Document And Entity Information
Document And Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 09, 2020 | |
Document Information Line Items | ||
Entity Registrant Name | SB FINANCIAL GROUP, INC. | |
Document Type | 10-Q | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 7,546,804 | |
Amendment Flag | false | |
Entity Central Index Key | 0000767405 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Document Period End Date | Sep. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q3 | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity File Number | 1-36785 | |
Entity Incorporation, State or Country Code | OH | |
Entity Interactive Data Current | Yes |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 94,641 | $ 27,064 |
Interest bearing time deposits | 8,956 | |
Available-for-sale securities | 130,315 | 100,948 |
Loans held for sale | 13,943 | 7,258 |
Loans, net of unearned income | 885,850 | 825,510 |
Allowance for loan losses | (11,793) | (8,755) |
Premises and equipment, net | 23,785 | 23,385 |
Federal Reserve and Federal Home Loan Bank Stock, at cost | 5,303 | 4,648 |
Foreclosed assets held for sale, net | 76 | 305 |
Interest receivable | 4,159 | 3,106 |
Goodwill | 22,091 | 17,792 |
Cash value of life insurance | 17,453 | 17,221 |
Mortgage servicing rights | 8,535 | 11,017 |
Other assets | 14,927 | 9,078 |
Total assets | 1,218,241 | 1,038,577 |
Deposits | ||
Non interest bearing demand | 225,003 | 158,357 |
Interest bearing demand | 164,248 | 131,084 |
Savings | 169,474 | 119,359 |
Money market | 204,862 | 173,666 |
Time deposits | 250,428 | 257,753 |
Total deposits | 1,014,015 | 840,219 |
Short term borrowings | 20,710 | 12,945 |
Federal Home Loan Bank advances | 8,000 | 16,000 |
Trust preferred securities | 10,310 | 10,310 |
Interest payable | 946 | 1,191 |
Other liabilities | 22,913 | 21,818 |
Total liabilities | 1,076,894 | 902,483 |
Commitments & Contingent Liabilities | ||
Shareholders’ Equity | ||
Common stock, no par value; (authorized 10,000,000 shares; 2020 - 8,180,712 shares issued, 2019 - 8,180,712 shares issued) | 54,463 | 54,463 |
Additional paid-in capital | 14,782 | 15,023 |
Retained earnings | 80,012 | 72,704 |
Accumulated other comprehensive income | 2,221 | 659 |
Treasury stock, at cost; (2020 - 599,440 common shares, 2019 - 417,785 common shares) | (10,131) | (6,755) |
Total shareholders’ equity | 141,347 | 136,094 |
Total liabilities and shareholders’ equity | $ 1,218,241 | $ 1,038,577 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parentheticals) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in Dollars per share) | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,180,712 | 8,180,712 |
Treasury stock shares | 599,440 | 417,785 |
Condensed Consolidated Income S
Condensed Consolidated Income Statement (Unaudited) - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Loans | |||||
Taxable | $ 10,179 | $ 10,607 | $ 29,919 | $ 30,216 | |
Tax exempt | 47 | 82 | 185 | 217 | |
Securities | |||||
Taxable | 494 | 776 | 1,696 | 2,489 | |
Tax exempt | 87 | 81 | 246 | 273 | |
Total interest income | 10,807 | 11,546 | 32,046 | 33,195 | |
Interest Expense | |||||
Deposits | 1,423 | 2,258 | 4,852 | 6,268 | |
Repurchase agreements & other | 12 | 22 | 60 | 65 | |
Federal Home Loan Bank advance expense | 59 | 101 | 251 | 301 | |
Trust preferred securities expense | 54 | 107 | 204 | 331 | |
Total interest expense | 1,548 | 2,488 | 5,367 | 6,965 | |
Net Interest Income | 9,259 | 9,058 | 26,679 | 26,230 | |
Provision for loan losses | 1,800 | 300 | 3,700 | 500 | |
Net interest income after provision for loan losses | 7,459 | 8,758 | 22,979 | 25,730 | |
Noninterest Income | |||||
Wealth management fees | 839 | 775 | 2,382 | 2,292 | |
Customer service fees | 730 | 729 | 2,079 | 2,049 | |
Gain on sale of mortgage loans & OMSR | 8,085 | 2,495 | 18,153 | 5,365 | |
Mortgage loan servicing fees, net | (169) | 8 | (4,101) | (731) | |
Gain on sale of non-mortgage loans | 119 | 462 | 330 | 1,005 | |
Title insurance income | 517 | 400 | 1,391 | 727 | |
Net gain on sale of securities | 206 | ||||
Loss on sale/disposal of assets | (52) | 1 | (178) | (6) | |
Other income | 349 | 496 | 1,138 | 1,150 | |
Total noninterest income | 10,418 | 5,366 | 21,194 | 12,057 | |
Noninterest Expense | |||||
Salaries and employee benefits | 6,995 | 5,715 | 18,841 | 15,922 | |
Net occupancy expense | 736 | 656 | 2,109 | 1,928 | |
Equipment expense | 888 | 688 | 2,368 | 2,064 | |
Data processing fees | 586 | 499 | 2,422 | 1,430 | |
Professional fees | 695 | 571 | 2,676 | 1,837 | |
Marketing expense | 137 | 239 | 486 | 724 | |
Telephone and communications | 142 | 118 | 379 | 345 | |
Postage and delivery expense | 96 | 89 | 307 | 254 | |
State, local and other taxes | 331 | 243 | 847 | 745 | |
Employee expense | 155 | 199 | 432 | 588 | |
Other expenses | 574 | 483 | 1,536 | 1,397 | |
Total noninterest expense | 11,335 | 9,500 | 32,403 | 27,234 | |
Income before income tax | 6,542 | 4,624 | 11,770 | 10,553 | |
Provision for income taxes | [1] | 1,292 | 862 | 2,184 | 1,938 |
Net income | 5,250 | 3,762 | 9,586 | 8,615 | |
Preferred share dividends | 233 | 720 | |||
Net income available to common shareholders | $ 5,250 | $ 3,529 | $ 9,586 | $ 7,895 | |
Basic earnings per common share (in Dollars per share) | $ 0.69 | $ 0.55 | $ 1.25 | $ 1.22 | |
Diluted earnings per common share (in Dollars per share) | $ 0.69 | $ 0.48 | $ 1.25 | $ 1.08 | |
Average common shares outstanding (in thousands): | |||||
Basic: (in Shares) | 7,607 | 6,397 | 7,700 | 6,459 | |
Diluted: (in Shares) | 7,607 | 7,876 | 7,700 | 7,955 | |
[1] | Income tax expense for Edon calculated using a 21% statuatory rate |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 5,250 | $ 3,762 | $ 9,586 | $ 8,615 |
Available for sale investment securities: | ||||
Unrealized holding gain (loss) arising in the period | (125) | 125 | 1,977 | 2,045 |
Related tax expense (benefit) | 26 | (26) | (415) | (429) |
Less: Reclassification for gain realized in income | (206) | |||
Related tax expense | 42 | |||
Net effect on other comprehensive income | (99) | 99 | 1,562 | 1,452 |
Total comprehensive income | $ 5,151 | $ 3,861 | $ 11,148 | $ 10,067 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Shareholders’ Equity (unaudited) - USD ($) $ in Thousands | Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Treasury Stock | Total |
Balance at Dec. 31, 2018 | $ 13,979 | $ 40,485 | $ 15,226 | $ 64,012 | $ (552) | $ (2,715) | $ 130,435 |
Net income | 2,226 | 2,226 | |||||
Other comprehensive income (loss) | 676 | 676 | |||||
Conversion of preferred to common | (1) | 1 | |||||
Stock reissue for purchase of Peak Title | 22 | 117 | 139 | ||||
Dividends on common, per share | (556) | (556) | |||||
Dividends on preferred, $0.1625 per share | (244) | (244) | |||||
Restricted stock vesting | (208) | 208 | |||||
Stock options exercised | (10) | 21 | 11 | ||||
Repurchased stock | (1,294) | (1,294) | |||||
Stock based compensation expense | 113 | 113 | |||||
Balance at Mar. 31, 2019 | 13,978 | 40,486 | 15,143 | 65,438 | 124 | (3,663) | 131,506 |
Balance at Dec. 31, 2018 | 13,979 | 40,485 | 15,226 | 64,012 | (552) | (2,715) | 130,435 |
Net income | 8,615 | ||||||
Balance at Sep. 30, 2019 | 13,241 | 41,223 | 15,219 | 70,184 | 900 | (6,521) | 134,246 |
Balance at Mar. 31, 2019 | 13,978 | 40,486 | 15,143 | 65,438 | 124 | (3,663) | 131,506 |
Net income | 2,627 | 2,627 | |||||
Other comprehensive income (loss) | 677 | 677 | |||||
Dividends on common, per share | (586) | (586) | |||||
Dividends on preferred, $0.1625 per share | (243) | (243) | |||||
Stock options exercised | (24) | 43 | 19 | ||||
Repurchased stock | (203) | (203) | |||||
Stock based compensation expense | 140 | 140 | |||||
Balance at Jun. 30, 2019 | 13,978 | 40,486 | 15,259 | 67,236 | 801 | (3,823) | 133,937 |
Net income | 3,762 | 3,762 | |||||
Other comprehensive income (loss) | 99 | 99 | |||||
Common stock issuance | (737) | 737 | |||||
Dividends on common, per share | (581) | (581) | |||||
Dividends on preferred, $0.1625 per share | (233) | (233) | |||||
Restricted stock vesting | (113) | 113 | |||||
Stock options exercised | (20) | 36 | 16 | ||||
Repurchased stock | (2,847) | (2,847) | |||||
Stock based compensation expense | 93 | 93 | |||||
Balance at Sep. 30, 2019 | 13,241 | 41,223 | 15,219 | 70,184 | 900 | (6,521) | 134,246 |
Balance at Dec. 31, 2019 | 54,463 | 15,023 | 72,704 | 659 | (6,755) | 136,094 | |
Net income | 681 | 681 | |||||
Other comprehensive income (loss) | 1,390 | 1,390 | |||||
Dividends on common, per share | (744) | (744) | |||||
Restricted stock vesting | (225) | 225 | |||||
Stock options exercised | (253) | 441 | 188 | ||||
Repurchased stock | (1,814) | (1,814) | |||||
Stock based compensation expense | 110 | 110 | |||||
Balance at Mar. 31, 2020 | 54,463 | 14,655 | 72,641 | 2,049 | (7,903) | 135,905 | |
Balance at Dec. 31, 2019 | 54,463 | 15,023 | 72,704 | 659 | (6,755) | 136,094 | |
Net income | 9,586 | ||||||
Balance at Sep. 30, 2020 | 54,463 | 14,782 | 80,012 | 2,221 | (10,131) | 141,347 | |
Balance at Mar. 31, 2020 | 54,463 | 14,655 | 72,641 | 2,049 | (7,903) | 135,905 | |
Net income | 3,655 | 3,655 | |||||
Other comprehensive income (loss) | 271 | 271 | |||||
Dividends on common, per share | (770) | (770) | |||||
Repurchased stock | (1,305) | (1,305) | |||||
Stock based compensation expense | 125 | 125 | |||||
Balance at Jun. 30, 2020 | 54,463 | 14,780 | 75,526 | 2,320 | (9,208) | 137,881 | |
Net income | 5,250 | 5,250 | |||||
Other comprehensive income (loss) | (99) | (99) | |||||
Dividends on common, per share | (764) | (764) | |||||
Restricted stock vesting | (82) | 82 | |||||
Repurchased stock | (1,005) | (1,005) | |||||
Stock based compensation expense | 84 | 84 | |||||
Balance at Sep. 30, 2020 | $ 54,463 | $ 14,782 | $ 80,012 | $ 2,221 | $ (10,131) | $ 141,347 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders’ Equity (unaudited) (Parentheticals) - $ / shares | 3 Months Ended | |||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | |
Statement of Stockholders' Equity [Abstract] | ||||||
Dividends common stock, per share amount | $ 0.10 | $ 0.10 | $ 0.095 | $ 0.900 | $ 0.900 | $ 0.085 |
Dividends preferred stock, per share amount | $ 0.1625 | $ 0.1625 | $ 0.1625 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows (unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Operating Activities | ||
Net Income | $ 9,586 | $ 8,615 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 1,440 | 1,386 |
Provision for loan losses | 3,700 | 500 |
Expense of share-based compensation plan | 319 | 346 |
Amortization of premiums and discounts on securities | 415 | 213 |
Amortization of intangible assets | 28 | 6 |
Amortization of originated mortgage servicing rights | 3,479 | 1,415 |
Impairment of mortgage servicing rights | 2,974 | 1,398 |
Proceeds from sale of loans held for sale | 455,305 | 244,716 |
Originations of loans held for sale | (447,575) | (249,061) |
Gain from sale of loans | (18,483) | (6,370) |
Loss (gain) on sales of assets | 177 | 5 |
Net change in foreclosed assets | 6 | |
Net gains on sales of securities | (206) | |
Changes in | ||
Interest receivable | (1,053) | (354) |
Other assets | (5,570) | (5,598) |
Interest payable & other liabilities | 627 | 6,636 |
Net cash provided by operating activities | 5,369 | 3,653 |
Investing Activities | ||
Purchases of available-for-sale securities | (98,020) | (8,840) |
Proceeds from maturities of interest bearing time deposits | 2,586 | |
Proceeds from maturities of available-for-sale securities | 71,578 | 17,237 |
Proceeds from sales of available-for-sale securities | 7,375 | |
Net change in loans | (44,814) | (51,171) |
Purchase of premises, equipment | (1,586) | (2,047) |
Proceeds from sales of premises, equipment | 8 | |
Purchase of bank owned life insurance | (50) | |
Purchase of Federal Reserve and Federal Home Loan Bank Stock | (538) | (525) |
Proceeds from sale of foreclosed assets | 445 | 146 |
Net cash and cash equivalents (paid) received in acquisition | 16,263 | (2,600) |
Net cash used in investing activities | (54,086) | (40,467) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking & savings accounts | 139,626 | 18,725 |
Net increase (decrease) in certificates of deposit | (16,883) | 26,677 |
Net increase (decrease) in short term borrowings | 7,765 | (525) |
Proceeds from Federal Home Loan Bank advances | 8,000 | |
Repayment of Federal Home Loan Bank advances | (8,000) | (8,000) |
Net proceeds from share-based compensation plans | 188 | 46 |
Stock repurchase plan | (4,124) | (4,344) |
Issuance of common shares | 139 | |
Dividends on common shares | (2,278) | (1,723) |
Dividends on preferred shares | (720) | |
Net cash provided by financing activities | 116,294 | 38,275 |
Increase in cash and cash equivalents | 67,577 | 1,461 |
Cash and cash equivalents, beginning of period | 27,064 | 48,363 |
Cash and cash equivalents, end of period | 94,641 | 49,824 |
Supplemental cash flow information | ||
Interest paid | 5,612 | 6,483 |
Income taxes paid | 2,715 | 4,230 |
Fair value of assets acquired - premises and equipment (Peak Title) | 1,161 | |
Supplemental non-cash disclosure | ||
Initial recognition of right-of-use lease assets | 293 | |
Transfer of loans to foreclosed assets | 207 | 517 |
In conjunction with the Edon acquisition, liabilities assumed were: | ||
Fair value of assets acquired | 66,795 | |
Cash paid in acquisition | (15,519) | |
Liabilities assumed | $ 51,276 |
Basis of Presentation
Basis of Presentation | 9 Months Ended |
Sep. 30, 2020 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | NOTE 1—BASIS OF PRESENTATION SB Financial Group, Inc., an Ohio corporation (the “Company”), is a financial holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries, The State Bank and Trust Company (“State Bank”), RFCBC, Inc. (“RFCBC”), Rurbanc Data Services, Inc. dba RDSI Banking Systems (“RDSI”), and Rurban Statutory Trust II (“RST II”). RDSI is presently inactive and has had no material operations or employees since January 1, 2018. In addition, State Bank owns all of the outstanding stock of Rurban Mortgage Company (“RMC”), which is inactive, and State Bank Insurance, LLC (“SBI”). In June 2020, the Company acquired Edon Bancorp (“Edon”) and its subsidiary, The Edon State Bank Company of Edon, Ohio. This acquisition was completed effective June 5, 2020, and the acquisition resulted in an increase in goodwill, which is detailed in Note 8. The business combination summary is detailed in Note 3. In March 2019, the Company formed SBFG Title, LLC (“Title”) and purchased all of the assets and real estate of an Ohio based title agency. The purchase was completed effective March 15, 2019, and the purchase resulted in an increase in goodwill, which is detailed in Note 8. In March 2019, the Company formed SB Captive, Inc. (“Captive”), which is a captive insurance company based in Nevada. The Captive allows the Company to share insurance risk among a pool of similar sized banks. The consolidated financial statements include the accounts of the Company, State Bank, RFCBC, RDSI, RMC, Title, Captive and SBI. All significant intercompany accounts and transactions have been eliminated in consolidation. The accompanying unaudited condensed consolidated financial statements have been prepared in accordance with generally accepted accounting principles for interim financial information and with the instructions for Form 10-Q. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. The financial statements reflect all adjustments that are, in the opinion of management, necessary to fairly present the financial position, results of operations and cash flows of the Company. Those adjustments consist only of normal recurring adjustments. Results of operations for the three and nine months ended September 30, 2020, are not necessarily indicative of results for the complete year. The condensed consolidated balance sheet of the Company as of December 31, 2019 has been derived from the audited consolidated balance sheet of the Company as of that date. For further information, refer to the consolidated financial statements and footnotes included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019. New and applicable accounting pronouncements: ASU No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The Company has decided to adopt this ASU immediately, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2018-13: Fair Value Measurement - Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) The updated guidance improves the disclosure requirements for fair value measurements. The ASU removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU modifies certain disclosures required by Topic 820 related to disclosure of transfers into and out of Level 3 of the fair value hierarchy; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly for investments in certain entities that calculate net asset value; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted- average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. The impact of this new guidance did not have a material impact on the Company’s consolidated financial statements. Accounting Standards not yet adopted: ASU No. 2020-04: Reference Rate Reform – Facilitation of the Effects of Reference Rate Reform on Financial Reporting (Topic 848) This guidance provides temporary options to ease the potential burden in accounting for reference rate reform. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective as of March 12, 2020 through December 31, 2022. The Company anticipates being fully prepared to implement a replacement for the reference rate and has determined that any change will not have a material impact to the consolidated financial statements. ASU No. 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 This guidance was issued in January 2020 to clarify that a company should consider observable transactions that require a company to either apply or discontinue the equity method of accounting under Topic 323, Investments-Equity Method and Joint Ventures, for the purposes of applying the measurement alternative in accordance with Topic 321 immediately before applying or upon discontinuing the equity method. The amendments also clarify that when determining the accounting for certain forward contracts and purchased options a company should not consider, whether upon settlement or exercise, if the underlying securities would be accounted for under the equity method or fair value option. The guidance is effective beginning after December 15, 2020. The Company is currently assessing the impact on its accounting and disclosures. ASU No. 2016-13: Financial Instruments – Credit Losses (Topic 326) This ASU, which is commonly known as “CECL,” replaces the current GAAP incurred impairment methodology regarding credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. In December 2018, the OCC, the Federal Reserve Board, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. On November 15, 2019, the FASB delayed the effective date for certain small public companies and other private companies. As the Company is currently a smaller reporting company, the amendment will delay the effective date of ASU No. 2016-13 to the fiscal year beginning January 1, 2023. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. The Company implemented a process to track required data by utilizing accounting software in preparation for compliance. We anticipate being fully prepared for implementation by December 15, 2022. Reclassifications: Certain reclassifications have been made to prior period financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | NOTE 2—EARNINGS PER SHARE Earnings per share (EPS) have been computed based on the weighted average number of common shares outstanding during the periods presented. There were no anti-dilutive shares in 2020 or 2019. The average number of common shares used in the computation of basic and diluted earnings per share are set forth in the tables below: Three Months Ended ($ and outstanding shares in thousands - except per share data) 2020 2019 Distributed earnings allocated to common shares $ 764 $ 581 Undistributed (in excess of) earnings allocated to common shares 4,482 2,944 Net earnings allocated to common shares 5,246 3,525 Net earnings allocated to participating securities 4 4 Dividends on convertible preferred shares - 233 Net Income allocated to common shares and participating securities $ 5,250 $ 3,762 Weighted average shares outstanding for basic earnings per share 7,607 6,397 Dilutive effect of stock compensation - 34 Dilutive effect of convertible shares - 1,445 Weighted average shares outstanding for diluted earnings per share 7,607 7,876 Basic earnings per common share $ 0.69 $ 0.55 Diluted earnings per common share $ 0.69 $ 0.48 Nine Months Ended ($ and outstanding shares in thousands - except per share data) 2020 2019 Distributed earnings allocated to common shares $ 2,278 $ 1,723 Undistributed earnings allocated to common shares 7,296 6,159 Net earnings allocated to common shares 9,574 7,882 Net earnings allocated to participating securities 12 13 Dividends on convertible preferred shares - 720 Net Income allocated to common shares and participating securities $ 9,586 $ 8,615 Weighted average shares outstanding for basic earnings per share 7,700 6,459 Dilutive effect of stock compensation - 36 Dilutive effect of preferred convertible shares - 1,460 Weighted average shares outstanding for diluted earnings per share 7,700 7,955 Basic earnings per common share $ 1.25 $ 1.22 Diluted earnings per common share $ 1.25 $ 1.08 |
Business Combination
Business Combination | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
BUSINESS COMBINATION | NOTE 3 – BUSINESS COMBINATION Effective June 5, 2020, the Company acquired Edon Bancorp and its subsidiary, The Edon State Bank Company of Edon, Ohio. Edon Bancorp was headquartered in Edon, Ohio and had one retail banking office. The Edon State Bank was merged with and into State Bank, with State Bank surviving. Under the terms of the merger agreement, shareholders of Edon received fixed consideration of $103.50 in cash for each share of Edon common stock for total consideration of $15.5 million. The Company accounted for the transaction under the acquisition method of accounting, which means that the acquired assets and liabilities were recorded at fair value at the date of acquisition. In accordance with ASC 805, the Company expensed approximately $1.2 million of direct acquisition costs during the three months ended June 30, 2020, and no additional merger expense was recorded in the three months ended September 30, 2020. The $1.2 million in merger expense is split between data processing and professional fees expense. As a result of the acquisition, the Company recorded $4.3 million of goodwill and $0.7 million of intangible assets in the second quarter of 2020. The Company was able to increase both its deposit and loan base and acquire new households in a new market. It is expected that this transaction will result in business synergies and economies of scale. The acquisition was consistent with the Company’s strategy to expand its presence in Northwest Ohio and to increase profitability by introducing existing products and services to the acquired customer base. The intangible assets are related to core deposits, which are being amortized over 10 years on a straight-line basis. For tax purposes, goodwill is non-deductible but will be evaluated annually for impairment. The following table summarizes the fair value of the total consideration transferred as part of the acquisition as well as the fair value of identifiable assets and liabilities assumed as of the effective date of the transaction based on assumptions that are subject to change as management continues to evaluate relevant information as it becomes available. If, prior to the end of the one-year measurement period for finalizing the purchase price allocation, relevant information becomes available which would indicate adjustments are required to the purchase price allocation, such adjustments will be recorded in the reporting period in which the adjustment amounts are determined. Potential adjustments, if any, will be related to assets that may have changes to valuation amounts that were not readily determinable at acquisition date. The contractual principal of loans at the acquisition date was $16.3 million and the estimate of the contractual cash flows not expected to be collected is $0.4 million. Fair value of assets acquired Cash and cash equivalents $ 31,756 Interest bearing time deposits 11,542 Investment securities 1,362 Federal Home Loan Bank stock 117 Loans held for investment 16,395 Premises and equipment 446 Goodwill 4,325 Core deposit intangible 660 Other assets 192 Total assets acquired $ 66,795 Fair value of liabilities assumed Deposits $ 51,053 Other liabilities 223 Total liabilities assumed 51,276 Total purchase price (cash) $ 15,519 Pro Forma Financial Information The results of operations of Edon Bancorp have been included in the Company’s consolidated financial statements since the acquisition date of June 5, 2020. The following schedule includes the pro forma results for the three and nine months ended September 30, 2020 and 2019, as if the Edon acquisition had occurred as of the beginning of the reporting periods presented. The acquisition added less than $0.1 million in revenue and earnings to the Company for the three months and nine months ended September 30, 2020. Three Months Ended Summary of Operations ($ in thousands) Sep. 2020 Sep. 2019 Net interest income $ 9,259 $ 9,424 Provision for loan losses 1,800 306 Net interest income after provision $ 7,459 $ 9,118 Non interest income 10,418 5,394 Non interest expense 11,335 9,776 Income before income taxes $ 6,542 $ 4,736 Income tax expense* 1,292 886 Net income $ 5,250 $ 3,850 Preferred share dividends - 233 Net income to common shareholders $ 5,250 $ 3,617 Basic earnings per share $ 0.69 $ 0.57 Diluted earnngs per share $ 0.69 $ 0.49 * Income tax expense for Edon calculated using a 21% statuatory rate Nine Months Ended Summary of Operations ($ in thousands) Sep. 2020 Sep. 2019 Net interest income $ 27,178 $ 27,340 Provision for loan losses 3,700 506 Net interest income after provision $ 23,478 $ 26,834 Non interest income 21,238 12,145 Non interest expense 33,474 28,043 Income before income taxes $ 11,242 $ 10,936 Income tax expense* 2,073 2,018 Net income $ 9,169 $ 8,918 Preferred share dividends - 487 Net income to common shareholders $ 9,169 $ 8,431 Basic earnings per share $ 1.19 $ 1.31 Diluted earnngs per share $ 1.19 $ 1.12 * Income tax expense for Edon calculated using a 21% statuatory rate |
Available for Sale Securities
Available for Sale Securities | 9 Months Ended |
Sep. 30, 2020 | |
Securities [Abstract] | |
AVAILABLE FOR SALE SECURITIES | Note 4 – AVAILABLE FOR SALE Securities The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of securities at September 30, 2020 and December 31, 2019 were as follows: Gross Gross ($ in thousands) Amortized Unrealized Unrealized September 30, 2020 Cost Gains Losses Fair Value U.S. Treasury and Government agencies $ 6,555 $ 312 $ - $ 6,867 Mortgage-backed securities 107,356 1,898 (61 ) 109,193 State and political subdivisions 11,093 663 (1 ) 11,755 Other corporate securities 2,500 - - 2,500 Totals $ 127,504 $ 2,873 $ (62 ) $ 130,315 Gross Gross Amortized Unrealized Unrealized December 31, 2019 Cost Gains Losses Fair Value U.S. Treasury and Government agencies $ 12,023 $ 181 $ (2 ) $ 12,202 Mortgage-backed securities 77,892 492 (202 ) 78,182 State and political subdivisions 10,199 366 (1 ) 10,564 Other corporate securities - - - - Totals $ 100,114 $ 1,039 $ (205 ) $ 100,948 The amortized cost and fair value of securities available for sale at September 30, 2020, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized ($ in thousands) Cost Fair Value Within one year $ 757 $ 763 Due after one year through five years 6,433 6,603 Due after five years through ten years 6,995 7,282 Due after ten years 5,963 6,474 20,148 21,122 Mortgage-backed securities 107,356 109,193 Totals $ 127,504 $ 130,315 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $45.1 million at September 30, 2020 and $34.8 million at December 31, 2019. The fair value of securities delivered for repurchase agreements was $24.9 million at September 30, 2020 and $19.5 million at December 31, 2019. There were no realized gains and losses from sales of available-for-sale securities for the nine months ended September 30, 2020, and $0.2 million in realized gains for the nine months ended September 30, 2019. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments was $23.3 million at September 30, 2020, and $38.8 million at December 31, 2019, which was approximately 18 and 38 percent, respectively, of the Company’s available-for-sale investment portfolio at such dates. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. Securities with unrealized losses, aggregated by investment class and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2020 and December 31, 2019 are as follows: Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and Government agencies $ - $ - $ - $ - $ - $ - Mortgage-backed securities 22,474 (57 ) 750 (4 ) 23,224 (61 ) State and political subdivisions 96 (1 ) - - 96 (1 ) Other corporate securities - - - - - - Totals $ 22,570 $ (58 ) $ 750 $ (4 ) $ 23,320 $ (62 ) Less than 12 Months 12 Months or Longer Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and Government agencies $ 872 $ (1 ) $ 2,598 $ (1 ) $ 3,470 $ (2 ) Mortgage-backed securities 30,692 (157 ) 4,264 (45 ) 34,956 (202 ) State and political subdivisions 339 (1 ) - - 339 (1 ) Other corporate securities - - - - - - Totals $ 31,903 $ (159 ) $ 6,862 $ (46 ) $ 38,765 $ (205 ) The total unrealized loss in the securities portfolio was $0.06 million as of September 30, 2020 compared to a $0.2 million unrealized loss at December 31, 2019. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent of the Company to not sell the investment and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost. Management has determined there is no other-than-temporary-impairment on its securities as of September 30, 2020. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
LOANS AND ALLOWANCE FOR LOAN LOSSES | NOTE 5 – LOANS AND ALLOWANCE FOR LOAN LOSSES Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge-offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, all loan classes are placed on nonaccrual status not later than 90 days past due, unless the loan is well-secured and in the process of collection. All interest accrued, but not collected, for loans that are placed on nonaccrual 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. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers nonclassified loans and is based on historical charge-off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that State Bank will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. 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 each 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, agricultural, 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. When State Bank moves a loan to nonaccrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, State Bank does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Categories of loans at September 30, 2020 and December 31, 2019 include: Total Loans Nonaccrual Loans ($ in thousands) September 2020 December 2019 September 2020 December 2019 Commercial & industrial $ 218,833 $ 151,047 $ 1,140 $ 1,772 Commercial real estate - owner occupied 107,128 98,488 1,450 1,362 Commercial real estate - nonowner occupied 264,651 268,294 1,025 464 Agricultural 57,437 50,994 - - Residential real estate 178,485 193,159 2,481 1,635 Home equity line of credit (HELOC) 47,003 48,070 296 249 Consumer 14,421 14,738 17 18 Total loans $ 887,958 $ 824,790 $ 6,409 $ 5,500 Net deferred costs (fees) $ (2,108 ) $ 720 Total loans, net deferred costs (fees) $ 885,850 $ 825,510 Allowance for loan losses $ (11,793 ) $ (8,755 ) The risk characteristics of each loan portfolio segment are as follows: Commercial & Industrial and Agricultural Commercial & industrial and agricultural loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate (Owner and Nonowner Occupied) Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus non-owner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential Real Estate, HELOC and Consumer Residential and consumer loans consist of two segments – residential mortgage loans and personal loans. Residential mortgage loans are secured by 1-4 family residences and are generally owner-occupied, and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. HELOCs are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that these loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the activity in the allowance for loan losses for the three and nine months ended September 30, 2020 and September 30, 2019, and the recorded investment in loans based on portfolio segment and impairment method as of September 30, 2020, December 31, 2019 and September 30, 2019. ($ in thousands) For the Three Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 2,844 $ 3,604 $ 504 $ 2,278 $ 783 $ 10,013 Charge offs - - - - (32 ) (32 ) Recoveries 10 - - 1 1 12 Provision 342 911 46 258 243 1,800 Ending balance $ 3,196 $ 4,515 $ 550 $ 2,537 $ 995 $ 11,793 For the Nine Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Charge offs (582 ) - - (37 ) (67 ) (686 ) Recoveries 15 - - 3 6 24 Provision 1,880 913 116 368 423 3,700 Ending balance $ 3,196 $ 4,515 $ 550 $ 2,537 $ 995 $ 11,793 For the Three Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 1,378 $ 3,448 $ 509 $ 2,287 $ 684 $ 8,306 Charge offs (95 ) - - (23 ) (10 ) (128 ) Recoveries 7 - - 1 6 14 Provision (credit) 103 72 (16 ) 128 13 300 Ending balance $ 1,393 $ 3,520 $ 493 $ 2,393 $ 693 $ 8,492 For the Nine Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Charge offs (143 ) - - (23 ) (42 ) (208 ) Recoveries 8 - - 2 23 33 Provision (credit) 93 597 11 (153 ) (48 ) 500 Ending balance $ 1,393 $ 3,520 $ 493 $ 2,393 $ 693 $ 8,492 Loans Receivable at Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Allowance: Ending balance: individually evaluated for impairment $ 1 $ - $ - $ 167 $ 3 $ 171 Ending balance: collectively evaluated for impairment $ 3,195 $ 4,515 $ 550 $ 2,370 $ 992 $ 11,622 Totals $ 3,196 $ 4,515 $ 550 $ 2,537 $ 995 $ 11,793 Loans: Ending balance: individually evaluated for impairment $ 1,117 $ 2,341 $ - $ 3,239 $ 136 $ 6,833 Ending balance: collectively evaluated for impairment $ 217,716 $ 369,438 $ 57,437 $ 175,246 $ 61,288 $ 881,125 Totals $ 218,833 $ 371,779 $ 57,437 $ 178,485 $ 61,424 $ 887,958 Loans Receivable at Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Allowance: Ending balance: individually evaluated for impairment $ 511 $ 147 $ - $ 68 $ - $ 726 Ending balance: collectively evaluated for impairment $ 1,372 $ 3,455 $ 434 $ 2,135 $ 633 $ 8,029 Totals $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Loans: Ending balance: individually evaluated for impairment $ 1,722 $ 1,558 $ - $ 2,274 $ 31 $ 5,585 Ending balance: collectively evaluated for impairment $ 149,325 $ 365,224 $ 50,994 $ 190,885 $ 62,777 $ 819,205 Totals $ 151,047 $ 366,782 $ 50,994 $ 193,159 $ 62,808 $ 824,790 Credit Risk Profile The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100 thousand and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (5): Substandard (6): Doubtful (7): Loss (8): The following tables present the credit risk profile of the Company’s loan portfolio based on rating category as of September 30, 2020 and December 31, 2019. ($ in thousands) Commercial & industrial Commercial real Commercial real Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 216,293 $ 105,400 $ 261,953 $ 57,427 $ 174,776 $ 46,646 $ 14,394 $ 876,889 Special Mention (5) 776 - 286 - - - - 1,062 Substandard (6) 1,009 278 1,387 10 3,678 357 27 6,746 Doubtful (7) 755 1,450 1,025 - 31 - - 3,261 Loss (8) - - - - - - - - Total Loans $ 218,833 $ 107,128 $ 264,651 $ 57,437 $ 178,485 $ 47,003 $ 14,421 $ 887,958 December 31, 2019 Commercial & industrial Commercial real Commercial real Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 147,667 $ 96,836 $ 265,839 $ 50,994 $ 190,438 $ 47,787 $ 14,706 $ 814,267 Special Mention (5) 597 - 543 - - - - 1,140 Substandard (6) 1,444 290 1,663 - 2,689 283 32 6,401 Doubtful (7) 1,339 1,362 249 - 32 - - 2,982 Loss (8) - - - - - - - - Total Loans $ 151,047 $ 98,488 $ 268,294 $ 50,994 $ 193,159 $ 48,070 $ 14,738 $ 824,790 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. The following tables present the Company’s loan portfolio aging analysis as of September 30, 2020 and December 31, 2019. Greater Than Total ($ in thousands) September 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days Past Due Total Past Due Current Loans Receivable Commercial & industrial $ 73 $ 31 $ 780 $ 884 $ 217,949 $ 218,833 Commercial real estate - owner occupied - - 1,450 1,450 105,678 107,128 Commercial real estate - nonowner occupied 42 197 834 1,073 263,578 264,651 Agricultural - 10 - 10 57,427 57,437 Residential real estate - 755 1,371 2,126 176,359 178,485 HELOC 127 90 125 342 46,661 47,003 Consumer 29 21 9 59 14,362 14,421 Total Loans $ 271 $ 1,104 $ 4,569 $ 5,944 $ 882,014 $ 887,958 Greater Than Total December 31, 2019 30-59 Days 60-89 Days 90 Days Past Total Past Due Current Loans Receivable Commercial & industrial $ 64 $ - $ 312 $ 376 $ 150,671 $ 151,047 Commercial real estate - owner occupied - - - - 98,488 98,488 Commercial real estate - nonowner occupied - - 215 215 268,079 268,294 Agricultural 13 - - 13 50,981 50,994 Residential real estate 309 415 644 1,368 191,791 193,159 HELOC 166 91 56 313 47,757 48,070 Consumer 65 93 14 172 14,566 14,738 Total Loans $ 617 $ 599 $ 1,241 $ 2,457 $ 822,333 $ 824,790 All loans past due 90 days are systematically placed on nonaccrual status. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable State Bank will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following tables present impaired loan information as of and for the nine months ended September 30, 2020 and 2019, and for the twelve months ended December 31, 2019: ($ in thousands) Nine Months Ended Recorded Unpaid Principal Related Average Recorded Interest Income September 30, 2020 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 925 $ 1,721 $ - $ 1,886 $ 34 Commercial real estate - owner occupied 1,362 1,362 - 1,362 - Commercial real estate - nonowner occupied 979 979 - 1,051 14 Agricultural - - - - - Residential real estate 1,228 1,294 - 1,634 70 HELOC 57 57 64 3 Consumer 9 9 - 13 1 With a specific allowance recorded: Commercial & industrial 192 249 1 249 - Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 2,011 2,048 167 2,056 10 HELOC 70 70 3 84 4 Consumer - - - - - Totals: Commercial & industrial $ 1,117 $ 1,970 $ 1 $ 2,135 $ 34 Commercial real estate - owner occupied $ 1,362 $ 1,362 $ - $ 1,362 $ - Commercial real estate - nonowner occupied $ 979 $ 979 $ - $ 1,051 $ 14 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 3,239 $ 3,342 $ 167 $ 3,690 $ 80 HELOC $ 127 $ 127 $ 3 $ 148 $ 7 Consumer $ 9 $ 9 $ - $ 13 $ 1 Three Months Ended Average Recorded Interest Income ($ in thousands) Investment Recognized With no related allowance recorded: Commercial & industrial $ 1,860 $ 10 Commercial real estate - owner occupied 1,362 - Commercial real estate - nonowner occupied 1,051 6 Agricultural - - Residential real estate 1,619 20 HELOC 60 1 Consumer 11 - With a specific allowance recorded: Commercial & industrial 249 - Commercial real estate - owner occupied - - Commercial real estate - nonowner occupied - - Agricultural - - Residential real estate 2,051 10 HELOC 82 1 Consumer - - Totals: Commercial & industrial $ 2,109 $ 10 Commercial real estate - owner occupied $ 1,362 $ - Commercial real estate - nonowner occupied $ 1,051 $ 6 Agricultural $ - $ - Residential real estate $ 3,670 $ 30 HELOC $ 142 $ 2 Consumer $ 11 $ - ($ in thousands) Twelve Months Ended Recorded Unpaid Principal Related Average Recorded Interest Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 722 $ 1,092 $ - $ 1,377 $ 114 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied 196 197 - 259 21 Agricultural - - - - - Residential real estate 1,621 1,687 - 2,001 106 HELOC 16 16 18 1 Consumer 15 15 - 19 1 With a specific allowance recorded: Commercial & industrial 1,000 1,000 511 823 49 Commercial real estate - owner occupied 1,362 1,362 147 1,362 38 Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 653 653 68 666 31 HELOC - - - - - Consumer - - - - - Totals: Commercial & industrial $ 1,722 $ 2,092 $ 511 $ 2,200 $ 163 Commercial real estate - owner occupied $ 1,362 $ 1,362 $ 147 $ 1,362 $ 38 Commercial real estate - nonowner occupied $ 196 $ 197 $ - $ 259 $ 21 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 2,274 $ 2,340 $ 68 $ 2,667 $ 137 HELOC $ 16 $ 16 $ - $ 18 $ 1 Consumer $ 15 $ 15 $ - $ 19 $ 1 Nine Months Ended Three Months Ended September 30, 2019 Average Recorded Interest Income Average Recorded Interest Income ($ in thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial & industrial $ 1,432 $ 76 $ 1,202 $ 22 Commercial real estate - owner occupied - - - - Commercial real estate - nonowner occupied 259 15 259 5 Agricultural - - - - Residential real estate 1,808 74 1,793 24 HELOC 19 1 17 - Consumer 20 1 18 - With a specific allowance recorded: Commercial & industrial - - - - Commercial real estate - owner occupied - - - - Commercial real estate - nonowner occupied - - - - Agricultural - - - - Residential real estate 538 19 533 6 HELOC - - - - Consumer - - - - Totals: Commercial & industrial $ 1,432 $ 76 $ 1,202 $ 22 Commercial real estate - owner occupied $ - $ - $ - $ - Commercial real estate - nonowner occupied $ 259 $ 15 $ 259 $ 5 Agricultural $ - $ - $ - $ - Residential real estate $ 2,346 $ 93 $ 2,326 $ 30 HELOC $ 19 $ 1 $ 17 $ - Consumer $ 20 $ 1 $ 18 $ - Impaired loans less than $100,000 are included in groups of homogenous loans. These loans are evaluated based on delinquency status. Interest income recognized on a cash basis does not materially differ from interest income recognized on an accrual basis. Troubled Debt Restructured (TDR) Loans TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs. TDR Concession Types The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All loan modifications, including those classified as TDRs, are reviewed and approved by management. The types of concessions provided to borrowers include: ● Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the loan. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. ● Amortization or maturity date change: A change in the amortization or maturity date beyond what the collateral supports, including a concession that does any of the following: (1) Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (2) Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (3) Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan. In addition, there may be instances where renewing loans potentially require non-market terms and would then be reclassified as TDRs. ● Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. During the nine months ended September 30, 2020, the Company had no new TDR activity. The following table represents new TDR activity for the nine months ended September 30, 2019: ($ in thousands) Number of Loans Pre-Modification Post Modification Commercial & industrial 3 $ 763 $ 763 Total modifications 3 $ 763 $ 763 Interest Total Only Term Combination Modification Commercial & industrial $ 150 $ 613 $ - $ 763 Total modifications $ 150 $ 613 $ - $ 763 There were no TDR’s modified during the past twelve months that have subsequently defaulted. On March 27, 2020, President Trump signed the CARES Act, which extends the duration of loan forbearance (deferral) agreements beyond the current three-month period before a loan is considered to be a troubled debt restructure. As of September 30, 2020, the Company had approved 26 loan deferral requests for clients with a total dollar amount of $38.4 million, which do not constitute TDR’s as a result of the CARES act. |
Accounting for Certain Loans Ac
Accounting for Certain Loans Acquired in a Transfer | 9 Months Ended |
Sep. 30, 2020 | |
Accounting For Certain Loans Acquired In A Transfer [Abstract] | |
ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A TRANSFER | NOTE 6 – ACCOUNTING FOR CERTAIN LOANS ACQUIRED IN A TRANSFER The Company acquired loans in the acquisition of The Edon State Bank Company of Edon, Ohio, effective June 5, 2020. None of the acquired loans had evidence of deterioration of credit quality since origination, and it was probable, at acquisition, that all contractually required payments would be collected. The following table presents the carrying amount of the acquired loans included in the balance sheet as of September 30, 2020: ($ in thousands) September 30, Commercial & industrial $ 1,716 Commercial real estate - owner occupied - Commercial real estate - nonowner occupied 518 Agricultural 9,968 Residential real estate 3,277 Home equity line of credit (HELOC) - Consumer 181 Total loans $ 15,660 Accretable yield, or income expected to be collected as of September 30, 2020 is $0.4 million. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 9 Months Ended |
Sep. 30, 2020 | |
Mortgage Servicing Rights [Abstract] | |
MORTGAGE SERVICING RIGHTS | NOTE 7 – MORTGAGE SERVICING RIGHTS Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $1.3 billion at September 30, 2020 and $1.2 billion at December 31, 2019. Contractually specified servicing fees of approximately $2.4 million and $2.1 million were included in mortgage loan servicing fees in the consolidated income statement for the nine months ended September 30, 2020 and 2019, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2020 2019 Carrying amount, January 1 $ 11,017 $ 11,365 Mortgage servicing rights capitalized during the year 3,971 1,895 Mortgage servicing rights amortization during the year (3,479 ) (1,415 ) Net change in valuation allowance (2,974 ) (1,398 ) Carrying amount, September 30 $ 8,535 $ 10,447 Valuation allowance: January 1 $ 1,306 $ 212 Increase 2,974 1,398 September 30 $ 4,280 $ 1,610 |
Goodwill
Goodwill | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL | NOTE 8 – GOODWILL Goodwill is recorded on the acquisition date of an entity. During the measurement period, the Company may record subsequent adjustments to goodwill for provisional amounts recorded at the acquisition date. The acquisition of The Edon State Bank Company of Edon, Ohio, on June 5, 2020, and the purchase of an Ohio- based title agency through a newly-formed, wholly-owned subsidiary, SBFG Title, LLC, on March 15, 2019 resulted in approximately $4.3 million and $1.4 million, respectively, in goodwill. A summary of the activity in goodwill is presented below: Nine Months Ended September 30, September 30, ($ in thousands) Carrying Amount Carrying Amount Beginning balance $ 17,792 $ 16,353 Acquired goodwill 4,325 1,439 Measurement period adjustments (26 ) - Ending balance $ 22,091 $ 17,792 Goodwill is not amortized but is evaluated for impairment annually as of December 31, or more frequently if events or circumstances that indicate an impairment may exist.. When assessing goodwill for impairment, first, a qualitative assessment can be made to determine whether it is more likely than not that the estimated fair value of a reporting unit is less that its estimated carrying value. If the results of the qualitative assessment are not conclusive, a quantitative goodwill test is performed. Alternatively, a quantitative goodwill test can be performed without performing a qualitative assessment. Goodwill was assessed for impairment using a quantitative test performed as of September 30, 2020. The estimated fair value of the reporting unit exceeded the net carrying value, and therefore no goodwill impairment existed as of that date. No events or circumstances since the September 30, 2020 impairment test were noted that would indicate it was more likely than not a goodwill impairment exists. |
Derivative Financial Instrument
Derivative Financial Instruments | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
DERIVATIVE FINANCIAL INSTRUMENTS | NOTE 9 – DERIVATIVE FINANCIAL INSTRUMENTS Risk Management Objective of Using Derivatives The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposures to a wide variety of business and operational risks primarily through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain variable-rate assets. Non-designated Hedges The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into Interest Rate Lock Commitments (“IRLCs”) with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts that are entered into, economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. The table below presents the notional amount and fair value of the Company’s interest rate swaps, IRLCs and forward contracts utilized as of September 30, 2020 and December 31, 2019. September 30, December 31, Notional Fair Notional Fair ($ in thousands) Amount Value Amount Value Asset Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 88,509 $ 9,169 $ 82,826 $ 2,846 IRLCs 62,795 290 16,347 55 Total contracts $ 151,304 $ 9,459 $ 99,173 $ 2,901 Liability Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 88,509 $ (9,169 ) $ 82,826 $ (2,846 ) Forward contracts 71,500 (197 ) 22,000 (32 ) Total contracts $ 160,009 $ (9,366 ) $ 104,826 $ (2,878 ) The fair value of interest rate swaps were estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date. Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. The following table presents the amounts included in the consolidated statements of income for non-hedging derivative financial instruments for the nine months ended September 30, 2020 and 2019. Amount of gain (loss) ($ in thousands) Statement of income classification 2020 2019 Interest rate swap contracts Other income $ 282 $ 394 Interest rate swap contracts Other expense - - IRLCs Gain on sale of mortgage loans & OMSR 235 (215 ) Forward contracts Gain on sale of mortgage loans & OMSR (165 ) 199 The following table shows the offsetting of financial assets and derivative assets at September 30, 2020 and December 31, 2019. Gross Gross amounts offset in the Net amounts of assets presented in the Gross amounts not offset in the consolidated balance sheet ($ in thousands) amounts of consolidated consolidated Financial instruments Cash Net amount September 30, 2020 Interest rate swaps $ 9,169 $ - $ 9,169 $ - $ - $ 9,169 December 31, 2019 Interest rate swaps $ 2,901 $ 55 $ 2,846 $ - $ - $ 2,846 The following table shows the offsetting of financial liabilities and derivative liabilities at September 30, 2020 and December 31, 2019. Gross Gross Net amounts of liabilities presented in the Gross amounts not offset in the consolidated balance sheet ($ in thousands) amounts of consolidated consolidated Financial instruments Cash Net amount September 30, 2020 Interest rate swaps $ 9,169 $ - $ 9,169 $ 1,155 $ 8,241 $ (227 ) December 31, 2019 Interest rate swaps $ 2,901 $ 55 $ 2,846 $ - $ 3,242 $ (396 ) |
Short-Term Borrowings
Short-Term Borrowings | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
SHORT-TERM BORROWINGS | NOTE 10 – SHORT-TERM BORROWINGS ($ in thousands) September 30, December 31, Securities Sold Under Repurchase Agreements $ 20,710 $ 12,945 Totals $ 20,710 $ 12,945 The Company has retail repurchase agreements to facilitate cash management transactions with commercial customers. These obligations are secured by agency and mortgage-backed securities and such collateral is held by the Federal Home Loan Bank. These securities have various maturity dates from 2022 through 2044. As of September 30, 2020, these repurchase agreements were secured by agency securities and mortgage-backed securities with corresponding liabilities of $10.8 million and $14.1 million, respectively. The repurchase agreements mature within one month. The Company has borrowing capabilities at the Federal Reserve Discount Window by pledging either securities or loans as collateral. As of September 30, 2020, there was no collateral pledged or borrowings drawn at the Discount Window. The Company participated in the Paycheck Protection Program (“PPP”) and also has the ability to borrow from the Federal Reserve’s special purpose Paycheck Protection Program Liquidity Facility (“PPPLF”) for additional funding. At September 30, 2020, there were no borrowings from the PPLF. At September 30, 2020 and December 31, 2019, the Company had $41.0 million in federal funds lines, of which none was drawn. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Text Block [Abstract] | |
FEDERAL HOME LOAN BANK ADVANCES | NOTE 11 – FEDERAL HOME LOAN BANK ADVANCES The FHLB advances were secured by $150.1 million in mortgage loans at September 30, 2020. Advances, at interest rates from 2.77 to 2.93 percent, are subject to restrictions or penalties in the event of prepayment. Aggregate annual maturities of FHLB advances at September 30, 2020 were: ($ in thousands) Debt 2021 2,500 2022 3,000 2023 2,500 Total $ 8,000 |
Trust Preferred Securities
Trust Preferred Securities | 9 Months Ended |
Sep. 30, 2020 | |
Trust Preferred Securities [Abstract] | |
TRUST PREFERRED SECURITIES | NOTE 12 – TRUST PREFERRED SECURITIES On September 15, 2005, RST II, a wholly-owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $1,000 per security. The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital Securities. Distributions on the Capital Securities are payable quarterly at a variable rate that is based upon the 3-month LIBOR plus 1.80 percent and are included in interest expense in the consolidated financial statements. These securities may be included in Tier 1 capital and may be prepaid at any time without penalty (with certain limitations applicable) under current regulatory guidelines and interpretations. The balance of the Capital Securities as of September 30, 2020 and December 31, 2019 was $10.3 million, with a maturity date of September 15, 2035. |
Fair Value of Assets and Liabil
Fair Value of Assets and Liabilities | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE OF ASSETS AND LIABILITIES | NOTE 13 – FAIR VALUE OF ASSETS AND LIABILITIES Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A fair value measurement must maximize the use of observable inputs and minimize the use of unobservable inputs. There is a hierarchy of three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classifications of such assets pursuant to the valuation hierarchy. Available-for-Sale Securities The fair values of available-for-sale securities are determined by various valuation methodologies. Level 1 securities include money market mutual funds. Level 1 inputs include quoted prices in an active market. Level 2 securities include U.S. treasury and government agencies, mortgage-backed securities, and obligations of political and state subdivisions. Level 2 inputs do not include quoted prices for individual securities in active markets; however, they do include inputs that are either directly or indirectly observable for the individual security being valued. Such observable inputs include interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, credit risks and default rates. Also included are inputs derived principally from or corroborated by observable market data by correlation or other means. Interest Rate Contracts The fair values of interest rate contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. Forward contracts The fair values of forward contracts on to-be-announced securities are determined using quoted prices in active markets, or benchmarked thereto (Level 1). Interest Rate Lock Commitments The fair value of IRLCs are determined using the projected sale price of individual loans based on changes in the market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3). The following table presents the fair value measurements of assets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at September 30, 2020 and December 31, 2019. ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 6,867 $ - $ 6,867 $ - Mortgage-backed securities 109,193 - 109,193 - State and political subdivisions 11,755 - 11,755 - Other corporate securities 2,500 - 2,500 - Interest rate contracts - assets 9,169 - 9,169 - Interest rate contracts - liabilities (9,169 ) - (9,169 ) - Forward contracts (197 ) (197 ) - - IRLCs 290 - - 290 ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,202 $ - $ 12,202 $ - Mortgage-backed securities 78,182 - 78,182 - State and political subdivisions 10,564 - 10,564 - Interest rate contracts - assets 2,846 - 2,846 - Interest rate contracts - liabilities (2,846 ) - (2,846 ) - Forward contracts (32 ) (32 ) - - IRLCs 55 - - 55 Level 1 – Quoted Prices in Active Markets for Identical Assets Level 2 – Significant Other Observable Inputs Level 3 – Significant Unobservable Inputs The following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Collateral-dependent Impaired Loans, Net of ALLL Loans for which it is probable the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The estimated fair value of collateral-dependent impaired loans is based on the appraised value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. This method requires obtaining an independent appraisal of the collateral, which is reviewed for accuracy and consistency by Credit Administration. These appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by applying a discount factor to the value based on the Company’s loan review policy. All impaired loans held by the Company were collateral dependent at September 30, 2020 and December 31, 2019. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees; miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 3,604 $ - $ - $ 3,604 Mortgage servicing rights 8,535 - - 8,535 IRLCs 290 - - 290 ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 2,527 $ - $ - $ 2,527 Mortgage servicing rights 5,084 - - 5,084 IRLCs 55 - - 55 Level 1 - quoted prices in active markets for identical assets Level 2 - significant other observable inputs Level 3 - significant unobservable inputs Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair value at Range (weighted- ($ in thousands) 9/30/2020 Valuation technique Unobservable inputs average) Collateral-dependent impaired loans $ 3,604 Market comparable properties Comparability adjustments (%) 0 - 30% (21%) Mortgage servicing rights 8,535 Discounted cash flow Discount Rate 8.44 % Constant prepayment rate 18.42 % IRLCs 290 Discounted cash flow P&I earnings credit 0.15 % T&I earnings credit 0.22 % Inflation for cost of servicing 1.50 % Fair Value at Range (weighted- ($ in thousands) 12/31/2019 Valuation technique Unobservable inputs average) Collateral-dependent impaired loans $ 2,527 Market comparable properties Comparability adjustments (%) 2 - 62% (28%) Mortgage servicing rights 5,084 Discounted cash flow Discount Rate 9.36 % Constant prepayment rate 10.19 % IRLCs 55 Discounted cash flow P&I earnings credit 1.78 % T&I earnings credit 1.93 % Inflation for cost of servicing 1.50 % There were no changes in the inputs or methodologies used to determine fair value at September 30, 2020 as compared to December 31, 2019. The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Due From Banks, Federal Reserve and Federal Home Loan Bank Stock and Accrued Interest Receivable and Payable The carrying amount approximates the fair value. Loans Held for Sale The fair value of loans held for sale is based upon quoted market prices, where available, or is determined by discounting estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans and adjusted to reflect the inherent credit risk. Loans The estimated fair value of loans as of September 30, 2020 follows the guidance in ASU 2016-01, which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments. The fair value calculation at that date discounted estimated future cash flows using rates that incorporated discounts for credit, liquidity, and marketability factors. Deposits, FHLB advances & Repurchase agreements Deposits include demand deposits, savings accounts, and certain money market deposits. The carrying amount approximates the fair value. The estimated fair value for fixed-maturity time deposits, as well as borrowings, is based on estimates of the rate State Bank could pay on similar instruments with similar terms and maturities at September 30, 2020 and December 31, 2019. Loan Commitments The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The estimated fair values for other financial instruments and off-balance-sheet loan commitments approximate cost at September 30, 2020 and December 31, 2019 and are not considered significant to this presentation. Trust Preferred Securities The fair value for Trust Preferred Securities is estimated by discounting the cash flows using an appropriate discount rate. The following table presents estimated fair values of the Company’s other financial instruments carried at other than fair value. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for certain of these financial instruments, and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. ($ in thousands) Carrying Fair value measurements using September 30, 2020 amount Fair value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 94,641 $ 94,641 $ 94,641 $ - $ - Interest bearing time deposits 8,956 8,956 8,956 - - Loans held for sale 13,943 14,507 - 14,507 - Loans, net of allowance for loan losses 874,057 866,131 - - 866,131 Federal Reserve and FHLB Bank stock, at cost 5,303 5,303 - 5,303 - Interest receivable 4,159 4,159 - 4,159 - Financial liabilities Deposits $ 1,014,015 $ 1,016,552 $ 763,587 $ 252,965 $ - Short term borrowings 20,710 20,710 - 20,710 - FHLB advances 8,000 8,316 - 8,316 - Trust preferred securities 10,310 8,261 - 8,261 - Interest payable 946 946 - 946 - ($ in thousands) Carrying Fair value measurements using December 31, 2019 amount Fair value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 27,064 $ 27,064 $ 27,064 $ - $ - Loans held for sale 7,258 7,419 - 7,419 - Loans, net of allowance for loan losses 816,755 804,808 - - 804,808 Federal Reserve and FHLB Bank stock, at cost 4,648 4,648 - 4,648 - Interest receivable 3,106 3,106 - 3,106 - Financial liabilities Deposits $ 840,219 $ 840,272 $ 582,466 $ 257,806 $ - Repurchase agreements 12,945 12,945 - 12,945 - FHLB advances 16,000 16,149 - 16,149 - Trust preferred securities 10,310 9,201 - 9,201 - Interest payable 1,191 1,191 - 1,191 - |
Share Based Compensation
Share Based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
SHARE BASED COMPENSATION | NOTE 14 – SHARE BASED COMPENSATION In April 2017, the Company’s shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2017 Stock Incentive Plan (the “2017 Plan”), which replaced the Company’s 2008 Stock Incentive Plan (the “2008 Plan” and, together with the 2017 Plan, the “Plans”). The 2017 Plan permits the Company to grant or award incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, and restricted stock units to employees and directors of the Company and its subsidiaries. A total of 500,000 common shares of the Company are available for grants or awards under the 2017 Plan, of which 56,324 shares had been granted under the plan as of September 30, 2020. The 2008 Plan, which was approved by the Company’s shareholders in April 2008, permitted the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights, and restricted stock for up to 250,000 common shares of the Company. While awards granted under the 2008 Plan remain outstanding, no further awards could be granted under the 2008 Plan after April 2018. The Plans are intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards. The Plans permit equity-based awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals to become shareholders of the Company. Stock option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on 5 years of continuous service and have 10-year contractual terms. The fair value of each option award was estimated on the date of grant using the Black-Scholes valuation model. No options were granted in the first nine months of 2020. A summary of stock option activity under the Company’s plans as of September 30, 2020 and changes during the quarter then ended, is presented below: ($ in thousands - except per share data) Shares Weighted- Average Exercise Price Weighted- Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2019 28,250 $ 6.98 Granted - - Exercised (26,950 ) 6.98 Forfeited - - Expired (1,300 ) 6.98 Outstanding, September 30, 2020 - - - - Exercisable, September 30, 2020 - $ - - $ - All stock options included in the table above were granted under the 2008 Plan. These shares had an expiration date of February 17, 2020. During the first nine months, the 26,950 option shares exercised had a total intrinsic value of $0.3 million and the cash received from these exercised options was $0.2 million. The tax benefit from these transactions was immaterial. On February 17, 2020, the remaining 1,300 unexercised option shares expired. As of September 30, 2020, there were no outstanding or exercisable options remaining, and no unrecognized compensation cost related to stock option awards granted under the 2008 Plan. On February 5, 2013, the Company adopted a Long Term Incentive (LTI) Plan. The Plan awards restricted stock in the Company to certain key executives under the Plans. These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives. During 2019, the Company met certain performance targets under the LTI Plan and a total of 16,442 shares of restricted stock were approved and issued in February of 2020. The compensation cost charged against income for the LTI Plan was $0.3 million, with a total income tax benefit recognized in the income statement of $0.07 million. As of September 30, 2020, there was $0.47 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to the restricted stock awards under the Plans which were granted in accordance with the LTI plan. That cost is expected to be recognized over a weighted-average period of 2.3 years. A summary of restricted stock activity under the Company’s plans as of September 30, 2020 and changes during the quarter then ended, is presented below: Shares Weighted- Nonvested, December 31, 2019 43,741 $ 17.41 Granted 16,442 19.57 Vested (22,426 ) 17.17 Forfeited (1,839 ) 17.61 Nonvested, September 30, 2020 35,918 $ 18.53 |
General Litigation
General Litigation | 9 Months Ended |
Sep. 30, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
GENERAL LITIGATION | NOTE 15 – GENERAL LITIGATION The Company is subject to claims and lawsuits that arise primarily in the ordinary course of business. Additionally, the Company is subject to periodic examinations by various regulatory agencies. It is the opinion of management that the disposition or ultimate resolution of any such claims, lawsuits and examinations pending at September 30, 2020, will not have a material adverse effect on the consolidated financial position, results of operations and cash flow of the Company. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of earnings per share | Three Months Ended ($ and outstanding shares in thousands - except per share data) 2020 2019 Distributed earnings allocated to common shares $ 764 $ 581 Undistributed (in excess of) earnings allocated to common shares 4,482 2,944 Net earnings allocated to common shares 5,246 3,525 Net earnings allocated to participating securities 4 4 Dividends on convertible preferred shares - 233 Net Income allocated to common shares and participating securities $ 5,250 $ 3,762 Weighted average shares outstanding for basic earnings per share 7,607 6,397 Dilutive effect of stock compensation - 34 Dilutive effect of convertible shares - 1,445 Weighted average shares outstanding for diluted earnings per share 7,607 7,876 Basic earnings per common share $ 0.69 $ 0.55 Diluted earnings per common share $ 0.69 $ 0.48 Nine Months Ended ($ and outstanding shares in thousands - except per share data) 2020 2019 Distributed earnings allocated to common shares $ 2,278 $ 1,723 Undistributed earnings allocated to common shares 7,296 6,159 Net earnings allocated to common shares 9,574 7,882 Net earnings allocated to participating securities 12 13 Dividends on convertible preferred shares - 720 Net Income allocated to common shares and participating securities $ 9,586 $ 8,615 Weighted average shares outstanding for basic earnings per share 7,700 6,459 Dilutive effect of stock compensation - 36 Dilutive effect of preferred convertible shares - 1,460 Weighted average shares outstanding for diluted earnings per share 7,700 7,955 Basic earnings per common share $ 1.25 $ 1.22 Diluted earnings per common share $ 1.25 $ 1.08 |
Business Combination (Tables)
Business Combination (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Business Combinations [Abstract] | |
Schedule of fair value of identifiable assets and liabilities | Fair value of assets acquired Cash and cash equivalents $ 31,756 Interest bearing time deposits 11,542 Investment securities 1,362 Federal Home Loan Bank stock 117 Loans held for investment 16,395 Premises and equipment 446 Goodwill 4,325 Core deposit intangible 660 Other assets 192 Total assets acquired $ 66,795 Fair value of liabilities assumed Deposits $ 51,053 Other liabilities 223 Total liabilities assumed 51,276 Total purchase price (cash) $ 15,519 |
Schedule of pro forma financial information | Three Months Ended Summary of Operations ($ in thousands) Sep. 2020 Sep. 2019 Net interest income $ 9,259 $ 9,424 Provision for loan losses 1,800 306 Net interest income after provision $ 7,459 $ 9,118 Non interest income 10,418 5,394 Non interest expense 11,335 9,776 Income before income taxes $ 6,542 $ 4,736 Income tax expense* 1,292 886 Net income $ 5,250 $ 3,850 Preferred share dividends - 233 Net income to common shareholders $ 5,250 $ 3,617 Basic earnings per share $ 0.69 $ 0.57 Diluted earnngs per share $ 0.69 $ 0.49 Nine Months Ended Summary of Operations ($ in thousands) Sep. 2020 Sep. 2019 Net interest income $ 27,178 $ 27,340 Provision for loan losses 3,700 506 Net interest income after provision $ 23,478 $ 26,834 Non interest income 21,238 12,145 Non interest expense 33,474 28,043 Income before income taxes $ 11,242 $ 10,936 Income tax expense* 2,073 2,018 Net income $ 9,169 $ 8,918 Preferred share dividends - 487 Net income to common shareholders $ 9,169 $ 8,431 Basic earnings per share $ 1.19 $ 1.31 Diluted earnngs per share $ 1.19 $ 1.12 * Income tax expense for Edon calculated using a 21% statuatory rate |
Available for Sale Securities (
Available for Sale Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Securities [Abstract] | |
Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities | Gross Gross ($ in thousands) Amortized Unrealized Unrealized September 30, 2020 Cost Gains Losses Fair Value U.S. Treasury and Government agencies $ 6,555 $ 312 $ - $ 6,867 Mortgage-backed securities 107,356 1,898 (61 ) 109,193 State and political subdivisions 11,093 663 (1 ) 11,755 Other corporate securities 2,500 - - 2,500 Totals $ 127,504 $ 2,873 $ (62 ) $ 130,315 Gross Gross Amortized Unrealized Unrealized December 31, 2019 Cost Gains Losses Fair Value U.S. Treasury and Government agencies $ 12,023 $ 181 $ (2 ) $ 12,202 Mortgage-backed securities 77,892 492 (202 ) 78,182 State and political subdivisions 10,199 366 (1 ) 10,564 Other corporate securities - - - - Totals $ 100,114 $ 1,039 $ (205 ) $ 100,948 |
Schedule of amortized cost and fair value of securities available-for-sale by contractual maturity | Amortized ($ in thousands) Cost Fair Value Within one year $ 757 $ 763 Due after one year through five years 6,433 6,603 Due after five years through ten years 6,995 7,282 Due after ten years 5,963 6,474 20,148 21,122 Mortgage-backed securities 107,356 109,193 Totals $ 127,504 $ 130,315 |
Schedule of securities with unrealized losses | Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and Government agencies $ - $ - $ - $ - $ - $ - Mortgage-backed securities 22,474 (57 ) 750 (4 ) 23,224 (61 ) State and political subdivisions 96 (1 ) - - 96 (1 ) Other corporate securities - - - - - - Totals $ 22,570 $ (58 ) $ 750 $ (4 ) $ 23,320 $ (62 ) Less than 12 Months 12 Months or Longer Total December 31, 2019 Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses U.S. Treasury and Government agencies $ 872 $ (1 ) $ 2,598 $ (1 ) $ 3,470 $ (2 ) Mortgage-backed securities 30,692 (157 ) 4,264 (45 ) 34,956 (202 ) State and political subdivisions 339 (1 ) - - 339 (1 ) Other corporate securities - - - - - - Totals $ 31,903 $ (159 ) $ 6,862 $ (46 ) $ 38,765 $ (205 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Receivables [Abstract] | |
Schedule of categories of loans | Total Loans Nonaccrual Loans ($ in thousands) September 2020 December 2019 September 2020 December 2019 Commercial & industrial $ 218,833 $ 151,047 $ 1,140 $ 1,772 Commercial real estate - owner occupied 107,128 98,488 1,450 1,362 Commercial real estate - nonowner occupied 264,651 268,294 1,025 464 Agricultural 57,437 50,994 - - Residential real estate 178,485 193,159 2,481 1,635 Home equity line of credit (HELOC) 47,003 48,070 296 249 Consumer 14,421 14,738 17 18 Total loans $ 887,958 $ 824,790 $ 6,409 $ 5,500 Net deferred costs (fees) $ (2,108 ) $ 720 Total loans, net deferred costs (fees) $ 885,850 $ 825,510 Allowance for loan losses $ (11,793 ) $ (8,755 ) |
Schedule of allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method | ($ in thousands) For the Three Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 2,844 $ 3,604 $ 504 $ 2,278 $ 783 $ 10,013 Charge offs - - - - (32 ) (32 ) Recoveries 10 - - 1 1 12 Provision 342 911 46 258 243 1,800 Ending balance $ 3,196 $ 4,515 $ 550 $ 2,537 $ 995 $ 11,793 For the Nine Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Charge offs (582 ) - - (37 ) (67 ) (686 ) Recoveries 15 - - 3 6 24 Provision 1,880 913 116 368 423 3,700 Ending balance $ 3,196 $ 4,515 $ 550 $ 2,537 $ 995 $ 11,793 For the Three Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 1,378 $ 3,448 $ 509 $ 2,287 $ 684 $ 8,306 Charge offs (95 ) - - (23 ) (10 ) (128 ) Recoveries 7 - - 1 6 14 Provision (credit) 103 72 (16 ) 128 13 300 Ending balance $ 1,393 $ 3,520 $ 493 $ 2,393 $ 693 $ 8,492 For the Nine Months Ended Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Beginning balance $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Charge offs (143 ) - - (23 ) (42 ) (208 ) Recoveries 8 - - 2 23 33 Provision (credit) 93 597 11 (153 ) (48 ) 500 Ending balance $ 1,393 $ 3,520 $ 493 $ 2,393 $ 693 $ 8,492 Loans Receivable at Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Allowance: Ending balance: individually evaluated for impairment $ 1 $ - $ - $ 167 $ 3 $ 171 Ending balance: collectively evaluated for impairment $ 3,195 $ 4,515 $ 550 $ 2,370 $ 992 $ 11,622 Totals $ 3,196 $ 4,515 $ 550 $ 2,537 $ 995 $ 11,793 Loans: Ending balance: individually evaluated for impairment $ 1,117 $ 2,341 $ - $ 3,239 $ 136 $ 6,833 Ending balance: collectively evaluated for impairment $ 217,716 $ 369,438 $ 57,437 $ 175,246 $ 61,288 $ 881,125 Totals $ 218,833 $ 371,779 $ 57,437 $ 178,485 $ 61,424 $ 887,958 Loans Receivable at Commercial & industrial Commercial real estate Agricultural Residential real estate Consumer Total Allowance: Ending balance: individually evaluated for impairment $ 511 $ 147 $ - $ 68 $ - $ 726 Ending balance: collectively evaluated for impairment $ 1,372 $ 3,455 $ 434 $ 2,135 $ 633 $ 8,029 Totals $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Loans: Ending balance: individually evaluated for impairment $ 1,722 $ 1,558 $ - $ 2,274 $ 31 $ 5,585 Ending balance: collectively evaluated for impairment $ 149,325 $ 365,224 $ 50,994 $ 190,885 $ 62,777 $ 819,205 Totals $ 151,047 $ 366,782 $ 50,994 $ 193,159 $ 62,808 $ 824,790 |
Schedule of credit risk profile of the Company's loan portfolio based on rating category | ($ in thousands) Commercial & industrial Commercial real Commercial real Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 216,293 $ 105,400 $ 261,953 $ 57,427 $ 174,776 $ 46,646 $ 14,394 $ 876,889 Special Mention (5) 776 - 286 - - - - 1,062 Substandard (6) 1,009 278 1,387 10 3,678 357 27 6,746 Doubtful (7) 755 1,450 1,025 - 31 - - 3,261 Loss (8) - - - - - - - - Total Loans $ 218,833 $ 107,128 $ 264,651 $ 57,437 $ 178,485 $ 47,003 $ 14,421 $ 887,958 December 31, 2019 Commercial & industrial Commercial real Commercial real Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 147,667 $ 96,836 $ 265,839 $ 50,994 $ 190,438 $ 47,787 $ 14,706 $ 814,267 Special Mention (5) 597 - 543 - - - - 1,140 Substandard (6) 1,444 290 1,663 - 2,689 283 32 6,401 Doubtful (7) 1,339 1,362 249 - 32 - - 2,982 Loss (8) - - - - - - - - Total Loans $ 151,047 $ 98,488 $ 268,294 $ 50,994 $ 193,159 $ 48,070 $ 14,738 $ 824,790 |
Schedule of loan portfolio aging analysis | Greater Than Total ($ in thousands) September 30, 2020 30-59 Days Past Due 60-89 Days Past Due 90 Days Past Due Total Past Due Current Loans Receivable Commercial & industrial $ 73 $ 31 $ 780 $ 884 $ 217,949 $ 218,833 Commercial real estate - owner occupied - - 1,450 1,450 105,678 107,128 Commercial real estate - nonowner occupied 42 197 834 1,073 263,578 264,651 Agricultural - 10 - 10 57,427 57,437 Residential real estate - 755 1,371 2,126 176,359 178,485 HELOC 127 90 125 342 46,661 47,003 Consumer 29 21 9 59 14,362 14,421 Total Loans $ 271 $ 1,104 $ 4,569 $ 5,944 $ 882,014 $ 887,958 Greater Than Total December 31, 2019 30-59 Days 60-89 Days 90 Days Past Total Past Due Current Loans Receivable Commercial & industrial $ 64 $ - $ 312 $ 376 $ 150,671 $ 151,047 Commercial real estate - owner occupied - - - - 98,488 98,488 Commercial real estate - nonowner occupied - - 215 215 268,079 268,294 Agricultural 13 - - 13 50,981 50,994 Residential real estate 309 415 644 1,368 191,791 193,159 HELOC 166 91 56 313 47,757 48,070 Consumer 65 93 14 172 14,566 14,738 Total Loans $ 617 $ 599 $ 1,241 $ 2,457 $ 822,333 $ 824,790 |
Schedule of impaired loan activity | ($ in thousands) Nine Months Ended Recorded Unpaid Principal Related Average Recorded Interest Income September 30, 2020 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 925 $ 1,721 $ - $ 1,886 $ 34 Commercial real estate - owner occupied 1,362 1,362 - 1,362 - Commercial real estate - nonowner occupied 979 979 - 1,051 14 Agricultural - - - - - Residential real estate 1,228 1,294 - 1,634 70 HELOC 57 57 64 3 Consumer 9 9 - 13 1 With a specific allowance recorded: Commercial & industrial 192 249 1 249 - Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 2,011 2,048 167 2,056 10 HELOC 70 70 3 84 4 Consumer - - - - - Totals: Commercial & industrial $ 1,117 $ 1,970 $ 1 $ 2,135 $ 34 Commercial real estate - owner occupied $ 1,362 $ 1,362 $ - $ 1,362 $ - Commercial real estate - nonowner occupied $ 979 $ 979 $ - $ 1,051 $ 14 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 3,239 $ 3,342 $ 167 $ 3,690 $ 80 HELOC $ 127 $ 127 $ 3 $ 148 $ 7 Consumer $ 9 $ 9 $ - $ 13 $ 1 Three Months Ended Average Recorded Interest Income ($ in thousands) Investment Recognized With no related allowance recorded: Commercial & industrial $ 1,860 $ 10 Commercial real estate - owner occupied 1,362 - Commercial real estate - nonowner occupied 1,051 6 Agricultural - - Residential real estate 1,619 20 HELOC 60 1 Consumer 11 - With a specific allowance recorded: Commercial & industrial 249 - Commercial real estate - owner occupied - - Commercial real estate - nonowner occupied - - Agricultural - - Residential real estate 2,051 10 HELOC 82 1 Consumer - - Totals: Commercial & industrial $ 2,109 $ 10 Commercial real estate - owner occupied $ 1,362 $ - Commercial real estate - nonowner occupied $ 1,051 $ 6 Agricultural $ - $ - Residential real estate $ 3,670 $ 30 HELOC $ 142 $ 2 Consumer $ 11 $ - ($ in thousands) Twelve Months Ended Recorded Unpaid Principal Related Average Recorded Interest Income December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 722 $ 1,092 $ - $ 1,377 $ 114 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied 196 197 - 259 21 Agricultural - - - - - Residential real estate 1,621 1,687 - 2,001 106 HELOC 16 16 18 1 Consumer 15 15 - 19 1 With a specific allowance recorded: Commercial & industrial 1,000 1,000 511 823 49 Commercial real estate - owner occupied 1,362 1,362 147 1,362 38 Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 653 653 68 666 31 HELOC - - - - - Consumer - - - - - Totals: Commercial & industrial $ 1,722 $ 2,092 $ 511 $ 2,200 $ 163 Commercial real estate - owner occupied $ 1,362 $ 1,362 $ 147 $ 1,362 $ 38 Commercial real estate - nonowner occupied $ 196 $ 197 $ - $ 259 $ 21 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 2,274 $ 2,340 $ 68 $ 2,667 $ 137 HELOC $ 16 $ 16 $ - $ 18 $ 1 Consumer $ 15 $ 15 $ - $ 19 $ 1 Nine Months Ended Three Months Ended September 30, 2019 Average Recorded Interest Income Average Recorded Interest Income ($ in thousands) Investment Recognized Investment Recognized With no related allowance recorded: Commercial & industrial $ 1,432 $ 76 $ 1,202 $ 22 Commercial real estate - owner occupied - - - - Commercial real estate - nonowner occupied 259 15 259 5 Agricultural - - - - Residential real estate 1,808 74 1,793 24 HELOC 19 1 17 - Consumer 20 1 18 - With a specific allowance recorded: Commercial & industrial - - - - Commercial real estate - owner occupied - - - - Commercial real estate - nonowner occupied - - - - Agricultural - - - - Residential real estate 538 19 533 6 HELOC - - - - Consumer - - - - Totals: Commercial & industrial $ 1,432 $ 76 $ 1,202 $ 22 Commercial real estate - owner occupied $ - $ - $ - $ - Commercial real estate - nonowner occupied $ 259 $ 15 $ 259 $ 5 Agricultural $ - $ - $ - $ - Residential real estate $ 2,346 $ 93 $ 2,326 $ 30 HELOC $ 19 $ 1 $ 17 $ - Consumer $ 20 $ 1 $ 18 $ - |
Schedule of TDR activity | ($ in thousands) Number of Loans Pre-Modification Post Modification Commercial & industrial 3 $ 763 $ 763 Total modifications 3 $ 763 $ 763 Interest Total Only Term Combination Modification Commercial & industrial $ 150 $ 613 $ - $ 763 Total modifications $ 150 $ 613 $ - $ 763 |
Accounting for Certain Loans _2
Accounting for Certain Loans Acquired in a Transfer (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounting For Certain Loans Acquired In A Transfer [Abstract] | |
Schedule of acquired loans included in the balance sheet | ($ in thousands) September 30, Commercial & industrial $ 1,716 Commercial real estate - owner occupied - Commercial real estate - nonowner occupied 518 Agricultural 9,968 Residential real estate 3,277 Home equity line of credit (HELOC) - Consumer 181 Total loans $ 15,660 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Mortgage Servicing Rights [Abstract] | |
Schedule of mortgage servicing rights capitalized and related amortization | ($ in thousands) 2020 2019 Carrying amount, January 1 $ 11,017 $ 11,365 Mortgage servicing rights capitalized during the year 3,971 1,895 Mortgage servicing rights amortization during the year (3,479 ) (1,415 ) Net change in valuation allowance (2,974 ) (1,398 ) Carrying amount, September 30 $ 8,535 $ 10,447 Valuation allowance: January 1 $ 1,306 $ 212 Increase 2,974 1,398 September 30 $ 4,280 $ 1,610 |
Goodwill (Tables)
Goodwill (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of activity in goodwill | Nine Months Ended September 30, September 30, ($ in thousands) Carrying Amount Carrying Amount Beginning balance $ 17,792 $ 16,353 Acquired goodwill 4,325 1,439 Measurement period adjustments (26 ) - Ending balance $ 22,091 $ 17,792 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of notional amount and fair value of interest rate swaps | September 30, December 31, Notional Fair Notional Fair ($ in thousands) Amount Value Amount Value Asset Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 88,509 $ 9,169 $ 82,826 $ 2,846 IRLCs 62,795 290 16,347 55 Total contracts $ 151,304 $ 9,459 $ 99,173 $ 2,901 Liability Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 88,509 $ (9,169 ) $ 82,826 $ (2,846 ) Forward contracts 71,500 (197 ) 22,000 (32 ) Total contracts $ 160,009 $ (9,366 ) $ 104,826 $ (2,878 ) |
Schedule of consolidated statements of income for non-hedging derivative financial instruments | Amount of gain (loss) ($ in thousands) Statement of income classification 2020 2019 Interest rate swap contracts Other income $ 282 $ 394 Interest rate swap contracts Other expense - - IRLCs Gain on sale of mortgage loans & OMSR 235 (215 ) Forward contracts Gain on sale of mortgage loans & OMSR (165 ) 199 |
Schedule of financial assets and derivative assets | Gross Gross amounts offset in the Net amounts of assets presented in the Gross amounts not offset in the consolidated balance sheet ($ in thousands) amounts of consolidated consolidated Financial instruments Cash Net amount September 30, 2020 Interest rate swaps $ 9,169 $ - $ 9,169 $ - $ - $ 9,169 December 31, 2019 Interest rate swaps $ 2,901 $ 55 $ 2,846 $ - $ - $ 2,846 |
Schedule of financial liabilities and derivative liabilities | Gross Gross Net amounts of liabilities presented in the Gross amounts not offset in the consolidated balance sheet ($ in thousands) amounts of consolidated consolidated Financial instruments Cash Net amount September 30, 2020 Interest rate swaps $ 9,169 $ - $ 9,169 $ 1,155 $ 8,241 $ (227 ) December 31, 2019 Interest rate swaps $ 2,901 $ 55 $ 2,846 $ - $ 3,242 $ (396 ) |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of short-term borrowings | ($ in thousands) September 30, December 31, Securities Sold Under Repurchase Agreements $ 20,710 $ 12,945 Totals $ 20,710 $ 12,945 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Text Block [Abstract] | |
Schedule of aggregate annual maturities of federal home loan bank advances | ($ in thousands) Debt 2021 2,500 2022 3,000 2023 2,500 Total $ 8,000 |
Fair Value of Assets and Liab_2
Fair Value of Assets and Liabilities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of fair value measurements of securities measured at fair value on a recurring basis | ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 6,867 $ - $ 6,867 $ - Mortgage-backed securities 109,193 - 109,193 - State and political subdivisions 11,755 - 11,755 - Other corporate securities 2,500 - 2,500 - Interest rate contracts - assets 9,169 - 9,169 - Interest rate contracts - liabilities (9,169 ) - (9,169 ) - Forward contracts (197 ) (197 ) - - IRLCs 290 - - 290 ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,202 $ - $ 12,202 $ - Mortgage-backed securities 78,182 - 78,182 - State and political subdivisions 10,564 - 10,564 - Interest rate contracts - assets 2,846 - 2,846 - Interest rate contracts - liabilities (2,846 ) - (2,846 ) - Forward contracts (32 ) (32 ) - - IRLCs 55 - - 55 |
Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis | ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 3,604 $ - $ - $ 3,604 Mortgage servicing rights 8,535 - - 8,535 IRLCs 290 - - 290 ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 2,527 $ - $ - $ 2,527 Mortgage servicing rights 5,084 - - 5,084 IRLCs 55 - - 55 |
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring | Fair value at Range (weighted- ($ in thousands) 9/30/2020 Valuation technique Unobservable inputs average) Collateral-dependent impaired loans $ 3,604 Market comparable properties Comparability adjustments (%) 0 - 30% (21%) Mortgage servicing rights 8,535 Discounted cash flow Discount Rate 8.44 % Constant prepayment rate 18.42 % IRLCs 290 Discounted cash flow P&I earnings credit 0.15 % T&I earnings credit 0.22 % Inflation for cost of servicing 1.50 % Fair Value at Range (weighted- ($ in thousands) 12/31/2019 Valuation technique Unobservable inputs average) Collateral-dependent impaired loans $ 2,527 Market comparable properties Comparability adjustments (%) 2 - 62% (28%) Mortgage servicing rights 5,084 Discounted cash flow Discount Rate 9.36 % Constant prepayment rate 10.19 % IRLCs 55 Discounted cash flow P&I earnings credit 1.78 % T&I earnings credit 1.93 % Inflation for cost of servicing 1.50 % |
Schedule of estimated fair values of company's financial instruments | ($ in thousands) Carrying Fair value measurements using September 30, 2020 amount Fair value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 94,641 $ 94,641 $ 94,641 $ - $ - Interest bearing time deposits 8,956 8,956 8,956 - - Loans held for sale 13,943 14,507 - 14,507 - Loans, net of allowance for loan losses 874,057 866,131 - - 866,131 Federal Reserve and FHLB Bank stock, at cost 5,303 5,303 - 5,303 - Interest receivable 4,159 4,159 - 4,159 - Financial liabilities Deposits $ 1,014,015 $ 1,016,552 $ 763,587 $ 252,965 $ - Short term borrowings 20,710 20,710 - 20,710 - FHLB advances 8,000 8,316 - 8,316 - Trust preferred securities 10,310 8,261 - 8,261 - Interest payable 946 946 - 946 - ($ in thousands) Carrying Fair value measurements using December 31, 2019 amount Fair value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 27,064 $ 27,064 $ 27,064 $ - $ - Loans held for sale 7,258 7,419 - 7,419 - Loans, net of allowance for loan losses 816,755 804,808 - - 804,808 Federal Reserve and FHLB Bank stock, at cost 4,648 4,648 - 4,648 - Interest receivable 3,106 3,106 - 3,106 - Financial liabilities Deposits $ 840,219 $ 840,272 $ 582,466 $ 257,806 $ - Repurchase agreements 12,945 12,945 - 12,945 - FHLB advances 16,000 16,149 - 16,149 - Trust preferred securities 10,310 9,201 - 9,201 - Interest payable 1,191 1,191 - 1,191 - |
Share Based Compensation (Table
Share Based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of stock option activity under the Company's plans | ($ in thousands - except per share data) Shares Weighted- Average Exercise Price Weighted- Average Remaining Term Aggregate Intrinsic Value Outstanding, December 31, 2019 28,250 $ 6.98 Granted - - Exercised (26,950 ) 6.98 Forfeited - - Expired (1,300 ) 6.98 Outstanding, September 30, 2020 - - - - Exercisable, September 30, 2020 - $ - - $ - |
Schedule of restricted stock activity under the Company's plans | Shares Weighted- Nonvested, December 31, 2019 43,741 $ 17.41 Granted 16,442 19.57 Vested (22,426 ) 17.17 Forfeited (1,839 ) 17.61 Nonvested, September 30, 2020 35,918 $ 18.53 |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Schedule of earnings per share - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of earnings per share [Abstract] | ||||
Distributed earnings allocated to common shares | $ 764 | $ 581 | $ 2,278 | $ 1,723 |
Undistributed earnings allocated to common shares | 7,296 | 6,159 | ||
Undistributed (in excess of) earnings allocated to common shares | 4,482 | 2,944 | ||
Net earnings allocated to common shares | 5,246 | 3,525 | 9,574 | 7,882 |
Net earnings allocated to participating securities | 4 | 4 | 12 | 13 |
Dividends on convertible preferred shares | 233 | 720 | ||
Net Income allocated to common shares and participating securities | $ 5,250 | $ 3,762 | $ 9,586 | $ 8,615 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 7,607 | 6,397 | 7,700 | 6,459 |
Dilutive effect of stock compensation (in Shares) | 34 | 36 | ||
Dilutive effect of preferred convertible shares (in Shares) | 1,460 | |||
Dilutive effect of convertible shares (in Shares) | 1,445 | |||
Weighted average shares outstanding for diluted earnings per share (in Shares) | 7,607 | 7,876 | 7,700 | 7,955 |
Basic earnings per common share (in Dollars per share) | $ 0.69 | $ 0.55 | $ 1.25 | $ 1.22 |
Diluted earnings per common share (in Dollars per share) | $ 0.69 | $ 0.48 | $ 1.25 | $ 1.08 |
Business Combination (Details)
Business Combination (Details) - USD ($) | Jun. 05, 2020 | Sep. 30, 2020 | Jun. 30, 2020 | Sep. 30, 2020 |
Business Combinations [Abstract] | ||||
Fixed consideration received by shareholders of edon | $ 103.50 | |||
Total consideration of edon | $ 15,500,000 | |||
Expenses of direct acquisition costs | $ 1,200,000 | |||
Merger expenses | 0 | $ 1,200,000 | ||
Goodwill | $ 4,300,000 | |||
Intangible assets in business combination | $ 700,000 | |||
Intangible assets amortized period | 10 years | |||
Amount of contractual principal of loans | 16,300,000 | $ 16,300,000 | ||
Contractual cash flows not expected to be collected | 400,000 | |||
Minimum acquisition of revenue and earnings | $ 100,000 | 100,000 | ||
Income tax expense statutory rate | $ 0.21 |
Business Combination (Details)
Business Combination (Details) - Schedule of fair value of identifiable assets and liabilities $ in Thousands | Jun. 05, 2020USD ($) |
Fair value of assets acquired | |
Cash and cash equivalents | $ 31,756 |
Interest bearing time deposits | 11,542 |
Investment securities | 1,362 |
Federal Home Loan Bank stock | 117 |
Loans held for investment | 16,395 |
Premises and equipment | 446 |
Goodwill | 4,325 |
Core deposit intangible | 660 |
Other assets | 192 |
Total assets acquired | 66,795 |
Fair value of liabilities assumed | |
Deposits | 51,053 |
Other liabilities | 223 |
Total liabilities assumed | 51,276 |
Total purchase price (cash) | $ 15,519 |
Business Combination (Details_2
Business Combination (Details) - Schedule of pro forma financial information - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | |||||||
Sep. 30, 2020 | Jun. 30, 2020 | Mar. 31, 2020 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | ||
Schedule of pro forma financial information [Abstract] | |||||||||
Net interest income | $ 9,259 | $ 9,058 | $ 26,679 | $ 26,230 | |||||
Provision for loan losses | 1,800 | 300 | 3,700 | 500 | |||||
Net interest income after provision | 7,459 | 8,758 | 22,979 | 25,730 | |||||
Non interest income | 10,418 | 5,366 | 21,194 | 12,057 | |||||
Non interest expense | 11,335 | 9,500 | 32,403 | 27,234 | |||||
Income before income taxes | 6,542 | 4,624 | 11,770 | 10,553 | |||||
Income tax expense | [1] | 1,292 | 862 | 2,184 | 1,938 | ||||
Net income | 5,250 | $ 3,655 | $ 681 | 3,762 | $ 2,627 | $ 2,226 | 9,586 | 8,615 | |
Preferred share dividends | 233 | 720 | |||||||
Net income to common shareholders | $ 5,250 | $ 3,529 | $ 9,586 | $ 7,895 | |||||
Basic earnings per share (in Dollars per share) | $ 0.69 | $ 0.55 | $ 1.25 | $ 1.22 | |||||
Diluted earnngs per share (in Dollars per share) | $ 0.69 | $ 0.48 | $ 1.25 | $ 1.08 | |||||
[1] | Income tax expense for Edon calculated using a 21% statuatory rate |
Available for Sale Securities_2
Available for Sale Securities (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Securities [Abstract] | |||
Fair value of securities pledged as collateral, to secure public deposits and for other purposes | $ 45,100 | $ 34,800 | |
Fair value of securities delivered for repurchase agreements | 24,900 | 19,500 | |
Realized gains | $ 200 | ||
Total fair value of investments | $ 23,300 | $ 38,800 | |
Fair value as a percentage of available-for-sale investment portfolio | 18.00% | 38.00% | |
Total unrealized loss on securities portfolio | $ 60 | $ 200 |
Available for Sale Securities_3
Available for Sale Securities (Details) - Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Available for Sale Securities (Details) - Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | $ 127,504 | $ 100,114 |
Gross Unrealized Gains | 2,873 | 1,039 |
Gross Unrealized Losses | (62) | (205) |
Fair Value | 130,315 | 100,948 |
U.S. Treasury and Government agencies [Member] | ||
Available for Sale Securities (Details) - Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 6,555 | 12,023 |
Gross Unrealized Gains | 312 | 181 |
Gross Unrealized Losses | (2) | |
Fair Value | 6,867 | 12,202 |
Mortgage-backed securities [Member] | ||
Available for Sale Securities (Details) - Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 107,356 | 77,892 |
Gross Unrealized Gains | 1,898 | 492 |
Gross Unrealized Losses | (61) | (202) |
Fair Value | 109,193 | 78,182 |
State and political subdivisions [Member] | ||
Available for Sale Securities (Details) - Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 11,093 | 10,199 |
Gross Unrealized Gains | 663 | 366 |
Gross Unrealized Losses | (1) | (1) |
Fair Value | 11,755 | 10,564 |
Other corporate securities [Member] | ||
Available for Sale Securities (Details) - Schedule of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 2,500 | |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 2,500 |
Available for Sale Securities_4
Available for Sale Securities (Details) - Schedule of amortized cost and fair value of securities available-for-sale by contractual maturity $ in Thousands | Sep. 30, 2020USD ($) |
Amortized Cost [Member] | |
Available for Sale Securities (Details) - Schedule of amortized cost and fair value of securities available-for-sale by contractual maturity [Line Items] | |
Available for Sale, Amortized Cost, Within one year | $ 757 |
Available for Sale, Amortized Cost, Due after one year through five years | 6,433 |
Available for Sale, Amortized Cost, Due after five years through ten years | 6,995 |
Available for Sale, Amortized Cost, Due after ten years | 5,963 |
Available for Sale, Amortized Cost | 20,148 |
Available for Sale, Amortized Cost, Mortgage-backed securities | 107,356 |
Available for Sale, Amortized Cost, Totals | 127,504 |
Fair Value [Member] | |
Available for Sale Securities (Details) - Schedule of amortized cost and fair value of securities available-for-sale by contractual maturity [Line Items] | |
Available for Sale, Fair Value, Within one year | 763 |
Available for Sale, Fair Value, Due after one year through five years | 6,603 |
Available for Sale, Fair Value, Due after five years through ten years | 7,282 |
Available for Sale, Fair Value, Due after ten years | 6,474 |
Available for Sale, Fair Value | 21,122 |
Available for Sale, Fair Value, Mortgage-backed securities | 109,193 |
Available for Sale, Fair Value, Totals | $ 130,315 |
Available for Sale Securities_5
Available for Sale Securities (Details) - Schedule of securities with unrealized losses - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Available for Sale Securities (Details) - Schedule of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | $ 22,570 | $ 31,903 |
Less than 12 Months, Unrealized Losses | (58) | (159) |
12 Months or Longer, Fair Value | 750 | 6,862 |
12 Months or Longer, Unrealized Losses | (4) | (46) |
Total Fair Value | 23,320 | 38,765 |
Total Unrealized Losses | (62) | (205) |
U.S. Treasury and Government agencies [Member] | ||
Available for Sale Securities (Details) - Schedule of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | 872 | |
Less than 12 Months, Unrealized Losses | (1) | |
12 Months or Longer, Fair Value | 2,598 | |
12 Months or Longer, Unrealized Losses | (1) | |
Total Fair Value | 3,470 | |
Total Unrealized Losses | (2) | |
Mortgage-backed securities [Member] | ||
Available for Sale Securities (Details) - Schedule of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | 22,474 | 30,692 |
Less than 12 Months, Unrealized Losses | (57) | (157) |
12 Months or Longer, Fair Value | 750 | 4,264 |
12 Months or Longer, Unrealized Losses | (4) | (45) |
Total Fair Value | 23,224 | 34,956 |
Total Unrealized Losses | (61) | (202) |
State and political subdivisions [Member] | ||
Available for Sale Securities (Details) - Schedule of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | 96 | 339 |
Less than 12 Months, Unrealized Losses | (1) | (1) |
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total Fair Value | 96 | 339 |
Total Unrealized Losses | (1) | (1) |
Other corporate securities [ Member] | ||
Available for Sale Securities (Details) - Schedule of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | ||
Less than 12 Months, Unrealized Losses | ||
12 Months or Longer, Fair Value | ||
12 Months or Longer, Unrealized Losses | ||
Total Fair Value | ||
Total Unrealized Losses |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Mar. 27, 2020 | Sep. 30, 2020 | |
Receivables [Abstract] | ||
Principal amount outstanding of loans held-in-portfolio | $ 100 | |
Impaired loans which included in groups of homogenous loans | Impaired loans less than $100,000 are included in groups of homogenous loans. | |
Description of Coronavirus Aid, Relief, and Economic Security Act | President Trump signed the CARES Act, which extends the duration of loan forbearance (deferral) agreements beyond the current three-month period before a loan is considered to be a troubled debt restructure. As of September 30, 2020, the Company had approved 26 loan deferral requests for clients with a total dollar amount of $38.4 million, which do not constitute TDR’s as a result of the CARES act. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details) - Schedule of categories of loans - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 887,958 | $ 824,790 |
Nonaccrual Loans | 6,409 | 5,500 |
Net deferred costs (fees) | (2,108) | 720 |
Total loans, net deferred costs (fees) | 885,850 | 825,510 |
Allowance for loan losses | (11,793) | (8,755) |
Commercial & industrial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 218,833 | 151,047 |
Nonaccrual Loans | 1,140 | 1,772 |
Commercial real estate - owner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 107,128 | 98,488 |
Nonaccrual Loans | 1,450 | 1,362 |
Commercial real estate - nonowner occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 264,651 | 268,294 |
Nonaccrual Loans | 1,025 | 464 |
Agricultural [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 57,437 | 50,994 |
Nonaccrual Loans | ||
Residential real estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 178,485 | 193,159 |
Nonaccrual Loans | 2,481 | 1,635 |
Home equity line of credit (HELOC) [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 47,003 | 48,070 |
Nonaccrual Loans | 296 | 249 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 14,421 | 14,738 |
Nonaccrual Loans | $ 17 | $ 18 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details) - Schedule of allowance for loan losses and the recorded investment in loans based on portfolio segment and impairment method - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | $ 10,013 | $ 8,306 | $ 8,755 | $ 8,167 | |
Ending balance | 11,793 | 8,492 | 11,793 | 8,492 | |
Allowance: | |||||
Individually evaluated for impairment | 171 | 171 | $ 726 | ||
Collectively evaluated for impairment | 11,622 | 11,622 | 8,029 | ||
Totals | 11,793 | 11,793 | 8,755 | ||
Loans: | |||||
Individually evaluated for impairment | 6,833 | 6,833 | 5,585 | ||
Collectively evaluated for impairment | 881,125 | 881,125 | 819,205 | ||
Totals | 887,958 | 887,958 | 824,790 | ||
Charge offs | (32) | (128) | (686) | (208) | |
Recoveries | 12 | 14 | 24 | 33 | |
Provision (credit) | 1,800 | 300 | 3,700 | 500 | |
Commercial & industrial [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 2,844 | 1,378 | 1,883 | 1,435 | |
Ending balance | 3,196 | 1,393 | 3,196 | 1,393 | |
Allowance: | |||||
Individually evaluated for impairment | 1 | 1 | 511 | ||
Collectively evaluated for impairment | 3,195 | 3,195 | 1,372 | ||
Totals | 3,196 | 3,196 | 1,883 | ||
Loans: | |||||
Individually evaluated for impairment | 1,117 | 1,117 | 1,722 | ||
Collectively evaluated for impairment | 217,716 | 217,716 | 149,325 | ||
Totals | 218,833 | 218,833 | 151,047 | ||
Charge offs | (95) | (582) | (143) | ||
Recoveries | 10 | 7 | 15 | 8 | |
Provision (credit) | 342 | 103 | 1,880 | 93 | |
Commercial real estate [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 3,604 | 3,448 | 3,602 | 2,923 | |
Ending balance | 4,515 | 3,520 | 4,515 | 3,520 | |
Allowance: | |||||
Individually evaluated for impairment | 147 | ||||
Collectively evaluated for impairment | 4,515 | 4,515 | 3,455 | ||
Totals | 4,515 | 4,515 | 3,602 | ||
Loans: | |||||
Individually evaluated for impairment | 2,341 | 2,341 | 1,558 | ||
Collectively evaluated for impairment | 369,438 | 369,438 | 365,224 | ||
Totals | 371,779 | 371,779 | 366,782 | ||
Charge offs | |||||
Recoveries | |||||
Provision (credit) | 911 | 72 | 913 | 597 | |
Agricultural [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 504 | 509 | 434 | 482 | |
Ending balance | 550 | 493 | 550 | 493 | |
Allowance: | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 550 | 550 | 434 | ||
Totals | 550 | 550 | 434 | ||
Loans: | |||||
Individually evaluated for impairment | |||||
Collectively evaluated for impairment | 57,437 | 57,437 | 50,994 | ||
Totals | 57,437 | 57,437 | 50,994 | ||
Charge offs | |||||
Recoveries | |||||
Provision (credit) | 46 | (16) | 116 | 11 | |
Residential real estate [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 2,278 | 2,287 | 2,203 | 2,567 | |
Ending balance | 2,537 | 2,393 | 2,537 | 2,393 | |
Allowance: | |||||
Individually evaluated for impairment | 167 | 167 | 68 | ||
Collectively evaluated for impairment | 2,370 | 2,370 | 2,135 | ||
Totals | 2,537 | 2,537 | 2,203 | ||
Loans: | |||||
Individually evaluated for impairment | 3,239 | 3,239 | 2,274 | ||
Collectively evaluated for impairment | 175,246 | 175,246 | 190,885 | ||
Totals | 178,485 | 178,485 | 193,159 | ||
Charge offs | (23) | (37) | (23) | ||
Recoveries | 1 | 1 | 3 | 2 | |
Provision (credit) | 258 | 128 | 368 | (153) | |
Consumer [Member] | |||||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||||
Beginning balance | 783 | 684 | 633 | 760 | |
Ending balance | 995 | 693 | 995 | 693 | |
Allowance: | |||||
Individually evaluated for impairment | 3 | 3 | |||
Collectively evaluated for impairment | 992 | 992 | 633 | ||
Totals | 995 | 995 | 633 | ||
Loans: | |||||
Individually evaluated for impairment | 136 | 136 | 31 | ||
Collectively evaluated for impairment | 61,288 | 61,288 | 62,777 | ||
Totals | 61,424 | 61,424 | $ 62,808 | ||
Charge offs | (32) | (10) | (67) | (42) | |
Recoveries | 1 | 6 | 6 | 23 | |
Provision (credit) | $ 243 | $ 13 | $ 423 | $ (48) |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details) - Schedule of credit risk profile of the Company's loan portfolio based on rating category - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 887,958 | $ 824,790 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 876,889 | 814,267 |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,062 | 1,140 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,746 | 6,401 |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,261 | 2,982 |
Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 218,833 | 151,047 |
Commercial and Industrial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 216,293 | 147,667 |
Commercial and Industrial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 776 | 597 |
Commercial and Industrial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,009 | 1,444 |
Commercial and Industrial [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 755 | 1,339 |
Commercial and Industrial [Member] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 107,128 | 98,488 |
Commercial real estate - owner occupied [Member ] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 105,400 | 96,836 |
Commercial real estate - owner occupied [Member ] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Commercial real estate - owner occupied [Member ] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 278 | 290 |
Commercial real estate - owner occupied [Member ] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,450 | 1,362 |
Commercial real estate - owner occupied [Member ] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 264,651 | 268,294 |
Commercial Real Estate - Nonowner Occupied [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 261,953 | 265,839 |
Commercial Real Estate - Nonowner Occupied [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 286 | 543 |
Commercial Real Estate - Nonowner Occupied [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,387 | 1,663 |
Commercial Real Estate - Nonowner Occupied [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,025 | 249 |
Commercial Real Estate - Nonowner Occupied [Member] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Agricultural [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 57,437 | 50,994 |
Agricultural [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 57,427 | 50,994 |
Agricultural [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Agricultural [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 10 | |
Agricultural [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Agricultural [Member] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 178,485 | 193,159 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 174,776 | 190,438 |
Residential Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,678 | 2,689 |
Residential Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 31 | 32 |
Residential Real Estate [Member] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Home Equity Line of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 47,003 | 48,070 |
Home Equity Line of Credit [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 46,646 | 47,787 |
Home Equity Line of Credit [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Home Equity Line of Credit [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 357 | 283 |
Home Equity Line of Credit [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Home Equity Line of Credit [Member] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,421 | 14,738 |
Consumer Portfolio Segment [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,394 | 14,706 |
Consumer Portfolio Segment [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Consumer Portfolio Segment [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 27 | 32 |
Consumer Portfolio Segment [Member] | Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Consumer Portfolio Segment [Member] | Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details) - Schedule of loan portfolio aging analysis - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 5,944 | $ 2,457 |
Current | 882,014 | 822,333 |
Total Loans Receivable | 887,958 | 824,790 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 271 | 617 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,104 | 599 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 4,569 | 1,241 |
Commercial and Industrial Sector [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 884 | 376 |
Current | 217,949 | 150,671 |
Total Loans Receivable | 218,833 | 151,047 |
Commercial and Industrial Sector [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 73 | 64 |
Commercial and Industrial Sector [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 31 | |
Commercial and Industrial Sector [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 780 | 312 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,450 | |
Current | 105,678 | 98,488 |
Total Loans Receivable | 107,128 | 98,488 |
Commercial Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Commercial Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Commercial Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,450 | |
Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,073 | 215 |
Current | 263,578 | 268,079 |
Total Loans Receivable | 264,651 | 268,294 |
Commercial Real Estate - Nonowner Occupied [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 42 | |
Commercial Real Estate - Nonowner Occupied [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 197 | |
Commercial Real Estate - Nonowner Occupied [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 834 | 215 |
Agricultural [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 10 | 13 |
Current | 57,427 | 50,981 |
Total Loans Receivable | 57,437 | 50,994 |
Agricultural [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13 | |
Agricultural [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 10 | |
Agricultural [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 2,126 | 1,368 |
Current | 176,359 | 191,791 |
Total Loans Receivable | 178,485 | 193,159 |
Residential Real Estate [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 309 | |
Residential Real Estate [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 755 | 415 |
Residential Real Estate [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,371 | 644 |
HELOC [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 342 | 313 |
Current | 46,661 | 47,757 |
Total Loans Receivable | 47,003 | 48,070 |
HELOC [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 127 | 166 |
HELOC [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 90 | 91 |
HELOC [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 125 | 56 |
Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 59 | 172 |
Current | 14,362 | 14,566 |
Total Loans Receivable | 14,421 | 14,738 |
Consumer [Member] | Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 29 | 65 |
Consumer [Member] | Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 21 | 93 |
Consumer [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 9 | $ 14 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details) - Schedule of impaired loan activity - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Dec. 31, 2020 | Dec. 31, 2020 | |
Commercial & industrial [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | $ 925 | |
With no related allowance recorded, Unpaid Principal Balance | 1,721 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,886 | |
With no related allowance recorded, Interest Income Recognized | 34 | |
Commercial real estate - owner occupied [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 1,362 | |
With no related allowance recorded, Unpaid Principal Balance | 1,362 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,362 | |
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 1,362 | |
With a specific allowance recorded, Unpaid Principal Balance | 1,362 | |
With a specific allowance recorded, Related Allowance | 147 | |
With a specific allowance recorded, Average Recorded Investment | 1,362 | |
With a specific allowance recorded, Interest Income Recognized | 38 | |
Totals: | ||
Total Recorded Investment | 1,362 | |
Total Unpaid Principal Balance | 1,362 | |
Total Related Allowance | 147 | |
Total Average Recorded Investment | 1,362 | |
Total Interest Income Recognized | 38 | |
Commercial real estate - nonowner occupied [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 979 | |
With no related allowance recorded, Unpaid Principal Balance | 979 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 259 | 1,051 |
With no related allowance recorded, Interest Income Recognized | 5 | 14 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | ||
With a specific allowance recorded, Unpaid Principal Balance | ||
With a specific allowance recorded, Related Allowance | ||
With a specific allowance recorded, Average Recorded Investment | ||
With a specific allowance recorded, Interest Income Recognized | ||
Totals: | ||
Total Recorded Investment | 979 | |
Total Unpaid Principal Balance | 979 | |
Total Related Allowance | ||
Total Average Recorded Investment | 259 | 1,051 |
Total Interest Income Recognized | 5 | 14 |
Agricultural [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | ||
With no related allowance recorded, Unpaid Principal Balance | ||
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | ||
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | ||
With a specific allowance recorded, Unpaid Principal Balance | ||
With a specific allowance recorded, Related Allowance | ||
With a specific allowance recorded, Average Recorded Investment | ||
With a specific allowance recorded, Interest Income Recognized | ||
Totals: | ||
Total Recorded Investment | ||
Total Unpaid Principal Balance | ||
Total Related Allowance | ||
Total Average Recorded Investment | ||
Total Interest Income Recognized | ||
Residential real estate [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 1,228 | |
With no related allowance recorded, Unpaid Principal Balance | 1,294 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,793 | 1,634 |
With no related allowance recorded, Interest Income Recognized | 24 | 70 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 2,011 | |
With a specific allowance recorded, Unpaid Principal Balance | 2,048 | |
With a specific allowance recorded, Related Allowance | 167 | |
With a specific allowance recorded, Average Recorded Investment | 533 | 2,056 |
With a specific allowance recorded, Interest Income Recognized | 6 | 10 |
Totals: | ||
Total Recorded Investment | 3,239 | |
Total Unpaid Principal Balance | 3,342 | |
Total Related Allowance | 167 | |
Total Average Recorded Investment | 2,326 | 3,690 |
Total Interest Income Recognized | 30 | 80 |
HELOC [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 57 | |
With no related allowance recorded, Unpaid Principal Balance | 57 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 17 | 64 |
With no related allowance recorded, Interest Income Recognized | 3 | |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 70 | |
With a specific allowance recorded, Unpaid Principal Balance | 70 | |
With a specific allowance recorded, Related Allowance | 3 | |
With a specific allowance recorded, Average Recorded Investment | 84 | |
With a specific allowance recorded, Interest Income Recognized | 4 | |
Totals: | ||
Total Recorded Investment | 127 | |
Total Unpaid Principal Balance | 127 | |
Total Related Allowance | 3 | |
Total Average Recorded Investment | 17 | 148 |
Total Interest Income Recognized | 7 | |
Consumer [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 9 | |
With no related allowance recorded, Unpaid Principal Balance | 9 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 18 | 13 |
With no related allowance recorded, Interest Income Recognized | 1 | |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | ||
With a specific allowance recorded, Unpaid Principal Balance | ||
With a specific allowance recorded, Related Allowance | ||
With a specific allowance recorded, Average Recorded Investment | ||
With a specific allowance recorded, Interest Income Recognized | ||
Totals: | ||
Total Recorded Investment | 9 | |
Total Unpaid Principal Balance | 9 | |
Total Related Allowance | ||
Total Average Recorded Investment | 18 | 13 |
Total Interest Income Recognized | 1 | |
Commercial & industrial [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 722 | |
With no related allowance recorded, Unpaid Principal Balance | 1,092 | |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,202 | 1,860 |
With no related allowance recorded, Interest Income Recognized | 22 | 10 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 192 | |
With a specific allowance recorded, Unpaid Principal Balance | 249 | |
With a specific allowance recorded, Related Allowance | 1 | |
With a specific allowance recorded, Average Recorded Investment | 249 | |
With a specific allowance recorded, Interest Income Recognized | 49 | |
Totals: | ||
Total Recorded Investment | 1,117 | |
Total Unpaid Principal Balance | 1,970 | |
Total Related Allowance | 1 | |
Total Average Recorded Investment | 1,202 | 2,135 |
Total Interest Income Recognized | $ 22 | $ 34 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details) - Schedule of TDR activity $ in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | 3 |
Pre-Modification Recorded Balance | $ 763 |
Post Modification Recorded Balance | 763 |
Interest Only | 150 |
Term | 613 |
Combination | |
Total modifications | $ 763 |
Commercial and Industrial Sector [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | 3 |
Pre-Modification Recorded Balance | $ 763 |
Post Modification Recorded Balance | 763 |
Interest Only | 150 |
Term | 613 |
Combination | |
Total modifications | $ 763 |
Accounting for Certain Loans _3
Accounting for Certain Loans Acquired in a Transfer (Details) $ in Millions | Sep. 30, 2020USD ($) |
Accounting For Certain Loans Acquired In A Transfer [Abstract] | |
Amount of accretable yield or income expected to be collected | $ 0.4 |
Accounting for Certain Loans _4
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet $ in Thousands | Sep. 30, 2020USD ($) |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | $ 15,660 |
Commercial & industrial [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | 1,716 |
Commercial real estate - owner occupied [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | |
Commercial real estate - nonowner occupied [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | 518 |
Agricultural [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | 9,968 |
Residential real estate [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | 3,277 |
Home equity line of credit (HELOC) [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | |
Consumer [Member] | |
Accounting for Certain Loans Acquired in a Transfer (Details) - Schedule of acquired loans included in the balance sheet [Line Items] | |
Total loans | $ 181 |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Millions | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Mortgage Servicing Rights [Abstract] | |||
Unpaid principal balance of mortgage loans | $ 1,300 | $ 1,200 | |
Contractually specified servicing fees | $ 2.4 | $ 2.1 |
Mortgage Servicing Rights (De_2
Mortgage Servicing Rights (Details) - Schedule of mortgage servicing rights capitalized and related amortization - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of mortgage servicing rights capitalized and related amortization [Abstract] | ||
Carrying amount, January 1 | $ 11,017 | $ 11,365 |
Mortgage servicing rights capitalized during the year | 3,971 | 1,895 |
Mortgage servicing rights amortization during the year | (3,479) | (1,415) |
Net change in valuation allowance | (2,974) | (1,398) |
Carrying amount, September 30 | 8,535 | 10,447 |
Valuation allowance: | ||
January 1 | 1,306 | 212 |
Increase | 2,974 | 1,398 |
September 30 | $ 4,280 | $ 1,610 |
Goodwill (Details)
Goodwill (Details) - USD ($) $ in Thousands | Jun. 05, 2020 | Mar. 15, 2019 | Sep. 30, 2020 | Sep. 30, 2019 |
Goodwill (Details) [Line Items] | ||||
Acquisition resulted in goodwill | $ 4,325 | $ 1,439 | ||
SBFG Title, LLC [Member] | ||||
Goodwill (Details) [Line Items] | ||||
Acquisition resulted in goodwill | $ 1,400 | |||
Edon State Bank Company [Member] | ||||
Goodwill (Details) [Line Items] | ||||
Acquisition resulted in goodwill | $ 4,300 |
Goodwill (Details) - Schedule o
Goodwill (Details) - Schedule of activity in goodwill - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Schedule of activity in goodwill [Abstract] | ||
Beginning balance | $ 17,792 | $ 16,353 |
Ending balance | 22,091 | 17,792 |
Acquired goodwill | 4,325 | $ 1,439 |
Measurement period adjustments | $ (26) |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - Schedule of notional amount and fair value of interest rate swaps - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional Amount | $ 151,304 | $ 99,173 |
Asset Derivatives, Fair Value | 9,459 | 2,901 |
Liability Derivatives ,Notional Amount | 160,009 | 104,826 |
Liability Derivatives, Fair Value | (9,366) | (2,878) |
Interest rate swaps associated with loans [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional Amount | 88,509 | 82,826 |
Asset Derivatives, Fair Value | 9,169 | 2,846 |
Liability Derivatives ,Notional Amount | 88,509 | 82,826 |
Liability Derivatives, Fair Value | (9,169) | (2,846) |
IRLCs [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Asset Derivatives, Notional Amount | 62,795 | 16,347 |
Asset Derivatives, Fair Value | 290 | 55 |
Forward Contracts [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Liability Derivatives ,Notional Amount | 71,500 | 22,000 |
Liability Derivatives, Fair Value | $ (197) | $ (32) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details) - Schedule of consolidated statements of income for non-hedging derivative financial instruments - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Interest rate swap contracts [Member] | ||
Derivative Financial Instruments (Details) - Schedule of consolidated statements of income for non-hedging derivative financial instruments [Line Items] | ||
Statement of income classification | Other income | |
Amount of gain (loss) | $ 282 | $ 394 |
Interest rate swap contracts [Member] | ||
Derivative Financial Instruments (Details) - Schedule of consolidated statements of income for non-hedging derivative financial instruments [Line Items] | ||
Statement of income classification | Other expense | |
Amount of gain (loss) | ||
IRLCs [Member] | ||
Derivative Financial Instruments (Details) - Schedule of consolidated statements of income for non-hedging derivative financial instruments [Line Items] | ||
Statement of income classification | Gain on sale of mortgage loans & OMSR | |
Amount of gain (loss) | $ 235 | (215) |
Forward Contracts [Member] | ||
Derivative Financial Instruments (Details) - Schedule of consolidated statements of income for non-hedging derivative financial instruments [Line Items] | ||
Statement of income classification | Gain on sale of mortgage loans & OMSR | |
Amount of gain (loss) | $ (165) | $ 199 |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details) - Schedule of financial assets and derivative assets - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Offsetting Assets [Line Items] | ||
Gross amounts of recognized assets | $ 9,169 | $ 2,901 |
Gross amounts offset in the consolidated balance sheet | 55 | |
Net amounts of assets presented in the consolidated balance sheet | 9,169 | 2,846 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | ||
Gross amounts not offset in the consolidated balance sheet, Cash collateral received | ||
Gross amounts not offset in the consolidated balance sheet, Net amount | $ 9,169 | $ 2,846 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details) - Schedule of financial liabilities and derivative liabilities - Interest Rate Swaps [Member] - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized liabilities | $ 9,169 | $ 2,901 |
Gross amounts offset in the consolidated balance sheet | 55 | |
Net amounts of liabilities presented in the consolidated balance sheet | 9,169 | 2,846 |
Gross amounts not offset in the consolidated balance sheet, Financial instruments | 1,155 | |
Gross amounts not offset in the consolidated balance sheet, Cash collateral pledged | 8,241 | 3,242 |
Gross amounts not offset in the consolidated balance sheet, Net amount | $ (227) | $ (396) |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Short-Term Borrowings (Details) [Line Items] | ||
Federal funds lines | $ 41 | $ 41 |
Retail Repurchase Agreements [Member] | ||
Short-Term Borrowings (Details) [Line Items] | ||
Mortgage-backed securities maturity, basis of allocation description | These securities have various maturity dates from 2022 through 2044. | |
Secured by agency securities with corresponding liabilities | $ 10.8 | |
Secured by mortgage-backed securities with corresponding liabilities | $ 14.1 | |
Short-term borrowings mature term, description | The repurchase agreements mature within one month. |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Schedule of short-term borrowings - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Schedule of short-term borrowings [Abstract] | ||
Securities Sold Under Repurchase Agreements | $ 20,710 | $ 12,945 |
Totals | $ 20,710 | $ 12,945 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Details) $ in Millions | Sep. 30, 2020USD ($) |
Federal Home Loan Bank Advances (Details) [Line Items] | |
Secured by mortgage loans (in Dollars) | $ 150.1 |
Minimum [Member] | |
Federal Home Loan Bank Advances (Details) [Line Items] | |
Interest rate | 2.77% |
Maximum [Member] | |
Federal Home Loan Bank Advances (Details) [Line Items] | |
Interest rate | 2.93% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances (Details) - Schedule of aggregate annual maturities of federal home loan bank advances - Federal Home Loan Bank Advances [Member] $ in Thousands | Sep. 30, 2020USD ($) |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | |
2021 | $ 2,500 |
2022 | 3,000 |
2023 | 2,500 |
Total | $ 8,000 |
Trust Preferred Securities (Det
Trust Preferred Securities (Details) - USD ($) $ in Millions | 9 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | |
Trust Preferred Securities [Abstract] | ||
Trust preferred securities, Description | On September 15, 2005, RST II, a wholly-owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $1,000 per security. The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital Securities. Distributions on the Capital Securities are payable quarterly at a variable rate that is based upon the 3-month LIBOR plus 1.80 percent and are included in interest expense in the consolidated financial statements. These securities may be included in Tier 1 capital and may be prepaid at any time without penalty (with certain limitations applicable) under current regulatory guidelines and interpretations | |
Balance of capital securities | $ 10.3 | $ 10.3 |
Fair Value of Assets and Liab_3
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
U.S. Treasury and Government Agencies [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | $ 6,867 | $ 12,202 |
Mortgage-backed securities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 109,193 | 78,182 |
State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 11,755 | |
Other corporate securities [ Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 2,500 | |
Interest rate contracts - assets [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 9,169 | 2,846 |
Interest rate contracts - liabilities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (9,169) | (2,846) |
Forward contracts [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (197) | (32) |
IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 290 | 55 |
State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 10,564 | |
Fair Value, Inputs, Level 1 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage-backed securities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | Other corporate securities [ Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | Interest rate contracts - assets [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | Interest rate contracts - liabilities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | Forward contracts [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (197) | (32) |
Fair Value, Inputs, Level 1 [Member] | IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 1 [Member] | State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 2 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 6,867 | 12,202 |
Fair Value, Inputs, Level 2 [Member] | Mortgage-backed securities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 109,193 | 78,182 |
Fair Value, Inputs, Level 2 [Member] | State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 11,755 | |
Fair Value, Inputs, Level 2 [Member] | Other corporate securities [ Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 2,500 | |
Fair Value, Inputs, Level 2 [Member] | Interest rate contracts - assets [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 9,169 | 2,846 |
Fair Value, Inputs, Level 2 [Member] | Interest rate contracts - liabilities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (9,169) | (2,846) |
Fair Value, Inputs, Level 2 [Member] | Forward contracts [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 2 [Member] | IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 2 [Member] | State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 10,564 | |
Fair Value, Inputs, Level 3 [Member] | U.S. Treasury and Government Agencies [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | Mortgage-backed securities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | Other corporate securities [ Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | Interest rate contracts - assets [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | Interest rate contracts - liabilities [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | Forward contracts [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Fair Value, Inputs, Level 3 [Member] | IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | $ 290 | 55 |
Fair Value, Inputs, Level 3 [Member] | State and political subdivisions [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring |
Fair Value of Assets and Liab_4
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Impaired Loans [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 3,604 | $ 2,527 |
Mortgage Servicing Rights [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 8,535 | 5,084 |
IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 290 | 55 |
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 1 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 1 [Member] | IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 2 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 2 [Member] | IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 3,604 | 2,527 |
Fair Value, Inputs, Level 3 [Member] | Mortgage Servicing Rights [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 8,535 | 5,084 |
Fair Value, Inputs, Level 3 [Member] | IRLCs [Member] | ||
Fair Value of Assets and Liabilities (Details) - Schedule of fair value measurements of assets measured at fair value on a nonrecurring basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 290 | $ 55 |
Fair Value of Assets and Liab_5
Fair Value of Assets and Liabilities (Details) - Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Collateral Dependent Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 3,604 | $ 2,527 |
Valuation technique | Market comparable properties | Market comparable properties |
Unobservable inputs | Comparability adjustments (%) | Comparability adjustments (%) |
Range (weighted-average) | 0 - 30% (21%) | 2 - 62% (28%) |
Mortgage Servicing Rights [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 8,535 | $ 5,084 |
Valuation technique | Discounted cash flow | Discounted cash flow |
Unobservable inputs | Discount Rate | Discount Rate |
Range (weighted-average) | 8.44% | 9.36% |
Mortgage Servicing Rights [Member] | Constant Prepayment Rate [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | Constant prepayment rate | Constant prepayment rate |
Range (weighted-average) | 18.42% | 10.19% |
IRLCs [Member] | P and I Earnings Credit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 290 | $ 55 |
Valuation technique | Discounted cash flow | Discounted cash flow |
Unobservable inputs | P&I earnings credit | P&I earnings credit |
Range (weighted-average) | 0.15% | 1.78% |
IRLCs [Member] | T and I Earnings Credit [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | T&I earnings credit | T&I earnings credit |
Range (weighted-average) | 0.22% | 1.93% |
IRLCs [Member] | Inflation for cost of servicing [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Unobservable inputs | Inflation for cost of servicing | Inflation for cost of servicing |
Range (weighted-average) | 1.50% | 1.50% |
Fair Value of Assets and Liab_6
Fair Value of Assets and Liabilities (Details) - Schedule of estimated fair values of company's financial instruments - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Cash and due from banks | $ 94,641 | $ 27,064 |
Interest bearing time deposits | 8,956 | |
Loans held for sale | 13,943 | 7,258 |
Loans, net of allowance for loan losses | 874,057 | 816,755 |
Federal Reserve and FHLB Bank stock, at cost | 5,303 | 4,648 |
Interest receivable | 4,159 | 3,106 |
Financial liabilities | ||
Deposits | 1,014,015 | 840,219 |
Repurchase agreements | 12,945 | |
Short term borrowings | 20,710 | 12,945 |
FHLB advances | 8,000 | 16,000 |
Trust preferred securities | 10,310 | 10,310 |
Interest payable | 946 | 1,191 |
Fair value [Member] | ||
Financial assets | ||
Cash and due from banks | 94,641 | 27,064 |
Interest bearing time deposits | 8,956 | |
Loans held for sale | 14,507 | 7,419 |
Loans, net of allowance for loan losses | 866,131 | 804,808 |
Federal Reserve and FHLB Bank stock, at cost | 5,303 | 4,648 |
Interest receivable | 4,159 | 3,106 |
Financial liabilities | ||
Deposits | 1,016,552 | 840,272 |
Repurchase agreements | 12,945 | |
Short term borrowings | 20,710 | |
FHLB advances | 8,316 | 16,149 |
Trust preferred securities | 8,261 | 9,201 |
Interest payable | 946 | 1,191 |
Level 1 [Member] | ||
Financial assets | ||
Cash and due from banks | 94,641 | 27,064 |
Interest bearing time deposits | 8,956 | |
Loans held for sale | ||
Loans, net of allowance for loan losses | ||
Federal Reserve and FHLB Bank stock, at cost | ||
Interest receivable | ||
Financial liabilities | ||
Deposits | 763,587 | 582,466 |
Repurchase agreements | ||
Short term borrowings | ||
FHLB advances | ||
Trust preferred securities | ||
Interest payable | ||
Level 2 [Member] | ||
Financial assets | ||
Cash and due from banks | ||
Interest bearing time deposits | ||
Loans held for sale | 14,507 | 7,419 |
Loans, net of allowance for loan losses | ||
Federal Reserve and FHLB Bank stock, at cost | 5,303 | 4,648 |
Interest receivable | 4,159 | 3,106 |
Financial liabilities | ||
Deposits | 252,965 | 257,806 |
Repurchase agreements | 12,945 | |
Short term borrowings | 20,710 | |
FHLB advances | 8,316 | 16,149 |
Trust preferred securities | 8,261 | 9,201 |
Interest payable | 946 | 1,191 |
Level 3 [Member] | ||
Financial assets | ||
Cash and due from banks | ||
Interest bearing time deposits | ||
Loans held for sale | ||
Loans, net of allowance for loan losses | 866,131 | 804,808 |
Federal Reserve and FHLB Bank stock, at cost | ||
Interest receivable | ||
Financial liabilities | ||
Deposits | ||
Repurchase agreements | ||
Short term borrowings | ||
FHLB advances | ||
Trust preferred securities | ||
Interest payable |
Share Based Compensation (Detai
Share Based Compensation (Details) - USD ($) $ in Thousands | 1 Months Ended | 9 Months Ended |
Feb. 17, 2020 | Sep. 30, 2020 | |
Share Based Compensation (Details) [Line Items] | ||
Description of stock option awards | Stock option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on 5 years of continuous service and have 10-year contractual terms. | |
Restricted stock awards vesting period, description | These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives. | |
Number of restricted stock issued and approved | 16,442 | |
2017 Plan [Member] | ||
Share Based Compensation (Details) [Line Items] | ||
Common shares available for grants or awards | 500,000 | |
Shares had been granted | 56,324 | |
2008 Plan [Member] | ||
Share Based Compensation (Details) [Line Items] | ||
SAR and common restricted stock, shares | 250,000 | |
Shares expiration date | Feb. 17, 2020 | |
Option shares exercised | 26,950 | |
Total intrinsic value (in Dollars) | $ 300 | |
Cash received from exercised options (in Dollars) | 200 | |
Unexercised option shares expired | 1,300 | |
Long Term Incentive Plan [Member] | ||
Share Based Compensation (Details) [Line Items] | ||
Compensation cost charged against income (in Dollars) | 300 | |
Total income tax benefit recognized in income statement for share-based compensation arrangements (in Dollars) | 70 | |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan (in Dollars) | $ 470 | |
Weighted-average period | 2 years 109 days |
Share Based Compensation (Det_2
Share Based Compensation (Details) - Schedule of stock option activity under the Company's plans shares in Thousands | 9 Months Ended |
Sep. 30, 2020USD ($)$ / sharesshares | |
Shares | |
Share Based Compensation (Details) - Schedule of stock option activity under the Company's plans [Line Items] | |
Outstanding, December 31, 2019 | shares | 28,250 |
Granted | shares | |
Exercised | shares | (26,950) |
Forfeited | shares | |
Expired | shares | (1,300) |
Outstanding, September 30, 2020 | shares | |
Exercisable, September 30, 2020 | shares | |
Weighted Average Exercise Price | |
Share Based Compensation (Details) - Schedule of stock option activity under the Company's plans [Line Items] | |
Outstanding, December 31, 2019 | $ / shares | $ 6.98 |
Granted | $ / shares | |
Exercised | $ / shares | 6.98 |
Forfeited | $ / shares | |
Expired | $ / shares | 6.98 |
Outstanding, September 30, 2020 | $ / shares | |
Exercisable, September 30, 2020 | $ / shares | |
Weighted Average Remaining Term | |
Share Based Compensation (Details) - Schedule of stock option activity under the Company's plans [Line Items] | |
Outstanding, September 30, 2020 | |
Exercisable, September 30, 2020 | |
Aggregate Intrinsic Value | |
Share Based Compensation (Details) - Schedule of stock option activity under the Company's plans [Line Items] | |
Outstanding, September 30, 2020 | $ | |
Exercisable, September 30, 2020 | $ |
Share Based Compensation (Det_3
Share Based Compensation (Details) - Schedule of restricted stock activity under the Company's plans shares in Thousands | 9 Months Ended |
Sep. 30, 2020$ / sharesshares | |
Shares | |
Share Based Compensation (Details) - Schedule of restricted stock activity under the Company's plans [Line Items] | |
Nonvested, December 31, 2019 | shares | 43,741 |
Granted | shares | 16,442 |
Vested | shares | (22,426) |
Forfeited | shares | (1,839) |
Nonvested, September 30, 2020 | shares | 35,918 |
Weighted-Average Value per Share | |
Share Based Compensation (Details) - Schedule of restricted stock activity under the Company's plans [Line Items] | |
Nonvested, December 31, 2019 | $ / shares | $ 17.41 |
Granted | $ / shares | 19.57 |
Vested | $ / shares | 17.17 |
Forfeited | $ / shares | 17.61 |
Nonvested, September 30, 2020 | $ / shares | $ 18.53 |