months Ended
	Sep. 30, 2020
Repurchase Agreements
Repurchase Agreements	Note 8: Repurchase Agreements Securities sold under agreements to repurchase (“repurchase agreements”) with customers represent funds deposited by customers, generally on an overnight basis that are collateralized by investment securities owned by the Company. At September 30, 2020 and December 31, 2019, repurchase agreement borrowings totaled $17,027,000 and $6,915,000, respectively and are included in short-term borrowings on the consolidated condensed balance sheets. All repurchase agreements are subject to term and conditions of repurchase/security agreements between the Company and the customer and are accounted for as secured borrowings. The Company's repurchase agreements reflected in short-term borrowings, consist of customer accounts and securities which are pledged on an individual security basis. The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than 90 September 30, 2020 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 17,027 $ — $ — $ — $ 17,027 Total $ 17,027 $ — $ — $ — $ 17,027 Overnight and Greater than 90 December 31, 2019 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 6,915 $ — $ — $ — $ 6,915 Total $ 6,915 $ — $ — $ — $ 6,915 These borrowings were collateralized with U.S. government and agency securities with a carrying value of $17.9 million at September 30, 2020 and $9.4 million at December 31, 2019. Declines in the fair value would require the Company to pledge additional securities.

Goodwill and Intangible Assets

Goodwill and Intangible Assets	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets
Goodwill and Intangible Assets	Note 9: Goodwill and Intangible Assets The following table shows the changes in the carrying amount of goodwill for September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, 2020 2019 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682 Intangible assets in the consolidated balance sheets at September 30, 2020 and December 31, 2019 were as follows (in thousands): Nine Months Ended September 30, 2020 Year Ended Decmber 31, 2019 Gross Net Gross Net Intangible Accumulated Intangible Intangible Accumulated Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 294 747 1,041 181 860 The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of June 30, 2020 is as follows (in thousands): 2020 $ 38 2021 181 2022 181 2023 181 2024 166 At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. Given the current economic uncertainty and volatility surrounding COVID-19, the Company assessed whether the events and circumstances resulted in it being more likely than not that the fair value of any reporting unit was less than its carrying value. Impairment indicators considered comprised the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of the Company’s stock and other relevant events. The Company further considered the amount by which fair value exceeded book value in the most recent quantitative analysis and sensitivities performed. At the conclusion of the assessment, the Company determined that as of September 30, 2020 it was more likely than not that the fair value exceeded its carrying values. The Company will continue to monitor developments regarding the COVID-19 pandemic and measures implemented in response to the pandemic, market capitalization, overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future.

Summary of Significant Accoun_2

Summary of Significant Accounting Policies (Policies)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Principles of Consolidation	Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation.
Nature of Operations	Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg, Tiltonsville, Ohio and Moudssville West Virginia. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate and are not considered "sub prime" type loans. The targeted lending areas of our Bank operations encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company's branch locations. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control.
Revenue Recognition	Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied.
Use of Estimates	Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for loan losses and fair values of financial instruments are particularly subject to change.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1‑4 family first and junior lien mortgages to the net realizable value less costs to sell when the loan is 120 days past due, charge-off of unsecured open-end loans when the loan is 120 days past due, and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost- recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior five years. Management believes the five year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. 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 loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% - 35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously.
Earnings Per Share	Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share (EPS) were computed as follows: Three Months Ended September 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,059 Less allocated earnings on non-vested restricted stock (52) Less allocated dividends on non-vested restricted stock (36) Net income allocated to common stockholders 1,971 5,467,745 Basic and diluted earnings per share $ 0.36 Three Months Ended September 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,781 Less allocated earnings on non-vested restricted stock (37) Less dividends on non-vested restricted stock (30) Net income allocated to common stockholders 1,714 5,519,677 Basic and diluted earnings per share $ 0.31 Nine Months Ended September 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 5,313 Less allocated earnings on non-vested restricted stock (119) Less allocated dividends on non-vested restricted stock (105) Net income allocated to common stockholders 5,089 5,465,854 Basic and diluted earnings per share $ 0.93 Nine Months Ended September 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 5,041 Less allocated earnings on non-vested restricted stock (92) Less dividends on non-vested restricted stock (81) Net income allocated to common stockholders 4,868 5,518,500 Basic and diluted earnings per share $ 0.88
Income Taxes	Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2016.
Recently Adopted Accounting Pronouncements	Recently Adopted Accounting Pronouncements On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). ” ASU 2016-02 is intended to improve financial reporting about leasing transactions. This ASU affects all companies and other organization that lease assets such as real estate, airplanes, and manufacturing equipment. Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) (b) Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. Right of use assets represents the Company’s right to use the underlying assets for their lease terms and lease liabilities represent the obligation to make lease payments. The Company adopted ASU 2016-02 January 1, 2019. The right of use asset and lease obligation recorded as of March 31, 2019 was approximately $126,000 and is reflected in other assets and interest payable and other liabilities, respectively on the balance sheet. The modified retrospective method was applied. Due to the immateriality of the impact, certain disclosures under ASU 842 have been omitted.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016‑13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016‑13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016‑13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016‑13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. On October 16, 2019, FASB approved a final ASU delaying the effective date of ASU 2016-13 for small reporting companies to interim and annual periods beginning after December 15, 2022. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. As of September 30, 2020, the Company is working with a third party to continues to run projections and reviewing segmentation to ensure it is fully compliant with the amendments at adoption date. For additional information on the allowance for loan losses, see Note 3.

Summary of Significant Accoun_3

Summary of Significant Accounting Policies (Tables)	9 Months Ended
	Sep. 30, 2020
Summary of Significant Accounting Policies
Schedule of earnings per share	Earnings per share (EPS) were computed as follows: Three Months Ended September 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,059 Less allocated earnings on non-vested restricted stock (52) Less allocated dividends on non-vested restricted stock (36) Net income allocated to common stockholders 1,971 5,467,745 Basic and diluted earnings per share $ 0.36 Three Months Ended September 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,781 Less allocated earnings on non-vested restricted stock (37) Less dividends on non-vested restricted stock (30) Net income allocated to common stockholders 1,714 5,519,677 Basic and diluted earnings per share $ 0.31 Nine Months Ended September 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 5,313 Less allocated earnings on non-vested restricted stock (119) Less allocated dividends on non-vested restricted stock (105) Net income allocated to common stockholders 5,089 5,465,854 Basic and diluted earnings per share $ 0.93 Nine Months Ended September 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 5,041 Less allocated earnings on non-vested restricted stock (92) Less dividends on non-vested restricted stock (81) Net income allocated to common stockholders 4,868 5,518,500 Basic and diluted earnings per share $ 0.88

Securities (Tables)

Securities (Tables)	9 Months Ended
	Sep. 30, 2020
Securities
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses of securities	The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: September 30, 2020: U.S. government agencies $ 10,000 $ 89 $ — $ 10,089 Subordinated notes 4,500 — (49) 4,451 State and municipal obligations 130,195 $ 13,509 — 143,704 Total debt securities $ 144,695 $ 13,598 $ (49) $ 158,244 Available-for-sale Securities: December 31, 2019: U.S. government agencies $ 40,000 $ — $ (472) $ 39,528 Subordinated notes 4,500 36 (4) 4,532 State and municipal obligations $ 135,897 $ 8,993 $ (165) $ 144,725 Total debt securities $ 180,397 $ 9,029 $ (641) $ 188,785
Schedule of amortized cost and fair value of available-for-sale securities by contractual maturity	Available-for-sale Amortized Fair Cost Value (In thousands) Within one year $ — $ — One to five years — — Five to ten year 14,500 14,540 Due after ten years 130,195 143,704 Totals $ 144,695 $ 158,244
Schedule of investments' gross unrealized losses and fair value, aggregated by investment category and length of time	The following tables show the Company’s investments’ 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 at September 30, 2020 and December 31, 2019: September 30, 2020 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US Government agencies $ — $ — $ — $ — $ — $ — Subordinated notes 4,500 $ (49) $ — $ — $ 4,500 $ (49) State and municipal obligations — $ — $ — $ — $ — $ Total temporarily impaired securities $ 4,500 $ (49) $ — $ — $ 4,500 $ (49) December 31, 2019 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US Government agencies $ 39,528 $ (472) $ — $ — $ 39,528 $ (472) Subordinated notes 996 $ (4) $ — $ — $ 996 $ (4) State and municipal obligations $ 9,831 $ (165) $ — $ — $ 9,831 $ (165) Total temporarily impaired securities $ 50,355 $ (641) $ — $ — $ 50,355 $ (641)

Loans and Allowance for Loan _2

Loans and Allowance for Loan Losses (Tables)	9 Months Ended
	Sep. 30, 2020
Loans and Allowance for Loan Losses
Schedule of categories of loans	Categories of loans include: September 30, December 31, 2020 2019 (In thousands) Commercial loans $ 100,460 $ 99,995 Commercial real estate 245,343 254,651 Residential real estate 88,618 77,205 Installment loans 8,855 9,697 Total gross loans 443,276 441,548 Less allowance for loan losses (5,228) (2,231) Total loans $ 438,048 $ 439,317
Schedule of allowance for loan losses and recorded investment in loans	Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and nine month periods ended September 30, 2020 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, July 1, 2020 $ 2,344 $ 751 $ 600 $ 320 $ — $ 4,015 Provision charged to expense (1,031) 1,202 988 174 — 1,333 Losses charged off (5) (63) (21) (55) — (144) Recoveries 13 — 1 10 — 24 Balance, September 30, 2020 $ 1,321 $ 1,890 $ 1,568 $ 449 $ — $ 5,228 Balance, January 1, 2020 $ 568 $ 792 $ 572 $ 299 $ — $ 2,231 Provision charged to expense 777 1,288 1,027 212 — 3,304 Losses charged off (47) (190) (33) (115) — (385) Recoveries 23 — 2 53 — 78 Balance, September 30, 2020 $ 1,321 $ 1,890 $ 1,568 $ 449 $ — $ 5,228 Allocation: Ending balance: individually evaluated for impairment $ 4 $ 21 $ — $ — $ — $ 25 Ending balance: collectively evaluated for impairment $ 1,317 $ 1,869 $ 1,568 $ 449 $ — $ 5,203 Loans: Ending balance: individually evaluated for impairment $ 22 $ 614 $ 525 $ 134 $ — $ 1,295 Ending balance: collectively evaluated for impairment $ 100,438 $ 244,729 $ 88,093 $ 8,721 $ — $ 441,981 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and nine month periods ended September 30, 2019 Commercial Residential Commercial Real Estate Real Estate Installment Unallocated Total (In thousands) Allowance for loan losses: Balance, July 1, 2019 $ 262 $ 799 $ 747 $ 334 $ — $ 2,142 Provision charged to expense 95 (93) 53 65 — 120 Losses charged off — — (100) (54) — (154) Recoveries — — 1 12 — 13 Balance, September 30, 2019 $ 357 $ 706 $ 701 $ 357 $ — $ 2,121 Balance, January 1, 2019 $ 389 $ 672 $ 519 $ 463 $ — $ 2,043 Provision charged to expense (15) 34 311 — — 330 Losses charged off (18) –– (140) (136) — (294) Recoveries 1 — 11 30 — 42 Balance, September 30, 2019 $ 357 $ 706 $ 701 $ 357 $ — $ 2,121 Allocation: Ending balance: individually evaluated for impairment $ 63 $ — $ — $ — $ — $ 63 Ending balance: collectively evaluated for impairment $ 294 $ 706 $ 701 $ 357 $ — $ 2,058 Loans: Ending balance: individually evaluated for impairment $ 1,330 $ 369 $ 558 $ — $ — $ 2,257 Ending balance: collectively evaluated for impairment $ 100,476 $ 234,469 $ 73,969 $ 10,094 $ — $ 419,008 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2019 Commercial Commercial Real Estate Residential Installment Unallocated Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ — $ –– $ –– $ — $ — Ending balance: collectively evaluated for impairment $ 568 $ 792 $ 572 $ 299 $ — $ 2,231 Loans: Ending balance: individually evaluated for impairment $ 71 $ 371 $ 594 $ — — $ 1,036 Ending balance: collectively evaluated for impairment $ 99,924 $ 254,280 $ 76,611 $ 9,697 $ — $ 440,512
Schedule of portfolio quality indicators	The following tables show the portfolio quality indicators. September 30, 2020 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 100,435 $ 241,780 $ 88,093 $ 8,721 $ 439,029 Special Mention — 2,727 — — 2,727 Substandard 25 836 525 134 1,520 Doubtful — — — — — $ 100,460 $ 245,343 $ 88,618 $ 8,855 $ 443,276 December 31, 2019 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 99,924 $ 249,563 $ 76,611 $ 9,697 $ 435,795 Special Mention — 4,016 — — 4,016 Substandard 71 1,072 594 — 1,737 Doubtful — — — — — $ 99,995 $ 254,651 $ 77,205 $ 9,697 $ 441,548
Schedule of loan portfolio aging analysis	The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the current and past year to date periods presented. Loan Portfolio Aging Analysis As of September 30, 2020 30-59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ — $ — $ — $ 37 $ 37 $ 100,423 $ 100,460 Commercial real estate — — — 497 497 244,846 245,343 Residential 108 — — 1,010 1,118 87,500 88,618 Installment 9 — — — 9 8,846 8,855 Total $ 117 $ — $ — $ 1,544 $ 1,661 $ 441,615 $ 443,276 Loan Portfolio Aging Analysis As of December 31, 2019 30‑59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ 129 $ 132 $ –– $ 30 $ 291 $ 99,704 $ 99,995 Commercial real estate –– 214 197 348 759 253,892 254,651 Residential 448 — 29 1,074 1,551 75,654 77,205 Installment 58 1 –– — 59 9,638 9,697 Total $ 635 $ 347 $ 226 $ 1,452 $ 2,660 $ 438,888 $ 441,548
Schedule of impaired loans	Impaired Loans For the three months ended For the nine months ended As of September 30, 2020 September 30, 2020 September 30, 2020 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ (5) $ — $ 1 Commercial real estate 522 585 — 593 9 589 14 Residential 525 532 — 525 7 493 21 Installment 134 148 — 150 1 151 5 1,181 1,265 — 1,268 12 1,233 41 Loans with a specific valuation allowance: Commercial 22 22 4 23 — 24 1 Commercial real estate 92 92 21 92 3 92 3 Residential — — — — — — –– Installment –– –– –– –– — –– — Total: Commercial $ 22 $ 22 $ 4 $ 23 $ (5) $ 24 $ 2 Commercial real estate $ 614 $ 677 $ 21 $ 685 $ 12 $ 681 $ 17 Residential $ 525 $ 532 $ — $ 525 $ 7 $ 493 $ 21 Installment $ 134 $ 148 $ — $ 150 $ 1 $ 151 $ 5 Impaired Loans For the three months ended For the nine months ended As of December 31, 2019 September 30, 2019 September 30, 2019 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 71 $ 71 $ — $ 966 $ 9 $ 956 $ 13 Commercial real estate 371 371 — 374 2 350 8 Residential 594 594 — 640 11 644 18 Installment — — — — — — 1,036 1,036 — 1,980 22 1,950 39 Loans with a specific valuation allowance: Commercial — — — 366 — 365 3 Commercial real estate — — — — — — — Residential — — — –– –– –– — Installment — — — –– –– –– — — — — 366 — 365 3 Total: Commercial $ 71 $ 71 $ — $ 1,332 $ 9 $ 1,321 $ 16 Commercial real estate $ 371 $ 371 $ — $ 374 $ 2 $ 350 $ 8 Residential $ 594 $ 594 $ — $ 640 $ 11 $ 644 $ 18 Installment $ — $ — $ — $ — $ — $ — $ —
Schedule of troubled debt restructurings on financing receivables	Three Months ended September 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended September 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Nine Months ended September 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 3 $ 67 $ 67 Commercial real estate 1 86 86 Residential — — — Installment — — — Nine Months Ended September 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 23 $ 44 $ 67 Commercial real estate — 86 — 87 Residential — — — — Consumer — — — — Three Months ended September 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 2 $ 82 $ 82 Commercial real estate — — — Residential — — — Installment — — — Three Months Ended September 30, 2019 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 82 $ — $ 82 Commercial real estate — — — — Residential — — — — Consumer — — — — Nine Months ended September 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Recorded Recorded Number of Contracts Investment Investment (In thousands) Commercial 2 $ 82 $ 82 Commercial real estate — — — Residential — — — Installment — — — Nine Months Ended September 30, 2019 Interest Total Only Term Combination Modification (In thousands) Commercial $ 2 $ 82 $ — $ 82 Commercial real estate — — — — Residential — — — — Consumer — — — —

Benefit Plans (Tables)

Benefit Plans (Tables)	9 Months Ended
	Sep. 30, 2020
Benefit Plans
Schedule of pension expense	Pension expense includes the following: Three months ended Nine months ended September 30, September 30, 2020 2019 2020 2019 (In thousands) Service cost $ 98 $ 75 $ 294 $ 225 Interest cost 59 55 177 165 Expected return on assets (117) (102) (351) (306) Amortization of prior service cost and net loss 13 1 39 3 Pension expense $ 53 $ 29 $ 159 $ 87

Off-balance-sheet Activities (T

Off-balance-sheet Activities (Tables)	9 Months Ended
	Sep. 30, 2020
Off-balance-sheet Activities
Schedule of the notional or contractual amounts of financial instruments with off-balance-sheet risk	A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: September 30, December 31, 2020 2019 (In thousands) Commercial loans unused lines of credit $ 33,406 $ 40,538 Commitment to originate loans 30,927 38,722 Consumer open end lines of credit 39,244 38,575 Standby lines of credit 22 46

Accumulated Other Comprehensi_2

Accumulated Other Comprehensive Income (Loss) (Tables)	9 Months Ended
	Sep. 30, 2020
Accumulated Other Comprehensive Income (Loss)
Schedule of components of accumulated other comprehensive income (loss), included in stockholders' equity	The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows: September 30, December 31, 2020 2019 (In thousands) Net unrealized gain on securities available-for-sale $ 13,549 $ 8,389 Net unrealized loss for unfunded status of defined benefit plan liability (1,381) (1,381) 12,168 7,008 Tax effect (2,555) (1,472) Net-of-tax amount $ 9,613 $ 5,536

Fair Value Measurements (Tables

Fair Value Measurements (Tables)	9 Months Ended
	Sep. 30, 2020
Fair Value Measurements
Schedule of fair value measurements of assets recognized in consolidated balance sheets measured at fair value on recurring basis	The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) September 30, 2020 U.S. government agencies $ 10,089 $ — $ 10,089 $ — State and municipal obligations 143,704 — 143,704 — Subordinated notes 4,451 — 4,451 — December 31, 2019 U.S. government agencies $ 39,528 $ — $ 39,528 $ — State and municipal obligations $ 144,725 $ — $ 144,725 $ — Subordinated notes $ 4,532 $ — $ 4,532 $ —
Schedule of fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis	The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2020 Collateral dependent impaired loans $ 89 $ — $ — $ 89 Foreclosed assets held for sale — — — — December 31, 2019 Collateral dependent impaired loans $ — $ — $ — $ — Foreclosed assets held for sale — — — —
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements	The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation 9/30/20 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 89 Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale $ — Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation 12/31/19 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ — Market comparable properties Comparability adjustments Not available Foreclosed assets held for sale $ — Market comparable properties Marketability discount 10% – 35%
Schedule of estimated fair values of company's financial instruments	Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) September 30, 2020 Financial assets Cash and cash equivalents $ 50,937 $ 50,937 $ — $ — Loans, net of allowance 438,048 — — 436,722 Federal Home Loan Bank stock 4,252 — 4,252 — Accrued interest receivable 3,070 — 3,070 — Financial liabilities Deposits 576,856 — 577,842 — Short term borrowings 17,027 — 17,027 — Subordinated debentures 23,589 — 23,524 — Interest payable 660 — 660 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019: Financial assets Cash and cash equivalents $ 14,985 $ 14,985 $ –– $ –– Loans, net of allowance 439,317 –– –– 437,688 Federal Home Loan Bank stock 4,012 –– 4,012 –– Accrued interest receivable 2,697 –– 2,697 –– Financial liabilities Deposits 548,069 –– 548,130 –– Short term borrowings 6,915 –– 6,915 –– Federal Home Loan Bank Advances 39,800 –– 39,800 –– Subordinated debentures 23,543 –– 22,857 –– Interest payable 213 –– 213 ––

Repurchase Agreements (Tables)

Repurchase Agreements (Tables)	9 Months Ended
	Sep. 30, 2020
Repurchase Agreements
Schedule of repurchase agreements	The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than 90 September 30, 2020 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 17,027 $ — $ — $ — $ 17,027 Total $ 17,027 $ — $ — $ — $ 17,027 Overnight and Greater than 90 December 31, 2019 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 6,915 $ — $ — $ — $ 6,915 Total $ 6,915 $ — $ — $ — $ 6,915

Goodwill and Intangible Assets

Goodwill and Intangible Assets (Tables)	9 Months Ended
	Sep. 30, 2020
Goodwill and Intangible Assets
Summary of changes in the carrying amount of goodwill	The following table shows the changes in the carrying amount of goodwill for September 30, 2020 and December 31, 2019 (in thousands): September 30, December 31, 2020 2019 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682
Summary of intangible assets	Intangible assets in the consolidated balance sheets at September 30, 2020 and December 31, 2019 were as follows (in thousands): Nine Months Ended September 30, 2020 Year Ended Decmber 31, 2019 Gross Net Gross Net Intangible Accumulated Intangible Intangible Accumulated Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 294 747 1,041 181 860
Summary of estimated aggregate future amortization expense for each of the next five years for intangible assets remaining	The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of June 30, 2020 is as follows (in thousands): 2020 $ 38 2021 181 2022 181 2023 181 2024 166

Summary of Significant Accoun_4

Summary of Significant Accounting Policies - Additional Information (Details)	Mar. 31, 2019USD ($)
Summary of Significant Accounting Policies
Operating Lease, Right-of-Use Asset	$ 126,000

Summary of Significant Accoun_5

Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Basic and Diluted
Net income	$ 2,059	$ 1,781	$ 5,313	$ 5,041
Less allocated earnings on non-vested restricted stock	(52)	(37)	(119)	(92)
Less allocated dividends on non-vested restricted stock	(36)	(30)	(105)	(81)
Net income allocated to common stockholders	$ 1,971	$ 1,714	$ 5,089	$ 4,868
Weighted Average Number of Shares Outstanding, Basic and Diluted	5,467,745	5,519,677	5,465,854	5,518,500
Basic and diluted earnings per share	$ 0.36	$ 0.31	$ 0.93	$ 0.88

Securities - Schedule of Amorti

Securities - Schedule of Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost	$ 144,695	$ 180,397
Available-for-sale Securities, Gross Unrealized Gains	13,598	9,029
Available-for-sale Securities, Gross Unrealized Losses	(49)	(641)
Available-for-sale securities, Fair Value	158,244	188,785
U.S. government agencies
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost	10,000	40,000
Available-for-sale Securities, Gross Unrealized Gains	89	0
Available-for-sale Securities, Gross Unrealized Losses	0	(472)
Available-for-sale securities, Fair Value	10,089	39,528
Subordinated notes
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost	4,500	4,500
Available-for-sale Securities, Gross Unrealized Gains	0	36
Available-for-sale Securities, Gross Unrealized Losses	(49)	(4)
Available-for-sale securities, Fair Value	4,451	4,532
State and municipal obligations
Gain (Loss) on Investments [Line Items]
Available-for-sale Securities, Amortized Cost	130,195	135,897
Available-for-sale Securities, Gross Unrealized Gains	13,509	8,993
Available-for-sale Securities, Gross Unrealized Losses	0	(165)
Available-for-sale securities, Fair Value	$ 143,704	$ 144,725

Securities - Schedule of Amor_2

Securities - Schedule of Amortized Cost and Fair Value of available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Available-for-sale, Amortized Cost
Within one year	$ 0
One to five years	0
Five to ten year	14,500
Due after ten years	130,195
Totals	144,695	$ 180,397
Available-for-sale, Fair Value
Within one year	0
One to five years	0
Five to ten year	14,540
Due after ten years	143,704
Totals	$ 158,244	$ 188,785

Securities - Schedule of Invest

Securities - Schedule of Investments' Gross Unrealized Losses and Fair Value, aggregated by investment category and length of time (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Gain (Loss) on Investments [Line Items]
Less than 12 Months, Fair Value	$ 4,500	$ 50,355
Less than 12 Months, Unrealized Losses	(49)	(641)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	4,500	50,355
Total, Unrealized Losses	(49)	(641)
U.S. government agencies
Gain (Loss) on Investments [Line Items]
Less than 12 Months, Fair Value	0	39,528
Less than 12 Months, Unrealized Losses	0	(472)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	0	39,528
Total, Unrealized Losses	0	(472)
Subordinated notes
Gain (Loss) on Investments [Line Items]
Less than 12 Months, Fair Value	4,500	996
Less than 12 Months, Unrealized Losses	(49)	(4)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	4,500	996
Total, Unrealized Losses	(49)	(4)
State and municipal obligations
Gain (Loss) on Investments [Line Items]
Less than 12 Months, Fair Value	0	9,831
Less than 12 Months, Unrealized Losses	0	(165)
12 Months or More, Fair Value	0	0
12 Months or More, Unrealized Losses	0	0
Total, Fair Value	0	9,831
Total, Unrealized Losses	$ 0	$ (165)

Securities - Additional Informa

Securities - Additional Information (Details) - USD ($)	3 Months Ended	9 Months Ended
	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Schedule Of Marketable Securities [Line Items]
Debt Securities, Available-for-sale, Restricted		$ 44,000,000		$ 46,800,000
Fair Value of Investment in debt securities		$ 4,500,000		$ 50,300,000
Percentage of fair value of investment in debt		3.00%		27.00%
Proceeds from sale of available-for-sale securities		$ 31,675,000	$ 0
U.S. government agencies
Schedule Of Marketable Securities [Line Items]
Proceeds from sale of available-for-sale securities	$ 0	8,000,000	$ 0
Debt Securities, Available-for-sale, Realized Gain (Loss)		69,000
State and municipal obligations
Schedule Of Marketable Securities [Line Items]
Proceeds from sale of available-for-sale securities		23,700,000
Debt Securities, Available-for-sale, Realized Gain (Loss)		$ 2,525,000

Loans and Allowance for Loan _3

Loans and Allowance for Loan Losses - Schedule of Categories of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Jun. 30, 2020	Dec. 31, 2019	Sep. 30, 2019	Jun. 30, 2019	Dec. 31, 2018
Accounts Notes And Loans Receivable [Line Items]
Total gross loans	$ 443,276		$ 441,548
Less allowance for loan losses	(5,228)	$ (4,015)	(2,231)	$ (2,121)	$ (2,142)	$ (2,043)
Total loans	438,048		439,317
Commercial loans
Accounts Notes And Loans Receivable [Line Items]
Total gross loans	100,460		99,995
Less allowance for loan losses	(1,321)	(2,344)	(568)	(357)	(262)	(389)
Commercial real estate
Accounts Notes And Loans Receivable [Line Items]
Total gross loans	245,343		254,651
Less allowance for loan losses	(1,890)	(751)	(792)	(706)	(799)	(672)
Residential real estate
Accounts Notes And Loans Receivable [Line Items]
Total gross loans	88,618		77,205
Less allowance for loan losses	(1,568)	$ (600)	(572)	$ (701)	$ (747)	$ (519)
Installment loans
Accounts Notes And Loans Receivable [Line Items]
Total gross loans	$ 8,855		$ 9,697

Loans and Allowance for Loan _4

Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Allowance for loan losses:
Beginning Balance	$ 4,015	$ 2,142	$ 2,231	$ 2,043
Provision charged to expense	1,333	120	3,304	330
Losses charged off	(144)	(154)	(385)	(294)
Recoveries	24	13	78	42
Ending Balance	5,228	2,121	5,228	2,121
Allocation:
Ending balance: individually evaluated for impairment	25	63	25	63
Ending balance: collectively evaluated for impairment	5,203	2,058	5,203	2,058	$ 2,231
Loans:
Ending balance: individually evaluated for impairment	1,295	2,257	1,295	2,257	1,036
Ending balance: collectively evaluated for impairment	441,981	419,008	441,981	419,008	440,512
Commercial loans
Allowance for loan losses:
Beginning Balance	2,344	262	568	389
Provision charged to expense	(1,031)	95	777	(15)
Losses charged off	(5)	0	(47)	(18)
Recoveries	13	0	23	1
Ending Balance	1,321	357	1,321	357
Allocation:
Ending balance: individually evaluated for impairment	4	63	4	63
Ending balance: collectively evaluated for impairment	1,317	294	1,317	294	568
Loans:
Ending balance: individually evaluated for impairment	22	1,330	22	1,330	71
Ending balance: collectively evaluated for impairment	100,438	100,476	100,438	100,476	99,924
Commercial real estate
Allowance for loan losses:
Beginning Balance	751	799	792	672
Provision charged to expense	1,202	(93)	1,288	34
Losses charged off	(63)	0	(190)	0
Recoveries	0	0	0	0
Ending Balance	1,890	706	1,890	706
Allocation:
Ending balance: individually evaluated for impairment	21	0	21	0
Ending balance: collectively evaluated for impairment	1,869	706	1,869	706	792
Loans:
Ending balance: individually evaluated for impairment	614	369	614	369	371
Ending balance: collectively evaluated for impairment	244,729	234,469	244,729	234,469	254,280
Residential real estate
Allowance for loan losses:
Beginning Balance	600	747	572	519
Provision charged to expense	988	53	1,027	311
Losses charged off	(21)	(100)	(33)	(140)
Recoveries	1	1	2	11
Ending Balance	1,568	701	1,568	701
Allocation:
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	1,568	701	1,568	701	572
Loans:
Ending balance: individually evaluated for impairment	525	558	525	558	594
Ending balance: collectively evaluated for impairment	88,093	73,969	88,093	73,969	76,611
Installment
Allowance for loan losses:
Beginning Balance	320	334	299	463
Provision charged to expense	174	65	212	0
Losses charged off	(55)	(54)	(115)	(136)
Recoveries	10	12	53	30
Ending Balance	449	357	449	357
Allocation:
Ending balance: individually evaluated for impairment	0	0	0	0
Ending balance: collectively evaluated for impairment	449	357	449	357	299
Loans:
Ending balance: individually evaluated for impairment	134	0	134	0
Ending balance: collectively evaluated for impairment	8,721	10,094	8,721	10,094	9,697
Unallocated
Allowance for loan losses:
Beginning Balance	0	0	0	0
Provision charged to expense	0	0	0	0
Losses charged off	0	0	0	0
Recoveries	0	0	0	0
Ending Balance	0	0	0	0
Allocation:
Ending balance: individually evaluated for impairment	0	0	0	0	0
Ending balance: collectively evaluated for impairment	0	0	0	0	0
Loans:
Ending balance: individually evaluated for impairment	0	0	0	0	0
Ending balance: collectively evaluated for impairment	$ 0	$ 0	$ 0	$ 0	$ 0

Loans and Allowance for Loan _5

Loans and Allowance for Loan Losses - Schedule of Portfolio Quality Indicators (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 443,276	$ 441,548
Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	100,460	99,995
Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	245,343	254,651
Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	88,618	77,205
Installment loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	8,855	9,697
Pass Grade
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	439,029	435,795
Pass Grade | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	100,435	99,924
Pass Grade | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	241,780	249,563
Pass Grade | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	88,093	76,611
Pass Grade | Installment loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	8,721	9,697
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	2,727	4,016
Special Mention | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Special Mention | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	2,727	4,016
Special Mention | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Special Mention | Installment loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	1,520	1,737
Substandard | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	25	71
Substandard | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	836	1,072
Substandard | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	525	594
Substandard | Installment loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	134	0
Doubtful
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Doubtful | Commercial loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Doubtful | Commercial real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Doubtful | Residential real estate
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	0	0
Doubtful | Installment loans
Financing Receivable, Recorded Investment [Line Items]
Total Loans Receivable	$ 0	$ 0

Loans and Allowance for Loan _6

Loans and Allowance for Loan Losses - Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non Accrual	$ 1,544	$ 1,452
Total Past Due and Non Accrual	1,661	2,660
Current	441,615	438,888
Total gross loans	443,276	441,548
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	117	635
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	347
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	226
Commercial loans
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non Accrual	37	30
Total Past Due and Non Accrual	37	291
Current	100,423	99,704
Total gross loans	100,460	99,995
Commercial loans | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	129
Commercial loans | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	132
Commercial loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	0
Commercial real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non Accrual	497	348
Total Past Due and Non Accrual	497	759
Current	244,846	253,892
Total gross loans	245,343	254,651
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	0
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	214
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	197
Residential real estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non Accrual	1,010	1,074
Total Past Due and Non Accrual	1,118	1,551
Current	87,500	75,654
Total gross loans	88,618	77,205
Residential real estate | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	108	448
Residential real estate | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	0
Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	29
Installment
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non Accrual	0	0
Total Past Due and Non Accrual	9	59
Current	8,846	9,638
Total gross loans	8,855	9,697
Installment | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	9	58
Installment | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	0	1
Installment | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due and Non Accrual	$ 0	$ 0

Loans and Allowance for Loan _7

Loans and Allowance for Loan Losses - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019	Dec. 31, 2019
Recorded Balance
Recorded balance, loans without a specific valuation allowance	$ 1,181		$ 1,181		$ 1,036
Recorded balance, loans with a specific valuation allowance	114		114		0
Unpaid Principal Balance
Unpaid principal balance, loans without a specific valuation allowance	1,265		1,265		1,036
Unpaid principal balance, loans with a specific valuation allowance	114		114		0
Specific Allowance	25		25		0
Average Investment in Impaired Loans
Average investment in impaired loans, loans without a specific valuation allowance	1,268	$ 1,980	1,233	$ 1,950
Average investment in impaired loans, loans with a specific valuation allowance	115	366	116	365
Interest Income Recognized
Interest income recognized, loans without a specific valuation allowance	12	22	41	39
Interest income recognized, loans with a specific valuation allowance	3	0	4	3
Commercial loans
Recorded Balance
Recorded balance, loans without a specific valuation allowance	0		0		71
Recorded balance, loans with a specific valuation allowance	22		22		0
Recorded balance, total	22		22		71
Unpaid Principal Balance
Unpaid principal balance, loans without a specific valuation allowance	0		0		71
Unpaid principal balance, loans with a specific valuation allowance	22		22		0
Unpaid principal balance, total	22		22		71
Specific Allowance	4		4		0
Average Investment in Impaired Loans
Average investment in impaired loans, loans without a specific valuation allowance	0	966	0	956
Average investment in impaired loans, loans with a specific valuation allowance	23	366	24	365
Average investment in impaired loans, total	23	1,332	24	1,321
Interest Income Recognized
Interest income recognized, loans without a specific valuation allowance	(5)	9	1	13
Interest income recognized, loans with a specific valuation allowance	0	0	1	3
Interest income recognized, total	(5)	9	2	16
Commercial real estate
Recorded Balance
Recorded balance, loans without a specific valuation allowance	522		522		371
Recorded balance, loans with a specific valuation allowance	92		92		0
Recorded balance, total	614		614		371
Unpaid Principal Balance
Unpaid principal balance, loans without a specific valuation allowance	585		585		371
Unpaid principal balance, loans with a specific valuation allowance	92		92		0
Unpaid principal balance, total	677		677		371
Specific Allowance	21		21		0
Average Investment in Impaired Loans
Average investment in impaired loans, loans without a specific valuation allowance	593	374	589	350
Average investment in impaired loans, loans with a specific valuation allowance	92	0	92	0
Average investment in impaired loans, total	685	374	681	350
Interest Income Recognized
Interest income recognized, loans without a specific valuation allowance	9	2	14	8
Interest income recognized, loans with a specific valuation allowance	3	0	3	0
Interest income recognized, total	12	2	17	8
Residential real estate
Recorded Balance
Recorded balance, loans without a specific valuation allowance	525		525		594
Recorded balance, loans with a specific valuation allowance	0		0		0
Recorded balance, total	525		525		594
Unpaid Principal Balance
Unpaid principal balance, loans without a specific valuation allowance	532		532		594
Unpaid principal balance, loans with a specific valuation allowance	0		0		0
Unpaid principal balance, total	532		532		594
Specific Allowance					0
Average Investment in Impaired Loans
Average investment in impaired loans, loans without a specific valuation allowance	525	640	493	644
Average investment in impaired loans, loans with a specific valuation allowance	0	0	0	0
Average investment in impaired loans, total	525	640	493	644
Interest Income Recognized
Interest income recognized, loans without a specific valuation allowance	7	11	21	18
Interest income recognized, loans with a specific valuation allowance	0	0	0	0
Interest income recognized, total	7	11	21	18
Installment loans
Recorded Balance
Recorded balance, loans without a specific valuation allowance	134		134		0
Recorded balance, loans with a specific valuation allowance	0		0		0
Recorded balance, total	134		134		0
Unpaid Principal Balance
Unpaid principal balance, loans without a specific valuation allowance	148		148		0
Unpaid principal balance, loans with a specific valuation allowance	0		0		0
Unpaid principal balance, total	148		148		0
Specific Allowance					$ 0
Average Investment in Impaired Loans
Average investment in impaired loans, loans without a specific valuation allowance	150	0	151	0
Average investment in impaired loans, loans with a specific valuation allowance	0	0	0	0
Average investment in impaired loans, total	150	0	151	0
Interest Income Recognized
Interest income recognized, loans without a specific valuation allowance	1	0	5	0
Interest income recognized, loans with a specific valuation allowance	0	0	0	0
Interest income recognized, total	$ 1	$ 0	$ 5	$ 0

Loans and Allowance for Loan _8

Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings on Financing Receivables (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)contract	Sep. 30, 2020USD ($)contract	Sep. 30, 2019USD ($)contract
Commercial loans
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	2	3	2
Pre- Modification Outstanding Recorded Investment	$ 0	$ 82	$ 67	$ 82
Post-Modification Outstanding Recorded Investment	0	82	67	82
Interest Only	0	0	0	2
Term	0	82	23	82
Combination	0	0	44	0
Total Modification	$ 0	$ 82	$ 67	$ 82
Commercial real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0	1	0
Pre- Modification Outstanding Recorded Investment	$ 0	$ 0	$ 86	$ 0
Post-Modification Outstanding Recorded Investment	0	0	86	0
Interest Only	0	0	0	0
Term	0	0	86	0
Combination	0	0	0	0
Total Modification	$ 0	$ 0	$ 87	$ 0
Residential real estate
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0	0	0
Pre- Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post-Modification Outstanding Recorded Investment	0	0	0	0
Interest Only	0	0	0	0
Term	0	0	0	0
Combination	0	0	0	0
Total Modification	$ 0	$ 0	$ 0	$ 0
Installment loans
Financing Receivable, Modifications [Line Items]
Number of Contracts | contract	0	0	0	0
Pre- Modification Outstanding Recorded Investment	$ 0	$ 0	$ 0	$ 0
Post-Modification Outstanding Recorded Investment	0	0	0	0
Consumer
Financing Receivable, Modifications [Line Items]
Interest Only	0	0	0	0
Term	0	0	0	0
Combination	0	0	0	0
Total Modification	$ 0	$ 0	$ 0	$ 0

Benefit Plans - (Details)

Benefit Plans - (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Sep. 30, 2020	Sep. 30, 2019	Sep. 30, 2020	Sep. 30, 2019
Components of net periodic benefit cost
Service cost	$ 98	$ 75	$ 294	$ 225
Interest cost	59	55	177	165
Expected return on assets	(117)	(102)	(351)	(306)
Amortization of prior service cost and net loss	13	1	39	3
Net periodic benefit cost	$ 53	$ 29	$ 159	$ 87

Off-balance-sheet Activities (D

Off-balance-sheet Activities (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Commercial loans unused lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset	$ 33,406	$ 40,538
Commitment to originate loans
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset	30,927	38,722
Consumer open end lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset	39,244	38,575
Standby lines of credit
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset	$ 22	$ 46

Accumulated Other Comprehensi_3

Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Accumulated Other Comprehensive Income (Loss)
Net unrealized gain on securities available-for-sale	$ 13,549	$ 8,389
Net unrealized loss for unfunded status of defined benefit plan liability	(1,381)	(1,381)
Accumulated other comprehensive income, before taxes, total	12,168	7,008
Tax effect	2,555	1,472
Net-of-tax amount	$ 9,613	$ 5,536

Fair Value Measurements - Asset

Fair Value Measurements - Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	$ 10,089	$ 39,528
State and municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	143,704	144,725
Subordinated notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	4,451	4,532
Fair Value, Inputs, Level 1 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	0	0
Fair Value, Inputs, Level 1 | State and municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	0	0
Fair Value, Inputs, Level 1 | Subordinated notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	0	0
Fair Value, Inputs, Level 2 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	10,089	39,528
Fair Value, Inputs, Level 2 | State and municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	143,704	144,725
Fair Value, Inputs, Level 2 | Subordinated notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	4,451	4,532
Fair Value, Inputs, Level 3 | U.S. government agencies
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	0	0
Fair Value, Inputs, Level 3 | State and municipal obligations
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	0	0
Fair Value, Inputs, Level 3 | Subordinated notes
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items]
Fair value of asset, recurring basis	$ 0	$ 0

Fair Value Measurements - Ass_2

Fair Value Measurements - Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	$ 89	$ 0
Foreclosed assets held for sale	0	0
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Foreclosed assets held for sale	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	0	0
Foreclosed assets held for sale	0	0
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Collateral dependent impaired loans	89	0
Foreclosed assets held for sale	$ 0	$ 0

Fair Value Measurements - Quant

Fair Value Measurements - Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Collateral-dependent impaired loans
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 89	$ 0
Valuation Technique	Market comparable properties	Market comparable properties
Unobservable inputs	Marketability discount	Comparability adjustments
Collateral-dependent impaired loans | Maximum | Market comparable properties [Member] | Selling costs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	25.00%
Collateral-dependent impaired loans | Minimum | Market comparable properties [Member] | Selling costs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	10.00%
Foreclosed assets held for sale
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Fair Value	$ 0	$ 0
Valuation Technique	Market comparable properties	Market comparable properties
Unobservable inputs	Marketability discount	Marketability discount
Foreclosed assets held for sale | Maximum | Market comparable properties [Member] | Selling costs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	35.00%	35.00%
Foreclosed assets held for sale | Minimum | Market comparable properties [Member] | Selling costs [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Range	10.00%	10.00%

Fair Value Measurements - Estim

Fair Value Measurements - Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Financial assets
Cash and cash equivalents	$ 50,937	$ 14,985
Loans, net of allowance	438,048	439,317
Federal Home Loan Bank stock	4,252	4,012
Accrued interest receivable	3,070	2,697
Financial liabilities
Deposits	576,856	548,069
Short term borrowings	17,027	6,915
Federal Home Loan Bank Advances	0	39,800
Subordinated debentures	23,589	23,543
Interest payable	660	213
Fair Value, Inputs, Level 1
Financial assets
Cash and cash equivalents	50,937	14,985
Loans, net of allowance	0	0
Federal Home Loan Bank stock	0	0
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Short term borrowings	0	0
Federal Home Loan Bank Advances		0
Subordinated debentures	0	0
Interest payable	0	0
Fair Value, Inputs, Level 2
Financial assets
Cash and cash equivalents	0	0
Loans, net of allowance	0	0
Federal Home Loan Bank stock	4,252	4,012
Accrued interest receivable	3,070	2,697
Financial liabilities
Deposits	577,842	548,130
Short term borrowings	17,027	6,915
Federal Home Loan Bank Advances		39,800
Subordinated debentures	23,524	22,857
Interest payable	660	213
Fair Value, Inputs, Level 3
Financial assets
Cash and cash equivalents	0	0
Loans, net of allowance	436,722	437,688
Federal Home Loan Bank stock	0	0
Accrued interest receivable	0	0
Financial liabilities
Deposits	0	0
Short term borrowings	0	0
Federal Home Loan Bank Advances		0
Subordinated debentures	0	0
Interest payable	$ 0	$ 0

Repurchase Agreements (Details)

Repurchase Agreements (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Securities Sold under Agreements to Repurchase	$ 17,027	$ 6,915
Corporate securities
Securities Sold under Agreements to Repurchase	17,027	6,915
Overnight and Continuous [Member]
Securities Sold under Agreements to Repurchase	17,027	6,915
Overnight and Continuous [Member] | Corporate securities
Securities Sold under Agreements to Repurchase	17,027	6,915
Up to 30 Days [Member]
Securities Sold under Agreements to Repurchase	0	0
Up to 30 Days [Member] | Corporate securities
Securities Sold under Agreements to Repurchase	0	0
30-90 Days [Member]
Securities Sold under Agreements to Repurchase	0	0
30-90 Days [Member] | Corporate securities
Securities Sold under Agreements to Repurchase	0	0
Greater than 90 Days [Member]
Securities Sold under Agreements to Repurchase	0	0
Greater than 90 Days [Member] | Corporate securities
Securities Sold under Agreements to Repurchase	$ 0	$ 0

Repurchase Agreements - Additio

Repurchase Agreements - Additional Information (Details) - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Short-term Debt	$ 17,027	$ 6,915
Repurchase Agreement Borrowings
Short-term Debt	17,027	6,915
Corporate securities
Short-term Debt	$ 17,900	$ 9,400

Goodwill and Intangible Asset_2

Goodwill and Intangible Assets (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Sep. 30, 2020	Dec. 31, 2019
Changes in the carrying amount of goodwill
Balance beginning of year	$ 682	$ 682
Additions from acquisition	0	0
Balance, end of period	$ 682	$ 682

Goodwill and Intangible Asset_3

Goodwill and Intangible Assets - Intangible assets (Details) - Core deposit intangibles - USD ($) $ in Thousands	Sep. 30, 2020	Dec. 31, 2019
Intangible assets
Gross Intangible Assets	$ 1,041	$ 1,041
Accumulated Amortization	294	181
Net Intangible Assets	$ 747	$ 860

Goodwill and Intangible Asset_4

Goodwill and Intangible Assets - Future amortization expense (Details) $ in Thousands	Sep. 30, 2020USD ($)
Estimated aggregate future amortization expense
2020	$ 38
2021	181
2022	181
2023	181
2024	$ 166