Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 02, 2020 | Jun. 30, 2019 | |
Document and Entity Information [Abstract] | |||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Entity Registrant Name | AMERICAN NATIONAL BANKSHARES INC. | ||
Entity Central Index Key | 0000741516 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Accelerated Filer | ||
Emerging Growth Company | false | ||
Entity Small Business | true | ||
Entity Public Float | $ 401,638 | ||
Entity Common Stock, Shares Outstanding | 10,965,458 | ||
Entity Shell Company | false | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 32,505 | $ 29,587 |
Interest-bearing deposits in other banks | 47,077 | 34,668 |
Equity securities, at fair value | 0 | 1,830 |
Securities available for sale, at fair value | 379,195 | 332,653 |
Restricted stock, at cost | 8,630 | 5,247 |
Loans held for sale | 2,027 | 640 |
Loans, net of unearned income | 1,830,815 | 1,357,476 |
Less allowance for loan losses | (13,152) | (12,805) |
Net loans | 1,817,663 | 1,344,671 |
Premises and equipment, net | 39,848 | 26,675 |
Other real estate owned, net of valuation allowance of $153 in 2019 and $109 in 2018 | 1,308 | 869 |
Goodwill | 84,002 | 43,872 |
Core deposit intangibles, net | 7,728 | 926 |
Bank owned life insurance | 27,817 | 18,941 |
Accrued interest receivable and other assets | 30,750 | 22,287 |
Total assets | 2,478,550 | 1,862,866 |
Liabilities: | ||
Demand deposits -- noninterest bearing | 578,606 | 435,828 |
Demand deposits -- interest bearing | 328,015 | 234,621 |
Money market deposits | 504,651 | 401,461 |
Savings deposits | 177,505 | 132,360 |
Time deposits | 471,770 | 361,957 |
Total deposits | 2,060,547 | 1,566,227 |
Customer repurchase agreements | 40,475 | 35,243 |
Subordinated debt | 7,517 | 0 |
Junior subordinated debt | 28,029 | 27,927 |
Accrued interest payable and other liabilities | 21,724 | 10,927 |
Total liabilities | 2,158,292 | 1,640,324 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, $5 par, 2,000,000 shares authorized, none outstanding | 0 | 0 |
Common stock, $1 par, 20,000,000 shares authorized, 11,071,540 shares outstanding at December 31, 2019 and 8,720,337 shares outstanding at December 31, 2018 | 11,019 | 8,668 |
Capital in excess of par value | 158,244 | 78,172 |
Retained earnings | 151,478 | 141,537 |
Accumulated other comprehensive loss, net | (483) | (5,835) |
Total shareholders' equity | 320,258 | 222,542 |
Total liabilities and shareholders' equity | $ 2,478,550 | $ 1,862,866 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Other real estate owned, valuation allowance | $ 153 | $ 109 |
Preferred stock, par value (in dollars per share) | $ 5 | $ 5 |
Preferred stock, authorized (in shares) | 2,000,000 | 2,000,000 |
Preferred stock, outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, authorized (in shares) | 20,000,000 | 20,000,000 |
Common stock, outstanding (in shares) | 11,071,540 | 8,720,337 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest and Dividend Income: | |||
Interest and fees on loans | $ 82,684 | $ 59,966 | $ 55,276 |
Interest and dividends on securities: | |||
Taxable | 7,682 | 6,106 | 4,666 |
Tax-exempt | 777 | 1,502 | 2,043 |
Dividends | 451 | 321 | 319 |
Other interest income | 1,261 | 873 | 734 |
Total interest and dividend income | 92,855 | 68,768 | 63,038 |
Interest Expense: | |||
Interest on deposits | 13,143 | 8,086 | 5,794 |
Interest on short-term borrowings | 650 | 186 | 173 |
Interest on long-term borrowings | 14 | 0 | 296 |
Interest on subordinated debt | 367 | 0 | 0 |
Interest on junior subordinated debt | 1,554 | 1,402 | 1,028 |
Total interest expense | 15,728 | 9,674 | 7,291 |
Net Interest Income | 77,127 | 59,094 | 55,747 |
Provision for (recovery of) loan losses | 456 | (103) | 1,016 |
Net Interest Income after Provision for (Recovery of) Loan Losses | 76,671 | 59,197 | 54,731 |
Noninterest Income: | |||
Trust fees | 3,847 | 3,783 | 3,926 |
Service charges on deposit accounts | 2,866 | 2,455 | 2,426 |
Other fees and commissions | 3,693 | 2,637 | 2,471 |
Mortgage banking income | 2,439 | 1,862 | 2,208 |
Securities gains, net | 607 | 123 | 812 |
Brokerage fees | 721 | 795 | 829 |
Income from Small Business Investment Companies | 211 | 637 | 236 |
Gains (losses) on premises and equipment, net | (427) | 60 | 344 |
Other | 1,213 | 922 | 975 |
Total noninterest income | 15,170 | 13,274 | 14,227 |
Noninterest Expense: | |||
Salaries | 24,672 | 20,509 | 19,829 |
Employee benefits | 5,343 | 4,370 | 4,274 |
Occupancy and equipment | 5,417 | 4,378 | 4,487 |
FDIC assessment | 119 | 537 | 538 |
Bank franchise tax | 1,644 | 1,054 | 1,072 |
Core deposit intangible amortization | 1,398 | 265 | 528 |
Data processing | 2,567 | 1,691 | 2,014 |
Software | 1,295 | 1,279 | 1,144 |
Other real estate owned, net | 31 | 122 | 303 |
Merger related expenses | 11,782 | 872 | 0 |
Other | 11,806 | 9,169 | 8,694 |
Total noninterest expense | 66,074 | 44,246 | 42,883 |
Income Before Income Taxes | 25,767 | 28,225 | 26,075 |
Income Taxes | 4,861 | 5,646 | 10,826 |
Net Income | $ 20,906 | $ 22,579 | $ 15,249 |
Net Income Per Common Share: | |||
Basic (in dollars per share) | $ 1.99 | $ 2.60 | $ 1.76 |
Diluted (in dollars per share) | $ 1.98 | $ 2.59 | $ 1.76 |
Average Common Shares Outstanding: | |||
Basic (in shares) | 10,531,572 | 8,698,014 | 8,641,717 |
Diluted (in shares) | 10,541,337 | 8,708,462 | 8,660,628 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 20,906 | $ 22,579 | $ 15,249 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on securities available for sale | 9,095 | (3,209) | 35 |
Tax effect | (2,005) | 745 | (12) |
Reclassification adjustment for gain on sale or call of securities | (274) | (81) | (812) |
Tax effect | 59 | 18 | 284 |
Unrealized losses on cash flow hedges | (1,854) | ||
Tax effect | 394 | ||
Unrealized losses on cash flow hedges | (804) | 0 | |
Tax effect | 180 | 0 | |
Change in unfunded pension liability | (64) | 1,291 | (234) |
Tax effect | 1 | (249) | 82 |
Other comprehensive income (loss) | 5,352 | (2,109) | (657) |
Comprehensive income | $ 26,258 | $ 20,470 | $ 14,592 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Capital in Excess of Par Value | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning Balance at Dec. 31, 2016 | $ 201,380 | $ 8,578 | $ 75,076 | $ 119,600 | $ (1,874) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 15,249 | 15,249 | |||
Other comprehensive income (loss) | (657) | (657) | |||
Reclass stranded tax effects from tax rate change | (545) | 545 | (545) | ||
Stock options exercised | 113 | 5 | 108 | ||
Vesting of restricted stock | 8 | (8) | |||
Equity-based compensation | 1,016 | 13 | 1,003 | ||
Cash dividends paid | (8,384) | (8,384) | |||
Ending Balance at Dec. 31, 2017 | 208,717 | 8,604 | 76,179 | 127,010 | (3,076) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Reclassification for ASU 2016-01 adoption | (650) | ||||
Net income | 22,579 | 22,579 | |||
Other comprehensive income (loss) | (2,109) | (2,109) | |||
Stock options exercised | 861 | 35 | 826 | ||
Vesting of restricted stock | 13 | (13) | |||
Equity-based compensation | 1,196 | 16 | 1,180 | ||
Cash dividends paid | (8,702) | (8,702) | |||
Ending Balance at Dec. 31, 2018 | 222,542 | 8,668 | 78,172 | 141,537 | (5,835) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | 20,906 | 20,906 | |||
Other comprehensive income (loss) | 5,352 | 5,352 | |||
Issuance of common stock | 82,470 | 2,362 | 80,108 | ||
Issuance of replacement options/restricted stock | 870 | 870 | |||
Stock repurchased | (3,146) | (86) | (3,060) | ||
Stock options exercised | 688 | 37 | 651 | ||
Vesting of restricted stock | 22 | (22) | |||
Equity-based compensation | 1,541 | 16 | 1,525 | ||
Cash dividends paid | (10,965) | (10,965) | |||
Ending Balance at Dec. 31, 2019 | $ 320,258 | $ 11,019 | $ 158,244 | $ 151,478 | $ (483) |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Stockholders' Equity [Abstract] | |||
Stock issued during period (in shares) | 2,361,686 | ||
Stock repurchased during period (in shares) | 85,868 | ||
Stock options exercised (in shares) | 37,104 | 35,310 | 4,950 |
Vesting of restricted stock (in shares) | 21,747 | 12,712 | 8,116 |
Equity based compensation (in shares) | 38,281 | 34,480 | 27,546 |
Cash dividends paid (in dollars per share) | $ 1.04 | $ 1 | $ 0.97 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ 20,906 | $ 22,579 | $ 15,249 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Provision for (recovery of) loan losses | 456 | (103) | 1,016 |
Depreciation | 2,064 | 1,775 | 1,877 |
Net accretion of acquisition accounting adjustments | (3,387) | (1,288) | (2,114) |
Core deposit intangible amortization | 1,398 | 265 | 528 |
Net amortization of securities | 1,100 | 1,617 | 1,831 |
Net gain on sale or call of securities available for sale | (274) | (81) | (812) |
Net change in fair value of equity securities | (333) | (42) | 0 |
Gain on sale of loans held for sale | (2,439) | (1,862) | (1,765) |
Proceeds from sales of loans held for sale | 103,760 | 80,600 | 92,733 |
Originations of loans held for sale | (102,708) | (77,739) | (86,611) |
Net (gain) loss on other real estate owned | (120) | 14 | 22 |
Valuation allowance on other real estate owned | 68 | 30 | 143 |
Net (gain) loss on sale of premises and equipment | 427 | (60) | (344) |
Equity based compensation expense | 1,541 | 1,196 | 1,016 |
Net change in bank owned life insurance | (630) | (481) | (297) |
Deferred income tax expense | 1,068 | 556 | 3,471 |
Net change in interest receivable | 980 | (218) | (148) |
Net change in other assets | 10,157 | (100) | (379) |
Net change in interest payable | (574) | 121 | 51 |
Net change in other liabilities | (780) | 723 | 284 |
Net cash provided by operating activities | 32,680 | 27,502 | 25,751 |
Cash Flows from Investing Activities: | |||
Proceeds from sales of equity securities | 445 | 431 | 0 |
Proceeds from sales of securities available for sale | 29,878 | 57,607 | 55,903 |
Proceeds from maturities, calls and paydowns of securities available for sale | 123,915 | 30,607 | 52,397 |
Purchases of securities available for sale | (155,746) | (106,575) | (84,931) |
Net change in restricted stock | (795) | ||
Net change in restricted stock | 863 | 114 | |
Net increase in loans | (26,257) | (21,256) | (170,515) |
Proceeds from sale of premises and equipment | 0 | 234 | 653 |
Purchases of premises and equipment | (3,555) | (2,723) | (2,648) |
Proceeds from sales of other real estate owned | 1,289 | 911 | 1,171 |
Cash paid in bank acquisition | (27) | 0 | 0 |
Cash acquired in bank acquisition | 26,283 | 0 | 0 |
Net cash used in investing activities | (4,570) | (39,901) | (147,856) |
Cash Flows from Financing Activities: | |||
Net change in demand, money market, and savings deposits | 41,968 | 53,202 | 159,283 |
Net change in time deposits | (30,899) | (21,701) | 4,803 |
Net change in customer repurchase agreements | 5,232 | 24,517 | (28,440) |
Net change in other short-term borrowings | (14,883) | (24,000) | |
Net change in other short-term borrowings | 4,000 | ||
Net change in long-term borrowings | (778) | 0 | (10,000) |
Common stock dividends paid | (10,965) | (8,702) | (8,384) |
Repurchase of common stock | (3,146) | 0 | 0 |
Proceeds from exercise of stock options | 688 | 861 | 113 |
Net cash (used in) provided by financing activities | (12,783) | 24,177 | 121,375 |
Net Increase (Decrease) in Cash and Cash Equivalents | 15,327 | 11,778 | (730) |
Cash and Cash Equivalents at Beginning of Period | 64,255 | 52,477 | 53,207 |
Cash and Cash Equivalents at End of Period | $ 79,582 | $ 64,255 | $ 52,477 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies Nature of Operations and Consolidation 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 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, accounting for acquired loans with specific credit-related deterioration, and the valuation of deferred tax assets and liabilities. In April 2006, AMNB Statutory Trust I, a Delaware statutory trust (the "AMNB Trust") and an unconsolidated wholly owned subsidiary of the Company, was formed for the purpose of issuing preferred securities (the "Trust Preferred Securities") in a private placement pursuant to an applicable exemption from registration. Proceeds from the securities were used to fund the acquisition of Community First Financial Corporation ("Community First") which occurred in April 2006. In July 2011, and in connection with its acquisition of MidCarolina Financial Corporation ("MidCarolina"), the Company assumed liabilities of MidCarolina Trust I and MidCarolina Trust II, two separate unconsolidated Delaware statutory trusts (the "MidCarolina Trusts"), which were also formed for the purpose of issuing preferred securities. Refer to Note 14 for further details concerning these entities. 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 14. Cash and Cash Equivalents Cash includes cash on hand, cash with correspondent banks, and cash on deposit at the Federal Reserve Bank of Richmond. Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less and are subject to an insignificant risk of change in value. Cash and cash equivalents are carried at cost. Interest-bearing Deposits in Other Banks Interest-bearing deposits in other banks mature within one year and are carried at cost. Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as "held to maturity" and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Debt securities not classified as held to maturity or trading are classified as "available for sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company does not currently have any securities in held to maturity or trading and has no plans to add any to either category. Management evaluates securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and, (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities with readily determinable fair values that are not held for trading are carried at fair value with the unrealized gains and losses included in noninterest income. Due to the nature and restrictions placed on the Company's investment in common stock of the Federal Home Loan Bank of Atlanta ("FHLB") and the Federal Reserve Bank of Richmond, these securities have been classified as restricted equity securities and carried at cost. Loans Held for Sale Secondary market mortgage loans are designated as held for sale at the time of their origination. These loans are pre-sold with servicing released and the Company does not retain any interest after the loans are sold. These loans consist primarily of fixed-rate, single-family residential mortgage loans which meet the underwriting characteristics of certain government-sponsored enterprises (conforming loans). In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be committed, thus limiting interest rate risk. Loans held for sale are carried at fair value. Gains on sales of loans are recognized at the loan closing date and are included in noninterest income. Derivative Loan Commitments The Company enters into mortgage loan commitments whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the consolidated balance sheets with net changes in their fair values recorded in other expenses. The period of time between issuance of a loan commitment and sale of the loan generally ranges from 30 to 60 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery contracts, by committing to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed the interest rate risk on the loan. As a result, the Company is not generally exposed to significant losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. The fair value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the estimated value of the underlying assets while taking into consideration the probability that the loan will be funded. Loans The Company makes mortgage, commercial, and consumer loans. A substantial portion of the loan portfolio is secured by real estate. The ability of the Company's debtors to honor their contracts is dependent upon the real estate market and general economic conditions in the Company's market area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off, generally are reported at their outstanding unpaid principal balance adjusted for the allowance for loan losses, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is generally discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Loans are typically charged off when the loan is 120 days past due, unless secured and in process of collection. Loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered past due when a payment of principal or interest or both is due but not paid. Management closely monitors past due loans in timeframes of 30-59 days, 60-89 days, and 90 or more days past due. These policies apply to all loan portfolio classes and segments. Substandard and doubtful risk graded commercial, commercial real estate, and construction loans are reviewed for impairment. All troubled debt restructurings ("TDRs"), regardless of dollar amount, are also evaluated for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment and establishing a specific allowance include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Generally, large groups of smaller balance homogeneous loans (residential real estate and consumer loans) are collectively evaluated for impairment. The Company's policy for recognizing interest income on impaired loans is consistent with its nonaccrual policy. The Company's loan portfolio is organized by major segment. These include: commercial, commercial real estate, residential real estate and consumer loans. Each segment has particular risk characteristics that are specific to the borrower and the generic category of credit. Commercial loan repayments are highly dependent on cash flows associated with the underlying business and its profitability. They can also be impacted by changes in collateral values. Commercial real estate loans share the same general risk characteristics as commercial loans, but are often more dependent on the value of the underlying real estate collateral and, when construction is involved, the ultimate completion of and sale of the project. Residential real estate loans are generally dependent on the value of collateral and the credit worthiness of the underlying borrower. Consumer loans are very similar in risk characteristics to residential real estate. In connection with mergers, certain loans were acquired which exhibited deteriorated credit quality since origination and for which the Company does not expect to collect all contractual payments. These purchased credit impaired loans are accounted for in accordance with Accounting Standards Codification ("ASC") 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality , and are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan's or pool's contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. The Company has $1,058,000 in loans classified as TDRs as of December 31, 2019 and $1,090,000 as of December 31, 2018 . Allowance for Loan Losses The purpose of the allowance for loan losses ("ALLL") is to provide for probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses and by recoveries of previously charged-off loans. Loan charge-offs decrease the allowance. The goal of the Company is to maintain an appropriate, systematic, and consistently applied process to determine the amounts of the ALLL and the provision for loan loss expense. The Company uses certain practices to manage its credit risk. These practices include (1) appropriate lending limits for loan officers, (2) a loan approval process, (3) careful underwriting of loan requests, including analysis of borrowers, cash flows, collateral, and market risks, (4) regular monitoring of the portfolio, including diversification by type and geography, (5) review of loans by the Loan Review department, which operates independently of loan production (the Loan Review function consists of a co-sourced arrangement using both internal personnel and external vendors to provide the Company with a more robust review function of the loan portfolio), (6) regular meetings of the Credit Committees to discuss portfolio and policy changes and make decisions on large or unusual loan requests, and (7) regular meetings of the Asset Quality Committee which reviews the status of individual loans. Risk grades are assigned as part of the loan origination process. From time to time risk grades may be modified as warranted by the facts and circumstances surrounding the credit. Calculation and analysis of the allowance for loan losses is prepared quarterly by the Finance Department. The Company's Credit Committee, Risk and Compliance Committee, Audit Committee, and the Board of Directors review the allowance for adequacy. The Company's allowance for loan losses has two basic components: the formula allowance and the specific allowance. Each of these components is determined based upon estimates and judgments. The formula allowance uses historical loss experience as an indicator of future losses, along with various qualitative factors, including levels and trends in delinquencies, nonaccrual loans, charge-offs and recoveries, trends in volume and terms of loans, effects of changes in underwriting standards, experience of lending staff, economic conditions, and portfolio concentrations. In the formula allowance for commercial and commercial real estate loans, the historical loss rate is combined with the qualitative factors, resulting in an adjusted loss factor for each risk-grade category of loans. The period-end balances for each loan risk-grade category are multiplied by the adjusted loss factor. Allowance calculations for consumer loans are calculated based on historical losses for each product category without regard to risk grade. This loss rate is combined with qualitative factors resulting in an adjusted loss factor for each product category. The specific allowance uses various techniques to arrive at an estimate of loss for specifically identified impaired loans. These include: • The present value of expected future cash flows discounted at the loan's effective interest rate. The effective interest rate on a loan is the rate of return implicit in the loan (that is, the contractual interest rate adjusted for any net deferred loan fees or costs and any premium or discount existing at the origination or acquisition of the loan); • The loan's observable market price, or • The fair value of the collateral, net of estimated costs to dispose, if the loan is collateral dependent. The use of these computed values is inherently subjective and actual losses could be greater or less than the estimates. No single statistic, formula, or measurement determines the adequacy of the allowance. Management makes subjective and complex judgments about matters that are inherently uncertain, and different amounts would be reported under different conditions or using different assumptions. For analytical purposes, management allocates a portion of the allowance to specific loan categories and specific loans. However, the entire allowance is used to absorb credit losses inherent in the loan portfolio, including identified and unidentified losses. The relationships and ratios used in calculating the allowance, including the qualitative factors, may change from period to period as facts and circumstances evolve. Furthermore, management cannot provide assurance that in any particular period the Company will not have sizeable credit losses in relation to the amount reserved. Management may find it necessary to significantly adjust the allowance, considering current factors at the time. Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to thirty-nine years ; leasehold improvements are amortized over the lives of the respective leases or the estimated useful lives of the improvements, whichever is less. Software is generally amortized over three years . Depreciation and amortization are recorded on the straight-line method. Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. Goodwill and Intangible Assets Goodwill is subject to at least an annual assessment for impairment by applying a fair value based test. Additionally, acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives. Intangible assets related to branch transactions continued to amortize. The cost of purchased deposit relationships and other intangible assets, based on independent valuation, are being amortized over their estimated lives ranging from eight to ten years. The Company records as goodwill the excess of 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 during the years ended December 31, 2019 , 2018 , or 2017 . Trust Assets Securities and other property held by the trust and investment services segment in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. Other Real Estate Owned OREO represents real estate that has been acquired through loan foreclosures or deeds received in lieu of loan payments. Generally, such properties are appraised at the time acquired, and are recorded at fair value less estimated selling costs. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in noninterest expense. Bank Owned Life Insurance In connection with mergers, the Company has acquired bank owned life insurance ("BOLI"). The asset is reflected as the cash surrender value of the policies as provided by the insurer on a monthly basis. Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company uses the balance sheet method to account for deferred income tax assets and liabilities. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company had no liability for unrecognized tax benefits as of December 31, 2019 and 2018 . Stock-Based Compensation Stock compensation accounting guidance ASC 718, Compensation - Stock Compensation , requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees' service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company's common stock at the date of grant is used for restricted stock awards. Earnings Per Common Share Basic earnings per common share represent income available to common shareholders divided by the average number of common shares outstanding during the period. Diluted earnings per common share reflect the impact of additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company consist solely of outstanding stock options, and are determined using the treasury method. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. Comprehensive Income Comprehensive income is shown in a two statement approach; the first statement presents total net income and its components followed by a second statement that presents all the components of other comprehensive income which include unrealized gains and losses on available for sale securities, unrealized gains and losses on cash flow hedges, and changes in the funded status of the defined benefit postretirement plan. In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("AOCI") . The Company early adopted this new standard as of December 31, 2017. ASU 2018-02 requires reclassification from AOCI to retained earnings for "stranded" tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. The amount of this reclassification in 2017 was $545,000 and is reflected in the Consolidated Statements of Changes in Shareholders' equity. Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred, and were $473,000 , $365,000 , and $352,000 in 2019 , 2018 , and 2017 , respectively. Mergers and Acquisitions Business combinations are accounted for under ASC 805, Business Combinations , using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company identifies the acquirer and the closing date and applies applicable recognition principles and conditions. Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants and advertising costs. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities is recognized in accordance with other applicable GAAP. These acquisition-related costs have been and will be included within the consolidated statements of income classified within the noninterest expense caption. Derivative Financial Instruments The Company uses derivatives primarily to manage risk associated with changing interest rates. The Company's derivative financial instruments consist of interest rate swaps that qualify as cash flow hedges of the Company's trust preferred capital notes. The Company recognizes derivative financial instruments at fair value as either an other asset or other liability in the consolidated balance sheets. The effective portion of the gain or loss on the Company's cash flow hedges is reported as a component of other comprehensive income, net of deferred income taxes, and is reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. Reclassifications Certain reclassifications have been made in prior years financial statements to conform to classifications used in the current year. There were no material reclassifications. Adoption of New Accounting Standards On January 1, 2019, the Company adopted 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 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 |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 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 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 2,960 Core deposit intangible 8,200 Other real estate owned 1,442 Banked owned life insurance 8,246 Other assets 14,244 Total assets 555,717 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 43,120 Goodwill resulting from merger with HomeTown $ 40,130 The following table details the changes in fair value of net assets acquired and liabilities assumed from the amounts reported in the Form 10-Q for the quarterly period ended September 30, 2019 (dollars in thousands): Goodwill at September 30, 2019 $ 40,761 Effect of adjustments to deferred income taxes (631 ) Goodwill at December 31, 2019 $ 40,130 The decrease in goodwill made during the fourth quarter of 2019 was due to a revaluation of deferred income taxes after the filing of HomeTown's final income tax return. 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 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 year ended December 31, 2019 , the Company incurred $11.8 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 $0.6 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 Years Ended December 31, 2019 2018 Total revenues (1) $ 95,178 $ 98,232 Net income $ 29,841 $ 27,974 Earnings per share $ 2.70 $ 2.52 (1) Includes net interest income and noninterest income. |
Restrictions on Cash
Restrictions on Cash | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash | Restrictions on Cash The Company is a member of the Federal Reserve System and is required to maintain certain levels of its cash and cash equivalents as reserves based on regulatory requirements. The gross reserve requirement with the Federal Reserve Bank of Richmond was $14.4 million and $3.0 million at December 31, 2019 and 2018 , respectively. The required balance to be maintained with the Federal Reserve Bank of Richmond was $2.6 million and zero at December 31, 2019 and December 31, 2018 , respectively. The Company maintains cash accounts in other commercial banks. The amount on deposit with correspondent institutions at December 31, 2019 exceeded the insurance limits of the Federal Deposit Insurance Corporation by $678,000 . |
Securities
Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Securities The amortized cost and estimated fair value of investments in securities at December 31, 2019 and 2018 were as follows (dollars in thousands): December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities available for sale: U.S. Treasury $ 14,992 $ — $ 5 $ 14,987 Federal agencies and GSEs 126,829 1,504 219 128,114 Mortgage-backed and CMOs 182,732 1,901 393 184,240 State and municipal 41,427 769 42 42,154 Corporate 9,514 186 — 9,700 Total securities available for sale $ 375,494 $ 4,360 $ 659 $ 379,195 The Company adopted ASU 2016-01 effective January 1, 2018 and had no equity securities at December 31, 2019 and recognized in income $333,000 of unrealized holding gains during 2019 . During the year ended December 31, 2019 , the Company sold $445,000 in equity securities at fair value. December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value 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 The amortized cost and estimated fair value of investments in debt securities at December 31, 2019 , by contractual maturity, are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because mortgage-backed securities have both known principal repayment terms as well as unknown principal repayments due to potential borrower pre-payments, it is difficult to accurately predict the final maturity of these investments. Mortgage-backed securities are shown separately (dollars in thousands): Available for Sale Amortized Cost Fair Value Due in one year or less $ 41,234 $ 41,207 Due after one year through five years 51,039 51,814 Due after five years through ten years 56,537 57,763 Due after ten years 43,952 44,171 Mortgage-backed and CMOs 182,732 184,240 $ 375,494 $ 379,195 Gross realized gains and losses on and the proceeds from the sale of securities available for sale were as follows (dollars in thousands): For the Years Ended December 31, 2019 2018 2017 Gross realized gains $ 328 $ 342 $ 825 Gross realized losses (54 ) (261 ) (13 ) Proceeds from sales of securities 29,878 57,607 55,903 Securities with a carrying value of approximately $ 179,852,000 and $143,064,000 at December 31, 2019 and 2018 , respectively, were pledged to secure public deposits, repurchase agreements, and for other purposes as required by law. FHLB letters of credit were used as additional collateral in the amounts of $170,000,000 at December 31, 2019 and $190,250,000 at December 31, 2018 . 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 December 31, 2019 . The reference point for determining when securities are in an unrealized loss position is month-end. Therefore, it is possible that a security's market value exceeded its amortized cost on other days during the past twelve-month period. Available for sale securities that have been in a continuous unrealized loss position are as follows (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury $ 14,987 $ 5 $ 14,987 $ 5 $ — $ — Federal agencies and GSEs 69,095 219 31,779 44 37,316 175 Mortgage-backed and CMOs 89,391 393 66,324 266 23,067 127 State and municipal 4,262 42 3,108 37 1,154 5 Total $ 177,735 $ 659 $ 116,198 $ 352 $ 61,537 $ 307 U.S. Treasury: The unrealized loss associated with one U.S. Treasury bill is due to normal market fluctuations. The contractual cash flows of this investment are guaranteed by the U.S. Government. Accordingly, it is expected that this security would not be settled at a price less than the amortized cost basis of the Company's investment. Because the decline in fair 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 this investment to be other-than-temporarily impaired at December 31, 2019 . Federal agencies and GSEs: The unrealized losses on the Company's investment in 26 government sponsored entities ("GSEs") were caused by interest rate increases. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2019 . Mortgage-backed securities: The unrealized losses on the Company's investment in 32 GSE mortgage-backed securities were caused by interest rate increases. Fifteen 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 bases of the Company's investments. Because the decline in fair 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 bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2019 . Collateralized Mortgage Obligations: The unrealized loss associated with one private GSE collateralized mortgage obligation ("CMO") is due to normal market fluctuations. This one security has been in an unrealized loss position for 12 months or more. The contractual cash flows of this investment are guaranteed by an agency of the U.S. Government. Accordingly, it is expected that this security would not be settled at a price less than the amortized cost basis of the Company's investment. Because the decline in fair 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 this investment to be other-than-temporarily impaired at December 31, 2019 . State and municipal securities : The unrealized losses on six state and municipal securities were caused by interest rate increases and not credit deterioration. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at December 31, 2019 . Due to restrictions placed upon the Bank's common stock investment in the Federal Reserve Bank of Richmond and FHLB, these securities have been classified as restricted equity securities and carried at cost. These restricted securities are not subject to the investment security classifications and are included as a separate line item on the Company's consolidated balance sheet. 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 Federal Reserve Bank of Richmond requires the Bank to maintain stock with a par value equal to 3.0% of its outstanding capital and an additional 3.0% is on call. Restricted equity securities consist of Federal Reserve Bank of Richmond stock in the amount of $6,415,000 and $3,621,000 as of December 31, 2019 and 2018 , respectively, and FHLB stock in the amount of $2,215,000 and $1,626,000 as of December 31, 2019 and 2018 , respectively. The table below shows gross unrealized losses and fair value, 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 Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss 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-Temporary-Impaired Securities As of December 31, 2019 and 2018 , there were no securities classified as other-than-temporary impaired. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | Loans Loans, excluding loans held for sale, at December 31, 2019 and 2018 were comprised of the following (dollars in thousands): December 31, 2019 2018 Commercial $ 339,077 $ 285,972 Commercial real estate: Construction and land development 137,920 97,240 Commercial real estate 899,199 655,800 Residential real estate: Residential 324,315 209,438 Home equity 119,423 103,933 Consumer 10,881 5,093 Total loans, net of unearned income $ 1,830,815 $ 1,357,476 Net deferred loan (fees) costs included in the above loan categories are $1,197,000 for 2019 and $720,000 for 2018 . Overdraft deposits were reclassified to consumer loans in the amount of $134,000 and $127,000 for 2019 and 2018 , respectively. Acquired Loans The outstanding principal balance and the carrying amount of these loans, including ASC 310-30 loans, included in the consolidated balance sheets at December 31, 2019 and 2018 are as follows (dollars in thousands): 2019 2018 Outstanding principal balance $ 393,618 $ 63,619 Carrying amount 377,130 58,886 The outstanding principal balance and related carrying amount of purchased credit impaired loans, for which the Company applies ASC 310-30 to account for interest earned, at December 31, 2019 and 2018 are as follows (dollars in thousands): 2019 2018 Outstanding principal balance $ 53,600 $ 24,500 Carrying amount 43,028 20,611 The following table presents changes in the accretable yield on purchased credit impaired loans, for which the Company applies ASC 310-30, for the years ended December 31, 2019 , 2018 , and 2017 (dollars in thousands): 2019 2018 2017 Balance at January 1 $ 4,633 $ 4,890 $ 6,103 Additions from merger with HomeTown 4,410 — — Accretion (3,304 ) (2,362 ) (3,117 ) Reclassification from nonaccretable difference 736 956 1,006 Other changes, net 1,418 1,149 898 Balance at December 31 $ 7,893 $ 4,633 $ 4,890 Past Due Loans The following table shows an analysis by portfolio segment of the Company's past due loans at December 31, 2019 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 325 $ 163 $ 52 $ 857 $ 1,397 $ 337,680 $ 339,077 Commercial real estate: Construction and land development 58 — — 11 69 137,851 137,920 Commercial real estate 217 434 — 274 925 898,274 899,199 Residential: Residential 639 260 282 685 1,866 322,449 324,315 Home equity 49 90 27 113 279 119,144 119,423 Consumer 73 13 — 4 90 10,791 10,881 Total $ 1,361 $ 960 $ 361 $ 1,944 $ 4,626 $ 1,826,189 $ 1,830,815 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 December 31, 2019 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 49 $ 49 $ — $ 16 $ 5 Commercial real estate: Construction and land development — — — — — Commercial real estate 502 500 — 424 39 Residential: Residential 611 612 — 652 38 Home equity 41 41 — 45 6 Consumer — — — — — $ 1,203 $ 1,202 $ — $ 1,137 $ 88 With a related allowance recorded: Commercial $ 735 $ 730 $ 204 $ 191 $ 41 Commercial real estate: Construction and land development — — — — — Commercial real estate — — — — — Residential Residential 254 254 26 225 16 Home equity — — — — — Consumer — — — — — $ 989 $ 984 $ 230 $ 416 $ 57 Total: Commercial $ 784 $ 779 $ 204 $ 207 $ 46 Commercial real estate: Construction and land development — — — — — Commercial real estate 502 500 — 424 39 Residential: Residential 865 866 26 877 54 Home equity 41 41 — 45 6 Consumer — — — — — $ 2,192 $ 2,186 $ 230 $ 1,553 $ 145 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 table shows the detail of loans modified as TDRs during the year ended December 31, 2019 , 2018 , and 2017 , included in the impaired loan balances (dollars in thousands): Loans Modified as TDRs for the Year Ended December 31, 2019 Number of Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Home equity — — — Residential real estate 1 207 207 Consumer — — — Total 1 $ 207 $ 207 Loans Modified as TDRs for the Year Ended December 31, 2018 Number of Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Home equity — — — Residential real estate 1 11 11 Consumer — — — Total 1 $ 11 $ 11 Loans Modified as TDRs for the Year Ended December 31, 2017 Number of Pre-Modification Post-Modification Commercial 5 $ 212 $ 212 Commercial real estate — — — Home equity 2 57 57 Residential real estate 1 36 36 Consumer — — — Total 8 $ 305 $ 305 All loans modified as TDRs during the years ended December 31, 2019 , 2018 , and 2017 were structure modifications. The impact on the allowance for loan losses for the residential real estate loan modified as a TDR in 2019 was $24,000 . There was no impact on the allowance for loan losses for the residential real estate loans modified as TDRs in 2018 and 2017 . In 2017 , the impact on the allowance for loan losses for loans modified as TDRs in the commercial and home equity segments was $137,000 and $1,000 , respectively. During the years ended December 31, 2019 and 2018 , the Company had no loans that subsequently defaulted within twelve months of modification. During the year ended December 31, 2017 , there were three commercial loans with a total recorded investment of $109,000 and one residential real estate loan with a recorded investment of $143,000 that defaulted within twelve months of modification. The Company defines default as one or more payments that occur more than 90 days past the due date, charge-off or foreclosure subsequent to modification. Any charge-offs resulting in default were adjusted through the allowance for loan losses. The Company had $161,000 and $112,000 in residential real estate loans in the process of foreclosure and $285,000 and $719,000 in residential OREO at December 31, 2019 and December 31, 2018 , respectively. Risk Ratings The following table shows the Company's loan portfolio broken down by internal risk grading as of December 31, 2019 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Real Estate Residential Real Estate Home Equity Pass $ 328,488 $ 130,694 $ 860,615 $ 316,454 $ 118,960 Special Mention 8,710 4,133 22,117 4,370 — Substandard 1,879 3,093 16,467 3,491 463 Doubtful — — — — — Total $ 339,077 $ 137,920 $ 899,199 $ 324,315 $ 119,423 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 10,877 Nonperforming 4 Total $ 10,881 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 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. 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 Real Estate 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 R
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments | 12 Months Ended |
Dec. 31, 2019 | |
Provision for Loan and Lease Losses [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 for each of the years in the three-year period ended December 31, 2019 , are presented below (dollars in thousands): Years Ended December 31, 2019 2018 2017 Allowance for Loan Losses Balance, beginning of year $ 12,805 $ 13,603 $ 12,801 Provision for (recovery of) loan losses 456 (103 ) 1,016 Charge-offs (333 ) (1,020 ) (690 ) Recoveries 224 325 476 Balance, end of year $ 13,152 $ 12,805 $ 13,603 Years Ended December 31, 2019 2018 2017 Reserve for Unfunded Lending Commitments Balance, beginning of year $ 217 $ 206 $ 203 Provision for unfunded commitments 112 11 3 Charge-offs — — — Balance, end of year $ 329 $ 217 $ 206 The reserve for unfunded loan commitments is included in other liabilities, and the provision for unfunded commitments is included in noninterest expense. The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2019 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Total Allowance for Loan Losses Balance at December 31, 2018 $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Charge-offs (12 ) (6 ) (70 ) (245 ) (333 ) Recoveries 13 9 58 144 224 Provision 119 167 58 112 456 Balance at December 31, 2019 $ 2,657 $ 7,416 $ 3,023 $ 56 $ 13,152 Balance at December 31, 2019: Allowance for Loan Losses Individually evaluated for impairment $ 204 $ — $ 26 $ — $ 230 Collectively evaluated for impairment 2,448 7,386 2,794 56 12,684 Purchased credit impaired loans 5 30 203 — 238 Total $ 2,657 $ 7,416 $ 3,023 $ 56 $ 13,152 Loans Individually evaluated for impairment $ 784 $ 502 $ 906 $ — $ 2,192 Collectively evaluated for impairment 337,312 1,004,296 433,121 10,866 1,785,595 Purchased credit impaired loans 981 32,321 9,711 15 43,028 Total $ 339,077 $ 1,037,119 $ 443,738 $ 10,881 $ 1,830,815 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2018 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Total Allowance for Loan Losses Balance at December 31, 2017 $ 2,413 $ 8,321 $ 2,825 $ 44 $ 13,603 Charge-offs (787 ) (11 ) (86 ) (136 ) (1,020 ) Recoveries 69 10 149 97 325 Provision 842 (1,074 ) 89 40 (103 ) 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 Purchased credit 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 Purchased credit 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, portfolio analysis of smaller balance, homogenous 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. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment Major classifications of premises and equipment at December 31, 2019 and 2018 are summarized as follows (dollars in thousands): December 31, 2019 2018 Land $ 10,421 $ 6,509 Buildings 36,247 28,075 Leasehold improvements 1,469 1,011 Furniture and equipment 17,695 17,521 65,832 53,116 Accumulated depreciation (25,984 ) (26,441 ) Premises and equipment, net $ 39,848 $ 26,675 Depreciation expense for the years ended December 31, 2019 , 2018 , and 2017 was $2,064,000 , $1,775,000 , and $1,877,000 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets The Company records as goodwill the excess of 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 during the years ended December 31, 2019 , 2018 , or 2017 . Core deposit intangibles resulting from the MidCarolina acquisition in July 2011 were $6,556,000 and are being amortized on an accelerated basis over 108 months . Core deposit intangibles resulting from the MainStreet Bankshares, Inc. acquisition 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 twelve months ended December 31, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions 40,130 8,200 Amortization — (1,398 ) Balance at December 31, 2019 $ 84,002 $ 7,728 Goodwill and intangible assets at December 31, 2019 and 2018 are as follow (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2019 Core deposit intangibles $ 19,708 $ (11,980 ) $ 7,728 Goodwill 84,002 — 84,002 December 31, 2018 Core deposit intangibles $ 11,508 $ (10,582 ) $ 926 Goodwill 43,872 — 43,872 Amortization expense of core deposit intangibles for the years ended December 31, 2019 , 2018 , and 2017 was $1,398,000 , $265,000 , and $528,000 , respectively. As of December 31, 2019 , the estimated future amortization expense of core deposit intangibles is as follows (dollars in thousands): Year Amount 2020 $ 1,637 2021 1,464 2022 1,260 2023 1,069 2024 800 2025 and after 1,498 Total $ 7,728 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | Leases On January 1, 2019, the Company adopted ASU No. 2016-02 "Leases (Topic 842)" and all subsequent ASUs that modified Topic 842. The Company elected the prospective application approach provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and, consistent with such elections, did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. As stated in the Company's 2018 Form 10-K, the implementation of the new standard resulted in recognition of a right-of-use asset and lease liability of $4.4 million at the date of adoption, which is related to the Company's lease of premises used in operations. 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 year ended December 31, 2019 (dollars in thousands): December 31, 2019 Lease liabilities $ 5,369 Right-of-use assets $ 5,340 Weighted average remaining lease term 8.17 years Weighted average discount rate 3.21 % Year Ended December 31, 2019 Lease cost Operating lease cost $ 1,040 Short-term lease cost 3 Total lease cost $ 1,043 Cash paid for amounts included in the measurement of lease liabilities $ 1,013 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 December 31, 2019 2020 $ 959 2021 943 2022 920 2023 817 2024 499 2025 and after 2,022 Total undiscounted cash flows $ 6,160 Discount (791 ) Lease liabilities $ 5,369 Lease expense, a component of occupancy and equipment expense, for the years ended December 31, 2019 , 2018 , and 2017 was $1,187,000 , $919,000 , and $961,000 , respectively. The amounts recognized in lease expense include insurance, property taxes, and common area maintenance. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposits | Deposits The aggregate amount of time deposits in denominations of $250,000 or more at December 31, 2019 and 2018 was $200,712,000 and $159,996,000 , respectively. At December 31, 2019 , the scheduled maturities and amounts of certificates of deposits (included in "time" deposits on the consolidated balance sheet) were as follows (dollars in thousands): Year Amount 2020 $ 242,784 2021 127,672 2022 49,426 2023 31,401 2024 16,175 2025 and after 4,312 Total $ 471,770 There were no brokered time deposits at December 31, 2019 or December 31, 2018 . Time deposits through the Certificate of Deposit Account Registry Service ("CDARS") program totaled $14,864,000 at December 31, 2019 compared to $22,431,000 at December 31, 2018 . Deposits through the CDARS program are generated from major customers with substantial relationships with the Bank. |
Short-term Borrowings
Short-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Short-term Borrowings | Short-term Borrowings Short-term borrowings consist of customer repurchase agreements, overnight borrowings from the FHLB, federal funds purchased, and a promissory note. The Company has federal funds lines of credit established with one correspondent bank in the amount of $15,000,000 and another correspondent bank in the amount of $10,000,000 , and additionally, has access to the Federal Reserve Bank of Richmond's discount window. On August 21, 2019, the Company secured a $3,000,000 line of credit with a regional commercial bank at 0.25% under Prime maturing August 21, 2020. There were no outstanding borrowings on this line at December 31, 2019. The Company paid $4,000 in interest on this line during 2019. Customer repurchase agreements are collateralized by securities of the U.S. Government, its agencies or GSEs. They mature daily. The interest rates are generally fixed but 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. Short-term borrowings consisted solely of the following at December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 December 31, 2018 Amount Weighted Average Rate Amount Weighted Average Rate Customer repurchase agreements $ 40,475 1.40 % $ 35,243 1.67 % |
Long-term Borrowings
Long-term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-term Borrowings | Long-term Borrowings Under the terms of its collateral agreement with the FHLB, the Company provides a blanket lien covering all of its residential first mortgage loans, second mortgage loans, home equity lines of credit, and commercial real estate loans. In addition, the Company pledges as collateral its capital stock in the FHLB and deposits with the FHLB. The Company has a line of credit with the FHLB equal to 30% of the Company's assets, subject to the amount of collateral pledged. As of December 31, 2019 , $846,767,000 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 as of December 31, 2019 or 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 December 31, 2019 , the Bank's public deposits totaled $256,984,000 . 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 December 31, 2019 , the Company had $170,000,000 in letters of credit with the FHLB outstanding as well as $126,814,000 in agency, state, and municipal securities 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 $17,000 at December 31, 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 | 12 Months Ended |
Dec. 31, 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 December 31, 2019 , $846,767,000 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 as of December 31, 2019 or 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 December 31, 2019 , the Bank's public deposits totaled $256,984,000 . 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 December 31, 2019 , the Company had $170,000,000 in letters of credit with the FHLB outstanding as well as $126,814,000 in agency, state, and municipal securities 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 $17,000 at December 31, 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 | 12 Months Ended |
Dec. 31, 2019 | |
Trust Preferred Capital Notes [Abstract] | |
Junior Subordinated Debt | Junior Subordinated Debt On April 7, 2006, AMNB Statutory Trust I, a Delaware statutory trust and a wholly owned subsidiary of the Company, issued $20,000,000 of 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. Initially, the securities required quarterly distributions by the trust to the holder of the Trust Preferred Securities at a fixed rate of 6.66% . Effective September 30, 2011, the rate resets quarterly at the three-month LIBOR plus 1.35% . 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 "Trust Preferred Capital Notes"), issued pursuant to a junior subordinated debenture entered into between the Company and Wilmington Trust Company, as trustee. The proceeds of the Trust Preferred Securities were used to fund the cash portion of the merger consideration to the former shareholders of Community First in connection with the Company's acquisition of that company, and for general corporate purposes. On July 1, 2011, in connection with the MidCarolina merger, the Company assumed $8,764,000 in junior subordinated debentures to 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 are 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 (dollars in thousands): Principal Amount As of December 31, Issuing Entity Date Issued Interest Rate Maturity Date 2019 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 4,433 4,377 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,977 2,931 $ 28,029 $ 27,927 The principal amounts reflected for the MidCarolina Trusts as of December 31, 2019 and 2018 , are net of fair value marks of $722,000 and $632,000 , respectively. The original fair value marks of $1,197,000 and $1,021,000 were recorded as a result of the merger with 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 | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Financial Instruments and Hedging Activities | Derivative Financial Instruments and Hedging Activities The Company uses derivative financial instruments ("derivatives") primarily to manage risks 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 the Company's consolidated statements of income. (Dollars in thousands) December 31, 2019 Notional Amount Positions Assets Liabilities Cash Collateral Pledged Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 28,500 3 $ — $ 2,658 $ 3,450 (Dollars in thousands) 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 In addition, the Company has commitments to fund certain mortgage loans (interest rate lock commitments) to be sold into the secondary market and forward commitments for the future delivery of mortgage loans to third party investors which are considered derivatives. It is the Company's practice to enter into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of change in interest rates resulting from its commitments to fund the loans. These mortgage banking derivatives are not designated in hedge relationships. |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation The Company's 2018 Stock Incentive 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 year ended December 31, 2019 is as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at December 31, 2018 13,200 $ 21.97 Replacement stock options 40,753 16.63 Granted — — Exercised (37,104 ) 18.53 Forfeited (2,075 ) 16.63 Expired (830 ) 16.63 Outstanding at December 31, 2019 13,944 $ 16.63 4.97 years $ 320 Exercisable at December 31, 2019 13,944 $ 16.63 4.97 years $ 320 The aggregate intrinsic value of stock options in the table above represents the total pre-tax intrinsic value (the amount by which the current fair value of the underlying stock exceeds the exercise price of the option) that would have been received by the option holders had all option holders exercised their options on December 31, 2019 . This amount changes based on changes in the fair value of the Company's common stock. The total proceeds of the in-the-money options exercised during the years ended December 31, 2019 , 2018 , and 2017 were $688,000 , $861,000 , and $113,000 , respectively. Total intrinsic value of options exercised during the years ended December 31, 2019 , 2018 , and 2017 was $616,000 , $732,000 , and $287,000 , respectively. In connection with the HomeTown acquisition, there was $147,000 in recognized stock compensation expense attributable to outstanding stock options in the year ended December 31, 2019 . There was no recognized stock compensation expense attributable to outstanding stock options in 2018 and 2017 . As of December 31, 2019 , 2018 , and 2017 , there was no unrecognized compensation expense attributable to the outstanding stock options. The following table summarizes information related to stock options outstanding on December 31, 2019 : Options Outstanding and Exercisable Range of Exercise Prices Number of Outstanding Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price $15.01 to $20.00 13,944 4.97 years $ 16.63 No stock options were granted in 2019 , 2018 and 2017 . 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 market value of the 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. Restricted stock granted in 2019 cliff vests at the end of a 36 -month period beginning on the date of grant. Nonvested restricted stock activity for the year ended December 31, 2019 is summarized in the following table: Restricted Stock Shares Weighted Average Grant Date Value Per Share Nonvested at December 31, 2018 52,798 $ 31.71 Replacement stock awards 7,137 27.28 Granted 22,274 32.79 Vested (23,572 ) 23.70 Forfeited (1,366 ) 33.22 Nonvested at December 31, 2019 57,271 34.84 As of December 31, 2019 , 2018 , and 2017 , there was $751,000 , $647,000 , and $538,000 , respectively, in unrecognized compensation cost related to nonvested restricted stock granted under the 2008 Plan and the 2018 Plan. This cost is expected to be recognized over the next 12 to 36 months . The share based compensation expense for nonvested restricted stock was $915,000 , $610,000 , and $532,000 during 2019 , 2018 , and 2017 , respectively. Starting in 2010, the Company began offering its outside directors alternatives with respect to director compensation. The regular monthly board retainer can be received quarterly in the form 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. For 2019 , 12 of the 13 outside directors elected to receive stock in lieu of cash for either all of part of their retainer or meeting fees. Only outside directors receive board fees. The Company issued 17,373 , 15,471 and 13,093 shares and recognized share based compensation expense of $626,000 , $586,000 , and $484,000 during 2019 , 2018 and 2017 , respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The Company files income tax returns in the U.S. federal jurisdiction and the states of Virginia and North Carolina. With few exceptions, the Company is no longer subject to U.S. federal, state, and local income tax examinations by tax authorities for years prior to 2016. The components of the Company's net deferred tax assets were as follows (dollars in thousands): December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,841 $ 2,868 Nonaccrual loan interest 490 460 Other real estate owned valuation allowance 120 69 Deferred compensation 1,184 832 Net unrealized losses on securities — 1,147 Acquisition accounting adjustments 3,670 734 Accrued pension liability 50 36 NOL Carryforward 456 — Net unrealized loss on cash flow hedges 573 180 Other 601 420 Total deferred tax assets 9,985 6,746 Deferred tax liabilities: Depreciation 1,079 759 Accretion of discounts on securities — 24 Core deposit intangibles 1,669 208 Net unrealized gains on securities 799 — Other 574 238 Total deferred tax liabilities 4,121 1,229 Net deferred tax assets $ 5,864 $ 5,517 The provision for income taxes consists of the following (dollars in thousands): Years Ended December 31, 2019 2018 2017 Current tax expense $ 3,793 $ 5,090 $ 7,355 Deferred tax expense 1,068 556 724 Deferred tax asset adjustment for tax rate change — — 2,747 Total income tax expense $ 4,861 $ 5,646 $ 10,826 A reconcilement of the "expected" federal income tax expense to reported income tax expense is as follows (dollars in thousands): Years Ended December 31, 2019 2018 2017 Expected federal tax expense $ 5,411 $ 5,927 $ 9,126 Tax impact from enacted change in tax rate — — 2,747 Nondeductible interest expense 67 69 85 Tax-exempt interest (478 ) (504 ) (949 ) State income taxes 149 337 296 Other, net (288 ) (183 ) (479 ) Total income tax expense $ 4,861 $ 5,646 $ 10,826 Income tax expense for 2017 includes a downward adjustment of net deferred tax assets in the amount of $2,747,000 , recorded as a result of the enactment of the Tax Cuts and Jobs Act on December 22, 2017 (the "Tax Reform Act"). The Tax Reform Act reduced the corporate federal tax rate from 35% to 21% effective January 1, 2018. |
Earnings Per Common Share
Earnings Per Common Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following shows the weighted average number of shares used in computing earnings per common share and the effect on the weighted average number of shares of potentially dilutive common stock. Potentially dilutive common stock had no effect on income available to common shareholders. Nonvested restricted shares are included in the computation of basic earnings per share as the holder is entitled to full shareholder benefits during the vesting period including voting rights and sharing in nonforfeitable dividends. Years Ended December 31, 2019 2018 2017 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic earnings per share 10,531,572 $ 1.99 8,698,014 $ 2.60 8,641,717 $ 1.76 Effect of dilutive securities - stock options 9,765 (0.01 ) 10,448 (0.01 ) 18,911 — Diluted earnings per share 10,541,337 $ 1.98 8,708,462 $ 2.59 8,660,628 $ 1.76 Outstanding stock options on common stock, which were not included in computing diluted earnings per share in 2019 , 2018 , and 2017 because their effects were anti-dilutive, were zero shares for 2019 and 2018, and 330 shares for 2017. |
Off-Balance Sheet Activities
Off-Balance Sheet Activities | 12 Months Ended |
Dec. 31, 2019 | |
Off Balance Sheet Activities [Abstract] | |
Off-Balance Sheet Activities | Off-Balance Sheet Activities The Company is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if applicable, is based on management's credit evaluation of the customer. The Company's exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making commitments as it does for on-balance sheet instruments. The following off-balance sheet financial instruments whose contract amounts represent credit risk were outstanding at December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 2018 Commitments to extend credit $ 557,364 $ 362,586 Standby letters of credit 13,611 15,555 Mortgage loan rate lock commitments 10,791 9,710 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. These commitments generally consist of unused portions of lines of credit issued to customers. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. At December 31, 2019 , the Company had locked-rate commitments to originate mortgage loans amounting to approximately $10,791,000 and loans held for sale of $2,027,000 . Risks arise from the possible inability of counterparties to meet the terms of their contracts, though the Company has never experienced a failure of one of its counterparties to perform. If a loan becomes past due 90 days within 180 days of sale, the Company would be required to repurchase the loan. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Related Party Transactions In the ordinary course of business, loans are granted to executive officers, directors, and their related entities. Management believes that all such loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans to similar, unrelated borrowers, and do not involve more than a normal risk of collectibility or present other unfavorable features. As of December 31, 2019 and 2018 , none of these loans was restructured, past due, or on nonaccrual status. An analysis of these loans for 2019 is as follows (dollars in thousands): Balance at December 31, 2018 $ 18,074 Additions 8,421 Repayments (9,738 ) Reclassifications (1) (7,163 ) Balance at December 31, 2019 $ 9,594 (1) Includes loans to persons no longer affiliated with the Company and therefore not considered related party loans as of period end. Related party deposits totaled $14,741,000 at December 31, 2019 and $18,280,000 at December 31, 2018 . |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Employee Benefit Plans | Employee Benefit Plans Defined Benefit Plan The Company previously maintained a non-contributory defined benefit pension plan which covered substantially all employees who were 21 years of age or older and who had at least one year of service. The Company froze its pension plan to new participants and converted its pension plan to a cash balance plan effective December 31, 2009. Each year, existing participants will receive, with some adjustments, income based on the yield of the 10 year U.S. Treasury Note in December of the preceding year. Information pertaining to the activity in the plan is as follows (dollars in thousands): As of and for the Years Ended December 31, 2019 2018 2017 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 5,812 $ 8,313 $ 7,932 Service cost — — — Interest cost 209 235 237 Actuarial (gain) loss 489 (782 ) 611 Settlement gain (236 ) (120 ) (3 ) Benefits paid (12 ) (1,834 ) (464 ) Projected benefit obligation at end of year 6,262 5,812 8,313 Change in Plan Assets: Fair value of plan assets at beginning of year 5,653 7,556 7,647 Actual return (loss) on plan assets 498 (69 ) 373 Benefits paid (236 ) (1,834 ) (464 ) Fair value of plan assets at end of year 5,915 5,653 7,556 Funded Status at End of Year $ (347 ) $ (159 ) $ (757 ) Amounts Recognized in the Consolidated Balance Sheets Other liabilities $ (347 ) $ (159 ) $ (757 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial loss $ 1,658 $ 1,594 $ 2,886 Deferred income taxes (358 ) (357 ) (606 ) Amount recognized $ 1,300 $ 1,237 $ 2,280 As of and for the Years Ended December 31, 2019 2018 2017 Components of Net Periodic Benefit Cost Service cost $ — $ — $ — Interest cost 209 235 237 Expected return on plan assets (269 ) (353 ) (353 ) Recognized net loss due to settlement 52 540 135 Recognized net actuarial loss 133 272 218 Net periodic benefit cost $ 125 $ 694 $ 237 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net actuarial (gain) loss $ 64 $ (1,291 ) $ 234 Amortization of prior service cost — — — Total recognized in other comprehensive (income) loss $ 64 $ (1,291 ) $ 234 Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss $ 189 $ (597 ) $ 471 The accumulated benefit obligation as of December 31, 2019 , 2018 , and 2017 was $6,262,000 , $5,812,000 , and $8,313,000 , respectively. The rate of compensation increase is no longer applicable since the defined benefit plan was frozen and converted to a cash balance plan. The plan sponsor selected the expected long-term rate-of-return-on-assets assumption in consultation with their investment advisors and actuary. This rate was intended to reflect the average rate of earnings expected to be earned on the funds invested or to be invested to provide plan benefits. Historical performance is reviewed, especially with respect to real rates of return (net of inflation), for the major asset classes held or anticipated to be held by the trust, and for the trust itself. Undue weight is not given to recent experience that may not continue over the measurement period, with higher significance placed on current forecasts of future long-term economic conditions. Because assets are held in a qualified trust, anticipated returns are not reduced for taxes. Further, solely for this purpose, the plan is assumed to continue in force and not terminate during the period in which assets are invested. However, consideration is given to the potential impact of current and future investment policy, cash flow into and out of the trust, and expenses (both investment and non-investment) typically paid from plan assets (to the extent such expenses are not explicitly estimated within periodic cost). Below is a description of the plan's assets. The plan's weighted-average asset allocations by asset category are as follows as of December 31, 2019 and 2018 : Asset Category December 31, 2019 2018 Fixed Income 61.8 % 68.0 % Equity 27.5 % 25.2 % Cash and Accrued Income 10.7 % 6.8 % Total 100.0 % 100.0 % The investment policy and strategy for plan assets can best be described as a growth and income strategy. Diversification is accomplished by limiting the holding of any one equity issuer to no more than 5% of total equities. Exchange traded funds are used to provide diversified exposure to the small capitalization and international equity markets. All fixed income investments are rated as investment grade, with the majority of these assets invested in corporate issues. The assets are managed by the Company's Trust and Investment Services Division. No derivatives are used to manage the assets. Equity securities do not include holdings in the Company. The fair value of the Company's pension plan assets at December 31, 2019 and 2018 , by asset category are as follows (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Asset Category 2019 Level 1 Level 2 Level 3 Cash $ 636 $ 636 $ — $ — Fixed income securities Government sponsored entities 1,648 — 1,648 — Municipal bonds and notes 1,792 — 1,792 — Corporate bonds and notes 212 — 212 — Equity securities U.S. companies 1,385 1,385 — — Foreign companies 242 242 — — $ 5,915 $ 2,263 $ 3,652 $ — 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 Asset Category 2018 Level 1 Level 2 Level 3 Cash $ 359 $ 359 $ — $ — Fixed income securities Government sponsored entities 2,119 — 2,119 — Municipal bonds and notes 1,513 — 1,513 — Corporate bonds and notes 237 — 237 — Equity securities U.S. companies 1,227 1,227 — — Foreign companies 198 198 — — $ 5,653 $ 1,784 $ 3,869 $ — Projected benefit payments for the years 2020 to 2029 are as follows (dollars in thousands): Year Amount 2020 $ 496 2021 637 2022 346 2023 960 2024 242 2025 - 2029 3,031 401(k) Plan The Company maintains a 401(k) plan that covers substantially all full-time employees of the Company. The Company matches a portion of the contribution made by employee participants after at least one year of service. The Company contributed $932,000 , $778,000 , and $763,000 to the 401(k) plan in 2019 , 2018 , and 2017 , respectively. These amounts are included in employee benefits expense for the respective years. Deferred Compensation Arrangements Prior to 2015, the Company maintained deferred compensation agreements with former employees providing for annual payments to each ranging from $25,000 to $50,000 per year for ten years upon their retirement. The liabilities under these agreements are being accrued over the officers' remaining periods of employment so that, on the date of their retirement, the then-present value of the annual payments would have been accrued. As of December 31, 2019 , the Company only had one remaining agreement under which payments are being made to a former officer. The liabilities were $250,000 and $300,000 at December 31, 2019 and 2018 , respectively. The expense for these agreements was $ 0 , $ 0 , and $ 3,000 for the years ended December 31, 2019 , 2018 , and 2017 , respectively. As a result of acquisitions, the Company has various agreements with current and former employees and executives with balances of $5,235,000 and $3,412,000 at December 31, 2019 and 2018 , respectively that accrue through eligibility and are payable upon retirement. Beginning in 2015, certain named executive officers became eligible to participate in a voluntary, nonqualified deferred compensation plan pursuant to which the officers may defer any portion of their annual cash incentive payments. In addition, the Company may make discretionary cash bonus contributions to the deferred compensation plan. Such contributions, if any, are made on an annual basis after the Committee assesses the performance of each of the named executive officers and the Company during the most recently completed fiscal year. The contributions charged to salary expense were $158,000 , $141,000 and $135,000 for the years ended December 31, 2019 , 2018 and 2017 , respectively. Incentive Arrangements The Company maintains a cash incentive compensation plan for officers based on the Company's performance and individual officer goals. The total amount charged to salary expense for this plan was $1,217,000 , $ 1,643,000 , and $ 1,108,000 for the years ended December 31, 2019 , 2018 , and 2017 , respectively. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Fair Value Measurements Determination of Fair Value The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the fair value measurements and disclosures topic of FASB ASC 825, Financial Instruments , the fair value of a financial instrument 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 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). 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 during the period (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Securities available for sale: U.S. Treasury $ 14,987 $ — $ 14,987 $ — Federal agencies and GSEs 128,114 — 128,114 — Mortgage-backed and CMOs 184,240 — 184,240 — State and municipal 42,154 — 42,154 — Corporate 9,700 — 9,700 — Total securities available for sale $ 379,195 $ — $ 379,195 $ — Liabilities: Derivative - cash flow hedges $ 2,658 $ — $ 2,658 $ — Fair Value Measurements at December 31, 2018 Using Balance as of 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 years ended December 31, 2019 and 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 loss associated with impaired loans can be based on either the observable market price of the loan 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). 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 receivables 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 other real estate owned 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 during the period (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 2,027 $ — $ 2,027 $ — Impaired loans, net of valuation allowance 759 — — 759 Other real estate owned, net 1,308 — — 1,308 Fair Value Measurements at December 31, 2018 Using Balance as of 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 December 31, 2019 and 2018 : Assets Valuation Technique Unobservable Input Impaired loans Discounted appraised value Selling cost 8.00 % Impaired loans Discounted cash flow analysis Market rate for borrower (discount rate) 3.25% - 9.80% Other real estate owned Discounted appraised value Selling cost 8.00 % FASB ASC 825, Financial Instruments , requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Additionally, in accordance with ASU 2016-01, which the Company adopted January 1, 2018 on a prospective basis, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The carrying values and estimated fair values of the Company's financial instruments at December 31, 2019 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 79,582 $ 79,582 $ — $ — $ 79,582 Securities available for sale 379,195 — 379,195 — 379,195 Restricted stock 8,630 — 8,630 — 8,630 Loans held for sale 2,027 — 2,027 — 2,027 Loans, net of allowance 1,817,663 — — 1,818,655 1,818,655 Bank owned life insurance 27,817 — 27,817 — 27,817 Accrued interest receivable 6,625 — 6,625 — 6,625 Financial Liabilities: Deposits $ 2,060,547 $ — $ 2,062,823 $ — $ 2,062,823 Repurchase agreements 40,475 — 40,475 — 40,475 Subordinated debt 7,517 — 8,525 — 8,525 Junior subordinated debt 28,029 — — 22,697 22,697 Accrued interest payable 1,213 — 1,213 — 1,213 Derivative - cash flow hedges 2,658 — 2,658 — 2,658 The carrying values and estimated 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 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 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 |
Dividend Restrictions and Regul
Dividend Restrictions and Regulatory Capital | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Dividend Restrictions and Regulatory Capital | 7.00 % Bank 243,449 12.38 137,698 >7.00 $ 127,862 >6.50 % Tier 1 Capital Company 256,583 12.98 118,624 >8.50 Bank 243,449 12.38 167,205 >8.50 157,369 >8.00 Total Capital Company 277,581 14.04 158,166 >10.50 Bank 256,930 13.06 206,547 >10.50 196,712 >10.00 Leverage Capital Company 256,583 10.75 95,514 >4.00 Bank 243,449 10.25 94,972 >4.00 118,715 >5.00 December 31, 2018 Common Equity Tier 1 Company $ 183,579 12.55 % $ 65,843 >6.375 % Bank 198,991 13.68 92,740 >6.375 $ 94,559 >6.50 % Tier 1 Capital Company 211,506 14.46 87,791 >7.875 Bank 198,991 13.68 114,561 >7.875 116,380 >8.00 Total Capital Company 224,528 15.35 117,054 >9.875 Bank 212,013 14.57 143,656 >9.875 145,475 >10.00 Leverage Capital Company 211,506 11.62 72,817 >4.00 Bank 198,991 10.99 72,422 >4.00 90,528 >5.00 ______________________ * Except with regard to the Company's and the Bank's leverage capital ratio, includes the phased-in portion of the Basel III Capital Rule's capital conservation buffer." id="sjs-B4">Dividend Restrictions and Regulatory Capital The approval of the Office of the Comptroller of the Currency is required if the total of all dividends declared by a national bank in any calendar year exceeds the bank's retained net income, as defined, for that year combined with its retained net income for the preceding two calendar years. Under this formula, the Bank can distribute as dividends to the Company, without the approval of the Office of the Comptroller of the Currency, up to $21,768,000 as of December 31, 2019 . Dividends paid by the Bank to the Company are the only significant source of funding for dividends paid by the Company to its shareholders. Federal bank regulators have issued substantially similar guidelines requiring banks and bank holding companies to maintain capital at certain levels. In addition, regulators may from time to time require that a banking organization maintain capital above the minimum levels because of its financial condition or actual or anticipated growth. Failure to meet minimum capital requirements can trigger certain mandatory and discretionary actions by regulators that could have a direct material effect on the Company’s financial condition and results of operations. The Federal Reserve and Office of the Comptroller of the Currency have adopted rules to implement the Basel III capital framework as outlined by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the "Basel III Capital Rules"). The Basel III Capital Rules require banks and bank holding companies to comply with certain minimum capital ratios, plus a "capital conservation buffer," as set forth in the table below. The capital conservation buffer requirement was phased in beginning on January 1, 2016, at 0.625% of risk-weighted assets, and increased by the same amount each year until it was fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress and is applicable to all ratios except the leverage capital ratio. The Company meets the eligibility criteria of a small bank holding company in accordance with the Federal Reserve’s Small Bank Holding Company Policy Statement (the "SBHC Policy Statement"). Under the SBHC Policy Statement, qualifying bank holding companies, such as the Company, have additional flexibility in the amount of debt they can issue and are also exempt from the Basel III Capital Rules. However, the Company does not currently intend to issue a material amount of debt or take any other action that would cause its capital ratios to fall below the minimum ratios required by the Basel III Capital Rules. The SBHC Policy Statement does not apply to the Bank, and the Bank must comply with the Basel III Capital Rules. The Bank must also comply with the capital requirements set forth in the "prompt corrective action" regulations pursuant to Section 38 of the Federal Deposit Insurance Act. The minimum capital ratios for the Bank to be considered "well capitalized" are set forth in the table below. Management believes that as of December 31, 2019 , the Company and Bank meet all capital adequacy requirements to which they are subject. At year-end 2019 and 2018 , the most recent regulatory notifications categorized the Bank as "well capitalized" under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category. Actual and required capital amounts (in thousands) and ratios are presented below at year-end: Actual Required for Capital Adequacy Purposes* To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Common Equity Tier 1 Company $ 228,554 11.56 % $ 88,968 >7.00 % Bank 243,449 12.38 137,698 >7.00 $ 127,862 >6.50 % Tier 1 Capital Company 256,583 12.98 118,624 >8.50 Bank 243,449 12.38 167,205 >8.50 157,369 >8.00 Total Capital Company 277,581 14.04 158,166 >10.50 Bank 256,930 13.06 206,547 >10.50 196,712 >10.00 Leverage Capital Company 256,583 10.75 95,514 >4.00 Bank 243,449 10.25 94,972 >4.00 118,715 >5.00 December 31, 2018 Common Equity Tier 1 Company $ 183,579 12.55 % $ 65,843 >6.375 % Bank 198,991 13.68 92,740 >6.375 $ 94,559 >6.50 % Tier 1 Capital Company 211,506 14.46 87,791 >7.875 Bank 198,991 13.68 114,561 >7.875 116,380 >8.00 Total Capital Company 224,528 15.35 117,054 >9.875 Bank 212,013 14.57 143,656 >9.875 145,475 >10.00 Leverage Capital Company 211,506 11.62 72,817 >4.00 Bank 198,991 10.99 72,422 >4.00 90,528 >5.00 ______________________ * Except with regard to the Company's and the Bank's leverage capital ratio, includes the phased-in portion of the Basel III Capital Rule's capital conservation buffer. |
Segment and Related Information
Segment and Related Information | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Segment and Related Information | Segment and Related Information The Company has two reportable segments, community banking and trust and investment services. Community banking involves making loans to and generating deposits from individuals and businesses. All assets and liabilities of the Company are allocated to community banking. Investment income from securities is also allocated to the community banking segment. Loan fee income, service charges from deposit accounts, and non-deposit fees such as automated teller machine fees and insurance commissions generate additional income for the community banking segment. Trust and investment services include estate planning, trust account administration, investment management, and retail brokerage. Investment management services include purchasing equity, fixed income, and mutual fund investments for customer accounts. The trust and investment services segment receives fees for investment and administrative services. Amounts shown in the "Other" column include activities of the Company which are primarily debt service on Trust Preferred Securities and corporate items. Segment information as of and for the years ended December 31, 2019 , 2018 , and 2017 , is shown in the following table (dollars in thousands): 2019 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 92,404 $ — $ 451 $ — $ 92,855 Interest expense 13,803 — 1,925 — 15,728 Noninterest income 10,230 4,568 372 — 15,170 Income (loss) before income taxes 26,888 2,288 (3,409 ) — 25,767 Net income (loss) 21,858 1,856 (2,808 ) — 20,906 Depreciation and amortization 3,454 8 — — 3,462 Total assets 2,464,860 — 358,601 (344,911 ) 2,478,550 Goodwill 84,002 — — — 84,002 Capital expenditures 3,534 21 — — 3,555 2018 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 68,388 $ — $ 380 $ — $ 68,768 Interest expense 8,272 — 1,402 — 9,674 Noninterest income 8,619 4,579 76 — 13,274 Income (loss) before income taxes 28,000 2,165 (1,940 ) — 28,225 Net income (loss) 22,381 1,731 (1,533 ) — 22,579 Depreciation and amortization 2,030 10 — — 2,040 Total assets 1,853,057 — 251,434 (241,625 ) 1,862,866 Goodwill 43,872 — — — 43,872 Capital expenditures 2,723 — — — 2,723 2017 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 62,697 $ — $ 341 $ — $ 63,038 Interest expense 6,263 — 1,028 — 7,291 Noninterest income 9,224 4,756 247 — 14,227 Income (loss) before income taxes 24,828 2,521 (1,274 ) — 26,075 Net income (loss) 14,456 1,486 (693 ) — 15,249 Depreciation and amortization 2,393 12 — — 2,405 Total assets 1,806,647 — 236,644 (227,213 ) 1,816,078 Goodwill 43,872 — — — 43,872 Capital expenditures 2,637 11 — — 2,648 |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Financial Information | Parent Company Financial Information Condensed Parent Company financial information is as follows (dollars in thousands): December 31, Condensed Balance Sheets 2019 2018 Cash $ 11,127 $ 3,596 Equity securities, at fair value — 1,830 Securities available for sale, at fair value 8,683 6,361 Investment in subsidiaries 337,983 239,413 Due from subsidiaries 134 170 Other assets 674 64 Total Assets $ 358,601 $ 251,434 Subordinated debt $ 7,517 $ — Junior subordinated debt 28,029 27,927 Other liabilities 2,797 965 Shareholders' equity 320,258 222,542 Total Liabilities and Shareholders' Equity $ 358,601 $ 251,434 Years Ended December 31, Condensed Statements of Income 2019 2018 2017 Dividends from subsidiary $ 25,000 $ 11,000 $ 6,000 Other income 823 456 588 Expenses 4,232 2,396 1,862 Income tax benefit (601 ) (407 ) (581 ) Income before equity in undistributed earnings of subsidiary 22,192 9,467 5,307 Equity in undistributed earnings of subsidiary (1,286 ) 13,112 9,942 Net Income $ 20,906 $ 22,579 $ 15,249 Years Ended December 31, Condensed Statements of Cash Flows 2019 2018 2017 Cash Flows from Operating Activities: Net income $ 20,906 $ 22,579 $ 15,249 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale of securities — — (221 ) Equity in (undistributed) distributions of subsidiary 1,286 (13,112 ) (9,942 ) Net change in other assets (382 ) (194 ) 83 Net change in other liabilities (35 ) 136 (82 ) Net cash provided by operating activities 21,775 9,409 5,087 Cash Flows from Investing Activities: Purchases of securities available for sale (2,220 ) — (373 ) Sales of equity securities 445 431 — Sales of securities available for sale — — 500 Cash paid in bank acquisition (27 ) — — Cash acquired in bank acquisition 981 — — Net cash provided by (used in) investing activities (821 ) 431 127 Cash Flows from Financing Activities: Common stock dividends paid (10,965 ) (8,702 ) (8,384 ) Repurchase of common stock (3,146 ) — — Proceeds from exercise of stock options 688 861 113 Net cash used in financing activities (13,423 ) (7,841 ) (8,271 ) Net increase (decrease) in cash and cash equivalents 7,531 1,999 (3,057 ) Cash and cash equivalents at beginning of period 3,596 1,597 4,654 Cash and cash equivalents at end of period $ 11,127 $ 3,596 $ 1,597 |
Concentrations of Credit Risk
Concentrations of Credit Risk | 12 Months Ended |
Dec. 31, 2019 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Credit Risk | Concentrations of Credit Risk Substantially all of the Company's loans are made within its market area, which includes Southern and Central Virginia and the northern portion of Central North Carolina. The ultimate collectibility of the Company's loan portfolio and the ability to realize the value of any underlying collateral, if necessary, are impacted by the economic conditions and real estate values of the market area. Loans secured by real estate were $1,480,857,000 , or 80.9% of the loan portfolio at December 31, 2019 , and $1,066,411,000 , or 78.6% of the loan portfolio at December 31, 2018 . Loans secured by commercial real estate represented the largest portion of loans at $899,199,000 at December 31, 2019 and $655,800,000 at December 31, 2018 , 49.1% and 48.3% , respectively, of total loans. There were no concentrations of loans to any individual, group of individuals, business, or industry that exceeded 10% of total loans at December 31, 2019 or 2018 . |
Supplemental Cash Flow Informat
Supplemental Cash Flow Information | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Supplemental Cash Flow Information | Supplemental Cash Flow Information (dollars in thousands) For the Years Ended December 31, 2019 2018 2017 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 32,505 $ 29,587 $ 28,594 Interest-bearing deposits in other banks 47,077 34,668 23,883 $ 79,582 $ 64,255 $ 52,477 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 15,310 $ 9,553 $ 7,240 Income taxes 4,698 5,056 7,653 Noncash investing and financing activities: Transfer of loans to other real estate owned 234 599 1,233 Transfer from premises and equipment to other assets 445 — — Increase in operating lease right-of-use asset 4,453 — — Increase in operating lease liability 4,453 — — Unrealized gains (losses) on securities available for sale 8,821 (3,290 ) (777 ) Unrealized losses on cash flow hedges (1,854 ) (804 ) — Change in unfunded pension liability (64 ) 1,291 (234 ) 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 2,960 — — 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) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Accumulated Other Comprehensive Income (AOCI) | Accumulated Other Comprehensive Income (Loss) Changes in each component of accumulated other comprehensive income (loss) were as follows (dollars in thousands): Net Unrealized Gains (Losses) on Securities Unrealized Losses on Cash Flow Hedges Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income (Loss) Balance at Balance at December 31, 2016 $ (150 ) $ — $ (1,724 ) $ (1,874 ) Net unrealized gains on securities available for sale, net of tax, $12 23 — — 23 Reclassification adjustment for realized gains on securities, net of tax, $(284) (528 ) — — (528 ) Change in unfunded pension liability, net of tax, $(82) — — (152 ) (152 ) Reclassification of "stranded" tax effects from tax rate change (141 ) — (404 ) (545 ) Balance at December 31, 2017 (796 ) — (2,280 ) (3,076 ) Net unrealized losses on securities available for sale, net of tax, $(745) (2,464 ) — — (2,464 ) Reclassification adjustment for realized gains on securities, net of tax, $(18) (63 ) — — (63 ) Net unrealized losses on cash flow hedges, net of tax, $(180) — (624 ) — (624 ) Change in unfunded pension liability, net of tax, $249 — — 1,042 1,042 Reclassification for ASU 2016-01 adoption (650 ) — — (650 ) Balance at December 31, 2018 (3,973 ) (624 ) (1,238 ) (5,835 ) Net unrealized gains on securities available for sale, net of tax, $2,005 7,090 — — 7,090 Reclassification adjustment for realized gains on securities, net of tax, $(59) (215 ) — — (215 ) Net unrealized losses on cash flow hedges, net of tax, $(394) — (1,460 ) — (1,460 ) Change in unfunded pension liability, net of tax, $(1) — — (63 ) (63 ) Balance at December 31, 2019 $ 2,902 $ (2,084 ) $ (1,301 ) $ (483 ) The following table provides information regarding reclassifications out of accumulated other comprehensive income (loss) (dollars in thousands): Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three Years Ending December 31, 2019 Details about AOCI Components Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Years Ended December 31, 2019 2018 2017 Available for sale securities: Realized gain on sale of securities $ 274 $ 81 $ 812 Securities gains, net (59 ) (18 ) (284 ) Income taxes $ 215 $ 63 $ 528 Net of tax Reclassification of "stranded" tax effects from tax rate change — — 141 (1) Reclassification for ASU-2016-01 adoption — 650 — (2) Employee benefit plans: Reclassification of "stranded" tax effects from tax rate change — — 404 (1) Total reclassifications $ 215 $ 713 $ 1,073 ______________________ (1) Reclassification from AOCI to retained earnings for "stranded" tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. (2) Reclassification from AOCI to retained earnings for unrealized holding gains on equity securities due to adoption of ASU 2016-01. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Nature of Operations and Consolidation | Nature of Operations and Consolidation 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 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, accounting for acquired loans with specific credit-related deterioration, and the valuation of deferred tax assets and liabilities. In April 2006, AMNB Statutory Trust I, a Delaware statutory trust (the "AMNB Trust") and an unconsolidated wholly owned subsidiary of the Company, was formed for the purpose of issuing preferred securities (the "Trust Preferred Securities") in a private placement pursuant to an applicable exemption from registration. Proceeds from the securities were used to fund the acquisition of Community First Financial Corporation ("Community First") which occurred in April 2006. In July 2011, and in connection with its acquisition of MidCarolina Financial Corporation ("MidCarolina"), the Company assumed liabilities of MidCarolina Trust I and MidCarolina Trust II, two separate unconsolidated Delaware statutory trusts (the "MidCarolina Trusts"), which were also formed for the purpose of issuing preferred securities. Refer to Note 14 for further details concerning these entities. 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 14. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash includes cash on hand, cash with correspondent banks, and cash on deposit at the Federal Reserve Bank of Richmond. Cash equivalents are short-term, highly liquid investments that are readily convertible to cash with original maturities of three months or less and are subject to an insignificant risk of change in value. Cash and cash equivalents are carried at cost. |
Interest-bearing Deposits in Other Banks | Interest-bearing Deposits in Other Banks Interest-bearing deposits in other banks mature within one year and are carried at cost. |
Securities | Securities Certain debt securities that management has the positive intent and ability to hold to maturity are classified as "held to maturity" and recorded at amortized cost. Trading securities are recorded at fair value with changes in fair value included in earnings. Debt securities not classified as held to maturity or trading are classified as "available for sale" and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company does not currently have any securities in held to maturity or trading and has no plans to add any to either category. Management evaluates securities for other-than-temporary impairment ("OTTI") on at least a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: (1) OTTI related to credit loss, which must be recognized in the income statement and, (2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. Equity securities with readily determinable fair values that are not held for trading are carried at fair value with the unrealized gains and losses included in noninterest income. Due to the nature and restrictions placed on the Company's investment in common stock of the Federal Home Loan Bank of Atlanta ("FHLB") and the Federal Reserve Bank of Richmond, these securities have been classified as restricted equity securities and carried at cost. |
Loans Held for Sale | Loans Held for Sale Secondary market mortgage loans are designated as held for sale at the time of their origination. These loans are pre-sold with servicing released and the Company does not retain any interest after the loans are sold. These loans consist primarily of fixed-rate, single-family residential mortgage loans which meet the underwriting characteristics of certain government-sponsored enterprises (conforming loans). In addition, the Company requires a firm purchase commitment from a permanent investor before a loan can be committed, thus limiting interest rate risk. Loans held for sale are carried at fair value. Gains on sales of loans are recognized at the loan closing date and are included in noninterest income. |
Derivative Loan Commitments | Derivative Loan Commitments The Company enters into mortgage loan commitments whereby the interest rate on the loan is determined prior to funding (rate lock commitments). Mortgage loan commitments are referred to as derivative loan commitments if the loan that will result from exercise of the commitment will be held for sale upon funding. Loan commitments that are derivatives are recognized at fair value on the consolidated balance sheets with net changes in their fair values recorded in other expenses. The period of time between issuance of a loan commitment and sale of the loan generally ranges from 30 to 60 days . The Company protects itself from changes in interest rates through the use of best efforts forward delivery contracts, by committing to sell a loan at the time the borrower commits to an interest rate with the intent that the buyer has assumed the interest rate risk on the loan. As a result, the Company is not generally exposed to significant losses nor will it realize significant gains related to its rate lock commitments due to changes in interest rates. The correlation between the rate lock commitments and the best efforts contracts is very high due to their similarity. The fair value of rate lock commitments and best efforts contracts is not readily ascertainable with precision because rate lock commitments and best efforts contracts are not actively traded in stand-alone markets. The Company determines the fair value of rate lock commitments and best efforts contracts by measuring the change in the estimated value of the underlying assets while taking into consideration the probability that the loan will be funded. |
Loans | Loans The Company makes mortgage, commercial, and consumer loans. A substantial portion of the loan portfolio is secured by real estate. The ability of the Company's debtors to honor their contracts is dependent upon the real estate market and general economic conditions in the Company's market area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off, generally are reported at their outstanding unpaid principal balance adjusted for the allowance for loan losses, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is generally discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Loans are typically charged off when the loan is 120 days past due, unless secured and in process of collection. Loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful. Interest accrued but not collected for loans that are placed on nonaccrual status or charged-off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual status. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. A loan is considered past due when a payment of principal or interest or both is due but not paid. Management closely monitors past due loans in timeframes of 30-59 days, 60-89 days, and 90 or more days past due. These policies apply to all loan portfolio classes and segments. Substandard and doubtful risk graded commercial, commercial real estate, and construction loans are reviewed for impairment. All troubled debt restructurings ("TDRs"), regardless of dollar amount, are also evaluated for impairment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment and establishing a specific allowance include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower's prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, commercial real estate, and construction loans by either the present value of expected future cash flows discounted at the loan's effective interest rate, the loan's obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Generally, large groups of smaller balance homogeneous loans (residential real estate and consumer loans) are collectively evaluated for impairment. The Company's policy for recognizing interest income on impaired loans is consistent with its nonaccrual policy. The Company's loan portfolio is organized by major segment. These include: commercial, commercial real estate, residential real estate and consumer loans. Each segment has particular risk characteristics that are specific to the borrower and the generic category of credit. Commercial loan repayments are highly dependent on cash flows associated with the underlying business and its profitability. They can also be impacted by changes in collateral values. Commercial real estate loans share the same general risk characteristics as commercial loans, but are often more dependent on the value of the underlying real estate collateral and, when construction is involved, the ultimate completion of and sale of the project. Residential real estate loans are generally dependent on the value of collateral and the credit worthiness of the underlying borrower. Consumer loans are very similar in risk characteristics to residential real estate. In connection with mergers, certain loans were acquired which exhibited deteriorated credit quality since origination and for which the Company does not expect to collect all contractual payments. These purchased credit impaired loans are accounted for in accordance with Accounting Standards Codification ("ASC") 310-30, Receivables - Loans and Debt Securities Acquired with Deteriorated Credit Quality , and are recorded at the amount paid, such that there is no carryover of the seller's allowance for loan losses. After acquisition, losses are recognized by an increase in the allowance for loan losses. Such purchased credit impaired loans are accounted for individually or aggregated into pools of loans based on common risk characteristics such as, credit score, loan type, and date of origination. The Company estimates the amount and timing of expected cash flows for each loan or pool, and the expected cash flows in excess of amount paid is recorded as interest income over the remaining life of the loan or pool (accretable yield). The excess of the loan's or pool's contractual principal and interest over expected cash flows is not recorded (nonaccretable difference). Over the life of the loan or pool, expected cash flows continue to be estimated. If the present value of expected cash flows is less than the carrying amount, a loss is recorded as a provision for loan losses. If the present value of expected cash flows is greater than the carrying amount, it is recognized as part of future interest income. |
Troubled Debt Restructurings | Troubled Debt Restructurings In situations where, for economic or legal reasons related to a borrower's financial condition, management may grant a concession to the borrower that it would not otherwise consider, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty early and work with them to modify their loan to more affordable terms before their loan reaches nonaccrual status. These modified terms may include rate reductions, principal forgiveness, payment forbearance and other actions intended to minimize the economic loss and to avoid foreclosure or repossession of the collateral. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. |
Allowance for Loan Losses | Allowance for Loan Losses The purpose of the allowance for loan losses ("ALLL") is to provide for probable losses inherent in the loan portfolio. The allowance is increased by the provision for loan losses and by recoveries of previously charged-off loans. Loan charge-offs decrease the allowance. The goal of the Company is to maintain an appropriate, systematic, and consistently applied process to determine the amounts of the ALLL and the provision for loan loss expense. The Company uses certain practices to manage its credit risk. These practices include (1) appropriate lending limits for loan officers, (2) a loan approval process, (3) careful underwriting of loan requests, including analysis of borrowers, cash flows, collateral, and market risks, (4) regular monitoring of the portfolio, including diversification by type and geography, (5) review of loans by the Loan Review department, which operates independently of loan production (the Loan Review function consists of a co-sourced arrangement using both internal personnel and external vendors to provide the Company with a more robust review function of the loan portfolio), (6) regular meetings of the Credit Committees to discuss portfolio and policy changes and make decisions on large or unusual loan requests, and (7) regular meetings of the Asset Quality Committee which reviews the status of individual loans. Risk grades are assigned as part of the loan origination process. From time to time risk grades may be modified as warranted by the facts and circumstances surrounding the credit. Calculation and analysis of the allowance for loan losses is prepared quarterly by the Finance Department. The Company's Credit Committee, Risk and Compliance Committee, Audit Committee, and the Board of Directors review the allowance for adequacy. The Company's allowance for loan losses has two basic components: the formula allowance and the specific allowance. Each of these components is determined based upon estimates and judgments. The formula allowance uses historical loss experience as an indicator of future losses, along with various qualitative factors, including levels and trends in delinquencies, nonaccrual loans, charge-offs and recoveries, trends in volume and terms of loans, effects of changes in underwriting standards, experience of lending staff, economic conditions, and portfolio concentrations. In the formula allowance for commercial and commercial real estate loans, the historical loss rate is combined with the qualitative factors, resulting in an adjusted loss factor for each risk-grade category of loans. The period-end balances for each loan risk-grade category are multiplied by the adjusted loss factor. Allowance calculations for consumer loans are calculated based on historical losses for each product category without regard to risk grade. This loss rate is combined with qualitative factors resulting in an adjusted loss factor for each product category. The specific allowance uses various techniques to arrive at an estimate of loss for specifically identified impaired loans. These include: • The present value of expected future cash flows discounted at the loan's effective interest rate. The effective interest rate on a loan is the rate of return implicit in the loan (that is, the contractual interest rate adjusted for any net deferred loan fees or costs and any premium or discount existing at the origination or acquisition of the loan); • The loan's observable market price, or • The fair value of the collateral, net of estimated costs to dispose, if the loan is collateral dependent. The use of these computed values is inherently subjective and actual losses could be greater or less than the estimates. No single statistic, formula, or measurement determines the adequacy of the allowance. Management makes subjective and complex judgments about matters that are inherently uncertain, and different amounts would be reported under different conditions or using different assumptions. For analytical purposes, management allocates a portion of the allowance to specific loan categories and specific loans. However, the entire allowance is used to absorb credit losses inherent in the loan portfolio, including identified and unidentified losses. The relationships and ratios used in calculating the allowance, including the qualitative factors, may change from period to period as facts and circumstances evolve. Furthermore, management cannot provide assurance that in any particular period the Company will not have sizeable credit losses in relation to the amount reserved. Management may find it necessary to significantly adjust the allowance, considering current factors at the time. |
Premises and Equipment | Premises and Equipment Land is carried at cost. Premises and equipment are stated at cost, less accumulated depreciation and amortization. Premises and equipment are depreciated over their estimated useful lives ranging from three years to thirty-nine years ; leasehold improvements are amortized over the lives of the respective leases or the estimated useful lives of the improvements, whichever is less. Software is generally amortized over three years . Depreciation and amortization are recorded on the straight-line method. Costs of maintenance and repairs are charged to expense as incurred. Costs of replacing structural parts of major units are considered individually and are expensed or capitalized as the facts dictate. Gains and losses on routine dispositions are reflected in current operations. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill is subject to at least an annual assessment for impairment by applying a fair value based test. Additionally, acquired intangible assets (such as core deposit intangibles) are separately recognized if the benefit of the assets can be sold, transferred, licensed, rented, or exchanged, and amortized over their useful lives. Intangible assets related to branch transactions continued to amortize. The cost of purchased deposit relationships and other intangible assets, based on independent valuation, are being amortized over their estimated lives ranging from eight to ten years. The Company records as goodwill the excess of 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. |
Trust Assets | Trust Assets Securities and other property held by the trust and investment services segment in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying consolidated financial statements. |
Other Real Estate Owned | Other Real Estate Owned OREO represents real estate that has been acquired through loan foreclosures or deeds received in lieu of loan payments. Generally, such properties are appraised at the time acquired, and are recorded at fair value less estimated selling costs. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from operations and changes in the valuation allowance are included in noninterest expense. |
Bank Owned Life Insurance | Bank Owned Life Insurance In connection with mergers, the Company has acquired bank owned life insurance ("BOLI"). The asset is reflected as the cash surrender value of the policies as provided by the insurer on a monthly basis. |
Transfers of Financial Assets | Transfers of Financial Assets Transfers of financial assets are accounted for as sales, when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company – put presumptively beyond reach of the transferor and its creditors, even in bankruptcy or other receivership, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company uses the balance sheet method to account for deferred income tax assets and liabilities. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various balance sheet assets and liabilities and gives current recognition to changes in tax rates and laws. When tax returns are filed, it is highly certain that some positions taken would be sustained upon examination by the taxing authorities, while others are subject to uncertainty about the merits of the position taken or the amount of the position that would be ultimately sustained. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions taken are not offset or aggregated with other positions. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above is reflected as a liability for unrecognized tax benefits in the accompanying consolidated balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. |
Stock-Based Compensation | Stock-Based Compensation Stock compensation accounting guidance ASC 718, Compensation - Stock Compensation , requires that the compensation cost relating to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights, and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees' service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black-Scholes model is used to estimate the fair value of stock options, while the market price of the Company's common stock at the date of grant is used for restricted stock awards. |
Earnings Per Common Share | Earnings Per Common Share Basic earnings per common share represent income available to common shareholders divided by the average number of common shares outstanding during the period. Diluted earnings per common share reflect the impact of additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company consist solely of outstanding stock options, and are determined using the treasury method. Nonvested shares of restricted stock are included in the computation of basic earnings per share because the holder has voting rights and shares in non-forfeitable dividends during the vesting period. |
Comprehensive Income | Comprehensive Income Comprehensive income is shown in a two statement approach; the first statement presents total net income and its components followed by a second statement that presents all the components of other comprehensive income which include unrealized gains and losses on available for sale securities, unrealized gains and losses on cash flow hedges, and changes in the funded status of the defined benefit postretirement plan. In February 2018, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No. 2018-02, Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income ("AOCI") . The Company early adopted this new standard as of December 31, 2017. ASU 2018-02 requires reclassification from AOCI to retained earnings for "stranded" tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. |
Advertising and Marketing Costs | Advertising and Marketing Costs Advertising and marketing costs are expensed as incurred |
Mergers and Acquisitions | Mergers and Acquisitions Business combinations are accounted for under ASC 805, Business Combinations , using the acquisition method of accounting. The acquisition method of accounting requires an acquirer to recognize the assets acquired and the liabilities assumed at the acquisition date measured at their fair values as of that date. To determine the fair values, the Company relies on third party valuations, such as appraisals, or internal valuations based on discounted cash flow analyses or other valuation techniques. Under the acquisition method of accounting, the Company identifies the acquirer and the closing date and applies applicable recognition principles and conditions. Acquisition-related costs are costs the Company incurs to effect a business combination. Those costs include advisory, legal, accounting, valuation, and other professional or consulting fees. Some other examples of costs to the Company include systems conversions, integration planning consultants and advertising costs. The Company accounts for acquisition-related costs as expenses in the periods in which the costs are incurred and the services are received, with one exception. The costs to issue debt or equity securities is recognized in accordance with other applicable GAAP. These acquisition-related costs have been and will be included within the consolidated statements of income classified within the noninterest expense caption. |
Reclassifications | Reclassifications Certain reclassifications have been made in prior years financial statements to conform to classifications used in the current year. |
Adoption of New Accounting Standards and Recent Accounting Pronouncements | Adoption of New Accounting Standards On January 1, 2019, the Company adopted 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 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 the standard 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. For public business entities that qualify as smaller reporting companies under U.S. Securities and Exchange Commission ("SEC") rules, including the Company, the standard is effective for fiscal years, and interim periods within those years, beginning after December 15, 2022. The Company has elected to defer adoption of ASU 2016-13 until January 1, 2023. The Company has implemented a program for the new standard and is running concurrent models with the assistance of an outside vendor. We will update both models quarterly until the required implementation. 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 must 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 does not expect the adoption of ASU 2018-14 to have a material impact 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." This ASU clarifies and improves 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 effective date of each of the amendments depends on the adoption date of ASU 2016-1, ASU 2016-03, and ASU 2017-12. 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 effective date and transition methodology for the amendments in ASU 2019-05 are the same as in ASU 2016-13. The Company is currently assessing the impact that ASU 2019-05 will have on its consolidated financial statements. In November 2019, the FASB issued ASU 2019-11, "Codification Improvements to Topic 326, Financial Instruments - Credit Losses." This ASU addresses issues raised by stakeholders during the implementation of ASU No. 2016-13, "Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments." Among other narrow-scope improvements, the new ASU clarifies guidance around how to report expected recoveries. "Expected recoveries" describes a situation in which an organization recognizes a full or partial write-off of the amortized cost basis of a financial asset, but then later determines that the amount written off, or a portion of that amount, will in fact be recovered. While applying the credit losses standard, stakeholders questioned whether expected recoveries were permitted on assets that had already shown credit deterioration at the time of purchase (also known as PCD assets). In response to this question, the ASU permits organizations to record expected recoveries on PCD assets. In addition to other narrow technical improvements, the ASU also reinforces existing guidance that prohibits organizations from recording negative allowances for available-for-sale debt securities. The ASU includes effective dates and transition requirements that vary depending on whether or not an entity has already adopted ASU 2016-13. The Company is currently assessing the impact that ASU 2019-11 will have on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, "Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes." The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers' application of certain income tax-related guidance. This ASU is part of the FASB's simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, "Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) - Clarifying the Interactions between Topic 321, Topic 323, and Topic 815." The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in the ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin ("SAB") 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, "Financial Instruments - Credit Losses." It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. |
Derivative Financial Instruments and Hedging Activities | The Company uses derivative financial instruments ("derivatives") primarily to manage risks 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 the Company's consolidated statements of income. |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Dec. 31, 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 2,960 Core deposit intangible 8,200 Other real estate owned 1,442 Banked owned life insurance 8,246 Other assets 14,244 Total assets 555,717 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 43,120 Goodwill resulting from merger with HomeTown $ 40,130 |
Schedule of Goodwill | The following table details the changes in fair value of net assets acquired and liabilities assumed from the amounts reported in the Form 10-Q for the quarterly period ended September 30, 2019 (dollars in thousands): Goodwill at September 30, 2019 $ 40,761 Effect of adjustments to deferred income taxes (631 ) Goodwill at December 31, 2019 $ 40,130 The changes in the carrying amount of goodwill and intangibles for the twelve months ended December 31, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions 40,130 8,200 Amortization — (1,398 ) Balance at December 31, 2019 $ 84,002 $ 7,728 |
Schedule of consideration paid, and the fair value of identifiable 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 Years Ended December 31, 2019 2018 Total revenues (1) $ 95,178 $ 98,232 Net income $ 29,841 $ 27,974 Earnings per share $ 2.70 $ 2.52 (1) Includes net interest income and noninterest income. |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair value of investments in securities | The amortized cost and estimated fair value of investments in securities at December 31, 2019 and 2018 were as follows (dollars in thousands): December 31, 2019 Amortized Cost Unrealized Gains Unrealized Losses Fair Value Securities available for sale: U.S. Treasury $ 14,992 $ — $ 5 $ 14,987 Federal agencies and GSEs 126,829 1,504 219 128,114 Mortgage-backed and CMOs 182,732 1,901 393 184,240 State and municipal 41,427 769 42 42,154 Corporate 9,514 186 — 9,700 Total securities available for sale $ 375,494 $ 4,360 $ 659 $ 379,195 The Company adopted ASU 2016-01 effective January 1, 2018 and had no equity securities at December 31, 2019 and recognized in income $333,000 of unrealized holding gains during 2019 . During the year ended December 31, 2019 , the Company sold $445,000 in equity securities at fair value. December 31, 2018 Amortized Cost Unrealized Gains Unrealized Losses Fair Value 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 |
Amortized cost and estimated fair value of investments in securities by contractual maturity | The amortized cost and estimated fair value of investments in debt securities at December 31, 2019 , by contractual maturity, are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Because mortgage-backed securities have both known principal repayment terms as well as unknown principal repayments due to potential borrower pre-payments, it is difficult to accurately predict the final maturity of these investments. Mortgage-backed securities are shown separately (dollars in thousands): Available for Sale Amortized Cost Fair Value Due in one year or less $ 41,234 $ 41,207 Due after one year through five years 51,039 51,814 Due after five years through ten years 56,537 57,763 Due after ten years 43,952 44,171 Mortgage-backed and CMOs 182,732 184,240 $ 375,494 $ 379,195 |
Gross realized gains and losses | Gross realized gains and losses on and the proceeds from the sale of securities available for sale were as follows (dollars in thousands): For the Years Ended December 31, 2019 2018 2017 Gross realized gains $ 328 $ 342 $ 825 Gross realized losses (54 ) (261 ) (13 ) Proceeds from sales of securities 29,878 57,607 55,903 |
Debt securities, available for sale, unrealized loss position | Available for sale securities that have been in a continuous unrealized loss position are as follows (dollars in thousands): Total Less than 12 Months 12 Months or More Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss U.S. Treasury $ 14,987 $ 5 $ 14,987 $ 5 $ — $ — Federal agencies and GSEs 69,095 219 31,779 44 37,316 175 Mortgage-backed and CMOs 89,391 393 66,324 266 23,067 127 State and municipal 4,262 42 3,108 37 1,154 5 Total $ 177,735 $ 659 $ 116,198 $ 352 $ 61,537 $ 307 The table below shows gross unrealized losses and fair value, 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 Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss 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 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of loans, excluding loans held for sale | Loans, excluding loans held for sale, at December 31, 2019 and 2018 were comprised of the following (dollars in thousands): December 31, 2019 2018 Commercial $ 339,077 $ 285,972 Commercial real estate: Construction and land development 137,920 97,240 Commercial real estate 899,199 655,800 Residential real estate: Residential 324,315 209,438 Home equity 119,423 103,933 Consumer 10,881 5,093 Total loans, net of unearned income $ 1,830,815 $ 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 ASC 310-30 loans, included in the consolidated balance sheets at December 31, 2019 and 2018 are as follows (dollars in thousands): 2019 2018 Outstanding principal balance $ 393,618 $ 63,619 Carrying amount 377,130 58,886 The outstanding principal balance and related carrying amount of purchased credit impaired loans, for which the Company applies ASC 310-30 to account for interest earned, at December 31, 2019 and 2018 are as follows (dollars in thousands): 2019 2018 Outstanding principal balance $ 53,600 $ 24,500 Carrying amount 43,028 20,611 |
Schedule of changes in the accretable discount on acquired loans | The following table presents changes in the accretable yield on purchased credit impaired loans, for which the Company applies ASC 310-30, for the years ended December 31, 2019 , 2018 , and 2017 (dollars in thousands): 2019 2018 2017 Balance at January 1 $ 4,633 $ 4,890 $ 6,103 Additions from merger with HomeTown 4,410 — — Accretion (3,304 ) (2,362 ) (3,117 ) Reclassification from nonaccretable difference 736 956 1,006 Other changes, net 1,418 1,149 898 Balance at December 31 $ 7,893 $ 4,633 $ 4,890 |
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 December 31, 2019 (dollars in thousands): 30- 59 Days 60-89 Days 90 Days + Non- Total Current Total Commercial $ 325 $ 163 $ 52 $ 857 $ 1,397 $ 337,680 $ 339,077 Commercial real estate: Construction and land development 58 — — 11 69 137,851 137,920 Commercial real estate 217 434 — 274 925 898,274 899,199 Residential: Residential 639 260 282 685 1,866 322,449 324,315 Home equity 49 90 27 113 279 119,144 119,423 Consumer 73 13 — 4 90 10,791 10,881 Total $ 1,361 $ 960 $ 361 $ 1,944 $ 4,626 $ 1,826,189 $ 1,830,815 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, 2019 (dollars in thousands): Recorded Unpaid Related Average Interest With no related allowance recorded: Commercial $ 49 $ 49 $ — $ 16 $ 5 Commercial real estate: Construction and land development — — — — — Commercial real estate 502 500 — 424 39 Residential: Residential 611 612 — 652 38 Home equity 41 41 — 45 6 Consumer — — — — — $ 1,203 $ 1,202 $ — $ 1,137 $ 88 With a related allowance recorded: Commercial $ 735 $ 730 $ 204 $ 191 $ 41 Commercial real estate: Construction and land development — — — — — Commercial real estate — — — — — Residential Residential 254 254 26 225 16 Home equity — — — — — Consumer — — — — — $ 989 $ 984 $ 230 $ 416 $ 57 Total: Commercial $ 784 $ 779 $ 204 $ 207 $ 46 Commercial real estate: Construction and land development — — — — — Commercial real estate 502 500 — 424 39 Residential: Residential 865 866 26 877 54 Home equity 41 41 — 45 6 Consumer — — — — — $ 2,192 $ 2,186 $ 230 $ 1,553 $ 145 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 |
Schedule of detail of loans modified as troubled debt restructurings | The following table shows the detail of loans modified as TDRs during the year ended December 31, 2019 , 2018 , and 2017 , included in the impaired loan balances (dollars in thousands): Loans Modified as TDRs for the Year Ended December 31, 2019 Number of Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Home equity — — — Residential real estate 1 207 207 Consumer — — — Total 1 $ 207 $ 207 Loans Modified as TDRs for the Year Ended December 31, 2018 Number of Pre-Modification Post-Modification Commercial — $ — $ — Commercial real estate — — — Home equity — — — Residential real estate 1 11 11 Consumer — — — Total 1 $ 11 $ 11 Loans Modified as TDRs for the Year Ended December 31, 2017 Number of Pre-Modification Post-Modification Commercial 5 $ 212 $ 212 Commercial real estate — — — Home equity 2 57 57 Residential real estate 1 36 36 Consumer — — — Total 8 $ 305 $ 305 |
Schedule of primary reason for troubled debt modifications | |
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 December 31, 2019 (dollars in thousands): Commercial and Consumer Credit Exposure Credit Risk Profile by Internally Assigned Grade Commercial Construction and Land Development Commercial Real Estate Residential Real Estate Home Equity Pass $ 328,488 $ 130,694 $ 860,615 $ 316,454 $ 118,960 Special Mention 8,710 4,133 22,117 4,370 — Substandard 1,879 3,093 16,467 3,491 463 Doubtful — — — — — Total $ 339,077 $ 137,920 $ 899,199 $ 324,315 $ 119,423 Consumer Credit Exposure Credit Risk Profile Based on Payment Activity Consumer Performing $ 10,877 Nonperforming 4 Total $ 10,881 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 Real Estate 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) | 12 Months Ended |
Dec. 31, 2019 | |
Provision for Loan and Lease Losses [Abstract] | |
Schedule of changes in the allowance for loan losses | Changes in the allowance for loan losses and the reserve for unfunded lending commitments for each of the years in the three-year period ended December 31, 2019 , are presented below (dollars in thousands): Years Ended December 31, 2019 2018 2017 Allowance for Loan Losses Balance, beginning of year $ 12,805 $ 13,603 $ 12,801 Provision for (recovery of) loan losses 456 (103 ) 1,016 Charge-offs (333 ) (1,020 ) (690 ) Recoveries 224 325 476 Balance, end of year $ 13,152 $ 12,805 $ 13,603 Years Ended December 31, 2019 2018 2017 Reserve for Unfunded Lending Commitments Balance, beginning of year $ 217 $ 206 $ 203 Provision for unfunded commitments 112 11 3 Charge-offs — — — Balance, end of year $ 329 $ 217 $ 206 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2019 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Total Allowance for Loan Losses Balance at December 31, 2018 $ 2,537 $ 7,246 $ 2,977 $ 45 $ 12,805 Charge-offs (12 ) (6 ) (70 ) (245 ) (333 ) Recoveries 13 9 58 144 224 Provision 119 167 58 112 456 Balance at December 31, 2019 $ 2,657 $ 7,416 $ 3,023 $ 56 $ 13,152 Balance at December 31, 2019: Allowance for Loan Losses Individually evaluated for impairment $ 204 $ — $ 26 $ — $ 230 Collectively evaluated for impairment 2,448 7,386 2,794 56 12,684 Purchased credit impaired loans 5 30 203 — 238 Total $ 2,657 $ 7,416 $ 3,023 $ 56 $ 13,152 Loans Individually evaluated for impairment $ 784 $ 502 $ 906 $ — $ 2,192 Collectively evaluated for impairment 337,312 1,004,296 433,121 10,866 1,785,595 Purchased credit impaired loans 981 32,321 9,711 15 43,028 Total $ 339,077 $ 1,037,119 $ 443,738 $ 10,881 $ 1,830,815 The following table presents the Company's allowance for loan losses by portfolio segment and the related loan balance total by segment for the year ended December 31, 2018 (dollars in thousands): Commercial Commercial Real Estate Residential Real Estate Consumer Total Allowance for Loan Losses Balance at December 31, 2017 $ 2,413 $ 8,321 $ 2,825 $ 44 $ 13,603 Charge-offs (787 ) (11 ) (86 ) (136 ) (1,020 ) Recoveries 69 10 149 97 325 Provision 842 (1,074 ) 89 40 (103 ) 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 Purchased credit 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 Purchased credit impaired loans 451 10,299 9,846 15 20,611 Total $ 285,972 $ 753,040 $ 313,371 $ 5,093 $ 1,357,476 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Classifications of premises and equipment | Major classifications of premises and equipment at December 31, 2019 and 2018 are summarized as follows (dollars in thousands): December 31, 2019 2018 Land $ 10,421 $ 6,509 Buildings 36,247 28,075 Leasehold improvements 1,469 1,011 Furniture and equipment 17,695 17,521 65,832 53,116 Accumulated depreciation (25,984 ) (26,441 ) Premises and equipment, net $ 39,848 $ 26,675 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in the carrying amount of goodwill and intangibles | The following table details the changes in fair value of net assets acquired and liabilities assumed from the amounts reported in the Form 10-Q for the quarterly period ended September 30, 2019 (dollars in thousands): Goodwill at September 30, 2019 $ 40,761 Effect of adjustments to deferred income taxes (631 ) Goodwill at December 31, 2019 $ 40,130 The changes in the carrying amount of goodwill and intangibles for the twelve months ended December 31, 2019 , are as follows (dollars in thousands): Goodwill Intangibles Balance at December 31, 2018 $ 43,872 $ 926 Additions 40,130 8,200 Amortization — (1,398 ) Balance at December 31, 2019 $ 84,002 $ 7,728 |
Goodwill and intangible assets | Goodwill and intangible assets at December 31, 2019 and 2018 are as follow (dollars in thousands): Gross Carrying Value Accumulated Amortization Net Carrying Value December 31, 2019 Core deposit intangibles $ 19,708 $ (11,980 ) $ 7,728 Goodwill 84,002 — 84,002 December 31, 2018 Core deposit intangibles $ 11,508 $ (10,582 ) $ 926 Goodwill 43,872 — 43,872 |
Estimated future amortization expense of core deposit intangibles | As of December 31, 2019 , the estimated future amortization expense of core deposit intangibles is as follows (dollars in thousands): Year Amount 2020 $ 1,637 2021 1,464 2022 1,260 2023 1,069 2024 800 2025 and after 1,498 Total $ 7,728 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease information | The following tables present information about the Company's leases as of and for the year ended December 31, 2019 (dollars in thousands): December 31, 2019 Lease liabilities $ 5,369 Right-of-use assets $ 5,340 Weighted average remaining lease term 8.17 years Weighted average discount rate 3.21 % Year Ended December 31, 2019 Lease cost Operating lease cost $ 1,040 Short-term lease cost 3 Total lease cost $ 1,043 Cash paid for amounts included in the measurement of lease liabilities $ 1,013 |
Reconciliation of undiscounted cash flows | 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 December 31, 2019 2020 $ 959 2021 943 2022 920 2023 817 2024 499 2025 and after 2,022 Total undiscounted cash flows $ 6,160 Discount (791 ) Lease liabilities $ 5,369 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Scheduled maturities of certificates of deposits | At December 31, 2019 , the scheduled maturities and amounts of certificates of deposits (included in "time" deposits on the consolidated balance sheet) were as follows (dollars in thousands): Year Amount 2020 $ 242,784 2021 127,672 2022 49,426 2023 31,401 2024 16,175 2025 and after 4,312 Total $ 471,770 |
Short-term Borrowings (Tables)
Short-term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Short-term Debt [Abstract] | |
Schedule of short-term borrowings | Short-term borrowings consisted solely of the following at December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 December 31, 2018 Amount Weighted Average Rate Amount Weighted Average Rate Customer repurchase agreements $ 40,475 1.40 % $ 35,243 1.67 % |
Junior Subordinated Debt (Table
Junior Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Trust Preferred Capital Notes [Abstract] | |
Schedule of junior subordinated debt securities outstanding payable | A description of the junior subordinated debt securities outstanding payable to the trusts is shown below (dollars in thousands): Principal Amount As of December 31, Issuing Entity Date Issued Interest Rate Maturity Date 2019 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 4,433 4,377 MidCarolina Trust II 12/3/2003 Libor plus 2.95% 10/7/2033 2,977 2,931 $ 28,029 $ 27,927 |
Derivative Financial Instrume_2
Derivative Financial Instruments and Hedging Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of cash flow hedges | (Dollars in thousands) December 31, 2019 Notional Amount Positions Assets Liabilities Cash Collateral Pledged Cash flow hedges: Interest rate swaps: Variable-rate to fixed-rate swaps with counterparty $ 28,500 3 $ — $ 2,658 $ 3,450 (Dollars in thousands) 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) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of summary of stock option transactions | A summary of stock option transactions for the year ended December 31, 2019 is as follows: Option Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Aggregate Intrinsic Value ($000) Outstanding at December 31, 2018 13,200 $ 21.97 Replacement stock options 40,753 16.63 Granted — — Exercised (37,104 ) 18.53 Forfeited (2,075 ) 16.63 Expired (830 ) 16.63 Outstanding at December 31, 2019 13,944 $ 16.63 4.97 years $ 320 Exercisable at December 31, 2019 13,944 $ 16.63 4.97 years $ 320 |
Schedule of summary of information related to stock options outstanding | The following table summarizes information related to stock options outstanding on December 31, 2019 : Options Outstanding and Exercisable Range of Exercise Prices Number of Outstanding Options Weighted-Average Remaining Contractual Life Weighted-Average Exercise Price $15.01 to $20.00 13,944 4.97 years $ 16.63 |
Schedule of nonvested restricted stock activity | Nonvested restricted stock activity for the year ended December 31, 2019 is summarized in the following table: Restricted Stock Shares Weighted Average Grant Date Value Per Share Nonvested at December 31, 2018 52,798 $ 31.71 Replacement stock awards 7,137 27.28 Granted 22,274 32.79 Vested (23,572 ) 23.70 Forfeited (1,366 ) 33.22 Nonvested at December 31, 2019 57,271 34.84 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of entity's net deferred tax assets (liabilities) | The components of the Company's net deferred tax assets were as follows (dollars in thousands): December 31, 2019 2018 Deferred tax assets: Allowance for loan losses $ 2,841 $ 2,868 Nonaccrual loan interest 490 460 Other real estate owned valuation allowance 120 69 Deferred compensation 1,184 832 Net unrealized losses on securities — 1,147 Acquisition accounting adjustments 3,670 734 Accrued pension liability 50 36 NOL Carryforward 456 — Net unrealized loss on cash flow hedges 573 180 Other 601 420 Total deferred tax assets 9,985 6,746 Deferred tax liabilities: Depreciation 1,079 759 Accretion of discounts on securities — 24 Core deposit intangibles 1,669 208 Net unrealized gains on securities 799 — Other 574 238 Total deferred tax liabilities 4,121 1,229 Net deferred tax assets $ 5,864 $ 5,517 |
Provision for income taxes | The provision for income taxes consists of the following (dollars in thousands): Years Ended December 31, 2019 2018 2017 Current tax expense $ 3,793 $ 5,090 $ 7,355 Deferred tax expense 1,068 556 724 Deferred tax asset adjustment for tax rate change — — 2,747 Total income tax expense $ 4,861 $ 5,646 $ 10,826 |
Reconciliation of the expected Federal income tax expense to reported income tax expense | A reconcilement of the "expected" federal income tax expense to reported income tax expense is as follows (dollars in thousands): Years Ended December 31, 2019 2018 2017 Expected federal tax expense $ 5,411 $ 5,927 $ 9,126 Tax impact from enacted change in tax rate — — 2,747 Nondeductible interest expense 67 69 85 Tax-exempt interest (478 ) (504 ) (949 ) State income taxes 149 337 296 Other, net (288 ) (183 ) (479 ) Total income tax expense $ 4,861 $ 5,646 $ 10,826 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares used in computing earnings per 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. Years Ended December 31, 2019 2018 2017 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic earnings per share 10,531,572 $ 1.99 8,698,014 $ 2.60 8,641,717 $ 1.76 Effect of dilutive securities - stock options 9,765 (0.01 ) 10,448 (0.01 ) 18,911 — Diluted earnings per share 10,541,337 $ 1.98 8,708,462 $ 2.59 8,660,628 $ 1.76 |
Off-Balance Sheet Activities (T
Off-Balance Sheet Activities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Off Balance Sheet Activities [Abstract] | |
Off-balance sheet financial instruments outstanding | The following off-balance sheet financial instruments whose contract amounts represent credit risk were outstanding at December 31, 2019 and 2018 (dollars in thousands): December 31, 2019 2018 Commitments to extend credit $ 557,364 $ 362,586 Standby letters of credit 13,611 15,555 Mortgage loan rate lock commitments 10,791 9,710 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Activity of loans to related parties | An analysis of these loans for 2019 is as follows (dollars in thousands): Balance at December 31, 2018 $ 18,074 Additions 8,421 Repayments (9,738 ) Reclassifications (1) (7,163 ) Balance at December 31, 2019 $ 9,594 (1) Includes loans to persons no longer affiliated with the Company and therefore not considered related party loans as of period end. |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Defined Benefit Plan [Abstract] | |
Schedule of components of net periodic benefit cost | Information pertaining to the activity in the plan is as follows (dollars in thousands): As of and for the Years Ended December 31, 2019 2018 2017 Change in Benefit Obligation: Projected benefit obligation at beginning of year $ 5,812 $ 8,313 $ 7,932 Service cost — — — Interest cost 209 235 237 Actuarial (gain) loss 489 (782 ) 611 Settlement gain (236 ) (120 ) (3 ) Benefits paid (12 ) (1,834 ) (464 ) Projected benefit obligation at end of year 6,262 5,812 8,313 Change in Plan Assets: Fair value of plan assets at beginning of year 5,653 7,556 7,647 Actual return (loss) on plan assets 498 (69 ) 373 Benefits paid (236 ) (1,834 ) (464 ) Fair value of plan assets at end of year 5,915 5,653 7,556 Funded Status at End of Year $ (347 ) $ (159 ) $ (757 ) Amounts Recognized in the Consolidated Balance Sheets Other liabilities $ (347 ) $ (159 ) $ (757 ) Amounts Recognized in Accumulated Other Comprehensive Loss Net actuarial loss $ 1,658 $ 1,594 $ 2,886 Deferred income taxes (358 ) (357 ) (606 ) Amount recognized $ 1,300 $ 1,237 $ 2,280 As of and for the Years Ended December 31, 2019 2018 2017 Components of Net Periodic Benefit Cost Service cost $ — $ — $ — Interest cost 209 235 237 Expected return on plan assets (269 ) (353 ) (353 ) Recognized net loss due to settlement 52 540 135 Recognized net actuarial loss 133 272 218 Net periodic benefit cost $ 125 $ 694 $ 237 Other Changes in Plan Assets and Benefit Obligations Recognized in Other Comprehensive (Income) Loss Net actuarial (gain) loss $ 64 $ (1,291 ) $ 234 Amortization of prior service cost — — — Total recognized in other comprehensive (income) loss $ 64 $ (1,291 ) $ 234 Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss $ 189 $ (597 ) $ 471 |
Weighted-average asset allocations by asset category | Below is a description of the plan's assets. The plan's weighted-average asset allocations by asset category are as follows as of December 31, 2019 and 2018 : Asset Category December 31, 2019 2018 Fixed Income 61.8 % 68.0 % Equity 27.5 % 25.2 % Cash and Accrued Income 10.7 % 6.8 % Total 100.0 % 100.0 % |
Fair value of pension plan assets by asset category | The fair value of the Company's pension plan assets at December 31, 2019 and 2018 , by asset category are as follows (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Balance at December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Asset Category 2019 Level 1 Level 2 Level 3 Cash $ 636 $ 636 $ — $ — Fixed income securities Government sponsored entities 1,648 — 1,648 — Municipal bonds and notes 1,792 — 1,792 — Corporate bonds and notes 212 — 212 — Equity securities U.S. companies 1,385 1,385 — — Foreign companies 242 242 — — $ 5,915 $ 2,263 $ 3,652 $ — 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 Asset Category 2018 Level 1 Level 2 Level 3 Cash $ 359 $ 359 $ — $ — Fixed income securities Government sponsored entities 2,119 — 2,119 — Municipal bonds and notes 1,513 — 1,513 — Corporate bonds and notes 237 — 237 — Equity securities U.S. companies 1,227 1,227 — — Foreign companies 198 198 — — $ 5,653 $ 1,784 $ 3,869 $ — |
Projected benefit payments | Projected benefit payments for the years 2020 to 2029 are as follows (dollars in thousands): Year Amount 2020 $ 496 2021 637 2022 346 2023 960 2024 242 2025 - 2029 3,031 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value assets and liabilities measured on recurring basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis during the period (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Securities available for sale: U.S. Treasury $ 14,987 $ — $ 14,987 $ — Federal agencies and GSEs 128,114 — 128,114 — Mortgage-backed and CMOs 184,240 — 184,240 — State and municipal 42,154 — 42,154 — Corporate 9,700 — 9,700 — Total securities available for sale $ 379,195 $ — $ 379,195 $ — Liabilities: Derivative - cash flow hedges $ 2,658 $ — $ 2,658 $ — Fair Value Measurements at December 31, 2018 Using Balance as of 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 during the period (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Balance as of December 31, Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Description 2019 Level 1 Level 2 Level 3 Assets: Loans held for sale $ 2,027 $ — $ 2,027 $ — Impaired loans, net of valuation allowance 759 — — 759 Other real estate owned, net 1,308 — — 1,308 Fair Value Measurements at December 31, 2018 Using Balance as of 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 December 31, 2019 and 2018 : Assets Valuation Technique Unobservable Input Impaired loans Discounted appraised value Selling cost 8.00 % Impaired loans Discounted cash flow analysis Market rate for borrower (discount rate) 3.25% - 9.80% Other real estate owned 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 estimated fair values of the Company's financial instruments at December 31, 2019 are as follows (dollars in thousands): Fair Value Measurements at December 31, 2019 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 Financial Assets: Cash and cash equivalents $ 79,582 $ 79,582 $ — $ — $ 79,582 Securities available for sale 379,195 — 379,195 — 379,195 Restricted stock 8,630 — 8,630 — 8,630 Loans held for sale 2,027 — 2,027 — 2,027 Loans, net of allowance 1,817,663 — — 1,818,655 1,818,655 Bank owned life insurance 27,817 — 27,817 — 27,817 Accrued interest receivable 6,625 — 6,625 — 6,625 Financial Liabilities: Deposits $ 2,060,547 $ — $ 2,062,823 $ — $ 2,062,823 Repurchase agreements 40,475 — 40,475 — 40,475 Subordinated debt 7,517 — 8,525 — 8,525 Junior subordinated debt 28,029 — — 22,697 22,697 Accrued interest payable 1,213 — 1,213 — 1,213 Derivative - cash flow hedges 2,658 — 2,658 — 2,658 The carrying values and estimated 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 Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value Balance Level 1 Level 2 Level 3 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 |
Dividend Restrictions and Reg_2
Dividend Restrictions and Regulatory Capital (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | |
Summary information regarding regulatory capital | Actual and required capital amounts (in thousands) and ratios are presented below at year-end: Actual Required for Capital Adequacy Purposes* To Be Well Amount Ratio Amount Ratio Amount Ratio December 31, 2019 Common Equity Tier 1 Company $ 228,554 11.56 % $ 88,968 >7.00 % Bank 243,449 12.38 137,698 >7.00 $ 127,862 >6.50 % Tier 1 Capital Company 256,583 12.98 118,624 >8.50 Bank 243,449 12.38 167,205 >8.50 157,369 >8.00 Total Capital Company 277,581 14.04 158,166 >10.50 Bank 256,930 13.06 206,547 >10.50 196,712 >10.00 Leverage Capital Company 256,583 10.75 95,514 >4.00 Bank 243,449 10.25 94,972 >4.00 118,715 >5.00 December 31, 2018 Common Equity Tier 1 Company $ 183,579 12.55 % $ 65,843 >6.375 % Bank 198,991 13.68 92,740 >6.375 $ 94,559 >6.50 % Tier 1 Capital Company 211,506 14.46 87,791 >7.875 Bank 198,991 13.68 114,561 >7.875 116,380 >8.00 Total Capital Company 224,528 15.35 117,054 >9.875 Bank 212,013 14.57 143,656 >9.875 145,475 >10.00 Leverage Capital Company 211,506 11.62 72,817 >4.00 Bank 198,991 10.99 72,422 >4.00 90,528 >5.00 ______________________ * Except with regard to the Company's and the Bank's leverage capital ratio, includes the phased-in portion of the Basel III Capital Rule's capital conservation buffer. |
Segment and Related Informati_2
Segment and Related Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of segment information | Segment information as of and for the years ended December 31, 2019 , 2018 , and 2017 , is shown in the following table (dollars in thousands): 2019 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 92,404 $ — $ 451 $ — $ 92,855 Interest expense 13,803 — 1,925 — 15,728 Noninterest income 10,230 4,568 372 — 15,170 Income (loss) before income taxes 26,888 2,288 (3,409 ) — 25,767 Net income (loss) 21,858 1,856 (2,808 ) — 20,906 Depreciation and amortization 3,454 8 — — 3,462 Total assets 2,464,860 — 358,601 (344,911 ) 2,478,550 Goodwill 84,002 — — — 84,002 Capital expenditures 3,534 21 — — 3,555 2018 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 68,388 $ — $ 380 $ — $ 68,768 Interest expense 8,272 — 1,402 — 9,674 Noninterest income 8,619 4,579 76 — 13,274 Income (loss) before income taxes 28,000 2,165 (1,940 ) — 28,225 Net income (loss) 22,381 1,731 (1,533 ) — 22,579 Depreciation and amortization 2,030 10 — — 2,040 Total assets 1,853,057 — 251,434 (241,625 ) 1,862,866 Goodwill 43,872 — — — 43,872 Capital expenditures 2,723 — — — 2,723 2017 Community Banking Trust and Investment Services Other Intersegment Eliminations Total Interest income $ 62,697 $ — $ 341 $ — $ 63,038 Interest expense 6,263 — 1,028 — 7,291 Noninterest income 9,224 4,756 247 — 14,227 Income (loss) before income taxes 24,828 2,521 (1,274 ) — 26,075 Net income (loss) 14,456 1,486 (693 ) — 15,249 Depreciation and amortization 2,393 12 — — 2,405 Total assets 1,806,647 — 236,644 (227,213 ) 1,816,078 Goodwill 43,872 — — — 43,872 Capital expenditures 2,637 11 — — 2,648 |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Parent Company financial information is as follows (dollars in thousands): December 31, Condensed Balance Sheets 2019 2018 Cash $ 11,127 $ 3,596 Equity securities, at fair value — 1,830 Securities available for sale, at fair value 8,683 6,361 Investment in subsidiaries 337,983 239,413 Due from subsidiaries 134 170 Other assets 674 64 Total Assets $ 358,601 $ 251,434 Subordinated debt $ 7,517 $ — Junior subordinated debt 28,029 27,927 Other liabilities 2,797 965 Shareholders' equity 320,258 222,542 Total Liabilities and Shareholders' Equity $ 358,601 $ 251,434 |
Condensed Statements of Income | Years Ended December 31, Condensed Statements of Income 2019 2018 2017 Dividends from subsidiary $ 25,000 $ 11,000 $ 6,000 Other income 823 456 588 Expenses 4,232 2,396 1,862 Income tax benefit (601 ) (407 ) (581 ) Income before equity in undistributed earnings of subsidiary 22,192 9,467 5,307 Equity in undistributed earnings of subsidiary (1,286 ) 13,112 9,942 Net Income $ 20,906 $ 22,579 $ 15,249 |
Condensed Statements of Cash Flows | Years Ended December 31, Condensed Statements of Cash Flows 2019 2018 2017 Cash Flows from Operating Activities: Net income $ 20,906 $ 22,579 $ 15,249 Adjustments to reconcile net income to net cash provided by operating activities: Gain on sale of securities — — (221 ) Equity in (undistributed) distributions of subsidiary 1,286 (13,112 ) (9,942 ) Net change in other assets (382 ) (194 ) 83 Net change in other liabilities (35 ) 136 (82 ) Net cash provided by operating activities 21,775 9,409 5,087 Cash Flows from Investing Activities: Purchases of securities available for sale (2,220 ) — (373 ) Sales of equity securities 445 431 — Sales of securities available for sale — — 500 Cash paid in bank acquisition (27 ) — — Cash acquired in bank acquisition 981 — — Net cash provided by (used in) investing activities (821 ) 431 127 Cash Flows from Financing Activities: Common stock dividends paid (10,965 ) (8,702 ) (8,384 ) Repurchase of common stock (3,146 ) — — Proceeds from exercise of stock options 688 861 113 Net cash used in financing activities (13,423 ) (7,841 ) (8,271 ) Net increase (decrease) in cash and cash equivalents 7,531 1,999 (3,057 ) Cash and cash equivalents at beginning of period 3,596 1,597 4,654 Cash and cash equivalents at end of period $ 11,127 $ 3,596 $ 1,597 |
Supplemental Cash Flow Inform_2
Supplemental Cash Flow Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Supplemental Cash Flow Information [Abstract] | |
Schedule of supplemental disclosure of cash flow information | (dollars in thousands) For the Years Ended December 31, 2019 2018 2017 Supplemental Schedule of Cash and Cash Equivalents: Cash and due from banks $ 32,505 $ 29,587 $ 28,594 Interest-bearing deposits in other banks 47,077 34,668 23,883 $ 79,582 $ 64,255 $ 52,477 Supplemental Disclosure of Cash Flow Information: Cash paid for: Interest on deposits and borrowed funds $ 15,310 $ 9,553 $ 7,240 Income taxes 4,698 5,056 7,653 Noncash investing and financing activities: Transfer of loans to other real estate owned 234 599 1,233 Transfer from premises and equipment to other assets 445 — — Increase in operating lease right-of-use asset 4,453 — — Increase in operating lease liability 4,453 — — Unrealized gains (losses) on securities available for sale 8,821 (3,290 ) (777 ) Unrealized losses on cash flow hedges (1,854 ) (804 ) — Change in unfunded pension liability (64 ) 1,291 (234 ) 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 2,960 — — 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) | 12 Months Ended |
Dec. 31, 2019 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Abstract] | |
Component of accumulated other comprehensive income (loss) | Changes in each component of accumulated other comprehensive income (loss) were as follows (dollars in thousands): Net Unrealized Gains (Losses) on Securities Unrealized Losses on Cash Flow Hedges Adjustments Related to Pension Benefits Accumulated Other Comprehensive Income (Loss) Balance at Balance at December 31, 2016 $ (150 ) $ — $ (1,724 ) $ (1,874 ) Net unrealized gains on securities available for sale, net of tax, $12 23 — — 23 Reclassification adjustment for realized gains on securities, net of tax, $(284) (528 ) — — (528 ) Change in unfunded pension liability, net of tax, $(82) — — (152 ) (152 ) Reclassification of "stranded" tax effects from tax rate change (141 ) — (404 ) (545 ) Balance at December 31, 2017 (796 ) — (2,280 ) (3,076 ) Net unrealized losses on securities available for sale, net of tax, $(745) (2,464 ) — — (2,464 ) Reclassification adjustment for realized gains on securities, net of tax, $(18) (63 ) — — (63 ) Net unrealized losses on cash flow hedges, net of tax, $(180) — (624 ) — (624 ) Change in unfunded pension liability, net of tax, $249 — — 1,042 1,042 Reclassification for ASU 2016-01 adoption (650 ) — — (650 ) Balance at December 31, 2018 (3,973 ) (624 ) (1,238 ) (5,835 ) Net unrealized gains on securities available for sale, net of tax, $2,005 7,090 — — 7,090 Reclassification adjustment for realized gains on securities, net of tax, $(59) (215 ) — — (215 ) Net unrealized losses on cash flow hedges, net of tax, $(394) — (1,460 ) — (1,460 ) Change in unfunded pension liability, net of tax, $(1) — — (63 ) (63 ) Balance at December 31, 2019 $ 2,902 $ (2,084 ) $ (1,301 ) $ (483 ) |
Reclassification out of accumulated other comprehensive income (loss) | The following table provides information regarding reclassifications out of accumulated other comprehensive income (loss) (dollars in thousands): Reclassifications Out of Accumulated Other Comprehensive Income (Loss) For the Three Years Ending December 31, 2019 Details about AOCI Components Amount Reclassified from AOCI Affected Line Item in the Statement of Where Net Income is Presented Years Ended December 31, 2019 2018 2017 Available for sale securities: Realized gain on sale of securities $ 274 $ 81 $ 812 Securities gains, net (59 ) (18 ) (284 ) Income taxes $ 215 $ 63 $ 528 Net of tax Reclassification of "stranded" tax effects from tax rate change — — 141 (1) Reclassification for ASU-2016-01 adoption — 650 — (2) Employee benefit plans: Reclassification of "stranded" tax effects from tax rate change — — 404 (1) Total reclassifications $ 215 $ 713 $ 1,073 ______________________ (1) Reclassification from AOCI to retained earnings for "stranded" tax effects resulting from the impact of the newly enacted federal corporate income tax rate on items included in AOCI. (2) Reclassification from AOCI to retained earnings for unrealized holding gains on equity securities due to adoption of ASU 2016-01. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) | 1 Months Ended | 12 Months Ended | |||
Jul. 31, 2011trust | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Jan. 01, 2019USD ($) | |
Interest-bearing Deposits in Other Banks [Abstract] | |||||
Maturity period of interest bearing deposits in other banks | 1 year | ||||
Derivative Loan Commitments [Abstract] | |||||
Period of time between issuance and sale of loan commitment, minimum | 30 days | ||||
Period of time between issuance and sale of loan commitment, maximum | 60 days | ||||
Loans [Abstract] | |||||
Period to discontinued interest accrual on delinquent loans | 90 days | ||||
Past due period when loans are charged off | 120 days | ||||
Troubled Debt Restructurings [Abstract] | |||||
Loans classified as TDR | $ 1,058,000 | $ 1,090,000 | |||
Income Taxes [Abstract] | |||||
Unrecognized tax benefits | 0 | 0 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of stranded tax effects from tax rate change | $ (545,000) | ||||
Liabilities | 2,158,292,000 | 1,640,324,000 | |||
Advertising and Marketing Costs [Abstract] | |||||
Advertising and marketing costs | $ 473,000 | $ 365,000 | 352,000 | ||
Minimum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period of intangible | 8 years | ||||
Maximum | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 39 years | ||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period of intangible | 10 years | ||||
Software | |||||
Property, Plant and Equipment [Line Items] | |||||
Estimated useful lives | 3 years | ||||
MidCarolina | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization period of intangible | 108 months | ||||
MidCarolina | Delaware | |||||
Business Acquisition [Line Items] | |||||
Number of unconsolidated statutory trusts | trust | 2 | ||||
Accounting Standard Update 2018-02 | New Accounting Principles, Early Adoption | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Reclassification of stranded tax effects from tax rate change | $ 545,000 | ||||
Accounting Standards Update 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Liabilities | $ 4,400,000 |
Acquisitions - Narrative (Detai
Acquisitions - Narrative (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Merger related expenses | $ 11,782 | $ 872 | $ 0 | |
HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
Number of shares issued per share of common stock (in shares) | 0.4150 | |||
Acquisition-related Costs [Member] | HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
Merger related expenses | 11,800 | |||
Data processing termination and conversion costs | HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
Merger related expenses | 9,100 | |||
Legal and Professional Fees | HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
Merger related expenses | 1,700 | |||
Salary and Related Expense | HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
Merger related expenses | 400 | |||
Other Noninterest Expense | HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
Merger related expenses | $ 600 |
Acquisitions - Summary of Consi
Acquisitions - Summary of Consideration Paid and Fair Value of Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Consideration Paid: | |||||
Issuance of common stock (in shares) | 2,361,686 | ||||
Liabilities assumed: | |||||
Goodwill resulting from merger with HomeTown | $ 84,002 | $ 43,872 | $ 43,872 | ||
HomeTown Bankshares Corporation Merger | |||||
Consideration Paid: | |||||
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 | 2,960 | ||||
Core deposit intangible | 8,200 | ||||
Other real estate owned | 1,442 | ||||
Banked owned life insurance | 8,246 | ||||
Other assets | 14,244 | ||||
Total assets | 555,717 | ||||
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 | 43,120 | ||||
Goodwill resulting from merger with HomeTown | 40,130 | $ 40,130 | $ 40,761 | ||
Common Stock | HomeTown Bankshares Corporation Merger | |||||
Consideration Paid: | |||||
Issuance of common shares, replacement options, and restricted stock | 82,470 | ||||
Issuance of replacement stock options/restricted stock | HomeTown Bankshares Corporation Merger | |||||
Consideration Paid: | |||||
Issuance of common shares, replacement options, and restricted stock | $ 753 |
Acquisitions - Changes in Fair
Acquisitions - Changes in Fair Value of Net Assets Acquired and Liabilities (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Goodwill [Roll Forward] | |
Goodwill beginning of period | $ 43,872 |
Goodwill end of period | 84,002 |
HomeTown Bankshares Corporation Merger | |
Goodwill [Roll Forward] | |
Effect of adjustments to deferred income taxes | (631) |
Goodwill end of period | $ 40,130 |
Acquisitions - Acquired Impaire
Acquisitions - Acquired Impaired Loans Receivable (Details) - USD ($) $ in Thousands | Apr. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Acquisition [Line Items] | ||||
Interest component of expected cash flows (accretable yield) | $ 4,410 | $ 0 | $ 0 | |
HomeTown Bankshares Corporation Merger | ||||
Business Acquisition [Line Items] | ||||
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 |
Acquisitions - Operating Cost S
Acquisitions - Operating Cost Savings and Other Business Synergies as Result of Acquisition (Details) - HomeTown Bankshares Corporation Merger - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Business Acquisition [Line Items] | ||
Total revenues | $ 95,178 | $ 98,232 |
Net income | $ 29,841 | $ 27,974 |
Earnings per share (in dollars per share) | $ 2.70 | $ 2.52 |
Restrictions on Cash (Details)
Restrictions on Cash (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Abstract] | ||
Cash and cash equivalents reserve requirement | $ 14,400,000 | $ 3,000,000 |
Required balance to be maintained | 2,600,000 | $ 0 |
Federal Deposit Insurance Corporation deposit, in excess of insurance limits | $ 678,000 |
Securities - Amortized Cost and
Securities - Amortized Cost and Estimated Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 375,494 | $ 337,774 |
Unrealized Gains | 4,360 | 1,306 |
Unrealized Losses | 659 | 6,427 |
Fair Value | 379,195 | 332,653 |
U.S. Treasury | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 14,992 | |
Unrealized Gains | 0 | |
Unrealized Losses | 5 | |
Fair Value | 14,987 | |
Federal agencies and GSEs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 126,829 | 137,070 |
Unrealized Gains | 1,504 | 442 |
Unrealized Losses | 219 | 3,473 |
Fair Value | 128,114 | 134,039 |
Mortgage-backed and CMOs | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 182,732 | 113,883 |
Unrealized Gains | 1,901 | 385 |
Unrealized Losses | 393 | 2,401 |
Fair Value | 184,240 | 111,867 |
State and municipal | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 41,427 | 80,022 |
Unrealized Gains | 769 | 411 |
Unrealized Losses | 42 | 531 |
Fair Value | 42,154 | 79,902 |
Corporate | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 9,514 | 6,799 |
Unrealized Gains | 186 | 68 |
Unrealized Losses | 0 | 22 |
Fair Value | $ 9,700 | $ 6,845 |
Securities - Narrative (Details
Securities - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Debt Securities, Available-for-sale [Line Items] | |||
Net unrealized holding gain on equity securities | $ 333,000 | $ 42,000 | $ 0 |
Equity securities sold during period | 445,000 | ||
Securities pledged to secure public deposits, repurchase agreements and other | 179,852,000 | 143,064,000 | |
FHLB letters of credit used as additional collateral amount | $ 170,000,000 | 190,250,000 | |
Federal Home Loan Bank stock requirement, percentage of outstanding borrowings | 4.25% | ||
Federal Reserve Bank stock, stock requirement, percentage of outstanding capital | 3.00% | ||
Federal Reserve Bank stock, stock requirement, percentage subject to call | 3.00% | ||
Federal reserve bank stock | $ 6,415,000 | 3,621,000 | |
Investment in FHLB stock | 2,215,000 | 1,626,000 | |
Other-than-temporary impairment losses recognized | $ 0 | $ 0 | |
Federal agencies and GSEs | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, available for sale, unrealized loss position, number of positions | security | 26 | ||
Mortgage-backed securities | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, available for sale, unrealized loss position, number of positions | security | 32 | ||
Debt securities, available for sale, continuous unrealized loss positions, 12 months or longer, number of positions | security | 15 | ||
Collateralized mortgage obligations | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, available for sale, unrealized loss position, number of positions | security | 1 | ||
Debt securities, available for sale, continuous unrealized loss positions, 12 months or longer, number of positions | security | 1 | ||
State and municipal | |||
Debt Securities, Available-for-sale [Line Items] | |||
Debt securities, available for sale, unrealized loss position, number of positions | security | 6 |
Securities - Amortized Cost a_2
Securities - Amortized Cost and Estimated Fair Value by Maturity (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amortized Cost | |||
Due in one year or less | $ 41,234 | ||
Due after one year through five years | 51,039 | ||
Due after five years through ten years | 56,537 | ||
Due after ten years | 43,952 | ||
Amortized Cost | 375,494 | $ 337,774 | |
Fair Value | |||
Due in one year or less | 41,207 | ||
Due after one year through five years | 51,814 | ||
Due after five years through ten years | 57,763 | ||
Due after ten years | 44,171 | ||
Fair Value | 379,195 | 332,653 | |
Gross realized gains and losses [Abstract] | |||
Gross realized gains | 328 | 342 | $ 825 |
Gross realized losses | (54) | (261) | (13) |
Proceeds from sales of securities | 29,878 | 57,607 | $ 55,903 |
Mortgage-backed and CMOs | |||
Amortized Cost | |||
Mortgage-backed and CMOs | 182,732 | ||
Amortized Cost | 182,732 | 113,883 | |
Fair Value | |||
Mortgage-backed and CMOs | 184,240 | ||
Fair Value | $ 184,240 | $ 111,867 |
Securities - Summary of Securit
Securities - Summary of Securities in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Total | $ 177,735 | $ 230,888 |
Less than 12 Months | 116,198 | 27,654 |
12 Months or More | 61,537 | 203,234 |
Unrealized Loss | ||
Total | 659 | 6,427 |
Less than 12 Months | 352 | 41 |
12 Months or More | 307 | 6,386 |
U.S. Treasury | ||
Fair Value | ||
Total | 14,987 | |
Less than 12 Months | 14,987 | |
12 Months or More | 0 | |
Unrealized Loss | ||
Total | 5 | |
Less than 12 Months | 5 | |
12 Months or More | 0 | |
Federal agencies and GSEs | ||
Fair Value | ||
Total | 69,095 | 103,797 |
Less than 12 Months | 31,779 | 14,982 |
12 Months or More | 37,316 | 88,815 |
Unrealized Loss | ||
Total | 219 | 3,473 |
Less than 12 Months | 44 | 8 |
12 Months or More | 175 | 3,465 |
Mortgage-backed and CMOs | ||
Fair Value | ||
Total | 89,391 | 86,852 |
Less than 12 Months | 66,324 | 5,473 |
12 Months or More | 23,067 | 81,379 |
Unrealized Loss | ||
Total | 393 | 2,401 |
Less than 12 Months | 266 | 15 |
12 Months or More | 127 | 2,386 |
State and municipal | ||
Fair Value | ||
Total | 4,262 | 39,755 |
Less than 12 Months | 3,108 | 7,199 |
12 Months or More | 1,154 | 32,556 |
Unrealized Loss | ||
Total | 42 | 531 |
Less than 12 Months | 37 | 18 |
12 Months or More | $ 5 | 513 |
Corporate | ||
Fair Value | ||
Total | 484 | |
Less than 12 Months | 0 | |
12 Months or More | 484 | |
Unrealized Loss | ||
Total | 22 | |
Less than 12 Months | 0 | |
12 Months or More | $ 22 |
Loans - Schedule of Loans and A
Loans - Schedule of Loans and Acquired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 1,830,815 | $ 1,357,476 | |
Net deferred loan (fees) costs | 1,197 | 720 | |
Overdraft deposits | 134 | 127 | |
Outstanding principal balance and the carrying amount of loan acquired [Abstract] | |||
Outstanding principal balance | 393,618 | 63,619 | |
Carrying amount | 377,130 | 58,886 | |
Outstanding principal balance and the carrying amount of loan acquired, impaired [Abstract] | |||
Outstanding principal balance | 53,600 | 24,500 | |
Carrying amount | 43,028 | 20,611 | |
Changes in the accretable discount on acquired loans [Abstract] | |||
Balance at January 1 | 4,633 | 4,890 | $ 6,103 |
Additions from merger with HomeTown | 4,410 | 0 | 0 |
Accretion | (3,304) | (2,362) | (3,117) |
Reclassification from nonaccretable difference | 736 | 956 | 1,006 |
Other changes, net | 1,418 | 1,149 | 898 |
Balance at December 31 | 7,893 | 4,633 | $ 4,890 |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 339,077 | 285,972 | |
Commercial Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 1,037,119 | 753,040 | |
Commercial Real Estate | Construction and land development | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 137,920 | 97,240 | |
Commercial Real Estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 899,199 | 655,800 | |
Residential Real Estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 443,738 | 313,371 | |
Residential Real Estate | Real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 324,315 | 209,438 | |
Residential Real Estate | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | 119,423 | 103,933 | |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans | $ 10,881 | $ 5,093 |
Loans - Receivables Past Due (D
Loans - Receivables Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | $ 4,626 | $ 1,987 |
90 Days Past Due and Still Accruing | 361 | 72 |
Non- Accrual Loans | 1,944 | 1,090 |
Current | 1,826,189 | 1,355,489 |
Total Loans | 1,830,815 | 1,357,476 |
Commercial | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 1,397 | 103 |
90 Days Past Due and Still Accruing | 52 | 0 |
Non- Accrual Loans | 857 | 83 |
Current | 337,680 | 285,869 |
Total Loans | 339,077 | 285,972 |
Commercial Real Estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Loans | 1,037,119 | 753,040 |
Commercial Real Estate | Construction and land development | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 69 | 27 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 11 | 27 |
Current | 137,851 | 97,213 |
Total Loans | 137,920 | 97,240 |
Commercial Real Estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 925 | 239 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 274 | 197 |
Current | 898,274 | 655,561 |
Total Loans | 899,199 | 655,800 |
Residential Real Estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Loans | 443,738 | 313,371 |
Residential Real Estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 1,866 | 1,344 |
90 Days Past Due and Still Accruing | 282 | 72 |
Non- Accrual Loans | 685 | 659 |
Current | 322,449 | 208,094 |
Total Loans | 324,315 | 209,438 |
Residential Real Estate | Home equity | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 279 | 250 |
90 Days Past Due and Still Accruing | 27 | 0 |
Non- Accrual Loans | 113 | 124 |
Current | 119,144 | 103,683 |
Total Loans | 119,423 | 103,933 |
Consumer | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 90 | 24 |
90 Days Past Due and Still Accruing | 0 | 0 |
Non- Accrual Loans | 4 | 0 |
Current | 10,791 | 5,069 |
Total Loans | 10,881 | 5,093 |
30- 59 Days Past Due | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 1,361 | 665 |
30- 59 Days Past Due | Commercial | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 325 | 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 | 58 | 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 | 217 | 42 |
30- 59 Days Past Due | Residential Real Estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 639 | 456 |
30- 59 Days Past Due | Residential Real Estate | Home equity | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 49 | 126 |
30- 59 Days Past Due | Consumer | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 73 | 21 |
60-89 Days Past Due | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 960 | 160 |
60-89 Days Past Due | Commercial | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 163 | 0 |
60-89 Days Past Due | Commercial Real Estate | Construction and land development | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 0 | 0 |
60-89 Days Past Due | Commercial Real Estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 434 | 0 |
60-89 Days Past Due | Residential Real Estate | Real estate | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 260 | 157 |
60-89 Days Past Due | Residential Real Estate | Home equity | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | 90 | 0 |
60-89 Days Past Due | Consumer | ||
Analysis by portfolio segment of the entity's past due loans [Abstract] | ||
Total Past Due | $ 13 | $ 3 |
Loans - Impaired Loan (Details)
Loans - Impaired Loan (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | $ 1,203 | $ 1,099 |
Impaired loan, with related allowance, recorded investment | 989 | 235 |
Impaired loan, total, recorded investment | 2,192 | 1,334 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 1,202 | 1,096 |
Impaired loan, with related allowance, unpaid principal balance | 984 | 231 |
Impaired loan, total, unpaid principal balance | 2,186 | 1,327 |
Impaired loan, total, related allowance | 230 | 64 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 1,137 | 1,571 |
Impaired loan, with related allowance, average recorded investment | 416 | 863 |
Impaired loan, total, average recorded investment | 1,553 | 2,434 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 88 | 89 |
Impaired loan, with related allowance, interest income recognized | 57 | 50 |
Impaired loan, total, interest income recognized | 145 | 139 |
Commercial | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 49 | 28 |
Impaired loan, with related allowance, recorded investment | 735 | 62 |
Impaired loan, total, recorded investment | 784 | 90 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 49 | 28 |
Impaired loan, with related allowance, unpaid principal balance | 730 | 58 |
Impaired loan, total, unpaid principal balance | 779 | 86 |
Impaired loan, total, related allowance | 204 | 55 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 16 | 44 |
Impaired loan, with related allowance, average recorded investment | 191 | 354 |
Impaired loan, total, average recorded investment | 207 | 398 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 5 | 14 |
Impaired loan, with related allowance, interest income recognized | 41 | 40 |
Impaired loan, total, interest income recognized | 46 | 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 | 502 | 376 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 502 | 376 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 500 | 373 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 500 | 373 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 424 | 542 |
Impaired loan, with related allowance, average recorded investment | 0 | 18 |
Impaired loan, total, average recorded investment | 424 | 560 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 39 | 36 |
Impaired loan, with related allowance, interest income recognized | 0 | 0 |
Impaired loan, total, interest income recognized | 39 | 36 |
Residential Real Estate | Real estate | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 611 | 646 |
Impaired loan, with related allowance, recorded investment | 254 | 173 |
Impaired loan, total, recorded investment | 865 | 819 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 612 | 646 |
Impaired loan, with related allowance, unpaid principal balance | 254 | 173 |
Impaired loan, total, unpaid principal balance | 866 | 819 |
Impaired loan, total, related allowance | 26 | 9 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 652 | 875 |
Impaired loan, with related allowance, average recorded investment | 225 | 342 |
Impaired loan, total, average recorded investment | 877 | 1,217 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 38 | 29 |
Impaired loan, with related allowance, interest income recognized | 16 | 9 |
Impaired loan, total, interest income recognized | 54 | 38 |
Residential Real Estate | Home equity | ||
Recorded Investment | ||
Impaired loan, with no related allowance, recorded investment | 41 | 49 |
Impaired loan, with related allowance, recorded investment | 0 | 0 |
Impaired loan, total, recorded investment | 41 | 49 |
Unpaid Principal Balance | ||
Impaired loan, with no related allowance, unpaid principal balance | 41 | 49 |
Impaired loan, with related allowance, unpaid principal balance | 0 | 0 |
Impaired loan, total, unpaid principal balance | 41 | 49 |
Impaired loan, total, related allowance | 0 | 0 |
Average Recorded Investment | ||
Impaired loan, with no related allowance, average recorded investment | 45 | 108 |
Impaired loan, with related allowance, average recorded investment | 0 | 128 |
Impaired loan, total, average recorded investment | 45 | 236 |
Interest Income Recognized | ||
Impaired loan, with no related allowance, interest income recognized | 6 | 10 |
Impaired loan, with related allowance, interest income recognized | 0 | 1 |
Impaired loan, total, interest income recognized | 6 | 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 - Troubled Debt Restructu
Loans - Troubled Debt Restructuring (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)contractloan | Dec. 31, 2018USD ($)contractloan | Dec. 31, 2017USD ($)contractloan | |
Loans modified as TDRs [Abstract] | |||
Number of Contracts | contract | 1 | 1 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 207,000 | $ 11,000 | $ 305,000 |
Post-Modification Outstanding Recorded Investment | $ 207,000 | $ 11,000 | 305,000 |
Number of loans that subsequently defaulted within 12 months of modification | loan | 0 | 0 | |
Type of modification | $ 207,000 | $ 11,000 | $ 305,000 |
Loans in the process of foreclosure | 161,000 | 112,000 | |
Residential OREO | $ 285,000 | $ 719,000 | |
Commercial | |||
Loans modified as TDRs [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 212,000 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 212,000 |
Allowance for loan losses for loans modified | $ 137,000 | ||
Number of loans that subsequently defaulted within 12 months of modification | loan | 3 | ||
Loans that defaulted within twelve months of modification | $ 109,000,000 | ||
Type of modification | $ 0 | $ 0 | $ 212,000 |
Commercial Real Estate | Real estate | |||
Loans modified as TDRs [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of modification | $ 0 | $ 0 | $ 0 |
Residential Real Estate | Real estate | |||
Loans modified as TDRs [Abstract] | |||
Number of Contracts | contract | 1 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 207,000 | $ 11,000 | $ 36,000 |
Post-Modification Outstanding Recorded Investment | 207,000 | 11,000 | 36,000 |
Allowance for loan losses for loans modified | 24,000 | 0 | $ 0 |
Number of loans that subsequently defaulted within 12 months of modification | loan | 1 | ||
Loans that defaulted within twelve months of modification | $ 143,000,000 | ||
Type of modification | $ 207,000 | $ 11,000 | $ 36,000 |
Residential Real Estate | Home equity | |||
Loans modified as TDRs [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 57,000 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 57,000 |
Allowance for loan losses for loans modified | 1,000 | ||
Type of modification | $ 0 | $ 0 | $ 57,000 |
Consumer | |||
Loans modified as TDRs [Abstract] | |||
Number of Contracts | contract | 0 | 0 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 |
Type of modification | $ 0 | $ 0 | $ 0 |
Loans - Credit exposure (Detail
Loans - Credit exposure (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 1,830,815 | $ 1,357,476 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 339,077 | 285,972 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,037,119 | 753,040 |
Commercial Real Estate | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 137,920 | 97,240 |
Commercial Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 899,199 | 655,800 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 443,738 | 313,371 |
Residential Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 324,315 | 209,438 |
Residential Real Estate | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 119,423 | 103,933 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,881 | 5,093 |
Consumer | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10,877 | 5,093 |
Consumer | Nonperforming | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4 | 0 |
Pass | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 328,488 | 285,092 |
Pass | Commercial Real Estate | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 130,694 | 93,000 |
Pass | Commercial Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 860,615 | 647,519 |
Pass | Residential Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 316,454 | 204,261 |
Pass | Residential Real Estate | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 118,960 | 103,541 |
Special Mention | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 8,710 | 154 |
Special Mention | Commercial Real Estate | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,133 | 1,840 |
Special Mention | Commercial Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 22,117 | 4,403 |
Special Mention | Residential Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,370 | 1,685 |
Special Mention | Residential Real Estate | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | 0 |
Substandard | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,879 | 726 |
Substandard | Commercial Real Estate | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,093 | 2,400 |
Substandard | Commercial Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 16,467 | 3,878 |
Substandard | Residential Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,491 | 3,492 |
Substandard | Residential Real Estate | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 463 | 392 |
Doubtful | Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial Real Estate | Construction and land development | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Commercial Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential Real Estate | Real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | 0 |
Doubtful | Residential Real Estate | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 0 | $ 0 |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments - Changes In Allowance for Loan Losses and Reserve for Unfunded Lending Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for Loan Losses | |||
Balance, beginning of year | $ 12,805 | $ 13,603 | $ 12,801 |
Provision for (recovery of) loan losses | 456 | (103) | 1,016 |
Charge-offs | (333) | (1,020) | (690) |
Recoveries | 224 | 325 | 476 |
Balance, end of year | 13,152 | 12,805 | 13,603 |
Reserve for Unfunded Lending Commitments | |||
Balance, beginning of year | 217 | 206 | 203 |
Provision for unfunded commitments | 112 | 11 | 3 |
Charge-offs | 0 | 0 | 0 |
Balance, end of year | $ 329 | $ 217 | $ 206 |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Reserve for Unfunded Lending Commitments - Allowance by Portfolio Segment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
Allowance for Loan Losses | |||||
Balance, beginning of year | $ 12,805 | $ 13,603 | $ 12,801 | ||
Charge-offs | (333) | (1,020) | (690) | ||
Recoveries | 224 | 325 | 476 | ||
Provision | 456 | (103) | 1,016 | ||
Balance, end of year | 13,152 | 12,805 | 13,603 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | $ 230 | $ 64 | |||
Collectively evaluated for impairment | 12,684 | 12,560 | |||
Total | 13,152 | 12,805 | 13,603 | 13,152 | 12,805 |
Loans | |||||
Individually evaluated for impairment | 2,192 | 1,334 | |||
Collectively evaluated for impairment | 1,785,595 | 1,335,531 | |||
Total Loans | 1,830,815 | 1,357,476 | |||
Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 181 | ||||
Balance, end of year | 238 | 181 | |||
Allowance for Loan Losses | |||||
Total | 238 | 181 | 238 | 181 | |
Loans | |||||
Total Loans | 43,028 | 20,611 | |||
Commercial | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 2,537 | 2,413 | |||
Charge-offs | (12) | (787) | |||
Recoveries | 13 | 69 | |||
Provision | 119 | 842 | |||
Balance, end of year | 2,657 | 2,537 | 2,413 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 204 | 55 | |||
Collectively evaluated for impairment | 2,448 | 2,482 | |||
Total | 2,657 | 2,537 | 2,413 | 2,657 | 2,537 |
Loans | |||||
Individually evaluated for impairment | 784 | 90 | |||
Collectively evaluated for impairment | 337,312 | 285,431 | |||
Total Loans | 339,077 | 285,972 | |||
Commercial | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 0 | ||||
Balance, end of year | 5 | 0 | |||
Allowance for Loan Losses | |||||
Total | 5 | 0 | 5 | 0 | |
Loans | |||||
Total Loans | 981 | 451 | |||
Commercial Real Estate | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 7,246 | 8,321 | |||
Charge-offs | (6) | (11) | |||
Recoveries | 9 | 10 | |||
Provision | 167 | (1,074) | |||
Balance, end of year | 7,416 | 7,246 | 8,321 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 7,386 | 7,211 | |||
Total | 7,416 | 7,246 | 8,321 | 7,416 | 7,246 |
Loans | |||||
Individually evaluated for impairment | 502 | 376 | |||
Collectively evaluated for impairment | 1,004,296 | 742,365 | |||
Total Loans | 1,037,119 | 753,040 | |||
Commercial Real Estate | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 35 | ||||
Balance, end of year | 30 | 35 | |||
Allowance for Loan Losses | |||||
Total | 30 | 35 | 30 | 35 | |
Loans | |||||
Total Loans | 32,321 | 10,299 | |||
Residential Real Estate | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 2,977 | 2,825 | |||
Charge-offs | (70) | (86) | |||
Recoveries | 58 | 149 | |||
Provision | 58 | 89 | |||
Balance, end of year | 3,023 | 2,977 | 2,825 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 26 | 9 | |||
Collectively evaluated for impairment | 2,794 | 2,822 | |||
Total | 3,023 | 2,977 | 2,825 | 3,023 | 2,977 |
Loans | |||||
Individually evaluated for impairment | 906 | 868 | |||
Collectively evaluated for impairment | 433,121 | 302,657 | |||
Total Loans | 443,738 | 313,371 | |||
Residential Real Estate | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 146 | ||||
Balance, end of year | 203 | 146 | |||
Allowance for Loan Losses | |||||
Total | 203 | 146 | 203 | 146 | |
Loans | |||||
Total Loans | 9,711 | 9,846 | |||
Consumer | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 45 | 44 | |||
Charge-offs | (245) | (136) | |||
Recoveries | 144 | 97 | |||
Provision | 112 | 40 | |||
Balance, end of year | 56 | 45 | 44 | ||
Allowance for Loan Losses | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 56 | 45 | |||
Total | 56 | 45 | $ 44 | 56 | 45 |
Loans | |||||
Individually evaluated for impairment | 0 | 0 | |||
Collectively evaluated for impairment | 10,866 | 5,078 | |||
Total Loans | 10,881 | 5,093 | |||
Consumer | Receivables Acquired with Deteriorated Credit Quality | |||||
Allowance for Loan Losses | |||||
Balance, beginning of year | 0 | ||||
Balance, end of year | 0 | 0 | |||
Allowance for Loan Losses | |||||
Total | $ 0 | $ 0 | 0 | 0 | |
Loans | |||||
Total Loans | $ 15 | $ 15 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 65,832 | $ 53,116 |
Accumulated depreciation | (25,984) | (26,441) |
Premises and equipment, net | 39,848 | 26,675 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 10,421 | 6,509 |
Buildings | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 36,247 | 28,075 |
Leasehold improvements | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | 1,469 | 1,011 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Premises and equipment, gross | $ 17,695 | $ 17,521 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 2,064 | $ 1,775 | $ 1,877 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Narrative (Details) - USD ($) $ in Thousands | 1 Months Ended | 12 Months Ended | |||
Apr. 30, 2019 | Jul. 31, 2011 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Acquired Finite-Lived Intangible Assets [Line Items] | |||||
Amortization expense | $ 1,398 | $ 265 | $ 528 | ||
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 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Goodwill and Other Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill | |||
Goodwill beginning of period | $ 43,872 | $ 43,872 | |
Additions | 40,130 | ||
Goodwill end of period | 84,002 | 43,872 | $ 43,872 |
Intangibles | |||
Intangibles, beginning | 926 | ||
Additions | 8,200 | ||
Amortization | (1,398) | (265) | $ (528) |
Intangibles, ending | $ 7,728 | $ 926 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Carrying Value of Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Finite-Lived Intangible Assets [Line Items] | |||
Net Carrying Value | $ 7,728 | $ 926 | |
Goodwill | |||
Gross Carrying Value | 84,002 | 43,872 | |
Net Carrying Value | 84,002 | 43,872 | $ 43,872 |
Core deposit intangibles | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross Carrying Value | 19,708 | 11,508 | |
Accumulated Amortization | (11,980) | (10,582) | |
Net Carrying Value | $ 7,728 | $ 926 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense of Core Deposit Intangibles (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amount | ||
2020 | $ 1,637 | |
2021 | 1,464 | |
2022 | 1,260 | |
2023 | 1,069 | |
2024 | 800 | |
2025 and after | 1,498 | |
Net Carrying Value | $ 7,728 | $ 926 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Apr. 30, 2019 | Jan. 01, 2019 | |
Lessor, Lease, Description [Line Items] | |||||
Right-of-use assets | $ 5,340,000 | ||||
Lease liabilities | 5,369,000 | ||||
Rent expense | $ 1,187,000 | ||||
Rent expense | $ 919,000 | $ 961,000 | |||
Accounting Standards Update 2016-02 | |||||
Lessor, Lease, Description [Line Items] | |||||
Right-of-use assets | $ 4,400,000 | ||||
Lease liabilities | $ 4,400,000 | ||||
HomeTown Bankshares Corporation Merger | |||||
Lessor, Lease, Description [Line Items] | |||||
Right-of-use assets | $ 1,800,000 | ||||
Lease liabilities | $ 1,800,000 |
Leases - Lease Information (Det
Leases - Lease Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Lease liabilities | $ 5,369 |
Right-of-use assets | $ 5,340 |
Weighted average remaining lease term | 8 years 2 months |
Weighted average discount rate | 3.21% |
Lease cost | |
Operating lease cost | $ 1,040 |
Short-term lease cost | 3 |
Total lease cost | 1,043 |
Cash paid for amounts included in the measurement of lease liabilities | $ 1,013 |
Leases - Lease Maturity (Detail
Leases - Lease Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
2020 | $ 959 |
2021 | 943 |
2022 | 920 |
2023 | 817 |
2024 | 499 |
2025 and after | 2,022 |
Total undiscounted cash flows | 6,160 |
Discount | (791) |
Lease liabilities | $ 5,369 |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Aggregate amount of time deposits, $250,000 or more | $ 200,712,000 | $ 159,996,000 |
Scheduled maturities of certificates of deposits [Abstract] | ||
2020 | 242,784,000 | |
2021 | 127,672,000 | |
2022 | 49,426,000 | |
2023 | 31,401,000 | |
2024 | 16,175,000 | |
2025 and after | 4,312,000 | |
Total | 471,770,000 | |
Brokered time deposits | 0 | 0 |
Time deposits through CDARs program | $ 14,864,000 | $ 22,431,000 |
Short-term Borrowings (Details)
Short-term Borrowings (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Aug. 21, 2019 | Dec. 31, 2018 | |
Line of Credit Facility [Line Items] | |||
Amount of outstanding borrowings | $ 0 | ||
Customer repurchase agreements | $ 40,475,000 | $ 35,243,000 | |
Customer repurchase agreements, weighted average rate | 1.40% | 1.67% | |
Line of Credit | |||
Line of Credit Facility [Line Items] | |||
Interest paid | $ 4,000,000 | ||
Line of Credit | Correspondent Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | $ 15,000,000 | ||
Line of Credit | Another Correspondent Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | 10,000,000 | ||
Line of Credit | Regional Commercial Bank | |||
Line of Credit Facility [Line Items] | |||
Line of credit maximum borrowing capacity | $ 3,000,000 | ||
Stated percentage | 0.25% |
Long-term Borrowings (Details)
Long-term Borrowings (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Debt Disclosure [Abstract] | ||
Percentage of entity's assets equal to line of credit facility (in hundredths) | 30.00% | |
Collateral pledged under blanket floating lien agreement | $ 846,767,000 | |
Advance Amount | 0 | $ 0 |
Debt Instrument [Line Items] | ||
Public deposit accounts | 256,984,000 | |
Federal Home Loan Bank Advances | ||
Debt Instrument [Line Items] | ||
Collateral for deposits | 170,000,000 | |
US government and agency securities | ||
Debt Instrument [Line Items] | ||
Collateral for deposits | $ 126,814,000 |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | Apr. 01, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | |||
Subordinated debt | $ 7,517,000 | $ 0 | |
Subordinated borrowing, interest rate | 6.75% | ||
Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Subordinated debt, fair value adjustment | $ 17,000 | ||
HomeTown Bankshares Corporation Merger | |||
Debt Instrument [Line Items] | |||
Subordinated debt | $ 7,500,000 | ||
HomeTown Bankshares Corporation Merger | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Subordinated debt, fair value adjustment | $ 30,000 |
Junior Subordinated Debt - Narr
Junior Subordinated Debt - Narrative (Details) - USD ($) $ in Thousands | Sep. 30, 2011 | Apr. 07, 2006 | Dec. 31, 2019 | Jul. 01, 2011 |
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 for deferral of distributions on trust preferred securities, maximum | 5 years | |||
Proceeds from issuance of common securities | $ 619 | |||
Junior subordinated debenture | $ 20,619 | |||
Mid Carolina Trust | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Junior subordinated debenture | $ 8,764 | |||
Equity method investments | $ 264 | |||
AMNB Trust I | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Equity method investments | $ 619 | |||
Trust Preferred Securities | ||||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||||
Fixed interest rate of trust preferred securities | 6.66% | |||
Trust preferred securities, basis spread on variable rate | 1.35% |
Junior Subordinated Debt - Outs
Junior Subordinated Debt - Outstanding Payables (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2011 | Jul. 01, 2011 | |
Debt Instrument [Line Items] | ||||
Principal Amount | $ 20,619 | |||
MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Fair value marks associated with junior subordinated debenture | $ 722 | $ 1,197 | ||
MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Fair value marks associated with junior subordinated debenture | $ 632 | $ 1,021 | ||
Junior Subordinated Debt Securities | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | 28,029 | 27,927 | ||
Junior Subordinated Debt Securities | AMNB Trust I | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 20,619 | 20,619 | ||
Junior Subordinated Debt Securities | AMNB Trust I | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 1.35% | |||
Junior Subordinated Debt Securities | MidCarolina Trust I | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 4,433 | 4,377 | ||
Junior Subordinated Debt Securities | MidCarolina Trust I | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis Spread on Variable Rate | 3.45% | |||
Junior Subordinated Debt Securities | MidCarolina Trust II | ||||
Debt Instrument [Line Items] | ||||
Principal Amount | $ 2,977 | $ 2,931 | ||
Junior Subordinated Debt Securities | MidCarolina Trust II | LIBOR | ||||
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 | Dec. 31, 2019USD ($)position | Dec. 31, 2018USD ($)position |
Derivative [Line Items] | ||
Notional Amount | $ 28,500 | $ 28,500 |
Positions | position | 3 | 3 |
Assets | $ 0 | $ 0 |
Liabilities | 2,658 | 804 |
Cash Collateral Pledged | $ 3,450 | $ 650 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 12 Months Ended | |||
Dec. 31, 2019USD ($)directorshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | May 15, 2018shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum number of common stock authorizes for issuance (in shares) | shares | 675,000 | |||
Total proceeds of the in-the-money options exercised | $ 688,000 | $ 861,000 | $ 113,000 | |
Total intrinsic value of options exercised | 616,000 | 732,000 | 287,000 | |
Compensation expense related to stock options | 0 | 0 | ||
Unrecognized compensation expense | $ 0 | $ 0 | $ 0 | |
Stock options granted during period (in shares) | shares | 0 | 0 | 0 | |
Regular monthly board retainer, market value of restricted stock | $ 7,500 | |||
Monthly meeting fees a director could receive in cash | 725 | |||
Monthly meeting fees a director could receive if restricted stock vested | $ 900 | |||
Number of directors elected to receive stock in lieu of cash | director | 12 | |||
Number of outside directors | director | 13 | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Maximum vesting period of granted restricted stock | 36 months | |||
Unrecognized compensation cost | $ 751,000 | $ 647,000 | $ 538,000 | |
Share based compensation expense | $ 915,000 | $ 610,000 | $ 532,000 | |
Number of shares issued (in shares) | shares | 17,373 | 15,471 | 13,093 | |
Recognized share based compensation expense | $ 626,000 | $ 586,000 | $ 484,000 | |
Restricted Stock | Minimum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period for recognition of unrecognized compensation cost | 12 months | |||
Restricted Stock | Maximum | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Weighted average period for recognition of unrecognized compensation cost | 36 months | |||
HomeTown Bankshares Corporation | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Compensation expense related to stock options | $ 147,000 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Option Shares | |||
Outstanding at beginning of period (in shares) | 13,200 | ||
Replacement stock options (in shares) | 40,753 | ||
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (37,104) | (35,310) | (4,950) |
Forfeited (in shares) | (2,075) | ||
Expired (in shares) | (830) | ||
Outstanding at end of period (in shares) | 13,944 | 13,200 | |
Exercisable at end of period (in shares) | 13,944 | ||
Weighted Average Exercise Price | |||
Outstanding at beginning of period (in dollars per share) | $ 21.97 | ||
Replacement stock options (in dollars per share) | 16.63 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 18.53 | ||
Forfeited (in dollars per share) | 16.63 | ||
Expired (in dollars per share) | 16.63 | ||
Outstanding at end of period (in dollars per share) | 16.63 | $ 21.97 | |
Exercisable at end of period (in dollars per share) | $ 16.63 | ||
Weighted Average Remaining Contractual Term | |||
Outstanding at end of period | 48 months 353 days | ||
Exercisable at end of period | 48 months 353 days | ||
Aggregate Intrinsic Value | |||
Outstanding at end of period | $ 320 | ||
Exercisable at end of period | $ 320 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Options Outstanding and Exercisable by Price Range (Details) - $15.01 to $20.00 | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise price range, minimum (in dollars per share) | $ 15 |
Exercise price range, maximum (in dollars per share) | $ 20 |
Number of Outstanding Options (in shares) | shares | 13,944 |
Weighted-Average Remaining Contractual Life | 48 months 353 days |
Weighted-Average Exercise Price (in dollars per share) | $ 16.63 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock (Details) - Restricted Stock | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Shares | |
Nonvested at beginning of period (in shares) | shares | 52,798 |
Replacement stock awards (n shares) | shares | 7,137 |
Granted (in shares) | shares | 22,274 |
Vested (in shares) | shares | (23,572) |
Forfeited (in shares) | shares | (1,366) |
Nonvested at end of period (in shares) | shares | 57,271 |
Weighted Average Grant Date Value Per Share | |
Nonvested at beginning of period (in dollars per share) | $ / shares | $ 31.71 |
Replacement stock awards (in dollars per share) | $ / shares | 27.28 |
Granted (in dollars per share) | $ / shares | 32.79 |
Vested (in dollars per share) | $ / shares | 23.70 |
Forfeited (in dollars per share) | $ / shares | 33.22 |
Nonvested at end of period (in dollars per share) | $ / shares | $ 34.84 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Liabilities) (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 2,841 | $ 2,868 |
Nonaccrual loan interest | 490 | 460 |
Other real estate owned valuation allowance | 120 | 69 |
Deferred compensation | 1,184 | 832 |
Net unrealized losses on securities | 0 | 1,147 |
Acquisition accounting adjustments | 3,670 | 734 |
Accrued pension liability | 50 | 36 |
NOL Carryforward | 456 | 0 |
Net unrealized loss on cash flow hedges | 573 | 180 |
Other | 601 | 420 |
Total deferred tax assets | 9,985 | 6,746 |
Deferred tax liabilities: | ||
Depreciation | 1,079 | 759 |
Accretion of discounts on securities | 0 | 24 |
Core deposit intangibles | 1,669 | 208 |
Net unrealized gains on securities | 799 | 0 |
Other | 574 | 238 |
Total deferred tax liabilities | 4,121 | 1,229 |
Net deferred tax assets | $ 5,864 | $ 5,517 |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Current tax expense | $ 3,793 | $ 5,090 | $ 7,355 |
Deferred tax expense | 1,068 | 556 | 724 |
Deferred tax asset adjustment for tax rate change | 0 | 0 | 2,747 |
Total income tax expense | $ 4,861 | $ 5,646 | $ 10,826 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Expected federal tax expense | $ 5,411 | $ 5,927 | $ 9,126 |
Tax impact from enacted change in tax rate | 0 | 0 | 2,747 |
Nondeductible interest expense | 67 | 69 | 85 |
Tax-exempt interest | (478) | (504) | (949) |
State income taxes | 149 | 337 | 296 |
Other, net | (288) | (183) | (479) |
Total income tax expense | 4,861 | 5,646 | 10,826 |
Downward adjustment of net deferred tax assets | $ 0 | $ 0 | $ 2,747 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Basic earnings per share (in shares) | 10,531,572 | 8,698,014 | 8,641,717 |
Effect of dilutive securities - stock options (in shares) | 9,765 | 10,448 | 18,911 |
Diluted earnings per share (in shares) | 10,541,337 | 8,708,462 | 8,660,628 |
Per Share Amount | |||
Basic earnings per share (in dollars per share) | $ 1.99 | $ 2.60 | $ 1.76 |
Effect of dilutive securities - stock options (in dollars per share) | (0.01) | (0.01) | 0 |
Diluted earnings per share (in dollars per share) | $ 1.98 | $ 2.59 | $ 1.76 |
Stock Options | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Stock options on common stock not included in computing diluted earnings per share (in shares) | 0 | 0 | 330 |
Off-Balance Sheet Activities (D
Off-Balance Sheet Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Loan repurchase requirement, number of days past due | 90 days | |
Loan repurchase requirement, number of days following sale | 180 days | |
Commitments to extend credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | $ 557,364 | $ 362,586 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | 13,611 | 15,555 |
Mortgage loan rate lock commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | 10,791 | $ 9,710 |
Loans held for sale | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Off-balance sheet financial instruments outstanding | $ 2,027 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Activity of loans to related parties [Roll Forward] | ||
Balance at December 31, 2018 | $ 18,074 | |
Additions | 8,421 | |
Repayments | (9,738) | |
Reclassifications | (7,163) | |
Balance at December 31, 2019 | 9,594 | |
Related party deposits | $ 14,741 | $ 18,280 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) | 12 Months Ended | ||
Dec. 31, 2019USD ($)agreement | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Defined benefit plan with individual requisite age | 21 years | ||
Defined benefit plan with individual requisite service period | 1 year | ||
Accumulated benefit obligation | $ 6,262,000 | $ 5,812,000 | $ 8,313,000 |
Maximum percentage of limiting equities | 5.00% | ||
Employer matching contribution, service requirement | 1 year | ||
Employee benefits expense | $ 932,000 | 778,000 | 763,000 |
Period of deferred compensation agreements | 10 years | ||
Number of remaining agreements | agreement | 1 | ||
Deferred compensation liability | $ 250,000 | 300,000 | |
Deferred compensation arrangement expense | 0 | 0 | 3,000 |
Profit sharing and incentive arrangements expense | 1,217,000 | 1,643,000 | 1,108,000 |
Profit sharing and deferred compensation arrangements expense | 158,000 | 141,000 | $ 135,000 |
Minimum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation arrangement annual payments | 25,000 | ||
Maximum | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation arrangement annual payments | 50,000 | ||
HomeTown Bankshares Corporation Merger | |||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | |||
Deferred compensation liability | $ 5,235,000 | $ 3,412,000 |
Employee Benefit Plans - Define
Employee Benefit Plans - Defined Benefit Plan Disclosures (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in Benefit Obligation: | |||
Projected benefit obligation at beginning of year | $ 5,812 | $ 8,313 | $ 7,932 |
Service cost | 0 | 0 | 0 |
Interest cost | 209 | 235 | 237 |
Actuarial (gain) loss | 489 | (782) | 611 |
Settlement gain | (236) | (120) | (3) |
Benefits paid | (12) | (1,834) | (464) |
Projected benefit obligation at end of year | 6,262 | 5,812 | 8,313 |
Change in Plan Assets: | |||
Fair value of plan assets at beginning of year | 5,653 | 7,556 | 7,647 |
Actual return (loss) on plan assets | 498 | (69) | 373 |
Benefits paid | (236) | (1,834) | (464) |
Fair value of plan assets at end of year | 5,915 | 5,653 | 7,556 |
Funded Status at End of Year | (347) | (159) | (757) |
Amounts Recognized in the Consolidated Balance Sheets | |||
Other liabilities | (347) | (159) | (757) |
Amounts Recognized in Accumulated Other Comprehensive Loss | |||
Net actuarial loss | 1,658 | 1,594 | 2,886 |
Deferred income taxes | (358) | (357) | (606) |
Amount recognized | 1,300 | 1,237 | 2,280 |
Components of Net Periodic Benefit Cost | |||
Service cost | 0 | 0 | 0 |
Interest cost | 209 | 235 | 237 |
Expected return on plan assets | (269) | (353) | (353) |
Recognized net loss due to settlement | 52 | 540 | 135 |
Recognized net actuarial loss | 133 | 272 | 218 |
Net periodic benefit cost | $ 125 | $ 694 | $ 237 |
Employee Benefit Plans - Other
Employee Benefit Plans - Other Plan Changes Recognized in Other Comprehensive (Income) Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan [Abstract] | |||
Net actuarial (gain) loss | $ 64 | $ (1,291) | $ 234 |
Amortization of prior service cost | 0 | 0 | 0 |
Total recognized in other comprehensive (income) loss | 64 | (1,291) | 234 |
Total Recognized in Net Periodic Benefit Cost and Other Comprehensive (Income) Loss | $ 189 | $ (597) | $ 471 |
Employee Benefit Plans - Weight
Employee Benefit Plans - Weighted-average Asset Allocation by Asset Category (Details) | Dec. 31, 2019 | Dec. 31, 2018 |
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 100.00% | 100.00% |
Fixed Income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 61.80% | 68.00% |
Equity | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 27.50% | 25.20% |
Cash and Accrued Income | ||
Defined Benefit Plans and Other Postretirement Benefit Plans Table Text Block [Line Items] | ||
Actual asset allocations | 10.70% | 6.80% |
Employee Benefit Plans - Fair V
Employee Benefit Plans - Fair Value of Pension Plan Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 5,915 | $ 5,653 | $ 7,556 | $ 7,647 |
Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 2,263 | 1,784 | ||
Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 3,652 | 3,869 | ||
Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 636 | 359 | ||
Cash | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 636 | 359 | ||
Cash | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Cash | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Government sponsored entities | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,648 | 2,119 | ||
Government sponsored entities | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Government sponsored entities | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,648 | 2,119 | ||
Government sponsored entities | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Municipal bonds and notes | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,792 | 1,513 | ||
Municipal bonds and notes | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Municipal bonds and notes | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,792 | 1,513 | ||
Municipal bonds and notes | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds and notes | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 212 | 237 | ||
Corporate bonds and notes | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Corporate bonds and notes | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 212 | 237 | ||
Corporate bonds and notes | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,385 | 1,227 | ||
U.S. companies | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 1,385 | 1,227 | ||
U.S. companies | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
U.S. companies | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign companies | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 242 | 198 | ||
Foreign companies | Level 1 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 242 | 198 | ||
Foreign companies | Level 2 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | 0 | 0 | ||
Foreign companies | Level 3 | ||||
Defined Benefit Plan Disclosure [Line Items] | ||||
Fair value of plan assets | $ 0 | $ 0 |
Employee Benefit Plans - Projec
Employee Benefit Plans - Projected Benefit Payments (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Amount | |
2020 | $ 496 |
2021 | 637 |
2022 | 346 |
2023 | 960 |
2024 | 242 |
2025 - 2029 | $ 3,031 |
Fair Value Measurements - Finan
Fair Value Measurements - Financial Assets Measured on a Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets: | ||
Securities available for sale | $ 379,195 | $ 332,653 |
Equity securities | 0 | 1,830 |
U.S. Treasury | ||
Assets: | ||
Securities available for sale | 14,987 | |
Federal agencies and GSEs | ||
Assets: | ||
Securities available for sale | 128,114 | 134,039 |
Mortgage-backed and CMOs | ||
Assets: | ||
Securities available for sale | 184,240 | 111,867 |
State and municipal | ||
Assets: | ||
Securities available for sale | 42,154 | 79,902 |
Corporate | ||
Assets: | ||
Securities available for sale | 9,700 | 6,845 |
Level 1 | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Equity securities | 0 | |
Liabilities: | ||
Derivative - cash flow hedges | 0 | 0 |
Level 2 | ||
Assets: | ||
Securities available for sale | 379,195 | 332,653 |
Equity securities | 1,830 | |
Liabilities: | ||
Derivative - cash flow hedges | 2,658 | 804 |
Level 3 | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Equity securities | 0 | |
Liabilities: | ||
Derivative - cash flow hedges | 0 | 0 |
Recurring | ||
Assets: | ||
Securities available for sale | 379,195 | 332,653 |
Equity securities | 1,830 | |
Liabilities: | ||
Derivative - cash flow hedges | 2,658 | 804 |
Recurring | U.S. Treasury | ||
Assets: | ||
Securities available for sale | 14,987 | |
Recurring | Federal agencies and GSEs | ||
Assets: | ||
Securities available for sale | 128,114 | 134,039 |
Recurring | Mortgage-backed and CMOs | ||
Assets: | ||
Securities available for sale | 184,240 | 111,867 |
Recurring | State and municipal | ||
Assets: | ||
Securities available for sale | 42,154 | 79,902 |
Recurring | Corporate | ||
Assets: | ||
Securities available for sale | 9,700 | 6,845 |
Recurring | Level 1 | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Equity securities | 0 | |
Liabilities: | ||
Derivative - cash flow hedges | 0 | 0 |
Recurring | Level 1 | U.S. Treasury | ||
Assets: | ||
Securities available for sale | 0 | |
Recurring | Level 1 | Federal agencies and GSEs | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Mortgage-backed and CMOs | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | State and municipal | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 1 | Corporate | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 2 | ||
Assets: | ||
Securities available for sale | 379,195 | 332,653 |
Equity securities | 1,830 | |
Liabilities: | ||
Derivative - cash flow hedges | 2,658 | 804 |
Recurring | Level 2 | U.S. Treasury | ||
Assets: | ||
Securities available for sale | 14,987 | |
Recurring | Level 2 | Federal agencies and GSEs | ||
Assets: | ||
Securities available for sale | 128,114 | 134,039 |
Recurring | Level 2 | Mortgage-backed and CMOs | ||
Assets: | ||
Securities available for sale | 184,240 | 111,867 |
Recurring | Level 2 | State and municipal | ||
Assets: | ||
Securities available for sale | 42,154 | 79,902 |
Recurring | Level 2 | Corporate | ||
Assets: | ||
Securities available for sale | 9,700 | 6,845 |
Recurring | Level 3 | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Equity securities | 0 | |
Liabilities: | ||
Derivative - cash flow hedges | 0 | 0 |
Recurring | Level 3 | U.S. Treasury | ||
Assets: | ||
Securities available for sale | 0 | |
Recurring | Level 3 | Federal agencies and GSEs | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Mortgage-backed and CMOs | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | State and municipal | ||
Assets: | ||
Securities available for sale | 0 | 0 |
Recurring | Level 3 | Corporate | ||
Assets: | ||
Securities available for sale | $ 0 | $ 0 |
Fair Value Measurements - Narra
Fair Value Measurements - Narrative (Details) | 12 Months Ended | |
Dec. 31, 2019USD ($)loan | Dec. 31, 2018USD ($) | |
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 - Fin_2
Fair Value Measurements - Financial Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 0 | $ 0 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,027 | 640 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Nonrecurring | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,027 | 640 |
Impaired loans, net of valuation allowance | 759 | 171 |
Other real estate owned, net | 1,308 | 869 |
Nonrecurring | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Nonrecurring | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 2,027 | 640 |
Impaired loans, net of valuation allowance | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Nonrecurring | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 0 | 0 |
Impaired loans, net of valuation allowance | 759 | 171 |
Other real estate owned, net | $ 1,308 | $ 869 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information (Details) - Level 3 | Dec. 31, 2019 | Dec. 31, 2018 |
Discounted appraised value | Selling cost | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired loans | 0.08 | 0.08 |
Other real estate owned | 0.08 | 0.08 |
Discounted cash flow analysis | Market rate for borrower (discount rate) | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired loans | 0.0325 | 0.0325 |
Discounted cash flow analysis | Market rate for borrower (discount rate) | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Impaired loans | 0.098 | 0.098 |
Fair Value Measurements - Balan
Fair Value Measurements - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Assets: | ||
Equity securities, at fair value | $ 0 | $ 1,830 |
Securities available for sale, at fair value | 379,195 | 332,653 |
Level 1 | ||
Financial Assets: | ||
Cash and cash equivalents | 79,582 | 64,255 |
Equity securities, at fair value | 0 | |
Securities available for sale, at fair value | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
Junior subordinated debt | 0 | |
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 | 1,830 | |
Securities available for sale, at fair value | 379,195 | 332,653 |
Restricted stock | 8,630 | 5,247 |
Loans held for sale | 2,027 | 640 |
Loans, net of allowance | 0 | 0 |
Bank owned life insurance | 27,817 | 18,941 |
Accrued interest receivable | 6,625 | 5,449 |
Financial Liabilities: | ||
Deposits | 2,062,823 | 1,570,721 |
Repurchase agreements | 40,475 | 35,243 |
Junior subordinated debt | 0 | |
Accrued interest payable | 1,213 | 795 |
Derivative - cash flow hedges | 2,658 | 804 |
Level 3 | ||
Financial Assets: | ||
Cash and cash equivalents | 0 | 0 |
Equity securities, at fair value | 0 | |
Securities available for sale, at fair value | 0 | 0 |
Restricted stock | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowance | 1,818,655 | 1,334,236 |
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial Liabilities: | ||
Deposits | 0 | 0 |
Repurchase agreements | 0 | 0 |
Junior subordinated debt | 22,577 | |
Accrued interest payable | 0 | 0 |
Derivative - cash flow hedges | 0 | 0 |
Carrying Value | ||
Financial Assets: | ||
Cash and cash equivalents | 79,582 | 64,255 |
Equity securities, at fair value | 1,830 | |
Securities available for sale, at fair value | 379,195 | 332,653 |
Restricted stock | 8,630 | 5,247 |
Loans held for sale | 2,027 | 640 |
Loans, net of allowance | 1,817,663 | 1,344,671 |
Bank owned life insurance | 27,817 | 18,941 |
Accrued interest receivable | 6,625 | 5,449 |
Financial Liabilities: | ||
Deposits | 2,060,547 | 1,566,227 |
Repurchase agreements | 40,475 | 35,243 |
Junior subordinated debt | 27,927 | |
Accrued interest payable | 1,213 | 795 |
Derivative - cash flow hedges | 2,658 | 804 |
Fair Value Balance | ||
Financial Assets: | ||
Cash and cash equivalents | 79,582 | 64,255 |
Equity securities, at fair value | 1,830 | |
Securities available for sale, at fair value | 379,195 | 332,653 |
Restricted stock | 8,630 | 5,247 |
Loans held for sale | 2,027 | 640 |
Loans, net of allowance | 1,818,655 | 1,334,236 |
Bank owned life insurance | 27,817 | 18,941 |
Accrued interest receivable | 6,625 | 5,449 |
Financial Liabilities: | ||
Deposits | 2,062,823 | 1,570,721 |
Repurchase agreements | 40,475 | 35,243 |
Junior subordinated debt | 22,577 | |
Accrued interest payable | 1,213 | 795 |
Derivative - cash flow hedges | 2,658 | $ 804 |
Subordinated Debt | Level 1 | ||
Financial Liabilities: | ||
Junior subordinated debt | 0 | |
Subordinated Debt | Level 2 | ||
Financial Liabilities: | ||
Junior subordinated debt | 8,525 | |
Subordinated Debt | Level 3 | ||
Financial Liabilities: | ||
Junior subordinated debt | 0 | |
Subordinated Debt | Carrying Value | ||
Financial Liabilities: | ||
Junior subordinated debt | 7,517 | |
Subordinated Debt | Fair Value Balance | ||
Financial Liabilities: | ||
Junior subordinated debt | 8,525 | |
Junior Subordinated Debt Securities | Level 1 | ||
Financial Liabilities: | ||
Junior subordinated debt | 0 | |
Junior Subordinated Debt Securities | Level 2 | ||
Financial Liabilities: | ||
Junior subordinated debt | 0 | |
Junior Subordinated Debt Securities | Level 3 | ||
Financial Liabilities: | ||
Junior subordinated debt | 22,697 | |
Junior Subordinated Debt Securities | Carrying Value | ||
Financial Liabilities: | ||
Junior subordinated debt | 28,029 | |
Junior Subordinated Debt Securities | Fair Value Balance | ||
Financial Liabilities: | ||
Junior subordinated debt | $ 22,697 |
Dividend Restrictions and Reg_3
Dividend Restrictions and Regulatory Capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure of Restrictions on Dividends, Loans and Advances Disclosure [Abstract] | ||
Amount available for dividend distribution without prior approval from regulatory agency (up to) | $ 21,768 | |
Period of additional year with retained income In excess of dividends declared | 2 years | |
Company | ||
Common Equity Tier 1 Capital, Amount [Abstract] | ||
Actual Amount | $ 228,554 | $ 183,579 |
Required for Capital Adequacy Purposes, Amount | $ 88,968 | $ 65,843 |
Common Equity Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 11.56% | 12.55% |
Required for Capital Adequacy Purposes, Ratio | 7.00% | 6.375% |
Tier 1 Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 256,583 | $ 211,506 |
Required for Capital Adequacy Purposes, Amount | $ 118,624 | $ 87,791 |
Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 12.98% | 14.46% |
Required for Capital Adequacy Purposes, Ratio | 8.50% | 7.875% |
Total Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 277,581 | $ 224,528 |
Required for Capital Adequacy Purposes, Amount | $ 158,166 | $ 117,054 |
Total Capital, Ratios [Abstract] | ||
Actual Ratio | 14.04% | 15.35% |
Required for Capital Adequacy Purposes, Ratio | 10.50% | 9.875% |
Leverage Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 256,583 | $ 211,506 |
Required for Capital Adequacy Purposes, Amount | $ 95,514 | $ 72,817 |
Leverage Capital, Ratios [Abstract] | ||
Actual Ratio | 10.75% | 11.62% |
Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
Bank | ||
Common Equity Tier 1 Capital, Amount [Abstract] | ||
Actual Amount | $ 243,449 | $ 198,991 |
Required for Capital Adequacy Purposes, Amount | 137,698 | 92,740 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 127,862 | $ 94,559 |
Common Equity Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 12.38% | 13.68% |
Required for Capital Adequacy Purposes, Ratio | 7.00% | 6.375% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 6.50% | 6.50% |
Tier 1 Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 243,449 | $ 198,991 |
Required for Capital Adequacy Purposes, Amount | 167,205 | 114,561 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 157,369 | $ 116,380 |
Tier 1 Capital, Ratios [Abstract] | ||
Actual Ratio | 12.38% | 13.68% |
Required for Capital Adequacy Purposes, Ratio | 8.50% | 7.875% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 8.00% | 8.00% |
Total Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 256,930 | $ 212,013 |
Required for Capital Adequacy Purposes, Amount | 206,547 | 143,656 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 196,712 | $ 145,475 |
Total Capital, Ratios [Abstract] | ||
Actual Ratio | 13.06% | 14.57% |
Required for Capital Adequacy Purposes, Ratio | 10.50% | 9.875% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 10.00% | 10.00% |
Leverage Capital, Actual Amount [Abstract] | ||
Actual Amount | $ 243,449 | $ 198,991 |
Required for Capital Adequacy Purposes, Amount | 94,972 | 72,422 |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 118,715 | $ 90,528 |
Leverage Capital, Ratios [Abstract] | ||
Actual Ratio | 10.25% | 10.99% |
Required for Capital Adequacy Purposes, Ratio | 4.00% | 4.00% |
To Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 5.00% | 5.00% |
Segment and Related Informati_3
Segment and Related Information (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)segment | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Segment Reporting [Abstract] | |||
Number of reportable segments | segment | 2 | ||
Segment Reporting Information [Line Items] | |||
Interest income | $ 92,855 | $ 68,768 | $ 63,038 |
Interest expense | 15,728 | 9,674 | 7,291 |
Noninterest income | 15,170 | 13,274 | 14,227 |
Income (loss) before income taxes | 25,767 | 28,225 | 26,075 |
Net income (loss) | 20,906 | 22,579 | 15,249 |
Depreciation and amortization | 3,462 | 2,040 | 2,405 |
Total assets | 2,478,550 | 1,862,866 | 1,816,078 |
Goodwill | 84,002 | 43,872 | 43,872 |
Capital expenditures | 3,555 | 2,723 | 2,648 |
Operating Segments | Community Banking | |||
Segment Reporting Information [Line Items] | |||
Interest income | 92,404 | 68,388 | 62,697 |
Interest expense | 13,803 | 8,272 | 6,263 |
Noninterest income | 10,230 | 8,619 | 9,224 |
Income (loss) before income taxes | 26,888 | 28,000 | 24,828 |
Net income (loss) | 21,858 | 22,381 | 14,456 |
Depreciation and amortization | 3,454 | 2,030 | 2,393 |
Total assets | 2,464,860 | 1,853,057 | 1,806,647 |
Goodwill | 84,002 | 43,872 | 43,872 |
Capital expenditures | 3,534 | 2,723 | 2,637 |
Operating Segments | Trust and Investment Services | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Noninterest income | 4,568 | 4,579 | 4,756 |
Income (loss) before income taxes | 2,288 | 2,165 | 2,521 |
Net income (loss) | 1,856 | 1,731 | 1,486 |
Depreciation and amortization | 8 | 10 | 12 |
Total assets | 0 | 0 | 0 |
Goodwill | 0 | 0 | 0 |
Capital expenditures | 21 | 0 | 11 |
Other | |||
Segment Reporting Information [Line Items] | |||
Interest income | 451 | 380 | 341 |
Interest expense | 1,925 | 1,402 | 1,028 |
Noninterest income | 372 | 76 | 247 |
Income (loss) before income taxes | (3,409) | (1,940) | (1,274) |
Net income (loss) | (2,808) | (1,533) | (693) |
Depreciation and amortization | 0 | 0 | 0 |
Total assets | 358,601 | 251,434 | 236,644 |
Goodwill | 0 | 0 | 0 |
Capital expenditures | 0 | 0 | 0 |
Intersegment Eliminations | |||
Segment Reporting Information [Line Items] | |||
Interest income | 0 | 0 | 0 |
Interest expense | 0 | 0 | 0 |
Noninterest income | 0 | 0 | 0 |
Income (loss) before income taxes | 0 | 0 | 0 |
Net income (loss) | 0 | 0 | 0 |
Depreciation and amortization | 0 | 0 | 0 |
Total assets | (344,911) | (241,625) | (227,213) |
Goodwill | 0 | 0 | 0 |
Capital expenditures | $ 0 | $ 0 | $ 0 |
Parent Company Financial Info_3
Parent Company Financial Information - Consolidated Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Consolidated Balance Sheets [Abstract] | ||||
Equity securities, at fair value | $ 0 | $ 1,830 | ||
Securities available for sale, at fair value | 379,195 | 332,653 | ||
Total assets | 2,478,550 | 1,862,866 | $ 1,816,078 | |
Subordinated debt | 7,517 | 0 | ||
Junior subordinated debt | 28,029 | 27,927 | ||
Shareholders' equity | 320,258 | 222,542 | $ 208,717 | $ 201,380 |
Total liabilities and shareholders' equity | 2,478,550 | 1,862,866 | ||
Parent Company | ||||
Consolidated Balance Sheets [Abstract] | ||||
Cash | 11,127 | 3,596 | ||
Equity securities, at fair value | 0 | 1,830 | ||
Securities available for sale, at fair value | 8,683 | 6,361 | ||
Investment in subsidiaries | 337,983 | 239,413 | ||
Due from subsidiaries | 134 | 170 | ||
Other assets | 674 | 64 | ||
Total assets | 358,601 | 251,434 | ||
Subordinated debt | 7,517 | 0 | ||
Junior subordinated debt | 28,029 | 27,927 | ||
Other liabilities | 2,797 | 965 | ||
Shareholders' equity | 320,258 | 222,542 | ||
Total liabilities and shareholders' equity | $ 358,601 | $ 251,434 |
Parent Company Financial Info_4
Parent Company Financial Information - Consolidated Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiary | $ 451 | $ 321 | $ 319 |
Income tax benefit | 4,861 | 5,646 | 10,826 |
Net Income | 20,906 | 22,579 | 15,249 |
Parent Company | |||
Condensed Financial Statements, Captions [Line Items] | |||
Dividends from subsidiary | 25,000 | 11,000 | 6,000 |
Other income | 823 | 456 | 588 |
Expenses | 4,232 | 2,396 | 1,862 |
Income tax benefit | (601) | (407) | (581) |
Income before equity in undistributed earnings of subsidiary | 22,192 | 9,467 | 5,307 |
Equity in undistributed earnings of subsidiary | (1,286) | 13,112 | 9,942 |
Net Income | $ 20,906 | $ 22,579 | $ 15,249 |
Parent Company Financial Info_5
Parent Company Financial Information - Consolidated Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash Flows from Operating Activities: | |||
Net income | $ 20,906 | $ 22,579 | $ 15,249 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of securities | (274) | (81) | (812) |
Net change in other assets | 10,157 | (100) | (379) |
Net change in other liabilities | (780) | 723 | 284 |
Net cash provided by operating activities | 32,680 | 27,502 | 25,751 |
Cash Flows from Investing Activities: | |||
Purchases of securities available for sale | (155,746) | (106,575) | (84,931) |
Proceeds from sales of equity securities | 445 | 431 | 0 |
Proceeds from sales of securities | 29,878 | 57,607 | 55,903 |
Cash acquired in bank acquisition | 26,283 | 0 | 0 |
Net cash used in investing activities | (4,570) | (39,901) | (147,856) |
Cash Flows from Financing Activities: | |||
Common stock dividends paid | (10,965) | (8,702) | (8,384) |
Repurchase of common stock | (3,146) | 0 | 0 |
Proceeds from exercise of stock options | 688 | 861 | 113 |
Net cash (used in) provided by financing activities | (12,783) | 24,177 | 121,375 |
Net Increase (Decrease) in Cash and Cash Equivalents | 15,327 | 11,778 | (730) |
Cash and Cash Equivalents at Beginning of Period | 64,255 | 52,477 | 53,207 |
Cash and Cash Equivalents at End of Period | 79,582 | 64,255 | 52,477 |
Parent Company | |||
Cash Flows from Operating Activities: | |||
Net income | 20,906 | 22,579 | 15,249 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Gain on sale of securities | 0 | 0 | (221) |
Equity in (undistributed) distributions of subsidiary | 1,286 | (13,112) | (9,942) |
Net change in other assets | (382) | (194) | 83 |
Net change in other liabilities | (35) | 136 | (82) |
Net cash provided by operating activities | 21,775 | 9,409 | 5,087 |
Cash Flows from Investing Activities: | |||
Purchases of securities available for sale | (2,220) | 0 | (373) |
Proceeds from sales of equity securities | 445 | 431 | 0 |
Proceeds from sales of securities | 0 | 0 | 500 |
Cash paid in bank acquisition | (27) | 0 | 0 |
Cash acquired in bank acquisition | 981 | 0 | 0 |
Net cash used in investing activities | (821) | 431 | 127 |
Cash Flows from Financing Activities: | |||
Common stock dividends paid | (10,965) | (8,702) | (8,384) |
Repurchase of common stock | (3,146) | 0 | 0 |
Proceeds from exercise of stock options | 688 | 861 | 113 |
Net cash (used in) provided by financing activities | (13,423) | (7,841) | (8,271) |
Net Increase (Decrease) in Cash and Cash Equivalents | 7,531 | 1,999 | (3,057) |
Cash and Cash Equivalents at Beginning of Period | 3,596 | 1,597 | 4,654 |
Cash and Cash Equivalents at End of Period | $ 11,127 | $ 3,596 | $ 1,597 |
Concentrations of Credit Risk (
Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Concentration Risk [Line Items] | ||
Loans secure to total loans portfolio | $ 1,817,663 | $ 1,344,671 |
Real Estate | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Loans secure to total loans portfolio | $ 1,480,857 | $ 1,066,411 |
Percentage of loans secure to total loans portfolio | 80.90% | 78.60% |
Commercial Real Estate | Credit Concentration Risk | ||
Concentration Risk [Line Items] | ||
Loans secure to total loans portfolio | $ 899,199 | $ 655,800 |
Percentage of loans secure to total loans portfolio | 49.10% | 48.30% |
Supplemental Cash Flow Inform_3
Supplemental Cash Flow Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Supplemental Schedule of Cash and Cash Equivalents: | |||
Cash and due from banks | $ 32,505 | $ 29,587 | $ 28,594 |
Interest-bearing deposits in other banks | 47,077 | 34,668 | 23,883 |
Cash and cash equivalents | 79,582 | 64,255 | 52,477 |
Cash paid for: | |||
Interest on deposits and borrowed funds | 15,310 | 9,553 | 7,240 |
Income taxes | 4,698 | 5,056 | 7,653 |
Noncash investing and financing activities: | |||
Transfer of loans to other real estate owned | 234 | 599 | 1,233 |
Transfer from premises and equipment to other assets | 445 | ||
Increase in operating lease right-of-use asset | 4,453 | ||
Increase in operating lease liability | 4,453 | ||
Unrealized gains (losses) on securities available for sale | 8,821 | (3,290) | (777) |
Unrealized losses on cash flow hedges | (1,854) | ||
Unrealized losses on cash flow hedges | (804) | 0 | |
Change in unfunded pension liability | (64) | 1,291 | (234) |
Assets acquired: | |||
Investment securities | 34,876 | 0 | 0 |
Restricted stock | 2,588 | 0 | 0 |
Loans | 444,324 | 0 | 0 |
Premises and equipment | 12,554 | 0 | 0 |
Deferred income taxes | 2,960 | 0 | 0 |
Core deposit intangible | 8,200 | 0 | 0 |
Other real estate owned | 1,442 | 0 | 0 |
Bank owned life insurance | 8,246 | 0 | 0 |
Other assets | 14,244 | 0 | 0 |
Liabilities assumed: | |||
Deposits | 483,626 | 0 | 0 |
Short-term FHLB advances | 14,883 | ||
Long-term FHLB advances | 778 | ||
Subordinated debt | 7,530 | ||
Other liabilities | 5,780 | 0 | 0 |
Consideration: | |||
Issuance of common stock | 82,470 | 0 | 0 |
Fair value of replacement stock options/restricted stock | $ 753 | $ 0 | $ 0 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Schedule of Components of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | $ 222,542 | $ 208,717 | $ 201,380 |
Net unrealized gains (losses) on securities available for sale, net of tax | 7,090 | (2,464) | 23 |
Reclassification adjustment for realized gains on securities, net of tax | (215) | (63) | (528) |
Net unrealized losses on cash flow hedges, net of tax, $(394) | (1,460) | ||
Change in unfunded pension liability, net of tax | 5,352 | (2,109) | (657) |
Reclassification of stranded tax effects from tax rate change | (545) | ||
Ending Balance | 320,258 | 222,542 | 208,717 |
Net unrealized losses on cash flow hedges, tax | (394) | (180) | |
Reclassification adjustment for realized gains on securities, tax | (59) | (18) | (284) |
Net unrealized gains on securities available for sale, tax | 2,005 | (745) | 12 |
Change in unfunded pension liability, tax | (1) | 249 | (82) |
Net Unrealized Gains (Losses) on Securities | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (3,973) | (796) | (150) |
Net unrealized gains (losses) on securities available for sale, net of tax | 7,090 | (2,464) | 23 |
Reclassification adjustment for realized gains on securities, net of tax | (215) | (63) | (528) |
Reclassification for ASU 2016-01 adoption | (650) | ||
Reclassification of stranded tax effects from tax rate change | (141) | ||
Ending Balance | 2,902 | (3,973) | (796) |
Unrealized Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | 0 | 0 | |
Net unrealized losses on cash flow hedges, net of tax, $(180) | (624) | ||
Ending Balance | 0 | ||
Unrealized Losses on Cash Flow Hedges | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (624) | ||
Net unrealized losses on cash flow hedges, net of tax, $(394) | (1,460) | ||
Ending Balance | (2,084) | (624) | |
Adjustments Related to Pension Benefits | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (1,238) | (2,280) | (1,724) |
Change in unfunded pension liability, net of tax | 63 | 1,042 | (152) |
Reclassification of stranded tax effects from tax rate change | (404) | ||
Ending Balance | (1,301) | (1,238) | (2,280) |
Accumulated Other Comprehensive Income (Loss) | |||
Accumulated Other Comprehensive Income (Loss), Net of Tax [Roll Forward] | |||
Beginning Balance | (5,835) | (3,076) | (1,874) |
Net unrealized losses on cash flow hedges, net of tax, $(180) | (624) | ||
Change in unfunded pension liability, net of tax | 5,352 | (2,109) | (657) |
Reclassification for ASU 2016-01 adoption | (650) | ||
Reclassification of stranded tax effects from tax rate change | (545) | ||
Ending Balance | $ (483) | $ (5,835) | $ (3,076) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Income (Loss) - Reclassifications Out of AOCI (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Securities gains, net | $ 607 | $ 123 | $ 812 |
Income taxes | (4,861) | (5,646) | (10,826) |
Net Income | 20,906 | 22,579 | 15,249 |
Reclassification of stranded tax effects from tax rate change | (545) | ||
Total reclassifications | 215 | 63 | 528 |
Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects from tax rate change | 0 | 0 | 141 |
Reclassification for ASU 2016-01 adoption | 0 | 650 | 0 |
Total reclassifications | 215 | 713 | 1,073 |
Realized gain on sale of securities | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects from tax rate change | (141) | ||
Reclassification for ASU 2016-01 adoption | (650) | ||
Total reclassifications | 215 | 63 | 528 |
Realized gain on sale of securities | Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Securities gains, net | 274 | 81 | 812 |
Income taxes | (59) | (18) | (284) |
Net Income | 215 | 63 | 528 |
Adjustments Related to Pension Benefits | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Reclassification of stranded tax effects from tax rate change | (404) | ||
Adjustments Related to Pension Benefits | Amount Reclassified from AOCI | |||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | |||
Total reclassifications | $ 0 | $ 0 | $ 404 |
Uncategorized Items - amnb-2019
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 650,000 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (650,000) |