Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 12, 2022 | |
Document And Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2022 | |
Entity File Number | 0-16540 | |
Entity Registrant Name | UNITED BANCORP, INC | |
Entity Incorporation, State or Country Code | OH | |
Entity Tax Identification Number | 34-1405357 | |
Entity Address, Address Line One | 201 South Fourth Street | |
Entity Address, City or Town | Martins Ferry | |
Entity Address, State or Province | OH | |
Entity Address, Postal Zip Code | 43935 | |
City Area Code | 740 | |
Local Phone Number | 633-0445 | |
Title of 12(b) Security | Common Stock, Par Value $1.00 | |
Trading Symbol | UBCP | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,914,488 | |
Entity Central Index Key | 0000731653 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2022 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 7,731 | $ 7,653 |
Interest-bearing demand deposits | 9,060 | 75,346 |
Cash and cash equivalents | 16,791 | 82,999 |
Available-for-sale securities | 190,175 | 146,313 |
Loans, net of allowance for loan losses of $2,653 and $3,673 at June 30, 2022 and December 31, 2021, respectively | 464,736 | 450,699 |
Premises and equipment | 12,587 | 12,757 |
Federal Home Loan Bank stock | 3,704 | 3,704 |
Foreclosed assets held for sale, net | 237 | 415 |
Core deposit intangible assets | 485 | 560 |
Goodwill | 682 | 682 |
Accrued interest receivable | 2,638 | 2,345 |
Bank-owned life insurance | 18,793 | 18,809 |
Other assets | 8,277 | 5,173 |
Total assets | 719,105 | 724,456 |
Deposits | ||
Demand | 415,496 | 408,296 |
Savings | 146,874 | 140,598 |
Time | 44,940 | 56,242 |
Total deposits | 607,310 | 605,136 |
Securities sold under repurchase agreements | 24,476 | 15,701 |
Subordinated debentures | 23,695 | 23,665 |
Interest payable and other liabilities | 5,311 | 8,253 |
Total liabilities | 660,792 | 652,755 |
Stockholders' Equity | ||
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued | ||
Common stock, $1 par value; authorized 10,000,000 shares; issued 6,043,851 shares June 30, 2022 and December 31, 2021 - 6,053,851 shares; outstanding 2022 - 5,914,488; 2021 - 5,791,853 | 6,044 | 6,054 |
Additional paid-in capital | 24,528 | 23,635 |
Retained earnings | 39,169 | 37,847 |
Stock held by deferred compensation plan; 2022 - 168,441 shares, 2021 - 172,538 shares | (1,790) | (1,738) |
Accumulated other comprehensive (loss) income | (7,810) | 6,964 |
Treasury stock, at cost 2022 - 129,363 shares, 2021 - 84,363 shares | (1,828) | (1,061) |
Total stockholders' equity | 58,313 | 71,701 |
Total liabilities and stockholders' equity | $ 719,105 | $ 724,456 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Condensed Consolidated Balance Sheets | ||
Loans, allowance for loan losses | $ 2,653 | $ 3,673 |
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 | 6,043,851 | 6,053,851 |
Common Stock, Shares, Outstanding | 5,914,488 | 5,791,853 |
Stock held by deferred compensation plan, shares | 168,441 | 172,538 |
Treasury stock, shares | 129,363 | 84,363 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest and dividend income | ||||
Loans, including fees | $ 4,914 | $ 5,091 | $ 9,705 | $ 10,004 |
Securities | ||||
Taxable securities | 402 | 21 | 670 | 50 |
Non-taxable securities | 1,035 | 1,086 | 1,926 | 2,194 |
Federal funds sold | 66 | 20 | 94 | 31 |
Dividends on Federal Home Loan Bank stock and other | 28 | 15 | 47 | 42 |
Total interest and dividend income | 6,445 | 6,233 | 12,442 | 12,321 |
Interest expense | ||||
Demand | 106 | 72 | 179 | 167 |
Savings | 3 | 4 | 7 | 11 |
Time | 23 | 263 | 96 | 567 |
Borrowings | 345 | 337 | 682 | 706 |
Total interest expense | 477 | 676 | 964 | 1,451 |
Net interest income | 5,968 | 5,557 | 11,478 | 10,870 |
Credit for loan losses | (485) | (250) | (985) | (455) |
Net interest income after credit for loan losses | 6,453 | 5,807 | 12,463 | 11,325 |
Noninterest income | ||||
Service charges on deposit accounts | 746 | 809 | 1,427 | 1,401 |
Realized gains on sales of loans | 15 | 88 | 27 | 164 |
Other income | 227 | 245 | 521 | 503 |
Total noninterest income | 988 | 1,142 | 1,975 | 2,068 |
Noninterest expense | ||||
Salaries and employee benefits | 2,384 | 2,331 | 5,389 | 4,635 |
Net occupancy and equipment expense | 579 | 574 | 1,162 | 1,174 |
Professional services | 360 | 328 | 623 | 647 |
Insurance | 139 | 130 | 278 | 259 |
Deposit insurance premiums | 50 | 49 | 99 | 98 |
Franchise and other taxes | 137 | 140 | 272 | 274 |
Advertising | 123 | 112 | 153 | 225 |
Stationery and office supplies | 21 | 28 | 46 | 51 |
Amortization of core deposit premium | 38 | 38 | 75 | 75 |
Other expenses | 1,018 | 820 | 1,862 | 1,561 |
Total noninterest expense | 4,849 | 4,550 | 9,959 | 8,999 |
Income before federal income taxes | 2,592 | 2,399 | 4,479 | 4,394 |
Federal income taxes | 295 | 214 | 431 | 301 |
Net income | $ 2,297 | $ 2,185 | $ 4,048 | $ 4,093 |
Basic Earnings Per Share | $ 0.40 | $ 0.38 | $ 0.70 | $ 0.71 |
Diluted Earnings Per Share | 0.40 | 0.38 | 0.70 | 0.71 |
DIVIDENDS PER COMMON SHARE | $ 0.1550 | $ 0.1450 | $ 0.4575 | $ 0.3875 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 2,297 | $ 2,185 | $ 4,048 | $ 4,093 |
Other comprehensive income (loss), net of tax | ||||
Unrealized holding gains (losses) on securities during the period, net of tax (benefit) of ($1,868), $327, ($3,927) and ($249) for each respective period | (7,026) | 1,232 | (14,774) | (938) |
Comprehensive (loss) income | $ (4,729) | $ 3,417 | $ (10,726) | $ 3,155 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Unrealized holding gains (losses) on securities during the period, net of tax (benefit) | $ 1,868 | $ 327 | $ 3,927 | $ 249 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock And Deferred Compensation | Retained Earnings | Accumulated Other Comprehensive Income (Loss). | Total |
Beginning Balance at Dec. 31, 2020 | $ 6,046 | $ 23,166 | $ (2,664) | $ 32,497 | $ 9,283 | $ 68,328 |
Net income | 4,093 | 4,093 | ||||
Other comprehensive income | (938) | (938) | ||||
Cash dividends - per share | (2,313) | (2,313) | ||||
Shares purchased for deferred compensation plan | (4) | 4 | ||||
Expense/shares repurchase related to share-based compensation plans | 206 | 206 | ||||
Ending Balance at Jun. 30, 2021 | 6,046 | 23,368 | (2,660) | 34,277 | 8,345 | 69,376 |
Beginning Balance at Mar. 31, 2021 | 6,046 | 23,174 | (2,569) | 32,958 | 7,113 | 66,722 |
Net income | 2,185 | 2,185 | ||||
Other comprehensive income | 1,232 | 1,232 | ||||
Cash dividends - per share | (866) | (866) | ||||
Shares purchased for deferred compensation plan | 91 | (91) | ||||
Restricted stock activity | 103 | 103 | ||||
Ending Balance at Jun. 30, 2021 | 6,046 | 23,368 | (2,660) | 34,277 | 8,345 | 69,376 |
Beginning Balance at Dec. 31, 2021 | 6,054 | 23,635 | (2,799) | 37,847 | 6,964 | 71,701 |
Net income | 4,048 | 4,048 | ||||
Other comprehensive income | (14,774) | (14,774) | ||||
Cash dividends - per share | (2,726) | (2,726) | ||||
Shares purchased for deferred compensation plan | 51 | (51) | ||||
Repurchase of common stock | (768) | (768) | ||||
Expense/shares repurchase related to share-based compensation plans | (10) | 842 | 832 | |||
Ending Balance at Jun. 30, 2022 | 6,044 | 24,528 | (3,618) | 39,169 | (7,810) | 58,313 |
Beginning Balance at Mar. 31, 2022 | 6,054 | 24,457 | (3,641) | 37,815 | (784) | 63,901 |
Net income | 2,297 | 2,297 | ||||
Other comprehensive income | (7,026) | (7,026) | ||||
Cash dividends - per share | (943) | (943) | ||||
Shares purchased for deferred compensation plan | (23) | 23 | ||||
Expense/shares repurchase related to share-based compensation plans | (10) | 94 | 84 | |||
Ending Balance at Jun. 30, 2022 | $ 6,044 | $ 24,528 | $ (3,618) | $ 39,169 | $ (7,810) | $ 58,313 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Consolidated Statements of Stockholders' Equity | ||||
DIVIDENDS PER COMMON SHARE | $ 0.1550 | $ 0.1450 | $ 0.4575 | $ 0.3875 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Operating Activities | ||
Net income | $ 4,048 | $ 4,093 |
Items not requiring (providing) cash | ||
Accretion of premiums and discounts on securities, net | 255 | 187 |
Amortization of intangible asset | 75 | 75 |
Depreciation and amortization | 523 | 576 |
Expense related to share based compensation plans | 832 | 206 |
Provision (Credit) for loan losses | (985) | (455) |
Increase in value of bank-owned life insurance | (84) | (225) |
Gain on sale of loans | (27) | (164) |
Proceeds from sale of loans held for sale | 1,017 | 7,923 |
Originations of loans held for sale | (990) | (7,759) |
Gain on sale or write down of foreclosed assets | 24 | (75) |
Amortization of debt instrument costs | 30 | 30 |
Changes In | ||
Net change in accrued interest receivable and other assets | (1,467) | (829) |
Net change in accrued expenses and other liabilities | (882) | (133) |
Net cash provided by operating activities | 2,369 | 3,450 |
Investing Activities | ||
Maturities, prepayments and calls | 4,540 | 12,305 |
Purchases | (67,360) | 0 |
Proceeds from sale of available-for-sale securities | 0 | 0 |
Net change in loans | (13,012) | (15,198) |
(Purchase) redemption of Federal Home Loan Bank Stock | 0 | 280 |
Purchases of premises and equipment | (360) | (460) |
Proceeds from sale of foreclosed and fixed assets | 162 | 456 |
Net cash used in investing activities | (76,030) | (2,617) |
Financing Activities | ||
Net change in deposits | 2,172 | 24,615 |
Net change in securities sold under repurchase agreements | 8,775 | 11,622 |
Repurchase of common stock | (768) | |
Cash dividends paid on common stock | (2,726) | (2,313) |
Net cash provided by financing activities | 7,453 | 33,924 |
(Decrease) Increase in Cash and Cash Equivalents | (66,208) | 34,757 |
Cash and Cash Equivalents, Beginning of Period | 82,999 | 51,592 |
Cash and Cash Equivalents, End of Period | 16,791 | 86,349 |
Supplemental Cash Flows Information | ||
Interest paid on deposits and borrowings | 990 | 1,442 |
Federal income taxes paid | $ 300 | 200 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||
Transfers from loans to foreclosed assets held for sale | $ 70 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022, 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, 2021 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 six months ended June 30,2022, 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, 2021 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 and Tiltonsville, Ohio and Moundsville 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 The majority of the Company’s 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 the 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. 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 are not deemed outstanding for earnings per share calculations. Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2022 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,297 Less allocated earnings on non-vested restricted stock (40) Less allocated dividends on non-vested restricted stock (23) Net income allocated to common stockholders 2,234 5,484,701 Basic and diluted earnings per share $ 0.40 Three Months Ended June 30, 2021 Weighted- Net Average Per Share Income Shares Amount (In thousands) Net income $ 2,185 Less allocated earnings on non-vested restricted stock (73) Less dividends on non-vested restricted stock (46) Net income allocated to common stockholders 2,066 5,478,583 Basic and diluted earnings per share $ 0.38 Six Months Ended June 30, 2022 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 4,048 Less allocated earnings on non-vested restricted stock (121) Less allocated dividends on non-vested restricted stock (107) Net income allocated to common stockholders 3,820 5,483,282 Basic and diluted earnings per share $ 0.70 Six Months Ended June 30, 2021 Weighted- Average Per Share Net Income Shares Amount (In thousands) Net income $ 4,093 Less allocated earnings on non-vested restricted stock (98) Less dividends on non-vested restricted stock (124) Net income allocated to common stockholders 3,871 5,475,273 Basic and diluted earnings per share $ 0.71 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 2018. 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.” 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. It is anticipated the Company will use the Weighted-Average Remaining Maturity (WARM) method upon of ASU No. 2016-13. The Company continues to run projections and review 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 | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, 2022: U.S. government agencies $ 30,000 $ — $ (179) $ 29,821 Subordinated notes 31,250 — (1,564) 29,686 State and municipal obligations 136,684 518 (6,534) 130,668 Total debt securities $ 197,934 $ 518 $ (8,277) $ 190,175 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2021: Subordinated notes $ 28,837 $ 76 $ (148) $ 28,765 State and municipal obligations 106,533 11,015 — 117,548 Total debt securities $ 135,370 $ 11,091 $ (148) $ 146,313 The amortized cost and fair value of available-for-sale securities at June 30, 2022, 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 $ 340 $ 342 One to five years 30,677 30,363 Five to ten year 33,507 31,842 Due after ten years 133,410 127,628 Totals $ 197,934 $ 190,175 The carrying value of securities pledged to secure public deposits and for other purposes, was $60.7 million and $64.4 million at June 30, 2022 and December 31, 2021, 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 December 31, 2021, was $14.2 million which represented approximately 10% of the Company’s available-for-sale investment portfolio. The total fair value of these investments at June 30, 2022, was $146.0 million which represented approximately 77% 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. 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 June 30, 2022 and December 31, 2021: June 30, 2022 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 $ 29,820 $ (179) $ — $ — $ 29,820 $ (179) Subordinated notes $ 27,186 $ (1,564) $ — $ — $ 27,186 $ (1,564) State and municipal obligations $ 88,993 $ (6,534) $ — $ — $ 88,993 $ (6,534) Total temporarily impaired securities $ 145,999 $ (8,277) $ — $ — $ 145,999 $ (8,277) December 31, 2021 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 $ 14,204 $ (148) $ — $ — $ 14,204 $ (148) State and municipal obligations $ — $ — $ — $ — $ — $ — Total temporarily impaired securities $ 14,204 $ (148) $ — $ — $ 14,204 $ (148) The unrealized losses on the Company’s investments 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 June 30, 2022 and December 31, 2021. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2022 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 3: Loans and Allowance for Loan Losses Categories of loans include: June 30, December 31, 2022 2021 (In thousands) Commercial loans $ 90,891 $ 90,892 Commercial real estate 274,628 266,777 Residential real estate 95,591 90,132 Installment loans 6,279 6,571 Total gross loans 467,389 454,372 Less allowance for loan losses (2,653) (3,673) Total loans $ 464,736 $ 450,699 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 six month periods ended June 30, 2022 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance, April 1, 2022 $ 648 $ 1,289 $ 959 $ 278 $ 3,174 Provision (credit) charged to expense (151) (70) (145) (119) (485) Losses charged off — — — (39) (39) Recoveries — — — 3 3 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Balance, January 1, 2022 $ 1,046 $ 1,235 $ 1,121 $ 271 $ 3,673 Provision (credit) charged to expense (571) (16) (307) (91) (985) Losses charged off — — — (74) (74) Recoveries 22 — — 17 39 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Allocation: Ending balance: individually evaluated for impairment $ — $ 415 $ — $ — $ 415 Ending balance: collectively evaluated for impairment $ 497 $ 804 $ 814 $ 123 $ 2,238 Loans: Ending balance: individually evaluated for impairment $ — $ 3,803 $ — $ — $ 3,803 Ending balance: collectively evaluated for impairment $ 90,891 $ 270,825 $ 95,591 $ 6,279 $ 463,586 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2021 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance, April 1, 2021 $ 1,221 $ 1,820 $ 1,381 $ 385 $ 4,807 Provision charged to expense (81) (110) (24) (35) (250) Losses charged off — — (9) (20) (29) Recoveries — — 5 9 14 Balance, June 30, 2021 $ 1,140 $ 1,710 $ 1,353 $ 339 $ 4,542 Balance, January 1, 2021 $ 1,397 $ 1,821 $ 1,471 $ 424 $ 5,113 Provision charged to expense (179) (111) (99) (66) (455) Losses charged off (78) — (26) (38) (142) Recoveries — — 7 19 26 Balance, June 30, 2021 $ 1,140 $ 1,710 $ 1,353 $ 339 $ 4,542 Allocation: Ending balance: individually evaluated for impairment $ — $ 85 $ — $ — $ 85 Ending balance: collectively evaluated for impairment $ 1,140 $ 1,625 $ 1,353 $ 339 $ 4,457 Loans: Ending balance: individually evaluated for impairment $ — $ 2,591 $ 113 $ — $ 2,704 Ending balance: collectively evaluated for impairment $ 99,370 $ 260,721 $ 88,734 $ 7,138 $ 455,963 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2021 Commercial Commercial Real Estate Residential Installment Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ 230 $ –– $ –– $ 230 Ending balance: collectively evaluated for impairment $ 1,046 $ 1,005 $ 1,121 $ 271 $ 3,443 Loans: Ending balance: individually evaluated for impairment $ — $ 3,933 $ — $ — $ 3,933 Ending balance: collectively evaluated for impairment $ 90,892 $ 262,844 $ 90,132 $ 6,571 $ 450,439 The following tables show the portfolio quality indicators. June 30, 2022 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 90,891 $ 262,897 $ 95,591 $ 6,279 $ 455,658 Special Mention — 4,108 — — 4,108 Substandard — 7,623 — — 7,623 Doubtful — — — — — $ 90,891 $ 274,628 $ 95,591 $ 6,279 $ 467,389 December 31, 2021 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 90,892 $ 254,760 $ 90,132 $ 6,571 $ 442,355 Special Mention — 4,115 — — 7,943 Substandard — 7,902 — — 4,074 Doubtful — — — — — $ 90,892 $ 266,777 $ 90,132 $ 6,571 $ 454,372 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 June 30, 2022 30-59 Days 60 ‑ 89 Days Greater Than Total Past Past Due and Past Due and 90 Days and Due and Non Total Loans Accruing Accruing Accruing Non Accrual Accrual Current Receivable (In thousands) Commercial $ 83 $ — $ — $ — $ 83 $ 90,808 $ 90,891 Commercial real estate 160 57 — 3,803 4,020 270,608 274,628 Residential 123 2 — 194 319 95,272 95,591 Installment 1 — — — 1 6,278 6,279 Total $ 367 $ 59 $ — $ 3,997 $ 4,423 $ 462,966 $ 467,389 Loan Portfolio Aging Analysis As of December 31, 2021 30 ‑ 59 Days 60 ‑ 89 Days Greater Than Total Past Past Due and Past Due and 90 Days and Due and Non Total Loans Accruing Accruing Accruing Non Accrual Accrual Current Receivable (In thousands) Commercial $ 63 $ — $ — $ — $ 63 $ 90,829 $ 90,892 Commercial real estate 220 — — 3,818 4,038 262,739 266,777 Residential 22 — — 391 413 89,719 90,132 Installment 40 — — — 40 6,531 6,571 Total $ 345 $ — $ — $ 4,209 $ 4,554 $ 449,818 $ 454,372 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 As of For the three months ended For the six months ended June 30, 2022 June 30, 2022 June 30, 2022 Average Unpaid Investment Interest Average Interest Recorded Principal Specific in Impaired Income Investment in Income Balance Balance Allowance Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate 2,840 2,840 — 2,844 — 2,841 20 Residential — — — — — — — Installment — — — — — — — 2,840 2,840 — 2,844 — 2,841 20 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 963 963 415 983 — 983 — Residential — — — — — — –– Installment –– –– –– –– — — — 963 963 415 983 — 983 — Total: Commercial $ — $ — $ 415 $ — $ — $ — $ — Commercial real estate $ 3,803 $ 3,803 $ — $ 3,827 $ — $ 3,824 $ 20 Residential $ — $ — $ — $ — $ — $ — $ — Installment $ — $ — $ — $ — $ — $ — $ — Impaired Loans For the three months ended For the six months ended As of December 31, 2021 June 30, 2021 June 30, 2021 Average Unpaid Investment in Interest Average Interest Recorded Principal Specific Impaired Income Investment in Income Balance Balance Allowance Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate 128 128 — 106 1 105 1 Residential — — — 117 — 118 — Installment — — — — — — — 128 128 — 213 1 223 1 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 3,805 3,805 230 2,489 — 2,489 — Real Estate –– — — — — — — 3,805 3,805 230 2,489 — 2,489 — Total: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate $ 3,933 $ 3,933 $ 230 $ 2,595 $ 1 $ 2,594 $ 1 Real Estate $ — $ — $ — $ 117 $ — $ 118 $ — 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 June 30, 2022 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2022 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Three Months ended June 30, 2021 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2021 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2021 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2021 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — During the six months ended June 30, 2022 and 2021 troubled debt restructurings did not have an impact on the allowance for loan losses. At June 30, 2022 and 2021 and for three and six 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 | 6 Months Ended |
Jun. 30, 2022 | |
Benefit Plans | |
Benefit Plans | Note 4: Benefit Plans Pension expense includes the following: Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (In thousands) Service cost $ 130 $ 98 $ 260 $ 196 Interest cost 68 59 136 118 Expected return on assets (144) (117) (288) (234) Amortization of prior service cost and net loss 24 13 48 26 Pension expense $ 78 $ 53 $ 156 $ 106 |
Off-balance-sheet Activities
Off-balance-sheet Activities | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, 2022 2021 (In thousands) Commercial loans unused lines of credit $ 30,848 $ 78,148 Commitment to originate loans 29,481 75,832 Consumer open end lines of credit 37,475 39,622 Standby lines of credit 241 127 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, 2022 2021 (In thousands) Net unrealized gain (loss) on securities available-for-sale $ (7,759) $ 10,943 Net unrealized loss for unfunded status of defined benefit plan liability (2,127) (2,127) (9,886) 8,816 Tax effect 2,076 (1,852) Net-of-tax amount $ (7,810) $ 6,964 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2022 | |
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 Level 2 Level 3 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 June 30, 2022 and December 31, 2021: 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) June 30, 2022 U.S. government agencies $ 29,821 $ — $ 29,821 $ — Subordinated Notes $ 29,686 $ — $ 29,686 $ — State and municipal obligations $ 130,668 $ — $ 130,668 $ — December 31, 2021 Subordinated Notes $ 28,765 $ — $ 28,765 $ — State and municipal obligations $ 117,548 $ — $ 117,548 $ — 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 June 30, 2022 and December 31, 2021. 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) June 30, 2022 Collateral dependent impaired loans $ 547 $ — $ — $ 547 Foreclosed assets held for sale 237 — — 237 December 31, 2021 Collateral dependent impaired loans $ 2,822 $ — $ — $ 2,822 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 6/30/22 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 547 Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale $ 237 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable 12/31/21 Technique Inputs Range (In thousands) Collateral-dependent impaired loans $ 2,822 Market comparable properties Comparability adjustments 5% – 10% There were no significant changes in the valuation techniques used during 2022 and 2021. 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) June 30, 2022 Financial assets Cash and cash equivalents $ 16,791 $ 16,791 $ — $ — Loans, net of allowance 464,736 — — 464,266 Federal Home Loan Bank stock 3,704 — 3,704 — Accrued interest receivable 2,638 — 2,638 — Financial liabilities Deposits 607,310 — 605,941 — Short term borrowings 24,476 — 24,476 — Subordinated debentures 23,695 — 21,791 — Interest payable 170 — 170 — 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, 2021: Financial assets Cash and cash equivalents $ 82,999 $ 82,999 $ –– $ –– Loans, net of allowance 450,699 –– –– 459,031 Federal Home Loan Bank stock 3,704 –– 3,704 –– Accrued interest receivable 2,345 –– 2,345 –– Financial liabilities Deposits 605,136 –– 605,855 –– Securities sold under repurchase agreements 15,701 –– 15,701 –– Subordinated debentures 23,665 –– 23,575 –– Interest payable 180 –– 180 –– 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 June 30, 2022 and December 31, 2021. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021, repurchase agreement borrowings totaled $24,476,000 and $15,701,000, respectively and are included in securities sold under repurchase agreements 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 and reflected in securities sold under 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 Greater and Up to 30 than June 30, 2022 Continuous Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements U.S. government agencies $ 24,476 $ — $ — $ — $ 24,476 Total $ 24,476 $ — $ — $ — $ 24,476 Overnight Greater and Up to 30 than December 31, 2021 Continuous Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements U.S. government agencies $ 15,701 $ — $ — $ — $ 15,701 Total $ 15,701 $ — $ — $ — $ 15,701 These borrowings were collateralized with U.S. government and agency securities with a carrying value of $40.7 million at June 30, 2022 and $37.5 million at December 31, 2021. Declines in the fair value may require the Company to pledge additional securities. |
Core Deposits and Other Intangi
Core Deposits and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2022 | |
Core Deposits and Other Intangible Assets | |
Core Deposits and Other Intangible Assets | Note 9: Core Deposits and Other Intangible Assets The following table shows the changes in the carrying amount of goodwill for June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, 2022 2021 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682 Intangible assets in the consolidated balance sheets at June 30, 2022 and December 31, 2021 were as follows (in thousands): Six Months Ended June 30, 2022 Year Ended December 31, 2021 Gross Gross Intangible Accumulated Net Intangible Intangible Accumulated Net Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 556 485 1,041 481 560 The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of June 30, 2022 is as follows (in thousands): 2022 $ 75 2023 150 2024 150 2025 110 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 June 30, 2022 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) | 6 Months Ended |
Jun. 30, 2022 | |
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 and Tiltonsville, Ohio and Moundsville 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 The majority of the Company’s 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 the 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. 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 are not deemed outstanding for earnings per share calculations. Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2022 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,297 Less allocated earnings on non-vested restricted stock (40) Less allocated dividends on non-vested restricted stock (23) Net income allocated to common stockholders 2,234 5,484,701 Basic and diluted earnings per share $ 0.40 Three Months Ended June 30, 2021 Weighted- Net Average Per Share Income Shares Amount (In thousands) Net income $ 2,185 Less allocated earnings on non-vested restricted stock (73) Less dividends on non-vested restricted stock (46) Net income allocated to common stockholders 2,066 5,478,583 Basic and diluted earnings per share $ 0.38 Six Months Ended June 30, 2022 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 4,048 Less allocated earnings on non-vested restricted stock (121) Less allocated dividends on non-vested restricted stock (107) Net income allocated to common stockholders 3,820 5,483,282 Basic and diluted earnings per share $ 0.70 Six Months Ended June 30, 2021 Weighted- Average Per Share Net Income Shares Amount (In thousands) Net income $ 4,093 Less allocated earnings on non-vested restricted stock (98) Less dividends on non-vested restricted stock (124) Net income allocated to common stockholders 3,871 5,475,273 Basic and diluted earnings per share $ 0.71 |
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 2018. |
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.” 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. It is anticipated the Company will use the Weighted-Average Remaining Maturity (WARM) method upon of ASU No. 2016-13. The Company continues to run projections and review 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) | 6 Months Ended |
Jun. 30, 2022 | |
Summary of Significant Accounting Policies | |
Schedule of earnings per share | Three Months Ended June 30, 2022 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 2,297 Less allocated earnings on non-vested restricted stock (40) Less allocated dividends on non-vested restricted stock (23) Net income allocated to common stockholders 2,234 5,484,701 Basic and diluted earnings per share $ 0.40 Three Months Ended June 30, 2021 Weighted- Net Average Per Share Income Shares Amount (In thousands) Net income $ 2,185 Less allocated earnings on non-vested restricted stock (73) Less dividends on non-vested restricted stock (46) Net income allocated to common stockholders 2,066 5,478,583 Basic and diluted earnings per share $ 0.38 Six Months Ended June 30, 2022 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 4,048 Less allocated earnings on non-vested restricted stock (121) Less allocated dividends on non-vested restricted stock (107) Net income allocated to common stockholders 3,820 5,483,282 Basic and diluted earnings per share $ 0.70 Six Months Ended June 30, 2021 Weighted- Average Per Share Net Income Shares Amount (In thousands) Net income $ 4,093 Less allocated earnings on non-vested restricted stock (98) Less dividends on non-vested restricted stock (124) Net income allocated to common stockholders 3,871 5,475,273 Basic and diluted earnings per share $ 0.71 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Securities | |
Schedule of amortized cost and approximate fair values, together with gross unrealized gains and losses of securities | Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2022: U.S. government agencies $ 30,000 $ — $ (179) $ 29,821 Subordinated notes 31,250 — (1,564) 29,686 State and municipal obligations 136,684 518 (6,534) 130,668 Total debt securities $ 197,934 $ 518 $ (8,277) $ 190,175 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2021: Subordinated notes $ 28,837 $ 76 $ (148) $ 28,765 State and municipal obligations 106,533 11,015 — 117,548 Total debt securities $ 135,370 $ 11,091 $ (148) $ 146,313 |
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 $ 340 $ 342 One to five years 30,677 30,363 Five to ten year 33,507 31,842 Due after ten years 133,410 127,628 Totals $ 197,934 $ 190,175 |
Schedule of investments' gross unrealized losses and fair value, aggregated by investment category and length of time | June 30, 2022 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 $ 29,820 $ (179) $ — $ — $ 29,820 $ (179) Subordinated notes $ 27,186 $ (1,564) $ — $ — $ 27,186 $ (1,564) State and municipal obligations $ 88,993 $ (6,534) $ — $ — $ 88,993 $ (6,534) Total temporarily impaired securities $ 145,999 $ (8,277) $ — $ — $ 145,999 $ (8,277) December 31, 2021 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 $ 14,204 $ (148) $ — $ — $ 14,204 $ (148) State and municipal obligations $ — $ — $ — $ — $ — $ — Total temporarily impaired securities $ 14,204 $ (148) $ — $ — $ 14,204 $ (148) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Loans and Allowance for Loan Losses | |
Schedule of categories of loans | Categories of loans include: June 30, December 31, 2022 2021 (In thousands) Commercial loans $ 90,891 $ 90,892 Commercial real estate 274,628 266,777 Residential real estate 95,591 90,132 Installment loans 6,279 6,571 Total gross loans 467,389 454,372 Less allowance for loan losses (2,653) (3,673) Total loans $ 464,736 $ 450,699 |
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 six month periods ended June 30, 2022 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance, April 1, 2022 $ 648 $ 1,289 $ 959 $ 278 $ 3,174 Provision (credit) charged to expense (151) (70) (145) (119) (485) Losses charged off — — — (39) (39) Recoveries — — — 3 3 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Balance, January 1, 2022 $ 1,046 $ 1,235 $ 1,121 $ 271 $ 3,673 Provision (credit) charged to expense (571) (16) (307) (91) (985) Losses charged off — — — (74) (74) Recoveries 22 — — 17 39 Balance, June 30, 2022 $ 497 $ 1,219 $ 814 $ 123 $ 2,653 Allocation: Ending balance: individually evaluated for impairment $ — $ 415 $ — $ — $ 415 Ending balance: collectively evaluated for impairment $ 497 $ 804 $ 814 $ 123 $ 2,238 Loans: Ending balance: individually evaluated for impairment $ — $ 3,803 $ — $ — $ 3,803 Ending balance: collectively evaluated for impairment $ 90,891 $ 270,825 $ 95,591 $ 6,279 $ 463,586 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2021 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance, April 1, 2021 $ 1,221 $ 1,820 $ 1,381 $ 385 $ 4,807 Provision charged to expense (81) (110) (24) (35) (250) Losses charged off — — (9) (20) (29) Recoveries — — 5 9 14 Balance, June 30, 2021 $ 1,140 $ 1,710 $ 1,353 $ 339 $ 4,542 Balance, January 1, 2021 $ 1,397 $ 1,821 $ 1,471 $ 424 $ 5,113 Provision charged to expense (179) (111) (99) (66) (455) Losses charged off (78) — (26) (38) (142) Recoveries — — 7 19 26 Balance, June 30, 2021 $ 1,140 $ 1,710 $ 1,353 $ 339 $ 4,542 Allocation: Ending balance: individually evaluated for impairment $ — $ 85 $ — $ — $ 85 Ending balance: collectively evaluated for impairment $ 1,140 $ 1,625 $ 1,353 $ 339 $ 4,457 Loans: Ending balance: individually evaluated for impairment $ — $ 2,591 $ 113 $ — $ 2,704 Ending balance: collectively evaluated for impairment $ 99,370 $ 260,721 $ 88,734 $ 7,138 $ 455,963 Allowance for Loan Losses and Recorded Investment in Loans As of December 31, 2021 Commercial Commercial Real Estate Residential Installment Total (In thousands) Allowance for loan losses: Ending balance: individually evaluated for impairment $ — $ 230 $ –– $ –– $ 230 Ending balance: collectively evaluated for impairment $ 1,046 $ 1,005 $ 1,121 $ 271 $ 3,443 Loans: Ending balance: individually evaluated for impairment $ — $ 3,933 $ — $ — $ 3,933 Ending balance: collectively evaluated for impairment $ 90,892 $ 262,844 $ 90,132 $ 6,571 $ 450,439 |
Schedule of portfolio quality indicators | The following tables show the portfolio quality indicators. June 30, 2022 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 90,891 $ 262,897 $ 95,591 $ 6,279 $ 455,658 Special Mention — 4,108 — — 4,108 Substandard — 7,623 — — 7,623 Doubtful — — — — — $ 90,891 $ 274,628 $ 95,591 $ 6,279 $ 467,389 December 31, 2021 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 90,892 $ 254,760 $ 90,132 $ 6,571 $ 442,355 Special Mention — 4,115 — — 7,943 Substandard — 7,902 — — 4,074 Doubtful — — — — — $ 90,892 $ 266,777 $ 90,132 $ 6,571 $ 454,372 |
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 June 30, 2022 30-59 Days 60 ‑ 89 Days Greater Than Total Past Past Due and Past Due and 90 Days and Due and Non Total Loans Accruing Accruing Accruing Non Accrual Accrual Current Receivable (In thousands) Commercial $ 83 $ — $ — $ — $ 83 $ 90,808 $ 90,891 Commercial real estate 160 57 — 3,803 4,020 270,608 274,628 Residential 123 2 — 194 319 95,272 95,591 Installment 1 — — — 1 6,278 6,279 Total $ 367 $ 59 $ — $ 3,997 $ 4,423 $ 462,966 $ 467,389 Loan Portfolio Aging Analysis As of December 31, 2021 30 ‑ 59 Days 60 ‑ 89 Days Greater Than Total Past Past Due and Past Due and 90 Days and Due and Non Total Loans Accruing Accruing Accruing Non Accrual Accrual Current Receivable (In thousands) Commercial $ 63 $ — $ — $ — $ 63 $ 90,829 $ 90,892 Commercial real estate 220 — — 3,818 4,038 262,739 266,777 Residential 22 — — 391 413 89,719 90,132 Installment 40 — — — 40 6,531 6,571 Total $ 345 $ — $ — $ 4,209 $ 4,554 $ 449,818 $ 454,372 |
Schedule of impaired loans | Impaired Loans As of For the three months ended For the six months ended June 30, 2022 June 30, 2022 June 30, 2022 Average Unpaid Investment Interest Average Interest Recorded Principal Specific in Impaired Income Investment in Income Balance Balance Allowance Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate 2,840 2,840 — 2,844 — 2,841 20 Residential — — — — — — — Installment — — — — — — — 2,840 2,840 — 2,844 — 2,841 20 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 963 963 415 983 — 983 — Residential — — — — — — –– Installment –– –– –– –– — — — 963 963 415 983 — 983 — Total: Commercial $ — $ — $ 415 $ — $ — $ — $ — Commercial real estate $ 3,803 $ 3,803 $ — $ 3,827 $ — $ 3,824 $ 20 Residential $ — $ — $ — $ — $ — $ — $ — Installment $ — $ — $ — $ — $ — $ — $ — Impaired Loans For the three months ended For the six months ended As of December 31, 2021 June 30, 2021 June 30, 2021 Average Unpaid Investment in Interest Average Interest Recorded Principal Specific Impaired Income Investment in Income Balance Balance Allowance Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial real estate 128 128 — 106 1 105 1 Residential — — — 117 — 118 — Installment — — — — — — — 128 128 — 213 1 223 1 Loans with a specific valuation allowance: Commercial — — — — — — — Commercial real estate 3,805 3,805 230 2,489 — 2,489 — Real Estate –– — — — — — — 3,805 3,805 230 2,489 — 2,489 — Total: Commercial $ — $ — $ — $ — $ — $ — $ — Commercial Real Estate $ 3,933 $ 3,933 $ 230 $ 2,595 $ 1 $ 2,594 $ 1 Real Estate $ — $ — $ — $ 117 $ — $ 118 $ — Installment $ — $ — $ — $ — $ — $ — $ — |
Schedule of troubled debt restructurings on financing receivables | Three Months ended June 30, 2022 Pre- Post- Modification Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2022 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2022 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Three Months ended June 30, 2021 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2021 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2021 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2021 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Benefit Plans | |
Schedule of pension expense | Pension expense includes the following: Three months ended Six months ended June 30, June 30, 2022 2021 2022 2021 (In thousands) Service cost $ 130 $ 98 $ 260 $ 196 Interest cost 68 59 136 118 Expected return on assets (144) (117) (288) (234) Amortization of prior service cost and net loss 24 13 48 26 Pension expense $ 78 $ 53 $ 156 $ 106 |
Off-balance-sheet Activities (T
Off-balance-sheet Activities (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, 2022 2021 (In thousands) Commercial loans unused lines of credit $ 30,848 $ 78,148 Commitment to originate loans 29,481 75,832 Consumer open end lines of credit 37,475 39,622 Standby lines of credit 241 127 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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: June 30, December 31, 2022 2021 (In thousands) Net unrealized gain (loss) on securities available-for-sale $ (7,759) $ 10,943 Net unrealized loss for unfunded status of defined benefit plan liability (2,127) (2,127) (9,886) 8,816 Tax effect 2,076 (1,852) Net-of-tax amount $ (7,810) $ 6,964 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 June 30, 2022 and December 31, 2021: 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) June 30, 2022 U.S. government agencies $ 29,821 $ — $ 29,821 $ — Subordinated Notes $ 29,686 $ — $ 29,686 $ — State and municipal obligations $ 130,668 $ — $ 130,668 $ — December 31, 2021 Subordinated Notes $ 28,765 $ — $ 28,765 $ — State and municipal obligations $ 117,548 $ — $ 117,548 $ — |
Schedule of fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a non-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 nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2022 and December 31, 2021. 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) June 30, 2022 Collateral dependent impaired loans $ 547 $ — $ — $ 547 Foreclosed assets held for sale 237 — — 237 December 31, 2021 Collateral dependent impaired loans $ 2,822 $ — $ — $ 2,822 |
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 6/30/22 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 547 Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale $ 237 Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation Unobservable 12/31/21 Technique Inputs Range (In thousands) Collateral-dependent impaired loans $ 2,822 Market comparable properties Comparability adjustments 5% – 10% |
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) June 30, 2022 Financial assets Cash and cash equivalents $ 16,791 $ 16,791 $ — $ — Loans, net of allowance 464,736 — — 464,266 Federal Home Loan Bank stock 3,704 — 3,704 — Accrued interest receivable 2,638 — 2,638 — Financial liabilities Deposits 607,310 — 605,941 — Short term borrowings 24,476 — 24,476 — Subordinated debentures 23,695 — 21,791 — Interest payable 170 — 170 — 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, 2021: Financial assets Cash and cash equivalents $ 82,999 $ 82,999 $ –– $ –– Loans, net of allowance 450,699 –– –– 459,031 Federal Home Loan Bank stock 3,704 –– 3,704 –– Accrued interest receivable 2,345 –– 2,345 –– Financial liabilities Deposits 605,136 –– 605,855 –– Securities sold under repurchase agreements 15,701 –– 15,701 –– Subordinated debentures 23,665 –– 23,575 –– Interest payable 180 –– 180 –– |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
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 Greater and Up to 30 than June 30, 2022 Continuous Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements U.S. government agencies $ 24,476 $ — $ — $ — $ 24,476 Total $ 24,476 $ — $ — $ — $ 24,476 Overnight Greater and Up to 30 than December 31, 2021 Continuous Days 30 ‑ 90 Days 90 Days Total Repurchase Agreements U.S. government agencies $ 15,701 $ — $ — $ — $ 15,701 Total $ 15,701 $ — $ — $ — $ 15,701 |
Core Deposits and Other Intan_2
Core Deposits and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Core Deposits and Other Intangible Assets | |
Summary of changes in the carrying amount of goodwill | The following table shows the changes in the carrying amount of goodwill for June 30, 2022 and December 31, 2021 (in thousands): June 30, December 31, 2022 2021 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 June 30, 2022 and December 31, 2021 were as follows (in thousands): Six Months Ended June 30, 2022 Year Ended December 31, 2021 Gross Gross Intangible Accumulated Net Intangible Intangible Accumulated Net Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 556 485 1,041 481 560 |
Summary of estimated aggregate future amortization expense for each of the next four 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, 2022 is as follows (in thousands): 2022 $ 75 2023 150 2024 150 2025 110 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share | ||||
Net income | $ 2,297 | $ 2,185 | $ 4,048 | $ 4,093 |
Less allocated earnings on non-vested restricted stock | (40) | (73) | (121) | (98) |
Less allocated dividends on non-vested restricted stock | (23) | (46) | (107) | (124) |
Net income allocated to common stockholders | $ 2,234 | $ 2,066 | $ 3,820 | $ 3,871 |
Weighted Average Number of Shares Outstanding, Basic | 5,484,701 | 5,478,583 | 5,483,282 | 5,475,273 |
Weighted Average Number of Shares Outstanding, Diluted (Shares) | 5,484,701 | 5,478,583 | 5,483,282 | 5,475,273 |
Basic Earnings Per Share | $ 0.40 | $ 0.38 | $ 0.70 | $ 0.71 |
Diluted Earnings Per Share | $ 0.40 | $ 0.38 | $ 0.70 | $ 0.71 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Additional Information (Details) | 6 Months Ended |
Jun. 30, 2022 | |
Minimum | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of discount rate applied on existing appraisal for determining fair value of collateral | 10 |
Maximum | |
Summary Of Significant Accounting Policies [Line Items] | |
Percentage of discount rate applied on existing appraisal for determining fair value of collateral | 35 |
Securities - Amortized Cost and
Securities - Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 197,934 | $ 135,370 |
Available-for-sale Securities, Gross Unrealized Gains | 518 | 11,091 |
Available-for-sale Securities, Gross Unrealized Losses | (8,277) | (148) |
Available-for-sale securities, Fair Value | 190,175 | 146,313 |
U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 30,000 | |
Available-for-sale Securities, Gross Unrealized Gains | 0 | |
Available-for-sale Securities, Gross Unrealized Losses | (179) | |
Available-for-sale securities, Fair Value | 29,821 | |
Subordinated Notes | ||
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 31,250 | 28,837 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 76 |
Available-for-sale Securities, Gross Unrealized Losses | (1,564) | (148) |
Available-for-sale securities, Fair Value | 29,686 | 28,765 |
State and municipal obligations | ||
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 136,684 | 106,533 |
Available-for-sale Securities, Gross Unrealized Gains | 518 | 11,015 |
Available-for-sale Securities, Gross Unrealized Losses | (6,534) | |
Available-for-sale securities, Fair Value | $ 130,668 | $ 117,548 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Fair Value of available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Available-for-sale, Amortized Cost | ||
Within one year | $ 340 | |
One to five years | 30,677 | |
Five to ten year | 33,507 | |
Due after ten years | 133,410 | |
Totals | 197,934 | $ 135,370 |
Available-for-sale, Fair Value | ||
Within one year | 342 | |
One to five years | 30,363 | |
Five to ten year | 31,842 | |
Due after ten years | 127,628 | |
Totals | $ 190,175 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 145,999 | $ 14,204 |
Less than 12 Months, Unrealized Losses | (8,277) | (148) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 145,999 | 14,204 |
Total, Unrealized Losses | (8,277) | (148) |
U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | 29,820 | 0 |
Less than 12 Months, Unrealized Losses | (179) | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 29,820 | 0 |
Total, Unrealized Losses | (179) | 0 |
State and municipal obligations | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | 88,993 | 0 |
Less than 12 Months, Unrealized Losses | (6,534) | 0 |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 88,993 | 0 |
Total, Unrealized Losses | (6,534) | 0 |
Subordinated Notes | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | 27,186 | 14,204 |
Less than 12 Months, Unrealized Losses | (1,564) | (148) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 27,186 | 14,204 |
Total, Unrealized Losses | $ (1,564) | $ (148) |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2022 | Dec. 31, 2021 |
Securities | ||
Debt Securities, Available-for-sale, Restricted | $ 60.7 | $ 64.4 |
Fair Value of Investment in debt securities | $ 146 | $ 14.2 |
Percentage of fair value of investment in debt | 77% | 10% |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Categories of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total gross loans | $ 467,389 | $ 454,372 | |||||
Less allowance for loan losses | (2,653) | $ (3,174) | (3,673) | $ (2,653) | $ (4,542) | $ (4,807) | $ (5,113) |
Total loans | 464,736 | 450,699 | |||||
Commercial | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total gross loans | 90,891 | 90,892 | |||||
Less allowance for loan losses | (497) | (648) | (1,046) | (1,140) | (1,221) | (1,397) | |
Commercial Real Estate | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total gross loans | 274,628 | 266,777 | |||||
Less allowance for loan losses | (1,219) | (1,289) | (1,235) | (1,710) | (1,820) | (1,821) | |
Residential real estate | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total gross loans | 95,591 | 90,132 | |||||
Less allowance for loan losses | (814) | $ (959) | (1,121) | $ (1,353) | $ (1,381) | $ (1,471) | |
Installment loans | |||||||
Accounts Notes And Loans Receivable [Line Items] | |||||||
Total gross loans | $ 6,279 | $ 6,571 |
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 | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Allowance for loan losses: | |||||
Beginning Balance | $ 3,174 | $ 4,807 | $ 3,673 | $ 5,113 | |
Provision (credit) charged to expense | (485) | (250) | (985) | (455) | |
Losses charged off | (39) | (29) | (74) | (142) | |
Recoveries | 3 | 14 | 39 | 26 | |
Ending Balance | 2,653 | 4,542 | 2,653 | 4,542 | |
Allocation: | |||||
Ending balance: individually evaluated for impairment | 415 | 85 | 415 | 85 | $ 230 |
Ending balance: collectively evaluated for impairment | 2,238 | 4,457 | 2,238 | 4,457 | 3,443 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 3,803 | 2,704 | 3,803 | 2,704 | 3,933 |
Ending balance: collectively evaluated for impairment | 463,586 | 455,963 | 463,586 | 455,963 | 450,439 |
Commercial | |||||
Allowance for loan losses: | |||||
Beginning Balance | 648 | 1,221 | 1,046 | 1,397 | |
Provision (credit) charged to expense | (151) | (81) | (571) | (179) | |
Losses charged off | (78) | ||||
Recoveries | 22 | ||||
Ending Balance | 497 | 1,140 | 497 | 1,140 | |
Allocation: | |||||
Ending balance: collectively evaluated for impairment | 497 | 1,140 | 497 | 1,140 | 1,046 |
Loans: | |||||
Ending balance: collectively evaluated for impairment | 90,891 | 99,370 | 90,891 | 99,370 | 90,892 |
Commercial Real Estate | |||||
Allowance for loan losses: | |||||
Beginning Balance | 1,289 | 1,820 | 1,235 | 1,821 | |
Provision (credit) charged to expense | (70) | (110) | (16) | (111) | |
Ending Balance | 1,219 | 1,710 | 1,219 | 1,710 | |
Allocation: | |||||
Ending balance: individually evaluated for impairment | 415 | 85 | 415 | 85 | 230 |
Ending balance: collectively evaluated for impairment | 804 | 1,625 | 804 | 1,625 | 1,005 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 3,803 | 2,591 | 3,803 | 2,591 | 3,933 |
Ending balance: collectively evaluated for impairment | 270,825 | 260,721 | 270,825 | 260,721 | 262,844 |
Residential real estate | |||||
Allowance for loan losses: | |||||
Beginning Balance | 959 | 1,381 | 1,121 | 1,471 | |
Provision (credit) charged to expense | (145) | (24) | (307) | (99) | |
Losses charged off | (9) | (26) | |||
Recoveries | 5 | 7 | |||
Ending Balance | 814 | 1,353 | 814 | 1,353 | |
Allocation: | |||||
Ending balance: collectively evaluated for impairment | 814 | 1,353 | 814 | 1,353 | 1,121 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 113 | 113 | |||
Ending balance: collectively evaluated for impairment | 95,591 | 88,734 | 95,591 | 88,734 | 90,132 |
Installment | |||||
Allowance for loan losses: | |||||
Beginning Balance | 278 | 385 | 271 | 424 | |
Provision (credit) charged to expense | (119) | (35) | (91) | (66) | |
Losses charged off | (39) | (20) | (74) | (38) | |
Recoveries | 3 | 9 | 17 | 19 | |
Ending Balance | 123 | 339 | 123 | 339 | |
Allocation: | |||||
Ending balance: collectively evaluated for impairment | 123 | 339 | 123 | 339 | 271 |
Loans: | |||||
Ending balance: collectively evaluated for impairment | $ 6,279 | $ 7,138 | $ 6,279 | $ 7,138 | $ 6,571 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Portfolio Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 467,389 | $ 454,372 |
Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 90,891 | 90,892 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 274,628 | 266,777 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 95,591 | 90,132 |
Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 6,279 | 6,571 |
Pass Grade | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 455,658 | 442,355 |
Pass Grade | Commercial | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 90,891 | 90,892 |
Pass Grade | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 262,897 | 254,760 |
Pass Grade | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 95,591 | 90,132 |
Pass Grade | Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 6,279 | 6,571 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 4,108 | 7,943 |
Special Mention | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 4,108 | 4,115 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 7,623 | 4,074 |
Substandard | Commercial Real Estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 7,623 | $ 7,902 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | $ 3,997 | $ 4,209 |
Total gross loans | 467,389 | 454,372 |
30 to 59 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 367 | 345 |
60 to 89 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 59 | 0 |
Greater Than 90 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Financial Asset, Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 4,423 | 4,554 |
Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 462,966 | 449,818 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 0 | 0 |
Total gross loans | 90,891 | 90,892 |
Commercial | 30 to 59 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 83 | 63 |
Commercial | 60 to 89 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial | Greater Than 90 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial | Financial Asset, Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 83 | 63 |
Commercial | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 90,808 | 90,829 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 3,803 | 3,818 |
Total gross loans | 274,628 | 266,777 |
Commercial Real Estate | 30 to 59 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 160 | 220 |
Commercial Real Estate | 60 to 89 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 57 | 0 |
Commercial Real Estate | Greater Than 90 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Commercial Real Estate | Financial Asset, Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 4,020 | 4,038 |
Commercial Real Estate | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 270,608 | 262,739 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 194 | 391 |
Total gross loans | 95,591 | 90,132 |
Residential real estate | 30 to 59 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 123 | 22 |
Residential real estate | 60 to 89 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 2 | 0 |
Residential real estate | Greater Than 90 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Residential real estate | Financial Asset, Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 319 | 413 |
Residential real estate | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 95,272 | 89,719 |
Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 0 | 0 |
Total gross loans | 6,279 | 6,571 |
Installment | 30 to 59 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1 | 40 |
Installment | 60 to 89 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Installment | Greater Than 90 Days Past Due and Accruing | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 0 | 0 |
Installment | Financial Asset, Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | 1 | 40 |
Installment | Financial Asset, Not Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total gross loans | $ 6,278 | $ 6,531 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | $ 2,840 | $ 2,840 | $ 128 | ||
Recorded balance, loans with a specific valuation allowance | 963 | 963 | 3,805 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 2,840 | 2,840 | 128 | ||
Unpaid principal balance, loans with a specific valuation allowance | 963 | 963 | 3,805 | ||
Specific Allowance | 415 | 415 | 230 | ||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 2,844 | $ 213 | 2,841 | $ 223 | |
Average investment in impaired loans, loans with a specific valuation allowance | 983 | 2,489 | 983 | 2,489 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 1 | 20 | 1 | ||
Commercial | |||||
Unpaid Principal Balance | |||||
Specific Allowance | 415 | 415 | |||
Real Estate | |||||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, total | 117 | 118 | |||
Commercial Real Estate | |||||
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | 2,840 | 2,840 | 128 | ||
Recorded balance, loans with a specific valuation allowance | 963 | 963 | 3,805 | ||
Recorded balance, total | 3,803 | 3,803 | 3,933 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 2,840 | 2,840 | 128 | ||
Unpaid principal balance, loans with a specific valuation allowance | 963 | 963 | 3,805 | ||
Unpaid principal balance, total | 3,803 | 3,803 | 3,933 | ||
Specific Allowance | 415 | 415 | 230 | ||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 2,844 | 106 | 2,841 | 105 | |
Average investment in impaired loans, loans with a specific valuation allowance | 983 | 2,489 | 983 | 2,489 | |
Average investment in impaired loans, total | $ 3,827 | 2,595 | 3,824 | 2,594 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 1 | 20 | 1 | ||
Interest income recognized, total | 1 | $ 20 | 1 | ||
Residential real estate | |||||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | $ 117 | $ 118 | |||
Installment | |||||
Unpaid Principal Balance | |||||
Specific Allowance | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings on Financing Receivables (Details) - Commercial $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) contract | Jun. 30, 2021 USD ($) contract | Jun. 30, 2022 USD ($) contract | Jun. 30, 2021 USD ($) contract | |
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 |
Benefit Plans - (Details)
Benefit Plans - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Components of net periodic benefit cost | ||||
Service cost | $ 130 | $ 98 | $ 260 | $ 196 |
Interest cost | 68 | 59 | 136 | 118 |
Expected return on assets | (144) | (117) | (288) | (234) |
Amortization of prior service cost and net loss | 24 | 13 | 48 | 26 |
Pension expense | $ 78 | $ 53 | $ 156 | $ 106 |
Off-balance-sheet Activities (D
Off-balance-sheet Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
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 | $ 30,848 | $ 78,148 |
Commitment to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | 29,481 | 75,832 |
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 | 37,475 | 39,622 |
Standby lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 241 | $ 127 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accumulated Other Comprehensive Income (Loss) | ||
Net unrealized gain (loss) on securities available-for-sale | $ (7,759) | $ 10,943 |
Net unrealized loss for unfunded status of defined benefit plan liability | (2,127) | (2,127) |
Accumulated other comprehensive income, before taxes, total | (9,886) | 8,816 |
Tax effect | 2,076 | (1,852) |
Net-of-tax amount | $ (7,810) | $ 6,964 |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | $ 29,821 | |
State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 130,668 | $ 117,548 |
Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 29,686 | 28,765 |
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 | |
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 | 29,821 | |
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 | 130,668 | 117,548 |
Fair Value, Inputs, Level 2 | Subordinated Notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 29,686 | 28,765 |
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 | |
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | $ 547 | $ 2,822 |
Foreclosed assets held for sale | 237 | |
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 | |
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 | |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 547 | $ 2,822 |
Foreclosed assets held for sale | $ 237 |
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 | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Collateral-dependent impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 547 | $ 2,822 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable Inputs | Marketability discount | Comparability adjustments |
Collateral-dependent impaired loans | Minimum | Market comparable properties | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10% | |
Collateral-dependent impaired loans | Minimum | Market comparable properties | Comparability adjustments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 5% | |
Collateral-dependent impaired loans | Maximum | Market comparable properties | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 25% | |
Collateral-dependent impaired loans | Maximum | Market comparable properties | Comparability adjustments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10% | |
Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 237 | |
Valuation Technique | Market comparable properties | |
Unobservable Inputs | Marketability discount | |
Foreclosed assets held for sale | Minimum | Market comparable properties | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10% | |
Foreclosed assets held for sale | Maximum | Market comparable properties | Marketability discount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 35% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financial assets | ||
Cash and cash equivalents | $ 16,791 | $ 82,999 |
Loans, net of allowance | 464,736 | 450,699 |
Federal Home Loan Bank stock | 3,704 | 3,704 |
Accrued interest receivable | 2,638 | 2,345 |
Financial liabilities | ||
Deposits | 607,310 | 605,136 |
Short term borrowings | 24,476 | |
Securities sold under repurchase agreements | 24,476 | 15,701 |
Subordinated debentures | 23,695 | 23,665 |
Interest payable | 170 | 180 |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 16,791 | 82,999 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Federal Home Loan Bank stock | 3,704 | 3,704 |
Accrued interest receivable | 2,638 | 2,345 |
Financial liabilities | ||
Deposits | 605,941 | 605,855 |
Short term borrowings | 24,476 | |
Securities sold under repurchase agreements | 15,701 | |
Subordinated debentures | 21,791 | 23,575 |
Interest payable | 170 | 180 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Loans, net of allowance | $ 464,266 | $ 459,031 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Securities Sold under Agreements to Repurchase | $ 24,476 | $ 15,701 |
Repurchase Agreements U.S. government agencies | ||
Securities Sold under Agreements to Repurchase | 24,476 | 15,701 |
Overnight and Continuous | ||
Securities Sold under Agreements to Repurchase | 24,476 | 15,701 |
Overnight and Continuous | Repurchase Agreements U.S. government agencies | ||
Securities Sold under Agreements to Repurchase | 24,476 | 15,701 |
Up to 30 Days | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Up to 30 Days | Repurchase Agreements U.S. government agencies | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
30-90 Days | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
30-90 Days | Repurchase Agreements U.S. government agencies | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Greater than 90 Days | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Greater than 90 Days | Repurchase Agreements U.S. government agencies | ||
Securities Sold under Agreements to Repurchase | $ 0 | $ 0 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Details) - USD ($) | Jun. 30, 2022 | Dec. 31, 2021 |
Short-term Debt | $ 24,476,000 | |
Repurchase Agreement Borrowings | ||
Short-term Debt | 24,476,000 | $ 15,701,000 |
Repurchase Agreements U.S. government agencies | ||
Short-term Debt | $ 40,700,000 | $ 37,500,000 |
Core Deposits and Other Intan_3
Core Deposits and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2022 | Dec. 31, 2021 | |
Changes in the carrying amount of goodwill | ||
Balance beginning of year | $ 682 | $ 682 |
Additions from acquisition | 0 | 0 |
Balance, end of period | $ 682 | $ 682 |
Core Deposits and Other Intan_4
Core Deposits and Other Intangible Assets - Intangible assets (Details) - Core deposit intangibles - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Intangible assets | ||
Gross Intangible Assets | $ 1,041 | $ 1,041 |
Accumulated Amortization | 556 | 481 |
Net Intangible Assets | $ 485 | $ 560 |
Core Deposits and Other Intan_5
Core Deposits and Other Intangible Assets - Future amortization expense (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Estimated aggregate future amortization expense | |
2022 | $ 75 |
2023 | 150 |
2024 | 150 |
2025 | $ 110 |