Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2019 | Jul. 29, 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 | Smaller Reporting Company | |
Entity Common Stock, Shares Outstanding (in shares) | 11,143,132 | |
Document Fiscal Year Focus | 2019 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2019 | |
Emerging Growth Company | false | |
Small Business | true | |
Entity Shell Company | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Assets | |||
Cash and due from banks | $ 34,460 | $ 29,587 | [1] |
Interest-bearing deposits in other banks | 20,454 | 34,668 | [1] |
Equity securities, at fair value | 125 | 1,830 | [1] |
Securities available for sale, at fair value | 334,326 | 332,653 | [1] |
Restricted stock, at cost | 7,796 | 5,247 | [1] |
Loans held for sale | 3,165 | 640 | [1] |
Loans, net of unearned income | 1,836,241 | 1,357,476 | [1] |
Less allowance for loan losses | (12,786) | (12,805) | [1] |
Net loans | 1,823,455 | 1,344,671 | [1] |
Premises and equipment, net | 39,038 | 26,675 | [1] |
Other real estate owned, net of valuation allowance of $144 in 2019 and $109 in 2018 | 1,433 | 869 | [1] |
Goodwill | 84,633 | 43,872 | [1] |
Core deposit intangibles, net | 8,613 | 926 | [1] |
Bank owned life insurance | 27,451 | 18,941 | [1] |
Accrued interest receivable and other assets | 33,133 | 22,287 | [1] |
Total assets | 2,418,082 | 1,862,866 | [1] |
Liabilities | |||
Demand deposits -- noninterest bearing | 554,400 | 435,828 | [1] |
Demand deposits -- interest bearing | 326,105 | 234,621 | [1] |
Money market deposits | 451,343 | 401,461 | [1] |
Savings deposits | 178,723 | 132,360 | [1] |
Time deposits | 488,526 | 361,957 | [1] |
Total deposits | 1,999,097 | 1,566,227 | [1] |
Customer repurchase agreements | 37,222 | 35,243 | [1] |
Other short-term borrowings | 13,528 | 0 | [1] |
Subordinated debt | 7,526 | 0 | |
Junior subordinated debt | 27,978 | 27,927 | [1] |
Accrued interest payable and other liabilities | 20,814 | 10,927 | [1] |
Total liabilities | 2,106,165 | 1,640,324 | [1] |
Shareholders' equity | |||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | 0 | 0 | [1] |
Common stock, $1 par, 20,000,000 shares authorized, 11,141,355 shares outstanding at June 30, 2019 and 8,720,337 shares outstanding at December 31, 2018 | 11,089 | 8,668 | [1] |
Capital in excess of par value | 160,572 | 78,172 | [1] |
Retained earnings | 141,339 | 141,537 | [1] |
Accumulated other comprehensive loss, net | (1,083) | (5,835) | [1] |
Total shareholders' equity | 311,917 | 222,542 | [1] |
Total liabilities and shareholders' equity | $ 2,418,082 | $ 1,862,866 | [1] |
[1] | Derived from audited consolidated financial statements. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Valuation allowance | $ 144 | $ 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) | 11,141,355 | 8,720,337 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest and Dividend Income: | ||||
Interest and fees on loans | $ 22,629 | $ 14,766 | $ 38,267 | $ 29,423 |
Interest and dividends on securities: | ||||
Taxable | 1,980 | 1,540 | 3,801 | 2,864 |
Tax-exempt | 239 | 423 | 526 | 842 |
Dividends | 105 | 78 | 189 | 158 |
Other interest income | 258 | 185 | 524 | 373 |
Total interest and dividend income | 25,211 | 16,992 | 43,307 | 33,660 |
Interest Expense: | ||||
Interest on deposits | 3,520 | 1,873 | 5,992 | 3,698 |
Interest on short-term borrowings | 178 | 2 | 350 | 12 |
Interest on long-term borrowings | 14 | 0 | 14 | 0 |
Interest on subordinated debt | 122 | 0 | 122 | 0 |
Interest on junior subordinated debt | 388 | 329 | 772 | 619 |
Total interest expense | 4,222 | 2,204 | 7,250 | 4,329 |
Net Interest Income | 20,989 | 14,788 | 36,057 | 29,331 |
Provision for (recovery of) loan losses | (10) | (30) | 6 | (74) |
Net Interest Income After Provision for (Recovery of) Loan Losses | 20,999 | 14,818 | 36,051 | 29,405 |
Noninterest Income: | ||||
Trust fees | 933 | 945 | 1,847 | 1,874 |
Service charges on deposit accounts | 724 | 592 | 1,318 | 1,204 |
Other fees and commissions | 1,015 | 679 | 1,723 | 1,321 |
Mortgage banking income | 586 | 491 | 992 | 941 |
Securities gains, net | 147 | 289 | 470 | 410 |
Brokerage fees | 186 | 209 | 333 | 431 |
Income (loss) from Small Business Investment Companies | (137) | 171 | 31 | 326 |
Gains (losses) on premises and equipment, net | (87) | 0 | (87) | 3 |
Other | 315 | 187 | 506 | 386 |
Total noninterest income | 3,682 | 3,563 | 7,133 | 6,896 |
Noninterest Expense: | ||||
Salaries | 7,048 | 5,095 | 11,712 | 10,092 |
Employee benefits | 1,425 | 1,111 | 2,655 | 2,286 |
Occupancy and equipment | 1,431 | 1,100 | 2,515 | 2,228 |
FDIC assessment | 169 | 132 | 294 | 278 |
Bank franchise tax | 412 | 291 | 702 | 572 |
Core deposit intangible amortization | 458 | 77 | 513 | 154 |
Data processing | 717 | 467 | 1,249 | 889 |
Software | 321 | 354 | 645 | 659 |
Other real estate owned, net | (44) | 25 | (31) | 55 |
Merger related expense | 10,871 | 0 | 11,322 | 0 |
Other | 3,508 | 2,350 | 5,669 | 4,491 |
Total noninterest expense | 26,316 | 11,002 | 37,245 | 21,704 |
Income (Loss) Before Income Taxes | (1,635) | 7,379 | 5,939 | 14,597 |
Income Taxes | (405) | 1,399 | 1,166 | 2,805 |
Net Income (Loss) | $ (1,230) | $ 5,980 | $ 4,773 | $ 11,792 |
Net Income (Loss) Per Common Share: | ||||
Basic (in dollars per share) | $ (0.11) | $ 0.69 | $ 0.48 | $ 1.36 |
Diluted (in dollars per share) | $ (0.11) | $ 0.69 | $ 0.48 | $ 1.36 |
Weighted Average Common Shares Outstanding: | ||||
Basic (in shares) | 11,126,800 | 8,692,107 | 9,942,566 | 8,680,739 |
Diluted (in shares) | 11,126,800 | 8,704,726 | 9,952,115 | 8,695,860 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ (1,230) | $ 5,980 | $ 4,773 | $ 11,792 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available for sale | 4,106 | (1,446) | 8,075 | (5,180) |
Tax effect | (920) | 325 | (1,809) | 1,186 |
Reclassification adjustment for gains on sales or calls of securities available for sale | (136) | 0 | (140) | (8) |
Tax effect | 31 | 0 | 32 | 2 |
Unrealized losses on cash flow hedges | (1,086) | (1,811) | ||
Unrealized losses on cash flow hedges | (237) | (237) | ||
Tax effect | 243 | |||
Tax effect | 53 | 405 | 53 | |
Other comprehensive income (loss) | 2,238 | (1,305) | 4,752 | (4,184) |
Comprehensive income | $ 1,008 | $ 4,675 | $ 9,525 | $ 7,608 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity QTD Statement - 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 (loss) | 11,792 | 11,792 | ||||
Other comprehensive income (loss) | (4,184) | (4,184) | ||||
Stock options exercised | 775 | 32 | 743 | |||
Vesting of restricted stock | 0 | 10 | (10) | |||
Equity based compensation | 592 | 8 | 584 | |||
Cash dividends paid | (4,344) | (4,344) | ||||
Ending Balance at Jun. 30, 2018 | 213,348 | 8,654 | 77,496 | 135,108 | (7,910) | |
Beginning Balance at Mar. 31, 2018 | 209,840 | 8,621 | 76,525 | 131,299 | (6,605) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,980 | 5,980 | ||||
Other comprehensive income (loss) | (1,305) | (1,305) | ||||
Stock options exercised | 690 | 29 | 661 | |||
Vesting of restricted stock | 0 | 0 | 0 | |||
Equity based compensation | 314 | 4 | 310 | |||
Cash dividends paid | (2,171) | (2,171) | ||||
Ending Balance at Jun. 30, 2018 | 213,348 | 8,654 | 77,496 | 135,108 | (7,910) | |
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 (loss) | 4,773 | 4,773 | ||||
Other comprehensive income (loss) | 4,752 | 4,752 | ||||
Issuance of common stock | 82,470 | 2,362 | 80,108 | |||
Issuance of replacement options/restricted stock | 870 | 870 | ||||
Stock options exercised | 578 | 30 | 548 | |||
Vesting of restricted stock | 0 | 20 | (20) | |||
Equity based compensation | 903 | 9 | 894 | |||
Cash dividends paid | (4,971) | (4,971) | ||||
Ending Balance at Jun. 30, 2019 | 311,917 | 11,089 | 160,572 | 141,339 | (1,083) | |
Beginning Balance at Mar. 31, 2019 | 229,473 | 8,705 | 78,738 | 145,351 | (3,321) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,230) | (1,230) | ||||
Other comprehensive income (loss) | 2,238 | 2,238 | ||||
Issuance of common stock | 82,470 | 2,362 | 80,108 | |||
Issuance of replacement options/restricted stock | 870 | 870 | ||||
Stock options exercised | 288 | 17 | 271 | |||
Vesting of restricted stock | 0 | 0 | 0 | |||
Equity based compensation | 590 | 5 | 585 | |||
Cash dividends paid | (2,782) | (2,782) | ||||
Ending Balance at Jun. 30, 2019 | $ 311,917 | $ 11,089 | $ 160,572 | $ 141,339 | $ (1,083) | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity QTD (Parenthetical) - $ / shares | Apr. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 |
Statement of Stockholders' Equity [Abstract] | |||||
Issuance of common stock (in shares) | 2,361,686 | 2,361,686 | 2,361,686 | ||
Stock options exercised (in shares) | 17,330 | 28,710 | 30,530 | 32,010 | |
Equity-based compensation (in shares) | 5,770 | 4,384 | 28,802 | 25,570 | |
Cash dividends paid (in dollars per share) | $ 0.5 | $ 0.5 | $ 0.50 | $ 0.50 |
Consolidated Statements of Ch_3
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) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Change in accounting for late charges | $ (650) | |||||
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 (loss) | 11,792 | 11,792 | ||||
Other comprehensive income (loss) | (4,184) | (4,184) | ||||
Stock options exercised | 775 | 32 | 743 | |||
Vesting of restricted stock | 0 | 10 | (10) | |||
Equity based compensation | 592 | 8 | 584 | |||
Cash dividends paid | (4,344) | (4,344) | ||||
Ending Balance at Jun. 30, 2018 | 213,348 | 8,654 | 77,496 | 135,108 | (7,910) | |
Beginning Balance at Mar. 31, 2018 | 209,840 | 8,621 | 76,525 | 131,299 | (6,605) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | 5,980 | 5,980 | ||||
Other comprehensive income (loss) | (1,305) | (1,305) | ||||
Stock options exercised | 690 | 29 | 661 | |||
Vesting of restricted stock | 0 | 0 | 0 | |||
Equity based compensation | 314 | 4 | 310 | |||
Cash dividends paid | (2,171) | (2,171) | ||||
Ending Balance at Jun. 30, 2018 | 213,348 | 8,654 | 77,496 | 135,108 | (7,910) | |
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 (loss) | 4,773 | 4,773 | ||||
Other comprehensive income (loss) | 4,752 | 4,752 | ||||
Issuance of common stock | 82,470 | 2,362 | 80,108 | |||
Issuance of replacement options/restricted stock | 870 | 870 | ||||
Stock options exercised | 578 | 30 | 548 | |||
Vesting of restricted stock | 0 | 20 | (20) | |||
Equity based compensation | 903 | 9 | 894 | |||
Cash dividends paid | (4,971) | (4,971) | ||||
Ending Balance at Jun. 30, 2019 | 311,917 | 11,089 | 160,572 | 141,339 | (1,083) | |
Beginning Balance at Mar. 31, 2019 | 229,473 | 8,705 | 78,738 | 145,351 | (3,321) | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income (loss) | (1,230) | (1,230) | ||||
Other comprehensive income (loss) | 2,238 | 2,238 | ||||
Issuance of common stock | 82,470 | 2,362 | 80,108 | |||
Issuance of replacement options/restricted stock | 870 | 870 | ||||
Stock options exercised | 288 | 17 | 271 | |||
Vesting of restricted stock | 0 | 0 | 0 | |||
Equity based compensation | 590 | 5 | 585 | |||
Cash dividends paid | (2,782) | (2,782) | ||||
Ending Balance at Jun. 30, 2019 | $ 311,917 | $ 11,089 | $ 160,572 | $ 141,339 | $ (1,083) | |
[1] | Derived from audited consolidated financial statements. |
Consolidated Statements of Ch_4
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||
Issuance of common stock (in shares) | 2,361,686 | |
Stock options exercised (in shares) | 30,530 | 32,010 |
Vesting of restricted stock (in shares) | 20,285 | 10,101 |
Equity-based compensation (in shares) | 28,802 | 25,570 |
Cash dividends paid (in dollars per share) | $ 0.50 | $ 0.50 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Cash Flows from Operating Activities: | |||||
Net income (loss) | $ (1,230) | $ 5,980 | $ 4,773 | $ 11,792 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Provision for (recovery of) loan losses | (10) | (30) | 6 | (74) | $ (103) |
Depreciation | 958 | 933 | |||
Net accretion of acquisition accounting adjustments | (1,373) | (804) | |||
Core deposit intangible amortization | 458 | 77 | 513 | 154 | |
Net amortization of securities | 613 | 859 | |||
Net gain on sale or call of securities available for sale | (140) | (8) | |||
Net change in fair value of equity securities | (330) | (402) | |||
Gain on sale of loans held for sale | (992) | (941) | |||
Proceeds from sales of loans held for sale | 41,962 | 39,145 | |||
Originations of loans held for sale | (43,495) | (38,861) | |||
Net gain on other real estate owned | (134) | (25) | |||
Valuation allowance on other real estate owned | 56 | 22 | |||
Net loss (gain) on sale of premises and equipment | 87 | 0 | 87 | (3) | |
Equity based compensation expense | 903 | 592 | |||
Earnings on bank owned life insurance | (264) | (214) | |||
Deferred income tax expense (benefit) | 222 | (27) | |||
Net change in interest receivable | 229 | (62) | |||
Net change in other assets | 8,880 | (875) | |||
Net change in interest payable | 93 | (2) | |||
Net change in other liabilities | (2,211) | (34) | |||
Net cash provided by operating activities | 10,356 | 11,165 | |||
Cash Flows from Investing Activities: | |||||
Proceeds from sales of equity securities | 317 | 431 | |||
Proceeds from sales of securities available for sale | 29,878 | 0 | 29,878 | 22,066 | |
Proceeds from maturities, calls and paydowns of securities available for sale | 38,817 | 16,000 | |||
Purchases of securities available for sale | (26,312) | (66,221) | |||
Net change in restricted stock | 39 | 647 | |||
Net increase in loans | (33,371) | (2,952) | |||
Proceeds from sale of premises and equipment | 0 | 24 | |||
Purchases of premises and equipment | (1,299) | (932) | |||
Proceeds from sales of other real estate owned | 1,137 | 636 | |||
Cash paid in bank acquisition | (27) | 0 | |||
Cash acquired in bank acquisition | 26,283 | 0 | |||
Net cash provided by (used in) investing activities | 35,462 | (30,301) | |||
Cash Flows from Financing Activities: | |||||
Net change in demand, money market, and savings deposits | (36,239) | 37,585 | |||
Net change in time deposits | (14,373) | (11,565) | |||
Net change in customer repurchase agreements | 1,979 | (3,950) | |||
Net change in other short-term borrowings | (1,355) | (18,500) | |||
Net change in long-term borrowings | (778) | 0 | |||
Common stock dividends paid | (4,971) | (4,344) | |||
Proceeds from exercise of stock options | 578 | 775 | |||
Net cash (used in) provided by financing activities | (55,159) | 1 | |||
Net Decrease in Cash and Cash Equivalents | (9,341) | (19,135) | |||
Cash and Cash Equivalents at Beginning of Period | 64,255 | 52,477 | 52,477 | ||
Cash and Cash Equivalents at End of Period | $ 54,914 | $ 33,342 | $ 54,914 | $ 33,342 | $ 64,255 |
Accounting Policies
Accounting Policies | 6 Months Ended |
Jun. 30, 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, 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 11. 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. Based on FASB’s July 17, 2019 meeting, an exposure draft is expected that, once finalized, could change implementation dates for many companies . 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. In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments." The amendments in this ASU clarify and improve areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various Transition Resource Group Meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief." The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-05 will have on its consolidated financial statements. |
Acquisitions
Acquisitions | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Acquisitions | Acquisitions On April 1, 2019, the Company completed its acquisition of Roanoke-based HomeTown Bankshares Corporation ("HomeTown") and its wholly-owned subsidiary bank, HomeTown Bank. 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. The transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged were recorded at estimated fair values on the acquisition date. Fair values are preliminary and subject to refinement for up to one year after the closing date of the acquisition, in accordance with Accounting Standards Codification ("ASC") 350, Intangibles-Goodwill and Other. The following table provides a preliminary assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands): Consideration Paid: Common shares issued (2,361,686) $ 82,470 Issuance of replacement stock options/restricted stock 753 Cash paid in lieu of fractional shares 27 Value of consideration 83,250 Assets acquired: Cash and cash equivalents 26,283 Investment securities 34,876 Restricted stock 2,588 Loans 444,324 Premises and equipment 12,554 Deferred income taxes 2,329 Core deposit intangible 8,200 Other real estate owned 1,442 Banked owned life insurance 8,246 Other assets 14,244 Total assets 555,086 Liabilities assumed: Deposits 483,626 Short-term FHLB advances 14,883 Long-term FHLB advances 778 Subordinated debt 7,530 Other liabilities 5,780 Total liabilities 512,597 Net assets acquired 42,489 Goodwill resulting from merger with HomeTown $ 40,761 The acquired loans were recorded at fair value at the acquisition date without carryover of HomeTown's previously established allowance for loan losses. The fair value of the loans was determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and leases and then applying a market-based discount rate to those cash flows. In this regard, the acquired loans were segregated into pools based on loan type and credit risk. Loan type was determined based on collateral type, purpose, and lien position. Credit risk characteristics included risk rating groups (pass rated loans and adversely classified loans), and past due status. For valuation purposes, these pools were further disaggregated by maturity, pricing characteristics (e.g., fixed-rate, adjustable-rate) and re-payment structure (e.g., interest only, fully amortizing, balloon). If new information is obtained about facts and circumstances about expected cash flows that existed as of the acquisition date, management will adjust fair values in accordance with accounting for business combinations. The acquired loans were divided into loans with evidence of credit quality deterioration which are accounted for under ASC 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality, (acquired impaired) and loans that do not meet these criteria, which are accounted for under ASC 310-20, Receivables - Nonrefundable Fees and Other Costs, (acquired performing). The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands): Contractually required principal and interest at acquisition $ 45,551 Contractual cash flows not expected to be collected (nonaccretable difference) 8,296 Expected cash flows at acquisition 37,255 Interest component of expected cash flows (accretable yield) 4,410 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 32,845 Direct costs related to the acquisition were expensed as incurred. During the six months ended June 30, 2019 , the Company incurred $11.3 million in merger and acquisition integration expenses related to the merger, including $9.1 million in data processing termination and conversion costs, $1.7 million in legal and professional fees, $0.4 million in salary related expense, and $0.1 million in other noninterest expenses. The majority of these expenses were related to integration and are deductible for tax purposes. The following table presents unaudited pro forma information as if the acquisition of HomeTown had occurred on January 1, 2018. These results combine the historical results of HomeTown in the Company's Consolidated Statements of Income and, while certain adjustments were made for the estimated impact of certain fair value adjustments and other acquisition-related activity, they are not indicative of what would have occurred had the acquisition taken place on January 1, 2018. In particular, no adjustments have been made to eliminate the amount of HomeTown's provision for credit losses that would not have been necessary had the acquired loans been recorded at fair value as of January 1, 2018. Pro forma adjustments below include the net impact of accretion for 2018 and the elimination of merger-related costs for 2019. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands, except per share data): Pro forma June 30, 2019 June 30, 2018 Total revenues (1) $ 45,768 $ 49,419 Net income 13,382 14,755 Earnings per share 1.20 1.33 (1) Includes net interest income and noninterest income. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and fair value of investments in debt securities at June 30, 2019 were as follows (dollars in thousands): June 30, 2019 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 136,066 $ 1,594 $ 647 $ 137,013 Mortgage-backed and CMOs 135,871 1,426 398 136,899 State and municipal 51,559 733 47 52,245 Corporate 8,016 153 — 8,169 Total securities available for sale $ 331,512 $ 3,906 $ 1,092 $ 334,326 The Company adopted ASU 2016-01 effective January 1, 2018 and had equity securities with a fair value of $125,000 at June 30, 2019 and recognized in income a $330,000 change in the fair value of equity securities during the first six months of 2019 . During the six months ended June 30, 2019 , the Company sold $317,000 in equity securities at fair value. The Company had equity securities with a fair value of $2,177,000 at June 30, 2018 and recognized in income a $402,000 change in the fair value of equity securities during the first six months 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 June 30, 2019 and December 31, 2018 was as follows (dollars in thousands): June 30, 2019 December 31, 2018 FRB stock $ 5,045 $ 3,621 FHLB stock 2,751 1,626 Total restricted stock $ 7,796 $ 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 June 30, 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 June 30, 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 $ 86,417 $ 647 $ 2,038 $ 28 $ 84,379 $ 619 Mortgage-backed and CMOs 59,842 398 848 2 58,994 396 State and municipal 10,679 47 — — 10,679 47 Corporate — — — — — — Total $ 156,938 $ 1,092 $ 2,886 $ 30 $ 154,052 $ 1,062 Federal agencies and GSEs: The unrealized losses on the Company's investment in 30 government sponsored entities ("GSE") securities were caused by interest rate increases. Seventeen 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 June 30, 2019 . Mortgage-backed securities: The unrealized losses on the Company's investment in 41 GSE mortgage-backed securities were caused by interest rate increases. Thirty-six 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 June 30, 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 June 30, 2019 . State and municipal securities: The unrealized losses on 13 state and municipal securities were caused by interest rate increases. Thirteen 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 June 30, 2019 . Corporate securities: There were no corporate bonds in an unrealized loss position at June 30, 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 June 30, 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 June 30, 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 and six months ended June 30, 2019 and 2018 (dollars in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Realized gains (losses): Gross realized gains $ 190 $ 194 Gross realized losses (54 ) (54 ) Net realized gains $ 136 $ 140 Proceeds from sales of securities $ 29,878 $ 29,878 Three Months Ended June 30, 2018 Six Months Ended June 30, 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 | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans | Loans Loans, excluding loans held for sale, at June 30, 2019 and December 31, 2018 , were comprised of the following (dollars in thousands): June 30, 2019 December 31, 2018 Commercial $ 340,427 $ 285,972 Commercial real estate: Construction and land development 152,876 97,240 Commercial real estate 880,146 655,800 Residential real estate: Residential 328,400 209,438 Home equity 121,905 103,933 Consumer 12,487 5,093 Total loans $ 1,836,241 $ 1,357,476 Acquired Loans The outstanding principal balance and the carrying amount of these loans, including loans accounted for under ASC 310-30, included in the consolidated balance sheets at June 30, 2019 and December 31, 2018 are as follows (dollars in thousands): June 30, 2019 December 31, 2018 Outstanding principal balance $ 482,640 $ 63,619 Carrying amount 464,419 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): June 30, 2019 December 31, 2018 Outstanding principal balance $ 62,006 $ 24,500 Carrying amount 51,297 20,611 The following table presents changes in the accretable yield on acquired impaired loans, for which the Company applies ASC 310-30, for the six months ended June 30, 2019 and the year ended December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Balance at January 1 $ 4,633 $ 4,890 Additions from merger with HomeTown 4,410 — Accretion (1,527 ) (2,362 ) Reclassification from nonaccretable difference 222 956 Other changes, net* 283 1,149 $ 8,021 $ 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 June 30, 2019 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 313 $ 1,168 $ 4 $ 49 $ 1,534 $ 338,893 $ 340,427 Commercial real estate: Construction and land development 211 130 53 23 417 152,459 152,876 Commercial real estate 1,951 — 465 116 2,532 877,614 880,146 Residential: Residential 743 841 408 706 2,698 325,702 328,400 Home equity 101 220 — 75 396 121,509 121,905 Consumer 24 — — — 24 12,463 12,487 Total $ 3,343 $ 2,359 $ 930 $ 969 $ 7,601 $ 1,828,640 $ 1,836,241 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 June 30, 2019 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 4 $ 4 $ — $ 11 $ — Commercial real estate: Construction and land development — — — — — Commercial real estate 348 346 — 362 14 Residential: Residential 641 640 — 640 17 Home equity 45 45 — 47 3 Consumer — — — — — $ 1,038 $ 1,035 $ — $ 1,060 $ 34 With a related allowance recorded: Commercial $ 53 $ 49 $ 49 $ 55 $ 2 Commercial real estate: Construction and land development — — — — — Commercial real estate — — — — — Residential Residential 263 263 28 205 9 Home equity — — — — — Consumer — — — — — $ 316 $ 312 $ 77 $ 260 $ 11 Total: Commercial $ 57 $ 53 $ 49 $ 66 $ 2 Commercial real estate: Construction and land development — — — — — Commercial real estate 348 346 — 362 14 Residential: Residential 904 903 28 845 26 Home equity 45 45 — 47 3 Consumer — — — — — $ 1,354 $ 1,347 $ 77 $ 1,320 $ 45 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. The following tables show the detail of loans modified as troubled debt restructurings ("TDRs") during the three and six months ended June 30, 2019 included in the impaired loan balances (dollars in thousands). Loans Modified as a TDR for the Three Months Ended June 30, 2019 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate 1 207 207 Consumer — — — Total 1 $ 207 $ 207 Loans Modified as a TDR for the Six Months Ended June 30, 2019 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate 1 207 207 Consumer — — — Total 1 $ 207 $ 207 The TDR modification in 2019 was extension of the loan maturity. The following tables show the detail of loans modified as TDRs during the three and six months ended June 30, 2018 included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Three Months Ended June 30, 2018 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate — — — Consumer — — — Total — $ — $ — Loans Modified as a TDR for the Six Months Ended June 30, 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 The TDR modification in 2018 was extension of the loan maturity. During the three and six months ended June 30, 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 $203,000 and $112,000 in residential real estate loans in the process of foreclosure at June 30, 2019 and December 31, 2018 , respectively. The Company had $ 351,000 and $ 719,000 in residential OREO at June 30, 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 June 30, 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 $ 327,393 $ 146,539 $ 835,625 $ 315,392 $ 121,511 Special Mention 11,295 3,993 32,446 7,782 — Substandard 1,739 2,344 12,075 5,226 394 Doubtful — — — — — Total $ 340,427 $ 152,876 $ 880,146 $ 328,400 $ 121,905 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 12,487 Nonperforming — Total $ 12,487 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. |
Allowance for Loan Losses and R
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | 6 Months Ended |
Jun. 30, 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): Six Months Ended Year Ended December 31, 2018 Six Months Ended Allowance for Loan Losses Balance, beginning of period $ 12,805 $ 13,603 $ 13,603 Provision for (recovery of) loan losses 6 (103 ) (74 ) Charge-offs (123 ) (1,020 ) (174 ) Recoveries 98 325 153 Balance, end of period $ 12,786 $ 12,805 $ 13,508 Reserve for Unfunded Lending Commitments Balance, beginning of period $ 217 $ 206 $ 206 Provision for unfunded commitments 99 11 13 Charge-offs — — — Balance, end of period $ 316 $ 217 $ 219 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 six months ended June 30, 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 178 (119 ) (99 ) 46 6 Charge-offs (11 ) (6 ) (20 ) (86 ) (123 ) Recoveries 11 7 26 54 98 Balance at June 30, 2019: $ 2,715 $ 7,128 $ 2,884 $ 59 $ 12,786 Balance at June 30, 2019: Allowance for Loan Losses Individually evaluated for impairment $ 49 $ — $ 28 $ — $ 77 Collectively evaluated for impairment 2,666 7,097 2,699 59 12,521 Acquired impaired loans — 31 157 — 188 Total $ 2,715 $ 7,128 $ 2,884 $ 59 $ 12,786 Loans Individually evaluated for impairment $ 57 $ 348 $ 949 $ — $ 1,354 Collectively evaluated for impairment 338,629 999,082 433,407 12,472 1,783,590 Acquired impaired loans 1,741 33,592 15,949 15 51,297 Total $ 340,427 $ 1,033,022 $ 450,305 $ 12,487 $ 1,836,241 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 | 6 Months Ended |
Jun. 30, 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, 2019. 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 . Core deposit intangibles resulting from the acquisition of HomeTown in April 2019 were $8,200,000 and are being amortized on an accelerated basis over 120 months . The changes in the carrying amount of goodwill and intangibles for the six months ended June 30, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions 40,761 8,200 Amortization — (513 ) Impairment — — Balance at June 30, 2019 $ 84,633 $ 8,613 |
Leases
Leases | 6 Months Ended |
Jun. 30, 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. In connection with the HomeTown merger, the Company added $1.8 million to the right-of-use asset and lease liability. 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 and six months ended June 30, 2019 (dollars in thousands): June 30, 2019 Lease liabilities $ 5,771 Right-of-use assets $ 5,758 Weighted average remaining lease term 8.50 years Weighted average discount rate 3.20 % Three Months Ended June 30, 2019 Lease cost Operating lease cost $ 283 Short-term lease cost 1 Total lease cost 284 Cash paid for amounts included in the measurement of lease liabilities $ 274 Six Months Ended June 30, 2019 Lease cost Operating lease cost $ 494 Short-term lease cost 2 Total lease cost 496 Cash paid for amounts included in the measurement of lease liabilities $ 483 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): Lease payments due As of June 30, 2019 Six months ending December 31, 2019 $ 530 Twelve months ending December 31, 2020 950 Twelve months ending December 31, 2021 934 Twelve months ending December 31, 2022 912 Twelve months ending December 31, 2023 809 Twelve months ending December 31, 2024 491 Thereafter 2,022 Total undiscounted cash flows $ 6,648 Discount (877 ) Lease liabilities $ 5,771 |
Short-term Borrowings
Short-term Borrowings | 6 Months Ended |
Jun. 30, 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 amount of $15,000,000 each, and with one correspondent bank in the aggregate amount of $17,500,000 , and 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 June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Customer repurchase agreements $ 37,222 $ 35,243 FHLB borrowings 13,528 — Total short-term borrowings $ 50,750 $ 35,243 |
Long-term Borrowings
Long-term Borrowings | 6 Months Ended |
Jun. 30, 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 June 30, 2019 , $602,513,000 in eligible collateral was pledged under the blanket floating lien agreement which covers both short-term and long-term borrowings. There were no long-term borrowings with FHLB as of June 30, 2019 or December 31, 2018 . In the regular course of conducting its business, the Company takes deposits from political subdivisions of the states of Virginia and North Carolina. At June 30, 2019 , the Bank's public deposits totaled $244,960,000 . 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 June 30, 2019 , the Company had $190,250,000 in letters of credit with the FHLB outstanding, of which $190,000,000 , as well as $92,384,000 in agency, state, and municipal securities, was pledged to provide collateral for such deposits. Subordinated Debt On April 1, 2019, in connection with the HomeTown merger, the Company assumed $7,500,000 in aggregate principal amount of fixed-to-floating rate subordinated notes issued to various institutional accredited investors. The notes have a maturity date of December 30, 2025 and have an annual fixed interest rate of 6.75% until December 30, 2020. Thereafter, the notes will have a floating interest rate based on LIBOR. Interest will be paid semi-annually, in arrears, on June 30 and December 30 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on March 30, June 30, September 30 and December 30 throughout the floating interest rate period or earlier redemption date. The indebtedness evidenced by the notes, including principal and interest, is unsecured and subordinate and junior in right of the Company's payments to general and secured creditors and depositors of the bank. The notes are redeemable, without penalty, on or after December 30, 2020 and, in certain limited circumstances, prior to that date. The notes limit the Company from declaring or paying any dividend, or making any distribution on capital stock or other equity securities of any kind of the Company if the Company is not "well capitalized" for regulatory purposes, immediately prior to the declaration of such dividend or distribution, except for dividends payable solely in shares of common stock of the Company. The carrying value of the subordinated debt includes a fair value adjustment of $26,000 at June 30, 2019 . The original fair value adjustment of $30,000 was recorded as a result of the acquisition of HomeTown on April 1, 2019, and is being amortized into interest expense through December 30, 2020. |
Subordinated Debt
Subordinated Debt | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Subordinated Debt | 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 June 30, 2019 , $602,513,000 in eligible collateral was pledged under the blanket floating lien agreement which covers both short-term and long-term borrowings. There were no long-term borrowings with FHLB as of June 30, 2019 or December 31, 2018 . In the regular course of conducting its business, the Company takes deposits from political subdivisions of the states of Virginia and North Carolina. At June 30, 2019 , the Bank's public deposits totaled $244,960,000 . 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 June 30, 2019 , the Company had $190,250,000 in letters of credit with the FHLB outstanding, of which $190,000,000 , as well as $92,384,000 in agency, state, and municipal securities, was pledged to provide collateral for such deposits. Subordinated Debt On April 1, 2019, in connection with the HomeTown merger, the Company assumed $7,500,000 in aggregate principal amount of fixed-to-floating rate subordinated notes issued to various institutional accredited investors. The notes have a maturity date of December 30, 2025 and have an annual fixed interest rate of 6.75% until December 30, 2020. Thereafter, the notes will have a floating interest rate based on LIBOR. Interest will be paid semi-annually, in arrears, on June 30 and December 30 of each year during the time that the notes remain outstanding through the fixed interest rate period or earlier redemption date. Interest will be paid quarterly, in arrears, on March 30, June 30, September 30 and December 30 throughout the floating interest rate period or earlier redemption date. The indebtedness evidenced by the notes, including principal and interest, is unsecured and subordinate and junior in right of the Company's payments to general and secured creditors and depositors of the bank. The notes are redeemable, without penalty, on or after December 30, 2020 and, in certain limited circumstances, prior to that date. The notes limit the Company from declaring or paying any dividend, or making any distribution on capital stock or other equity securities of any kind of the Company if the Company is not "well capitalized" for regulatory purposes, immediately prior to the declaration of such dividend or distribution, except for dividends payable solely in shares of common stock of the Company. The carrying value of the subordinated debt includes a fair value adjustment of $26,000 at June 30, 2019 . The original fair value adjustment of $30,000 was recorded as a result of the acquisition of HomeTown on April 1, 2019, and is being amortized into interest expense through December 30, 2020. |
Junior Subordinated Debt
Junior Subordinated Debt | 6 Months Ended |
Jun. 30, 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 June 30, 2019 and December 31, 2018 (dollars in thousands): Issuing Entity Date Issued Interest Rate Maturity Date Principal Amount June 30, 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 4,405 4,377 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,954 2,931 $ 27,978 $ 27,927 The principal amounts reflected above for the MidCarolina Trusts are net of fair value adjustments of $1,405,000 and $1,456,000 at June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 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 $ — $ 2,615 $ 2,650 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 | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2019 is as follows: Option Weighted Weighted Aggregate Outstanding at December 31, 2018 13,200 $ 21.97 Issued in HomeTown acquisition 40,753 16.63 Granted — — Exercised (30,530 ) 18.94 Forfeited (1,660 ) 16.63 Expired — — Outstanding at June 30, 2019 21,763 $ 16.63 5.07 years $ 481 Exercisable at June 30, 2019 17,264 $ 16.63 4.96 years $ 382 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. Replacement stock option awards representing 40,753 shares of the Company's common stock were issued in conjunction with the HomeTown acquisition. As of June 30, 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 six months ended June 30, 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 Issued in HomeTown acquisition 7,137 27.28 Granted 18,926 32.33 Vested (22,110 ) 23.46 Forfeited (1,200 ) 34.04 Nonvested at June 30, 2019 55,551 $ 34.58 As of June 30, 2019 and December 31, 2018 , there was $1,033,000 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 1.69 years . The share based compensation expense for nonvested restricted stock was $585,000 and $292,000 during the first six months of 2019 and 2018 , respectively . The expense for the first six months of 2019 included $257,000 of accelerated compensation expense as a result of the HomeTown merger. 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 8,793 and 7,861 shares and recognized share based compensation expense of $318,000 and $300,000 during the first six months of 2019 and 2018 , respectively. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2019 and 2018 . Three Months Ended June 30, 2019 2018 Shares Per Shares Per Basic earnings per share 11,126,800 $ (0.11 ) 8,692,107 $ 0.69 Effect of dilutive securities - stock options — — 12,619 — Diluted earnings per share 11,126,800 $ (0.11 ) 8,704,726 $ 0.69 Six Months Ended June 30, 2019 2018 Shares Per Shares Per Basic earnings per share 9,942,566 $ 0.48 8,680,739 $ 1.36 Effect of dilutive securities - stock options 9,549 — 15,121 — Diluted earnings per share 9,952,115 $ 0.48 8,695,860 $ 1.36 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 and six month periods ended June 30, 2019 and 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans The following information for the six months ended June 30, 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 Six Months Ended June 30, 2019 2018 Service cost $ — $ — Interest cost 58 51 Expected return on plan assets (68 ) (64 ) Recognized loss due to settlement 19 25 Recognized net actuarial loss 65 68 Net periodic cost $ 74 $ 80 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 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 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 June 30, 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 June 30, 2019 Using Balance at June 30, 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 $ 137,013 $ — $ 137,013 $ — Mortgage-backed and CMOs 136,899 — 136,899 — State and municipal 52,245 — 52,245 — Corporate 8,169 — 8,169 — Total securities available for sale $ 334,326 $ — $ 334,326 $ — Equity securities $ 125 $ — $ 125 $ — Liabilities: Derivative - cash flow hedges $ 2,615 $ — $ 2,615 $ — 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 six month period ended June 30, 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 TDR. 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 June 30, 2019 Using Balance at June 30, 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 $ 3,165 $ — $ 3,165 $ — Impaired loans, net of valuation allowance 239 — — 239 Other real estate owned, net 1,433 — — 1,433 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 June 30, 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% 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 June 30, 2019 are as follows (dollars in thousands): Fair Value Measurements at June 30, 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 54,914 54,914 — — 54,914 Equity securities 125 — 125 — 125 Securities available for sale 334,326 — 334,326 — 334,326 Restricted stock 7,796 — 7,796 — 7,796 Loans held for sale 3,165 — 3,165 — 3,165 Loans, net of allowance 1,823,455 — — 1,811,890 1,811,890 Bank owned life insurance 27,451 — 27,451 — 27,451 Accrued interest receivable 7,375 — 7,375 — 7,375 Financial Liabilities: Deposits 1,999,097 — 2,000,234 — 2,000,234 Repurchase agreements 37,222 — 37,222 — 37,222 Other short-term borrowings 13,528 — 13,528 — 13,528 Subordinated debt 7,526 — 7,568 — 7,568 Junior subordinated debt 27,978 — — 24,528 24,528 Accrued interest payable 1,462 — 1,462 — 1,462 Derivative - cash flow hedges 2,615 — 2,615 — 2,615 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 | 6 Months Ended |
Jun. 30, 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 and corporate items. Segment information as of and for the three and six months ended June 30, 2019 and 2018 (unaudited), is shown in the following tables (dollars in thousands): Three Months Ended June 30, 2019 Community Trust and Other Intersegment Total Interest income $ 25,102 $ — $ 109 $ — $ 25,211 Interest expense 3,712 — 510 — 4,222 Noninterest income 2,543 1,119 20 — 3,682 Income (loss) before income taxes (574 ) 559 (1,620 ) — (1,635 ) Net income (loss) (327 ) 455 (1,358 ) — (1,230 ) Depreciation and amortization 1,009 2 — — 1,011 Total assets 2,407,232 — 351,130 (340,280 ) 2,418,082 Goodwill 84,633 — — — 84,633 Capital expenditures 906 — — — 906 Three Months Ended June 30, 2018 Community Trust and Other Intersegment Total Interest income $ 16,900 $ — $ 92 $ — $ 16,992 Interest expense 1,874 — 330 — 2,204 Noninterest income 2,111 1,155 297 — 3,563 Income (loss) before income taxes 7,071 567 (259 ) — 7,379 Net income (loss) 5,725 459 (204 ) — 5,980 Depreciation and amortization 541 3 — — 544 Total assets 1,814,730 — 241,617 (231,816 ) 1,824,531 Goodwill 43,872 — — — 43,872 Capital expenditures 587 — — — 587 Six Months Ended June 30, 2019 Community Trust and Other Intersegment Total Interest income $ 43,101 $ — $ 206 $ — $ 43,307 Interest expense 6,356 — 894 — 7,250 Noninterest income 4,603 2,180 350 — 7,133 Income (loss) before income taxes 6,946 1,039 (2,046 ) — 5,939 Net income (loss) 5,670 835 (1,732 ) — 4,773 Depreciation and amortization 1,467 4 — — 1,471 Total assets 2,407,232 — 351,130 (340,280 ) 2,418,082 Goodwill 84,633 — — — 84,633 Capital expenditures 1,292 7 — — 1,299 Six Months Ended June 30, 2018 Community Trust and Other Intersegment Total Interest income $ 33,480 $ — $ 180 $ — $ 33,660 Interest expense 3,709 — 620 — 4,329 Noninterest income 4,174 2,306 416 — 6,896 Income (loss) before income taxes 14,097 1,020 (520 ) — 14,597 Net income (loss) 11,378 824 (410 ) — 11,792 Depreciation and amortization 1,081 6 — — 1,087 Total assets 1,814,730 — 241,617 (231,816 ) 1,824,531 Goodwill 43,872 — — — 43,872 Capital expenditures 932 — — — 932 |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information Supplemental cash flow information as of and for the six months ended June 30, 2019 and 2018 is shown in the following table (dollars in thousands): Six Months Ended 2019 2018 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 34,460 $ 24,042 Interest-bearing deposits in other banks 20,454 9,300 Cash and Cash Equivalents $ 54,914 $ 33,342 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 6,583 $ 4,332 Income taxes 1,532 2,548 Noncash investing and financing activities: Transfer of loans to other real estate owned 181 532 Transfer from premises and equipment to other assets 445 — 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 7,935 (5,188 ) Unrealized losses on cash flow hedges (1,811 ) (237 ) Non-cash transactions related to acquisitions: Assets acquired: Investment securities 34,876 — Restricted stock 2,588 — Loans 444,324 — Premises and equipment 12,554 — Deferred income taxes 2,329 — Core deposit intangible 8,200 — Other real estate owned 1,442 — Bank owned life insurance 8,246 — Other assets 14,244 — Liabilities assumed: Deposits 483,626 — Short-term FHLB advances 14,883 — Long-term FHLB advances 778 — Subordinated debt 7,530 — Other liabilities 5,780 — Consideration: Issuance of common stock 82,470 — Fair value of replacement stock options/restricted stock 753 — |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 March 31, 2018 $ (4,325 ) $ — $ (2,280 ) $ (6,605 ) Net unrealized losses on securities available for sale, net of tax, $(325) (1,121 ) — — (1,121 ) Unrealized losses on cash flow hedges, net of tax, $(53) — (184 ) — (184 ) Balance at June 30, 2018 $ (5,446 ) (184 ) $ (2,280 ) $ (7,910 ) Balance at March 31, 2019 $ (896 ) $ (1,187 ) $ (1,238 ) $ (3,321 ) Net unrealized gains on securities available for sale, net of tax, $920 3,186 — — 3,186 Reclassification adjustment for realized gains on securities, net of tax, $(31) (105 ) — — (105 ) Unrealized losses on cash flow hedges, net of tax, $(243) — (843 ) — (843 ) Balance at June 30, 2019 $ 2,185 $ (2,030 ) $ (1,238 ) $ (1,083 ) For the Six 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 gains on securities available for sale, net of tax, $(1,186) (3,994 ) — — (3,994 ) Reclassification adjustment for realized gains on securities, net of tax, $(2) (6 ) — — (6 ) Reclassification for ASU 2016-01 adoption (650 ) — — (650 ) Unrealized losses on cash flow hedges, net of tax, $(53) — (184 ) — (184 ) Balance at June 30, 2018 $ (5,446 ) $ (184 ) $ (2,280 ) $ (7,910 ) Balance at December 31, 2018 $ (3,973 ) $ (624 ) $ (1,238 ) $ (5,835 ) Net unrealized losses on securities available for sale, net of tax, $1,809 6,266 — — 6,266 Reclassification adjustment for gains on sales of securities, net of tax, $(32) (108 ) — — (108 ) Unrealized losses on cash flow hedges, net of tax, $(405) — (1,406 ) — (1,406 ) Balance at June 30, 2019 $ 2,185 $ (2,030 ) $ (1,238 ) $ (1,083 ) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three and Six Months ended June 30, 2019 and 2018 (dollars in thousands) For the Three Months Ended June 30, 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 $ 136 Securities gains, net (31 ) Income taxes Total reclassifications $ 105 Net of tax For the Three Months Ended June 30, 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 $ — Securities gains, net — Income taxes Total reclassifications $ — Net of tax For the Six Months Ended June 30, 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 $ 140 Securities gains, net (32 ) Income taxes $ 108 Net of tax For the Six Months Ended June 30, 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. |
Accounting Policies (Policies)
Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 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, 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 11. 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. Based on FASB’s July 17, 2019 meeting, an exposure draft is expected that, once finalized, could change implementation dates for many companies . 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. In April 2019, the FASB issued ASU 2019-04, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments." The amendments in this ASU clarify and improve areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement including improvements resulting from various Transition Resource Group Meetings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-04 will have on its consolidated financial statements. In May 2019, the FASB issued ASU 2019-05, "Financial Instruments-Credit Losses (Topic 326): Targeted Transition Relief." The amendments in this ASU provide entities that have certain instruments within the scope of Subtopic 326-20 with an option to irrevocably elect the fair value option in Subtopic 825-10, applied on an instrument-by-instrument basis for eligible instruments, upon the adoption of Topic 326. The fair value option election does not apply to held-to-maturity debt securities. An entity that elects the fair value option should subsequently measure those instruments at fair value with changes in fair value flowing through earnings. The amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. The amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to the opening balance of retained earnings balance in the balance sheet. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-05 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. |
Acquisitions (Tables)
Acquisitions (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Business Combinations [Abstract] | |
Schedule of business acquisitions, by acquisition | The following table provides a preliminary assessment of the consideration transferred, assets acquired, and liabilities assumed as of the date of the acquisition (dollars in thousands): Consideration Paid: Common shares issued (2,361,686) $ 82,470 Issuance of replacement stock options/restricted stock 753 Cash paid in lieu of fractional shares 27 Value of consideration 83,250 Assets acquired: Cash and cash equivalents 26,283 Investment securities 34,876 Restricted stock 2,588 Loans 444,324 Premises and equipment 12,554 Deferred income taxes 2,329 Core deposit intangible 8,200 Other real estate owned 1,442 Banked owned life insurance 8,246 Other assets 14,244 Total assets 555,086 Liabilities assumed: Deposits 483,626 Short-term FHLB advances 14,883 Long-term FHLB advances 778 Subordinated debt 7,530 Other liabilities 5,780 Total liabilities 512,597 Net assets acquired 42,489 Goodwill resulting from merger with HomeTown $ 40,761 |
Schedule of recognized identified assets acquired and liabilities assumed | The following table presents the acquired impaired loans receivable at the acquisition date (dollars in thousands): Contractually required principal and interest at acquisition $ 45,551 Contractual cash flows not expected to be collected (nonaccretable difference) 8,296 Expected cash flows at acquisition 37,255 Interest component of expected cash flows (accretable yield) 4,410 Fair value of acquired loans accounted for under FASB ASC 310-30 $ 32,845 |
Business acquisition, pro forma information | The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts below (dollars in thousands, except per share data): Pro forma June 30, 2019 June 30, 2018 Total revenues (1) $ 45,768 $ 49,419 Net income 13,382 14,755 Earnings per share 1.20 1.33 (1) Includes net interest income and noninterest income. |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 were as follows (dollars in thousands): June 30, 2019 Amortized Unrealized Unrealized Securities available for sale: Federal agencies and GSEs $ 136,066 $ 1,594 $ 647 $ 137,013 Mortgage-backed and CMOs 135,871 1,426 398 136,899 State and municipal 51,559 733 47 52,245 Corporate 8,016 153 — 8,169 Total securities available for sale $ 331,512 $ 3,906 $ 1,092 $ 334,326 The Company adopted ASU 2016-01 effective January 1, 2018 and had equity securities with a fair value of $125,000 at June 30, 2019 and recognized in income a $330,000 change in the fair value of equity securities during the first six months of 2019 . During the six months ended June 30, 2019 , the Company sold $317,000 in equity securities at fair value. The Company had equity securities with a fair value of $2,177,000 at June 30, 2018 and recognized in income a $402,000 change in the fair value of equity securities during the first six months 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 June 30, 2019 and December 31, 2018 was as follows (dollars in thousands): June 30, 2019 December 31, 2018 FRB stock $ 5,045 $ 3,621 FHLB stock 2,751 1,626 Total restricted stock $ 7,796 $ 5,247 |
Fair value of gross unrealized losses by investment | Available for sale securities that have been in a continuous unrealized loss position, at June 30, 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 $ 86,417 $ 647 $ 2,038 $ 28 $ 84,379 $ 619 Mortgage-backed and CMOs 59,842 398 848 2 58,994 396 State and municipal 10,679 47 — — 10,679 47 Corporate — — — — — — Total $ 156,938 $ 1,092 $ 2,886 $ 30 $ 154,052 $ 1,062 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 |
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 and six months ended June 30, 2019 and 2018 (dollars in thousands): Three Months Ended June 30, 2019 Six Months Ended June 30, 2019 Realized gains (losses): Gross realized gains $ 190 $ 194 Gross realized losses (54 ) (54 ) Net realized gains $ 136 $ 140 Proceeds from sales of securities $ 29,878 $ 29,878 Three Months Ended June 30, 2018 Six Months Ended June 30, 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) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of loans, excluding loans held for sale | Loans, excluding loans held for sale, at June 30, 2019 and December 31, 2018 , were comprised of the following (dollars in thousands): June 30, 2019 December 31, 2018 Commercial $ 340,427 $ 285,972 Commercial real estate: Construction and land development 152,876 97,240 Commercial real estate 880,146 655,800 Residential real estate: Residential 328,400 209,438 Home equity 121,905 103,933 Consumer 12,487 5,093 Total loans $ 1,836,241 $ 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 ASC 310-30, included in the consolidated balance sheets at June 30, 2019 and December 31, 2018 are as follows (dollars in thousands): June 30, 2019 December 31, 2018 Outstanding principal balance $ 482,640 $ 63,619 Carrying amount 464,419 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): June 30, 2019 December 31, 2018 Outstanding principal balance $ 62,006 $ 24,500 Carrying amount 51,297 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 ASC 310-30, for the six months ended June 30, 2019 and the year ended December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Balance at January 1 $ 4,633 $ 4,890 Additions from merger with HomeTown 4,410 — Accretion (1,527 ) (2,362 ) Reclassification from nonaccretable difference 222 956 Other changes, net* 283 1,149 $ 8,021 $ 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 June 30, 2019 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 313 $ 1,168 $ 4 $ 49 $ 1,534 $ 338,893 $ 340,427 Commercial real estate: Construction and land development 211 130 53 23 417 152,459 152,876 Commercial real estate 1,951 — 465 116 2,532 877,614 880,146 Residential: Residential 743 841 408 706 2,698 325,702 328,400 Home equity 101 220 — 75 396 121,509 121,905 Consumer 24 — — — 24 12,463 12,487 Total $ 3,343 $ 2,359 $ 930 $ 969 $ 7,601 $ 1,828,640 $ 1,836,241 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 June 30, 2019 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 4 $ 4 $ — $ 11 $ — Commercial real estate: Construction and land development — — — — — Commercial real estate 348 346 — 362 14 Residential: Residential 641 640 — 640 17 Home equity 45 45 — 47 3 Consumer — — — — — $ 1,038 $ 1,035 $ — $ 1,060 $ 34 With a related allowance recorded: Commercial $ 53 $ 49 $ 49 $ 55 $ 2 Commercial real estate: Construction and land development — — — — — Commercial real estate — — — — — Residential Residential 263 263 28 205 9 Home equity — — — — — Consumer — — — — — $ 316 $ 312 $ 77 $ 260 $ 11 Total: Commercial $ 57 $ 53 $ 49 $ 66 $ 2 Commercial real estate: Construction and land development — — — — — Commercial real estate 348 346 — 362 14 Residential: Residential 904 903 28 845 26 Home equity 45 45 — 47 3 Consumer — — — — — $ 1,354 $ 1,347 $ 77 $ 1,320 $ 45 |
Schedule of detail of loans modified as troubled debt restructurings | The following tables show the detail of loans modified as troubled debt restructurings ("TDRs") during the three and six months ended June 30, 2019 included in the impaired loan balances (dollars in thousands). Loans Modified as a TDR for the Three Months Ended June 30, 2019 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate 1 207 207 Consumer — — — Total 1 $ 207 $ 207 Loans Modified as a TDR for the Six Months Ended June 30, 2019 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate 1 207 207 Consumer — — — Total 1 $ 207 $ 207 The TDR modification in 2019 was extension of the loan maturity. The following tables show the detail of loans modified as TDRs during the three and six months ended June 30, 2018 included in the impaired loan balances (dollars in thousands): Loans Modified as a TDR for the Three Months Ended June 30, 2018 Loan Type Number of Contracts Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Construction and land development — — — Home Equity — — — Residential real estate — — — Consumer — — — Total — $ — $ — Loans Modified as a TDR for the Six Months Ended June 30, 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 The TDR modification in 2018 was extension of the loan maturity. |
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 June 30, 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 $ 327,393 $ 146,539 $ 835,625 $ 315,392 $ 121,511 Special Mention 11,295 3,993 32,446 7,782 — Substandard 1,739 2,344 12,075 5,226 394 Doubtful — — — — — Total $ 340,427 $ 152,876 $ 880,146 $ 328,400 $ 121,905 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 12,487 Nonperforming — Total $ 12,487 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) | 6 Months Ended |
Jun. 30, 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): Six Months Ended Year Ended December 31, 2018 Six Months Ended Allowance for Loan Losses Balance, beginning of period $ 12,805 $ 13,603 $ 13,603 Provision for (recovery of) loan losses 6 (103 ) (74 ) Charge-offs (123 ) (1,020 ) (174 ) Recoveries 98 325 153 Balance, end of period $ 12,786 $ 12,805 $ 13,508 Reserve for Unfunded Lending Commitments Balance, beginning of period $ 217 $ 206 $ 206 Provision for unfunded commitments 99 11 13 Charge-offs — — — Balance, end of period $ 316 $ 217 $ 219 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 six months ended June 30, 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 178 (119 ) (99 ) 46 6 Charge-offs (11 ) (6 ) (20 ) (86 ) (123 ) Recoveries 11 7 26 54 98 Balance at June 30, 2019: $ 2,715 $ 7,128 $ 2,884 $ 59 $ 12,786 Balance at June 30, 2019: Allowance for Loan Losses Individually evaluated for impairment $ 49 $ — $ 28 $ — $ 77 Collectively evaluated for impairment 2,666 7,097 2,699 59 12,521 Acquired impaired loans — 31 157 — 188 Total $ 2,715 $ 7,128 $ 2,884 $ 59 $ 12,786 Loans Individually evaluated for impairment $ 57 $ 348 $ 949 $ — $ 1,354 Collectively evaluated for impairment 338,629 999,082 433,407 12,472 1,783,590 Acquired impaired loans 1,741 33,592 15,949 15 51,297 Total $ 340,427 $ 1,033,022 $ 450,305 $ 12,487 $ 1,836,241 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) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions 40,761 8,200 Amortization — (513 ) Impairment — — Balance at June 30, 2019 $ 84,633 $ 8,613 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Reconciliation of Undiscounted Cash Flows | The following tables present information about the Company's leases, as of and for the three and six months ended June 30, 2019 (dollars in thousands): June 30, 2019 Lease liabilities $ 5,771 Right-of-use assets $ 5,758 Weighted average remaining lease term 8.50 years Weighted average discount rate 3.20 % Three Months Ended June 30, 2019 Lease cost Operating lease cost $ 283 Short-term lease cost 1 Total lease cost 284 Cash paid for amounts included in the measurement of lease liabilities $ 274 Six Months Ended June 30, 2019 Lease cost Operating lease cost $ 494 Short-term lease cost 2 Total lease cost 496 Cash paid for amounts included in the measurement of lease liabilities $ 483 |
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 (dollars in thousands): Lease payments due As of June 30, 2019 Six months ending December 31, 2019 $ 530 Twelve months ending December 31, 2020 950 Twelve months ending December 31, 2021 934 Twelve months ending December 31, 2022 912 Twelve months ending December 31, 2023 809 Twelve months ending December 31, 2024 491 Thereafter 2,022 Total undiscounted cash flows $ 6,648 Discount (877 ) Lease liabilities $ 5,771 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | Short-term borrowings consisted of the following at June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 2019 December 31, 2018 Customer repurchase agreements $ 37,222 $ 35,243 FHLB borrowings 13,528 — Total short-term borrowings $ 50,750 $ 35,243 |
Junior Subordinated Debt (Table
Junior Subordinated Debt (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 and December 31, 2018 (dollars in thousands): Issuing Entity Date Issued Interest Rate Maturity Date Principal Amount June 30, 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 4,405 4,377 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,954 2,931 $ 27,978 $ 27,927 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 and December 31, 2018 (dollars in thousands): June 30, 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 $ — $ 2,615 $ 2,650 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) | 6 Months Ended |
Jun. 30, 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 six months ended June 30, 2019 is as follows: Option Weighted Weighted Aggregate Outstanding at December 31, 2018 13,200 $ 21.97 Issued in HomeTown acquisition 40,753 16.63 Granted — — Exercised (30,530 ) 18.94 Forfeited (1,660 ) 16.63 Expired — — Outstanding at June 30, 2019 21,763 $ 16.63 5.07 years $ 481 Exercisable at June 30, 2019 17,264 $ 16.63 4.96 years $ 382 |
Schedule of nonvested restricted stock activity | Nonvested restricted stock activity for the six months ended June 30, 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 Issued in HomeTown acquisition 7,137 27.28 Granted 18,926 32.33 Vested (22,110 ) 23.46 Forfeited (1,200 ) 34.04 Nonvested at June 30, 2019 55,551 $ 34.58 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 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 and six month periods ended June 30, 2019 and 2018 . Three Months Ended June 30, 2019 2018 Shares Per Shares Per Basic earnings per share 11,126,800 $ (0.11 ) 8,692,107 $ 0.69 Effect of dilutive securities - stock options — — 12,619 — Diluted earnings per share 11,126,800 $ (0.11 ) 8,704,726 $ 0.69 Six Months Ended June 30, 2019 2018 Shares Per Shares Per Basic earnings per share 9,942,566 $ 0.48 8,680,739 $ 1.36 Effect of dilutive securities - stock options 9,549 — 15,121 — Diluted earnings per share 9,952,115 $ 0.48 8,695,860 $ 1.36 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of components of net periodic benefit cost | The following information for the six months ended June 30, 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 Six Months Ended June 30, 2019 2018 Service cost $ — $ — Interest cost 58 51 Expected return on plan assets (68 ) (64 ) Recognized loss due to settlement 19 25 Recognized net actuarial loss 65 68 Net periodic cost $ 74 $ 80 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2019 Using Balance at June 30, 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 $ 137,013 $ — $ 137,013 $ — Mortgage-backed and CMOs 136,899 — 136,899 — State and municipal 52,245 — 52,245 — Corporate 8,169 — 8,169 — Total securities available for sale $ 334,326 $ — $ 334,326 $ — Equity securities $ 125 $ — $ 125 $ — Liabilities: Derivative - cash flow hedges $ 2,615 $ — $ 2,615 $ — 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 June 30, 2019 Using Balance at June 30, 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 $ 3,165 $ — $ 3,165 $ — Impaired loans, net of valuation allowance 239 — — 239 Other real estate owned, net 1,433 — — 1,433 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 June 30, 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 June 30, 2019 are as follows (dollars in thousands): Fair Value Measurements at June 30, 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 54,914 54,914 — — 54,914 Equity securities 125 — 125 — 125 Securities available for sale 334,326 — 334,326 — 334,326 Restricted stock 7,796 — 7,796 — 7,796 Loans held for sale 3,165 — 3,165 — 3,165 Loans, net of allowance 1,823,455 — — 1,811,890 1,811,890 Bank owned life insurance 27,451 — 27,451 — 27,451 Accrued interest receivable 7,375 — 7,375 — 7,375 Financial Liabilities: Deposits 1,999,097 — 2,000,234 — 2,000,234 Repurchase agreements 37,222 — 37,222 — 37,222 Other short-term borrowings 13,528 — 13,528 — 13,528 Subordinated debt 7,526 — 7,568 — 7,568 Junior subordinated debt 27,978 — — 24,528 24,528 Accrued interest payable 1,462 — 1,462 — 1,462 Derivative - cash flow hedges 2,615 — 2,615 — 2,615 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) | 6 Months Ended |
Jun. 30, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information as of and for the three and six months ended June 30, 2019 and 2018 (unaudited), is shown in the following tables (dollars in thousands): Three Months Ended June 30, 2019 Community Trust and Other Intersegment Total Interest income $ 25,102 $ — $ 109 $ — $ 25,211 Interest expense 3,712 — 510 — 4,222 Noninterest income 2,543 1,119 20 — 3,682 Income (loss) before income taxes (574 ) 559 (1,620 ) — (1,635 ) Net income (loss) (327 ) 455 (1,358 ) — (1,230 ) Depreciation and amortization 1,009 2 — — 1,011 Total assets 2,407,232 — 351,130 (340,280 ) 2,418,082 Goodwill 84,633 — — — 84,633 Capital expenditures 906 — — — 906 Three Months Ended June 30, 2018 Community Trust and Other Intersegment Total Interest income $ 16,900 $ — $ 92 $ — $ 16,992 Interest expense 1,874 — 330 — 2,204 Noninterest income 2,111 1,155 297 — 3,563 Income (loss) before income taxes 7,071 567 (259 ) — 7,379 Net income (loss) 5,725 459 (204 ) — 5,980 Depreciation and amortization 541 3 — — 544 Total assets 1,814,730 — 241,617 (231,816 ) 1,824,531 Goodwill 43,872 — — — 43,872 Capital expenditures 587 — — — 587 Six Months Ended June 30, 2019 Community Trust and Other Intersegment Total Interest income $ 43,101 $ — $ 206 $ — $ 43,307 Interest expense 6,356 — 894 — 7,250 Noninterest income 4,603 2,180 350 — 7,133 Income (loss) before income taxes 6,946 1,039 (2,046 ) — 5,939 Net income (loss) 5,670 835 (1,732 ) — 4,773 Depreciation and amortization 1,467 4 — — 1,471 Total assets 2,407,232 — 351,130 (340,280 ) 2,418,082 Goodwill 84,633 — — — 84,633 Capital expenditures 1,292 7 — — 1,299 Six Months Ended June 30, 2018 Community Trust and Other Intersegment Total Interest income $ 33,480 $ — $ 180 $ — $ 33,660 Interest expense 3,709 — 620 — 4,329 Noninterest income 4,174 2,306 416 — 6,896 Income (loss) before income taxes 14,097 1,020 (520 ) — 14,597 Net income (loss) 11,378 824 (410 ) — 11,792 Depreciation and amortization 1,081 6 — — 1,087 Total assets 1,814,730 — 241,617 (231,816 ) 1,824,531 Goodwill 43,872 — — — 43,872 Capital expenditures 932 — — — 932 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosure of cash flow information | Supplemental cash flow information as of and for the six months ended June 30, 2019 and 2018 is shown in the following table (dollars in thousands): Six Months Ended 2019 2018 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 34,460 $ 24,042 Interest-bearing deposits in other banks 20,454 9,300 Cash and Cash Equivalents $ 54,914 $ 33,342 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 6,583 $ 4,332 Income taxes 1,532 2,548 Noncash investing and financing activities: Transfer of loans to other real estate owned 181 532 Transfer from premises and equipment to other assets 445 — 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 7,935 (5,188 ) Unrealized losses on cash flow hedges (1,811 ) (237 ) Non-cash transactions related to acquisitions: Assets acquired: Investment securities 34,876 — Restricted stock 2,588 — Loans 444,324 — Premises and equipment 12,554 — Deferred income taxes 2,329 — Core deposit intangible 8,200 — Other real estate owned 1,442 — Bank owned life insurance 8,246 — Other assets 14,244 — Liabilities assumed: Deposits 483,626 — Short-term FHLB advances 14,883 — Long-term FHLB advances 778 — Subordinated debt 7,530 — Other liabilities 5,780 — Consideration: Issuance of common stock 82,470 — Fair value of replacement stock options/restricted stock 753 — |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Equity [Abstract] | |
Components of accumulated other comprehensive income (loss) | Changes in each component of accumulated other comprehensive income (loss) ("AOCI") for the three and six months ended June 30, 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 March 31, 2018 $ (4,325 ) $ — $ (2,280 ) $ (6,605 ) Net unrealized losses on securities available for sale, net of tax, $(325) (1,121 ) — — (1,121 ) Unrealized losses on cash flow hedges, net of tax, $(53) — (184 ) — (184 ) Balance at June 30, 2018 $ (5,446 ) (184 ) $ (2,280 ) $ (7,910 ) Balance at March 31, 2019 $ (896 ) $ (1,187 ) $ (1,238 ) $ (3,321 ) Net unrealized gains on securities available for sale, net of tax, $920 3,186 — — 3,186 Reclassification adjustment for realized gains on securities, net of tax, $(31) (105 ) — — (105 ) Unrealized losses on cash flow hedges, net of tax, $(243) — (843 ) — (843 ) Balance at June 30, 2019 $ 2,185 $ (2,030 ) $ (1,238 ) $ (1,083 ) For the Six 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 gains on securities available for sale, net of tax, $(1,186) (3,994 ) — — (3,994 ) Reclassification adjustment for realized gains on securities, net of tax, $(2) (6 ) — — (6 ) Reclassification for ASU 2016-01 adoption (650 ) — — (650 ) Unrealized losses on cash flow hedges, net of tax, $(53) — (184 ) — (184 ) Balance at June 30, 2018 $ (5,446 ) $ (184 ) $ (2,280 ) $ (7,910 ) Balance at December 31, 2018 $ (3,973 ) $ (624 ) $ (1,238 ) $ (5,835 ) Net unrealized losses on securities available for sale, net of tax, $1,809 6,266 — — 6,266 Reclassification adjustment for gains on sales of securities, net of tax, $(32) (108 ) — — (108 ) Unrealized losses on cash flow hedges, net of tax, $(405) — (1,406 ) — (1,406 ) Balance at June 30, 2019 $ 2,185 $ (2,030 ) $ (1,238 ) $ (1,083 ) |
Reclassifications out of accumulated other comprehensive income (loss) | Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three and Six Months ended June 30, 2019 and 2018 (dollars in thousands) For the Three Months Ended June 30, 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 $ 136 Securities gains, net (31 ) Income taxes Total reclassifications $ 105 Net of tax For the Three Months Ended June 30, 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 $ — Securities gains, net — Income taxes Total reclassifications $ — Net of tax For the Six Months Ended June 30, 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 $ 140 Securities gains, net (32 ) Income taxes $ 108 Net of tax For the Six Months Ended June 30, 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. |
Accounting Policies Accounting
Accounting Policies Accounting Policies (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 | [1] | Jun. 30, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Total assets | $ 2,418,082 | $ 1,862,866 | $ 1,824,531 | ||
Liabilities | $ 2,106,165 | $ 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. |
Acquisitions (Details)
Acquisitions (Details) - USD ($) $ / shares in Units, $ in Thousands | Apr. 01, 2019 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | |||||||
Merger related expense | $ 10,871 | $ 0 | $ 11,322 | $ 0 | |||
Consideration Paid: | |||||||
Cash paid in lieu of fractional shares | 27 | 0 | |||||
Liabilities assumed: | |||||||
Long-term FHLB advances | $ 778 | ||||||
Goodwill | $ 84,633 | $ 43,872 | 84,633 | 43,872 | $ 43,872 | [1] | |
Interest component of expected cash flows (accretable yield) | $ 4,410 | $ 0 | |||||
Business Acquisition, Pro Forma Information [Abstract] | |||||||
Issuance of common stock (in shares) | 2,361,686 | 2,361,686 | 2,361,686 | ||||
HomeTown Bankshares Corporation Merger | |||||||
Business Acquisition [Line Items] | |||||||
Number of shares issued per share of common stock (in shares) | 0.4150 | ||||||
Consideration Paid: | |||||||
Issuance of common shares, replacement options, and restricted stock | $ 753 | ||||||
Cash paid in lieu of fractional shares | $ 27 | ||||||
Value of consideration | 83,250 | ||||||
Assets acquired: | |||||||
Cash and cash equivalents | 26,283 | ||||||
Investment securities | 34,876 | ||||||
Restricted stock | 2,588 | ||||||
Loans | 444,324 | ||||||
Premises and equipment | 12,554 | ||||||
Deferred income taxes | 2,329 | ||||||
Core deposit intangible | 8,200 | ||||||
Other real estate owned | 1,442 | ||||||
Banked owned life insurance | 8,246 | ||||||
Other assets | 14,244 | ||||||
Total assets | 555,086 | ||||||
Liabilities assumed: | |||||||
Deposits | 483,626 | ||||||
Short-term FHLB advances | 14,883 | ||||||
Subordinated debt | 7,530 | ||||||
Other liabilities | 5,780 | ||||||
Total liabilities | 512,597 | ||||||
Net assets acquired | 42,489 | ||||||
Goodwill | 40,761 | ||||||
Contractually required principal and interest at acquisition | 45,551 | ||||||
Contractual cash flows not expected to be collected (nonaccretable difference) | 8,296 | ||||||
Expected cash flows at acquisition | 37,255 | ||||||
Interest component of expected cash flows (accretable yield) | 4,410 | ||||||
Fair value of acquired loans accounted for under FASB ASC 310-30 | 32,845 | ||||||
Business Acquisition, Pro Forma Information [Abstract] | |||||||
Total revenues | 45,768 | 49,419 | |||||
Net income | $ 13,382 | $ 14,755 | |||||
Earnings per share | $ 1.20 | $ 1.33 | |||||
Acquisition-related Costs | HomeTown Bankshares Corporation Merger | |||||||
Business Acquisition [Line Items] | |||||||
Merger related expense | $ 11,300 | ||||||
Data Processing Termination and Conversion Costs | HomeTown Bankshares Corporation Merger | |||||||
Business Acquisition [Line Items] | |||||||
Merger related expense | 9,100 | ||||||
Legal and Professional Fees | HomeTown Bankshares Corporation Merger | |||||||
Business Acquisition [Line Items] | |||||||
Merger related expense | 1,700 | ||||||
Salary and Related Expense | HomeTown Bankshares Corporation Merger | |||||||
Business Acquisition [Line Items] | |||||||
Merger related expense | 400 | ||||||
Other Noninterest Expense | HomeTown Bankshares Corporation Merger | |||||||
Business Acquisition [Line Items] | |||||||
Merger related expense | $ 100 | ||||||
Common Stock | HomeTown Bankshares Corporation Merger | |||||||
Consideration Paid: | |||||||
Issuance of common shares, replacement options, and restricted stock | $ 82,470 | ||||||
[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 | Jun. 30, 2019 | Dec. 31, 2018 | |
Securities available for sale: | |||
Amortized Cost | $ 331,512 | $ 337,774 | |
Unrealized Gains | 3,906 | 1,306 | |
Unrealized Losses | 1,092 | 6,427 | |
Securities available for sale, at fair value | 334,326 | 332,653 | [1] |
Federal agencies and GSEs | |||
Securities available for sale: | |||
Amortized Cost | 136,066 | 137,070 | |
Unrealized Gains | 1,594 | 442 | |
Unrealized Losses | 647 | 3,473 | |
Securities available for sale, at fair value | 137,013 | 134,039 | |
Mortgage-backed and CMOs | |||
Securities available for sale: | |||
Amortized Cost | 135,871 | 113,883 | |
Unrealized Gains | 1,426 | 385 | |
Unrealized Losses | 398 | 2,401 | |
Securities available for sale, at fair value | 136,899 | 111,867 | |
State and municipal | |||
Securities available for sale: | |||
Amortized Cost | 51,559 | 80,022 | |
Unrealized Gains | 733 | 411 | |
Unrealized Losses | 47 | 531 | |
Securities available for sale, at fair value | 52,245 | 79,902 | |
Corporate | |||
Securities available for sale: | |||
Amortized Cost | 8,016 | 6,799 | |
Unrealized Gains | 153 | 68 | |
Unrealized Losses | 0 | 22 | |
Securities available for sale, at fair value | $ 8,169 | $ 6,845 | |
[1] | Derived from audited consolidated financial statements. |
Securities - Additional Inform
Securities - Additional Information (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | ||
Investments, Debt and Equity Securities [Abstract] | ||||
Equity securities, at fair value | $ | $ 125,000 | $ 2,177,000 | $ 1,830,000 | [1] |
Unrealized holding gains on equity securities | $ | 330,000 | 402,000 | ||
Equity securities sold during period | $ | $ 317,000 | |||
Unrealized gain on equity securities | $ | $ 402,000 | |||
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 | 30 | |||
Number of securities in unrealized loss position for 12 months or more | 17 | |||
Mortgage-backed securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 41 | |||
Number of securities in unrealized loss position for 12 months or more | 36 | |||
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 | 13 | |||
Number of securities in unrealized loss position for 12 months or more | 13 | |||
Corporate securities | ||||
Debt Securities, Available-for-sale [Line Items] | ||||
Number of securities with unrealized losses | 0 | |||
[1] | Derived from audited consolidated financial statements. |
Securities - Cost of Restricte
Securities - Cost of Restricted Stock (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Schedule of Investments [Line Items] | |||
Total restricted stock | $ 7,796 | $ 5,247 | [1] |
FRB stock | |||
Schedule of Investments [Line Items] | |||
Total restricted stock | 5,045 | 3,621 | |
FHLB stock | |||
Schedule of Investments [Line Items] | |||
Total restricted stock | $ 2,751 | $ 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 | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Debt and Equity Securities | ||
Total | $ 156,938 | $ 230,888 |
Less than 12 Months | 2,886 | 27,654 |
12 Months or More | 154,052 | 203,234 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 1,092 | 6,427 |
Less than 12 Months | 30 | 41 |
12 Months or More | 1,062 | 6,386 |
Federal agencies and GSEs | ||
Fair Value, Debt and Equity Securities | ||
Total | 86,417 | 103,797 |
Less than 12 Months | 2,038 | 14,982 |
12 Months or More | 84,379 | 88,815 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 647 | 3,473 |
Less than 12 Months | 28 | 8 |
12 Months or More | 619 | 3,465 |
Mortgage-backed and CMOs | ||
Fair Value, Debt and Equity Securities | ||
Total | 59,842 | 86,852 |
Less than 12 Months | 848 | 5,473 |
12 Months or More | 58,994 | 81,379 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 398 | 2,401 |
Less than 12 Months | 2 | 15 |
12 Months or More | 396 | 2,386 |
State and municipal | ||
Fair Value, Debt and Equity Securities | ||
Total | 10,679 | 39,755 |
Less than 12 Months | 0 | 7,199 |
12 Months or More | 10,679 | 32,556 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 47 | 531 |
Less than 12 Months | 0 | 18 |
12 Months or More | 47 | 513 |
Corporate | ||
Fair Value, Debt and Equity Securities | ||
Total | 0 | 484 |
Less than 12 Months | 0 | 0 |
12 Months or More | 0 | 484 |
Unrealized Loss, Debt and Equity Securities | ||
Total | 0 | 22 |
Less than 12 Months | 0 | 0 |
12 Months or More | $ 0 | $ 22 |
Securities - Schedule of Sale
Securities - Schedule of Sale of Securities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Realized gains (losses): | ||||
Gross realized gains | $ 190 | $ 0 | $ 194 | $ 105 |
Gross realized losses | (54) | 0 | (54) | (97) |
Net realized gains | 136 | 0 | 140 | 8 |
Proceeds from sales of securities | $ 29,878 | $ 0 | $ 29,878 | $ 22,066 |
Loans - Schedule of Loans Excl
Loans - Schedule of Loans Excluding Loans Held for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 1,836,241 | $ 1,357,476 | [1] |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 340,427 | 285,972 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 1,033,022 | 753,040 | |
Commercial real estate | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 152,876 | 97,240 | |
Commercial real estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 880,146 | 655,800 | |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 450,305 | 313,371 | |
Residential real estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 328,400 | 209,438 | |
Residential real estate | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | 121,905 | 103,933 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total loans | $ 12,487 | $ 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 | Jun. 30, 2019 | Dec. 31, 2018 |
Outstanding principal balance and the carrying amount of loan acquired [Abstract] | ||
Outstanding principal balance | $ 482,640 | $ 63,619 |
Carrying amount | 464,419 | 58,886 |
Outstanding principal balance and the carrying amount of loan acquired, impaired [Abstract] | ||
Outstanding principal balance | 62,006 | 24,500 |
Carrying amount | $ 51,297 | $ 20,611 |
Loans - Accretable Yield on Ac
Loans - Accretable Yield on Acquired Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Changes in the accretable discount on acquired loans [Abstract] | ||
Beginning balance | $ 4,633 | $ 4,890 |
Additions from merger with HomeTown | 4,410 | 0 |
Accretion | (1,527) | (2,362) |
Reclassification from nonaccretable difference | 222 | 956 |
Other changes, net | 283 | 1,149 |
Ending balance | $ 8,021 | $ 4,633 |
Loans - Past Due (Details)
Loans - Past Due (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | $ 7,601 | $ 1,987 | |
Non- Accrual Loans | 969 | 1,090 | |
Current | 1,828,640 | 1,355,489 | |
Total Loans | 1,836,241 | 1,357,476 | [1] |
Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 1,534 | 103 | |
Non- Accrual Loans | 49 | 83 | |
Current | 338,893 | 285,869 | |
Total Loans | 340,427 | 285,972 | |
Commercial real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Loans | 1,033,022 | 753,040 | |
Commercial real estate | Construction and land development | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 417 | 27 | |
Non- Accrual Loans | 23 | 27 | |
Current | 152,459 | 97,213 | |
Total Loans | 152,876 | 97,240 | |
Commercial real estate | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 2,532 | 239 | |
Non- Accrual Loans | 116 | 197 | |
Current | 877,614 | 655,561 | |
Total Loans | 880,146 | 655,800 | |
Residential | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Loans | 450,305 | 313,371 | |
Residential | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 2,698 | 1,344 | |
Non- Accrual Loans | 706 | 659 | |
Current | 325,702 | 208,094 | |
Total Loans | 328,400 | 209,438 | |
Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 396 | 250 | |
Non- Accrual Loans | 75 | 124 | |
Current | 121,509 | 103,683 | |
Total Loans | 121,905 | 103,933 | |
Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 24 | 24 | |
Non- Accrual Loans | 0 | 0 | |
Current | 12,463 | 5,069 | |
Total Loans | 12,487 | 5,093 | |
30- 59 Days Past Due | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 3,343 | 665 | |
30- 59 Days Past Due | Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 313 | 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 | 211 | 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 | 1,951 | 42 | |
30- 59 Days Past Due | Residential | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 743 | 456 | |
30- 59 Days Past Due | Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 101 | 126 | |
30- 59 Days Past Due | Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 24 | 21 | |
60-89 Days Past Due | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 2,359 | 160 | |
60-89 Days Past Due | Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 1,168 | 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 | 130 | 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 | 841 | 157 | |
60-89 Days Past Due | Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 220 | 0 | |
60-89 Days Past Due | Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
Total Past Due | 0 | 3 | |
90 Days Past Due and Still Accruing | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | 930 | 72 | |
90 Days Past Due and Still Accruing | Commercial | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | 4 | 0 | |
90 Days Past Due and Still Accruing | Commercial real estate | Construction and land development | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | 53 | 0 | |
90 Days Past Due and Still Accruing | Commercial real estate | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | 465 | 0 | |
90 Days Past Due and Still Accruing | Residential | Real estate | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | 408 | 72 | |
90 Days Past Due and Still Accruing | Residential | Home equity | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | 0 | 0 | |
90 Days Past Due and Still Accruing | Consumer | |||
Analysis by portfolio segment of the entity's past due loans [Abstract] | |||
90 Days Past Due and Still Accruing | $ 0 | $ 0 | |
[1] | Derived from audited consolidated financial statements. |
Loans - Impaired Loan Balances
Loans - Impaired Loan Balances By Portfolio Segment (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2019 | Dec. 31, 2018 | |
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | $ 1,038 | $ 1,099 |
Impaired loan, with related allowance, recorded investment | 316 | 235 |
Impaired loan, total, recorded investment | 1,354 | 1,334 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 1,035 | 1,096 |
Impaired loan, with related allowance, unpaid principal balance | 312 | 231 |
Impaired loan, total, unpaid principal balance | 1,347 | 1,327 |
Impaired loan, total, related allowance | 77 | 64 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 1,060 | 1,571 |
Impaired loan, with related allowance, average recorded investment | 260 | 863 |
Impaired loan, total, average recorded investment | 1,320 | 2,434 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 34 | 89 |
Impaired loan, with related allowance, interest income recognized | 11 | 50 |
Impaired loan, total, interest income recognized | 45 | 139 |
Commercial | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 4 | 28 |
Impaired loan, with related allowance, recorded investment | 53 | 62 |
Impaired loan, total, recorded investment | 57 | 90 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 4 | 28 |
Impaired loan, with related allowance, unpaid principal balance | 49 | 58 |
Impaired loan, total, unpaid principal balance | 53 | 86 |
Impaired loan, total, related allowance | 49 | 55 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 11 | 44 |
Impaired loan, with related allowance, average recorded investment | 55 | 354 |
Impaired loan, total, average recorded investment | 66 | 398 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 0 | 14 |
Impaired loan, with related allowance, interest income recognized | 2 | 40 |
Impaired loan, total, interest income recognized | 2 | 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 | 348 | 376 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 348 | 376 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 346 | 373 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 346 | 373 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 362 | 542 |
Impaired loan, with related allowance, average recorded investment | 0 | 18 |
Impaired loan, total, average recorded investment | 362 | 560 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 14 | 36 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | 14 | 36 |
Residential | Real estate | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 641 | 646 |
Impaired loan, with related allowance, recorded investment | 263 | 173 |
Impaired loan, total, recorded investment | 904 | 819 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 640 | 646 |
Impaired loan, with related allowance, unpaid principal balance | 263 | 173 |
Impaired loan, total, unpaid principal balance | 903 | 819 |
Impaired loan, total, related allowance | 28 | 9 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 640 | 875 |
Impaired loan, with related allowance, average recorded investment | 205 | 342 |
Impaired loan, total, average recorded investment | 845 | 1,217 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 17 | 29 |
Impaired loan, with related allowance, interest income recognized | 9 | 9 |
Impaired loan, total, interest income recognized | 26 | 38 |
Residential | Home equity | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 45 | 49 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 45 | 49 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 45 | 49 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 45 | 49 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 47 | 108 |
Impaired loan, with related allowance, average recorded investment | 0 | 128 |
Impaired loan, total, average recorded investment | 47 | 236 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 3 | 10 |
Impaired loan, with related allowance, interest income recognized | 0 | 1 |
Impaired loan, total, interest income recognized | 3 | 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 | 6 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 207 | $ 0 | $ 207 | $ 11 |
Post-Modification Outstanding Recorded Investment | $ 207 | $ 0 | $ 207 | $ 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 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial real estate | Real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Commercial real estate | Construction and land development | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Residential | Real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 207 | $ 0 | $ 207 | $ 11 |
Post-Modification Outstanding Recorded Investment | $ 207 | $ 0 | $ 207 | $ 11 |
Residential | Home equity | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Loans - Residential Real Estat
Loans - Residential Real Estate in Process of Foreclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Receivables [Abstract] | ||
Residential real estate in process of foreclosure | $ 203 | $ 112 |
Residential OREO | $ 351 | $ 719 |
Loans - Loans Portfolio by Int
Loans - Loans Portfolio by Internal Risk Grading (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | |
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | $ 1,836,241 | $ 1,357,476 | [1] |
Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 340,427 | 285,972 | |
Commercial real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 1,033,022 | 753,040 | |
Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 152,876 | 97,240 | |
Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 880,146 | 655,800 | |
Commercial real estate | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 880,146 | 655,800 | |
Residential | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 450,305 | 313,371 | |
Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 328,400 | 209,438 | |
Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 121,905 | 103,933 | |
Consumer | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 12,487 | 5,093 | |
Consumer | Performing | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 12,487 | 5,093 | |
Consumer | Nonperforming | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 0 | 0 | |
Pass | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 327,393 | 285,092 | |
Pass | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 146,539 | 93,000 | |
Pass | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 835,625 | 647,519 | |
Pass | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 315,392 | 204,261 | |
Pass | Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 121,511 | 103,541 | |
Special Mention | Commercial | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 11,295 | 154 | |
Special Mention | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 3,993 | 1,840 | |
Special Mention | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 32,446 | 4,403 | |
Special Mention | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 7,782 | 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 | 1,739 | 726 | |
Substandard | Commercial real estate | Construction and land development | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 2,344 | 2,400 | |
Substandard | Commercial real estate | Other | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 12,075 | 3,878 | |
Substandard | Residential | Real estate | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 5,226 | 3,492 | |
Substandard | Residential | Home equity | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total loans | 394 | 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 | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | Jun. 30, 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 | $ (10) | $ (30) | 6 | (74) | (103) | |||||
Charge-offs | (123) | (174) | (1,020) | |||||||
Recoveries | 98 | 153 | 325 | |||||||
Balance, end of period | 12,786 | 13,508 | 12,786 | 13,508 | 12,805 | [1] | ||||
Reserve for Unfunded Lending Commitments | ||||||||||
Balance, beginning of period | 217 | 206 | 206 | |||||||
Provision for unfunded commitments | 99 | 13 | 11 | |||||||
Charge-offs | 0 | 0 | 0 | |||||||
Balance, end of period | 316 | 219 | 316 | 219 | 217 | |||||
Allowance for Loan Losses | ||||||||||
Individually evaluated for impairment | $ 77 | $ 64 | ||||||||
Collectively evaluated for impairment | 12,521 | 12,560 | ||||||||
Total | 12,786 | $ 13,508 | 12,805 | [1] | 13,603 | 13,603 | 12,786 | 12,805 | [1] | |
Loans | ||||||||||
Individually evaluated for impairment | 1,354 | 1,334 | ||||||||
Collectively evaluated for impairment | 1,783,590 | 1,335,531 | ||||||||
Total loans | 1,836,241 | 1,357,476 | [1] | |||||||
Acquired impaired loans | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 181 | |||||||||
Balance, end of period | 188 | 188 | 181 | |||||||
Allowance for Loan Losses | ||||||||||
Total | 188 | 181 | 181 | 188 | 181 | |||||
Loans | ||||||||||
Total loans | 51,297 | 20,611 | ||||||||
Commercial | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 2,537 | 2,413 | 2,413 | |||||||
Provision for (recovery of) loan losses | 178 | 842 | ||||||||
Charge-offs | (11) | (787) | ||||||||
Recoveries | 11 | 69 | ||||||||
Balance, end of period | 2,715 | 2,715 | 2,537 | |||||||
Allowance for Loan Losses | ||||||||||
Individually evaluated for impairment | 49 | 55 | ||||||||
Collectively evaluated for impairment | 2,666 | 2,482 | ||||||||
Total | 2,715 | 2,537 | 2,413 | 2,413 | 2,715 | 2,537 | ||||
Loans | ||||||||||
Individually evaluated for impairment | 57 | 90 | ||||||||
Collectively evaluated for impairment | 338,629 | 285,431 | ||||||||
Total loans | 340,427 | 285,972 | ||||||||
Commercial | Acquired impaired loans | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 0 | |||||||||
Balance, end of period | 0 | 0 | 0 | |||||||
Allowance for Loan Losses | ||||||||||
Total | 0 | 0 | 0 | 0 | 0 | |||||
Loans | ||||||||||
Total loans | 1,741 | 451 | ||||||||
Commercial Real Estate | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 7,246 | 8,321 | 8,321 | |||||||
Provision for (recovery of) loan losses | (119) | (1,074) | ||||||||
Charge-offs | (6) | (11) | ||||||||
Recoveries | 7 | 10 | ||||||||
Balance, end of period | 7,128 | 7,128 | 7,246 | |||||||
Allowance for Loan Losses | ||||||||||
Individually evaluated for impairment | 0 | 0 | ||||||||
Collectively evaluated for impairment | 7,097 | 7,211 | ||||||||
Total | 7,128 | 7,246 | 8,321 | 8,321 | 7,128 | 7,246 | ||||
Loans | ||||||||||
Individually evaluated for impairment | 348 | 376 | ||||||||
Collectively evaluated for impairment | 999,082 | 742,365 | ||||||||
Total loans | 1,033,022 | 753,040 | ||||||||
Commercial Real Estate | Acquired impaired loans | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 35 | |||||||||
Balance, end of period | 31 | 31 | 35 | |||||||
Allowance for Loan Losses | ||||||||||
Total | 31 | 35 | 35 | 31 | 35 | |||||
Loans | ||||||||||
Total loans | 33,592 | 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 | (99) | 89 | ||||||||
Charge-offs | (20) | (86) | ||||||||
Recoveries | 26 | 149 | ||||||||
Balance, end of period | 2,884 | 2,884 | 2,977 | |||||||
Allowance for Loan Losses | ||||||||||
Individually evaluated for impairment | 28 | 9 | ||||||||
Collectively evaluated for impairment | 2,699 | 2,822 | ||||||||
Total | 2,884 | 2,977 | 2,825 | 2,825 | 2,884 | 2,977 | ||||
Loans | ||||||||||
Individually evaluated for impairment | 949 | 868 | ||||||||
Collectively evaluated for impairment | 433,407 | 302,657 | ||||||||
Total loans | 450,305 | 313,371 | ||||||||
Residential Real Estate | Acquired impaired loans | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 146 | |||||||||
Balance, end of period | 157 | 157 | 146 | |||||||
Allowance for Loan Losses | ||||||||||
Total | 157 | 146 | 146 | 157 | 146 | |||||
Loans | ||||||||||
Total loans | 15,949 | 9,846 | ||||||||
Consumer | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 45 | 44 | 44 | |||||||
Provision for (recovery of) loan losses | 46 | 40 | ||||||||
Charge-offs | (86) | (136) | ||||||||
Recoveries | 54 | 97 | ||||||||
Balance, end of period | 59 | 59 | 45 | |||||||
Allowance for Loan Losses | ||||||||||
Individually evaluated for impairment | 0 | 0 | ||||||||
Collectively evaluated for impairment | 59 | 45 | ||||||||
Total | 59 | 45 | $ 44 | 44 | 59 | 45 | ||||
Loans | ||||||||||
Individually evaluated for impairment | 0 | 0 | ||||||||
Collectively evaluated for impairment | 12,472 | 5,078 | ||||||||
Total loans | 12,487 | 5,093 | ||||||||
Consumer | Acquired impaired loans | ||||||||||
Allowance for Loan Losses | ||||||||||
Balance, beginning of period | 0 | |||||||||
Balance, end of period | 0 | 0 | 0 | |||||||
Allowance for Loan Losses | ||||||||||
Total | $ 0 | $ 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 | 6 Months Ended | |||||
Apr. 30, 2019 | Jan. 31, 2015 | Jul. 31, 2011 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | ||
Goodwill | ||||||||
Beginning balance | [1] | $ 43,872 | ||||||
Additions | 40,761 | |||||||
Amortization | 0 | |||||||
Impairment | 0 | |||||||
Ending balance | $ 84,633 | $ 43,872 | 84,633 | $ 43,872 | ||||
Intangibles | ||||||||
Beginning balance | 926 | |||||||
Additions | 8,200 | |||||||
Amortization | (458) | $ (77) | (513) | $ (154) | ||||
Impairment | 0 | |||||||
Ending balance | $ 8,613 | $ 8,613 | ||||||
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 | |||||||
HomeTown Bankshares Corporation | ||||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||||
Core deposit intangible | $ 8,200 | |||||||
Amortization period of intangible | 120 months | |||||||
[1] | Derived from audited consolidated financial statements. |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Apr. 30, 2019 | Jan. 01, 2019 |
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | $ 5,758 | ||
Lease liabilities | $ 5,771 | ||
Accounting Standards Update 2016-02 | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | $ 4,400 | ||
Lease liabilities | $ 4,400 | ||
HomeTown Bankshares Corporation Merger | |||
Lessee, Lease, Description [Line Items] | |||
Right-of-use assets | $ 1,800 | ||
Lease liabilities | $ 1,800 |
Leases - Lease Information (Det
Leases - Lease Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019USD ($) | Jun. 30, 2019USD ($) | |
Leases [Abstract] | ||
Lease liabilities | $ 5,771 | $ 5,771 |
Right-of-use assets | $ 5,758 | $ 5,758 |
Weighted average remaining lease term | 8 years 6 months | 8 years 6 months |
Weighted average discount rate | 3.20% | 3.20% |
Operating lease cost | $ 283 | $ 494 |
Short-term lease cost | 1 | 2 |
Total lease cost | 284 | 496 |
Cash paid for amounts included in the measurement of lease liabilities | $ 274 | $ 483 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
Six months ending December 31, 2019 | $ 530 |
Twelve months ending December 31, 2020 | 950 |
Twelve months ending December 31, 2021 | 934 |
Twelve months ending December 31, 2022 | 912 |
Twelve months ending December 31, 2023 | 809 |
Twelve months ending December 31, 2024 | 491 |
Thereafter | 2,022 |
Total undiscounted cash flows | 6,648 |
Discount | (877) |
Lease liabilities | $ 5,771 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) | Jun. 30, 2019USD ($)bank | Dec. 31, 2018USD ($) | |
Line of Credit Facility [Line Items] | |||
Customer repurchase agreements | $ 37,222,000 | $ 35,243,000 | [1] |
FHLB borrowings | 13,528,000 | 0 | [1] |
Total short-term borrowings | $ 50,750,000 | $ 35,243,000 | |
First Two Correspondent Banks | |||
Line of Credit Facility [Line Items] | |||
Federal funds line of credit, number of banks | bank | 2 | ||
Federal funds line of credit, amount per agreement | $ 15,000,000 | ||
Third Correspondent Bank | |||
Line of Credit Facility [Line Items] | |||
Federal funds line of credit, number of banks | bank | 1 | ||
Federal funds line of credit, amount per agreement | $ 17,500,000 | ||
[1] | Derived from audited consolidated financial statements. |
Long-term Borrowings (Details)
Long-term Borrowings (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
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 | $ 602,513,000 | |
Long-term federal home loan bank advances | 0 | $ 0 |
Public deposit accounts | 244,960,000 | |
Outstanding letters of credit | 190,250,000 | |
Federal Home Loan Bank Advances | ||
Long term advances with federal home loan bank [Abstract] | ||
Outstanding letters of credit | 190,000,000 | |
US government and agency securities | ||
Long term advances with federal home loan bank [Abstract] | ||
Outstanding letters of credit | $ 92,384,000 |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | Apr. 01, 2019 | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Subordinated debt | $ 7,526,000 | $ 0 | |
Subordinated borrowing, interest rate | 6.75% | ||
HomeTown Bankshares Corporation Merger | |||
Debt Instrument [Line Items] | |||
Subordinated debt | $ 7,500,000 | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Subordinated debt, fair value adjustment | $ 26,000 | ||
Subordinated Debt | HomeTown Bankshares Corporation Merger | |||
Debt Instrument [Line Items] | |||
Subordinated debt, fair value adjustment | $ 30,000 |
Junior Subordinated Debt - Addi
Junior Subordinated Debt - Additional Information (Details) $ in Thousands | Apr. 07, 2006USD ($) | Jun. 30, 2019USD ($) | 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 | 6 Months Ended | |||
Jun. 30, 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 | $ 1,405 | $ 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 | 27,978 | 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 | 4,405 | 4,377 | ||
Junior Subordinated Debt Securities | MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 2,954 | $ 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 | Jun. 30, 2019USD ($)position | Dec. 31, 2018USD ($)position |
Derivative [Line Items] | ||
Notional Amount | $ 28,500 | $ 28,500 |
Positions | position | 3 | 3 |
Assets | $ 0 | $ 0 |
Liabilities | 2,615 | 804 |
Cash Collateral Pledged | $ 2,650 | $ 650 |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Details) - USD ($) | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 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 | |||
Business combinations options acquired (in shares) | 40,753 | |||
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 | $ 1,033,000 | $ 647,000 | ||
Weighted average period for recognition of unrecognized compensation cost | 1 year 8 months 9 days | |||
Share based compensation expense | $ 585,000 | $ 292,000 | ||
Number of shares issued (in shares) | 8,793 | 7,861 | ||
Recognized share based compensation expense | $ 318,000 | $ 300,000 | ||
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% | |||
HomeTown Bankshares Corporation Merger | Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share based compensation expense | $ 257,000 | |||
HomeTown Bankshares Corporation Merger | Common Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Business combinations options acquired (in shares) | 40,753 |
Stock Based Compensation - Stoc
Stock Based Compensation - Stock Options Transactions (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Option Shares | ||||
Outstanding at beginning of period (in shares) | 13,200 | |||
Business combinations options acquired (in shares) | 40,753 | |||
Granted (in shares) | 0 | |||
Exercised (in shares) | (17,330) | (28,710) | (30,530) | (32,010) |
Forfeited (in shares) | (1,660) | |||
Expired (in shares) | 0 | |||
Outstanding at end of period (in shares) | 21,763 | 21,763 | ||
Exercisable at end of period (in shares) | 17,264 | 17,264 | ||
Weighted Average Exercise Price | ||||
Outstanding at beginning of period (in dollars per share) | $ 21.97 | |||
Business combination options acquired (in dollars per share) | 16.63 | |||
Granted (in dollars per share) | 0 | |||
Exercised (in dollars per share) | 18.94 | |||
Forfeited (in dollars per share) | 16.63 | |||
Expired (in dollars per share) | 0 | |||
Outstanding at end of period (in dollars per share) | $ 16.63 | 16.63 | ||
Exercisable at end of period (in dollars per share) | $ 16.63 | $ 16.63 | ||
Weighted Average Remaining Contractual Term | ||||
Outstanding at end of period | 5 years 24 days | |||
Exercisable at end of period | 4 years 11 months 15 days | |||
Aggregate Intrinsic Value ($000) | ||||
Outstanding at end of period | $ 481 | $ 481 | ||
Exercisable at end of period | $ 382 | $ 382 |
Stock Based Compensation - Rest
Stock Based Compensation - Restricted Stock Activity (Details) | 6 Months Ended |
Jun. 30, 2019$ / sharesshares | |
Shares | |
Issued in HomeTown acquisition (in shares) | shares | 7,137 |
Weighted Average Grant Date Value Per Share | |
Issued in HomeTown acquisition (in dollars per share) | $ / shares | 27.28 |
Restricted Stock | |
Shares | |
Nonvested at beginning of period (in shares) | shares | 52,798 |
Granted (in shares) | shares | 18,926 |
Vested (in shares) | shares | (22,110) |
Forfeited (in shares) | shares | (1,200) |
Nonvested at end of period (in shares) | shares | 55,551 |
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 | 23.46 |
Forfeited (in dollars per share) | $ / shares | 34.04 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 34.58 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Shares | ||||
Basic earnings per share (in shares) | 11,126,800 | 8,692,107 | 9,942,566 | 8,680,739 |
Effect of dilutive securities - stock options (in shares) | 0 | 12,619 | 9,549 | 15,121 |
Diluted earnings per share (in shares) | 11,126,800 | 8,704,726 | 9,952,115 | 8,695,860 |
Per Share Amount | ||||
Basic earnings per share (in dollars per share) | $ (0.11) | $ 0.69 | $ 0.48 | $ 1.36 |
Effect of dilutive securities - stock options (in dollars per share) | 0 | 0 | 0 | 0 |
Diluted earnings per share (in dollars per share) | $ (0.11) | $ 0.69 | $ 0.48 | $ 1.36 |
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 | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 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 | 19 | 25 |
Recognized net actuarial loss | 65 | 68 |
Net periodic cost | $ 74 | $ 80 |
Fair Value Measurements - Asse
Fair Value Measurements - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Assets: | ||||
Securities available for sale | $ 334,326,000 | $ 332,653,000 | [1] | |
Equity securities, at fair value | 125,000 | 1,830,000 | [1] | $ 2,177,000 |
Level 1 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Equity securities, at fair value | 0 | |||
Derivative - cash flow hedges | 0 | 0 | ||
Level 2 | ||||
Assets: | ||||
Securities available for sale | 334,326,000 | 332,653,000 | ||
Equity securities, at fair value | 125,000 | 1,830,000 | ||
Derivative - cash flow hedges | 2,615,000 | 804,000 | ||
Level 3 | ||||
Assets: | ||||
Securities available for sale | 0 | 0 | ||
Equity securities, at fair value | 0 | |||
Derivative - cash flow hedges | 0 | 0 | ||
Federal agencies and GSEs | ||||
Assets: | ||||
Securities available for sale | 137,013,000 | 134,039,000 | ||
Mortgage-backed and CMOs | ||||
Assets: | ||||
Securities available for sale | 136,899,000 | 111,867,000 | ||
State and municipal | ||||
Assets: | ||||
Securities available for sale | 52,245,000 | 79,902,000 | ||
Corporate | ||||
Assets: | ||||
Securities available for sale | 8,169,000 | 6,845,000 | ||
Fair Value, Measurements, Recurring | ||||
Assets: | ||||
Securities available for sale | 334,326,000 | 332,653,000 | ||
Equity securities, at fair value | 125,000 | 1,830,000 | ||
Derivative - cash flow hedges | 2,615,000 | 804,000 | ||
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 | 334,326,000 | 332,653,000 | ||
Equity securities, at fair value | 125,000 | 1,830,000 | ||
Derivative - cash flow hedges | 2,615,000 | 804,000 | ||
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 | 137,013,000 | 134,039,000 | ||
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 | 137,013,000 | 134,039,000 | ||
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 | 136,899,000 | 111,867,000 | ||
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 | 136,899,000 | 111,867,000 | ||
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 | 52,245,000 | 79,902,000 | ||
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 | 52,245,000 | 79,902,000 | ||
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 | 8,169,000 | 6,845,000 | ||
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 | 8,169,000 | 6,845,000 | ||
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) | 6 Months Ended | 12 Months Ended |
Jun. 30, 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 | 6 Months Ended | |
Jun. 30, 2019 | Dec. 31, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Document Fiscal Year Focus | 2019 | |
Level 1 | ||
Assets: | ||
Loans held for sale | $ 0 | $ 0 |
Level 2 | ||
Assets: | ||
Loans held for sale | 3,165 | 640 |
Level 3 | ||
Assets: | ||
Loans held for sale | 0 | 0 |
Fair Value, Measurements, Nonrecurring | ||
Assets: | ||
Loans held for sale | 3,165 | 640 |
Impaired loans, net of valuation allowance | 239 | 171 |
Other real estate owned, net | 1,433 | 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 | 3,165 | 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 | 239 | 171 |
Other real estate owned, net | $ 1,433 | $ 869 |
Fair Value Measurements - Leve
Fair Value Measurements - Level 3 Quantitative Information (Details) - Level 3 | Jun. 30, 2019 | Dec. 31, 2018 |
Discounted appraised value | Selling cost | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Impaired loans | 0.08 | 0.08 |
Other real estate owned, net | 0.08 | 0.08 |
Discounted cash flow analysis | Discount rate | Minimum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Impaired loans | 0.0325 | 0.0325 |
Discounted cash flow analysis | Discount rate | Maximum | ||
Fair Value Measurement Inputs and Valuation Techniques [Abstract] | ||
Impaired loans | 0.098 | 0.098 |
Fair Value Measurements - Carr
Fair Value Measurements - Carrying and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | |
Financial Assets: | ||||
Equity securities, at fair value | $ 125 | $ 1,830 | [1] | $ 2,177 |
Securities available for sale | 334,326 | 332,653 | [1] | |
Financial Liabilities: | ||||
Other short-term borrowings | 13,528 | 0 | [1] | |
Level 1 | ||||
Financial Assets: | ||||
Cash and cash equivalents | 54,914 | 64,255 | ||
Equity securities, at fair value | 0 | |||
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 | ||
Subordinated and junior subordinated debt | 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 | 125 | 1,830 | ||
Securities available for sale | 334,326 | 332,653 | ||
Restricted stock | 7,796 | 5,247 | ||
Loans held for sale | 3,165 | 640 | ||
Loans, net of allowance | 0 | 0 | ||
Bank owned life insurance | 27,451 | 18,941 | ||
Accrued interest receivable | 7,375 | 5,449 | ||
Financial Liabilities: | ||||
Deposits | 2,000,234 | 1,570,721 | ||
Repurchase agreements | 37,222 | 35,243 | ||
Subordinated and junior subordinated debt | 0 | |||
Accrued interest payable | 1,462 | 795 | ||
Derivative - cash flow hedges | 2,615 | 804 | ||
Level 3 | ||||
Financial Assets: | ||||
Cash and cash equivalents | 0 | 0 | ||
Equity securities, at fair value | 0 | |||
Securities available for sale | 0 | 0 | ||
Restricted stock | 0 | 0 | ||
Loans held for sale | 0 | 0 | ||
Loans, net of allowance | 1,811,890 | 1,334,236 | ||
Bank owned life insurance | 0 | 0 | ||
Accrued interest receivable | 0 | 0 | ||
Financial Liabilities: | ||||
Deposits | 0 | 0 | ||
Repurchase agreements | 0 | 0 | ||
Subordinated and junior subordinated debt | 22,577 | |||
Accrued interest payable | 0 | 0 | ||
Derivative - cash flow hedges | 0 | 0 | ||
Carrying Value | ||||
Financial Assets: | ||||
Cash and cash equivalents | 54,914 | 64,255 | ||
Equity securities, at fair value | 125 | 1,830 | ||
Securities available for sale | 334,326 | 332,653 | ||
Restricted stock | 7,796 | 5,247 | ||
Loans held for sale | 3,165 | 640 | ||
Loans, net of allowance | 1,823,455 | 1,344,671 | ||
Bank owned life insurance | 27,451 | 18,941 | ||
Accrued interest receivable | 7,375 | 5,449 | ||
Financial Liabilities: | ||||
Deposits | 1,999,097 | 1,566,227 | ||
Repurchase agreements | 37,222 | 35,243 | ||
Subordinated and junior subordinated debt | 27,927 | |||
Accrued interest payable | 1,462 | 795 | ||
Derivative - cash flow hedges | 2,615 | 804 | ||
Fair Value | ||||
Financial Assets: | ||||
Cash and cash equivalents | 54,914 | 64,255 | ||
Equity securities, at fair value | 125 | 1,830 | ||
Securities available for sale | 334,326 | 332,653 | ||
Restricted stock | 7,796 | 5,247 | ||
Loans held for sale | 3,165 | 640 | ||
Loans, net of allowance | 1,811,890 | 1,334,236 | ||
Bank owned life insurance | 27,451 | 18,941 | ||
Accrued interest receivable | 7,375 | 5,449 | ||
Financial Liabilities: | ||||
Deposits | 2,000,234 | 1,570,721 | ||
Repurchase agreements | 37,222 | 35,243 | ||
Subordinated and junior subordinated debt | 22,577 | |||
Accrued interest payable | 1,462 | 795 | ||
Derivative - cash flow hedges | 2,615 | $ 804 | ||
Short-term Debt | Level 1 | ||||
Financial Liabilities: | ||||
Other short-term borrowings | 0 | |||
Short-term Debt | Level 2 | ||||
Financial Liabilities: | ||||
Other short-term borrowings | 13,528 | |||
Short-term Debt | Level 3 | ||||
Financial Liabilities: | ||||
Other short-term borrowings | 0 | |||
Short-term Debt | Carrying Value | ||||
Financial Liabilities: | ||||
Other short-term borrowings | 13,528 | |||
Short-term Debt | Fair Value | ||||
Financial Liabilities: | ||||
Other short-term borrowings | 13,528 | |||
Subordinated Debt | Level 1 | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 0 | |||
Subordinated Debt | Level 2 | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 7,568 | |||
Subordinated Debt | Level 3 | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 0 | |||
Subordinated Debt | Carrying Value | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 7,526 | |||
Subordinated Debt | Fair Value | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 7,568 | |||
Junior Subordinated Debt | Level 1 | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 0 | |||
Junior Subordinated Debt | Level 2 | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 0 | |||
Junior Subordinated Debt | Level 3 | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 24,528 | |||
Junior Subordinated Debt | Carrying Value | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | 27,978 | |||
Junior Subordinated Debt | Fair Value | ||||
Financial Liabilities: | ||||
Subordinated and junior subordinated debt | $ 24,528 | |||
[1] | Derived from audited consolidated financial statements. |
Segment and Related Informati_3
Segment and Related Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019USD ($) | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)segment | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | [1] | |
Segment Reporting [Abstract] | ||||||
Number of reportable segments | segment | 2 | |||||
Segment Reporting Information [Line Items] | ||||||
Interest income | $ 25,211 | $ 16,992 | $ 43,307 | $ 33,660 | ||
Interest expense | 4,222 | 2,204 | 7,250 | 4,329 | ||
Noninterest income | 3,682 | 3,563 | 7,133 | 6,896 | ||
Income (loss) before income taxes | (1,635) | 7,379 | 5,939 | 14,597 | ||
Net income (loss) | (1,230) | 5,980 | 4,773 | 11,792 | ||
Depreciation and amortization | 1,011 | 544 | 1,471 | 1,087 | ||
Total assets | 2,418,082 | 1,824,531 | 2,418,082 | 1,824,531 | $ 1,862,866 | |
Goodwill | 84,633 | 43,872 | 84,633 | 43,872 | $ 43,872 | |
Capital expenditures | 906 | 587 | 1,299 | 932 | ||
Operating Segments | Community Banking | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 25,102 | 16,900 | 43,101 | 33,480 | ||
Interest expense | 3,712 | 1,874 | 6,356 | 3,709 | ||
Noninterest income | 2,543 | 2,111 | 4,603 | 4,174 | ||
Income (loss) before income taxes | (574) | 7,071 | 6,946 | 14,097 | ||
Net income (loss) | (327) | 5,725 | 5,670 | 11,378 | ||
Depreciation and amortization | 1,009 | 541 | 1,467 | 1,081 | ||
Total assets | 2,407,232 | 1,814,730 | 2,407,232 | 1,814,730 | ||
Goodwill | 84,633 | 43,872 | 84,633 | 43,872 | ||
Capital expenditures | 906 | 587 | 1,292 | 932 | ||
Operating Segments | Trust and Investment Services | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Noninterest income | 1,119 | 1,155 | 2,180 | 2,306 | ||
Income (loss) before income taxes | 559 | 567 | 1,039 | 1,020 | ||
Net income (loss) | 455 | 459 | 835 | 824 | ||
Depreciation and amortization | 2 | 3 | 4 | 6 | ||
Total assets | 0 | 0 | 0 | 0 | ||
Goodwill | 0 | 0 | 0 | 0 | ||
Capital expenditures | 0 | 0 | 7 | 0 | ||
Other | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 109 | 92 | 206 | 180 | ||
Interest expense | 510 | 330 | 894 | 620 | ||
Noninterest income | 20 | 297 | 350 | 416 | ||
Income (loss) before income taxes | (1,620) | (259) | (2,046) | (520) | ||
Net income (loss) | (1,358) | (204) | (1,732) | (410) | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Total assets | 351,130 | 241,617 | 351,130 | 241,617 | ||
Goodwill | 0 | 0 | 0 | 0 | ||
Capital expenditures | 0 | 0 | 0 | 0 | ||
Intersegment Eliminations | ||||||
Segment Reporting Information [Line Items] | ||||||
Interest income | 0 | 0 | 0 | 0 | ||
Interest expense | 0 | 0 | 0 | 0 | ||
Noninterest income | 0 | 0 | 0 | 0 | ||
Income (loss) before income taxes | 0 | 0 | 0 | 0 | ||
Net income (loss) | 0 | 0 | 0 | 0 | ||
Depreciation and amortization | 0 | 0 | 0 | 0 | ||
Total assets | (340,280) | (231,816) | (340,280) | (231,816) | ||
Goodwill | 0 | 0 | 0 | 0 | ||
Capital expenditures | $ 0 | $ 0 | $ 0 | $ 0 | ||
[1] | Derived from audited consolidated financial statements. |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | [1] | |
Supplemental Schedule of Cash and Cash Equivalents: | ||||
Cash and due from banks | $ 34,460 | $ 24,042 | $ 29,587 | |
Interest-bearing deposits in other banks | 20,454 | 9,300 | $ 34,668 | |
Cash and Cash Equivalents | 54,914 | 33,342 | ||
Cash paid for: | ||||
Interest on deposits and borrowed funds | 6,583 | 4,332 | ||
Income taxes | 1,532 | 2,548 | ||
Noncash investing and financing activities: | ||||
Transfer of loans to other real estate owned | 181 | 532 | ||
Transfer from premises and equipment to other assets | 445 | |||
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 | 7,935 | (5,188) | ||
Unrealized losses on cash flow hedges | (1,811) | |||
Unrealized losses on cash flow hedges | (237) | |||
Assets acquired: | ||||
Investment securities | 34,876 | 0 | ||
Restricted stock | 2,588 | 0 | ||
Loans | 444,324 | 0 | ||
Premises and equipment | 12,554 | 0 | ||
Deferred income taxes | 2,329 | 0 | ||
Core deposit intangible | 8,200 | 0 | ||
Other real estate owned | 1,442 | 0 | ||
Bank owned life insurance | 8,246 | 0 | ||
Other assets | 14,244 | 0 | ||
Liabilities assumed: | ||||
Deposits | 483,626 | 0 | ||
Short-term FHLB advances | 14,883 | |||
Long-term FHLB advances | 778 | |||
Subordinated debt | 7,530 | |||
Other liabilities | 5,780 | 0 | ||
Consideration: | ||||
Issuance of common stock | 82,470 | 0 | ||
Fair value of replacement stock options/restricted stock | $ 753 | $ 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 | 6 Months Ended | |||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | $ 229,473 | $ 209,840 | $ 222,542 | [1] | $ 208,717 | ||
Net unrealized gains (losses) on securities available for sale, net of tax | 3,186 | (1,121) | 6,266 | (3,994) | |||
Reclassification adjustment for realized gains on securities, net of tax | (105) | (108) | (6) | ||||
Change in accounting for late charges | $ 0 | ||||||
Unrealized losses on cash flow hedges | (843) | ||||||
Ending Balance | 311,917 | 213,348 | 311,917 | 213,348 | |||
Net unrealized gains (losses) on securities available for sale, tax | 920 | (325) | 1,809 | (1,186) | |||
Reclassification adjustment for realized gains on securities, tax | (31) | 0 | (32) | (2) | |||
Tax effect | (243) | (53) | (405) | (53) | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (184) | ||||||
Net Unrealized Gains (Losses) on Securities | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (896) | (4,325) | (3,973) | (796) | |||
Net unrealized gains (losses) on securities available for sale, net of tax | 3,186 | (1,121) | 6,266 | (3,994) | |||
Reclassification adjustment for realized gains on securities, net of tax | (105) | (108) | (6) | ||||
Change in accounting for late charges | $ (650) | ||||||
Ending Balance | 2,185 | (5,446) | 2,185 | (5,446) | |||
Unrealized Losses on Cash Flow Hedges | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | 0 | (624) | |||||
Unrealized losses on cash flow hedges | (1,406) | ||||||
Ending Balance | (2,030) | (184) | (2,030) | (184) | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | (184) | (184) | |||||
Unrealized Losses on Cash Flow Hedges | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (1,187) | ||||||
Unrealized losses on cash flow hedges | (843) | ||||||
Ending Balance | (2,030) | (2,030) | |||||
Adjustments Related to Pension Benefits | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (1,238) | (2,280) | (1,238) | (2,280) | |||
Ending Balance | (1,238) | (2,280) | (1,238) | (2,280) | |||
Accumulated Other Comprehensive Income (Loss) | |||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | |||||||
Beginning Balance | (3,321) | (6,605) | (5,835) | (3,076) | |||
Change in accounting for late charges | $ (650) | ||||||
Unrealized losses on cash flow hedges | (1,406) | ||||||
Ending Balance | $ (1,083) | $ (7,910) | $ (1,083) | (7,910) | |||
Other Comprehensive Income (Loss), Cash Flow Hedge, Gain (Loss), before Reclassification, after Tax | $ (184) | ||||||
[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 | 6 Months Ended | ||||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Jan. 01, 2019 | Dec. 31, 2017 | |
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||
Securities gains, net | $ 147 | $ 289 | $ 470 | $ 410 | ||
Income taxes | 405 | (1,399) | (1,166) | (2,805) | ||
Net income (loss) | (1,230) | 5,980 | 4,773 | 11,792 | ||
Change in accounting for late charges | $ 0 | |||||
Reclassifications | 105 | 108 | 6 | |||
Realized gain on call of securities | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||
Change in accounting for late charges | $ (650) | |||||
Reclassifications | 105 | 108 | 6 | |||
Amount Reclassified from AOCI | ||||||
Reclassification Adjustment Out Of Accumulated Other Comprehensive Income [Line Items] | ||||||
Net income (loss) | 105 | 108 | ||||
Change in accounting for late charges | $ 650 | |||||
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 | 136 | 0 | 140 | 8 | ||
Income taxes | $ (31) | 0 | $ (32) | (2) | ||
Net income (loss) | $ 0 | $ 6 |
Uncategorized Items - amnb-2019
Label | Element | Value |
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 |