Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2021 | Nov. 09, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 30, 2021 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q3 | |
Document Transition Report | false | |
Entity File Number | 000-12896 | |
Entity Registrant Name | OLD POINT FINANCIAL CORP | |
Entity Central Index Key | 0000740971 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 54-1265373 | |
Entity Address, Address Line One | 101 East Queen Street | |
Entity Address, City or Town | Hampton | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 23669 | |
City Area Code | 757 | |
Local Phone Number | 728-1200 | |
Title of 12(b) Security | Common Stock, $5.00 par value | |
Trading Symbol | OPOF | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 5,245,842 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks | $ 14,429 | $ 21,799 | |
Interest-bearing due from banks | 169,223 | 98,633 | |
Federal funds sold | 652 | 5 | |
Cash and cash equivalents | 184,304 | 120,437 | |
Securities available-for-sale, at fair value | 212,440 | 186,409 | |
Restricted securities, at cost | 1,034 | 1,367 | |
Loans held for sale | 5,740 | 14,413 | |
Loans, net | [1] | 830,467 | 826,759 |
Premises and equipment, net | 32,282 | 33,613 | |
Premises and equipment, held for sale | 871 | 0 | |
Bank-owned life insurance | 29,012 | 28,386 | |
Goodwill | 1,650 | 1,650 | |
Core deposit intangible, net | 286 | 319 | |
Other assets | 13,540 | 12,838 | |
Total assets | 1,311,626 | 1,226,191 | |
Deposits: | |||
Noninterest-bearing deposits | 392,986 | 360,602 | |
Savings deposits | 584,600 | 512,936 | |
Time deposits | 173,120 | 193,698 | |
Total deposits | 1,150,706 | 1,067,236 | |
Overnight repurchase agreements | 4,496 | 6,619 | |
Federal Reserve Bank borrowings | 898 | 28,550 | |
Long term borrowings | 29,374 | 1,350 | |
Accrued expenses and other liabilities | 5,385 | 5,291 | |
Total liabilities | 1,190,859 | 1,109,046 | |
Stockholders' equity: | |||
Common stock, $5 par value, 10,000,000 shares authorized; 5,245,842 and 5,224,019 shares outstanding (includes 39,103 and 29,576 of nonvested restricted stock, respectively) | 26,034 | 25,972 | |
Additional paid-in capital | 21,476 | 21,245 | |
Retained earnings | 70,683 | 65,859 | |
Accumulated other comprehensive income, net | 2,574 | 4,069 | |
Total stockholders' equity | 120,767 | 117,145 | |
Total liabilities and stockholders' equity | $ 1,311,626 | $ 1,226,191 | |
[1] | Net deferred loan fees totaled $1.8 million and $2.1 million at September 30, 2021 and December 31, 2020, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2021 | Dec. 31, 2020 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares outstanding (in shares) | 5,245,842 | 5,224,019 |
Restricted Shares [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested restricted stock (in shares) | 39,103 | 29,576 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Interest and Dividend Income: | ||||
Loans, including fees | $ 9,692 | $ 8,788 | $ 28,460 | $ 26,539 |
Due from banks | 68 | 41 | 163 | 224 |
Federal funds sold | 0 | 0 | 0 | 12 |
Securities: | ||||
Taxable | 853 | 720 | 2,414 | 2,296 |
Tax-exempt | 186 | 141 | 558 | 364 |
Dividends and interest on all other securities | 16 | 47 | 57 | 136 |
Total interest and dividend income | 10,815 | 9,737 | 31,652 | 29,571 |
Interest Expense: | ||||
Checking and savings deposits | 243 | 238 | 693 | 876 |
Time deposits | 441 | 791 | 1,536 | 2,646 |
Federal funds purchased, securities sold under agreements to repurchase and other borrowings | 3 | 69 | 33 | 106 |
Long term borrowings | 252 | 0 | 252 | 0 |
Federal Home Loan Bank advances | 0 | 171 | 0 | 584 |
Total interest expense | 939 | 1,269 | 2,514 | 4,212 |
Net interest income | 9,876 | 8,468 | 29,138 | 25,359 |
Provision for loan losses | 360 | 300 | 510 | 900 |
Net interest income after provision for loan losses | 9,516 | 8,168 | 28,628 | 24,459 |
Noninterest Income: | ||||
Bank-owned life insurance income | 195 | 207 | 625 | 630 |
Mortgage banking income | 460 | 640 | 2,029 | 1,020 |
Gain on sale of available-for-sale securities, net | 0 | 1 | 0 | 185 |
Gain on sale of fixed assets | 0 | 0 | 0 | 818 |
Total noninterest income | 3,606 | 3,657 | 11,278 | 10,893 |
Noninterest Expense: | ||||
Salaries and employee benefits | 6,558 | 6,660 | 19,012 | 18,118 |
Occupancy and equipment | 1,185 | 1,233 | 3,510 | 3,687 |
Data processing | 1,187 | 946 | 3,427 | 2,569 |
Customer development | 78 | 82 | 225 | 267 |
Professional services | 625 | 467 | 1,790 | 1,532 |
Employee professional development | 154 | 200 | 487 | 513 |
Other taxes | 186 | 162 | 608 | 470 |
ATM and other losses | 68 | 75 | 224 | 233 |
(Gain) on other real estate owned | 0 | (22) | 0 | (22) |
Other operating expenses | 887 | 861 | 2,738 | 2,531 |
Total noninterest expense | 10,928 | 10,664 | 32,021 | 29,898 |
Income before income taxes | 2,194 | 1,161 | 7,885 | 5,454 |
Income tax expense | 286 | 61 | 1,123 | 610 |
Net income | $ 1,908 | $ 1,100 | $ 6,762 | $ 4,844 |
Basic Earnings per Share: | ||||
Weighted average shares outstanding (in shares) | 5,245,042 | 5,221,476 | 5,235,749 | 5,213,982 |
Net income per share of common stock (in dollars per share) | $ 0.36 | $ 0.21 | $ 1.29 | $ 0.93 |
Diluted Earnings per Share: | ||||
Weighted average shares outstanding (in shares) | 5,245,172 | 5,221,601 | 5,235,793 | 5,214,262 |
Net income per share of common stock (in dollars per share) | $ 0.36 | $ 0.21 | $ 1.29 | $ 0.93 |
Fiduciary and Asset Management Fees [Member] | ||||
Noninterest Income: | ||||
Noninterest revenue | $ 1,032 | $ 955 | $ 3,110 | $ 2,881 |
Service Charges on Deposit Accounts [Member] | ||||
Noninterest Income: | ||||
Noninterest revenue | 731 | 666 | 2,119 | 2,176 |
Other Service Charges, Commissions and Fees [Member] | ||||
Noninterest Income: | ||||
Noninterest revenue | 1,085 | 1,121 | 3,153 | 3,044 |
Other Operating Income [Member] | ||||
Noninterest Income: | ||||
Noninterest revenue | $ 103 | $ 67 | $ 242 | $ 139 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||||
Net income | $ 1,908 | $ 1,100 | $ 6,762 | $ 4,844 |
Other comprehensive income (loss), net of tax | ||||
Net unrealized gain (loss) on available-for-sale securities | (497) | 453 | (1,495) | 4,029 |
Reclassification for gain included in net income | 0 | (1) | 0 | (146) |
Other comprehensive income (loss), net of tax | (497) | 452 | (1,495) | 3,883 |
Comprehensive income | $ 1,411 | $ 1,552 | $ 5,267 | $ 8,727 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2019 | $ 25,901 | $ 20,959 | $ 62,975 | $ (79) | $ 109,756 |
Beginning Balance (in shares) at Dec. 31, 2019 | 5,180,105 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 4,844 | 0 | 4,844 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 3,883 | 3,883 |
Employee Stock Purchase Plan share issuance | $ 21 | 49 | 0 | 0 | 70 |
Employee Stock Purchase Plan share issuance (in shares) | 4,185 | ||||
Restricted stock vested | $ 42 | (42) | 0 | 0 | 0 |
Restricted stock vested (in shares) | 8,519 | ||||
Stock-based compensation expense | $ 0 | 199 | 0 | 0 | 199 |
Cash dividends | 0 | 0 | (1,877) | 0 | (1,877) |
Ending Balance at Sep. 30, 2020 | $ 25,964 | 21,165 | 65,942 | 3,804 | 116,875 |
Ending Balance (in shares) at Sep. 30, 2020 | 5,192,809 | ||||
Beginning Balance at Jun. 30, 2020 | $ 25,956 | 21,093 | 65,468 | 3,352 | 115,869 |
Beginning Balance (in shares) at Jun. 30, 2020 | 5,191,217 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 1,100 | 0 | 1,100 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 452 | 452 |
Employee Stock Purchase Plan share issuance | $ 8 | 16 | 0 | 0 | 24 |
Employee Stock Purchase Plan share issuance (in shares) | 1,592 | ||||
Restricted stock vested | $ 0 | 0 | 0 | 0 | 0 |
Restricted stock vested (in shares) | 0 | ||||
Stock-based compensation expense | $ 0 | 56 | 0 | 0 | 56 |
Cash dividends | 0 | 0 | (626) | 0 | (626) |
Ending Balance at Sep. 30, 2020 | $ 25,964 | 21,165 | 65,942 | 3,804 | 116,875 |
Ending Balance (in shares) at Sep. 30, 2020 | 5,192,809 | ||||
Beginning Balance at Dec. 31, 2020 | $ 25,972 | 21,245 | 65,859 | 4,069 | $ 117,145 |
Beginning Balance (in shares) at Dec. 31, 2020 | 5,194,443 | 5,224,019 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 6,762 | 0 | $ 6,762 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (1,495) | (1,495) |
Employee Stock Purchase Plan share issuance | $ 19 | 60 | 0 | 0 | 79 |
Employee Stock Purchase Plan share issuance (in shares) | 3,775 | ||||
Restricted stock vested | $ 43 | (43) | 0 | 0 | 0 |
Restricted stock vested (in shares) | 8,521 | ||||
Stock-based compensation expense | $ 0 | 214 | 0 | 0 | 214 |
Cash dividends | 0 | 0 | (1,938) | 0 | (1,938) |
Ending Balance at Sep. 30, 2021 | $ 26,034 | 21,476 | 70,683 | 2,574 | $ 120,767 |
Ending Balance (in shares) at Sep. 30, 2021 | 5,206,739 | 5,245,842 | |||
Beginning Balance at Jun. 30, 2021 | $ 26,028 | 21,372 | 69,457 | 3,071 | $ 119,928 |
Beginning Balance (in shares) at Jun. 30, 2021 | 5,205,532 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 1,908 | 0 | 1,908 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (497) | (497) |
Employee Stock Purchase Plan share issuance | $ 6 | 20 | 0 | 0 | 26 |
Employee Stock Purchase Plan share issuance (in shares) | 1,207 | ||||
Restricted stock vested | $ 0 | 0 | 0 | 0 | 0 |
Restricted stock vested (in shares) | 0 | ||||
Stock-based compensation expense | $ 0 | 84 | 0 | 0 | 84 |
Cash dividends | 0 | 0 | (682) | 0 | (682) |
Ending Balance at Sep. 30, 2021 | $ 26,034 | $ 21,476 | $ 70,683 | $ 2,574 | $ 120,767 |
Ending Balance (in shares) at Sep. 30, 2021 | 5,206,739 | 5,245,842 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||||
Cash dividends (in dollars per share) | $ 0.13 | $ 0.12 | $ 0.37 | $ 0.36 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||||
Net income | $ 1,908 | $ 1,100 | $ 6,762 | $ 4,844 | |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | |||||
Depreciation and amortization | 1,559 | 1,601 | |||
Amortization of right of use lease asset | 266 | 278 | |||
Accretion related to acquisition, net | (5) | (52) | |||
Amortization of subordinated debt issuance costs | 27 | 0 | |||
Provision for loan losses | 360 | 300 | 510 | 900 | $ 1,000 |
Gain on sale of securities, net | 0 | (185) | |||
Net amortization of securities | 709 | 458 | |||
Decrease (increase) in loans held for sale, net | 8,673 | (12,065) | |||
Net (gain) loss on disposal of premises and equipment | 0 | (818) | |||
Net (gain) loss on write-down/sale of other real estate owned | 0 | (22) | 0 | (22) | |
Income from bank owned life insurance | (195) | (207) | (625) | (630) | |
Stock compensation expense | 214 | 199 | |||
Deferred tax benefit | (12) | (1,032) | |||
(Decrease) in other assets | (560) | (1,666) | |||
Increase (decrease) in accrued expenses and other liabilities | 94 | (1,162) | |||
Net cash provided by (used in) operating activities | 17,612 | (9,352) | |||
CASH FLOWS FROM INVESTING ACTIVITIES | |||||
Purchases of available-for-sale securities | (55,698) | (44,173) | |||
Proceeds from redemption (purchase) of restricted securities, net | 333 | (78) | |||
Proceeds from maturities and calls of available-for-sale securities | 8,779 | 7,684 | |||
Proceeds from sales of available-for-sale securities | 4,330 | 9,385 | |||
Paydowns on available-for-sale securities | 13,957 | 8,914 | |||
Net increase in loans held for investment | (4,180) | (124,834) | |||
Proceeds from sales of other real estate owned | 0 | 40 | |||
Purchases of premises and equipment | (370) | (96) | (1,130) | (758) | |
Proceeds from sale of premises and equipment | 31 | 2,204 | |||
Net cash used in investing activities | (33,578) | (141,616) | |||
CASH FLOWS FROM FINANCING ACTIVITIES | |||||
Increase in noninterest-bearing deposits | 32,384 | 100,968 | |||
Increase in savings deposits | 71,664 | 86,575 | |||
Decrease in time deposits | (20,578) | (25,976) | |||
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net | (3,473) | (5,621) | |||
Increase in Federal Home Loan Bank advances | 0 | 25,000 | |||
Repayment of Federal Home Loan Bank advances | 0 | (23,500) | |||
Increase in Federal Reserve Bank borrowings | 0 | 37,515 | |||
Repayment of Federal Reserve Bank borrowings | (27,652) | (175) | |||
Increase in long term borrowings | 29,347 | 0 | |||
Proceeds from ESPP issuance | 79 | 70 | |||
Cash dividends paid on common stock | (1,938) | (1,877) | |||
Net cash provided by financing activities | 79,833 | 192,979 | |||
Net increase in cash and cash equivalents | 63,867 | 42,011 | |||
Cash and cash equivalents at beginning of period | 120,437 | 89,865 | 89,865 | ||
Cash and cash equivalents at end of period | $ 184,304 | $ 131,876 | 184,304 | 131,876 | $ 120,437 |
Cash payments for: | |||||
Interest | 2,442 | 4,353 | |||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | |||||
Unrealized (loss) gain on securities available-for-sale | (1,892) | 4,915 | |||
Loans transferred to other real estate owned | 0 | 254 | |||
Former bank property transferred from fixed assets to held for sale assets | 902 | 0 | |||
Right of use lease asset and liability | $ 0 | $ 862 |
Accounting Policies
Accounting Policies | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
Accounting Policies | Note 1. Accounting Policies The accompanying unaudited consolidated financial statements of Old Point Financial Corporation (NASDAQ: OPOF) (the Company) and its subsidiaries have been prepared in accordance with U.S. GAAP for interim financial information. All significant intercompany balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments and reclassifications of a normal and recurring nature considered necessary to present fairly the financial position at September 30, 2021 and December 31, 2020, the statements of income, comprehensive income, and changes in stockholders’ equity for the three and nine months ended September 30, 2021 and 2020, and the statements of cash flows for the nine months ended September 30, 2021 and 2020. The results of operations for the interim periods are not necessarily indicative of the results that may be expected for the full year. These consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s 2020 Annual Report on Form 10-K. Certain previously reported amounts have been reclassified to conform to current period presentation, none of which were material in nature. PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). All significant intercompany balances and transactions have been eliminated in consolidation. NATURE OF OPERATIONS Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries, the Bank and Trust. The Bank serves individual and commercial customers, the majority of which are in Hampton Roads, Virginia. As of September 30, 2021, the Bank had 16 branch offices. The Bank offers a full range of deposit and loan products to its retail and commercial customers, including mortgage loan products offered through Old Point Mortgage. A full array of insurance products is also offered through Old Point Insurance, LLC in partnership with Morgan Marrow Company. Trust offers a full range of services for individuals and businesses. Products and services include retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax services and investment management services. COVID-19 The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Company. Estimates for the allowance for loan losses at September 30, 2021 include probable and estimable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there remains significant uncertainty in the measurement of these losses. If there are further challenges to the economic recovery, then additional provision for loan losses may be required in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Company. Depending on the severity and duration of the economic consequences of the pandemic, the Company’s goodwill may become impaired. On March 27, 2020, the CARES Act was enacted, which included provisions that, among other things, (i) established the PPP to provide loans guaranteed by the SBA to businesses affected by the pandemic, (ii) provided certain forms of economic stimulus, including direct payments to certain U.S. households, enhanced unemployment benefits, certain income tax benefits intended to assist businesses in surviving the economic crisis, and delayed the required implementation of certain new accounting standards for some entities, and (iii) provided limited regulatory relief to banking institutions. The federal banking agencies have eased certain bank capital requirements and reporting requirements in response to the pandemic, and have encouraged banking institutions to work prudently with borrowers affected by the pandemic by offering loan modifications that can improve borrowers’ capacity to service debt, increase the potential for financially stressed residential borrowers to keep their homes, and facilitate financial institutions’ ability to collect on their loans. The Federal Reserve also established the PPPLF to provide funding to eligible financial institutions to facilitate lending under the PPP. The Consolidated Appropriations Act, 2021, enacted on December 27, 2020, expanded on some of the benefits made available under the CARES Act, including the PPP program, and provided further economic stimulus. On March 11, 2021, President Biden signed into law the American Rescue Plan which provided a further $1.9 trillion of pandemic relief. The Company’s business, financial condition and results of operations generally rely upon the ability of its borrowers to repay their loans, the value of collateral underlying secured loans, and the demand for loans and other products and services offered, which are highly dependent on the business environment in the Company’s primary markets. As of September 30, 2021, the Company had no loan modifications under the CARES Act, down from approximately $54 thousand as of June 30, 2021 and as of December RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11, ASU No. 2020-02, and ASU No. 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the U.S. Securities and Exchange Commission (SEC) and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company has formed a committee to oversee the adoption of the new standard, has engaged a third party to assist with implementation, has performed data fit gap and loss driver analyses, intends to run parallel models beginning in 2022, and is continuing to evaluate the impact that ASU No. 2016-13 will have on its consolidated financial statements. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) SAB updated portions of SEC interpretative guidance to align with FASB ASC “Financial Instruments – Credit Losses.” It covers topics including measuring current expected credit losses; development, governance, and documentation of a systematic methodology; documenting the results of a systematic methodology; and validating a systematic methodology. Other accounting standards that have been adopted by the Company or issued by the FASB or other standards-setting bodies have not or are not currently expected to have a material effect on the Company’s financial position, results of operations or cash flows. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2021 | |
Securities [Abstract] | |
Securities | Note 2. Securities Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated are as follows: September 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value U.S. Treasury securities $ 9,050 $ - $ (48 ) $ 9,002 Obligations of U.S. Government agencies 37,614 212 (58 ) 37,768 Obligations of state and political subdivisions 51,128 1,954 (261 ) 52,821 Mortgage-backed securities 84,648 1,693 (428 ) 85,913 Money market investments 3,799 - - 3,799 Corporate bonds and other securities 22,942 280 (85 ) 23,137 $ 209,181 $ 4,139 $ (880 ) $ 212,440 December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value U.S. Treasury securities $ 6,980 $ 63 $ - $ 7,043 Obligations of U.S. Government agencies 36,858 35 (197 ) 36,696 Obligations of state and political subdivisions 43,517 2,478 - 45,995 Mortgage-backed securities 70,866 2,759 (124 ) 73,501 Money market investments 4,743 - - 4,743 Corporate bonds and other securities 18,295 158 (22 ) 18,431 $ 181,259 $ 5,493 $ (343 ) $ 186,409 The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other-than-temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest-rate related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial position and access to capital of the issuer, including the current and future impact of any specific events; and (d) for fixed maturity securities, the Company’s intent to sell a security or whether it is more-likely-than-not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity. The Company has not recorded impairment charges through income on securities for the nine months ended September 30, 2021 or 2020. The amortized cost and fair value of securities by contractual maturity are shown below: September 30, 2021 (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 200 $ 200 Due after one year through five years 13,758 14,175 Due after five through ten years 52,437 53,514 Due after ten years 138,987 140,752 Other securities, restricted 3,799 3,799 $ 209,181 $ 212,440 The following table summarizes the net realized gains and losses on the sale of investment securities during the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Securities Available-for-sale Realized gains on sales of securities $ - $ 1 $ - $ 186 Realized losses on sales of securities - - - (1 ) Net realized gain $ - $ 1 $ - $ 185 The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated: September 30, 2021 Less than 12 months 12 months or more Total (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. Treasury securities $ 48 $ 9,002 $ - $ - $ 48 $ 9,002 Obligations of U.S. Government agencies 22 4,967 36 5,374 58 10,341 Obligations of state and political subdivisions 261 13,086 - - 261 13,086 Mortgage-backed securities 306 26,500 122 6,792 428 33,292 Corporate bonds and other securities 85 9,615 - - 85 9,615 Total securities available-for-sale $ 722 $ 63,170 $ 158 $ 12,166 $ 880 $ 75,336 December 31, 2020 Less than 12 months 12 months or more Total (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Obligations of U.S. Government agencies $ 8 $ 2,810 $ 189 $ 17,191 $ 197 $ 20,001 Mortgage-backed securities 118 14,291 6 1,285 124 15,576 Corporate bonds and other securities 22 5,977 - - 22 5,977 Total securities available-for-sale $ 148 $ 23,078 $ 195 $ 18,476 $ 343 $ 41,554 The number of investments in an unrealized loss position as of September 30, 2021 and December 31, 2020 were 45 and 29, respectively. Certain investments within the Company’s portfolio had unrealized losses for more than twelve months at September 30, 2021 and December 31, 2020, as shown in the tables above. The unrealized losses were caused by changes in market interest rates and not a result of credit deterioration. Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider the investments to be other-than-temporarily impaired at September 30, 2021 or December 31, 2020. Restricted Securities The restricted security category is comprised of stock in the Federal Home Loan Bank of Atlanta (FHLB), the Federal Reserve Bank (FRB), and Community Bankers’ Bank (CBB). These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, FHLB, FRB, and CBB stock are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered. |
Loans and the Allowance for Loa
Loans and the Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2021 | |
Loans and the Allowance for Loan Losses [Abstract] | |
Loans and the Allowance for Loan Losses | Note 3. Loans and the Allowance for Loan Losses The following is a summary of the balances in each class of the Company’s portfolio of loans held for investment as of the dates indicated: (dollars in thousands) September 30, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 116,466 $ 122,800 Commercial - owner occupied 185,466 153,955 Commercial - non-owner occupied 178,372 162,896 Multifamily 20,563 22,812 Construction 62,739 43,732 Second mortgages 8,710 11,178 Equity lines of credit 49,894 50,746 Total mortgage loans on real estate 622,210 568,119 Commercial and industrial loans 91,424 141,746 Consumer automobile loans 84,597 80,390 Other consumer loans 34,786 37,978 Other (1) 7,134 8,067 Total loans, net of deferred fees 840,151 836,300 Less: Allowance for loan losses 9,684 9,541 Loans, net of allowance and deferred fees (2) $ 830,467 $ 826,759 (1) Overdrawn accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $297 thousand and $271 thousand at September 30, 2021 and December 31, 2020, respectively. (2) Net deferred loan fees totaled $1.8 million and $2.1 million at September 30, 2021 and December 31, 2020, respectively. Acquired Loans The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets as of September 30, 2021 and December 31, 2020 are as follows: (dollars in thousands) September 30, 2021 December 31, 2020 Outstanding principal balance $ 5,145 $ 8,671 Carrying amount 5,114 8,602 The Company did not have any outstanding principal balance or related carrying amount of purchased credit-impaired loans as of September 30, 2021 and December 31, 2020. The following table presents changes in the accretable yield on purchased credit-impaired loans, for which the Company applies FASB ASC 310-30, at September 30, 2021 and 2020: (dollars in thousands) September 30, 2021 September 30, 2020 Balance at January 1 $ - $ 72 Accretion - (29 ) Balance at end of period $ - $ 43 CREDIT QUALITY INFORMATION The Company uses internally-assigned risk grades to estimate the capability of borrowers to repay the contractual obligations of their loan agreements as scheduled or at all. The Company’s internal risk grade system is based on experiences with similarly graded loans. Credit risk grades are updated at least quarterly as additional information becomes available, at which time management analyzes the resulting scores to track loan performance. The Company’s internally assigned risk grades are as follows: • Pass: • Other Assets Especially Mentioned (OAEM): • Substandard: • Doubtful: • Loss: The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated: Credit Quality Information As of September 30, 2021 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 116,296 $ - $ 170 $ - $ 116,466 Commercial - owner occupied 182,515 832 2,119 - 185,466 Commercial - non-owner occupied 177,119 521 732 - 178,372 Multifamily 20,563 - - - 20,563 Construction 61,613 127 999 - 62,739 Second mortgages 8,710 - - - 8,710 Equity lines of credit 49,894 - - - 49,894 Total mortgage loans on real estate $ 616,710 $ 1,480 $ 4,020 $ - $ 622,210 Commercial and industrial loans 91,156 13 255 - 91,424 Consumer automobile loans 84,360 - 237 - 84,597 Other consumer loans 34,786 - - - 34,786 Other 7,134 - - - 7,134 Total $ 834,146 $ 1,493 $ 4,512 $ - $ 840,151 Credit Quality Information As of December 31, 2020 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 122,621 $ - $ 179 $ - $ 122,800 Commercial - owner occupied 148,738 2,462 2,755 - 153,955 Commercial - non-owner occupied 162,148 748 - - 162,896 Multifamily 22,812 - - - 22,812 Construction 42,734 998 - - 43,732 Second mortgages 11,178 - - - 11,178 Equity lines of credit 50,746 - - - 50,746 Total mortgage loans on real estate $ 560,977 $ 4,208 $ 2,934 $ - $ 568,119 Commercial and industrial loans 141,391 355 - - 141,746 Consumer automobile loans 79,997 - 393 - 80,390 Other consumer loans 37,978 - - - 37,978 Other 8,067 - - - 8,067 Total $ 828,410 $ 4,563 $ 3,327 $ - $ 836,300 AGE ANALYSIS OF PAST DUE LOANS BY CLASS All classes of loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Interest and fees continue to accrue on past due loans until the date the loan is placed in nonaccrual status, if applicable. The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection. Age Analysis of Past Due Loans as of September 30, 2021 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing PCI Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 74 $ 29 $ - $ - $ 238 $ 116,125 $ 116,466 Commercial - owner occupied - - - - - 185,466 185,466 Commercial - non-owner occupied 354 - - - 183 177,835 178,372 Multifamily - - - - - 20,563 20,563 Construction - - - - - 62,739 62,739 Second mortgages 1 - - - - 8,709 8,710 Equity lines of credit - - - - - 49,894 49,894 Total mortgage loans on real estate $ 429 $ 29 $ - $ - $ 421 $ 621,331 $ 622,210 Commercial and industrial loans 141 - - - - 91,283 91,424 Consumer automobile loans 771 126 264 - 3 83,433 84,597 Other consumer loans 399 331 667 - - 33,389 34,786 Other 27 1 6 - - 7,100 7,134 Total $ 1,767 $ 487 $ 937 $ - $ 424 $ 836,536 $ 840,151 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. In the table above, the past due totals include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.1 milion at September 30, 2021. Age Analysis of Past Due Loans as of December 31, 2020 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing PCI Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 478 $ 164 $ - $ - $ 311 $ 121,847 $ 122,800 Commercial - owner occupied - - - - 903 153,052 153,955 Commercial - non-owner occupied - - - - - 162,896 162,896 Multifamily - - - - - 22,812 22,812 Construction - 88 - - - 43,644 43,732 Second mortgages 41 - - - - 11,137 11,178 Equity lines of credit - - - - - 50,746 50,746 Total mortgage loans on real estate $ 519 $ 252 $ - $ - $ 1,214 $ 566,134 $ 568,119 Commercial and industrial loans 753 - - - - 140,993 141,746 Consumer automobile loans 1,159 190 196 - - 78,845 80,390 Other consumer loans 1,120 555 548 - - 35,755 37,978 Other 24 3 - - - 8,040 8,067 Total $ 3,575 $ 1,000 $ 744 $ - $ 1,214 $ 829,767 $ 836,300 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. In the table above, the past due totals include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.2 million at December 31, 2020. Although the portions of the student loan portfolios that are 90 days or more past due would normally be considered impaired, the Company does not include these loans in its impairment analysis. Because the federal government has provided guarantees of repayment of these student loans in an amount ranging from 97% to 98% of the total principal and interest of the loans as of September 30, 2021, management does not expect significant increases in delinquencies of these loans to have a material effect on the Company. Under the CARES Act, borrowers who were making payments as required and were not considered past due prior to becoming affected by COVID-19 and then received payment accommodations as a result of the effects of COVID-19 generally would not be reported as past due. If the Company agreed to a payment deferral for a borrower under the CARES Act, this may result in no contractual payments being past due, and the loans are not considered past due during the period of the deferral. NONACCRUAL LOANS The Company generally places commercial and industrial loans (including construction loans and commercial loans secured and not secured by real estate) in nonaccrual status when the full and timely collection of interest or principal becomes uncertain, part of the principal balance has been charged off and no restructuring has occurred or the loan reaches 90 days past due, unless the credit is well-secured and in the process of collection. Under regulatory rules, consumer loans, which are loans to individuals for household, family and other personal expenditures, and consumer loans secured by real estate (including residential 1 - 4 family mortgages, second mortgages, and equity lines of credit) are not required to be placed in nonaccrual status. Although consumer loans and consumer loans secured by real estate are not required to be placed in nonaccrual status, the Company may elect to place these loans in nonaccrual status, if necessary to avoid a material overstatement of interest income. Generally, consumer loans secured by real estate are placed in nonaccrual status only when payments are 120 days past due. Generally, consumer loans not secured by real estate are placed in nonaccrual status only when part of the principal has been charged off. If a charge-off has not occurred sooner for other reasons, a consumer loan not secured by real estate will generally be placed in nonaccrual status when payments are 120 days past due. These loans are charged off or written down to the net realizable value of the collateral when deemed uncollectible, when classified as a “loss,” when repayment is unreasonably protracted, when bankruptcy has been initiated, or when the loan is 120 days or more past due unless the credit is well-secured and in the process of collection. When management places a loan in nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and the loan is accounted for by the cost recovery method, until it qualifies for return to accrual status or is charged off. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months. The following table presents loans in nonaccrual status by class of loan as of the dates indicated: Nonaccrual Loans by Class (dollars in thousands) September 30, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 238 $ 311 Commercial - owner occupied - 903 Commercial - non-owner occupied 183 - Total mortgage loans on real estate $ 421 $ 1,214 Consumer loans 3 - Total $ 424 $ 1,214 The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented: Nine Months Ended September 30, (dollars in thousand) 2021 2020 Interest income that would have been recorded under original loan terms $ 8 $ 145 Actual interest income recorded for the period 2 34 Reduction in interest income on nonaccrual loans $ 6 $ 111 TROUBLED DEBT RESTRUCTURINGS The Company’s loan portfolio includes certain loans that have been modified in a TDR, where economic concessions have been granted to borrowers who are experiencing financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The Company defines a TDR as nonperforming if the TDR is in nonaccrual status or is 90 days or more past due and still accruing interest at the report date. When the Company modifies a loan, management evaluates any possible impairment as stated in the impaired loan section below. There were no new TDRs in the nine months ended September 30, 2021 and one new TDR in the nine months ended September 30, 2020. At September 30, 2021 and 2020, the Company had no outstanding commitments to disburse additional funds on any TDR. The Company had no loans secured by residential 1 - 4 family real estate in the process of foreclosure at September 30, 2021 and 2020. In the three and nine months ended September 30, 2021 and 2020, there were no defaulting TDRs where the default occurred within twelve months of restructuring. The Company considers a TDR in default when any of the following occurs: the loan, as restructured, becomes 90 days or more past due; the loan is moved to nonaccrual status following the restructure; the loan is restructured again under terms that would qualify it as a TDR if it were not already so classified; or any portion of the loan is charged off. All TDRs are factored into the determination of the allowance for loan losses and included in the impaired loan analysis, as discussed below. IMPAIRED LOANS A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans and loans modified in a TDR. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole or remaining source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs, when foreclosure is probable, instead of the discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through a specific allocation in the allowance or a charge-off to the allowance. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is in nonaccrual status, all payments are applied to principal under the cost-recovery method. For financial statement purposes, the recorded investment in the loan is the actual principal balance reduced by partial charge-offs and payments that would otherwise have been applied to interest. When reporting information on these loans to the applicable customers, the unpaid principal balance is reported as if these partial charge-offs did not occur and as if payments were applied to principal and interest under the original terms of the loan agreements. Therefore, the unpaid principal balance reported to the customer would be higher than the recorded investment in the loan for financial statement purposes. The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans, exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances. Impaired Loans by Class As of September 30, 2021 For the Nine Months Ended September 30, 2021 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 403 $ 67 $ 306 $ 33 $ 382 $ 6 Commercial 504 250 425 13 636 1 Construction 81 - 80 - 82 3 Second mortgages 129 - 127 3 129 4 Total mortgage loans on real estate 1,117 317 938 49 1,229 14 Commercial and industrial loans 3 1 1 - 2 - Other consumer loans 11 12 - - 10 - Total $ 1,131 $ 330 $ 939 $ 49 $ 1,241 $ 14 Impaired Loans by Class As of December 31, 2020 For the Year Ended December 31, 2020 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 474 $ 366 $ 87 $ 1 $ 458 $ 10 Commercial 3,490 1,306 121 1 2,559 46 Construction 83 - 83 - 84 5 Second mortgages 133 - 133 9 134 5 Total mortgage loans on real estate 4,180 1,672 424 11 3,235 66 Commercial and industrial loans 6 6 - - 7 - Other consumer loans 14 14 - - 15 1 Total $ 4,200 $ 1,692 $ 424 $ 11 $ 3,257 $ 67 ALLOWANCE FOR LOAN LOSSES Management has an established methodology to determine the adequacy of the allowance for loan losses that assesses the risks and probable losses inherent in the loan portfolio. The Company segments the loan portfolio into categories as defined by Schedule RC-C of the Federal Financial Institutions Examination Council Consolidated Reports of Condition and Income Form 041 (Call Report). Loans are segmented into the following pools: commercial, real estate-construction, real estate-mortgage, consumer and other loans. The Company also sub-segments the real estate-mortgage segment into six classes: residential 1-4 family, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multifamily, second mortgages and equity lines of credit. The Company uses an internally developed risk evaluation model in the estimation of the credit risk process. The model and assumptions used to determine the allowance are independently validated and reviewed to ensure that the theoretical foundation, assumptions, data integrity, computational processes and reporting practices are appropriate and properly documented. Each portfolio segment has risk characteristics as follows: • Commercial and industrial: • Real estate-construction: • Real estate-mortgage: • Consumer loans: • Other loans: Each segment of the portfolio is pooled by risk grade or by days past due. Consumer loans not secured by real estate and made to individuals for household, family and other personal expenditures are segmented into pools based on days past due, while all other loans, including loans to consumers that are secured by real estate, are segmented by risk grades. A historical loss percentage is then calculated by migration analysis and applied to each pool. The migration analysis applied to all pools is able to track the risk grading and historical performance of individual loans throughout a number of periods set by management, which provides management with information regarding trends (or migrations) in a particular loan segment. At September 30, 2021 and December 31, 2020 management used eight twelve-quarter migration periods. Management also provides an allocated component of the allowance for loans that are specifically identified as impaired, and are individually analyzed for impairment. An allocated allowance is established when the present value of expected future cash flows from the impaired loan (or the collateral value or observable market price of the impaired loan) is lower than the carrying value of that loan. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. These additional qualitative factors include: economic conditions (including uncertainties associated with the COVID-19 pandemic), trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal and regulatory environment. Given the timing of the outbreak in the United States of the COVID-19 pandemic combined with government stimulus actions for both individuals and small businesses, management does not believe that the Company’s performance in relation to credit quality during 2020 or the first three quarters of 2021 was significantly impacted. The COVID-19 pandemic represents an unprecedented challenge to the global economy in general and the financial services sector in particular. However, there is still significant uncertainty regarding the overall length of the pandemic and the aggregate impact that it will have on global and regional economies, including uncertainties regarding supply chain disruptions, inflationary pressures, and any potential effects of governmental actions taken in response to the pandemic. With so much uncertainty, it is impossible for the Company to accurately predict the impact that the pandemic will have on the Company’s primary market and the overall extent to which it will affect the Company’s financial condition and results of operations. Based on capital levels, stress testing indications, prudent underwriting policies, watch credit processes, and loan concentration diversification, the Company currently expects to be able to manage the economic risks and uncertainties associated with the pandemic which may include additional provision for loan losses. Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALLL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either purchased credit-impaired or purchased performing. Purchased performing loans are accounted for under ASC 310-20, Receivables – Nonrefundable Fees and Other Costs ALLOWANCE FOR LOAN LOSSES BY SEGMENT The total allowance reflects management’s estimate of losses inherent in the loan portfolio at the balance sheet date. The Company considers the allowance for loan losses of $9.7 million adequate to cover probable loan losses inherent in the loan portfolio at September 30, 2021. The following tables present, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS For the Nine Months ended September 30, 2021 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Charge-offs (24 ) - (1 ) - (664 ) (216 ) - (905 ) Recoveries 33 - 66 44 310 85 - 538 Provision for loan losses 47 152 (341 ) 239 373 173 (133 ) 510 Ending Balance $ 706 $ 491 $ 2,284 $ 4,717 $ 1,321 $ 165 $ - $ 9,684 Individually evaluated for impairment $ - $ - $ 36 $ 13 $ - $ - $ - $ 49 Collectively evaluated for impairment 706 491 2,248 4,704 1,321 165 - 9,635 Ending Balance $ 706 $ 491 $ 2,284 $ 4,717 $ 1,321 $ 165 $ - $ 9,684 Loans Balances: Individually evaluated for impairment 2 80 500 675 12 - - 1,269 Collectively evaluated for impairment 91,422 62,659 195,133 363,163 119,371 7,134 - 838,882 Ending Balance $ 91,424 $ 62,739 $ 195,633 $ 363,838 $ 119,383 $ 7,134 $ - $ 840,151 (1) The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. For the Year ended December 31, 2020 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 1,244 $ 258 $ 2,505 $ 3,663 $ 1,694 $ 296 $ - $ 9,660 Charge-offs (25 ) - (149 ) (654 ) (822 ) (355 ) - (2,005 ) Recoveries 47 10 69 317 377 66 - 886 Provision for loan losses (616 ) 71 135 1,108 53 116 133 1,000 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Individually evaluated for impairment $ - $ - $ 10 $ 1 $ - $ - $ - $ 11 Collectively evaluated for impairment 650 339 2,550 4,433 1,302 123 133 9,530 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Loans Balances: Individually evaluated for impairment 6 83 586 1,427 14 - - 2,116 Collectively evaluated for impairment 141,740 43,649 206,950 315,424 118,354 8,067 - 834,184 Ending Balance $ 141,746 $ 43,732 $ 207,536 $ 316,851 $ 118,368 $ 8,067 $ - $ 836,300 (1) The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. |
Leases
Leases | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Leases | Note 4. Leases On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the optional transition method provided by ASU No. 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The right-of-use asset and lease liability are included in other assets other liabilities Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases: (dollars in thousands) September 30, 2021 Lease liabilities $ 1,121 Right-of-use assets $ 1,098 Weighted average remaining lease term 3.81 years Weighted average discount rate 1.71 % Three Months Ended September 30, Nine Months Ended September 30, Lease cost 2021 2020 2021 2020 Operating lease cost $ 81 $ 99 $ 266 $ 278 Total lease cost $ 81 $ 99 $ 266 $ 278 Cash paid for amounts included in the measurement of lease liabilities $ 82 $ 97 $ 269 $ 274 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: Lease payments due As of September 30, 2021 Three months ending December 31, 2021 $ 83 Twelve months ending December 31, 2022 339 Twelve months ending December 31, 2023 248 Twelve months ending December 31, 2024 240 Thereafter 309 Total undiscounted cash flows $ 1,219 Discount (98 ) Lease liabilities $ 1,121 |
Low-Income Housing Tax Credits
Low-Income Housing Tax Credits | 9 Months Ended |
Sep. 30, 2021 | |
Low-Income Housing Tax Credits [Abstract] | |
Low-Income Housing Tax Credits | Note 5. Low-Income Housing Tax Credits The Company was invested in four separate housing equity funds at both September 30, 2021 and December 31, 2020. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia; develop and implement strategies to maintain projects as low-income housing; deliver Federal Low Income Housing Credits to investors; allocate tax losses and other possible tax benefits to investors; and preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were $2.1 million and $2.3 million at September 30, 2021 and December 31, 2020, respectively. The expected terms of these investments and the related tax benefits run through 2033. Total projected tax credits to be received for 2021 are $361 thousand, which is based on the most recent quarterly estimates received from the funds. There were no additional capital calls expected for the funds at September 30, 2021. Additional capital calls expected for the funds totaled $18 thousand at December 31, 2020 and are recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheet. The table below summarizes the tax credits and other tax benefits recognized by the Company related to these investments during the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Tax credits and other benefits Amortization of operating losses $ 51 $ 45 $ 151 $ 136 Tax benefit of operating losses* 11 10 32 29 Tax credits 89 105 272 314 Total tax benefits $ 100 $ 115 $ 304 $ 343 * Computed using a 21% tax rate. |
Borrowings
Borrowings | 9 Months Ended |
Sep. 30, 2021 | |
Borrowings [Abstract] | |
Borrowings | Note 6. Borrowings The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within one The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At September 30, 2021 and December 31, 2020, the remaining credit available from these lines totaled $115.0 million and $100.0 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $380.3 million and $374.7 as of September 30, 2021 and December 31, 2020, respectively. SHORT-TERM BORROWINGS The following table presents total short-term borrowings as of the dates indicated: (dollar in thousands) September 30, 2021 December 31, 2020 Overnight repurchase agreements $ 4,496 $ 6,619 Total short-term borrowings $ 4,496 $ 6,619 Maximum month-end outstanding balance $ 12,239 $ 9,080 Average outstanding balance during the period $ 8,116 $ 21,092 Average interest rate (year-to-date) 0.10 % 0.19 % Average interest rate at end of period 0.10 % 0.10 % LONG-TERM BORROWINGS At September 30, 2021 the Company had borrowings under the FRB’s PPPLF of $898 thousand. These borrowings are fully collateralized by PPP loans and will mature in concert with the underlying collateral, all of which will mature within 24 months of origination. No new advances were made pursuant to the PPPLF as of the program’s expiration on July 30, 2021. The Company also obtained a loan maturing on April 1, 2023 from a correspondent bank during the second quarter of 2018 to provide partial funding for the Citizens National Bank (Citizens) acquisition. The terms of the loan included a LIBOR based interest rate that adjusts monthly and quarterly principal curtailments. At December 31, 2020, the outstanding balance was $1.4 million, and the then-current interest rate was 2.61%. The Company elected to pay the loan in full during the first quarter of 2021. On July 14, 2021, the Company completed the issuance of $29.4 million, net of issuance costs, or $30.0 million in aggregate principal amount of subordinated notes (the Notes) due in 2031 |
Commitments and Contingencies
Commitments and Contingencies | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | Note 7. Commitments and Contingencies CREDIT-RELATED FINANCIAL INSTRUMENTS The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business in order to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company's exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making such commitments as it does for on-balance-sheet instruments. The following financial instruments whose contract amounts represent credit risk were outstanding at September 30, 2021 and December 31, 2020: September 30, December 31, (dollars in thousands) 2021 2020 Commitments to extend credit: Home equity lines of credit $ 70,168 $ 66,999 Commercial real estate, construction and development loans committed but not funded 48,386 20,258 Other lines of credit (principally commercial) 66,671 64,329 Total $ 185,225 $ 151,586 Letters of credit $ 3,568 $ 4,841 |
Share-Based Compensation
Share-Based Compensation | 9 Months Ended |
Sep. 30, 2021 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | Note 8. Share-Based Compensation The Company has adopted an employee stock purchase plan and offers share-based compensation through its equity compensation plan. Share-based compensation arrangements may include stock options, restricted and unrestricted stock awards, restricted stock units, performance units and stock appreciation rights. Accounting standards require all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period. The Company accounts for forfeitures during the vesting period as they occur. The 2016 Incentive Stock Plan (the Incentive Stock Plan) permits the issuance of up to 300,000 shares of common stock for awards to key employees and non-employee directors of the Company and its subsidiaries in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and performance units. As of September 30, 2021 only restricted stock has been granted under the Incentive Stock Plan. Restricted stock activity for the nine months ended September 30, 2021 is summarized below: Shares Weighted Average Grant Date Fair Value Nonvested, January 1, 2021 29,576 $ 18.46 Issued 18,048 22.35 Vested (8,521 ) 17.50 Forfeited - - Nonvested, September 30, 2021 39,103 $ 20.46 The weighted average period over which nonvested awards are expected to be recognized in compensation expense is 1.52 years. The fair value of restricted stock granted during the nine months ended September 30, 2021 and 2020 was $403 thousand and $298 thousand, respectively. The remaining unrecognized compensation expense for nonvested restricted stock shares totaled $411 thousand as of September 30, 2021 and $314 thousand as of September 30, 2020. Stock-based compensation expense was $84 thousand and $56 thousand for the three months ended September 30, 2021 and 2020, respectively, and $214 thousand and $199 thousand for the nine months ended September 30, 2021 and 2020, respectively. Under the Company's Employee Stock Purchase Plan (ESPP), substantially all employees of the Company and its subsidiaries can authorize a specific payroll deduction from their base compensation for the periodic purchase of the Company's common stock. Shares of stock are issued quarterly at a discount to the market price of the Company's stock on the day of purchase, which can range from 0-15% and was set at 5% for 2020 and for the first nine months of 2021. 3,775 shares were purchased under the ESPP during the nine months ended September 30, 2021. At September 30, 2021, the Company had 228,676 remaining shares reserved for issuance under the ESPP. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Share | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity and Earnings per Share [Abstract] | |
Stockholders' Equity and Earnings per Share | Note 9. Stockholders’ Equity and Earnings per Share STOCKHOLDERS’ EQUITY – Accumulated Other Comprehensive Income (Loss) The following table presents information on amounts reclassified out of accumulated other comprehensive income (loss), by category, during the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item on (dollars in thousands) 2021 2020 2021 2020 Available-for-sale securities Realized gains on sales of securities $ - $ 1 $ - $ 185 Gain on sale of available-for-sale securities, net Tax effect - - - 39 Income tax expense $ - $ 1 $ - $ 146 The following tables present the changes in accumulated other comprehensive income (loss), by category, net of tax, for the periods indicated: (dollars in thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Accumulated Other Comprehensive Income Nine September 30 2021 Balance at beginning of period $ 4,069 $ 4,069 Net other comprehensive loss (1,495 ) (1,495 ) Balance at end of period $ 2,574 $ 2,574 Nine September 30 2020 Balance at beginning of period $ (79 ) $ (79 ) Net other comprehensive income 3,883 3,883 Balance at end of period $ 3,804 $ 3,804 (dollars in thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Accumulated Other Comprehensive Income Three Months Ended September 30 2021 Balance at beginning of period $ 3,071 $ 3,071 Net other comprehensive loss (497 ) (497 ) Balance at end of period $ 2,574 $ 2,574 Three Months Ended September 30 2020 Balance at beginning of period $ 3,352 $ 3,352 Net other comprehensive income 452 452 Balance at end of period $ 3,804 $ 3,804 The following tables present the change in each component of accumulated other comprehensive income (loss) on a pre-tax and after-tax basis for the periods indicated. Three Months Ended September 30, 2021 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (629 ) $ (133 ) $ (497 ) Total change in accumulated other comprehensive income, net $ (629 ) $ (133 ) $ (497 ) Three Months Ended September 30, 2020 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 573 $ 120 $ 453 Reclassification adjustment for gains recognized in income (1 ) - (1 ) Total change in accumulated other comprehensive income, net $ 572 $ 120 $ 452 Nine Months Ended September 30, 2021 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (1,892 ) $ (397 ) $ (1,495 ) Total change in accumulated other comprehensive income, net $ (1,892 ) $ (397 ) $ (1,495 ) Nine Months Ended September 30, 2020 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 5,100 $ 1,071 $ 4,029 Reclassification adjustment for gains recognized in income (185 ) (39 ) (146 ) Total change in accumulated other comprehensive income, net $ 4,915 $ 1,032 $ 3,883 EARNINGS PER COMMON SHARE Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to the employee stock purchase plan. The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2021 and 2020: (dollars in thousands except per share data) Net Income Available to Common Shareholders (Numerator) Weighted Average Common Shares (Denominator) Per Share Three Months Ended September 30 2021 Net income, basic $ 1,908 5,245 $ 0.36 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 1,908 5,245 $ 0.36 Three Months Ended September 30 Net income, basic $ 1,100 5,221 $ 0.21 Potentially dilutive common shares - employee stock purchase program - 1 - Diluted $ 1,100 5,222 $ 0.21 Nine September 30 2021 Net income, basic $ 6,762 5,236 $ 1.29 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 6,762 5,236 $ 1.29 Nine September 30 2020 Net income, basic $ 4,844 5,214 $ 0.93 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 4,844 5,214 $ 0.93 The Company had no antidilutive shares outstanding in the nine months ended September 30, 2021 and 2020, respectively. Nonvested restricted common shares, which carry all rights and privileges of a common share with respect to the stock, including the right to vote, were included in the basic and diluted per common share calculations. |
Fair Value Measurements
Fair Value Measurements | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | Note 10. Fair Value Measurements The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” topics of FASB ASU No. 2010-06, FASB ASU No. 2011-04, and FASB ASU No. 2016-01, the fair value of a financial instrument is the price that would be received in the sale of an asset or transfer of a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous market for the asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value can be a reasonable point within a range that is most representative of fair value under current market conditions. In estimating the fair value of assets and liabilities, the Company relies mainly on two sources. The first source is the Company’s bond accounting service provider, which uses a model to determine the fair value of securities. Securities are priced based on an evaluation of observable market data, including benchmark yield curves, reported trades, broker/dealer quotes, and issuer spreads. Pricing is also impacted by credit information about the issuer, perceived market movements, and current news events impacting the individual sectors. The second source is a third party vendor the Company utilizes to provide fair value exit pricing for loans and interest bearing deposits in accordance with guidance. In accordance with ASC 820, “Fair Value Measurements and Disclosures,” the Company groups its financial assets and financial liabilities generally measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. • Level 1: Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. • Level 2: Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. • Level 3: Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS Debt securities with readily determinable fair values that are classified as “available-for-sale” are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Currently, all of the Company’s available-for-sale securities are considered to be Level 2 securities. The following tables present the balances of certain assets measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurements at September 30, 2021 Using (dollars in thousands) Balance Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Available-for-sale securities U.S. Treasury securities $ 9,002 $ - $ 9,002 $ - Obligations of U.S. Government agencies 37,768 - 37,768 - Obligations of state and political subdivisions 52,821 - 52,821 - Mortgage-backed securities 85,913 - 85,913 - Money market investments 3,799 - 3,799 - Corporate bonds and other securities 23,137 - 23,137 - Total available-for-sale securities $ 212,440 $ - $ 212,440 $ - Fair Value Measurements at December 31, 2020 Using (dollars in thousands) Balance Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Available-for-sale securities U.S. Treasury securities $ 7,043 $ - $ 7,043 $ - Obligations of U.S. Government agencies 36,696 - 36,696 - Obligations of state and political subdivisions 45,995 - 45,995 - Mortgage-backed securities 73,501 - 73,501 - Money market investments 4,743 - 4,743 - Corporate bonds and other securities 18,431 - 18,431 - Total available-for-sale securities $ 186,409 $ - $ 186,409 $ - ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS Under certain circumstances, adjustments are made to the fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. Impaired loans A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts when due from the borrower in accordance with the contractual terms of the loan agreement. The measurement of fair value and loss associated with impaired loans can be based on the observable market price of the loan, the fair value of the collateral securing the loan, or the present value of the loan’s expected future cash flows , discounted at the loan’s effective interest rate. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable, with the vast majority of the collateral in real estate. The value of real estate collateral is determined utilizing an income, market, or cost valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company. In the case of loans with lower balances, the Company may obtain a real estate evaluation instead of an appraisal. Evaluations utilize many of the same techniques as appraisals, and are typically performed by independent appraisers. Once received, appraisals and evaluations are reviewed by trained staff independent of the lending function to verify consistency and reasonability. Appraisals and evaluations are based on significant unobservable inputs, including but not limited to: adjustments made to comparable properties, judgments about the condition of the subject property, the availability and suitability of comparable properties, capitalization rates, projected income of the subject or comparable properties, vacancy rates, projected depreciation rates, and the state of the local and regional economy. The Company may also elect to make additional reductions in the collateral value based on management’s best judgment, which represents another source of unobservable inputs. Because of the subjective nature of collateral valuation, impaired loans are considered Level 3. Impaired loans may be secured by collateral other than real estate. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level 3). If a loan is not collateral-dependent, its impairment may be measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate. Because the loan is discounted at its effective rate of interest, rather than at a market rate, the loan is not considered to be held at fair value and is not included in the tables below. Collateral-dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as part of the provision for loan losses on the Consolidated Statements of Income. Loans Held For Sale Loans held for sale are carried at the lower of cost or fair value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). Gains and losses on the sale of loans are reported on a separate line item on the Company’s Consolidated Statements of Income. The following table presents the assets carried in the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate rather than at a market rate. These loans are not carried in the consolidated balance sheets at fair value and, as such, are not included in the tables below. Carrying Value at September 30, 2021 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Loans Loans held for sale $ 5,740 $ - $ 5,740 $ - Carrying Value at December 31, 2020 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Loans Loans held for sale $ 14,413 $ - $ 14,413 $ - The Company did not have any Level 3 Fair Value Measurements at September 30, 2021 or December 31, 2020. The estimated fair values, and related carrying or notional amounts, of the Company's financial instruments as of the dates indicated are as follows: Fair Value Measurements at September 30, 2021 Using (dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 184,304 $ 184,304 $ - $ - Securities available-for-sale 212,440 - 212,440 - Restricted securities 1,034 - 1,034 - Loans held for sale 5,740 - 5,740 - Loans, net of allowances for loan losses 830,467 - - 831,464 Bank owned life insurance 29,012 - 29,012 - Accrued interest receivable 3,308 - 3,308 - Liabilities Deposits $ 1,150,706 $ - $ 1,153,293 $ - Overnight repurchase agreements 4,496 - 4,496 - Federal Reserve Bank borrowings 898 - 898 - Long term borrowings 29,374 - 29,424 - Accrued interest payable 456 - 456 - Fair Value Measurements at December 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 120,437 $ 120,437 $ - $ - Securities available-for-sale 186,409 - 186,409 - Restricted securities 1,367 - 1,367 - Loans held for sale 14,413 - 14,413 - Loans, net of allowances for loan losses 826,759 - - 826,083 Bank owned life insurance 28,386 - 28,386 - Accrued interest receivable 3,613 - 3,613 - Liabilities Deposits $ 1,067,236 $ - $ 1,070,236 $ - Overnight repurchase agreements 6,619 - 6,619 - Federal Reserve Bank borrowings 28,550 - 28,550 - Other borrowings 1,350 - 1,350 - Accrued interest payable 384 - 384 - |
Segment Reporting
Segment Reporting | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 11. Segment Reporting The Company operates in a decentralized fashion in three principal business segments: The Old Point National Bank of Phoebus (the Bank), Old Point Trust & Financial Services, N.A. (Trust), and the Company as a separate segment (for purposes of this Note, the Parent). Revenues from the Bank’s operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust’s operating revenues consist principally of income from fiduciary and asset management fees. The Parent’s revenues are mainly fees and dividends received from the Bank and Trust companies. The Company has no other segments. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies. Information about reportable segments, and reconciliation of such information to the consolidated financial statements as of and for the three and nine months ended September 30, 2021 and 2020 follows: Three Months Ended September 30, 2021 (dollars in thousands) Bank Trust Parent Eliminations Consolidated Revenues Interest and dividend income $ 10,809 $ 6 $ 2,281 $ (2,281 ) $ 10,815 Income from fiduciary activities - 1,032 - - 1,032 Other income 2,341 249 50 (66 ) 2,574 Total operating income 13,150 1,287 2,331 (2,347 ) 14,421 Expenses Interest expense 688 - 251 - 939 Provision for loan losses 360 - - - 360 Salaries and employee benefits 5,644 746 168 - 6,558 Other expenses 4,077 257 102 (66 ) 4,370 Total operating expenses 10,769 1,003 521 (66 ) 12,227 Income before taxes 2,381 284 1,810 (2,281 ) 2,194 Income tax expense (benefit) 325 59 (98 ) - 286 Net income $ 2,056 $ 225 $ 1,908 $ (2,281 ) $ 1,908 Capital expenditures $ 370 $ - $ - $ - $ 370 Total assets $ 1,304,291 $ 7,222 $ 150,442 $ (150,329 ) $ 1,311,626 Three Months Ended September 30, 2020 (dollars in thousands) Bank Trust Parent Eliminations Consolidated Revenues Interest and dividend income $ 9,732 $ 6 $ 1,244 $ (1,245 ) $ 9,737 Income from fiduciary activities - 955 - - 955 Other income 2,483 234 50 (65 ) 2,702 Total operating income 12,215 1,195 1,294 (1,310 ) 13,394 Expenses Interest expense 1,258 - 11 - 1,269 Provision for loan losses 300 - - - 300 Salaries and employee benefits 5,746 760 154 - 6,660 Other expenses 3,752 249 68 (65 ) 4,004 Total operating expenses 11,056 1,009 233 (65 ) 12,233 Income before taxes 1,159 186 1,061 (1,245 ) 1,161 Income tax expense (benefit) 61 39 (39 ) - 61 Net income $ 1,098 $ 147 $ 1,100 $ (1,245 ) $ 1,100 Capital expenditures $ 86 $ 10 $ - $ - $ 96 Total assets $ 1,249,144 $ 6,961 $ 118,423 $ (118,435 ) $ 1,256,093 Nine Months Ended September 30, 2021 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 31,635 $ 17 $ 7,458 $ (7,458 ) $ 31,652 Income from fiduciary activities - 3,110 - - 3,110 Other income 7,426 788 150 (196 ) 8,168 Total operating income 39,061 3,915 7,608 (7,654 ) 42,930 Expenses Interest expense 2,258 - 256 - 2,514 Provision for loan losses 510 - - - 510 Salaries and employee benefits 16,263 2,253 496 - 19,012 Other expenses 12,139 788 278 (196 ) 13,009 Total operating expenses 31,170 3,041 1,030 (196 ) 35,045 Income before taxes 7,891 874 6,578 (7,458 ) 7,885 Income tax expense (benefit) 1,123 184 (184 ) - 1,123 Net income $ 6,768 $ 690 $ 6,762 $ (7,458 ) $ 6,762 Capital expenditures $ 1,089 $ 41 $ - $ - $ 1,130 Total assets $ 1,304,291 $ 7,222 $ 150,442 $ (150,329 ) $ 1,311,626 Nine Months Ended September 30, 2020 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 29,532 $ 40 $ 5,362 $ (5,363 ) $ 29,571 Income from fiduciary activities - 2,881 - - 2,881 Other income 7,289 769 150 (196 ) 8,012 Total operating income 36,821 3,690 5,512 (5,559 ) 40,464 Expenses Interest expense 4,167 - 45 - 4,212 Provision for loan losses 900 - - - 900 Salaries and employee benefits 15,305 2,315 498 - 18,118 Other expenses 10,886 827 263 (196 ) 11,780 Total operating expenses 31,258 3,142 806 (196 ) 35,010 Income before taxes 5,563 548 4,706 (5,363 ) 5,454 Income tax expense (benefit) 631 117 (138 ) - 610 Net income $ 4,932 $ 431 $ 4,844 $ (5,363 ) $ 4,844 Capital expenditures $ 742 $ 16 $ - $ - $ 758 Total assets $ 1,249,144 $ 6,961 $ 118,423 $ (118,435 ) $ 1,256,093 The accounting policies of the segments are the same as those described in the summary of significant accounting policies reported in the Company’s 2020 Annual Report on Form 10-K. The Company evaluates performance based on profit or loss from operations before income taxes, not including nonrecurring gains or losses. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 9 Months Ended |
Sep. 30, 2021 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of the Company and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). All significant intercompany balances and transactions have been eliminated in consolidation. |
NATURE OF OPERATIONS | NATURE OF OPERATIONS Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries, the Bank and Trust. The Bank serves individual and commercial customers, the majority of which are in Hampton Roads, Virginia. As of September 30, 2021, the Bank had 16 branch offices. The Bank offers a full range of deposit and loan products to its retail and commercial customers, including mortgage loan products offered through Old Point Mortgage. A full array of insurance products is also offered through Old Point Insurance, LLC in partnership with Morgan Marrow Company. Trust offers a full range of services for individuals and businesses. Products and services include retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax services and investment management services. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11, ASU No. 2020-02, and ASU No. 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the U.S. Securities and Exchange Commission (SEC) and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company has formed a committee to oversee the adoption of the new standard, has engaged a third party to assist with implementation, has performed data fit gap and loss driver analyses, intends to run parallel models beginning in 2022, and is continuing to evaluate the impact that ASU No. 2016-13 will have on its consolidated financial statements. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) SAB updated portions of SEC interpretative guidance to align with FASB ASC “Financial Instruments – Credit Losses.” It covers topics including measuring current expected credit losses; development, governance, and documentation of a systematic methodology; documenting the results of a systematic methodology; and validating a systematic methodology. Other accounting standards that have been adopted by the Company or issued by the FASB or other standards-setting bodies have not or are not currently expected to have a material effect on the Company’s financial position, results of operations or cash flows. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Securities [Abstract] | |
Amortized Cost and Fair Value, with Gross Unrealized Gains and Losses of Securities Available-for-Sale | Amortized costs and fair values, with gross unrealized gains and losses, of securities available-for-sale as of the dates indicated are as follows: September 30, 2021 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value U.S. Treasury securities $ 9,050 $ - $ (48 ) $ 9,002 Obligations of U.S. Government agencies 37,614 212 (58 ) 37,768 Obligations of state and political subdivisions 51,128 1,954 (261 ) 52,821 Mortgage-backed securities 84,648 1,693 (428 ) 85,913 Money market investments 3,799 - - 3,799 Corporate bonds and other securities 22,942 280 (85 ) 23,137 $ 209,181 $ 4,139 $ (880 ) $ 212,440 December 31, 2020 (Dollars in thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value U.S. Treasury securities $ 6,980 $ 63 $ - $ 7,043 Obligations of U.S. Government agencies 36,858 35 (197 ) 36,696 Obligations of state and political subdivisions 43,517 2,478 - 45,995 Mortgage-backed securities 70,866 2,759 (124 ) 73,501 Money market investments 4,743 - - 4,743 Corporate bonds and other securities 18,295 158 (22 ) 18,431 $ 181,259 $ 5,493 $ (343 ) $ 186,409 |
Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities by contractual maturity are shown below: September 30, 2021 (Dollars in thousands) Amortized Cost Fair Value Due in one year or less $ 200 $ 200 Due after one year through five years 13,758 14,175 Due after five through ten years 52,437 53,514 Due after ten years 138,987 140,752 Other securities, restricted 3,799 3,799 $ 209,181 $ 212,440 |
Net Realized Gains and (Losses) on Sale of Investments | The following table summarizes the net realized gains and losses on the sale of investment securities during the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, (Dollars in thousands) 2021 2020 2021 2020 Securities Available-for-sale Realized gains on sales of securities $ - $ 1 $ - $ 186 Realized losses on sales of securities - - - (1 ) Net realized gain $ - $ 1 $ - $ 185 |
Available-for-Sale Securities, Continuous Unrealized Loss Position | The following tables show the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired as of September 30, 2021 and December 31, 2020, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position as of the dates indicated: September 30, 2021 Less than 12 months 12 months or more Total (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value U.S. Treasury securities $ 48 $ 9,002 $ - $ - $ 48 $ 9,002 Obligations of U.S. Government agencies 22 4,967 36 5,374 58 10,341 Obligations of state and political subdivisions 261 13,086 - - 261 13,086 Mortgage-backed securities 306 26,500 122 6,792 428 33,292 Corporate bonds and other securities 85 9,615 - - 85 9,615 Total securities available-for-sale $ 722 $ 63,170 $ 158 $ 12,166 $ 880 $ 75,336 December 31, 2020 Less than 12 months 12 months or more Total (Dollars in thousands) Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Gross Unrealized Losses Fair Value Obligations of U.S. Government agencies $ 8 $ 2,810 $ 189 $ 17,191 $ 197 $ 20,001 Mortgage-backed securities 118 14,291 6 1,285 124 15,576 Corporate bonds and other securities 22 5,977 - - 22 5,977 Total securities available-for-sale $ 148 $ 23,078 $ 195 $ 18,476 $ 343 $ 41,554 |
Loans and the Allowance for L_2
Loans and the Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Loans and the Allowance for Loan Losses [Abstract] | |
Outstanding Loans By Segment Type | The following is a summary of the balances in each class of the Company’s portfolio of loans held for investment as of the dates indicated: (dollars in thousands) September 30, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 116,466 $ 122,800 Commercial - owner occupied 185,466 153,955 Commercial - non-owner occupied 178,372 162,896 Multifamily 20,563 22,812 Construction 62,739 43,732 Second mortgages 8,710 11,178 Equity lines of credit 49,894 50,746 Total mortgage loans on real estate 622,210 568,119 Commercial and industrial loans 91,424 141,746 Consumer automobile loans 84,597 80,390 Other consumer loans 34,786 37,978 Other (1) 7,134 8,067 Total loans, net of deferred fees 840,151 836,300 Less: Allowance for loan losses 9,684 9,541 Loans, net of allowance and deferred fees (2) $ 830,467 $ 826,759 (1) Overdrawn accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $297 thousand and $271 thousand at September 30, 2021 and December 31, 2020, respectively. (2) Net deferred loan fees totaled $1.8 million and $2.1 million at September 30, 2021 and December 31, 2020, respectively. |
Acquired Loans | The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets as of September 30, 2021 and December 31, 2020 are as follows: (dollars in thousands) September 30, 2021 December 31, 2020 Outstanding principal balance $ 5,145 $ 8,671 Carrying amount 5,114 8,602 The Company did not have any outstanding principal balance or related carrying amount of purchased credit-impaired loans as of September 30, 2021 and December 31, 2020. The following table presents changes in the accretable yield on purchased credit-impaired loans, for which the Company applies FASB ASC 310-30, at September 30, 2021 and 2020: (dollars in thousands) September 30, 2021 September 30, 2020 Balance at January 1 $ - $ 72 Accretion - (29 ) Balance at end of period $ - $ 43 |
Credit Quality Information | The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated: Credit Quality Information As of September 30, 2021 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 116,296 $ - $ 170 $ - $ 116,466 Commercial - owner occupied 182,515 832 2,119 - 185,466 Commercial - non-owner occupied 177,119 521 732 - 178,372 Multifamily 20,563 - - - 20,563 Construction 61,613 127 999 - 62,739 Second mortgages 8,710 - - - 8,710 Equity lines of credit 49,894 - - - 49,894 Total mortgage loans on real estate $ 616,710 $ 1,480 $ 4,020 $ - $ 622,210 Commercial and industrial loans 91,156 13 255 - 91,424 Consumer automobile loans 84,360 - 237 - 84,597 Other consumer loans 34,786 - - - 34,786 Other 7,134 - - - 7,134 Total $ 834,146 $ 1,493 $ 4,512 $ - $ 840,151 Credit Quality Information As of December 31, 2020 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 122,621 $ - $ 179 $ - $ 122,800 Commercial - owner occupied 148,738 2,462 2,755 - 153,955 Commercial - non-owner occupied 162,148 748 - - 162,896 Multifamily 22,812 - - - 22,812 Construction 42,734 998 - - 43,732 Second mortgages 11,178 - - - 11,178 Equity lines of credit 50,746 - - - 50,746 Total mortgage loans on real estate $ 560,977 $ 4,208 $ 2,934 $ - $ 568,119 Commercial and industrial loans 141,391 355 - - 141,746 Consumer automobile loans 79,997 - 393 - 80,390 Other consumer loans 37,978 - - - 37,978 Other 8,067 - - - 8,067 Total $ 828,410 $ 4,563 $ 3,327 $ - $ 836,300 |
Past Due Loans | The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection. Age Analysis of Past Due Loans as of September 30, 2021 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing PCI Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 74 $ 29 $ - $ - $ 238 $ 116,125 $ 116,466 Commercial - owner occupied - - - - - 185,466 185,466 Commercial - non-owner occupied 354 - - - 183 177,835 178,372 Multifamily - - - - - 20,563 20,563 Construction - - - - - 62,739 62,739 Second mortgages 1 - - - - 8,709 8,710 Equity lines of credit - - - - - 49,894 49,894 Total mortgage loans on real estate $ 429 $ 29 $ - $ - $ 421 $ 621,331 $ 622,210 Commercial and industrial loans 141 - - - - 91,283 91,424 Consumer automobile loans 771 126 264 - 3 83,433 84,597 Other consumer loans 399 331 667 - - 33,389 34,786 Other 27 1 6 - - 7,100 7,134 Total $ 1,767 $ 487 $ 937 $ - $ 424 $ 836,536 $ 840,151 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. In the table above, the past due totals include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.1 milion at September 30, 2021. Age Analysis of Past Due Loans as of December 31, 2020 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing PCI Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 478 $ 164 $ - $ - $ 311 $ 121,847 $ 122,800 Commercial - owner occupied - - - - 903 153,052 153,955 Commercial - non-owner occupied - - - - - 162,896 162,896 Multifamily - - - - - 22,812 22,812 Construction - 88 - - - 43,644 43,732 Second mortgages 41 - - - - 11,137 11,178 Equity lines of credit - - - - - 50,746 50,746 Total mortgage loans on real estate $ 519 $ 252 $ - $ - $ 1,214 $ 566,134 $ 568,119 Commercial and industrial loans 753 - - - - 140,993 141,746 Consumer automobile loans 1,159 190 196 - - 78,845 80,390 Other consumer loans 1,120 555 548 - - 35,755 37,978 Other 24 3 - - - 8,040 8,067 Total $ 3,575 $ 1,000 $ 744 $ - $ 1,214 $ 829,767 $ 836,300 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. |
Nonaccrual Loans | The following table presents loans in nonaccrual status by class of loan as of the dates indicated: Nonaccrual Loans by Class (dollars in thousands) September 30, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 238 $ 311 Commercial - owner occupied - 903 Commercial - non-owner occupied 183 - Total mortgage loans on real estate $ 421 $ 1,214 Consumer loans 3 - Total $ 424 $ 1,214 |
Interest Income to be Earned Under Original Terms | The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented: Nine Months Ended September 30, (dollars in thousand) 2021 2020 Interest income that would have been recorded under original loan terms $ 8 $ 145 Actual interest income recorded for the period 2 34 Reduction in interest income on nonaccrual loans $ 6 $ 111 |
Impaired Loans by Class | The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans, exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances. Impaired Loans by Class As of September 30, 2021 For the Nine Months Ended September 30, 2021 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 403 $ 67 $ 306 $ 33 $ 382 $ 6 Commercial 504 250 425 13 636 1 Construction 81 - 80 - 82 3 Second mortgages 129 - 127 3 129 4 Total mortgage loans on real estate 1,117 317 938 49 1,229 14 Commercial and industrial loans 3 1 1 - 2 - Other consumer loans 11 12 - - 10 - Total $ 1,131 $ 330 $ 939 $ 49 $ 1,241 $ 14 Impaired Loans by Class As of December 31, 2020 For the Year Ended December 31, 2020 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 474 $ 366 $ 87 $ 1 $ 458 $ 10 Commercial 3,490 1,306 121 1 2,559 46 Construction 83 - 83 - 84 5 Second mortgages 133 - 133 9 134 5 Total mortgage loans on real estate 4,180 1,672 424 11 3,235 66 Commercial and industrial loans 6 6 - - 7 - Other consumer loans 14 14 - - 15 1 Total $ 4,200 $ 1,692 $ 424 $ 11 $ 3,257 $ 67 |
Allowance for Loan Losses by Segment | The following tables present, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS For the Nine Months ended September 30, 2021 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Charge-offs (24 ) - (1 ) - (664 ) (216 ) - (905 ) Recoveries 33 - 66 44 310 85 - 538 Provision for loan losses 47 152 (341 ) 239 373 173 (133 ) 510 Ending Balance $ 706 $ 491 $ 2,284 $ 4,717 $ 1,321 $ 165 $ - $ 9,684 Individually evaluated for impairment $ - $ - $ 36 $ 13 $ - $ - $ - $ 49 Collectively evaluated for impairment 706 491 2,248 4,704 1,321 165 - 9,635 Ending Balance $ 706 $ 491 $ 2,284 $ 4,717 $ 1,321 $ 165 $ - $ 9,684 Loans Balances: Individually evaluated for impairment 2 80 500 675 12 - - 1,269 Collectively evaluated for impairment 91,422 62,659 195,133 363,163 119,371 7,134 - 838,882 Ending Balance $ 91,424 $ 62,739 $ 195,633 $ 363,838 $ 119,383 $ 7,134 $ - $ 840,151 (1) The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. For the Year ended December 31, 2020 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 1,244 $ 258 $ 2,505 $ 3,663 $ 1,694 $ 296 $ - $ 9,660 Charge-offs (25 ) - (149 ) (654 ) (822 ) (355 ) - (2,005 ) Recoveries 47 10 69 317 377 66 - 886 Provision for loan losses (616 ) 71 135 1,108 53 116 133 1,000 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Individually evaluated for impairment $ - $ - $ 10 $ 1 $ - $ - $ - $ 11 Collectively evaluated for impairment 650 339 2,550 4,433 1,302 123 133 9,530 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Loans Balances: Individually evaluated for impairment 6 83 586 1,427 14 - - 2,116 Collectively evaluated for impairment 141,740 43,649 206,950 315,424 118,354 8,067 - 834,184 Ending Balance $ 141,746 $ 43,732 $ 207,536 $ 316,851 $ 118,368 $ 8,067 $ - $ 836,300 (1) The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Leases [Abstract] | |
Information about Leases | The following tables present information about the Company’s leases: (dollars in thousands) September 30, 2021 Lease liabilities $ 1,121 Right-of-use assets $ 1,098 Weighted average remaining lease term 3.81 years Weighted average discount rate 1.71 % |
Lease Cost | Three Months Ended September 30, Nine Months Ended September 30, Lease cost 2021 2020 2021 2020 Operating lease cost $ 81 $ 99 $ 266 $ 278 Total lease cost $ 81 $ 99 $ 266 $ 278 Cash paid for amounts included in the measurement of lease liabilities $ 82 $ 97 $ 269 $ 274 |
Maturity of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: Lease payments due As of September 30, 2021 Three months ending December 31, 2021 $ 83 Twelve months ending December 31, 2022 339 Twelve months ending December 31, 2023 248 Twelve months ending December 31, 2024 240 Thereafter 309 Total undiscounted cash flows $ 1,219 Discount (98 ) Lease liabilities $ 1,121 |
Low-Income Housing Tax Credits
Low-Income Housing Tax Credits (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Low-Income Housing Tax Credits [Abstract] | |
Tax Credits and Other Tax Benefits Recognized Related to Investments | The table below summarizes the tax credits and other tax benefits recognized by the Company related to these investments during the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, 2021 2020 2021 2020 Tax credits and other benefits Amortization of operating losses $ 51 $ 45 $ 151 $ 136 Tax benefit of operating losses* 11 10 32 29 Tax credits 89 105 272 314 Total tax benefits $ 100 $ 115 $ 304 $ 343 * Computed using a 21% tax rate. |
Borrowings (Tables)
Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Borrowings [Abstract] | |
Short-term Borrowings | The following table presents total short-term borrowings as of the dates indicated: (dollar in thousands) September 30, 2021 December 31, 2020 Overnight repurchase agreements $ 4,496 $ 6,619 Total short-term borrowings $ 4,496 $ 6,619 Maximum month-end outstanding balance $ 12,239 $ 9,080 Average outstanding balance during the period $ 8,116 $ 21,092 Average interest rate (year-to-date) 0.10 % 0.19 % Average interest rate at end of period 0.10 % 0.10 % |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Commitments and Contingencies [Abstract] | |
Financial Instruments whose Contract Amounts Represent Credit Risk | The following financial instruments whose contract amounts represent credit risk were outstanding at September 30, 2021 and December 31, 2020: September 30, December 31, (dollars in thousands) 2021 2020 Commitments to extend credit: Home equity lines of credit $ 70,168 $ 66,999 Commercial real estate, construction and development loans committed but not funded 48,386 20,258 Other lines of credit (principally commercial) 66,671 64,329 Total $ 185,225 $ 151,586 Letters of credit $ 3,568 $ 4,841 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Share-Based Compensation [Abstract] | |
Restricted Stock Activity | Restricted stock activity for the nine months ended September 30, 2021 is summarized below: Shares Weighted Average Grant Date Fair Value Nonvested, January 1, 2021 29,576 $ 18.46 Issued 18,048 22.35 Vested (8,521 ) 17.50 Forfeited - - Nonvested, September 30, 2021 39,103 $ 20.46 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings per Share (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Stockholders' Equity and Earnings per Share [Abstract] | |
Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss), by Category | The following table presents information on amounts reclassified out of accumulated other comprehensive income (loss), by category, during the periods indicated: Three Months Ended September 30, Nine Months Ended September 30, Affected Line Item on (dollars in thousands) 2021 2020 2021 2020 Available-for-sale securities Realized gains on sales of securities $ - $ 1 $ - $ 185 Gain on sale of available-for-sale securities, net Tax effect - - - 39 Income tax expense $ - $ 1 $ - $ 146 |
Changes in Accumulated Other Comprehensive Income (Loss), by Category | The following tables present the changes in accumulated other comprehensive income (loss), by category, net of tax, for the periods indicated: (dollars in thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Accumulated Other Comprehensive Income Nine September 30 2021 Balance at beginning of period $ 4,069 $ 4,069 Net other comprehensive loss (1,495 ) (1,495 ) Balance at end of period $ 2,574 $ 2,574 Nine September 30 2020 Balance at beginning of period $ (79 ) $ (79 ) Net other comprehensive income 3,883 3,883 Balance at end of period $ 3,804 $ 3,804 (dollars in thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Accumulated Other Comprehensive Income Three Months Ended September 30 2021 Balance at beginning of period $ 3,071 $ 3,071 Net other comprehensive loss (497 ) (497 ) Balance at end of period $ 2,574 $ 2,574 Three Months Ended September 30 2020 Balance at beginning of period $ 3,352 $ 3,352 Net other comprehensive income 452 452 Balance at end of period $ 3,804 $ 3,804 |
Component of Accumulated Other Comprehensive Income (Loss) on Pre-Tax and After-Tax | The following tables present the change in each component of accumulated other comprehensive income (loss) on a pre-tax and after-tax basis for the periods indicated. Three Months Ended September 30, 2021 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (629 ) $ (133 ) $ (497 ) Total change in accumulated other comprehensive income, net $ (629 ) $ (133 ) $ (497 ) Three Months Ended September 30, 2020 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 573 $ 120 $ 453 Reclassification adjustment for gains recognized in income (1 ) - (1 ) Total change in accumulated other comprehensive income, net $ 572 $ 120 $ 452 Nine Months Ended September 30, 2021 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (1,892 ) $ (397 ) $ (1,495 ) Total change in accumulated other comprehensive income, net $ (1,892 ) $ (397 ) $ (1,495 ) Nine Months Ended September 30, 2020 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 5,100 $ 1,071 $ 4,029 Reclassification adjustment for gains recognized in income (185 ) (39 ) (146 ) Total change in accumulated other comprehensive income, net $ 4,915 $ 1,032 $ 3,883 |
Computation of Earnings Per Share | The following is a reconciliation of the denominators of the basic and diluted EPS computations for the three and nine months ended September 30, 2021 and 2020: (dollars in thousands except per share data) Net Income Available to Common Shareholders (Numerator) Weighted Average Common Shares (Denominator) Per Share Three Months Ended September 30 2021 Net income, basic $ 1,908 5,245 $ 0.36 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 1,908 5,245 $ 0.36 Three Months Ended September 30 Net income, basic $ 1,100 5,221 $ 0.21 Potentially dilutive common shares - employee stock purchase program - 1 - Diluted $ 1,100 5,222 $ 0.21 Nine September 30 2021 Net income, basic $ 6,762 5,236 $ 1.29 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 6,762 5,236 $ 1.29 Nine September 30 2020 Net income, basic $ 4,844 5,214 $ 0.93 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 4,844 5,214 $ 0.93 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Fair Value Measurements [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following tables present the balances of certain assets measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurements at September 30, 2021 Using (dollars in thousands) Balance Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Available-for-sale securities U.S. Treasury securities $ 9,002 $ - $ 9,002 $ - Obligations of U.S. Government agencies 37,768 - 37,768 - Obligations of state and political subdivisions 52,821 - 52,821 - Mortgage-backed securities 85,913 - 85,913 - Money market investments 3,799 - 3,799 - Corporate bonds and other securities 23,137 - 23,137 - Total available-for-sale securities $ 212,440 $ - $ 212,440 $ - Fair Value Measurements at December 31, 2020 Using (dollars in thousands) Balance Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Available-for-sale securities U.S. Treasury securities $ 7,043 $ - $ 7,043 $ - Obligations of U.S. Government agencies 36,696 - 36,696 - Obligations of state and political subdivisions 45,995 - 45,995 - Mortgage-backed securities 73,501 - 73,501 - Money market investments 4,743 - 4,743 - Corporate bonds and other securities 18,431 - 18,431 - Total available-for-sale securities $ 186,409 $ - $ 186,409 $ - |
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the assets carried in the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate rather than at a market rate. These loans are not carried in the consolidated balance sheets at fair value and, as such, are not included in the tables below. Carrying Value at September 30, 2021 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Loans Loans held for sale $ 5,740 $ - $ 5,740 $ - Carrying Value at December 31, 2020 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Loans Loans held for sale $ 14,413 $ - $ 14,413 $ - |
Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company's financial instruments as of the dates indicated are as follows: Fair Value Measurements at September 30, 2021 Using (dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 184,304 $ 184,304 $ - $ - Securities available-for-sale 212,440 - 212,440 - Restricted securities 1,034 - 1,034 - Loans held for sale 5,740 - 5,740 - Loans, net of allowances for loan losses 830,467 - - 831,464 Bank owned life insurance 29,012 - 29,012 - Accrued interest receivable 3,308 - 3,308 - Liabilities Deposits $ 1,150,706 $ - $ 1,153,293 $ - Overnight repurchase agreements 4,496 - 4,496 - Federal Reserve Bank borrowings 898 - 898 - Long term borrowings 29,374 - 29,424 - Accrued interest payable 456 - 456 - Fair Value Measurements at December 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 120,437 $ 120,437 $ - $ - Securities available-for-sale 186,409 - 186,409 - Restricted securities 1,367 - 1,367 - Loans held for sale 14,413 - 14,413 - Loans, net of allowances for loan losses 826,759 - - 826,083 Bank owned life insurance 28,386 - 28,386 - Accrued interest receivable 3,613 - 3,613 - Liabilities Deposits $ 1,067,236 $ - $ 1,070,236 $ - Overnight repurchase agreements 6,619 - 6,619 - Federal Reserve Bank borrowings 28,550 - 28,550 - Other borrowings 1,350 - 1,350 - Accrued interest payable 384 - 384 - |
Segment Reporting (Tables)
Segment Reporting (Tables) | 9 Months Ended |
Sep. 30, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets and Revenues from Segment to Consolidated | Information about reportable segments, and reconciliation of such information to the consolidated financial statements as of and for the three and nine months ended September 30, 2021 and 2020 follows: Three Months Ended September 30, 2021 (dollars in thousands) Bank Trust Parent Eliminations Consolidated Revenues Interest and dividend income $ 10,809 $ 6 $ 2,281 $ (2,281 ) $ 10,815 Income from fiduciary activities - 1,032 - - 1,032 Other income 2,341 249 50 (66 ) 2,574 Total operating income 13,150 1,287 2,331 (2,347 ) 14,421 Expenses Interest expense 688 - 251 - 939 Provision for loan losses 360 - - - 360 Salaries and employee benefits 5,644 746 168 - 6,558 Other expenses 4,077 257 102 (66 ) 4,370 Total operating expenses 10,769 1,003 521 (66 ) 12,227 Income before taxes 2,381 284 1,810 (2,281 ) 2,194 Income tax expense (benefit) 325 59 (98 ) - 286 Net income $ 2,056 $ 225 $ 1,908 $ (2,281 ) $ 1,908 Capital expenditures $ 370 $ - $ - $ - $ 370 Total assets $ 1,304,291 $ 7,222 $ 150,442 $ (150,329 ) $ 1,311,626 Three Months Ended September 30, 2020 (dollars in thousands) Bank Trust Parent Eliminations Consolidated Revenues Interest and dividend income $ 9,732 $ 6 $ 1,244 $ (1,245 ) $ 9,737 Income from fiduciary activities - 955 - - 955 Other income 2,483 234 50 (65 ) 2,702 Total operating income 12,215 1,195 1,294 (1,310 ) 13,394 Expenses Interest expense 1,258 - 11 - 1,269 Provision for loan losses 300 - - - 300 Salaries and employee benefits 5,746 760 154 - 6,660 Other expenses 3,752 249 68 (65 ) 4,004 Total operating expenses 11,056 1,009 233 (65 ) 12,233 Income before taxes 1,159 186 1,061 (1,245 ) 1,161 Income tax expense (benefit) 61 39 (39 ) - 61 Net income $ 1,098 $ 147 $ 1,100 $ (1,245 ) $ 1,100 Capital expenditures $ 86 $ 10 $ - $ - $ 96 Total assets $ 1,249,144 $ 6,961 $ 118,423 $ (118,435 ) $ 1,256,093 Nine Months Ended September 30, 2021 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 31,635 $ 17 $ 7,458 $ (7,458 ) $ 31,652 Income from fiduciary activities - 3,110 - - 3,110 Other income 7,426 788 150 (196 ) 8,168 Total operating income 39,061 3,915 7,608 (7,654 ) 42,930 Expenses Interest expense 2,258 - 256 - 2,514 Provision for loan losses 510 - - - 510 Salaries and employee benefits 16,263 2,253 496 - 19,012 Other expenses 12,139 788 278 (196 ) 13,009 Total operating expenses 31,170 3,041 1,030 (196 ) 35,045 Income before taxes 7,891 874 6,578 (7,458 ) 7,885 Income tax expense (benefit) 1,123 184 (184 ) - 1,123 Net income $ 6,768 $ 690 $ 6,762 $ (7,458 ) $ 6,762 Capital expenditures $ 1,089 $ 41 $ - $ - $ 1,130 Total assets $ 1,304,291 $ 7,222 $ 150,442 $ (150,329 ) $ 1,311,626 Nine Months Ended September 30, 2020 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 29,532 $ 40 $ 5,362 $ (5,363 ) $ 29,571 Income from fiduciary activities - 2,881 - - 2,881 Other income 7,289 769 150 (196 ) 8,012 Total operating income 36,821 3,690 5,512 (5,559 ) 40,464 Expenses Interest expense 4,167 - 45 - 4,212 Provision for loan losses 900 - - - 900 Salaries and employee benefits 15,305 2,315 498 - 18,118 Other expenses 10,886 827 263 (196 ) 11,780 Total operating expenses 31,258 3,142 806 (196 ) 35,010 Income before taxes 5,563 548 4,706 (5,363 ) 5,454 Income tax expense (benefit) 631 117 (138 ) - 610 Net income $ 4,932 $ 431 $ 4,844 $ (5,363 ) $ 4,844 Capital expenditures $ 742 $ 16 $ - $ - $ 758 Total assets $ 1,249,144 $ 6,961 $ 118,423 $ (118,435 ) $ 1,256,093 |
Accounting Policies (Details)
Accounting Policies (Details) $ in Thousands | Sep. 30, 2021USD ($)SubsidiaryBranch | Jun. 30, 2021USD ($) | Dec. 31, 2020USD ($) |
NATURE OF OPERATIONS [Abstract] | |||
Number of subsidiaries | Subsidiary | 2 | ||
Number of branch offices | Branch | 16 | ||
COVID-19 [Member] | |||
COVID-19 [Abstract] | |||
Loan modifications | $ | $ 0 | $ 54 | $ 7,400 |
Securities (Details)
Securities (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($)Security | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Security | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Security | |
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | $ 209,181 | $ 209,181 | $ 181,259 | ||
Gross unrealized gains | 4,139 | 4,139 | 5,493 | ||
Gross unrealized (losses) | (880) | (880) | (343) | ||
Fair value | 212,440 | 212,440 | 186,409 | ||
Other-than-temporary Impairment Loss, Debt Securities, Available-for-sale, Recognized in Earnings | 0 | $ 0 | |||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Due in one year or less | 200 | 200 | |||
Due after one year through five years | 13,758 | 13,758 | |||
Due after five through ten years | 52,437 | 52,437 | |||
Due after ten years | 138,987 | 138,987 | |||
Other securities, restricted | 3,799 | 3,799 | |||
Total securities | 209,181 | 209,181 | 181,259 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Due in one year or less | 200 | 200 | |||
Due after one year through five years | 14,175 | 14,175 | |||
Due after five through ten years | 53,514 | 53,514 | |||
Due after ten years | 140,752 | 140,752 | |||
Other securities, restricted | 3,799 | 3,799 | |||
Total securities | 212,440 | 212,440 | 186,409 | ||
Securities Available-for-sale [Abstract] | |||||
Realized gains on sales of securities | 0 | $ 1 | 0 | 186 | |
Realized losses on sales of securities | 0 | 0 | 0 | (1) | |
Net realized gain | 0 | $ 1 | 0 | $ 185 | |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than Twelve Months | 722 | 722 | 148 | ||
More Than Twelve Months | 158 | 158 | 195 | ||
Total | 880 | 880 | 343 | ||
Securities Available-for-Sale, Fair Value [Abstract] | |||||
Less Than Twelve Months | 63,170 | 63,170 | 23,078 | ||
More Than Twelve Months | 12,166 | 12,166 | 18,476 | ||
Total | $ 75,336 | $ 75,336 | $ 41,554 | ||
Securities Available-for-Sale, Number of Securities [Abstract] | |||||
Number of Securities | Security | 45 | 45 | 29 | ||
U.S. Treasury Securities [Member] | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | $ 9,050 | $ 9,050 | $ 6,980 | ||
Gross unrealized gains | 0 | 0 | 63 | ||
Gross unrealized (losses) | (48) | (48) | 0 | ||
Fair value | 9,002 | 9,002 | 7,043 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Total securities | 9,050 | 9,050 | 6,980 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Total securities | 9,002 | 9,002 | 7,043 | ||
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than Twelve Months | 48 | 48 | |||
More Than Twelve Months | 0 | 0 | |||
Total | 48 | 48 | |||
Securities Available-for-Sale, Fair Value [Abstract] | |||||
Less Than Twelve Months | 9,002 | 9,002 | |||
More Than Twelve Months | 0 | 0 | |||
Total | 9,002 | 9,002 | |||
Obligations of U.S. Government Agencies [Member] | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | 37,614 | 37,614 | 36,858 | ||
Gross unrealized gains | 212 | 212 | 35 | ||
Gross unrealized (losses) | (58) | (58) | (197) | ||
Fair value | 37,768 | 37,768 | 36,696 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Total securities | 37,614 | 37,614 | 36,858 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Total securities | 37,768 | 37,768 | 36,696 | ||
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than Twelve Months | 22 | 22 | 8 | ||
More Than Twelve Months | 36 | 36 | 189 | ||
Total | 58 | 58 | 197 | ||
Securities Available-for-Sale, Fair Value [Abstract] | |||||
Less Than Twelve Months | 4,967 | 4,967 | 2,810 | ||
More Than Twelve Months | 5,374 | 5,374 | 17,191 | ||
Total | 10,341 | 10,341 | 20,001 | ||
Obligations of State and Political Subdivisions [Member] | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | 51,128 | 51,128 | 43,517 | ||
Gross unrealized gains | 1,954 | 1,954 | 2,478 | ||
Gross unrealized (losses) | (261) | (261) | 0 | ||
Fair value | 52,821 | 52,821 | 45,995 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Total securities | 51,128 | 51,128 | 43,517 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Total securities | 52,821 | 52,821 | 45,995 | ||
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than Twelve Months | 261 | 261 | |||
More Than Twelve Months | 0 | 0 | |||
Total | 261 | 261 | |||
Securities Available-for-Sale, Fair Value [Abstract] | |||||
Less Than Twelve Months | 13,086 | 13,086 | |||
More Than Twelve Months | 0 | 0 | |||
Total | 13,086 | 13,086 | |||
Mortgage-backed Securities [Member] | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | 84,648 | 84,648 | 70,866 | ||
Gross unrealized gains | 1,693 | 1,693 | 2,759 | ||
Gross unrealized (losses) | (428) | (428) | (124) | ||
Fair value | 85,913 | 85,913 | 73,501 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Total securities | 84,648 | 84,648 | 70,866 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Total securities | 85,913 | 85,913 | 73,501 | ||
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than Twelve Months | 306 | 306 | 118 | ||
More Than Twelve Months | 122 | 122 | 6 | ||
Total | 428 | 428 | 124 | ||
Securities Available-for-Sale, Fair Value [Abstract] | |||||
Less Than Twelve Months | 26,500 | 26,500 | 14,291 | ||
More Than Twelve Months | 6,792 | 6,792 | 1,285 | ||
Total | 33,292 | 33,292 | 15,576 | ||
Money Market Investments [Member] | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | 3,799 | 3,799 | 4,743 | ||
Gross unrealized gains | 0 | 0 | 0 | ||
Gross unrealized (losses) | 0 | 0 | 0 | ||
Fair value | 3,799 | 3,799 | 4,743 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Total securities | 3,799 | 3,799 | 4,743 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Total securities | 3,799 | 3,799 | 4,743 | ||
Corporate Bonds and Other Securities [Member] | |||||
Debt Securities, Available-for-sale [Abstract] | |||||
Amortized cost | 22,942 | 22,942 | 18,295 | ||
Gross unrealized gains | 280 | 280 | 158 | ||
Gross unrealized (losses) | (85) | (85) | (22) | ||
Fair value | 23,137 | 23,137 | 18,431 | ||
Available-for-Sale, Amortized Cost [Abstract] | |||||
Total securities | 22,942 | 22,942 | 18,295 | ||
Available-for-Sale, Fair Value [Abstract] | |||||
Total securities | 23,137 | 23,137 | 18,431 | ||
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | |||||
Less Than Twelve Months | 85 | 85 | 22 | ||
More Than Twelve Months | 0 | 0 | 0 | ||
Total | 85 | 85 | 22 | ||
Securities Available-for-Sale, Fair Value [Abstract] | |||||
Less Than Twelve Months | 9,615 | 9,615 | 5,977 | ||
More Than Twelve Months | 0 | 0 | 0 | ||
Total | $ 9,615 | $ 9,615 | $ 5,977 |
Loans and the Allowance for L_3
Loans and the Allowance for Loan Losses, Outstanding Loans By Segment Type (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | $ 840,151 | $ 836,300 | |
Less: Allowance for loan losses | 9,684 | 9,541 | |
Loans, net of allowance and deferred fees | [1] | 830,467 | 826,759 |
Overdrawn deposit accounts, excluding internal use accounts | 297 | 271 | |
Net deferred loan fees | 1,800 | 2,100 | |
Mortgage Loans on Real Estate [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 622,210 | 568,119 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 116,466 | 122,800 | |
Mortgage Loans on Real Estate [Member] | Commercial Real Estate [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 363,838 | 316,851 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 185,466 | 153,955 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 178,372 | 162,896 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 20,563 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 62,739 | 43,732 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 8,710 | 11,178 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 49,894 | 50,746 | |
Commercial [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 91,424 | 141,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 91,424 | 141,746 | |
Consumer [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | [2] | 119,383 | 118,368 |
Consumer [Member] | Consumer Automobile Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 84,597 | 80,390 | |
Consumer [Member] | Other Consumer Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 34,786 | 37,978 | |
Other [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | [3] | $ 7,134 | $ 8,067 |
[1] | Net deferred loan fees totaled $1.8 million and $2.1 million at September 30, 2021 and December 31, 2020, respectively. | ||
[2] | The consumer segment includes consumer automobile loans. | ||
[3] | Overdrawn accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $297 thousand and $271 thousand at September 30, 2021 and December 31, 2020, respectively. |
Loans and the Allowance for L_4
Loans and the Allowance for Loan Losses, Acquired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Acquired Loans Included in Consolidated Balance Sheet [Abstract] | |||
Outstanding principal balance | $ 5,145 | $ 8,671 | |
Carrying amount | 5,114 | 8,602 | |
Acquired Loans Accounted for Under FASB ASC 310-30 [Abstract] | |||
Outstanding principal balance | 0 | 0 | |
Carrying amount | 0 | $ 0 | |
Acquired Loans Accounted for under FASB ASC 310-30 Changes in Accretable Yield [Roll Forward] | |||
Balance at beginning of period | 0 | $ 72 | |
Accretion | 0 | (29) | |
Balance at end of period | $ 0 | $ 43 |
Loans and the Allowance for L_5
Loans and the Allowance for Loan Losses, Credit Quality (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Gross loan receivables | $ 840,151 | $ 836,300 | |
Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 834,146 | 828,410 | |
OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 1,493 | 4,563 | |
Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 4,512 | 3,327 | |
Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 622,210 | 568,119 | |
Mortgage Loans on Real Estate [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 616,710 | 560,977 | |
Mortgage Loans on Real Estate [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 1,480 | 4,208 | |
Mortgage Loans on Real Estate [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 4,020 | 2,934 | |
Mortgage Loans on Real Estate [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 116,466 | 122,800 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 116,296 | 122,621 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 170 | 179 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial Real Estate [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 363,838 | 316,851 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 185,466 | 153,955 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 182,515 | 148,738 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 832 | 2,462 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 2,119 | 2,755 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 178,372 | 162,896 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 177,119 | 162,148 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 521 | 748 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 732 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 20,563 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 20,563 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 62,739 | 43,732 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 61,613 | 42,734 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 127 | 998 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 999 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 8,710 | 11,178 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 8,710 | 11,178 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 49,894 | 50,746 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 49,894 | 50,746 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Commercial [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 91,424 | 141,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 91,424 | 141,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 91,156 | 141,391 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 13 | 355 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 255 | 0 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Consumer [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | [1] | 119,383 | 118,368 |
Consumer [Member] | Consumer Automobile Loans [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 84,597 | 80,390 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 84,360 | 79,997 | |
Consumer [Member] | Consumer Automobile Loans [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 237 | 393 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Consumer [Member] | Other Consumer Loan [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 34,786 | 37,978 | |
Consumer [Member] | Other Consumer Loan [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 34,786 | 37,978 | |
Consumer [Member] | Other Consumer Loan [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Consumer [Member] | Other Consumer Loan [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Consumer [Member] | Other Consumer Loan [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Other [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | [2] | 7,134 | 8,067 |
Other [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 7,134 | 8,067 | |
Other [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Other [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | 0 | 0 | |
Other [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loan receivables | $ 0 | $ 0 | |
[1] | The consumer segment includes consumer automobile loans. | ||
[2] | Overdrawn accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $297 thousand and $271 thousand at September 30, 2021 and December 31, 2020, respectively. |
Loans and the Allowance for L_6
Loans and the Allowance for Loan Losses, Past Due (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | ||
Loans, Aging [Abstract] | ||||
Total Loans | $ 840,151 | $ 836,300 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 424 | 1,214 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 424 | 1,214 | |
Interest income that would have been recorded under original loan terms [Abstract] | ||||
Interest income that would have been recorded under original loan terms | 8 | $ 145 | ||
Actual interest income recorded for the period | 2 | 34 | ||
Reduction in interest income on non accrual loans | 6 | $ 111 | ||
30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 1,767 | 3,575 | ||
60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 487 | 1,000 | ||
90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 937 | 744 | ||
Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 836,536 | 829,767 | |
Guaranteed Student Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | $ 1,100 | $ 1,200 | ||
Guaranteed Student Loans [Member] | Minimum [Member] | ||||
Loans, Aging [Abstract] | ||||
Percentage of student loans guaranteed by federal government | 97.00% | 97.00% | ||
Guaranteed Student Loans [Member] | Maximum [Member] | ||||
Loans, Aging [Abstract] | ||||
Percentage of student loans guaranteed by federal government | 98.00% | 98.00% | ||
Guaranteed Student Loans [Member] | 90 or More Days Past Due [Member] | Minimum [Member] | ||||
Loans, Aging [Abstract] | ||||
Percentage of student loans guaranteed by federal government | 97.00% | |||
Guaranteed Student Loans [Member] | 90 or More Days Past Due [Member] | Maximum [Member] | ||||
Loans, Aging [Abstract] | ||||
Percentage of student loans guaranteed by federal government | 98.00% | |||
Mortgage Loans on Real Estate [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | $ 622,210 | $ 568,119 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 421 | 1,214 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 421 | 1,214 | |
Mortgage Loans on Real Estate [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 429 | 519 | ||
Mortgage Loans on Real Estate [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 29 | 252 | ||
Mortgage Loans on Real Estate [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 621,331 | 566,134 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 116,466 | 122,800 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 238 | 311 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 238 | 311 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 74 | 478 | ||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 29 | 164 | ||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 116,125 | 121,847 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 185,466 | 153,955 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 903 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 903 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 185,466 | 153,052 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 178,372 | 162,896 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 183 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 183 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 354 | 0 | ||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 177,835 | 162,896 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 20,563 | 22,812 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 20,563 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 62,739 | 43,732 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Construction [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 88 | ||
Mortgage Loans on Real Estate [Member] | Construction [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Construction [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 62,739 | 43,644 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 8,710 | 11,178 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 1 | 41 | ||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 8,709 | 11,137 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 49,894 | 50,746 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 49,894 | 50,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 91,424 | 141,746 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 141 | 753 | ||
Commercial [Member] | Commercial and Industrial Loans [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Commercial [Member] | Commercial and Industrial Loans [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 0 | 0 | ||
Commercial [Member] | Commercial and Industrial Loans [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 91,283 | 140,993 | |
Consumer [Member] | ||||
Loans, Aging [Abstract] | ||||
Nonaccrual | 3 | 0 | ||
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | 3 | 0 | ||
Consumer [Member] | Consumer Automobile Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 84,597 | 80,390 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 3 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 3 | 0 | |
Consumer [Member] | Consumer Automobile Loans [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 771 | 1,159 | ||
Consumer [Member] | Consumer Automobile Loans [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 126 | 190 | ||
Consumer [Member] | Consumer Automobile Loans [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 264 | 196 | ||
Consumer [Member] | Consumer Automobile Loans [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 83,433 | 78,845 | |
Consumer [Member] | Other Consumer Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 34,786 | 37,978 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Consumer [Member] | Other Consumer Loans [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 399 | 1,120 | ||
Consumer [Member] | Other Consumer Loans [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 331 | 555 | ||
Consumer [Member] | Other Consumer Loans [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 667 | 548 | ||
Consumer [Member] | Other Consumer Loans [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | 33,389 | 35,755 | |
Other [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 7,134 | 8,067 | ||
PCI | 0 | 0 | ||
Nonaccrual | [1] | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | ||||
Loans in nonaccrual status | [1] | 0 | 0 | |
Other [Member] | 30 - 59 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 27 | 24 | ||
Other [Member] | 60 - 89 Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 1 | 3 | ||
Other [Member] | 90 or More Days Past Due [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | 6 | 0 | ||
Other [Member] | Current Loans [Member] | ||||
Loans, Aging [Abstract] | ||||
Total Loans | [2] | $ 7,100 | $ 8,040 | |
[1] | For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. | |||
[2] | For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. |
Loans and the Allowance for L_7
Loans and the Allowance for Loan Losses, Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Contract | Sep. 30, 2020USD ($)Contract | Dec. 31, 2020USD ($) | |
Receivables [Abstract] | |||||
Number of modifications | Contract | 0 | 1 | |||
Outstanding commitments on TDR's | $ 0 | $ 0 | $ 0 | $ 0 | |
Defaulting TDR's within twelve months of restructuring | 0 | $ 0 | 0 | $ 0 | |
Residential 1-4 Family [Member] | |||||
Receivables [Abstract] | |||||
Loans in process for foreclosure | $ 0 | $ 0 | $ 0 |
Loans and the Allowance for L_8
Loans and the Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Unpaid Principal Balance | $ 1,131 | $ 4,200 |
Recorded Investment, Without Valuation Allowance | 330 | 1,692 |
Recorded Investment, With Valuation Allowance | 939 | 424 |
Associated Allowance | 49 | 11 |
Average Recorded Investment | 1,241 | 3,257 |
Interest Income Recognized | 14 | 67 |
Mortgage Loans on Real Estate [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 1,117 | 4,180 |
Recorded Investment, Without Valuation Allowance | 317 | 1,672 |
Recorded Investment, With Valuation Allowance | 938 | 424 |
Associated Allowance | 49 | 11 |
Average Recorded Investment | 1,229 | 3,235 |
Interest Income Recognized | 14 | 66 |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 403 | 474 |
Recorded Investment, Without Valuation Allowance | 67 | 366 |
Recorded Investment, With Valuation Allowance | 306 | 87 |
Associated Allowance | 33 | 1 |
Average Recorded Investment | 382 | 458 |
Interest Income Recognized | 6 | 10 |
Mortgage Loans on Real Estate [Member] | Commercial [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 504 | 3,490 |
Recorded Investment, Without Valuation Allowance | 250 | 1,306 |
Recorded Investment, With Valuation Allowance | 425 | 121 |
Associated Allowance | 13 | 1 |
Average Recorded Investment | 636 | 2,559 |
Interest Income Recognized | 1 | 46 |
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 81 | 83 |
Recorded Investment, Without Valuation Allowance | 0 | 0 |
Recorded Investment, With Valuation Allowance | 80 | 83 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 82 | 84 |
Interest Income Recognized | 3 | 5 |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 129 | 133 |
Recorded Investment, Without Valuation Allowance | 0 | 0 |
Recorded Investment, With Valuation Allowance | 127 | 133 |
Associated Allowance | 3 | 9 |
Average Recorded Investment | 129 | 134 |
Interest Income Recognized | 4 | 5 |
Commercial [Member] | Commercial and Industrial Loans [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 3 | 6 |
Recorded Investment, Without Valuation Allowance | 1 | 6 |
Recorded Investment, With Valuation Allowance | 1 | 0 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 2 | 7 |
Interest Income Recognized | 0 | 0 |
Consumer [Member] | Other Consumer Loans [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 11 | 14 |
Recorded Investment, Without Valuation Allowance | 12 | 14 |
Recorded Investment, With Valuation Allowance | 0 | 0 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 10 | 15 |
Interest Income Recognized | $ 0 | $ 1 |
Loans and the Allowance for L_9
Loans and the Allowance for Loan Losses, Activity In Period (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($)qtr | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Periodqtr | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Period | ||
Changes in Accounting Methodology [Abstract] | ||||||
Number of migration periods | Period | 8 | 8 | ||||
Number of quarters remains on each migration period | qtr | 12 | 12 | ||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | $ 9,541 | $ 9,660 | $ 9,660 | |||
Charges-offs | (905) | (2,005) | ||||
Recoveries | 538 | 886 | ||||
Provision for loan losses | $ 360 | $ 300 | 510 | 900 | 1,000 | |
Ending Balance | 9,684 | 9,684 | 9,541 | |||
Individually evaluated for impairment | 49 | 49 | 11 | |||
Collectively evaluated for impairment | 9,635 | 9,635 | 9,530 | |||
Ending Balance | 9,684 | 9,684 | 9,541 | |||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | 1,269 | 1,269 | 2,116 | |||
Collectively evaluated for impairment | 838,882 | 838,882 | 834,184 | |||
Ending Balance | 840,151 | 840,151 | 836,300 | |||
Commercial and Industrial [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | 650 | 1,244 | 1,244 | |||
Charges-offs | (24) | (25) | ||||
Recoveries | 33 | 47 | ||||
Provision for loan losses | 47 | (616) | ||||
Ending Balance | 706 | 706 | 650 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 706 | 706 | 650 | |||
Ending Balance | 706 | 706 | 650 | |||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | 2 | 2 | 6 | |||
Collectively evaluated for impairment | 91,422 | 91,422 | 141,740 | |||
Ending Balance | 91,424 | 91,424 | 141,746 | |||
Real Estate [Member] | ||||||
Loan Balances [Abstract] | ||||||
Ending Balance | 622,210 | 622,210 | 568,119 | |||
Real Estate [Member] | Construction [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | 339 | 258 | 258 | |||
Charges-offs | 0 | 0 | ||||
Recoveries | 0 | 10 | ||||
Provision for loan losses | 152 | 71 | ||||
Ending Balance | 491 | 491 | 339 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 491 | 491 | 339 | |||
Ending Balance | 491 | 491 | 339 | |||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | 80 | 80 | 83 | |||
Collectively evaluated for impairment | 62,659 | 62,659 | 43,649 | |||
Ending Balance | 62,739 | 62,739 | 43,732 | |||
Real Estate [Member] | Mortgage [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | [1] | 2,560 | 2,505 | 2,505 | ||
Charges-offs | [1] | (1) | (149) | |||
Recoveries | [1] | 66 | 69 | |||
Provision for loan losses | [1] | (341) | 135 | |||
Ending Balance | [1] | 2,284 | 2,284 | 2,560 | ||
Individually evaluated for impairment | [1] | 36 | 36 | 10 | ||
Collectively evaluated for impairment | [1] | 2,248 | 2,248 | 2,550 | ||
Ending Balance | [1] | 2,284 | 2,284 | 2,560 | ||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | [1] | 500 | 500 | 586 | ||
Collectively evaluated for impairment | [1] | 195,133 | 195,133 | 206,950 | ||
Ending Balance | [1] | 195,633 | 195,633 | 207,536 | ||
Real Estate [Member] | Commercial [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | 4,434 | 3,663 | 3,663 | |||
Charges-offs | 0 | (654) | ||||
Recoveries | 44 | 317 | ||||
Provision for loan losses | 239 | 1,108 | ||||
Ending Balance | 4,717 | 4,717 | 4,434 | |||
Individually evaluated for impairment | 13 | 13 | 1 | |||
Collectively evaluated for impairment | 4,704 | 4,704 | 4,433 | |||
Ending Balance | 4,717 | 4,717 | 4,434 | |||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | 675 | 675 | 1,427 | |||
Collectively evaluated for impairment | 363,163 | 363,163 | 315,424 | |||
Ending Balance | 363,838 | 363,838 | 316,851 | |||
Consumer [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | [2] | 1,302 | 1,694 | 1,694 | ||
Charges-offs | [2] | (664) | (822) | |||
Recoveries | [2] | 310 | 377 | |||
Provision for loan losses | [2] | 373 | 53 | |||
Ending Balance | [2] | 1,321 | 1,321 | 1,302 | ||
Individually evaluated for impairment | [2] | 0 | 0 | 0 | ||
Collectively evaluated for impairment | [2] | 1,321 | 1,321 | 1,302 | ||
Ending Balance | [2] | 1,321 | 1,321 | 1,302 | ||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | [2] | 12 | 12 | 14 | ||
Collectively evaluated for impairment | [2] | 119,371 | 119,371 | 118,354 | ||
Ending Balance | [2] | 119,383 | 119,383 | 118,368 | ||
Other [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | 123 | 296 | 296 | |||
Charges-offs | (216) | (355) | ||||
Recoveries | 85 | 66 | ||||
Provision for loan losses | 173 | 116 | ||||
Ending Balance | 165 | 165 | 123 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 165 | 165 | 123 | |||
Ending Balance | 165 | 165 | 123 | |||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 7,134 | 7,134 | 8,067 | |||
Ending Balance | [3] | 7,134 | 7,134 | 8,067 | ||
Unallocated [Member] | ||||||
Allowance for loan losses by segment [Roll Forward] | ||||||
Beginning Balance | 133 | $ 0 | 0 | |||
Charges-offs | 0 | 0 | ||||
Recoveries | 0 | 0 | ||||
Provision for loan losses | (133) | 133 | ||||
Ending Balance | 0 | 0 | 133 | |||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 0 | 0 | 133 | |||
Ending Balance | 0 | 0 | 133 | |||
Loan Balances [Abstract] | ||||||
Individually evaluated for impairment | 0 | 0 | 0 | |||
Collectively evaluated for impairment | 0 | 0 | 0 | |||
Ending Balance | $ 0 | $ 0 | $ 0 | |||
[1] | The real estate-mortgage segment includes residential 1 – 4 family, multi-family, second mortgages and equity lines of credit. | |||||
[2] | The consumer segment includes consumer automobile loans. | |||||
[3] | Overdrawn accounts are reclassified as loans and included in the Other category in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $297 thousand and $271 thousand at September 30, 2021 and December 31, 2020, respectively. |
Leases, Adoption ASU No. 2016-0
Leases, Adoption ASU No. 2016-02 (Details) | 9 Months Ended |
Sep. 30, 2021Lease | |
Assets and Liabilities, Lessee [Abstract] | |
Number of new leases | 0 |
Leases, Long-term Lease Agreeme
Leases, Long-term Lease Agreements Classified as Operating Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Information about Leases [Abstract] | ||||
Lease liabilities | $ 1,121 | $ 1,121 | ||
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | Other Liabilities | ||
Right of use assets | $ 1,098 | $ 1,098 | ||
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets | ||
Weighted average remaining lease term | 3 years 9 months 21 days | 3 years 9 months 21 days | ||
Weighted average discount rate | 1.71% | 1.71% | ||
Lease cost [Abstract] | ||||
Operating lease cost | $ 81 | $ 99 | $ 266 | $ 278 |
Total lease cost | 81 | 99 | 266 | 278 |
Cash paid for amounts included in the measurement of lease liabilities | 82 | $ 97 | 269 | $ 274 |
Lease payments due [Abstract] | ||||
Three months ending December 31, 2021 | 83 | 83 | ||
Twelve months ending December 31, 2022 | 339 | 339 | ||
Twelve months ending December 31, 2023 | 248 | 248 | ||
Twelve months ending December 31, 2024 | 240 | 240 | ||
Thereafter | 309 | 309 | ||
Total undiscounted cash flows | 1,219 | 1,219 | ||
Discount | (98) | (98) | ||
Lease liabilities | $ 1,121 | $ 1,121 |
Low-Income Housing Tax Credit_2
Low-Income Housing Tax Credits (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |||
Sep. 30, 2021USD ($)Fund | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Fund | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($)Fund | ||
Low-Income Housing Tax Credits [Abstract] | ||||||
Number of housing equity funds | Fund | 4 | 4 | 4 | |||
Low-income housing investment | $ 2,100 | $ 2,100 | $ 2,300 | |||
Expected affordable housing tax credits | 361 | |||||
Additional committed capital calls expected | 0 | 0 | $ 18 | |||
Tax credits and other benefits [Abstract] | ||||||
Amortization of operating losses | 51 | $ 45 | 151 | $ 136 | ||
Tax benefit of operating losses | [1] | 11 | 10 | 32 | 29 | |
Tax credits | 89 | 105 | 272 | 314 | ||
Total tax benefits | $ 100 | $ 115 | $ 304 | $ 343 | ||
Effective income tax rate | 21.00% | |||||
[1] | Computed using a 21% tax rate. |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Jul. 14, 2021 | Sep. 30, 2021 | Dec. 31, 2020 |
Borrowings and FHLB Advances [Abstract] | |||
Available federal funds lines | $ 115,000 | $ 100,000 | |
Available credit with FHLB | 380,300 | 374,700 | |
Short-Term Borrowings [Abstract] | |||
Overnight repurchase agreements | 4,496 | 6,619 | |
Total short-term borrowings | 4,496 | 6,619 | |
Maximum month-end outstanding balance | 12,239 | 9,080 | |
Average outstanding balance during the period | $ 8,116 | $ 21,092 | |
Average interest rate (year-to-date) | 0.10% | 0.19% | |
Average interest rate at end of period | 0.10% | 0.10% | |
Long-Term Borrowings [Abstract] | |||
Federal Reserve Bank Borrowings | $ 898 | $ 28,550 | |
Minimum [Member] | |||
Borrowings and FHLB Advances [Abstract] | |||
Overnight repurchase agreements maturity period | 1 day | ||
Maximum [Member] | |||
Borrowings and FHLB Advances [Abstract] | |||
Overnight repurchase agreements maturity period | 4 days | ||
Paycheck Protection Program Liquidity Facility [Member] | |||
Long-Term Borrowings [Abstract] | |||
Federal Reserve Bank Borrowings | $ 898 | ||
New advances | $ 0 | ||
Paycheck Protection Program Liquidity Facility [Member] | Maximum [Member] | |||
Long-Term Borrowings [Abstract] | |||
Maturity term of borrowings from origination | 24 months | ||
Citizens Acquisition [Member] | |||
Long-Term Borrowings [Abstract] | |||
Loan maturity date | Apr. 1, 2023 | ||
Loans outstanding | $ 1,400 | ||
Interest rate | 2.61% | ||
Long term borrowings, net of issuance costs | $ 1,400 | ||
The Notes [Member] | Subordinated Notes [Member] | |||
Long-Term Borrowings [Abstract] | |||
Loan maturity date | Dec. 31, 2031 | ||
Loans outstanding | $ 29,400 | ||
Interest rate | 3.50% | ||
Long term borrowings, net of issuance costs | $ 29,400 | ||
Principal amount | $ 30,000 | ||
Fixed interest rate, period | 5 years | ||
The Notes [Member] | Subordinated Notes [Member] | SOFR [Member] | |||
Long-Term Borrowings [Abstract] | |||
Term of variable rate | 3 months | ||
Debt instrument, variable rate | 2.86% |
Commitments and Contingencies_2
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | $ 185,225 | $ 151,586 |
Home Equity Lines of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 70,168 | 66,999 |
Commercial Real Estate, Construction and Development Loans Committed but not Funded [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 48,386 | 20,258 |
Other Lines of Credit (Principally Commercial) [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 66,671 | 64,329 |
Letters of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | $ 3,568 | $ 4,841 |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | Dec. 31, 2020 | |
Weighted Average Grant Date Fair Value [Abstract] | |||||
Stock-based compensation expense | $ 84 | $ 56 | $ 214 | $ 199 | |
Restricted Stock [Member] | |||||
Shares [Roll Forward] | |||||
Nonvested balance at beginning of period (in shares) | 29,576 | ||||
Issued (in shares) | 18,048 | ||||
Vested (in shares) | (8,521) | ||||
Forfeited (in shares) | 0 | ||||
Nonvested balance at end of period (in shares) | 39,103 | 39,103 | 29,576 | ||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Non-vested balance at beginning of period (in dollars per share) | $ 18.46 | ||||
Issued (in dollars per share) | 22.35 | ||||
Vested (in dollars per share) | 17.50 | ||||
Forfeited (in dollars per share) | 0 | ||||
Non-vested balance at end of period (in dollars per share) | $ 20.46 | $ 20.46 | $ 18.46 | ||
Weighted-average remaining vesting period for recognition | 1 year 6 months 7 days | ||||
Fair value of restricted stock granted | $ 403 | 298 | |||
Unrecognized stock-based compensation expense | $ 411 | $ 314 | $ 411 | $ 314 | |
2016 Stock Incentive Plan [Member] | |||||
Stock option plan activity [Abstract] | |||||
Shares available for grant (in shares) | 300,000 | 300,000 | |||
ESPP [Member] | |||||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Discount from market price at date of purchase | 5.00% | 5.00% | |||
Total stock purchases under the plan (in shares) | 3,775 | ||||
Shares reserved for issuance (in shares) | 228,676 | 228,676 | |||
ESPP [Member] | Minimum [Member] | |||||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Discount from market price at date of purchase | 0.00% | ||||
ESPP [Member] | Maximum [Member] | |||||
Weighted Average Grant Date Fair Value [Abstract] | |||||
Discount from market price at date of purchase | 15.00% |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings per Share, Amounts Reclassified Out of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Available-for-sale securities [Abstract] | ||||
Realized gains on sales of securities | $ 0 | $ 1 | $ 0 | $ 185 |
Tax effect | 0 | 0 | 0 | 39 |
Total | $ 0 | $ 1 | $ 0 | $ 146 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings per Share, Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Stockholders Equity Note [Abstract] | ||||
Beginning Balance | $ 119,928 | $ 115,869 | $ 117,145 | $ 109,756 |
Ending Balance | 120,767 | 116,875 | 120,767 | 116,875 |
Other comprehensive income, pretax [Abstract] | ||||
Unrealized holding gains (losses) arising during the period, pretax | (629) | 573 | (1,892) | 5,100 |
Reclassification adjustment for gains recognized in income, pretax | 0 | (1) | 0 | (185) |
Total change in accumulated other comprehensive income, net, pretax | (629) | 572 | (1,892) | 4,915 |
Other Comprehensive Income, Tax Effect [Abstract] | ||||
Unrealized holding gains (losses) arising during the period, tax effect | (133) | 120 | (397) | 1,071 |
Reclassification adjustment for gains recognized in income, tax effect | 0 | 0 | 0 | (39) |
Total change in accumulated other comprehensive income, net, tax effect | (133) | 120 | (397) | 1,032 |
Other Comprehensive Income, Net of Tax [Abstract] | ||||
Net unrealized gains (losses) on available-for-sale securities | (497) | 453 | (1,495) | 4,029 |
Reclassification adjustment for gains recognized in income, net of tax | 0 | (1) | 0 | (146) |
Other comprehensive income (loss), net of tax | (497) | 452 | (1,495) | 3,883 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||||
Stockholders Equity Note [Abstract] | ||||
Beginning Balance | 3,071 | 3,352 | 4,069 | (79) |
Net other comprehensive income (loss) | (497) | 452 | (1,495) | 3,883 |
Ending Balance | 2,574 | 3,804 | 2,574 | 3,804 |
Accumulated Other Comprehensive Income [Member] | ||||
Stockholders Equity Note [Abstract] | ||||
Beginning Balance | 3,071 | 3,352 | 4,069 | (79) |
Net other comprehensive income (loss) | (497) | 452 | (1,495) | 3,883 |
Ending Balance | 2,574 | 3,804 | 2,574 | 3,804 |
Other Comprehensive Income, Net of Tax [Abstract] | ||||
Other comprehensive income (loss), net of tax | $ (497) | $ 452 | $ (1,495) | $ 3,883 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings per Share, Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2021 | Sep. 30, 2020 | Sep. 30, 2021 | Sep. 30, 2020 | |
Computation of earnings per share [Abstract] | ||||
Net Income Available to Common Stockholders, Basic | $ 1,908 | $ 1,100 | $ 6,762 | $ 4,844 |
Net Income Available to Common Stockholders, Diluted | $ 1,908 | $ 1,100 | $ 6,762 | $ 4,844 |
Weighted Average Common Shares, Basic (in shares) | 5,245,042 | 5,221,476 | 5,235,749 | 5,213,982 |
Potentially dilutive common shares - employee stock purchase program (in shares) | 0 | 1,000 | 0 | 0 |
Weighted Average Common Shares, Diluted (in shares) | 5,245,172 | 5,221,601 | 5,235,793 | 5,214,262 |
Earnings Per Share, Basic (in dollars per share) | $ 0.36 | $ 0.21 | $ 1.29 | $ 0.93 |
Earnings Per Share, Diluted (in dollars per share) | $ 0.36 | $ 0.21 | $ 1.29 | $ 0.93 |
Stock Options [Member] | ||||
Earnings Per Share [Abstract] | ||||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | $ 212,440 | $ 186,409 |
Loans held for sale | 5,740 | 14,413 |
U.S. Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 9,002 | 7,043 |
Obligations of U.S. Government Agencies [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 37,768 | 36,696 |
Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 52,821 | 45,995 |
Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 85,913 | 73,501 |
Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 3,799 | 4,743 |
Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 212,440 | 186,409 |
Recurring [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 9,002 | 7,043 |
Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 37,768 | 36,696 |
Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 52,821 | 45,995 |
Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 85,913 | 73,501 |
Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 3,799 | 4,743 |
Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 23,137 | 18,431 |
Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans held for sale | 5,740 | 14,413 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans held for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 212,440 | 186,409 |
Loans held for sale | 5,740 | 14,413 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 212,440 | 186,409 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 9,002 | 7,043 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 37,768 | 36,696 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 52,821 | 45,995 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 85,913 | 73,501 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 3,799 | 4,743 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 23,137 | 18,431 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans held for sale | 5,740 | 14,413 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Loans held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Debt securities, available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis, Alternative [Abstract] | ||
Loans held for sale | $ 0 | $ 0 |
Fair Value Measurements, Estima
Fair Value Measurements, Estimated Fair Values and Related Carrying or Notional Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 184,304 | $ 120,437 |
Securities available-for-sale, at fair value | 212,440 | 186,409 |
Restricted securities | 1,034 | 1,367 |
Loans held for sale | 5,740 | 14,413 |
Loans, net of allowances for loan losses | 830,467 | 826,759 |
Bank owned life insurance | 29,012 | 28,386 |
Accrued interest receivable | 3,308 | 3,613 |
Liabilities [Abstract] | ||
Deposits | 1,150,706 | 1,067,236 |
Overnight repurchase agreements | 4,496 | 6,619 |
Federal Reserve Bank borrowings | 898 | 28,550 |
Long term borrowings | 29,374 | |
Other borrowings | 1,350 | |
Accrued interest payable | 456 | 384 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 184,304 | 120,437 |
Securities available-for-sale, at fair value | 0 | 0 |
Restricted securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowances for loan losses | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Overnight repurchase agreements | 0 | 0 |
Federal Reserve Bank borrowings | 0 | 0 |
Long term borrowings | 0 | |
Other borrowings | 0 | |
Accrued interest payable | 0 | 0 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 212,440 | 186,409 |
Restricted securities | 1,034 | 1,367 |
Loans held for sale | 5,740 | 14,413 |
Loans, net of allowances for loan losses | 0 | 0 |
Bank owned life insurance | 29,012 | 28,386 |
Accrued interest receivable | 3,308 | 3,613 |
Liabilities [Abstract] | ||
Deposits | 1,153,293 | 1,070,236 |
Overnight repurchase agreements | 4,496 | 6,619 |
Federal Reserve Bank borrowings | 898 | 28,550 |
Long term borrowings | 29,424 | |
Other borrowings | 1,350 | |
Accrued interest payable | 456 | 384 |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 0 | 0 |
Restricted securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowances for loan losses | 831,464 | 826,083 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Overnight repurchase agreements | 0 | 0 |
Federal Reserve Bank borrowings | 0 | 0 |
Long term borrowings | 0 | |
Other borrowings | 0 | |
Accrued interest payable | $ 0 | $ 0 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2021USD ($) | Sep. 30, 2020USD ($) | Sep. 30, 2021USD ($)Segment | Sep. 30, 2020USD ($) | Dec. 31, 2020USD ($) | |
Segment Reporting [Abstract] | |||||
Number of principal business segments | Segment | 3 | ||||
Revenues [Abstract] | |||||
Interest and dividend income | $ 10,815 | $ 9,737 | $ 31,652 | $ 29,571 | |
Total operating income | 14,421 | 13,394 | 42,930 | 40,464 | |
Expenses [Abstract] | |||||
Interest expense | 939 | 1,269 | 2,514 | 4,212 | |
Provision for loan losses | 360 | 300 | 510 | 900 | $ 1,000 |
Salaries and employee benefits | 6,558 | 6,660 | 19,012 | 18,118 | |
Other expenses | 4,370 | 4,004 | 13,009 | 11,780 | |
Total operating expenses | 12,227 | 12,233 | 35,045 | 35,010 | |
Income before income taxes | 2,194 | 1,161 | 7,885 | 5,454 | |
Income tax expense (benefit) | 286 | 61 | 1,123 | 610 | |
Net income | 1,908 | 1,100 | 6,762 | 4,844 | |
Capital expenditures | 370 | 96 | 1,130 | 758 | |
Total assets | 1,311,626 | 1,256,093 | 1,311,626 | 1,256,093 | $ 1,226,191 |
Income from Fiduciary Activities [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 1,032 | 955 | 3,110 | 2,881 | |
Other Income [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 2,574 | 2,702 | 8,168 | 8,012 | |
Operating Segments [Member] | Bank [Member] | |||||
Revenues [Abstract] | |||||
Interest and dividend income | 10,809 | 9,732 | 31,635 | 29,532 | |
Total operating income | 13,150 | 12,215 | 39,061 | 36,821 | |
Expenses [Abstract] | |||||
Interest expense | 688 | 1,258 | 2,258 | 4,167 | |
Provision for loan losses | 360 | 300 | 510 | 900 | |
Salaries and employee benefits | 5,644 | 5,746 | 16,263 | 15,305 | |
Other expenses | 4,077 | 3,752 | 12,139 | 10,886 | |
Total operating expenses | 10,769 | 11,056 | 31,170 | 31,258 | |
Income before income taxes | 2,381 | 1,159 | 7,891 | 5,563 | |
Income tax expense (benefit) | 325 | 61 | 1,123 | 631 | |
Net income | 2,056 | 1,098 | 6,768 | 4,932 | |
Capital expenditures | 370 | 86 | 1,089 | 742 | |
Total assets | 1,304,291 | 1,249,144 | 1,304,291 | 1,249,144 | |
Operating Segments [Member] | Bank [Member] | Income from Fiduciary Activities [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Bank [Member] | Other Income [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 2,341 | 2,483 | 7,426 | 7,289 | |
Operating Segments [Member] | Trust [Member] | |||||
Revenues [Abstract] | |||||
Interest and dividend income | 6 | 6 | 17 | 40 | |
Total operating income | 1,287 | 1,195 | 3,915 | 3,690 | |
Expenses [Abstract] | |||||
Interest expense | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Salaries and employee benefits | 746 | 760 | 2,253 | 2,315 | |
Other expenses | 257 | 249 | 788 | 827 | |
Total operating expenses | 1,003 | 1,009 | 3,041 | 3,142 | |
Income before income taxes | 284 | 186 | 874 | 548 | |
Income tax expense (benefit) | 59 | 39 | 184 | 117 | |
Net income | 225 | 147 | 690 | 431 | |
Capital expenditures | 0 | 10 | 41 | 16 | |
Total assets | 7,222 | 6,961 | 7,222 | 6,961 | |
Operating Segments [Member] | Trust [Member] | Income from Fiduciary Activities [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 1,032 | 955 | 3,110 | 2,881 | |
Operating Segments [Member] | Trust [Member] | Other Income [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 249 | 234 | 788 | 769 | |
Operating Segments [Member] | Parent [Member] | |||||
Revenues [Abstract] | |||||
Interest and dividend income | 2,281 | 1,244 | 7,458 | 5,362 | |
Total operating income | 2,331 | 1,294 | 7,608 | 5,512 | |
Expenses [Abstract] | |||||
Interest expense | 251 | 11 | 256 | 45 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Salaries and employee benefits | 168 | 154 | 496 | 498 | |
Other expenses | 102 | 68 | 278 | 263 | |
Total operating expenses | 521 | 233 | 1,030 | 806 | |
Income before income taxes | 1,810 | 1,061 | 6,578 | 4,706 | |
Income tax expense (benefit) | (98) | (39) | (184) | (138) | |
Net income | 1,908 | 1,100 | 6,762 | 4,844 | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Total assets | 150,442 | 118,423 | 150,442 | 118,423 | |
Operating Segments [Member] | Parent [Member] | Income from Fiduciary Activities [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 0 | 0 | 0 | 0 | |
Operating Segments [Member] | Parent [Member] | Other Income [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 50 | 50 | 150 | 150 | |
Eliminations [Member] | |||||
Revenues [Abstract] | |||||
Interest and dividend income | (2,281) | (1,245) | (7,458) | (5,363) | |
Total operating income | (2,347) | (1,310) | (7,654) | (5,559) | |
Expenses [Abstract] | |||||
Interest expense | 0 | 0 | 0 | 0 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Salaries and employee benefits | 0 | 0 | 0 | 0 | |
Other expenses | (66) | (65) | (196) | (196) | |
Total operating expenses | (66) | (65) | (196) | (196) | |
Income before income taxes | (2,281) | (1,245) | (7,458) | (5,363) | |
Income tax expense (benefit) | 0 | 0 | 0 | 0 | |
Net income | (2,281) | (1,245) | (7,458) | (5,363) | |
Capital expenditures | 0 | 0 | 0 | 0 | |
Total assets | (150,329) | (118,435) | (150,329) | (118,435) | |
Eliminations [Member] | Income from Fiduciary Activities [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | 0 | 0 | 0 | 0 | |
Eliminations [Member] | Other Income [Member] | |||||
Revenues [Abstract] | |||||
Noninterest revenue | $ (66) | $ (65) | $ (196) | $ (196) |