Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2019 | Apr. 30, 2019 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | AMERICAN NATIONAL BANKSHARES INC. | |
Entity Central Index Key | 0000741516 | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 11,168,096 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2019 | |
Emerging Growth Company | false | |
Small Business | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | [1] |
Assets | |||
Cash and due from banks | $ 28,912 | $ 29,587 | |
Interest-bearing deposits in other banks | 41,949 | 34,668 | |
Equity securities, at fair value | 2,069 | 1,830 | |
Securities available for sale, at fair value | 324,289 | 332,653 | |
Restricted stock, at cost | 5,299 | 5,247 | |
Loans held for sale | 1,252 | 640 | |
Loans, net of unearned income | 1,360,063 | 1,357,476 | |
Less allowance for loan losses | (12,806) | (12,805) | |
Net loans | 1,347,257 | 1,344,671 | |
Premises and equipment, net | 26,663 | 26,675 | |
Other real estate owned, net of valuation allowance of $108 in 2019 and $109 in 2018 | 646 | 869 | |
Goodwill | 43,872 | 43,872 | |
Core deposit intangibles, net | 871 | 926 | |
Bank owned life insurance | 19,047 | 18,941 | |
Accrued interest receivable and other assets | 26,278 | 22,287 | |
Total assets | 1,868,404 | 1,862,866 | |
Liabilities | |||
Demand deposits -- noninterest bearing | 425,579 | 435,828 | |
Demand deposits -- interest bearing | 242,802 | 234,621 | |
Money market deposits | 379,668 | 401,461 | |
Savings deposits | 135,289 | 132,360 | |
Time deposits | 376,452 | 361,957 | |
Total deposits | 1,559,790 | 1,566,227 | |
Customer repurchase agreements | 35,945 | 35,243 | |
Junior subordinated debt | 27,953 | 27,927 | |
Accrued interest payable and other liabilities | 15,243 | 10,927 | |
Total liabilities | 1,638,931 | 1,640,324 | |
Shareholders' equity | |||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | 0 | 0 | |
Common stock, $1 par, 20,000,000 shares authorized, 8,756,569 shares outstanding at March 31, 2019 and 8,720,337 shares outstanding at December 31, 2018 | 8,705 | 8,668 | |
Capital in excess of par value | 78,738 | 78,172 | |
Retained earnings | 145,351 | 141,537 | |
Accumulated other comprehensive loss, net | (3,321) | (5,835) | |
Total shareholders' equity | 229,473 | 222,542 | |
Total liabilities and shareholders' equity | $ 1,868,404 | $ 1,862,866 | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Valuation allowance | $ 108 | $ 109 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, shares authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, shares outstanding (in shares) | 8,756,569 | 8,720,337 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Interest and Dividend Income: | ||
Interest and fees on loans | $ 15,638 | $ 14,657 |
Interest and dividends on securities: | ||
Taxable | 1,821 | 1,324 |
Tax-exempt | 287 | 419 |
Dividends | 84 | 80 |
Other interest income | 266 | 188 |
Total interest and dividend income | 18,096 | 16,668 |
Interest Expense: | ||
Interest on deposits | 2,472 | 1,825 |
Interest on short-term borrowings | 172 | 10 |
Interest on junior subordinated debt | 384 | 290 |
Total interest expense | 3,028 | 2,125 |
Net Interest Income | 15,068 | 14,543 |
Provision for (recovery of) loan losses | 16 | (44) |
Net Interest Income After Provision for Loan Losses | 15,052 | 14,587 |
Noninterest Income: | ||
Trust fees | 914 | 929 |
Service charges on deposit accounts | 594 | 612 |
Other fees and commissions | 708 | 642 |
Mortgage banking income | 406 | 450 |
Securities gains, net | 323 | 121 |
Brokerage fees | 147 | 222 |
Income from Small Business Investment Companies | 168 | 155 |
Other | 191 | 202 |
Total noninterest income | 3,451 | 3,333 |
Noninterest Expense: | ||
Salaries | 4,664 | 4,997 |
Employee benefits | 1,230 | 1,175 |
Occupancy and equipment | 1,084 | 1,128 |
FDIC assessment | 125 | 146 |
Bank franchise tax | 290 | 281 |
Core deposit intangible amortization | 55 | 77 |
Data processing | 532 | 422 |
Software | 324 | 305 |
Other real estate owned, net | 13 | 30 |
Merger related expense | 451 | 0 |
Other | 2,161 | 2,141 |
Total noninterest expense | 10,929 | 10,702 |
Income Before Income Taxes | 7,574 | 7,218 |
Income Taxes | 1,571 | 1,406 |
Net Income | $ 6,003 | $ 5,812 |
Net Income Per Common Share: | ||
Basic (in dollars per share) | $ 0.69 | $ 0.67 |
Diluted (in dollars per share) | $ 0.69 | $ 0.67 |
Weighted Average Common Shares Outstanding: | ||
Basic (in shares) | 8,745,174 | 8,669,728 |
Diluted (in shares) | 8,745,723 | 8,687,351 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 6,003 | $ 5,812 |
Other comprehensive income (loss): | ||
Unrealized gains (losses) on securities available for sale | 3,969 | (3,734) |
Tax effect | (889) | 861 |
Reclassification adjustment for gains on sales of securities available for sale | (4) | (8) |
Tax effect | 1 | 2 |
Unrealized gains on cash flow hedges | (725) | |
Unrealized losses on cash flow hedges | 0 | |
Tax effect | 162 | |
Tax effect | 0 | |
Other comprehensive income (loss) | 2,514 | (2,879) |
Comprehensive income | $ 8,517 | $ 2,933 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | |
Beginning Balance at Dec. 31, 2017 | $ 208,717 | $ 8,604 | $ 76,179 | $ 127,010 | $ (3,076) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 5,812 | 5,812 | ||||
Other comprehensive income (loss) | (2,879) | (2,879) | ||||
Stock options exercised | 85 | 3 | 82 | |||
Vesting of restricted stock | 0 | 10 | (10) | |||
Equity based compensation | 278 | 4 | 274 | |||
Cash dividends paid | (2,173) | (2,173) | ||||
Ending Balance at Mar. 31, 2018 | 209,840 | 8,621 | 76,525 | 131,299 | (6,605) | |
Beginning Balance at Dec. 31, 2018 | 222,542 | [1] | 8,668 | 78,172 | 141,537 | (5,835) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 6,003 | 6,003 | ||||
Other comprehensive income (loss) | 2,514 | 2,514 | ||||
Stock options exercised | 290 | 13 | 277 | |||
Vesting of restricted stock | 0 | 20 | (20) | |||
Equity based compensation | 313 | 4 | 309 | |||
Cash dividends paid | (2,189) | (2,189) | ||||
Ending Balance at Mar. 31, 2019 | $ 229,473 | $ 8,705 | $ 78,738 | $ 145,351 | $ (3,321) | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Stock options exercised (in shares) | 13,200 | 3,300 |
Vesting of restricted stock (in shares) | 20,285 | 10,101 |
Equity-based compensation (in shares) | 23,032 | 21,186 |
Cash dividends paid (in dollars per share) | $ 0.25 | $ 0.25 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | |||
Net income | $ 6,003 | $ 5,812 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for (recovery of) loan losses | 16 | (44) | $ (103) |
Depreciation | 405 | 466 | |
Net accretion of acquisition accounting adjustments | (255) | (427) | |
Core deposit intangible amortization | 55 | 77 | |
Net amortization of securities | 312 | 430 | |
Net gain on sale or call of securities available for sale | (4) | (8) | |
Net change in fair value of equity securities | (319) | (113) | |
Gain on sale of loans held for sale | (406) | (450) | |
Proceeds from sales of loans held for sale | 15,366 | 17,947 | |
Originations of loans held for sale | (15,572) | (17,650) | |
Net gain on other real estate owned | (8) | (6) | |
Valuation allowance on other real estate owned | 6 | 0 | |
Net gain on sale of premises and equipment | 0 | (3) | |
Equity based compensation expense | 313 | 278 | |
Earnings on bank owned life insurance | (106) | (106) | |
Deferred income tax expense (benefit) | 222 | (2) | |
Net change in interest receivable | 76 | 286 | |
Net change in other assets | (602) | (644) | |
Net change in interest payable | 51 | 24 | |
Net change in other liabilities | (873) | 59 | |
Net cash provided by operating activities | 4,680 | 5,926 | |
Cash Flows from Investing Activities: | |||
Proceeds from sales of equity securities | 80 | 0 | |
Proceeds from sales of securities available for sale | 0 | 22,066 | |
Proceeds from maturities, calls and paydowns of securities available for sale | 18,586 | 9,824 | |
Purchases of securities available for sale | (6,565) | (27,272) | |
Net change in restricted stock | (52) | ||
Net change in restricted stock | 889 | ||
Net (increase) decrease in loans | (2,321) | ||
Net (increase) decrease in loans | 14,840 | ||
Proceeds from sale of premises and equipment | 0 | 24 | |
Purchases of premises and equipment | (393) | (345) | |
Proceeds from sales of other real estate owned | 225 | 47 | |
Net cash provided by investing activities | 9,560 | 20,073 | |
Cash Flows from Financing Activities: | |||
Net change in demand, money market, and savings deposits | (20,932) | 26,591 | |
Net change in time deposits | 14,495 | (2,066) | |
Net change in customer repurchase agreements | 702 | (260) | |
Net change in other short-term borrowings | 0 | (24,000) | |
Common stock dividends paid | (2,189) | (2,173) | |
Proceeds from exercise of stock options | 290 | 85 | |
Net cash used in financing activities | (7,634) | (1,823) | |
Net Increase in Cash and Cash Equivalents | 6,606 | 24,176 | |
Cash and Cash Equivalents at Beginning of Period | 64,255 | 52,477 | 52,477 |
Cash and Cash Equivalents at End of Period | $ 70,861 | $ 76,653 | $ 64,255 |
Accounting Policies
Accounting Policies | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Accounting Policies | Accounting Policies The consolidated financial statements include the accounts of American National Bankshares Inc. (the "Company") and its wholly owned subsidiary, American National Bank and Trust Company (the "Bank"). The Bank offers a wide variety of retail, commercial, secondary market mortgage lending, and trust and investment services which also include non-deposit products such as mutual funds and insurance policies. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, goodwill and intangible assets, unfunded pension liability, other-than-temporary impairment of securities, accounting for merger and acquisition activity, derivative financial instruments, accounting for acquired loans with specific credit-related deterioration, the valuation of deferred tax assets and liabilities, and the valuation of other real estate owned ("OREO"). All significant inter-company transactions and accounts are eliminated in consolidation, with the exception of the AMNB Trust and the MidCarolina Trusts, as detailed in Note 9. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the results of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results that may occur for any other period. Certain reclassifications have been made to prior period balances to conform to the current period presentation. These reclassifications did not have an impact on net income and were considered immaterial. These statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2018 . Adoption of New Accounting Standards On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)." Among other things, in the amendments in ASU 2016-02, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Financial Accounting Standards Board ("FASB") made subsequent amendments to Topic 842 in July 2018 through ASU 2018-10 ("Codification Improvements to Topic 842, Leases.") and ASU 2018-11 ("Leases (Topic 842): Targeted Improvements."). Among these amendments is the provision in ASU 2018-11 that provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard continue to be in accordance with current GAAP (Topic 840, Leases). The Company adopted using the additional (and optional) transition method. The effect of adopting this standard on January 1, 2019 was an approximately $4.4 million increase in assets and liabilities on the Company's consolidated balance sheet. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 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 amendments in this ASU are effective for Securities and Exchange Commission ("SEC") filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company has implemented and completed a significant amount of a project plan addressing the components of this ASU with the assistance of an outside vendor. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this ASU modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: the projected benefit obligation ("PBO") and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation ("ABO") and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently assessing the impact that ASU 2018-14 will have on its consolidated financial statements. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of investments in debt securities at March 31, 2019 were as follows (dollars in thousands): March 31, 2019 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 132,087 $ 905 $ 2,020 $ 130,972 Mortgage-backed and CMOs 108,999 725 1,247 108,477 State and municipal 77,560 609 199 77,970 Corporate 6,799 75 4 6,870 Total securities available for sale $ 325,445 $ 2,314 $ 3,470 $ 324,289 The Company adopted ASU 2016-01 effective January 1, 2018 and had equity securities with a fair value of $2,069,000 at March 31, 2019 and recognized in income a $319,000 change in the fair value of equity securities during the first three months of 2019 . During the three months ended March 31, 2019 , the Company sold $80,000 in equity securities at fair value. The Company had equity securities with a fair value of $2,320,000 at March 31, 2018 and recognized in income a $113,000 change in the fair value of equity securities during the first quarter of 2018 . The amortized cost and fair value of investments in debt securities at December 31, 2018 were as follows (dollars in thousands): December 31, 2018 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 137,070 $ 442 $ 3,473 $ 134,039 Mortgage-backed and CMOs 113,883 385 2,401 111,867 State and municipal 80,022 411 531 79,902 Corporate 6,799 68 22 6,845 Total securities available for sale $ 337,774 $ 1,306 $ 6,427 $ 332,653 Restricted Stock Due to restrictions placed upon the Bank's common stock investment in the Federal Reserve Bank of Richmond ("FRB") and Federal Home Loan Bank of Atlanta ("FHLB"), these securities have been classified as restricted equity securities and carried at cost. The restricted securities are not subject to the investment security classification and are included as a separate line item on the Company's consolidated balance sheets. The FRB requires the Bank to maintain stock with a par value equal to 3.00% of its outstanding capital and an additional 3.00% is on call. The FHLB requires the Bank to maintain stock in an amount equal to 4.25% of outstanding borrowings and a specific percentage of the Bank's total assets. The cost of restricted stock at March 31, 2019 and December 31, 2018 was as follows (dollars in thousands): March 31, 2019 December 31, 2018 FRB stock $ 3,631 $ 3,621 FHLB stock 1,668 1,626 Total restricted stock $ 5,299 $ 5,247 Temporarily Impaired Securities The following table shows estimated fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 . The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period. Available for sale securities that have been in a continuous unrealized loss position, at March 31, 2019 , are as follows (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 90,268 $ 2,020 $ — $ — $ 90,268 $ 2,020 Mortgage-backed and CMOs 78,494 1,247 244 1 78,250 1,246 State and municipal 28,916 199 2,250 2 26,666 197 Corporate 495 4 — — 495 4 Total $ 198,173 $ 3,470 $ 2,494 $ 3 $ 195,679 $ 3,467 Federal agencies and GSEs: The unrealized losses on the Company's investment in 20 government sponsored entities ("GSE") securities were caused by interest rate increases. Twenty of these securities were in an unrealized loss position for 12 months or more. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not 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 those investments to be other-than-temporarily impaired at March 31, 2019 . Mortgage-backed securities: The unrealized losses on the Company's investment in 65 GSE mortgage-backed securities were caused by interest rate increases. Fifty-nine of these securities were in an unrealized loss position for 12 months or more. The contractual cash flows of those investments are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the securities would not be settled at a price less than the amortized cost basis of the Company's investments. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not 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 those investments to be other-than-temporarily impaired at March 31, 2019 . Collateralized Mortgage Obligations: The unrealized loss associated with one private GSE collateralized mortgage obligation ("CMO") was due to normal market fluctuations. This one security was in an unrealized loss position for 12 months or more. The contractual cash flows of that investment is guaranteed by an agency of the U.S. Government. Accordingly, it is expected that the security would not be settled at a price less than the amortized cost basis of the Company's investment. Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity, the Company does not consider the investment to be other-than-temporarily impaired at March 31, 2019 . State and municipal securities: The unrealized losses on 43 state and municipal securities were caused by interest rate increases. Thirty-nine of these securities were in an unrealized loss position for 12 months or more. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not 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 those investments to be other-than-temporarily impaired at March 31, 2019 . Corporate securities: The unrealized loss on one corporate security was caused by interest rate increases. This one security was in an unrealized loss position for 12 months or more. The contractual terms of the investment do not permit the issuer to settle the security at a price less than the amortized cost basis of the investment. Because the Company does not intend to sell the investment and it is not more likely than not that the Company will be required to sell the investment before recovery of its amortized cost basis, which may be maturity, the Company does not consider the investment to be other-than-temporarily impaired at March 31, 2019 . Restricted stock: When evaluating restricted stock for impairment, its value is based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. The Company does not consider restricted stock to be other-than-temporarily impaired at March 31, 2019 , and no impairment has been recognized. The table below shows estimated fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2018 (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 103,797 $ 3,473 $ 14,982 $ 8 $ 88,815 $ 3,465 Mortgage-backed and CMOs 86,852 2,401 5,473 15 81,379 2,386 State and municipal 39,755 531 7,199 18 32,556 513 Corporate 484 22 — — 484 22 Total $ 230,888 $ 6,427 $ 27,654 $ 41 $ 203,234 $ 6,386 Other-Than-Temporarily-Impaired Securities As of March 31, 2019 and December 31, 2018 , there were no securities classified as other-than-temporarily impaired. Realized Gains and Losses The following table presents the gross realized gains and losses on and the proceeds from the sale of securities available for sale during the three months ended March 31, 2019 and 2018 (dollars in thousands): Three Months Ended March 31, 2019 Realized gains (losses): Gross realized gains $ — Gross realized losses — Net realized gains $ — Proceeds from sales of securities $ — Three Months Ended March 31, 2018 Realized gains (losses): Gross realized gains $ 105 Gross realized losses (97 ) Net realized gains $ 8 Proceeds from sales of securities $ 22,066 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans Loans, excluding loans held for sale, at March 31, 2019 and December 31, 2018 , were comprised of the following (dollars in thousands): March 31, 2019 December 31, 2018 Commercial $ 289,301 $ 285,972 Commercial real estate: Construction and land development 93,759 97,240 Commercial real estate 659,133 655,800 Residential real estate: Residential 212,665 209,438 Home equity 99,979 103,933 Consumer 5,226 5,093 Total loans $ 1,360,063 $ 1,357,476 Acquired Loans The outstanding principal balance and the carrying amount of these loans, including loans accounted for under FASB Accounting Standards Codification ("ASC") 310-30, included in the consolidated balance sheets at March 31, 2019 and December 31, 2018 are as follows (dollars in thousands): March 31, 2019 December 31, 2018 Outstanding principal balance $ 60,069 $ 63,619 Carrying amount 55,492 58,886 The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies ASC 310-30 to account for interest earned, as of the indicated dates are as follows (dollars in thousands): March 31, 2019 December 31, 2018 Outstanding principal balance $ 23,150 $ 24,500 Carrying amount 19,339 20,611 The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies FASB ASC 310-30, for the three months ended March 31, 2019 and the year ended December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Balance at January 1 $ 4,633 $ 4,890 Accretion (530 ) (2,362 ) Reclassification from nonaccretable difference 117 956 Other changes, net* 42 1,149 $ 4,262 $ 4,633 * This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate acquired impaired loans, and discounted payoffs that occurred in the period. Past Due Loans The following table shows an analysis by portfolio segment of the Company's past due loans at March 31, 2019 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 1,002 $ — $ — $ 37 $ 1,039 $ 288,262 $ 289,301 Commercial real estate: Construction and land development — — — 26 26 93,733 93,759 Commercial real estate 305 — — 221 526 658,607 659,133 Residential: Residential 382 89 197 750 1,418 211,247 212,665 Home equity 84 91 — 76 251 99,728 99,979 Consumer 19 1 — 1 21 5,205 5,226 Total $ 1,792 $ 181 $ 197 $ 1,111 $ 3,281 $ 1,356,782 $ 1,360,063 The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2018 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 20 $ — $ — $ 83 $ 103 $ 285,869 $ 285,972 Commercial real estate: Construction and land development — — — 27 27 97,213 97,240 Commercial real estate 42 — — 197 239 655,561 655,800 Residential: Residential 456 157 72 659 1,344 208,094 209,438 Home equity 126 — — 124 250 103,683 103,933 Consumer 21 3 — — 24 5,069 5,093 Total $ 665 $ 160 $ 72 $ 1,090 $ 1,987 $ 1,355,489 $ 1,357,476 Impaired Loans The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at March 31, 2019 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ — $ — $ — $ 14 $ — Commercial real estate: Construction and land development — — — — — Commercial real estate 362 360 — 369 7 Residential: Residential 634 634 — 640 7 Home equity 47 47 — 48 2 Consumer — — — — — $ 1,043 $ 1,041 $ — $ 1,071 $ 16 With a related allowance recorded: Commercial $ 59 $ 55 $ 53 $ 57 $ 1 Commercial real estate: Construction and land development — — — — — Commercial real estate — — — — — Residential Residential 171 171 9 176 2 Home equity — — — — — Consumer — — — — — $ 230 $ 226 $ 62 $ 233 $ 3 Total: Commercial $ 59 $ 55 $ 53 $ 71 $ 1 Commercial real estate: Construction and land development — — — — — Commercial real estate 362 360 — 369 7 Residential: Residential 805 805 9 816 9 Home equity 47 47 — 48 2 Consumer — — — — — $ 1,273 $ 1,267 $ 62 $ 1,304 $ 19 In the table above, recorded investment may exceed unpaid principal balance due to acquired loans with a premium and loans with unearned costs that exceed unearned fees. The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at December 31, 2018 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 28 $ 28 $ — $ 44 $ 14 Commercial real estate: Construction and land development — — — — — Commercial real estate 376 373 — 542 36 Residential: Residential 646 646 — 875 29 Home equity 49 49 — 108 10 Consumer — — — 2 — $ 1,099 $ 1,096 $ — $ 1,571 $ 89 With a related allowance recorded: Commercial $ 62 $ 58 $ 55 $ 354 $ 40 Commercial real estate: Construction and land development — — — 21 — Commercial real estate — — — 18 — Residential: Residential 173 173 9 342 9 Home equity — — — 128 1 Consumer — — — — — $ 235 $ 231 $ 64 $ 863 $ 50 Total: Commercial $ 90 $ 86 $ 55 $ 398 $ 54 Commercial real estate: Construction and land development — — — 21 — Commercial real estate 376 373 — 560 36 Residential: Residential 819 819 9 1,217 38 Home equity 49 49 — 236 11 Consumer — — — 2 — $ 1,334 $ 1,327 $ 64 $ 2,434 $ 139 In the table above, recorded investment may exceed unpaid principal balance due to acquired loans with a premium and loans with unearned costs that exceed unearned fees. There were no troubled debt restructurings ("TDRs") modified during the three months ended March 31, 2019 . The following tables show the detail of loans modified as TDRs during the three months ended March 31, 2018 included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Three Months Ended March 31, 2018 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate 1 11 11 Consumer — — — Total 1 $ 11 $ 11 During the three months ended March 31, 2019 and 2018 , the Company had no loans that subsequently defaulted within 12 months of modification. The Company defines defaults as one or more payments that occur more than 90 days past the due date, charge-off or foreclosure subsequent to modification. Residential Real Estate in Process of Foreclosure The Company had $98,000 and $112,000 in residential real estate loans in the process of foreclosure at March 31, 2019 and December 31, 2018 , respectively. The Company had $ 514,000 and $ 719,000 in residential OREO at March 31, 2019 and December 31, 2018 , respectively. Risk Grades The following table shows the Company's loan portfolio broken down by internal risk grading as of March 31, 2019 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Residential Home Pass $ 285,940 $ 91,200 $ 651,835 $ 207,747 $ 99,640 Special Mention 1,768 — 3,911 1,152 — Substandard 1,593 2,559 3,387 3,766 339 Doubtful — — — — — Total $ 289,301 $ 93,759 $ 659,133 $ 212,665 $ 99,979 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,224 Nonperforming 2 Total $ 5,226 The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2018 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Residential Home Pass $ 285,092 $ 93,000 $ 647,519 $ 204,261 $ 103,541 Special Mention 154 1,840 4,403 1,685 — Substandard 726 2,400 3,878 3,492 392 Doubtful — — — — — Total $ 285,972 $ 97,240 $ 655,800 $ 209,438 $ 103,933 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,093 Nonperforming — Total $ 5,093 Loans classified in the Pass category typically are fundamentally sound and risk factors are reasonable and acceptable. Loans classified in the Special Mention category typically have been criticized internally, by loan review or the loan officer, or by external regulators under the current credit policy regarding risk grades. Loans classified in the Substandard category typically have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are typically characterized by the possibility that the Bank will sustain some loss if the deficiencies are not corrected. Loans classified in the Doubtful category typically have all the weaknesses inherent in loans classified as substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. However, these loans are not yet rated as loss because certain events may occur that may salvage the debt. Consumer loans are classified as performing or nonperforming. A loan is nonperforming when payments of interest and principal are past due 90 days or more, or payments are less than 90 days past due, but there are other good reasons to doubt that payment will be made in full. |
Allowance for Loan Losses and R
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | Allowance for Loan Losses and Reserve for Unfunded Lending Commitments Changes in the allowance for loan losses and the reserve for unfunded lending commitments at and for the indicated dates and periods are presented below (dollars in thousands): Three Months Ended Year Ended December 31, 2018 Three Months Ended Allowance for Loan Losses Balance, beginning of period $ 12,805 $ 13,603 $ 13,603 Provision for (recovery of) loan losses 16 (103 ) (44 ) Charge-offs (69 ) (1,020 ) (44 ) Recoveries 54 325 60 Balance, end of period $ 12,806 $ 12,805 $ 13,575 Reserve for Unfunded Lending Commitments Balance, beginning of period $ 217 $ 206 $ 206 Provision for unfunded commitments 12 11 5 Charge-offs — — — Balance, end of period $ 229 $ 217 $ 211 The reserve for unfunded loan commitments is included in other liabilities. The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the three months ended March 31, 2019 (dollars in thousands): Commercial Commercial Residential Consumer Total Allowance for Loan Losses Balance at December 31, 2018: $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Provision for (recovery of) loan losses 246 (199 ) (32 ) 1 16 Charge-offs (11 ) (6 ) (20 ) (32 ) (69 ) Recoveries 7 — 13 34 54 Balance at March 31, 2019: $ 2,779 $ 7,041 $ 2,938 $ 48 $ 12,806 Balance at March 31, 2019: Allowance for Loan Losses Individually evaluated for impairment $ 53 $ — $ 9 $ — $ 62 Collectively evaluated for impairment 2,726 7,003 2,769 48 12,546 Acquired impaired loans — 38 160 — 198 Total $ 2,779 $ 7,041 $ 2,938 $ 48 $ 12,806 Loans Individually evaluated for impairment $ 59 $ 362 $ 852 $ — $ 1,273 Collectively evaluated for impairment 288,846 742,900 302,494 5,211 1,339,451 Acquired impaired loans 396 9,630 9,298 15 19,339 Total $ 289,301 $ 752,892 $ 312,644 $ 5,226 $ 1,360,063 The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the year ended December 31, 2018 (dollars in thousands): Commercial Commercial Residential Consumer Total Allowance for Loan Losses Balance at December 31, 2017: $ 2,413 $ 8,321 $ 2,825 $ 44 $ 13,603 Provision for (recovery of) loan losses 842 (1,074 ) 89 40 (103 ) Charge-offs (787 ) (11 ) (86 ) (136 ) (1,020 ) Recoveries 69 10 149 97 325 Balance at December 31, 2018: $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Balance at December 31, 2018: Allowance for Loan Losses Individually evaluated for impairment $ 55 $ — $ 9 $ — $ 64 Collectively evaluated for impairment 2,482 7,211 2,822 45 12,560 Acquired impaired loans — 35 146 — 181 Total $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Loans Individually evaluated for impairment $ 90 $ 376 $ 868 $ — $ 1,334 Collectively evaluated for impairment 285,431 742,365 302,657 5,078 1,335,531 Acquired impaired loans 451 10,299 9,846 15 20,611 Total $ 285,972 $ 753,040 $ 313,371 $ 5,093 $ 1,357,476 The allowance for loan losses is allocated to loan segments based upon historical loss factors, risk grades on individual loans, and qualitative factors. Qualitative factors include trends in delinquencies, nonaccrual loans, and loss rates; trends in volume and terms of loans, effects of changes in risk selection, underwriting standards, and lending policies; experience of lending officers, other lending staff and loan review; national, regional, and local economic trends and conditions; legal, regulatory and collateral factors; and concentrations of credit. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records as goodwill the excess of the purchase price over the fair value of the identifiable net assets acquired. Impairment testing is performed annually, as well as when an event triggering impairment may have occurred. The Company performs its annual analysis as of June 30 each fiscal year. Accounting guidance permits preliminary assessment of qualitative factors to determine whether more substantial impairment testing is required. The Company chose to bypass the preliminary assessment and utilized a two-step process for impairment testing of goodwill. The first step tests for impairment, while the second step, if necessary, measures the impairment. No indicators of impairment were identified as of June 30, 2018. Core deposit intangibles resulting from the acquisition of MidCarolina Financial Corporation ("MidCarolina") in July 2011 were $6,556,000 and are being amortized on an accelerated basis over 108 months. Core deposit intangibles resulting from the acquisition of MainStreet BankShares, Inc. in January 2015 were $1,839,000 and are being amortized on an accelerated basis over 120 months . The changes in the carrying amount of goodwill and intangibles for the three months ended March 31, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions — — Amortization — (55 ) Impairment — — Balance at March 31, 2019 $ 43,872 $ 871 |
Short-term Borrowings
Short-term Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Borrowings | Short-term Borrowings Short-term borrowings may consist of customer repurchase agreements, overnight borrowings from the FHLB, and federal funds purchased. The Company has federal funds lines of credit established with two correspondent banks in the amounts of $15,000,000 , each, and, additionally, has access to the FRB's discount window. Customer repurchase agreements are collateralized by securities of the U.S. Government or GSEs. They mature daily. The interest rates may be changed at the discretion of the Company. The securities underlying these agreements remain under the Company's control. FHLB overnight borrowings contain floating interest rates that may change daily at the discretion of the FHLB. Federal funds purchased are unsecured overnight borrowings from other financial institutions. Short-term borrowings consisted of the following at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Customer repurchase agreements $ 35,945 $ 35,243 |
Long-term Borrowings
Long-term Borrowings | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | Long-term Borrowings Under the terms of its collateral agreement with the FHLB, the Company provides a blanket lien covering all of its residential first mortgage loans, second mortgage loans, home equity lines of credit, and commercial real estate loans. In addition, the Company pledges as collateral its capital stock in the FHLB and deposits with the FHLB. The Company has a line of credit with the FHLB equal to 30% of the Company's assets, subject to the amount of collateral pledged. As of March 31, 2019 , $583,259,000 in eligible collateral was pledged under the blanket floating lien agreement which covers both short-term and long-term borrowings. In the regular course of conducting its business, the Company takes deposits from political subdivisions of the states of Virginia and North Carolina. At March 31, 2019 , the Bank's public deposits totaled $257,240,000 . The Company is required to provide collateral to secure the deposits that exceed the insurance coverage provided by the Federal Deposit Insurance Corporation. This collateral can be provided in the form of certain types of government or agency bonds or letters of credit from the FHLB. At March 31, 2019 , the Company had $192,500,000 in letters of credit with the FHLB outstanding, of which $190,000,000 , as well as $91,018,000 in agency, state, and municipal securities, was pledged to provide collateral for such deposits. |
Junior Subordinated Debt
Junior Subordinated Debt | 3 Months Ended |
Mar. 31, 2019 | |
Trust Preferred Capital Notes [Abstract] | |
Junior Subordinated Debt | Junior Subordinated Debt On April 7, 2006, AMNB Statutory Trust I, a Delaware statutory trust and a wholly owned unconsolidated subsidiary of the Company, issued $ 20,000,000 of preferred securities (the "Trust Preferred Securities") in a private placement pursuant to an applicable exemption from registration. The Trust Preferred Securities mature on June 30, 2036 , but may be redeemed at the Company's option beginning on September 30, 2011. Distributions are cumulative and will accrue from the date of original issuance, but may be deferred by the Company from time to time for up to 20 consecutive quarterly periods. The Company has guaranteed the payment of all required distributions on the Trust Preferred Securities. The proceeds of the Trust Preferred Securities received by the trust, along with proceeds of $ 619,000 received by the trust from the issuance of common securities by the trust to the Company, were used to purchase $20,619,000 of the Company's junior subordinated debt securities (the "Junior Subordinated Debt"), issued pursuant to junior subordinated debentures entered into between the Company and Wilmington Trust Company, as trustee. The proceeds of the Junior Subordinated Debt were used to fund the cash portion of the merger consideration to the former shareholders of Community First Financial Corporation in connection with the Company's acquisition of that company in 2006, and for general corporate purposes. On July 1, 2011, in connection with the MidCarolina merger, the Company assumed $8,764,000 in junior subordinated debt to MidCarolina Trust I and MidCarolina Trust II, two separate Delaware statutory trusts (the "MidCarolina Trusts"), to fully and unconditionally guarantee the preferred securities issued by the MidCarolina Trusts. These long-term obligations, which currently qualify as Tier 1 capital, constitute a full and unconditional guarantee by the Company of the MidCarolina Trusts' obligations. The MidCarolina Trusts were not consolidated in the Company's financial statements. In accordance with ASC 810-10-15-14, Consolidation – Overall – Scope and Scope Exceptions , the Company did not eliminate through consolidation the Company's $619,000 equity investment in AMNB Statutory Trust I or the $264,000 equity investment in the MidCarolina Trusts. Instead, the Company reflected this equity investment in the "Accrued interest receivable and other assets" line item in the consolidated balance sheets. A description of the junior subordinated debt securities outstanding payable to the trusts is shown below as of March 31, 2019 and December 31, 2018 (dollars in thousands): Issuing Entity Date Issued Interest Rate Maturity Date Principal Amount March 31, 2019 December 31, 2018 AMNB Trust I 4/7/2006 Libor plus 1.35% 6/30/2036 $ 20,619 $ 20,619 MidCarolina Trust I 10/29/2002 Libor plus 3.45% 11/7/2032 4,391 4,377 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,943 2,931 $ 27,953 $ 27,927 The principal amounts reflected above for the MidCarolina Trusts are net of fair value adjustments of $1,430,000 and $1,456,000 at March 31, 2019 and December 31, 2018 , respectively. The original fair value adjustments of $1,197,000 and $1,021,000 were recorded as a result of the acquisition of MidCarolina on July 1, 2011, and are being amortized into interest expense over the remaining lives of the respective borrowings. |
Derivative Financial Instrument
Derivative Financial Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company uses derivative financial instruments ("derivatives") primarily to manage risks to the Company associated with changing interest rates. The Company's derivatives are hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The Company designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows on variable rate borrowings such as the Company's trust preferred capital notes. The Company uses interest rate swap agreements as part of its hedging strategy by exchanging variable-rate interest payments on a notional amount equal to the principal amount of the borrowings for fixed-rate interest payments, with such interest rates set based on benchmarked interest rates. All interest rate swaps were entered into with counterparties that met the Company's credit standards and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in these derivative contracts is not significant. Terms and conditions of the interest rate swaps vary and amounts receivable or payable are recognized as accrued under the terms of the agreements. The Company assesses the effectiveness of each hedging relationship on a periodic basis. In accordance with ASC 815, Derivatives and Hedging , the effective portions of the derivatives' unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Company's assessment, its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income and interest expense in the Company's consolidated statements of income. The following tables present information on the Company's derivative financial instruments as of March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 Notional Amount Positions Assets Liabilities Cash Collateral Pledged Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 28,500 3 $ — $ 1,529 $ 1,500 December 31, 2018 Notional Amount Positions Assets Liabilities Cash Collateral Pledged Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 28,500 3 $ — $ 804 $ 650 |
Stock Based Compensation
Stock Based Compensation | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Company's 2018 Equity Compensation Plan (the "2018 Plan") was adopted by the Board of Directors of the Company on February 20, 2018, and approved by shareholders on May 15, 2018, at the Company's 2018 Annual Meeting of Shareholders. The 2018 Plan provides for the granting of restricted stock awards, incentive and non-statutory options, and other equity-based awards to employees and directors at the discretion of the Compensation Committee of the Board of Directors. The 2018 Plan authorizes the issuance of up to 675,000 shares of common stock. The 2018 Plan replaced the Company's stock incentive plan that was approved by the shareholders at the 2008 Annual Meeting that expired in February 2018 (the "2008 Plan"). Stock Options Accounting guidance requires that compensation cost relating to share-based payment transactions be recognized in the financial statements with measurement based upon the fair value of the equity or liability instruments issued. A summary of stock option transactions for the three months ended March 31, 2019 is as follows: Option Weighted Weighted Aggregate Outstanding at December 31, 2018 13,200 $ 21.97 Granted — — Exercised (13,200 ) 21.97 Forfeited — — Expired — — Outstanding and exercisable at March 31, 2019 — $ — 0.00 years $ — The fair value of options is estimated at the date of grant using the Black-Scholes option pricing model and expensed over the options' vesting period. No stock options have been granted since 2009. As of March 31, 2019 , there were no unrecognized compensation expenses related to nonvested stock option grants. Restricted Stock The Company from time-to-time grants shares of restricted stock to key employees and non-employee directors. These awards help align the interests of these employees and directors with the interests of the shareholders of the Company by providing economic value directly related to increases in the value of the Company's common stock. The value of the stock awarded is established as the fair value of the Company's common stock at the time of the grant. The Company recognizes expense, equal to the total value of such awards, ratably over the vesting period of the stock grants. The majority of the restricted stock granted cliff vests at the end of a 36 -month period beginning on the date of the grant. The remainder vests one-third each year beginning on the date of the grant. Nonvested restricted stock activity for the three months ended March 31, 2019 is summarized in the following table. Restricted Stock Shares Weighted Average Grant Date Value Per Share Nonvested at December 31, 2018 52,798 $ 31.71 Granted 18,926 32.33 Vested (20,285 ) 23.12 Forfeited — — Nonvested at March 31, 2019 51,439 $ 35.33 As of March 31, 2019 and December 31, 2018 , there was $1,127,000 and $647,000 , respectively, in unrecognized compensation cost related to nonvested restricted stock granted under the 2008 Plan and the 2018 Plan. The weighted average period over which this cost is expected to be recognized is 1.48 years . The share based compensation expense for nonvested restricted stock was $166,000 and $147,000 during the first three months of 2019 and 2018 , respectively . The Company offers its outside directors alternatives with respect to director compensation. For 2019 , the regular quarterly board retainer will be received in the form of shares of immediately vested, but restricted stock with a market value of $7,500 . Monthly meeting fees can be received as $725 per meeting in cash or $900 in immediately vested, but restricted stock. Only outside directors receive board fees. The Company issued 4,106 and 3,477 shares and recognized share based compensation expense of $147,000 and $130,000 during the first three months of 2019 and 2018 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following shows the weighted average number of shares used in computing earnings per common share and the effect on the weighted average number of shares of potentially dilutive common stock. Potentially dilutive common stock had no effect on income available to common shareholders. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period including voting rights and sharing in nonforfeitable dividends. The following table presents basic and diluted earnings per share for the three month periods ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 2018 Shares Per Shares Per Basic earnings per share 8,745,174 $ 0.69 8,669,728 $ 0.67 Effect of dilutive securities - stock options 549 — 17,623 — Diluted earnings per share 8,745,723 $ 0.69 8,687,351 $ 0.67 Outstanding stock options on common stock whose effects are anti-dilutive are not included in computing diluted earnings per share. There were no anti-dilutive stock options for the three month periods ended March 31, 2019 and 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following information for the three months ended March 31, 2019 and 2018 pertains to the Company's non-contributory defined benefit pension plan which was frozen in 2009. If lump sum payments exceed the service cost plus interest cost, an additional settlement charge will apply (dollars in thousands): Components of Net Periodic Benefit Cost Three Months Ended March 31, 2019 2018 Service cost $ — $ — Interest cost 58 51 Expected return on plan assets (68 ) (64 ) Recognized loss due to settlement 26 25 Recognized net actuarial loss 65 68 Net periodic cost $ 81 $ 80 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Determination of Fair Value 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 topic of FASB ASC 820, Fair Value Measurement , fair value is the price that would be received to sell an asset or paid to transfer 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 estimates 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 is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in 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 and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market. The following describes the valuation techniques used by the Company to measure certain financial assets and financial liabilities recorded at fair value on a recurring basis in the financial statements: Securities available for sale and equity securities: 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). If no observable market data is available, valuations are based upon third party model based techniques (Level 3). There were no securities recorded with a Level 3 valuation at March 31, 2019 or December 31, 2018 . Derivative asset (liability) - cash flow hedges: Cash flow hedges are recorded at fair value on a recurring basis. Cash flow hedges are valued by a third party using significant assumptions that are observable in the market and can be corroborated by market data. All of the Company's cash flow hedges are classified as Level 2. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at March 31, 2019 Using Balance at March 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 130,972 $ — $ 130,972 $ — Mortgage-backed and CMOs 108,477 — 108,477 — State and municipal 77,970 — 77,970 — Corporate 6,870 — 6,870 — Total securities available for sale $ 324,289 $ — $ 324,289 $ — Equity securities $ 2,069 $ — $ 2,069 $ — Liabilities: Derivative - cash flow hedges $ 1,529 $ — $ 1,529 $ — Fair Value Measurements at December 31, 2018 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2018 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 134,039 $ — $ 134,039 $ — Mortgage-backed and CMOs 111,867 — 111,867 — State and municipal 79,902 — 79,902 — Corporate 6,845 — 6,845 — Total securities available for sale $ 332,653 $ — $ 332,653 $ — Equity securities $ 1,830 $ — $ 1,830 $ — Liabilities: Derivative - cash flow hedges $ 804 $ — $ 804 $ — Certain assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write-downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the financial statements: Loans held for sale: Loans held for sale are carried at fair value. These loans currently consist of one -to- four family 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). As such, the Company records any fair value adjustments on a nonrecurring basis. No nonrecurring fair value adjustments were recorded on loans held for sale during the three month period ended March 31, 2019 or the year ended December 31, 2018 . Gains and losses on the sale of loans are recorded within mortgage banking income on the consolidated statements of income. Impaired loans: Loans are designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreements will not be collected when due. The measurement of the loss associated with impaired loans can be based on either the observable market price of the loan, the present value of projected cash flows or the fair value of the collateral. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company's collateral is real estate. The value of real estate collateral is determined utilizing a market valuation approach based on an appraisal, of one year or less, conducted by an independent, licensed appraiser using observable market data (Level 2). The present value of projected cash flows method results in a Level 3 categorization because the calculation relies on the Company's judgment to determine projected cash flows, which are then discounted at the current rate of the loan, or the rate prior to modification if the loan is a troubled debt restructure. However, if the collateral is a house or building in the process of construction or if an appraisal of the property is more than one year old and not solely based on observable market comparables or management determines the fair value of the collateral is further impaired below the appraised value, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal, of one year or less, if deemed significant, or the net book value on the applicable business's 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). 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 provision for loan losses on the consolidated statements of income. Other real estate owned: Measurement for fair values for OREO are the same as impaired loans. Any fair value adjustments are recorded in the period incurred as a valuation allowance against OREO with the associated expense included in OREO expense, net on the consolidated statements of income. The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at March 31, 2019 Using Balance at March 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 1,252 $ — $ 1,252 $ — Impaired loans, net of valuation allowance 168 — — 168 Other real estate owned, net 646 — — 646 Fair Value Measurements at December 31, 2018 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2018 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 640 $ — $ 640 $ — Impaired loans, net of valuation allowance 171 — — 171 Other real estate owned, net 869 — — 869 Quantitative Information About Level 3 Fair Value Measurements as of March 31, 2019 and December 31, 2018 : Assets Valuation Technique Unobservable Input Impaired loans Discounted appraised value Selling cost 8.00% Discounted cash flow analysis Market rate for borrower (discount rate) 3.25% - 9.80% Other real estate owned, net Discounted appraised value Selling cost 8.00% FASB ASC 825, Financial Instruments , requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The carrying values and the exit pricing concept fair values of the Company's financial instruments at March 31, 2019 are as follows (dollars in thousands): Fair Value Measurements at March 31, 2019 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 70,861 $ 70,861 $ — $ — $ 70,861 Equity securities 2,069 2,069 2,069 Securities available for sale 324,289 — 324,289 — 324,289 Restricted stock 5,299 — 5,299 — 5,299 Loans held for sale 1,252 — 1,252 — 1,252 Loans, net of allowance 1,347,257 — — 1,337,337 1,337,337 Bank owned life insurance 19,047 — 19,047 — 19,047 Accrued interest receivable 5,373 — 5,373 — 5,373 Financial Liabilities: Deposits $ 1,559,790 $ — $ 1,561,355 $ — $ 1,561,355 Repurchase agreements 35,945 — 35,945 — 35,945 Junior subordinated debt 27,953 — — 23,307 23,307 Accrued interest payable 846 — 846 — 846 Derivative - cash flow hedges 1,529 — 1,529 — 1,529 The carrying values and the exit pricing concept fair values of the Company's financial instruments at December 31, 2018 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 64,255 $ 64,255 $ — $ — $ 64,255 Equity securities 1,830 1,830 1,830 Securities available for sale 332,653 — 332,653 — 332,653 Restricted stock 5,247 — 5,247 — 5,247 Loans held for sale 640 — 640 — 640 Loans, net of allowance 1,344,671 — — 1,334,236 1,334,236 Bank owned life insurance 18,941 — 18,941 — 18,941 Accrued interest receivable 5,449 — 5,449 — 5,449 Financial Liabilities: Deposits $ 1,566,227 $ — $ 1,570,721 $ — $ 1,570,721 Repurchase agreements 35,243 — 35,243 — 35,243 Junior subordinated debt 27,927 — — 22,577 22,577 Accrued interest payable 795 — 795 — 795 Derivative - cash flow hedges 804 — 804 — 804 |
Segment and Related Information
Segment and Related Information | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company has two reportable segments, community banking and trust and investment services. Community banking involves making loans to and generating deposits from individuals and businesses. All assets and liabilities of the Company are allocated to community banking. Investment income from securities is also allocated to the community banking segment. Loan fee income, service charges from deposit accounts, and non-deposit fees such as automated teller machine fees and insurance commissions generate additional income for the community banking segment. Trust and investment services include estate planning, trust account administration, investment management, and retail brokerage. Investment management services include purchasing equity, fixed income, and mutual fund investments for customer accounts. The trust and investment services segment receives fees for investment and administrative services. Amounts shown in the "Other" column includes activities of the Company which are primarily debt service on trust preferred securities and corporate items. Segment information as of and for the three months ended March 31, 2019 and 2018 (unaudited), is shown in the following tables (dollars in thousands): Three Months Ended March 31, 2019 Community Trust and Other Intersegment Total Interest income $ 17,999 $ — $ 97 $ — $ 18,096 Interest expense 2,644 — 384 — 3,028 Noninterest income 2,060 1,061 330 — 3,451 Income (loss) before income taxes 7,520 480 (426 ) — 7,574 Net income (loss) 5,997 380 (374 ) — 6,003 Depreciation and amortization 458 2 — — 460 Total assets 1,857,272 — 259,009 (247,877 ) 1,868,404 Goodwill 43,872 — — — 43,872 Capital expenditures 386 7 — — 393 Three Months Ended March 31, 2018 Community Trust and Other Intersegment Total Interest income $ 16,580 $ — $ 88 $ — $ 16,668 Interest expense 1,835 — 290 — 2,125 Noninterest income 2,063 1,151 119 — 3,333 Income (loss) before income taxes 7,026 453 (261 ) — 7,218 Net income (loss) 5,653 365 (206 ) — 5,812 Depreciation and amortization 540 3 — — 543 Total assets 1,807,991 — 237,802 (228,219 ) 1,817,574 Goodwill 43,872 — — — 43,872 Capital expenditures 345 — — — 345 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information as of and for the three months ended March 31, 2019 and 2018 is shown in the following table (dollars in thousands): Three Months Ended 2019 2018 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 28,912 $ 18,772 Interest-bearing deposits in other banks 41,949 57,881 Cash and Cash Equivalents $ 70,861 $ 76,653 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 2,978 $ 2,101 Income taxes — — Noncash investing and financing activities: Transfer of loans to other real estate owned — 532 Increase in operating lease right-of-use asset upon adoption of ASU 2016-02 4,413 — Increase in operating lease liability upon adoption of ASU 2016-02 4,413 — Unrealized gains (losses) on securities available for sale 3,965 (3,742 ) Unrealized losses on cash flow hedges (725 ) — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Accumulated Other Comprehensive Income (Loss) Changes in each component of accumulated other comprehensive income (loss) ("AOCI") for the three months ended March 31, 2019 and 2018 (unaudited) were as follows (dollars in thousands): For the Three Months Ended Net Unrealized Gains (Losses) on Securities Unrealized Losses on Cash Flow Hedges Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ (796 ) $ — $ (2,280 ) $ (3,076 ) Net unrealized losses on securities available for sale, net of tax, $(861) (2,873 ) — — (2,873 ) Reclassification adjustment for realized gains on securities, net of tax, $(2) (6 ) — — (6 ) Reclassification for ASU 2016-01 adoption (650 ) — — (650 ) Balance at March 31, 2018 $ (4,325 ) $ — $ (2,280 ) $ (6,605 ) Balance at December 31, 2018 $ (3,973 ) $ (624 ) $ (1,238 ) $ (5,835 ) Net unrealized gains on securities available for sale, net of tax, $889 3,080 — — 3,080 Reclassification adjustment for realized gains on securities, net of tax, $(1) (3 ) — — (3 ) Unrealized losses on cash flow hedges, net of tax, $(162) — (563 ) — (563 ) Balance at March 31, 2019 $ (896 ) $ (1,187 ) $ (1,238 ) $ (3,321 ) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three months ended March 31, 2019 and 2018 (dollars in thousands) For the Three Months Ended March 31, 2019 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on call of securities $ 4 Securities gains, net (1 ) Income taxes Total reclassifications $ 3 Net of tax For the Three Months Ended March 31, 2018 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on sale of securities $ 8 Securities gains, net (2 ) Income taxes $ 6 Net of tax Reclassification for ASU 2016-01 adoption $ 650 * Total reclassifications $ 656 * Reclassification from AOCI to retained earnings for unrealized holding gains on equity securities due to adoption of ASU 2016-01. |
Completed Merger
Completed Merger | 3 Months Ended |
Mar. 31, 2019 | |
Business Combinations [Abstract] | |
Completed Merger | Completed Merger On April 1, 2019, the Company announced the completion of its merger with Roanoke-based HomeTown Bankshares Corporation ("HomeTown"). The combination deepens the Company's footprint in the Roanoke, Virginia metropolitan area and creates a presence in the New River Valley with an office in Christiansburg, Virginia. After completion of the merger and with two office consolidations, the Company has eight offices in the combined Roanoke/New River Valley market area. The Company has approximately $2.5 billion in assets upon completion of the merger, based on each company's financial results as of March 31, 2019. Pursuant and subject to the terms of the merger agreement, as a result of the merger, the holders of shares of HomeTown common stock received 0.4150 shares of the Company's common stock for each share of HomeTown common stock held immediately prior to the effective date of the merger. Following completion of the merger, HomeTown's subsidiary bank, HomeTown Bank, was merged with and into the Bank. The Company's financial position and results are as of and for the period ended March 31, 2019 and do not include the impact of the merger or HomeTown's financial position and results. |
Leases Leases
Leases Leases | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Leases | 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 prospective application approach provided by ASU 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. As stated in the Company's 2018 Form 10-K, the implementation of the new standard resulted in recognition of a right-of-use asset and lease liability of $4.4 million at the date of adoption, which is related to the Company's lease of premises used in operations. The right-of-use asset and lease liability are included in other assets and other liabilities, respectively, in the Company's consolidated balance sheets. 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, as of and for the three months ended March 31, 2019 (dollars in thousands): March 31, 2019 Lease liabilities $ 4,238 Right-of-use assets $ 4,237 Weighted average remaining lease term 9.25 years Weighted average discount rate 3.22 % Three Months Ended March 31, 2019 Lease cost (dollars in thousands) Operating lease cost $ 211 Short-term lease cost 1 Total lease cost 212 Cash paid for amounts included in the measurement of lease liabilities $ 209 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 (dollars in thousands) As of March 31, 2019 Nine months ending December 31, 2019 $ 592 Twelve months ending December 31, 2020 667 Twelve months ending December 31, 2021 656 Twelve months ending December 31, 2022 632 Twelve months ending December 31, 2023 529 Twelve months ending December 31, 2024 211 Thereafter 1,677 Total undiscounted cash flows $ 4,964 Discount (726 ) Lease liabilities $ 4,238 |
Accounting Policies (Policies)
Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of Accounting | The consolidated financial statements include the accounts of American National Bankshares Inc. (the "Company") and its wholly owned subsidiary, American National Bank and Trust Company (the "Bank"). The Bank offers a wide variety of retail, commercial, secondary market mortgage lending, and trust and investment services which also include non-deposit products such as mutual funds and insurance policies. The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America ("GAAP") requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, goodwill and intangible assets, unfunded pension liability, other-than-temporary impairment of securities, accounting for merger and acquisition activity, derivative financial instruments, accounting for acquired loans with specific credit-related deterioration, the valuation of deferred tax assets and liabilities, and the valuation of other real estate owned ("OREO"). All significant inter-company transactions and accounts are eliminated in consolidation, with the exception of the AMNB Trust and the MidCarolina Trusts, as detailed in Note 9. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of normal recurring accruals) necessary to present fairly the results of the interim periods. The results of operations for the interim periods are not necessarily indicative of the results that may occur for any other period. Certain reclassifications have been made to prior period balances to conform to the current period presentation. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards On January 1, 2019, the Company adopted Accounting Standards Update ("ASU") 2016-02, "Leases (Topic 842)." Among other things, in the amendments in ASU 2016-02, lessees are required to recognize the following for all leases (with the exception of short-term leases) at the commencement date: (i) a lease liability, which is a lessee's obligation to make lease payments arising from a lease, measured on a discounted basis; and (ii) a right-of-use asset, which is an asset that represents the lessee's right to use, or control the use of, a specified asset for the lease term. Under the new guidance, lessor accounting is largely unchanged. Certain targeted improvements were made to align, where necessary, lessor accounting with the lessee accounting model and Topic 606, Revenue from Contracts with Customers. Lessees (for capital and operating leases) and lessors (for sales-type, direct financing, and operating leases) must apply a modified retrospective transition approach for leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Lessees and lessors may not apply a full retrospective transition approach. The Financial Accounting Standards Board ("FASB") made subsequent amendments to Topic 842 in July 2018 through ASU 2018-10 ("Codification Improvements to Topic 842, Leases.") and ASU 2018-11 ("Leases (Topic 842): Targeted Improvements."). Among these amendments is the provision in ASU 2018-11 that provides entities with an additional (and optional) transition method to adopt the new leases standard. Under this new transition method, an entity initially applies the new leases standard at the adoption date and recognizes a cumulative-effect adjustment to the opening balance of retained earnings in the period of adoption. Consequently, an entity's reporting for the comparative periods presented in the financial statements in which it adopts the new leases standard continue to be in accordance with current GAAP (Topic 840, Leases). The Company adopted using the additional (and optional) transition method. The effect of adopting this standard on January 1, 2019 was an approximately $4.4 million increase in assets and liabilities on the Company's consolidated balance sheet. Recent Accounting Pronouncements In June 2016, the FASB issued ASU 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 amendments in this ASU are effective for Securities and Exchange Commission ("SEC") filers for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company has implemented and completed a significant amount of a project plan addressing the components of this ASU with the assistance of an outside vendor. The Company is currently assessing the impact that ASU 2016-13 will have on its consolidated financial statements. In January 2017, the FASB issued ASU 2017-04, "Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment." The amendments in this ASU simplify how an entity is required to test goodwill for impairment by eliminating Step 2 from the goodwill impairment test. Step 2 measures a goodwill impairment loss by comparing the implied fair value of a reporting unit's goodwill with the carrying amount of that goodwill. Instead, under the amendments in this ASU, an entity should perform its annual, or interim, goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. Public business entities that are SEC filers should adopt the amendments in this ASU for annual or interim goodwill impairment tests in fiscal years beginning after December 15, 2019. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. The Company does not expect the adoption of ASU 2017-04 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-13, "Fair Value Measurement (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value Measurement." The amendments in this ASU modify the disclosure requirements in Topic 820 to add disclosures regarding changes in unrealized gains and losses, the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements and the narrative description of measurement uncertainty. Certain disclosure requirements in Topic 820 are also removed or modified. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Certain of the amendments are to be applied prospectively while others are to be applied retrospectively. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-13 to have a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU 2018-14, "Compensation-Retirement Benefits-Defined Benefit Plans-General (Subtopic 715-20): Disclosure Framework-Changes to the Disclosure Requirements for Defined Benefit Plans." The amendments in this ASU modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: the projected benefit obligation ("PBO") and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation ("ABO") and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company is currently assessing the impact that ASU 2018-14 will have on its consolidated financial statements. |
Derivatives Instruments and Hedging | The Company uses derivative financial instruments ("derivatives") primarily to manage risks to the Company associated with changing interest rates. The Company's derivatives are hedging instruments in a qualifying hedge accounting relationship (cash flow or fair value hedge). The Company designates derivatives as cash flow hedges when they are used to manage exposure to variability in cash flows on variable rate borrowings such as the Company's trust preferred capital notes. The Company uses interest rate swap agreements as part of its hedging strategy by exchanging variable-rate interest payments on a notional amount equal to the principal amount of the borrowings for fixed-rate interest payments, with such interest rates set based on benchmarked interest rates. All interest rate swaps were entered into with counterparties that met the Company's credit standards and the agreements contain collateral provisions protecting the at-risk party. The Company believes that the credit risk inherent in these derivative contracts is not significant. Terms and conditions of the interest rate swaps vary and amounts receivable or payable are recognized as accrued under the terms of the agreements. The Company assesses the effectiveness of each hedging relationship on a periodic basis. In accordance with ASC 815, Derivatives and Hedging , the effective portions of the derivatives' unrealized gains or losses are recorded as a component of other comprehensive income. Based on the Company's assessment, its cash flow hedges are highly effective, but to the extent that any ineffectiveness exists in the hedge relationships, the amounts would be recorded in interest income and interest expense in the Company's consolidated statements of income. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of investments in debt securities | The amortized cost and fair value of investments in debt securities at March 31, 2019 were as follows (dollars in thousands): March 31, 2019 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 132,087 $ 905 $ 2,020 $ 130,972 Mortgage-backed and CMOs 108,999 725 1,247 108,477 State and municipal 77,560 609 199 77,970 Corporate 6,799 75 4 6,870 Total securities available for sale $ 325,445 $ 2,314 $ 3,470 $ 324,289 The Company adopted ASU 2016-01 effective January 1, 2018 and had equity securities with a fair value of $2,069,000 at March 31, 2019 and recognized in income a $319,000 change in the fair value of equity securities during the first three months of 2019 . During the three months ended March 31, 2019 , the Company sold $80,000 in equity securities at fair value. The Company had equity securities with a fair value of $2,320,000 at March 31, 2018 and recognized in income a $113,000 change in the fair value of equity securities during the first quarter of 2018 . The amortized cost and fair value of investments in debt securities at December 31, 2018 were as follows (dollars in thousands): December 31, 2018 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 137,070 $ 442 $ 3,473 $ 134,039 Mortgage-backed and CMOs 113,883 385 2,401 111,867 State and municipal 80,022 411 531 79,902 Corporate 6,799 68 22 6,845 Total securities available for sale $ 337,774 $ 1,306 $ 6,427 $ 332,653 |
Cost of restricted stock | The cost of restricted stock at March 31, 2019 and December 31, 2018 was as follows (dollars in thousands): March 31, 2019 December 31, 2018 FRB stock $ 3,631 $ 3,621 FHLB stock 1,668 1,626 Total restricted stock $ 5,299 $ 5,247 |
Fair value of gross unrealized losses by investment | The table below shows estimated fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position, at December 31, 2018 (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 103,797 $ 3,473 $ 14,982 $ 8 $ 88,815 $ 3,465 Mortgage-backed and CMOs 86,852 2,401 5,473 15 81,379 2,386 State and municipal 39,755 531 7,199 18 32,556 513 Corporate 484 22 — — 484 22 Total $ 230,888 $ 6,427 $ 27,654 $ 41 $ 203,234 $ 6,386 The following table shows estimated fair value and gross unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2019 . The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period. Available for sale securities that have been in a continuous unrealized loss position, at March 31, 2019 , are as follows (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Unrealized Fair Unrealized Fair Unrealized Federal agencies and GSEs $ 90,268 $ 2,020 $ — $ — $ 90,268 $ 2,020 Mortgage-backed and CMOs 78,494 1,247 244 1 78,250 1,246 State and municipal 28,916 199 2,250 2 26,666 197 Corporate 495 4 — — 495 4 Total $ 198,173 $ 3,470 $ 2,494 $ 3 $ 195,679 $ 3,467 |
Schedule of gross realized gains and losses on and proceeds from sale of securities | The following table presents the gross realized gains and losses on and the proceeds from the sale of securities available for sale during the three months ended March 31, 2019 and 2018 (dollars in thousands): Three Months Ended March 31, 2019 Realized gains (losses): Gross realized gains $ — Gross realized losses — Net realized gains $ — Proceeds from sales of securities $ — Three Months Ended March 31, 2018 Realized gains (losses): Gross realized gains $ 105 Gross realized losses (97 ) Net realized gains $ 8 Proceeds from sales of securities $ 22,066 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loans, excluding loans held for sale | Loans, excluding loans held for sale, at March 31, 2019 and December 31, 2018 , were comprised of the following (dollars in thousands): March 31, 2019 December 31, 2018 Commercial $ 289,301 $ 285,972 Commercial real estate: Construction and land development 93,759 97,240 Commercial real estate 659,133 655,800 Residential real estate: Residential 212,665 209,438 Home equity 99,979 103,933 Consumer 5,226 5,093 Total loans $ 1,360,063 $ 1,357,476 |
Schedule stating outstanding principal balance and the carrying amount of loan acquired | The outstanding principal balance and the carrying amount of these loans, including loans accounted for under FASB Accounting Standards Codification ("ASC") 310-30, included in the consolidated balance sheets at March 31, 2019 and December 31, 2018 are as follows (dollars in thousands): March 31, 2019 December 31, 2018 Outstanding principal balance $ 60,069 $ 63,619 Carrying amount 55,492 58,886 The outstanding principal balance and related carrying amount of acquired impaired loans, for which the Company applies ASC 310-30 to account for interest earned, as of the indicated dates are as follows (dollars in thousands): March 31, 2019 December 31, 2018 Outstanding principal balance $ 23,150 $ 24,500 Carrying amount 19,339 20,611 |
Schedule of changes in the accretable yield on acquired impaired loans | The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies FASB ASC 310-30, for the three months ended March 31, 2019 and the year ended December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Balance at January 1 $ 4,633 $ 4,890 Accretion (530 ) (2,362 ) Reclassification from nonaccretable difference 117 956 Other changes, net* 42 1,149 $ 4,262 $ 4,633 * This line item represents changes in the cash flows expected to be collected due to the impact of non-credit changes such as prepayment assumptions, changes in interest rates on variable rate acquired impaired loans, and discounted payoffs that occurred in the period. |
Schedule of analysis by portfolio segment of the entity's past due loans | The following table shows an analysis by portfolio segment of the Company's past due loans at March 31, 2019 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 1,002 $ — $ — $ 37 $ 1,039 $ 288,262 $ 289,301 Commercial real estate: Construction and land development — — — 26 26 93,733 93,759 Commercial real estate 305 — — 221 526 658,607 659,133 Residential: Residential 382 89 197 750 1,418 211,247 212,665 Home equity 84 91 — 76 251 99,728 99,979 Consumer 19 1 — 1 21 5,205 5,226 Total $ 1,792 $ 181 $ 197 $ 1,111 $ 3,281 $ 1,356,782 $ 1,360,063 The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2018 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 20 $ — $ — $ 83 $ 103 $ 285,869 $ 285,972 Commercial real estate: Construction and land development — — — 27 27 97,213 97,240 Commercial real estate 42 — — 197 239 655,561 655,800 Residential: Residential 456 157 72 659 1,344 208,094 209,438 Home equity 126 — — 124 250 103,683 103,933 Consumer 21 3 — — 24 5,069 5,093 Total $ 665 $ 160 $ 72 $ 1,090 $ 1,987 $ 1,355,489 $ 1,357,476 |
Schedule of impaired loan balances by portfolio segment | The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at December 31, 2018 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 28 $ 28 $ — $ 44 $ 14 Commercial real estate: Construction and land development — — — — — Commercial real estate 376 373 — 542 36 Residential: Residential 646 646 — 875 29 Home equity 49 49 — 108 10 Consumer — — — 2 — $ 1,099 $ 1,096 $ — $ 1,571 $ 89 With a related allowance recorded: Commercial $ 62 $ 58 $ 55 $ 354 $ 40 Commercial real estate: Construction and land development — — — 21 — Commercial real estate — — — 18 — Residential: Residential 173 173 9 342 9 Home equity — — — 128 1 Consumer — — — — — $ 235 $ 231 $ 64 $ 863 $ 50 Total: Commercial $ 90 $ 86 $ 55 $ 398 $ 54 Commercial real estate: Construction and land development — — — 21 — Commercial real estate 376 373 — 560 36 Residential: Residential 819 819 9 1,217 38 Home equity 49 49 — 236 11 Consumer — — — 2 — $ 1,334 $ 1,327 $ 64 $ 2,434 $ 139 The following table presents the Company's impaired loan balances by portfolio segment, excluding acquired impaired loans, at March 31, 2019 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ — $ — $ — $ 14 $ — Commercial real estate: Construction and land development — — — — — Commercial real estate 362 360 — 369 7 Residential: Residential 634 634 — 640 7 Home equity 47 47 — 48 2 Consumer — — — — — $ 1,043 $ 1,041 $ — $ 1,071 $ 16 With a related allowance recorded: Commercial $ 59 $ 55 $ 53 $ 57 $ 1 Commercial real estate: Construction and land development — — — — — Commercial real estate — — — — — Residential Residential 171 171 9 176 2 Home equity — — — — — Consumer — — — — — $ 230 $ 226 $ 62 $ 233 $ 3 Total: Commercial $ 59 $ 55 $ 53 $ 71 $ 1 Commercial real estate: Construction and land development — — — — — Commercial real estate 362 360 — 369 7 Residential: Residential 805 805 9 816 9 Home equity 47 47 — 48 2 Consumer — — — — — $ 1,273 $ 1,267 $ 62 $ 1,304 $ 19 |
Schedule of detail of loans modified as troubled debt restructurings | The following tables show the detail of loans modified as TDRs during the three months ended March 31, 2018 included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Three Months Ended March 31, 2018 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate 1 11 11 Consumer — — — Total 1 $ 11 $ 11 |
Schedule of commercial loan portfolio broken down by internal risk grading | The following table shows the Company's loan portfolio broken down by internal risk grading as of March 31, 2019 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Residential Home Pass $ 285,940 $ 91,200 $ 651,835 $ 207,747 $ 99,640 Special Mention 1,768 — 3,911 1,152 — Substandard 1,593 2,559 3,387 3,766 339 Doubtful — — — — — Total $ 289,301 $ 93,759 $ 659,133 $ 212,665 $ 99,979 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,224 Nonperforming 2 Total $ 5,226 The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2018 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Residential Home Pass $ 285,092 $ 93,000 $ 647,519 $ 204,261 $ 103,541 Special Mention 154 1,840 4,403 1,685 — Substandard 726 2,400 3,878 3,492 392 Doubtful — — — — — Total $ 285,972 $ 97,240 $ 655,800 $ 209,438 $ 103,933 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 5,093 Nonperforming — Total $ 5,093 |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Receivables [Abstract] | |
Schedule of changes in the allowance for loan losses | Changes in the allowance for loan losses and the reserve for unfunded lending commitments at and for the indicated dates and periods are presented below (dollars in thousands): Three Months Ended Year Ended December 31, 2018 Three Months Ended Allowance for Loan Losses Balance, beginning of period $ 12,805 $ 13,603 $ 13,603 Provision for (recovery of) loan losses 16 (103 ) (44 ) Charge-offs (69 ) (1,020 ) (44 ) Recoveries 54 325 60 Balance, end of period $ 12,806 $ 12,805 $ 13,575 Reserve for Unfunded Lending Commitments Balance, beginning of period $ 217 $ 206 $ 206 Provision for unfunded commitments 12 11 5 Charge-offs — — — Balance, end of period $ 229 $ 217 $ 211 The reserve for unfunded loan commitments is included in other liabilities. The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the three months ended March 31, 2019 (dollars in thousands): Commercial Commercial Residential Consumer Total Allowance for Loan Losses Balance at December 31, 2018: $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Provision for (recovery of) loan losses 246 (199 ) (32 ) 1 16 Charge-offs (11 ) (6 ) (20 ) (32 ) (69 ) Recoveries 7 — 13 34 54 Balance at March 31, 2019: $ 2,779 $ 7,041 $ 2,938 $ 48 $ 12,806 Balance at March 31, 2019: Allowance for Loan Losses Individually evaluated for impairment $ 53 $ — $ 9 $ — $ 62 Collectively evaluated for impairment 2,726 7,003 2,769 48 12,546 Acquired impaired loans — 38 160 — 198 Total $ 2,779 $ 7,041 $ 2,938 $ 48 $ 12,806 Loans Individually evaluated for impairment $ 59 $ 362 $ 852 $ — $ 1,273 Collectively evaluated for impairment 288,846 742,900 302,494 5,211 1,339,451 Acquired impaired loans 396 9,630 9,298 15 19,339 Total $ 289,301 $ 752,892 $ 312,644 $ 5,226 $ 1,360,063 The following table presents changes in the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment at and for the year ended December 31, 2018 (dollars in thousands): Commercial Commercial Residential Consumer Total Allowance for Loan Losses Balance at December 31, 2017: $ 2,413 $ 8,321 $ 2,825 $ 44 $ 13,603 Provision for (recovery of) loan losses 842 (1,074 ) 89 40 (103 ) Charge-offs (787 ) (11 ) (86 ) (136 ) (1,020 ) Recoveries 69 10 149 97 325 Balance at December 31, 2018: $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Balance at December 31, 2018: Allowance for Loan Losses Individually evaluated for impairment $ 55 $ — $ 9 $ — $ 64 Collectively evaluated for impairment 2,482 7,211 2,822 45 12,560 Acquired impaired loans — 35 146 — 181 Total $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Loans Individually evaluated for impairment $ 90 $ 376 $ 868 $ — $ 1,334 Collectively evaluated for impairment 285,431 742,365 302,657 5,078 1,335,531 Acquired impaired loans 451 10,299 9,846 15 20,611 Total $ 285,972 $ 753,040 $ 313,371 $ 5,093 $ 1,357,476 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of changes in carrying amount of goodwill and intangibles | The changes in the carrying amount of goodwill and intangibles for the three months ended March 31, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions — — Amortization — (55 ) Impairment — — Balance at March 31, 2019 $ 43,872 $ 871 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | Short-term borrowings consisted of the following at March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 December 31, 2018 Customer repurchase agreements $ 35,945 $ 35,243 |
Junior Subordinated Debt (Table
Junior Subordinated Debt (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Trust Preferred Capital Notes [Abstract] | |
Schedule of junior subordinated debt securities outstanding payable | A description of the junior subordinated debt securities outstanding payable to the trusts is shown below as of March 31, 2019 and December 31, 2018 (dollars in thousands): Issuing Entity Date Issued Interest Rate Maturity Date Principal Amount March 31, 2019 December 31, 2018 AMNB Trust I 4/7/2006 Libor plus 1.35% 6/30/2036 $ 20,619 $ 20,619 MidCarolina Trust I 10/29/2002 Libor plus 3.45% 11/7/2032 4,391 4,377 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,943 2,931 $ 27,953 $ 27,927 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Cash Flow Hedges | The following tables present information on the Company's derivative financial instruments as of March 31, 2019 and December 31, 2018 (dollars in thousands): March 31, 2019 Notional Amount Positions Assets Liabilities Cash Collateral Pledged Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 28,500 3 $ — $ 1,529 $ 1,500 December 31, 2018 Notional Amount Positions Assets Liabilities Cash Collateral Pledged Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 28,500 3 $ — $ 804 $ 650 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of summary of stock option transactions | A summary of stock option transactions for the three months ended March 31, 2019 is as follows: Option Weighted Weighted Aggregate Outstanding at December 31, 2018 13,200 $ 21.97 Granted — — Exercised (13,200 ) 21.97 Forfeited — — Expired — — Outstanding and exercisable at March 31, 2019 — $ — 0.00 years $ — |
Schedule of nonvested restricted stock activity | Nonvested restricted stock activity for the three months ended March 31, 2019 is summarized in the following table. Restricted Stock Shares Weighted Average Grant Date Value Per Share Nonvested at December 31, 2018 52,798 $ 31.71 Granted 18,926 32.33 Vested (20,285 ) 23.12 Forfeited — — Nonvested at March 31, 2019 51,439 $ 35.33 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted earnings per share | The following table presents basic and diluted earnings per share for the three month periods ended March 31, 2019 and 2018 . Three Months Ended March 31, 2019 2018 Shares Per Shares Per Basic earnings per share 8,745,174 $ 0.69 8,669,728 $ 0.67 Effect of dilutive securities - stock options 549 — 17,623 — Diluted earnings per share 8,745,723 $ 0.69 8,687,351 $ 0.67 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost | The following information for the three months ended March 31, 2019 and 2018 pertains to the Company's non-contributory defined benefit pension plan which was frozen in 2009. If lump sum payments exceed the service cost plus interest cost, an additional settlement charge will apply (dollars in thousands): Components of Net Periodic Benefit Cost Three Months Ended March 31, 2019 2018 Service cost $ — $ — Interest cost 58 51 Expected return on plan assets (68 ) (64 ) Recognized loss due to settlement 26 25 Recognized net actuarial loss 65 68 Net periodic cost $ 81 $ 80 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets and liabilities measured on recurring basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at March 31, 2019 Using Balance at March 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 130,972 $ — $ 130,972 $ — Mortgage-backed and CMOs 108,477 — 108,477 — State and municipal 77,970 — 77,970 — Corporate 6,870 — 6,870 — Total securities available for sale $ 324,289 $ — $ 324,289 $ — Equity securities $ 2,069 $ — $ 2,069 $ — Liabilities: Derivative - cash flow hedges $ 1,529 $ — $ 1,529 $ — Fair Value Measurements at December 31, 2018 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2018 Level 1 Level 2 Level 3 Assets: Securities available for sale: Federal agencies and GSEs $ 134,039 $ — $ 134,039 $ — Mortgage-backed and CMOs 111,867 — 111,867 — State and municipal 79,902 — 79,902 — Corporate 6,845 — 6,845 — Total securities available for sale $ 332,653 $ — $ 332,653 $ — Equity securities $ 1,830 $ — $ 1,830 $ — Liabilities: Derivative - cash flow hedges $ 804 $ — $ 804 $ — |
Schedule of assets that were measured at fair value on a nonrecurring basis | The following table summarizes the Company's assets that were measured at fair value on a nonrecurring basis at the dates indicated (dollars in thousands): Fair Value Measurements at March 31, 2019 Using Balance at March 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 1,252 $ — $ 1,252 $ — Impaired loans, net of valuation allowance 168 — — 168 Other real estate owned, net 646 — — 646 Fair Value Measurements at December 31, 2018 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2018 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 640 $ — $ 640 $ — Impaired loans, net of valuation allowance 171 — — 171 Other real estate owned, net 869 — — 869 |
Schedule of quantitative information of assets measured at Level 3 | Quantitative Information About Level 3 Fair Value Measurements as of March 31, 2019 and December 31, 2018 : Assets Valuation Technique Unobservable Input Impaired loans Discounted appraised value Selling cost 8.00% Discounted cash flow analysis Market rate for borrower (discount rate) 3.25% - 9.80% Other real estate owned, net Discounted appraised value Selling cost 8.00% |
Schedule of carrying values and estimated fair values of the entity's financial instruments | The carrying values and the exit pricing concept fair values of the Company's financial instruments at March 31, 2019 are as follows (dollars in thousands): Fair Value Measurements at March 31, 2019 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 70,861 $ 70,861 $ — $ — $ 70,861 Equity securities 2,069 2,069 2,069 Securities available for sale 324,289 — 324,289 — 324,289 Restricted stock 5,299 — 5,299 — 5,299 Loans held for sale 1,252 — 1,252 — 1,252 Loans, net of allowance 1,347,257 — — 1,337,337 1,337,337 Bank owned life insurance 19,047 — 19,047 — 19,047 Accrued interest receivable 5,373 — 5,373 — 5,373 Financial Liabilities: Deposits $ 1,559,790 $ — $ 1,561,355 $ — $ 1,561,355 Repurchase agreements 35,945 — 35,945 — 35,945 Junior subordinated debt 27,953 — — 23,307 23,307 Accrued interest payable 846 — 846 — 846 Derivative - cash flow hedges 1,529 — 1,529 — 1,529 The carrying values and the exit pricing concept fair values of the Company's financial instruments at December 31, 2018 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2018 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Carrying Value Level 1 Level 2 Level 3 Balance Financial Assets: Cash and cash equivalents $ 64,255 $ 64,255 $ — $ — $ 64,255 Equity securities 1,830 1,830 1,830 Securities available for sale 332,653 — 332,653 — 332,653 Restricted stock 5,247 — 5,247 — 5,247 Loans held for sale 640 — 640 — 640 Loans, net of allowance 1,344,671 — — 1,334,236 1,334,236 Bank owned life insurance 18,941 — 18,941 — 18,941 Accrued interest receivable 5,449 — 5,449 — 5,449 Financial Liabilities: Deposits $ 1,566,227 $ — $ 1,570,721 $ — $ 1,570,721 Repurchase agreements 35,243 — 35,243 — 35,243 Junior subordinated debt 27,927 — — 22,577 22,577 Accrued interest payable 795 — 795 — 795 Derivative - cash flow hedges 804 — 804 — 804 |
Segment and Related Informati_2
Segment and Related Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information as of and for the three months ended March 31, 2019 and 2018 (unaudited), is shown in the following tables (dollars in thousands): Three Months Ended March 31, 2019 Community Trust and Other Intersegment Total Interest income $ 17,999 $ — $ 97 $ — $ 18,096 Interest expense 2,644 — 384 — 3,028 Noninterest income 2,060 1,061 330 — 3,451 Income (loss) before income taxes 7,520 480 (426 ) — 7,574 Net income (loss) 5,997 380 (374 ) — 6,003 Depreciation and amortization 458 2 — — 460 Total assets 1,857,272 — 259,009 (247,877 ) 1,868,404 Goodwill 43,872 — — — 43,872 Capital expenditures 386 7 — — 393 Three Months Ended March 31, 2018 Community Trust and Other Intersegment Total Interest income $ 16,580 $ — $ 88 $ — $ 16,668 Interest expense 1,835 — 290 — 2,125 Noninterest income 2,063 1,151 119 — 3,333 Income (loss) before income taxes 7,026 453 (261 ) — 7,218 Net income (loss) 5,653 365 (206 ) — 5,812 Depreciation and amortization 540 3 — — 543 Total assets 1,807,991 — 237,802 (228,219 ) 1,817,574 Goodwill 43,872 — — — 43,872 Capital expenditures 345 — — — 345 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosure of cash flow information | Supplemental cash flow information as of and for the three months ended March 31, 2019 and 2018 is shown in the following table (dollars in thousands): Three Months Ended 2019 2018 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 28,912 $ 18,772 Interest-bearing deposits in other banks 41,949 57,881 Cash and Cash Equivalents $ 70,861 $ 76,653 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 2,978 $ 2,101 Income taxes — — Noncash investing and financing activities: Transfer of loans to other real estate owned — 532 Increase in operating lease right-of-use asset upon adoption of ASU 2016-02 4,413 — Increase in operating lease liability upon adoption of ASU 2016-02 4,413 — Unrealized gains (losses) on securities available for sale 3,965 (3,742 ) Unrealized losses on cash flow hedges (725 ) — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income (loss) | Changes in each component of accumulated other comprehensive income (loss) ("AOCI") for the three months ended March 31, 2019 and 2018 (unaudited) were as follows (dollars in thousands): For the Three Months Ended Net Unrealized Gains (Losses) on Securities Unrealized Losses on Cash Flow Hedges Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income (Loss) Balance at December 31, 2017 $ (796 ) $ — $ (2,280 ) $ (3,076 ) Net unrealized losses on securities available for sale, net of tax, $(861) (2,873 ) — — (2,873 ) Reclassification adjustment for realized gains on securities, net of tax, $(2) (6 ) — — (6 ) Reclassification for ASU 2016-01 adoption (650 ) — — (650 ) Balance at March 31, 2018 $ (4,325 ) $ — $ (2,280 ) $ (6,605 ) Balance at December 31, 2018 $ (3,973 ) $ (624 ) $ (1,238 ) $ (5,835 ) Net unrealized gains on securities available for sale, net of tax, $889 3,080 — — 3,080 Reclassification adjustment for realized gains on securities, net of tax, $(1) (3 ) — — (3 ) Unrealized losses on cash flow hedges, net of tax, $(162) — (563 ) — (563 ) Balance at March 31, 2019 $ (896 ) $ (1,187 ) $ (1,238 ) $ (3,321 ) |
Reclassifications out of accumulated other comprehensive income (loss) | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three months ended March 31, 2019 and 2018 (dollars in thousands) For the Three Months Ended March 31, 2019 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on call of securities $ 4 Securities gains, net (1 ) Income taxes Total reclassifications $ 3 Net of tax For the Three Months Ended March 31, 2018 Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Details about AOCI Components Available for sale securities: Realized gain on sale of securities $ 8 Securities gains, net (2 ) Income taxes $ 6 Net of tax Reclassification for ASU 2016-01 adoption $ 650 * Total reclassifications $ 656 * Reclassification from AOCI to retained earnings for unrealized holding gains on equity securities due to adoption of ASU 2016-01. |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2019 | |
Leases [Abstract] | |
Reconciliation of Undiscounted Cash Flows | The following tables present information about the Company's leases, as of and for the three months ended March 31, 2019 (dollars in thousands): March 31, 2019 Lease liabilities $ 4,238 Right-of-use assets $ 4,237 Weighted average remaining lease term 9.25 years Weighted average discount rate 3.22 % Three Months Ended March 31, 2019 Lease cost (dollars in thousands) Operating lease cost $ 211 Short-term lease cost 1 Total lease cost 212 Cash paid for amounts included in the measurement of lease liabilities $ 209 |
Lease Information | 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 (dollars in thousands) As of March 31, 2019 Nine months ending December 31, 2019 $ 592 Twelve months ending December 31, 2020 667 Twelve months ending December 31, 2021 656 Twelve months ending December 31, 2022 632 Twelve months ending December 31, 2023 529 Twelve months ending December 31, 2024 211 Thereafter 1,677 Total undiscounted cash flows $ 4,964 Discount (726 ) Lease liabilities $ 4,238 |
Accounting Policies Accounting
Accounting Policies Accounting Policies (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] | Mar. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total assets | $ 1,868,404 | $ 1,862,866 | $ 1,817,574 | ||
Liabilities | $ 1,638,931 | $ 1,640,324 | |||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total assets | $ 4,400 | ||||
Liabilities | $ 4,400 | ||||
[1] | Derived from audited consolidated financial statements. |
Securities - Schedule of Amort
Securities - Schedule of Amortized Cost and Fair Value of Investments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Securities available for sale: | |||
Amortized Cost | $ 325,445 | $ 337,774 | |
Unrealized Gains | 2,314 | 1,306 | |
Unrealized Losses | 3,470 | 6,427 | |
Securities available for sale, at fair value | 324,289 | 332,653 | [1] |
Federal agencies and GSEs | |||
Securities available for sale: | |||
Amortized Cost | 132,087 | 137,070 | |
Unrealized Gains | 905 | 442 | |
Unrealized Losses | 2,020 | 3,473 | |
Securities available for sale, at fair value | 130,972 | 134,039 | |
Mortgage-backed and CMOs | |||
Securities available for sale: | |||
Amortized Cost | 108,999 | 113,883 | |
Unrealized Gains | 725 | 385 | |
Unrealized Losses | 1,247 | 2,401 | |
Securities available for sale, at fair value | 108,477 | 111,867 | |
State and municipal | |||
Securities available for sale: | |||
Amortized Cost | 77,560 | 80,022 | |
Unrealized Gains | 609 | 411 | |
Unrealized Losses | 199 | 531 | |
Securities available for sale, at fair value | 77,970 | 79,902 | |
Corporate | |||
Securities available for sale: | |||
Amortized Cost | 6,799 | 6,799 | |
Unrealized Gains | 75 | 68 | |
Unrealized Losses | 4 | 22 | |
Securities available for sale, at fair value | $ 6,870 | $ 6,845 | |
[1] | Derived from audited consolidated financial statements. |
Securities - Additional Inform
Securities - Additional Information (Details) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)security | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Investments, Debt and Equity Securities [Abstract] | ||||
Equity securities, at fair value | $ | $ 2,069,000 | $ 2,320,000 | $ 1,830,000 | [1] |
Unrealized holding gains on equity securities | $ | 319,000 | 113,000 | ||
Equity securities sold during period | $ | $ 80,000 | |||
Unrealized gain on equity securities | $ | $ 113,000 | |||
FHLB stock requirement, percentage of outstanding capital | 3.00% | |||
FHLB stock requirement, percentage subject to call | 3.00% | |||
FHLB stock requirement, percentage of outstanding borrowings | 4.25% | |||
Debt Securities, Available-for-sale [Line Items] | ||||
Other-than-temporary impairment losses recognized | $ | $ 0 | $ 0 | ||
Federal agencies and GSEs | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 20 | |||
Number of securities in unrealized loss position for 12 months or more | 20 | |||
Mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 65 | |||
Number of securities in unrealized loss position for 12 months or more | 59 | |||
Collateralized mortgage obligations | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 1 | |||
Number of securities in unrealized loss position for 12 months or more | 1 | |||
State and municipal securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 43 | |||
Number of securities in unrealized loss position for 12 months or more | 39 | |||
Corporate securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 1 | |||
Number of securities in unrealized loss position for 12 months or more | 1 | |||
[1] | Derived from audited consolidated financial statements. |
Securities - Cost of Restricte
Securities - Cost of Restricted Stock (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Total restricted stock | $ 5,299 | $ 5,247 | [1] |
FRB stock | |||
Schedule of Investments [Line Items] | |||
Total restricted stock | 3,631 | 3,621 | |
FHLB stock | |||
Schedule of Investments [Line Items] | |||
Total restricted stock | $ 1,668 | $ 1,626 | |
[1] | Derived from audited consolidated financial statements. |
Securities - Fair Value and Gr
Securities - Fair Value and Gross Unrealized Losses by Investment Category and Length of Time (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Fair Value, Debt and Equity Securities | ||
Total | $ 198,173 | $ 230,888 |
Less than 12 Months | 2,494 | 27,654 |
12 Months or More | 195,679 | 203,234 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 3,470 | 6,427 |
Less than 12 Months | 3 | 41 |
12 Months or More | 3,467 | 6,386 |
Federal agencies and GSEs | ||
Fair Value, Debt and Equity Securities | ||
Total | 90,268 | 103,797 |
Less than 12 Months | 0 | 14,982 |
12 Months or More | 90,268 | 88,815 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 2,020 | 3,473 |
Less than 12 Months | 0 | 8 |
12 Months or More | 2,020 | 3,465 |
Mortgage-backed and CMOs | ||
Fair Value, Debt and Equity Securities | ||
Total | 78,494 | 86,852 |
Less than 12 Months | 244 | 5,473 |
12 Months or More | 78,250 | 81,379 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 1,247 | 2,401 |
Less than 12 Months | 1 | 15 |
12 Months or More | 1,246 | 2,386 |
State and municipal | ||
Fair Value, Debt and Equity Securities | ||
Total | 28,916 | 39,755 |
Less than 12 Months | 2,250 | 7,199 |
12 Months or More | 26,666 | 32,556 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 199 | 531 |
Less than 12 Months | 2 | 18 |
12 Months or More | 197 | 513 |
Corporate | ||
Fair Value, Debt and Equity Securities | ||
Total | 495 | 484 |
Less than 12 Months | 0 | 0 |
12 Months or More | 495 | 484 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 4 | 22 |
Less than 12 Months | 0 | 0 |
12 Months or More | $ 4 | $ 22 |
Securities - Schedule of Sale
Securities - Schedule of Sale of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Realized gains (losses): | ||
Gross realized gains | $ 0 | $ 105 |
Gross realized losses | 0 | (97) |
Net realized gains | 0 | 8 |
Proceeds from sales of securities | $ 0 | $ 22,066 |
Loans - Schedule of Loans Excl
Loans - Schedule of Loans Excluding Loans Held for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 1,360,063 | $ 1,357,476 | [1] |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 289,301 | 285,972 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 752,892 | 753,040 | |
Commercial real estate | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 93,759 | 97,240 | |
Commercial real estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 659,133 | 655,800 | |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 312,644 | 313,371 | |
Residential real estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 212,665 | 209,438 | |
Residential real estate | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 99,979 | 103,933 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 5,226 | $ 5,093 | |
[1] | Derived from audited consolidated financial statements. |
Loans - Outstanding Principal
Loans - Outstanding Principal and Carrying Amount of Acquired Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Outstanding principal balance and the carrying amount of loan acquired [Abstract] | ||
Outstanding principal balance | $ 60,069 | $ 63,619 |
Carrying amount | 55,492 | 58,886 |
Outstanding principal balance and the carrying amount of loan acquired, impaired [Abstract] | ||
Outstanding principal balance | 23,150 | 24,500 |
Carrying amount | $ 19,339 | $ 20,611 |
Loans - Accretable Yield on Ac
Loans - Accretable Yield on Acquired Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Changes in the accretable discount on acquired loans [Abstract] | ||
Beginning balance | $ 4,633 | $ 4,890 |
Accretion | (530) | (2,362) |
Reclassification from nonaccretable difference | 117 | 956 |
Other changes, net | 42 | 1,149 |
Ending balance | $ 4,262 | $ 4,633 |
Loans - Past Due (Details)
Loans - Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | $ 3,281 | $ 1,987 | |
90 Days Past Due and Still Accruing | 197 | 72 | |
Non- Accrual Loans | 1,111 | 1,090 | |
Current | 1,356,782 | 1,355,489 | |
Total Loans | 1,360,063 | 1,357,476 | [1] |
Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 1,039 | 103 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 37 | 83 | |
Current | 288,262 | 285,869 | |
Total Loans | 289,301 | 285,972 | |
Commercial real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Loans | 752,892 | 753,040 | |
Commercial real estate | Construction and land development | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 26 | 27 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 26 | 27 | |
Current | 93,733 | 97,213 | |
Total Loans | 93,759 | 97,240 | |
Commercial real estate | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 526 | 239 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 221 | 197 | |
Current | 658,607 | 655,561 | |
Total Loans | 659,133 | 655,800 | |
Residential | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Loans | 312,644 | 313,371 | |
Residential | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 1,418 | 1,344 | |
90 Days Past Due and Still Accruing | 197 | 72 | |
Non- Accrual Loans | 750 | 659 | |
Current | 211,247 | 208,094 | |
Total Loans | 212,665 | 209,438 | |
Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 251 | 250 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 76 | 124 | |
Current | 99,728 | 103,683 | |
Total Loans | 99,979 | 103,933 | |
Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 21 | 24 | |
90 Days Past Due and Still Accruing | 0 | 0 | |
Non- Accrual Loans | 1 | 0 | |
Current | 5,205 | 5,069 | |
Total Loans | 5,226 | 5,093 | |
30- 59 Days Past Due | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 1,792 | 665 | |
30- 59 Days Past Due | Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 1,002 | 20 | |
30- 59 Days Past Due | Commercial real estate | Construction and land development | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
30- 59 Days Past Due | Commercial real estate | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 305 | 42 | |
30- 59 Days Past Due | Residential | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 382 | 456 | |
30- 59 Days Past Due | Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 84 | 126 | |
30- 59 Days Past Due | Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 19 | 21 | |
60-89 Days Past Due | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 181 | 160 | |
60-89 Days Past Due | Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Commercial real estate | Construction and land development | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Commercial real estate | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
60-89 Days Past Due | Residential | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 89 | 157 | |
60-89 Days Past Due | Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 91 | 0 | |
60-89 Days Past Due | Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | $ 1 | $ 3 | |
[1] | Derived from audited consolidated financial statements. |
Loans - Impaired Loan Balances
Loans - Impaired Loan Balances By Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019 | Dec. 31, 2018 | |
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | $ 1,043 | $ 1,099 |
Impaired loan, with related allowance, recorded investment | 230 | 235 |
Impaired loan, total, recorded investment | 1,273 | 1,334 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 1,041 | 1,096 |
Impaired loan, with related allowance, unpaid principal balance | 226 | 231 |
Impaired loan, total, unpaid principal balance | 1,267 | 1,327 |
Impaired loan, total, related allowance | 62 | 64 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 1,071 | 1,571 |
Impaired loan, with related allowance, average recorded investment | 233 | 863 |
Impaired loan, total, average recorded investment | 1,304 | 2,434 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 16 | 89 |
Impaired loan, with related allowance, interest income recognized | 3 | 50 |
Impaired loan, total, interest income recognized | 19 | 139 |
Commercial | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 0 | 28 |
Impaired loan, with related allowance, recorded investment | 59 | 62 |
Impaired loan, total, recorded investment | 59 | 90 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 0 | 28 |
Impaired loan, with related allowance, unpaid principal balance | 55 | 58 |
Impaired loan, total, unpaid principal balance | 55 | 86 |
Impaired loan, total, related allowance | 53 | 55 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 14 | 44 |
Impaired loan, with related allowance, average recorded investment | 57 | 354 |
Impaired loan, total, average recorded investment | 71 | 398 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 14 |
Impaired loan, with related allowance, interest income recognized | 1 | 40 |
Impaired loan, total, interest income recognized | 1 | 54 |
Commercial real estate | Construction and land development | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 0 | 0 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 0 | 0 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 0 | 0 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 0 | 0 |
Impaired loan, with related allowance, average recorded investment | 0 | 21 |
Impaired loan, total, average recorded investment | 0 | 21 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 0 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | 0 | 0 |
Commercial real estate | Real estate | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 362 | 376 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 362 | 376 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 360 | 373 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 360 | 373 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 369 | 542 |
Impaired loan, with related allowance, average recorded investment | 0 | 18 |
Impaired loan, total, average recorded investment | 369 | 560 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 7 | 36 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | 7 | 36 |
Residential | Real estate | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 634 | 646 |
Impaired loan, with related allowance, recorded investment | 171 | 173 |
Impaired loan, total, recorded investment | 805 | 819 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 634 | 646 |
Impaired loan, with related allowance, unpaid principal balance | 171 | 173 |
Impaired loan, total, unpaid principal balance | 805 | 819 |
Impaired loan, total, related allowance | 9 | 9 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 640 | 875 |
Impaired loan, with related allowance, average recorded investment | 176 | 342 |
Impaired loan, total, average recorded investment | 816 | 1,217 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 7 | 29 |
Impaired loan, with related allowance, interest income recognized | 2 | 9 |
Impaired loan, total, interest income recognized | 9 | 38 |
Residential | Home equity | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 47 | 49 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 47 | 49 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 47 | 49 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 47 | 49 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 48 | 108 |
Impaired loan, with related allowance, average recorded investment | 0 | 128 |
Impaired loan, total, average recorded investment | 48 | 236 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 2 | 10 |
Impaired loan, with related allowance, interest income recognized | 0 | 1 |
Impaired loan, total, interest income recognized | 2 | 11 |
Consumer | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 0 | 0 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 0 | 0 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 0 | 0 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 0 | 2 |
Impaired loan, with related allowance, average recorded investment | 0 | 0 |
Impaired loan, total, average recorded investment | 0 | 2 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 0 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | $ 0 | $ 0 |
Loans - Loans Modified for Tro
Loans - Loans Modified for Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019contract | Mar. 31, 2018USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 11 | |
Post-Modification Outstanding Recorded Investment | $ 11 | |
Number of loans that subsequently defaulted within 12 months of modification | contract | 0 | 0 |
Commercial | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Commercial real estate | Real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Commercial real estate | Construction and land development | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Residential | Real estate | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 11 | |
Post-Modification Outstanding Recorded Investment | $ 11 | |
Residential | Home equity | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 | |
Consumer | ||
Financing Receivable, Modifications [Line Items] | ||
Number of Contracts | contract | 0 | |
Pre-Modification Outstanding Recorded Investment | $ 0 | |
Post-Modification Outstanding Recorded Investment | $ 0 |
Loans - Residential Real Estat
Loans - Residential Real Estate in Process of Foreclosures (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Residential real estate in process of foreclosure | $ 98 | $ 112 |
Residential OREO | $ 514 | $ 719 |
Loans - Loans Portfolio by Int
Loans - Loans Portfolio by Internal Risk Grading (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 1,360,063 | $ 1,357,476 | [1] |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 289,301 | 285,972 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 752,892 | 753,040 | |
Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 93,759 | 97,240 | |
Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 659,133 | 655,800 | |
Commercial real estate | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 659,133 | 655,800 | |
Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 312,644 | 313,371 | |
Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 212,665 | 209,438 | |
Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 99,979 | 103,933 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,226 | 5,093 | |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 5,224 | 5,093 | |
Consumer | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2 | 0 | |
Pass | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 285,940 | 285,092 | |
Pass | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 91,200 | 93,000 | |
Pass | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 651,835 | 647,519 | |
Pass | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 207,747 | 204,261 | |
Pass | Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 99,640 | 103,541 | |
Special Mention | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,768 | 154 | |
Special Mention | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 1,840 | |
Special Mention | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,911 | 4,403 | |
Special Mention | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,152 | 1,685 | |
Special Mention | Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Substandard | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 1,593 | 726 | |
Substandard | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 2,559 | 2,400 | |
Substandard | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,387 | 3,878 | |
Substandard | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 3,766 | 3,492 | |
Substandard | Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 339 | 392 | |
Doubtful | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | 0 | 0 | |
Doubtful | Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | Mar. 31, 2019 | Dec. 31, 2018 | ||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | $ 12,805 | [1] | $ 13,603 | $ 13,603 | ||||
Provision for (recovery of) loan losses | 16 | (44) | (103) | |||||
Charge-offs | (69) | (44) | (1,020) | |||||
Recoveries | 54 | 60 | 325 | |||||
Balance, end of period | 12,806 | 13,575 | 12,805 | [1] | ||||
Reserve for Unfunded Lending Commitments | ||||||||
Balance, beginning of period | 217 | 206 | 206 | |||||
Provision for unfunded commitments | 12 | 5 | 11 | |||||
Charge-offs | 0 | 0 | 0 | |||||
Balance, end of period | 229 | 211 | 217 | |||||
Allowance for Loan Losses | ||||||||
Individually evaluated for impairment | $ 62 | $ 64 | ||||||
Collectively evaluated for impairment | 12,546 | 12,560 | ||||||
Total | 12,805 | [1] | 13,603 | 13,603 | 12,806 | 12,805 | [1] | |
Loans | ||||||||
Individually evaluated for impairment | 1,273 | 1,334 | ||||||
Collectively evaluated for impairment | 1,339,451 | 1,335,531 | ||||||
Total Loans | 1,360,063 | 1,357,476 | [1] | |||||
Acquired impaired loans | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 181 | |||||||
Balance, end of period | 198 | 181 | ||||||
Allowance for Loan Losses | ||||||||
Total | 181 | 181 | 198 | 181 | ||||
Loans | ||||||||
Total Loans | 19,339 | 20,611 | ||||||
Commercial | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 2,537 | 2,413 | 2,413 | |||||
Provision for (recovery of) loan losses | 246 | 842 | ||||||
Charge-offs | (11) | (787) | ||||||
Recoveries | 7 | 69 | ||||||
Balance, end of period | 2,779 | 2,537 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated for impairment | 53 | 55 | ||||||
Collectively evaluated for impairment | 2,726 | 2,482 | ||||||
Total | 2,537 | 2,413 | 2,413 | 2,779 | 2,537 | |||
Loans | ||||||||
Individually evaluated for impairment | 59 | 90 | ||||||
Collectively evaluated for impairment | 288,846 | 285,431 | ||||||
Total Loans | 289,301 | 285,972 | ||||||
Commercial | Acquired impaired loans | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 0 | |||||||
Balance, end of period | 0 | 0 | ||||||
Allowance for Loan Losses | ||||||||
Total | 0 | 0 | 0 | 0 | ||||
Loans | ||||||||
Total Loans | 396 | 451 | ||||||
Commercial Real Estate | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 7,246 | 8,321 | 8,321 | |||||
Provision for (recovery of) loan losses | (199) | (1,074) | ||||||
Charge-offs | (6) | (11) | ||||||
Recoveries | 0 | 10 | ||||||
Balance, end of period | 7,041 | 7,246 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 7,003 | 7,211 | ||||||
Total | 7,246 | 8,321 | 8,321 | 7,041 | 7,246 | |||
Loans | ||||||||
Individually evaluated for impairment | 362 | 376 | ||||||
Collectively evaluated for impairment | 742,900 | 742,365 | ||||||
Total Loans | 752,892 | 753,040 | ||||||
Commercial Real Estate | Acquired impaired loans | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 35 | |||||||
Balance, end of period | 38 | 35 | ||||||
Allowance for Loan Losses | ||||||||
Total | 35 | 35 | 38 | 35 | ||||
Loans | ||||||||
Total Loans | 9,630 | 10,299 | ||||||
Residential Real Estate | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 2,977 | 2,825 | 2,825 | |||||
Provision for (recovery of) loan losses | (32) | 89 | ||||||
Charge-offs | (20) | (86) | ||||||
Recoveries | 13 | 149 | ||||||
Balance, end of period | 2,938 | 2,977 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated for impairment | 9 | 9 | ||||||
Collectively evaluated for impairment | 2,769 | 2,822 | ||||||
Total | 2,977 | 2,825 | 2,825 | 2,938 | 2,977 | |||
Loans | ||||||||
Individually evaluated for impairment | 852 | 868 | ||||||
Collectively evaluated for impairment | 302,494 | 302,657 | ||||||
Total Loans | 312,644 | 313,371 | ||||||
Residential Real Estate | Acquired impaired loans | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 146 | |||||||
Balance, end of period | 160 | 146 | ||||||
Allowance for Loan Losses | ||||||||
Total | 146 | 146 | 160 | 146 | ||||
Loans | ||||||||
Total Loans | 9,298 | 9,846 | ||||||
Consumer | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 45 | 44 | 44 | |||||
Provision for (recovery of) loan losses | 1 | 40 | ||||||
Charge-offs | (32) | (136) | ||||||
Recoveries | 34 | 97 | ||||||
Balance, end of period | 48 | 45 | ||||||
Allowance for Loan Losses | ||||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 48 | 45 | ||||||
Total | 45 | $ 44 | 44 | 48 | 45 | |||
Loans | ||||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 5,211 | 5,078 | ||||||
Total Loans | 5,226 | 5,093 | ||||||
Consumer | Acquired impaired loans | ||||||||
Allowance for Loan Losses | ||||||||
Balance, beginning of period | 0 | |||||||
Balance, end of period | 0 | 0 | ||||||
Allowance for Loan Losses | ||||||||
Total | $ 0 | $ 0 | 0 | 0 | ||||
Loans | ||||||||
Total Loans | $ 15 | $ 15 | ||||||
[1] | Derived from audited consolidated financial statements. |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 1 Months Ended | 3 Months Ended | |||
Jan. 31, 2015 | Jul. 31, 2011 | Mar. 31, 2019 | Mar. 31, 2018 | ||
Goodwill | |||||
Beginning Balance | [1] | $ 43,872 | |||
Additions | 0 | ||||
Amortization | 0 | ||||
Impairment | 0 | ||||
Ending Balance | 43,872 | $ 43,872 | |||
Intangibles | |||||
Beginning Balance | 926 | ||||
Additions | 0 | ||||
Amortization | (55) | $ (77) | |||
Impairment | 0 | ||||
Ending Balance | $ 871 | ||||
MidCarolina | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 6,556 | ||||
Amortization period of intangible | 108 months | ||||
MainStreet BankShares, Inc. | |||||
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Core deposit intangible | $ 1,839 | ||||
Amortization period of intangible | 120 months | ||||
[1] | Derived from audited consolidated financial statements. |
Short-term Borrowings (Details)
Short-term Borrowings (Details) | Mar. 31, 2019USD ($)bank | Dec. 31, 2018USD ($) | [1] |
Debt Disclosure [Abstract] | |||
Federal funds line of credit, number of banks | bank | 2 | ||
Federal funds line of credit, amount per agreement | $ 15,000,000 | ||
Customer repurchase agreements | $ 35,945,000 | $ 35,243,000 | |
[1] | Derived from audited consolidated financial statements. |
Long-term Borrowings (Details)
Long-term Borrowings (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Long term advances with federal home loan bank [Abstract] | |
Percentage of entity's assets equal to line of credit facility | 30.00% |
Collateral pledged under blanket floating lien agreement | $ 583,259 |
Public deposit accounts | 257,240 |
Outstanding letters of credit | 192,500 |
Federal Home Loan Bank Advances | |
Long term advances with federal home loan bank [Abstract] | |
Outstanding letters of credit | 190,000 |
US government and agency securities | |
Long term advances with federal home loan bank [Abstract] | |
Outstanding letters of credit | $ 91,018 |
Junior Subordinated Debt - Addi
Junior Subordinated Debt - Additional Information (Details) $ in Thousands | Apr. 07, 2006USD ($) | Mar. 31, 2019USD ($) | Jul. 01, 2011USD ($)trust |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Proceeds from issuance of trust preferred securities | $ 20,000 | ||
Number of consecutive quarterly periods (up to 20 quarterly periods) | 5 years | ||
Proceeds from issuance of common securities | $ 619 | ||
Junior subordinated debt securities, amount | $ 20,619 | ||
MidCarolina | Delaware | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Number of statutory trusts | trust | 2 | ||
Mid Carolina Trust | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Junior subordinated debt securities, amount | $ 8,764 | ||
Equity method investments | $ 264 | ||
AMNB Trust I | |||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | |||
Equity method investments | $ 619 |
Junior Subordinated Debt - Outs
Junior Subordinated Debt - Outstanding Payables (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Dec. 31, 2018 | Jul. 01, 2011 | Apr. 07, 2006 | |
Debt Instrument [Line Items] | ||||
Principal Amount | $ 20,619 | |||
MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Valuation allowance associated with junior subordinated debenture | $ 1,430 | $ 1,197 | ||
MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Valuation allowance associated with junior subordinated debenture | $ 1,456 | $ 1,021 | ||
Junior Subordinated Debt Securities | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 27,953 | 27,927 | ||
Junior Subordinated Debt Securities | AMNB Trust I | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 20,619 | 20,619 | ||
Junior Subordinated Debt Securities | MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 4,391 | 4,377 | ||
Junior Subordinated Debt Securities | MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 2,943 | $ 2,931 | ||
Junior Subordinated Debt Securities | LIBOR | AMNB Trust I | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.35% | |||
Junior Subordinated Debt Securities | LIBOR | MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.45% | |||
Junior Subordinated Debt Securities | LIBOR | MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.95% |
Derivative Financial Instrume_3
Derivative Financial Instruments and Hedging Activities (Details) - Cash Flow Hedging - Interest Rate Swap $ in Thousands | Mar. 31, 2019USD ($)position | Dec. 31, 2018USD ($)position |
Derivative [Line Items] | ||
Notional Amount | $ 28,500 | $ 28,500 |
Positions | position | 3 | 3 |
Assets | $ 0 | $ 0 |
Derivative - cash flow hedges | 1,529 | 804 |
Cash Collateral Pledged | $ 1,500 | $ 650 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | May 15, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common stock authorizes for issuance (in shares) | 675,000 | |||
Unrecognized compensation expense | $ 0 | |||
Regular quarterly board retainer if restricted stock vested | 7,500 | |||
Monthly meeting fees a director could receive in cash | 725 | |||
Monthly meeting fees a director could receive if restricted stock vested | $ 900 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum vesting period of granted restricted stock | 36 months | |||
Unrecognized compensation expense | $ 1,127,000 | $ 647,000 | ||
Weighted average period for recognition of unrecognized compensation cost | 1 year 5 months 24 days | |||
Share based compensation expense | $ 166,000 | $ 147,000 | ||
Number of shares issued (in shares) | 4,106 | 3,477 | ||
Recognized share based compensation expense | $ 147,000 | $ 130,000 | ||
Restricted Stock | Vesting 2018 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of remainder of restricted stock vesting each year | 33.33% | |||
Restricted Stock | Vesting 2019 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of remainder of restricted stock vesting each year | 33.33% | |||
Restricted Stock | Vesting 2020 | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of remainder of restricted stock vesting each year | 33.33% |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Option Shares | ||
Outstanding at beginning of period (in shares) | 13,200 | |
Granted (in shares) | 0 | |
Exercised (in shares) | (13,200) | (3,300) |
Forfeited (in shares) | 0 | |
Expired (in shares) | 0 | |
Outstanding at end of period (in shares) | 0 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (in dollars per share) | $ 21.97 | |
Granted (in dollars per share) | 0 | |
Exercised (in dollars per share) | 21.97 | |
Forfeited (in dollars per share) | 0 | |
Expired (in dollars per share) | 0 | |
Outstanding at end of period (in dollars per share) | $ 0 | |
Weighted Average Remaining Contractual Term | ||
Outstanding at end of period | 1 day | |
Aggregate Intrinsic Value | ||
Outstanding at end of period | $ 0 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity (Details) - Restricted Stock | 3 Months Ended |
Mar. 31, 2019$ / sharesshares | |
Shares | |
Nonvested at beginning of period (in shares) | shares | 52,798 |
Granted (in shares) | shares | 18,926 |
Vested (in shares) | shares | (20,285) |
Forfeited (in shares) | shares | 0 |
Nonvested at end of period (in shares) | shares | 51,439 |
Weighted Average Grant Date Value Per Share | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 31.71 |
Granted (in dollars per share) | $ / shares | 32.33 |
Vested (in dollars per share) | $ / shares | 23.12 |
Forfeited (in dollars per share) | $ / shares | 0 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 35.33 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Shares | ||
Basic earnings per share (in shares) | 8,745,174 | 8,669,728 |
Effect of dilutive securities - stock options (in shares) | 549 | 17,623 |
Diluted earnings per share (in shares) | 8,745,723 | 8,687,351 |
Per Share Amount | ||
Basic earnings per share (in dollars per share) | $ 0.69 | $ 0.67 |
Effect of dilutive securities - stock options (in dollars per share) | 0 | 0 |
Diluted earnings per share (in dollars per share) | $ 0.69 | $ 0.67 |
Stock Options | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive securities not included in computation of earning per share (in shares) | 0 | 0 |
Employee Benefit Plans (Details
Employee Benefit Plans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Components of Net Periodic Benefit Cost | ||
Service cost | $ 0 | $ 0 |
Interest cost | 58 | 51 |
Expected return on plan assets | (68) | (64) |
Recognized loss due to settlement | 26 | 25 |
Recognized net actuarial loss | 65 | 68 |
Net periodic cost | $ 81 | $ 80 |
Fair Value Measurements - Asse
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Assets: | ||||
Securities available for sale | $ 324,289 | $ 332,653 | [1] | |
Equity securities, at fair value | 2,069 | 1,830 | [1] | $ 2,320 |
Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Securities available for sale | 324,289 | 332,653 | ||
Equity securities, at fair value | 2,069 | 1,830 | ||
Derivative - cash flow hedges | 1,529 | 804 | ||
Level 3 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Federal agencies and GSEs | ||||
Assets: | ||||
Securities available for sale | 130,972 | 134,039 | ||
Mortgage-backed and CMOs | ||||
Assets: | ||||
Securities available for sale | 108,477 | 111,867 | ||
State and municipal | ||||
Assets: | ||||
Securities available for sale | 77,970 | 79,902 | ||
Corporate | ||||
Assets: | ||||
Securities available for sale | 6,870 | 6,845 | ||
Fair Value, Measurements, Recurring | ||||
Assets: | ||||
Securities available for sale | 324,289 | 332,653 | ||
Equity securities, at fair value | 2,069 | 1,830 | ||
Derivative - cash flow hedges | 1,529 | 804 | ||
Fair Value, Measurements, Recurring | Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Equity securities, at fair value | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Fair Value, Measurements, Recurring | Level 2 | ||||
Assets: | ||||
Securities available for sale | 324,289 | 332,653 | ||
Equity securities, at fair value | 2,069 | 1,830 | ||
Derivative - cash flow hedges | 1,529 | 804 | ||
Fair Value, Measurements, Recurring | Level 3 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Equity securities, at fair value | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Fair Value, Measurements, Recurring | Federal agencies and GSEs | ||||
Assets: | ||||
Securities available for sale | 130,972 | 134,039 | ||
Fair Value, Measurements, Recurring | Federal agencies and GSEs | Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Federal agencies and GSEs | Level 2 | ||||
Assets: | ||||
Securities available for sale | 130,972 | 134,039 | ||
Fair Value, Measurements, Recurring | Federal agencies and GSEs | Level 3 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed and CMOs | ||||
Assets: | ||||
Securities available for sale | 108,477 | 111,867 | ||
Fair Value, Measurements, Recurring | Mortgage-backed and CMOs | Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Mortgage-backed and CMOs | Level 2 | ||||
Assets: | ||||
Securities available for sale | 108,477 | 111,867 | ||
Fair Value, Measurements, Recurring | Mortgage-backed and CMOs | Level 3 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | State and municipal | ||||
Assets: | ||||
Securities available for sale | 77,970 | 79,902 | ||
Fair Value, Measurements, Recurring | State and municipal | Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | State and municipal | Level 2 | ||||
Assets: | ||||
Securities available for sale | 77,970 | 79,902 | ||
Fair Value, Measurements, Recurring | State and municipal | Level 3 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Corporate | ||||
Assets: | ||||
Securities available for sale | 6,870 | 6,845 | ||
Fair Value, Measurements, Recurring | Corporate | Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Fair Value, Measurements, Recurring | Corporate | Level 2 | ||||
Assets: | ||||
Securities available for sale | 6,870 | 6,845 | ||
Fair Value, Measurements, Recurring | Corporate | Level 3 | ||||
Assets: | ||||
Securities available for sale | $ 0 | $ 0 | ||
[1] | Derived from audited consolidated financial statements. |
Fair Value Measurements - Addi
Fair Value Measurements - Additional Information (Details) | 3 Months Ended | 12 Months Ended |
Mar. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
Fair Value, Measurements, Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets fair value adjustments | $ | $ 0 | $ 0 |
Minimum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of residential loans originated for sale in secondary markets | 1 | |
Maximum | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Number of residential loans originated for sale in secondary markets | 4 |
Fair Value Measurements - As_2
Fair Value Measurements - Assets Measured on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Assets: | ||
Loans held for sale | $ 0 | $ 0 |
Level 2 | ||
Assets: | ||
Loans held for sale | 1,252 | 640 |
Level 3 | ||
Assets: | ||
Loans held for sale | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Assets: | ||
Loans held for sale | 1,252 | 640 |
Impaired loans, net of valuation allowance | 168 | 171 |
Other real estate owned, net | 646 | 869 |
Fair Value, Measurements, Nonrecurring | Level 1 | ||
Assets: | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 2 | ||
Assets: | ||
Loans held for sale | 1,252 | 640 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Assets: | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 168 | 171 |
Other real estate owned, net | $ 646 | $ 869 |
Fair Value Measurements - Leve
Fair Value Measurements - Level 3 Quantitative Information (Details) - Level 3 | Mar. 31, 2019 |
Discounted appraised value | Selling cost | |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | |
Impaired loans | 0.0800 |
Other real estate owned, net | 0.0800 |
Discounted cash flow analysis | Discount rate | Minimum | |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | |
Impaired loans | 0.0325 |
Discounted cash flow analysis | Discount rate | Maximum | |
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | |
Impaired loans | 0.0980 |
Fair Value Measurements - Carr
Fair Value Measurements - Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Dec. 31, 2018 | Mar. 31, 2018 | |
Financial Assets: | ||||
Equity securities, at fair value | $ 2,069 | $ 1,830 | [1] | $ 2,320 |
Securities available for sale | 324,289 | 332,653 | [1] | |
Level 1 | ||||
Financial Assets: | ||||
Cash and cash equivalents | 70,861 | 64,255 | ||
Securities available for sale | 0 | 0 | ||
Restricted stock | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans, net of allowance | 0 | 0 | ||
Bank owned life insurance | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Financial Liabilities: | ||||
Deposits | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Junior subordinated debt | 0 | 0 | ||
Accrued interest payable | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Level 2 | ||||
Financial Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Equity securities, at fair value | 2,069 | 1,830 | ||
Securities available for sale | 324,289 | 332,653 | ||
Restricted stock | 5,299 | 5,247 | ||
Loans held for sale | 1,252 | 640 | ||
Loans, net of allowance | 0 | 0 | ||
Bank owned life insurance | 19,047 | 18,941 | ||
Accrued interest receivable | 5,373 | 5,449 | ||
Financial Liabilities: | ||||
Deposits | 1,561,355 | 1,570,721 | ||
Repurchase agreements | 35,945 | 35,243 | ||
Junior subordinated debt | 0 | 0 | ||
Accrued interest payable | 846 | 795 | ||
Derivative - cash flow hedges | 1,529 | 804 | ||
Level 3 | ||||
Financial Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Securities available for sale | 0 | 0 | ||
Restricted stock | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans, net of allowance | 1,337,337 | 1,334,236 | ||
Bank owned life insurance | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Financial Liabilities: | ||||
Deposits | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Junior subordinated debt | 23,307 | 22,577 | ||
Accrued interest payable | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Carrying Value | ||||
Financial Assets: | ||||
Cash and cash equivalents | 70,861 | 64,255 | ||
Equity securities, at fair value | 2,069 | 1,830 | ||
Securities available for sale | 324,289 | 332,653 | ||
Restricted stock | 5,299 | 5,247 | ||
Loans held for sale | 1,252 | 640 | ||
Loans, net of allowance | 1,347,257 | 1,344,671 | ||
Bank owned life insurance | 19,047 | 18,941 | ||
Accrued interest receivable | 5,373 | 5,449 | ||
Financial Liabilities: | ||||
Deposits | 1,559,790 | 1,566,227 | ||
Repurchase agreements | 35,945 | 35,243 | ||
Junior subordinated debt | 27,953 | 27,927 | ||
Accrued interest payable | 846 | 795 | ||
Derivative - cash flow hedges | 1,529 | 804 | ||
Fair Value | ||||
Financial Assets: | ||||
Cash and cash equivalents | 70,861 | 64,255 | ||
Equity securities, at fair value | 2,069 | 1,830 | ||
Securities available for sale | 324,289 | 332,653 | ||
Restricted stock | 5,299 | 5,247 | ||
Loans held for sale | 1,252 | 640 | ||
Loans, net of allowance | 1,337,337 | 1,334,236 | ||
Bank owned life insurance | 19,047 | 18,941 | ||
Accrued interest receivable | 5,373 | 5,449 | ||
Financial Liabilities: | ||||
Deposits | 1,561,355 | 1,570,721 | ||
Repurchase agreements | 35,945 | 35,243 | ||
Junior subordinated debt | 23,307 | 22,577 | ||
Accrued interest payable | 846 | 795 | ||
Derivative - cash flow hedges | $ 1,529 | $ 804 | ||
[1] | Derived from audited consolidated financial statements. |
Segment and Related Informati_3
Segment and Related Information (Details) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019USD ($)segment | Mar. 31, 2018USD ($) | Dec. 31, 2018USD ($) | [1] | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 2 | |||
Segment Reporting Information [Line Items] | ||||
Interest income | $ 18,096 | $ 16,668 | ||
Interest expense | 3,028 | 2,125 | ||
Noninterest income | 3,451 | 3,333 | ||
Income (loss) before income taxes | 7,574 | 7,218 | ||
Net income (loss) | 6,003 | 5,812 | ||
Depreciation and amortization | 460 | 543 | ||
Total assets | 1,868,404 | 1,817,574 | $ 1,862,866 | |
Goodwill | 43,872 | 43,872 | $ 43,872 | |
Capital expenditures | 393 | 345 | ||
Operating Segments | Community Banking | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 17,999 | 16,580 | ||
Interest expense | 2,644 | 1,835 | ||
Noninterest income | 2,060 | 2,063 | ||
Income (loss) before income taxes | 7,520 | 7,026 | ||
Net income (loss) | 5,997 | 5,653 | ||
Depreciation and amortization | 458 | 540 | ||
Total assets | 1,857,272 | 1,807,991 | ||
Goodwill | 43,872 | 43,872 | ||
Capital expenditures | 386 | 345 | ||
Operating Segments | Trust and Investment Services | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Noninterest income | 1,061 | 1,151 | ||
Income (loss) before income taxes | 480 | 453 | ||
Net income (loss) | 380 | 365 | ||
Depreciation and amortization | 2 | 3 | ||
Total assets | 0 | 0 | ||
Goodwill | 0 | 0 | ||
Capital expenditures | 7 | 0 | ||
Other | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 97 | 88 | ||
Interest expense | 384 | 290 | ||
Noninterest income | 330 | 119 | ||
Income (loss) before income taxes | (426) | (261) | ||
Net income (loss) | (374) | (206) | ||
Depreciation and amortization | 0 | 0 | ||
Total assets | 259,009 | 237,802 | ||
Goodwill | 0 | 0 | ||
Capital expenditures | 0 | 0 | ||
Intersegment Eliminations | ||||
Segment Reporting Information [Line Items] | ||||
Interest income | 0 | 0 | ||
Interest expense | 0 | 0 | ||
Noninterest income | 0 | 0 | ||
Income (loss) before income taxes | 0 | 0 | ||
Net income (loss) | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | ||
Total assets | (247,877) | (228,219) | ||
Goodwill | 0 | 0 | ||
Capital expenditures | $ 0 | $ 0 | ||
[1] | Derived from audited consolidated financial statements. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Dec. 31, 2018 | [1] | |
Supplemental Schedule of Cash and Cash Equivalents: | ||||
Cash and due from banks | $ 28,912 | $ 18,772 | $ 29,587 | |
Interest-bearing deposits in other banks | 41,949 | 57,881 | $ 34,668 | |
Cash and Cash Equivalents | 70,861 | 76,653 | ||
Cash paid for: | ||||
Interest on deposits and borrowed funds | 2,978 | 2,101 | ||
Income taxes | 0 | 0 | ||
Noncash investing and financing activities: | ||||
Transfer of loans to other real estate owned | 0 | 532 | ||
Increase in operating lease right-of-use asset upon adoption of ASU 2016-02 | 4,413 | |||
Increase in operating lease liability upon adoption of ASU 2016-02 | 4,413 | |||
Unrealized gains (losses) on securities available for sale | 3,965 | (3,742) | ||
Unrealized losses on cash flow hedges | $ (725) | |||
Unrealized losses on cash flow hedges | $ 0 | |||
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Mar. 31, 2019 | Mar. 31, 2018 | Jan. 01, 2019 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | $ 222,542 | [1] | $ 208,717 | |
Net unrealized gains (losses) on securities available for sale, net of tax | 3,080 | (2,873) | ||
Reclassification adjustment for realized gains on securities, net of tax | (3) | (6) | ||
Reclassification for ASU 2016-01 adoption | $ 0 | |||
Unrealized losses on cash flow hedges | (563) | |||
Ending Balance | 229,473 | 209,840 | ||
Net unrealized gains (losses) on securities available for sale, tax | 889 | (861) | ||
Reclassification adjustment for realized gains on securities, tax | (1) | (2) | ||
Tax effect | (162) | |||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | (650) | |||
Net Unrealized Gains (Losses) on Securities | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (3,973) | (796) | ||
Net unrealized gains (losses) on securities available for sale, net of tax | 3,080 | (2,873) | ||
Reclassification adjustment for realized gains on securities, net of tax | (3) | (6) | ||
Ending Balance | (896) | (4,325) | ||
Tax Cuts and Jobs Act of 2017, Reclassification from AOCI to Retained Earnings, Tax Effect | (650) | |||
Unrealized Losses on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | 0 | |||
Ending Balance | 0 | |||
Unrealized Losses on Cash Flow Hedges | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (624) | |||
Unrealized losses on cash flow hedges | (563) | |||
Ending Balance | (1,187) | |||
Adjustments Related to Pension Benefits | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (1,238) | (2,280) | ||
Ending Balance | (1,238) | (2,280) | ||
Accumulated Other Comprehensive Income (Loss) | ||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||
Beginning Balance | (5,835) | (3,076) | ||
Ending Balance | $ (3,321) | $ (6,605) | ||
[1] | Derived from audited consolidated financial statements. |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2019 | Mar. 31, 2018 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Securities gains, net | $ 323 | $ 121 |
Income taxes | (1,571) | (1,406) |
Net income (loss) | 6,003 | 5,812 |
Reclassifications | 3 | 6 |
Realized gain on call of securities | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications | 3 | 6 |
Amount Reclassified from AOCI | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Net income (loss) | 3 | |
Reclassifications | 656 | |
Amount Reclassified from AOCI | Realized gain on call of securities | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Securities gains, net | 4 | 8 |
Income taxes | $ (1) | (2) |
Net income (loss) | 6 | |
Amount Reclassified from AOCI | Adjustments Related to Pension Benefits | ||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||
Reclassifications | $ 650 |
Completed Merger (Details)
Completed Merger (Details) $ in Thousands | Apr. 01, 2019USD ($)officeoffice_consolidationshares | Mar. 31, 2019USD ($) | Dec. 31, 2018USD ($) | [1] | Mar. 31, 2018USD ($) |
Business Acquisition [Line Items] | |||||
Total assets | $ 1,868,404 | $ 1,862,866 | $ 1,817,574 | ||
Subsequent Event | |||||
Business Acquisition [Line Items] | |||||
Number of office consolidations | office_consolidation | 2 | ||||
Subsequent Event | HomeTown Bankshares Corporation Merger | |||||
Business Acquisition [Line Items] | |||||
Total assets | $ 2,500,000 | ||||
Number of shares issued per share of common stock (in shares) | shares | 0.4150 | ||||
Subsequent Event | Roanoke/New River Valley Markets | HomeTown Bankshares Corporation Merger | |||||
Business Acquisition [Line Items] | |||||
Number of offices after the merger | office | 8 | ||||
[1] | Derived from audited consolidated financial statements. |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Mar. 31, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | ||
Lease liabilities | $ 4,238 | |
Right-of-use assets | $ 4,237 | |
Accounting Standards Update 2016-02 | ||
Lessee, Lease, Description [Line Items] | ||
Lease liabilities | $ 4,400 | |
Right-of-use assets | $ 4,400 |
Leases - Lease Information (Det
Leases - Lease Information (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease liabilities | $ 4,238 |
Right-of-use assets | $ 4,237 |
Weighted average remaining lease term | 9 years 3 months |
Weighted average discount rate | 3.22% |
Operating lease cost | $ 211 |
Short-term lease cost | 1 |
Total lease cost | 212 |
Cash paid for amounts included in the measurement of lease liabilities | $ 209 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Mar. 31, 2019USD ($) |
Leases [Abstract] | |
Nine months ending December 31, 2019 | $ 592 |
Twelve months ending December 31, 2020 | 667 |
Twelve months ending December 31, 2021 | 656 |
Twelve months ending December 31, 2022 | 632 |
Twelve months ending December 31, 2023 | 529 |
Twelve months ending December 31, 2024 | 211 |
Thereafter | 1,677 |
Total undiscounted cash flows | 4,964 |
Discount | (726) |
Lease liabilities | $ 4,238 |
Uncategorized Items - amnb-2019
Label | Element | Value |
Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 650,000 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (650,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 650,000 |