Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 08, 2020 | |
Document and Entity Information | ||
Entity Registrant Name | FIRST COMMUNITY CORP /SC/ | |
Entity Central Index Key | 0000932781 | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Current Fiscal Year End Date | --12-31 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 7,462,247 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Shell Company | false | |
Entity Emerging Growth Company | false | |
Entity Small Business | false | |
Entity File Number | 000-28344 | |
City Area Code | 803 | |
Local Phone Number | 951-2265 | |
Entity Address, Address Line One | 5455 Sunset Boulevard, | |
Entity Address, City or Town | Lexington | |
Entity Address, Postal Zip Code | 29072 | |
Entity Address, State or Province | SC | |
Entity Interactive Data Current | Yes | |
Entity Incorporation, State or Country Code | SC | |
Document Quarterly Report | true |
Consolidated Balance Sheets (Un
Consolidated Balance Sheets (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 23,739 | $ 14,951 |
Interest-bearing bank balances | 25,637 | 32,741 |
Investment securities - available-for-sale | 288,881 | 286,800 |
Other investments, at cost | 2,062 | 1,992 |
Loans held for sale | 11,937 | 11,155 |
Loans | 749,529 | 737,028 |
Less, allowance for loan losses | 7,694 | 6,627 |
Net loans | 741,835 | 730,401 |
Property, furniture and equipment - net | 34,819 | 35,008 |
Right-of-use asset | 3,170 | 3,215 |
Premises held-for-sale | 591 | 591 |
Bank owned life insurance | 28,223 | 28,041 |
Other real estate owned | 1,481 | 1,410 |
Intangible assets | 1,378 | 1,483 |
Goodwill | 14,637 | 14,637 |
Other assets | 6,917 | 7,854 |
Total assets | 1,185,307 | 1,170,279 |
Deposits: | ||
Non-interest bearing | 291,669 | 289,829 |
Interest bearing | 694,976 | 698,372 |
Total deposits | 986,645 | 988,201 |
Securities sold under agreements to repurchase | 46,041 | 33,296 |
Federal Home Loan Bank advances | 211 | |
Junior subordinated debt | 14,964 | 14,964 |
Lease liability | 3,229 | 3,266 |
Other liabilities | 9,814 | 10,147 |
Total liabilities | 1,060,693 | 1,050,085 |
SHAREHOLDERS' EQUITY | ||
Preferred stock, par value $1.00 per share; 10,000,000 shares authorized; 0 issued and outstanding | ||
Common stock, par value $1.00 per share; 20,000,000 shares authorized; issued and outstanding 7,462,247 at March 31, 2020 7,440,026 at December 31, 2019 | 7,462 | 7,440 |
Nonvested restricted stock | (465) | (151) |
Additional paid in capital | 90,916 | 90,488 |
Retained earnings (deficit) | 20,830 | 19,927 |
Accumulated other comprehensive income (loss) | 5,871 | 2,490 |
Total shareholders' equity | 124,614 | 120,194 |
Total liabilities and shareholders' equity | $ 1,185,307 | $ 1,170,279 |
Consolidated Balance Sheets (_2
Consolidated Balance Sheets (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Loss on Limited Partnership Interest | ||
Preferred stock, par value (in dollars per share) | $ 1 | $ 1 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,462,247 | 7,440,026 |
Common stock, shares outstanding | 7,462,247 | 7,440,026 |
Consolidated Statements of Inco
Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | ||
Interest income: | |||
Loans, including fees | $ 8,827 | $ 8,609 | |
Investment securities - taxable | 1,437 | 1,217 | |
Investment securities - non taxable | 289 | 439 | |
Other short term investments | 152 | 103 | |
Other | 5 | 6 | |
Total interest income | 10,710 | 10,374 | |
Interest expense: | |||
Deposits | 1,019 | 1,001 | |
Securities sold under agreement to repurchase | 104 | 92 | |
Other borrowed money | 170 | 261 | |
Total interest expense | 1,293 | 1,354 | |
Net interest income | 9,417 | 9,020 | |
Provision for loan losses | 1,075 | 105 | |
Net interest income after provision for loan losses | 8,342 | 8,915 | |
Non-interest income: | |||
Deposit service charges | 399 | 411 | |
Mortgage banking income | [1] | 982 | 844 |
Investment advisory fees and non-deposit commissions | [1] | 634 | 438 |
Loss on sale of securities | [1] | (29) | |
Gain on sale of other assets | 6 | ||
Other | [2] | 907 | 845 |
Total non-interest income | 2,928 | 2,509 | |
Non-interest expense: | |||
Salaries and employee benefits | 5,653 | 5,170 | |
Occupancy | 643 | 655 | |
Equipment | 318 | 386 | |
Marketing and public relations | 354 | 175 | |
FDIC insurance assessments | 42 | 74 | |
Other real estate expense | 35 | 29 | |
Amortization of intangibles | 105 | 132 | |
Other | 1,888 | 1,702 | |
Total non-interest expense | 9,038 | 8,323 | |
Net income before tax | 2,232 | 3,101 | |
Income tax expense | 438 | 606 | |
Net income | $ 1,794 | $ 2,495 | |
Basic earnings per common share (in dollars per share) | $ 0.24 | $ 0.33 | |
Diluted earnings per common share (in dollars per share) | $ 0.24 | $ 0.32 | |
[1] | Not within the scope of ASC 606 | ||
[2] | Includes Check Card Fee income discussed above. No other items are within the scope of ASC 606 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Comprehensive Income | ||
Net income | $ 1,794 | $ 2,495 |
Other comprehensive income (loss): | ||
Unrealized gain during the period on available-for-sale securities, net of tax expense of $899 and $609, respectively | 3,381 | 2,282 |
Reclassification adjustment for loss on available-for-sale securities included in net income, net of tax benefit of $0 and $6, respectively | 23 | |
Other comprehensive income (loss) | 3,381 | 2,305 |
Comprehensive income | $ 5,175 | $ 4,800 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements Of Comprehensive Income | ||
Unrealized (loss) gain during the period on available-for-sale securities, taxes | $ 899 | $ 609 |
Reclassification adjustment for loss (gain) included in net income, taxes | $ 0 | $ 6 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Common Stock Warrant | Additional Paid-In Capital [Member] | Nonvested Restricted Stock | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2018 | $ 7,639 | $ 31 | $ 95,048 | $ (149) | $ 12,262 | $ (2,334) | $ 112,497 |
Beginning Balance, in shares at Dec. 31, 2018 | 7,639,000 | ||||||
Net income | 2,495 | 2,495 | |||||
Other comprehensive income net of tax | 2,305 | 2,305 | |||||
Issuance of restricted stock | $ 8 | 162 | (170) | (156) | |||
Issuance of restricted stock, in shares | 8,000 | ||||||
Amortization of compensation on restricted stock | 33 | 33 | |||||
Shares retired | $ (8) | (148) | (156) | ||||
Shares retired, Shares | (8,000) | ||||||
Exercise of stock warrants | $ 21 | (14) | (7) | ||||
Exercise of stock warrants, in shares | 21,000 | ||||||
Dividends: Common | (840) | (840) | |||||
Dividend reinvestment plan | $ 5 | 95 | 100 | ||||
Dividend reinvestment plan, in shares | 5,000 | ||||||
Ending Balance at Mar. 31, 2019 | $ 7,665 | 17 | 95,150 | (286) | 13,917 | (29) | 116,434 |
Ending Balance, in shares at Mar. 31, 2019 | 7,665,000 | ||||||
Beginning Balance at Dec. 31, 2019 | $ 7,440 | 90,488 | (151) | 19,927 | 2,490 | 120,194 | |
Beginning Balance, in shares at Dec. 31, 2019 | 7,440,000 | ||||||
Net income | 1,794 | 1,794 | |||||
Other comprehensive income net of tax | 3,381 | 3,381 | |||||
Issuance of common stock | 4 | 4 | |||||
Issuance of restricted stock | $ 18 | 348 | (366) | (15) | |||
Issuance of restricted stock, in shares | 18,000 | ||||||
Amortization of compensation on restricted stock | 52 | 52 | |||||
Shares retired | $ (1) | (14) | (15) | ||||
Shares retired, Shares | (1,000) | ||||||
Dividends: Common | (891) | (891) | |||||
Dividend reinvestment plan | $ 5 | 90 | 95 | ||||
Dividend reinvestment plan, in shares | 5,000 | ||||||
Ending Balance at Mar. 31, 2020 | $ 7,462 | $ 90,916 | $ (465) | $ 20,830 | $ 5,871 | $ 124,614 | |
Ending Balance, in shares at Mar. 31, 2020 | 7,462,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | ||
Cash flows from operating activities: | ||||
Net income | $ 1,794 | $ 2,495 | ||
Adjustments to reconcile net income to net cash provided in operating activities: | ||||
Depreciation | 403 | 393 | ||
Net premium amortization | 521 | 539 | ||
Provision for loan losses | 1,075 | 105 | $ 139 | |
Originations of HFS loans | (34,427) | (25,345) | ||
Sales of HFS loans | 33,645 | 21,269 | ||
Amortization of intangibles | 105 | 132 | ||
Accretion on acquired loans | (106) | (143) | ||
Loss on sale of securities | [1] | 29 | ||
Increase in other assets | (80) | (3,273) | ||
(Decrease) Increase in other liabilities | (363) | 1,634 | ||
Net cash (used) provided from operating activities | 2,567 | (2,165) | ||
Cash flows from investing activities: | ||||
Purchase of investment securities available-for-sale | (11,882) | (5,419) | ||
Purchase of other investment securities | (70) | (207) | ||
Maturity/call of investment securities available-for-sale | 13,606 | 7,969 | ||
Proceeds from sale of securities available-for-sale | 7,137 | |||
(Increase) decrease in loans | (12,495) | 152 | ||
Proceeds from sale of fixed assets | 301 | |||
Purchase of property and equipment | (214) | (1,178) | ||
Net cash (used) provided in investing activities | (11,055) | 8,755 | ||
Cash flows from financing activities: | ||||
Decrease in deposit accounts | (1,555) | (5,735) | ||
Increase in securities sold under agreements to repurchase | 12,745 | 3,985 | ||
Advances from the Federal Home Loan Bank | 10,001 | 56,000 | ||
Repayment of advances from Federal Home Loan Bank | (10,212) | (54,005) | ||
Shares retired | (15) | (156) | ||
Dividends paid on Common Stock | (891) | (840) | ||
Proceeds from issuance of Common Stock | 4 | |||
Dividend reinvestment plan | 95 | 100 | ||
Net cash provided (used) from financing activities | 10,172 | (651) | ||
Net increase in cash and cash equivalents | 1,684 | 5,939 | ||
Cash and cash equivalents at beginning of period | 47,692 | 32,268 | 32,268 | |
Cash and cash equivalents at end of period | 49,376 | 38,207 | $ 47,692 | |
Cash paid during the period for: | ||||
Interest | 1,462 | 1,293 | ||
Income taxes | ||||
Non-cash investing and financing activities: | ||||
Unrealized (loss) gain on securities available-for-sale, net of tax | 5,871 | 2,917 | ||
Recognition of operating lease right of use asset | 2,846 | |||
Recognition of operating lease liability | 2,849 | |||
Transfer of investment securities held-to-maturity to available-for-sale | 16,144 | |||
Transfer of loans to foreclosed property | $ 78 | |||
[1] | Not within the scope of ASC 606 |
NATURE OF BUSINESS AND BASIS OF
NATURE OF BUSINESS AND BASIS OF PRESENTATION | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF BUSINESS AND BASIS OF PRESENTATION | Note 1—Nature of Business and Basis of Presentation Basis of Presentation In the opinion of management, the accompanying unaudited consolidated balance sheets, and the consolidated statements of income, comprehensive income, changes in shareholders’ equity, and the cash flows of First Community Corporation (the “Company”) and its wholly owned subsidiary, First Community Bank (the “Bank”), present fairly in all material respects the Company’s financial position at March 31, 2020 and December 31, 2019, and the Company’s results of operations and cash flows for the three months ended March 31, 2020 and 2019. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results that may be expected for the year ending December 31, 2020. In the opinion of management, all adjustments necessary to fairly present the consolidated financial position and consolidated results of operations have been made. All such adjustments are of a normal, recurring nature. All significant intercompany accounts and transactions have been eliminated in consolidation. The consolidated financial statements and notes thereto are presented in accordance with the instructions for Form 10-Q. The information included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 should be referred to in connection with these unaudited interim financial statements. Risk and Uncertainties In December 2019, a novel strain of coronavirus (COVID-19) was reported to have surfaced in China, and has since spread to a number of other countries, including the United States. In March 2020, the World Health Organization declared COVID-19 a global pandemic and the United States declared a National Public Health Emergency. The COVID-19 pandemic has severely restricted the level of economic activity in the Bank’s markets. In response to the COVID-19 pandemic, the governments of the states in which the Bank has retail offices, and of most other states, have taken preventative or protective actions, such as imposing restrictions on travel and business operations, advising or requiring individuals to limit or forego their time outside of their homes, and ordering temporary closures of businesses that have been deemed to be non-essential. While the Bank’s business has been designated an essential business, which allows the Bank to continue to serve its customers, the Bank serves many customers that have been deemed, or who are employed by businesses that have been deemed, to be non-essential. And many of the Bank’s customers that have been categorized to date as essential businesses, or who are employed by businesses that have been categorized as essential businesses, have been adversely affected by the COVID-19 pandemic. The impact of the COVID-19 pandemic is fluid and continues to evolve. The COVID-19 pandemic and its associated impacts on trade (including supply chains and export levels), travel, employee productivity, unemployment, consumer spending, and other economic activities has resulted in less economic activity, lower equity market valuations and significant volatility and disruption in financial markets, and has had an adverse effect on the Company’s business, financial condition and results of operations. The ultimate extent of the impact of the COVID-19 pandemic on the Company’s business, financial condition and results of operations is currently uncertain and will depend on various developments and other factors, including, among others, the duration and scope of the pandemic, as well as governmental, regulatory and private sector responses to the pandemic, and the associated impacts on the economy, financial markets and the Company’s customers, employees and vendors. The Company’s business, financial condition and results of operations generally rely upon the ability of the Bank’s borrowers to repay their loans, the value of collateral underlying the Bank’s secured loans, and demand for loans and other products and services the Bank offers, which are highly dependent on the business environment in the Bank’s primary markets where it operates and in the United States as a whole. On March 3, 2020, the Federal Reserve reduced the target federal funds rate by 50 basis points, followed by an additional reduction of 100 basis points on March 16, 2020. These reductions in interest rates and other effects of the COVID-19 pandemic may adversely affect the Company’s financial condition and results of operations. As a result of the spread of COVID-19, economic uncertainties have arisen which are likely to negatively impact net interest income, provision for loan losses, and noninterest income. Other financial impact could occur though such potential impact is unknown at this time. As of March 31, 2020, the Bank’s capital ratios were in excess of all regulatory requirements. While management believes that the Company has sufficient capital to withstand an extended economic recession brought about by the COVID-19 pandemic, the Bank’s reported and regulatory capital ratios could be adversely impacted by further credit losses. We believe that we have ample liquidity to meet the needs of our customers and to manage through the COVID-19 pandemic through our low cost deposits; our ability to borrow against approved lines of credit (federal funds purchased) from correspondent banks; and our ability to obtain advances secured by certain securities and loans from the Federal Home Loan Bank. Furthermore, we are eligible to participate in the Paycheck Protection Program Liquidity Facility (“PPPLF”) to fund Paycheck Protection Program (PPP) loans if needed. Beginning in early March 2020, the Company proactively reached out to its loan customers and offered deferrals for up to 90 days. As of March 31, 2020, the Company granted 183 deferral requests totaling $118.3 million of the Company’s loan portfolio related to the COVID-19 pandemic. As of May 4, 2020, the Company has granted 383 deferrals totaling approximately $202.4 million of the Company’s loan portfolio. The Company has evaluated its exposure to certain industry segments most impacted by the COVID-19 pandemic as of March 31, 2020: Industry Segments Outstanding % of Loan Ave. Loan Ave. Loan to (Dollars in millions) Loan Balance Portfolio Size Value Hotels $ 26.8 3.6 % $ 1.9 67 % Restaurants $ 17.6 2.4 % $ 0.6 64 % Assisted Living $ 9.2 1.2 % $ 1.8 50 % Retail $ 75.5 10.1 % $ 0.6 62 % |
EARNINGS PER SHARE
EARNINGS PER SHARE | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE | Note 2—Earnings Per Common Share The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: (In thousands except average market price) Three months ended March 31, 2020 2019 Numerator (Net income available to common shareholders) $ 1,794 $ 2,495 Denominator Weighted average common shares outstanding for: Basic shares 7,421 7,634 Dilutive securities: Deferred compensation 38 52 Warrants/Restricted stock -Treasury stock method 9 39 Diluted shares 7,468 7,725 The average market price used in calculating assumed number of shares $ 19.03 $ 19.90 There were no options outstanding as of March 31, 2020 and 2019. In the fourth quarter of 2011, we issued $2.5 million in 8.75% subordinated notes maturing December 16, 2019. On November 15, 2012, the subordinated notes were redeemed in full at par. In connection with the issuance of the subordinated debt, the Company issued warrants for 107,500 shares of common stock at $5.90 per share. There were 36,550 warrants outstanding at March 31, 2019 and these warrants are included in dilutive securities in the table above. All warrants were exercised by their expiration date of December 16, 2019. In 2006, the Company established a Non-Employee Director Deferred Compensation Plan, whereby a director may elect to defer all or any part of annual retainer and monthly meeting fees payable with respect to service on the board of directors or a committee of the board. Units of common stock are credited to the director’s account at the time compensation is earned and are included in dilutive securities in the table above. The non-employee director’s account balance is distributed by issuance of common stock at the time of retirement or resignation from the board of directors. At March 31, 2020 and December 31, 2019, there were 100,215 and 97,104 units in the plan, respectively. The accrued liability at March 31, 2020 and December 31, 2019 amounted to $1.2 million and $1.1 million, respectively, and is included in “Other liabilities” on the balance sheet. |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
INVESTMENT SECURITIES | Note 3—Investment Securities The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2020 US Treasury securities $ 3,498 $ 36 $ — $ 3,534 Government Sponsored Enterprises 987 28 — 1,015 Mortgage-backed securities 176,507 5,818 1,491 180,834 Small Business Administration pools 41,255 597 125 41,727 State and local government 59,187 2,577 8 61,756 Other securities 15 — — 15 $ 281,449 $ 9,056 $ 1,624 $ 288,881 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2019 US Treasury securities $ 7,190 $ 16 $ 3 $ 7,203 Government Sponsored Enterprises 984 17 — 1,001 Mortgage-backed securities 182,736 1,490 640 183,586 Small Business Administration pools 45,301 259 217 45,343 State and local government 47,418 2,371 141 49,648 Other securities 19 — — 19 $ 283,648 $ 4,153 $ 1,001 $ 286,800 During the first quarter of 2019, the Company reclassified the portfolio of securities listed as held-to-maturity to available-for-sale. There were no investment securities listed as held-to-maturity as of March 31, 2020. During the three months ended March 31, 2020 and 2019, the Company received proceeds of $0 and $7.1 million, respectively, from the sale of investment securities available-for-sale. For the three months ended March 31, 2020, there were no gross realized gains from the sale of investment securities available-for-sale and no gross realized losses. For the three months ended March 31, 2019, gross realized gains from the sale of investment securities available-for-sale amounted to $41 thousand and gross realized losses amounted to $70 thousand. At March 31, 2020, other securities available-for-sale included the following at fair value: a mutual fund at $5.0 thousand, and foreign debt of $10.0 thousand. As required by Accounting Standards Update (“ASU”) 2016-01-Financial Instruments-Overall (Subtopic 825-10), the Company measured its equity investments at fair value with changes in the fair value recognized through net income. For the three months ended March 31, 2020 and 2019, a $3.8 thousand loss and a $1.0 thousand gain were recognized on a mutual fund, respectively. At December 31, 2019, corporate and other securities available-for-sale included the following at fair value: a mutual fund at $8.8 thousand and foreign debt of $10.0 thousand. Other investments, at cost, include Federal Home Loan Bank (“FHLB”) stock in the amount of $1.1 million and corporate stock in the amount of $1.0 million at March 31, 2020. The Company held $991.4 thousand of FHLB stock and $1.0 million in corporate stock at December 31, 2019. The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at March 31, 2020 and December 31, 2019. (Dollars in thousands) Less than 12 months 12 months or more Total March 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: Value Loss Value Loss Value Loss Mortgage-backed securities $ 36,949 $ 1,432 $ 4,062 $ 59 $ 41,011 $ 1,491 Small Business Administration pools 3,038 18 8,845 107 11,883 125 State and local government 2,226 8 — — 2,226 8 Total $ 42,213 $ 1,458 $ 12,907 $ 166 $ 55,120 $ 1,624 (Dollars in thousands) Less than 12 months 12 months or more Total December 31, 2019 Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: Value Loss Value Loss Value Loss US Treasury securities $ — $ — $ 1,508 $ 3 $ 1,508 $ 3 Mortgage-backed securities 57,175 485 12,419 155 69,594 640 Small Business Administration pools 7,891 53 13,502 164 21,393 217 State and local government 5,695 141 — — 5,695 141 Total $ 70,761 $ 679 $ 27,429 $ 322 $ 98,190 $ 1,001 Government Sponsored Enterprise, Mortgage-Backed Securities: Non-agency Mortgage Backed Securities: State and Local Governments and Other: The following sets forth the amortized cost and fair value of investment securities at March 31, 2020 by contractual maturity. Expected maturities differ from contractual maturities because borrowers may have the right to call or prepay the obligations with or without prepayment penalties. MBSs are based on average life at estimated prepayment speeds. March 31, 2020 Available-for-sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 7,772 $ 7,842 Due after one year through five years 122,950 125,292 Due after five years through ten years 123,926 128,280 Due after ten years 26,801 27,467 Total $ 281,449 $ 288,881 |
LOANS
LOANS | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
LOANS | Note 4—Loans Loans summarized by category as of March 31, 2020, December 31, 2019 and March 31, 2019 are as follows: March 31, December 31, March 31, (Dollars in thousands) 2020 2019 2019 Commercial, financial and agricultural $ 50,313 $ 51,805 $ 52,289 Real estate: Construction 83,547 73,512 56,234 Mortgage-residential 46,471 45,357 50,732 Mortgage-commercial 530,180 527,447 519,420 Consumer: Home equity 28,641 28,891 30,092 Other 10,377 10,016 9,653 Total $ 749,529 $ 737,028 $ 718,420 The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the three months ended March 31, 2020 and March 31, 2019 and for the year ended December 31, 2019 is as follows: (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial Construction Residential Commercial equity Other Unallocated Total March 31, 2020 Allowance for loan losses: Beginning balance $ 427 $ 111 $ 367 $ 4,602 $ 240 $ 97 $ 783 $ 6,627 Charge-offs — — — — — (23 ) — (23 ) Recoveries — — — 6 1 8 — 15 Provisions 62 37 73 923 36 30 (86 ) 1,075 Ending balance $ 489 $ 148 $ 440 $ 5,531 $ 277 $ 112 $ 697 $ 7,694 Ending balances: Individually evaluated for impairment $ — $ — $ — $ 5 $ — $ — $ — $ 5 Collectively evaluated for impairment 489 148 440 5,526 277 112 697 7,689 March 31, 2020 Loans receivable: Ending balance-total $ 50,313 $ 83,547 $ 46,471 $ 530,180 $ 28,641 $ 10,377 $ — $ 749,529 Ending balances: Individually evaluated for impairment — — 340 2,966 68 — — 3,374 Collectively evaluated for impairment $ 50,313 $ 83,547 $ 46,131 $ 527,214 $ 28,573 $ 10,377 $ — $ 746,155 (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial Construction Residential Commercial equity Other Unallocated Total March 31, 2019 Allowance for loan losses: Beginning balance $ 430 $ 89 $ 431 $ 4,318 $ 261 $ 88 $ 646 $ 6,263 Charge-offs (2 ) — — — (1 ) (30 ) — (33 ) Recoveries — — — 10 — 9 — 19 Provisions (10 ) 7 (19 ) 18 8 22 79 105 Ending balance $ 418 $ 96 $ 412 $ 4,346 $ 268 $ 89 $ 725 $ 6,354 Ending balances: Individually evaluated for impairment $ — $ — $ — $ 14 $ — $ — $ — $ 14 Collectively evaluated for impairment 418 96 412 4,332 268 89 725 6,340 March 31, 2019 Loans receivable: Ending balance-total $ 52,289 $ 56,234 $ 50,732 $ 519,420 $ 30,092 $ 9,653 $ — $ 718,420 Ending balances: Individually evaluated for impairment — — 409 4,162 57 5 — 4,633 Collectively evaluated for impairment $ 52,289 $ 56,234 $ 50,323 $ 515,258 $ 30,035 $ 9,648 $ — $ 713,787 (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial Construction Residential Commercial equity Other Unallocated Total December 31, 2019 Allowance for loan losses: Beginning balance $ 430 $ 89 $ 431 $ 4,318 $ 261 $ 88 $ 646 $ 6,263 Charge-offs (12 ) — (12 ) — (1 ) (120 ) — (145 ) Recoveries 3 — — 307 15 45 — 370 Provisions 6 22 (52 ) (23) (35 ) 84 137 139 Ending balance $ 427 $ 111 $ 367 $ 4,602 $ 240 $ 97 $ 783 $ 6,627 Ending balances: Individually evaluated for impairment $ — $ — $ — $ 6 $ — $ — $ — $ 6 Collectively evaluated for impairment 427 111 367 4,596 240 97 783 6,621 December 31, 2019 Loans receivable: Ending balance-total $ 51,805 $ 73,512 $ 45,357 $ 527,447 $ 28,891 $ 10,016 $ — $ 737,028 Ending balances: Individually evaluated for impairment 400 — 392 3,135 70 — — 3,997 Collectively evaluated for impairment $ 51,405 $ 73,512 $ 44,965 $ 524,312 $ 28,821 $ 10,016 $ — $ 733,031 Related party loans and lines of credit are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. The following table presents related party loan transactions for the three months ended March 31, 2020 and March 31, 2019: (Dollars in thousands) 2020 2019 Beginning Balance December 31, $ 4,109 $ 5,937 New Loans 55 — Less loan repayments 437 85 Ending Balance March 31, $ 3,727 $ 5,852 The following table presents at March 31, 2020 and December 31, 2019 loans individually evaluated and considered impaired under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings (“TDRs”). (Dollars in thousands) March 31, December 31, 2020 2019 Total loans considered impaired $ 3,374 $ 3,997 Loans considered impaired for which there is a related allowance for loan loss: Outstanding loan balance $ 219 $ 256 Related allowance $ 5 $ 6 Loans considered impaired and previously written down to fair value $ 2,172 $ 2,275 Average impaired loans $ 3,437 $ 4,431 Amount of interest earned during period of impairment $ 82 $ 263 The following tables are by loan category and present at March 31, 2020, March 31, 2019 and December 31, 2019, loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing TDRs. (Dollars in thousands) Three months ended Unpaid Average Interest March 31, 2020 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 340 431 — 339 6 Mortgage-commercial 2,747 5,161 — 2,797 72 Consumer: Home Equity 68 72 — 69 1 Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential — — — — — Mortgage-commercial 219 219 5 232 3 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 340 431 — 339 6 Mortgage-commercial 2,966 5,380 5 3,029 75 Consumer: Home Equity 68 72 — 69 1 Other — — — — — $ 3,374 $ 5,883 $ 5 $ 3,437 $ 82 (Dollars in thousands) Three months ended Unpaid Average Interest March 31, 2019 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 409 462 — 413 4 Mortgage-commercial 3,715 6,708 — 4,048 61 Consumer: Home Equity 57 59 — 59 1 Other 5 5 — 5 — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential — — — — — Mortgage-commercial 447 447 14 448 6 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 409 462 — 413 4 Mortgage-commercial 4,162 7,155 14 4,496 67 Consumer: Home Equity 57 59 — 59 1 Other 5 5 — 5 — $ 4,633 $ 7,681 $ 14 $ 4,973 $ 72 (Dollars in thousands) December 31, 2019 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ 400 $ 400 $ — $ 600 $ 49 Real estate: Construction — — — — — Mortgage-residential 392 460 — 439 19 Mortgage-commercial 2,879 5,539 — 2,961 170 Consumer: Home Equity 70 73 — 76 2 Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential — — — — — Mortgage-commercial 256 256 6 355 23 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial 400 400 — 600 49 Real estate: Construction — — — — — Mortgage-residential 392 460 — 439 19 Mortgage-commercial 3,135 5,795 6 3,316 193 Consumer: Home Equity 70 73 — 76 2 Other — — — — — $ 3,997 $ 6,728 $ 6 $ 4,431 $ 263 The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt, including 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 is performed on a monthly basis. The Company uses the following definitions for risk ratings: Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered as pass rated loans. As of March 31, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of March 31, 2020 and December 31, 2019, no loans were classified as doubtful. (Dollars in thousands) March 31, 2020 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 50,202 $ 111 $ — $ — $ 50,313 Real estate: Construction 83,547 — — — 83,547 Mortgage – residential 45,301 285 885 — 46,471 Mortgage – commercial 524,525 2,396 3,259 — 530,180 Consumer: Home Equity 27,192 1,127 322 — 28,641 Other 10,346 31 — — 10,377 Total $ 741,113 $ 3,950 $ 4,466 $ — $ 749,529 (Dollars in thousands) December 31, 2019 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 51,166 $ 239 $ 400 $ — $ 51,805 Real estate: Construction 73,512 — — — 73,512 Mortgage – residential 44,221 509 627 — 45,357 Mortgage – commercial 521,072 2,996 3,379 — 527,447 Consumer: Home Equity 27,450 1,157 284 — 28,891 Other 9,981 35 — — 10,016 Total $ 727,402 $ 4,936 $ 4,690 $ — $ 737,028 At March 31, 2020 and December 31, 2019, non-accrual loans totaled $1.7 million and $2.3 million, respectively. TDRs that are still accruing and included in impaired loans at March 31, 2020 and at December 31, 2019 amounted to $1.6 million and $1.7 million, respectively. Loans greater than 90 days delinquent and still accruing interest were $168.1 thousand and $0.3 thousand at March 31, 2020 and December 31, 2019, respectively. Acquired credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality, found in FASB ASC Topic 310-30, (Receivables—Loans and Debt Securities Acquired with Deteriorated Credit Quality), and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loans. Loans acquired in business combinations with evidence of credit deterioration are considered impaired. Loans acquired through business combinations that do not meet the specific criteria of FASB ASC Topic 310-30, but for which a discount is attributable, at least in part to credit quality, are also accounted for under this guidance. Certain acquired loans, including performing loans and revolving lines of credit (consumer and commercial), are accounted for in accordance with FASB ASC Topic 310-20, where the discount is accreted through earnings based on estimated cash flows over the estimated life of the loan. A summary of changes in the accretable yield for purchased credit-impaired loans for the three months ended March 31, 2020 and March 31, 2019 follows: (Dollars in thousands) Three Months Three Months Accretable yield, beginning of period $ 123 $ 153 Additions — — Accretion (7 ) (8 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — — Other changes, net — — Accretable yield, end of period $ 116 $ 145 At March 31, 2020 and December 31, 2019, the recorded investment in purchased impaired loans was $112 thousand. The unpaid principal balance was $186 thousand and $190 thousand at March 31, 2020 and December 31, 2019, respectively. At March 31, 2020 and December 31, 2019, these loans were all secured by commercial real estate. The following tables are by loan category and present loans past due and on non-accrual status as of March 31, 2020 and December 31, 2019: (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total March 31, 2020 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ 57 $ — $ — $ — $ 57 $ 50,256 $ 50,313 Real estate: Construction — — — — — 83,547 83,547 Mortgage-residential 181 — 168 340 689 45,782 46,471 Mortgage-commercial 294 — — 1,330 1,624 528,556 530,180 Consumer: Home equity — 70 — 68 138 28,503 28,641 Other 66 3 — — 69 10,308 10,377 $ 598 $ 73 $ 168 $ 1,738 $ 2,577 $ 746,952 $ 749,529 (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total December 31, 2019 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ — $ 99 $ — $ 400 $ 499 $ 51,306 $ 51,805 Real estate: Construction 113 — — — 113 73,399 73,512 Mortgage-residential 151 — — 392 543 44,814 45,357 Mortgage-commercial 39 — — 1,467 1,506 525,941 527,447 Consumer: — Home equity 2 9 — 70 81 28,810 28,891 Other 40 23 — — 63 9,953 10,016 $ 345 $ 131 $ — $ 2,329 $ 2,805 $ 734,223 $ 737,028 The Company identifies TDRs as impaired under the guidance in ASC 310-10-35. There were no loans determined to be TDRs that were restructured during the three-month periods ended March 31, 2020 and March 31, 2019. During the three month periods ended March 31, 2020 and March 31, 2019, there were no loans determined to be TDRs in the previous twelve months that had payment defaults. Defaulted loans are those loans that are greater than 89 days past due. In the determination of the allowance for loan losses, all TDRs are reviewed to ensure that one of the three proper valuation methods (fair market value of the collateral, present value of cash flows, or observable market price) is adhered to. All non-accrual loans are written down to their corresponding collateral value. All troubled TDR accruing loans that have a loan balance that exceeds the present value of cash flows will have a specific allocation. All nonaccrual loans are considered impaired. Under ASC 310-10, a loan is impaired when it is probable that the Company will be unable to collect all amounts due including both principal and interest according to the contractual terms of the loan agreement. In accordance with interagency guidance, short term deferrals granted due to the COVID-19 pandemic are not considered TDRs unless the borrower was previously experiencing financial difficulty. |
RECENTLY ISSUED ACCOUNTING PRON
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | Note 5—Recently Issued Accounting Pronouncements The following is a summary of recent authoritative pronouncements: In February 2016, the FASB amended the Leases topic of the ASC to revise certain aspects of recognition, measurement, presentation, and disclosure of leasing transactions. The amendments were effective for fiscal years beginning after December 15, 2018 including interim periods within those fiscal years. The Company adopted the guidance using the modified retrospective method and practical expedients for transition. The practical expedients allow the Company to largely account for our existing leases consistent with current guidance except for the incremental balance sheet recognition of leases. The impact of adoption on January 1, 2019 was recording a right-of-use asset and lease liability of $2.9 million. See Note 9 “Leases” to the consolidated financial statements. In June 2016, the FASB issued guidance to change the accounting for credit losses and modify the impairment model for certain debt securities. The amendments will be effective for the Company for reporting periods beginning after December 15, 2022. Early adoption is permitted for all organizations for periods beginning after December 15, 2018. The Company is currently evaluating the effect that implementation of the new standard will have on its financial position, results of operations, and cash flows. In January 2017, the FASB amended the Goodwill and Other Topic of the ASC to simplify the accounting for goodwill impairment for public business entities and other entities that have goodwill reported in their financial statements and have not elected the private company alternative for the subsequent measurement of goodwill. The amendment removes Step 2 of the goodwill impairment test. Goodwill impairment will now be the amount by which a reporting unit’s carrying value exceeds its fair value, not to exceed the carrying amount of goodwill. The effective date and transition requirements for the technical corrections are effective for the Company for reporting periods beginning after December 15, 2019. These amendments did not have a material impact on the Company’s financial statements. In March 2017, the FASB amended the requirements in the Receivables—Nonrefundable Fees and Other Costs Topic of the ASC related to the amortization period for certain purchased callable debt securities held at a premium. The amendments shorten the amortization period for the premium to the earliest call date. The amendments became effective for the Company for interim and annual periods beginning after December 15, 2018. The Company did not experience a material effect on its financial statements. In March 2018, the FASB updated the Debt Securities and the Regulated Operations Topics of the ASC. The amendments incorporate into the ASC recent SEC guidance which was issued in order to make the relevant interpretive guidance consistent with current authoritative accounting and auditing guidance and SEC rules and regulations. The amendments were effective upon issuance and did not have a material effect on the Company’s financial statements. In July 2018, the FASB amended the Leases Topic of the ASC to make narrow amendments to clarify how to apply certain aspects of the new leases standard. Additionally, amendments were made to give entities another option for transition and to provide lessors with a practical expedient. The amendments are effective for reporting periods beginning after December 15, 2018. The Company did not experience a material effect on its financial statements. In August 2018, the FASB amended the Fair Value Measurement Topic of the ASC. The amendments remove, modify, and add certain fair value disclosure requirements based on the concepts in the FASB Concepts Statement, Conceptual Framework for Financial Reporting—Chapter 8: Notes to Financial Statements. The amendments are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2019. The Company did not experience a material effect on its financial statements. In August 2018, the FASB amended the Intangibles—Goodwill and Other Topic of the ASC to align the requirements for capitalizing implementation costs incurred in a hosting arrangement that is a service contract with the requirements for capitalizing implementation costs incurred to develop or obtain internal-use software. The amendments are effective for the Company for fiscal years beginning after December 15, 2019. The Company did not experience a material effect on its financial statements. In March 2019, the FASB issued guidance to address concerns companies had raised about an accounting exception they would lose when assessing the fair value of underlying assets under the leases standard and clarify that lessees and lessors are exempt from a certain interim disclosure requirement associated with adopting the new standard. The amendments are effective for the Company for reporting periods beginning after December 15, 2019. Early adoption is permitted. The Company did not experience a material effect on its financial statements. In April 2019, the FASB issued guidance that clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement of financial instruments. The amendments related to credit losses are effective for the Company for reporting periods beginning after December 15, 2019. The amendments related to hedging are effective for the Company for interim and annual periods beginning after December 15, 2018. The amendments related to recognition and measurement of financial instruments are effective for the Company for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. The Company did not experience a material effect on its financial statements. In July 2019, the FASB updated various Topics of the ASC to align the guidance in various SEC sections of the ASC with the requirements of certain SEC final rules. The amendments were effective upon issuance and did not have a material effect on the financial statements. In November 2019, the FASB issued guidance to defer the effective dates for private companies, not-for-profit organizations, and certain smaller reporting companies applying standards on current expected credit losses (CECL), leases, hedging. The new effective date for CECL will be fiscal years beginning after December 15, 2022 including interim periods within those fiscal years. The Company is evaluating the impact that this will have on its financial statements In November 2019, the FASB issued guidance that addresses issues raised by stakeholders during the implementation of ASU 2016-13, Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments affect a variety of Topics in the Accounting Standards Codification. For entities that have not yet adopted the amendments in ASU 2016-13, the amendments are effective for fiscal years beginning after December 15, 2022 including interim periods within those fiscal years-all other entities. Early adoption is permitted in any interim period as long as an entity has adopted the amendments in ASU 2016-13. The Company is evaluating the impact that this will have on its financial statements. In January 2020, the FASB issued guidance to address accounting for the transition into and out of the equity method and measuring certain purchased options and forward contracts to acquire investments. The amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted, including early adoption in an interim period. The Company does not expect these amendments to have a material effect on its financial statements. In February 2020, the FASB issued guidance to add and amend SEC paragraphs in the ASC to reflect the issuance of SEC Staff Accounting Bulletin No. 119 related to the new credit losses standard and comments by the SEC staff related to the revised effective date of the new leases standard. The amendments were effective upon issuance. In March 2020, the FASB issued guidance that makes narrow-scope improvements to various aspects of the financial instrument guidance, including the CECL guidance issued in 2016. The amendments related to conforming amendments: For public business entities, the amendments are effective upon issuance of this final ASU. For all other entities, the amendments are effective for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years beginning after December 15, 2020. Early application is permitted. The effective date of the amendments to ASU 2016-01 is for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For the amendments related to ASU 2016-13, public business entities that meet the definition of an SEC filer, excluding eligible smaller reporting companies (SRCs) as defined by the SEC, should adopt the amendments in ASU 2016-13 during 2020. All other entities should adopt the amendments in ASU 2016-13 during 2023. Early adoption will continue to be permitted. For entities that have not yet adopted the guidance in ASU 2016-13, the effective dates and the transition requirements for these amendments are the same as the effective date and transition requirements in ASU 2016-13. For entities that have adopted the guidance in ASU 2016-13, the amendments were effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. For those entities, the amendments should be applied on a modified-retrospective basis by means of a cumulative-effect adjustment to opening retained earnings in the statement of financial position as of the date that an entity adopted the amendments in ASU 2016-13. The Company is evaluating the impact that this will have on its financial statements In March 2020, the FASB issued guidance to provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The amendments are effective as of March 12, 2020 through December 31, 2022. The Company does not expect these amendments to have a material effect on its financial statements. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
FAIR VALUE MEASUREMENT
FAIR VALUE MEASUREMENT | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENT | Note 6—Fair Value of Financial Instruments The Company adopted FASB ASC Fair Value Measurement Topic 820, which defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 defines fair value as the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. ASC 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level l 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. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. FASB ASC 825-10-50 “Disclosure about Fair Value of Financial Instruments”, requires the Company to disclose estimated fair values for its financial instruments. Fair value estimates, methods, and assumptions are set forth below. Cash and Short Term Investments - Investment Securities— Loans Held-for-Sale - Loans - Other Real Estate Owned (“OREO”) - Accrued Interest Receivable Deposits - Federal Home Loan Bank Advances - Short Term Borrowings - Junior Subordinated Debentures - Accrued Interest Payable - Commitments to Extend Credit The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 49,376 $ 49,376 $ 49,376 $ — $ — Available-for-sale securities 288,881 288,881 11,887 275,345 1,649 Other investments, at cost 2,062 2,062 — — 2,062 Loans held-for-sale 11,937 11,937 — 11,937 — Net loans receivable 741,835 717,881 — — 717,881 Accrued interest 3,369 3,369 3,369 — — Financial liabilities: Non-interest bearing demand $ 291,669 $ 291,669 $ — $ 291,669 $ — Interest bearing demand deposits and money market accounts 426,332 426,332 — 426,332 — Savings 102,171 102,171 — 102,171 — Time deposits 166,473 167,852 — 167,852 — Total deposits 986,645 986,645 — 986,645 — Short term borrowings 46,041 46,041 — 46,041 — Junior subordinated debentures 14,964 12,166 — 12,166 — Accrued interest payable 1,001 1,001 1,001 — — December 31, 2019 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 47,692 $ 47,692 $ 47,692 $ — $ — Available-for-sale securities 286,800 286,800 23,632 261,361 1,807 Other investments, at cost 1,992 1,992 — — 1,992 Loans held-for-sale 11,155 11,155 — 11,155 — Net loans receivable 730,401 728,745 — — 728,745 Accrued interest 3,481 3,481 3,481 — — Financial liabilities: Non-interest bearing demand $ 289,829 $ 289,829 $ — $ 289,829 $ — Interest bearing demand deposits and money market accounts 423,256 423,256 — 423,256 — Savings 104,456 104,456 — 104,456 — Time deposits 170,660 171,558 — 171,558 — Total deposits 988,201 989,099 — 989,099 — Federal Home Loan Bank advances 211 211 — 211 — Short term borrowings 33,296 33,296 — 33,296 — Junior subordinated debentures 14,964 13,161 — 13,161 — Accrued interest payable 1,033 1,033 1,033 — — The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of March 31, 2020 and December 31, 2019 that are measured on a recurring basis. There were no liabilities carried at fair value as of March 31, 2020 or December 31, 2019 that are measured on a recurring basis. (Dollars in thousands) Description March 31, 2020 Quoted Prices Significant Significant Available-for-sale securities US treasury securities $ 3,534 $ — $ 3,534 $ — Government sponsored enterprises 1,015 — 1,015 — Mortgage-backed securities 180,830 — 179,181 1,649 Small Business Administration pools 41,727 — 41,727 — State and local government 61,756 11,882 49,874 — Corporate and other securities 19 9 10 — 288,881 11,891 275,341 1,649 Loans held-for-sale 11,937 — 11,937 — Total $ 300,818 $ 11,891 $ 287,278 $ 1,649 (Dollars in thousands) Description December 31, 2019 Quoted Prices Significant Significant Available-for-sale securities US treasury securities $ 7,203 $ — $ 7,203 $ — Government sponsored enterprises 1,001 — 1,001 — Mortgage-backed securities 183,586 18,435 163,344 1,807 Small Business Administration securities 45,343 — 45,343 — State and local government 49,648 5,188 44,460 — Corporate and other securities 19 9 10 — 286,800 23,632 261,361 1,807 Loans held-for-sale 11,155 — 11,155 — Total $ 297,955 $ 23,632 $ 272,516 $ 1,807 The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of March 31, 2020 and December 31, 2019 that are measured on a non-recurring basis. There were no Level 3 financial instruments for the three months ended March 31, 2020 and March 31, 2019 measured on a recurring basis. (Dollars in thousands) Description March 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial & Industrial $ — $ — $ — $ — Real estate: Mortgage-residential 340 — — 340 Mortgage-commercial 2,961 — — 2,961 Consumer: Home equity 68 — — 68 Other — — — — Total impaired 3,369 — — 3,369 Other real estate owned: Construction 826 — — 826 Mortgage-residential 655 — — 655 Total other real estate owned 1,481 — — 1,481 Total $ 4,850 $ — $ — $ 4,850 (Dollars in thousands) Description December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial & Industrial $ 400 $ — $ — $ 400 Real estate: Mortgage-residential 392 — — 392 Mortgage-commercial 3,129 — — 3,129 Consumer: Home equity 70 — — 70 Other — — — — Total impaired 3,991 — — 3,991 Other real estate owned: Construction 826 — — 826 Mortgage-residential 584 — — 584 Total other real estate owned 1,410 — — 1,410 Total $ 5,401 $ — $ — $ 5,401 The Company has a large percentage of loans with real estate serving as collateral. Loans which are deemed to be impaired are primarily valued on a nonrecurring basis at the fair value of the underlying real estate collateral. Such fair values are obtained using independent appraisals, which the Company considers to be Level 3 inputs. Third party appraisals are generally obtained when a loan is identified as being impaired or at the time it is transferred to OREO. This internal process consists of evaluating the underlying collateral to independently obtained comparable properties. With respect to less complex or smaller credits, an internal evaluation may be performed. Generally, the independent and internal evaluations are updated annually. Factors considered in determining the fair value include, among others, geographic sales trends, the value of comparable surrounding properties and the condition of the property. The aggregate amount of impaired loans was $3.4 million and $4.0 million as of March 31, 2020 and December 31, 2019, respectively. For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value Valuation Technique Significant Significant OREO $ 1,481 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 3,369 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost (Dollars in thousands) Fair Value Valuation Technique Significant Significant OREO $ 1,410 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 3,991 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost |
DEPOSITS
DEPOSITS | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Deposits Abstract | |
DEPOSITS | Note 7—Deposits The Company’s total deposits are comprised of the following at the dates indicated: March 31, December 31, (Dollars in thousands) 2020 2019 Non-interest bearing demand deposits $ 291,669 $ 289,829 Interest bearing demand deposits and money market accounts 426,332 423,256 Savings 102,171 104,456 Time deposits 166,473 170,660 Total deposits $ 986,645 $ 988,201 As of March 31, 2020 and December 31, 2019, the Company had time deposits greater than $250,000 of $30.9 million and $32.2 million, respectively. |
REPORTABLE SEGMENTS
REPORTABLE SEGMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
REPORTABLE SEGMENTS | Note 8—Reportable Segments The Company’s reportable segments represent the distinct product lines the Company offers and are viewed separately for strategic planning by management. The Company has four reportable segments: · Commercial and retail banking: The Company’s primary business is to provide deposit and lending products and services to its commercial and retail customers. · Mortgage banking: This segment provides mortgage origination services for loans that will be sold to investors in the secondary market. · Investment advisory and non-deposit: This segment provides investment advisory services and non-deposit products. · Corporate: This segment includes the parent company financial information, including interest on parent company debt and dividend income received from the Bank. The following tables present selected financial information for the Company’s reportable business segments for the three months ended March 31, 2020 and March 31, 2019. Three months ended March 31, 2020 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 10,404 $ 300 $ — $ 1,068 $ (1,062 ) $ 10,710 Interest expense 1,125 — — 168 — 1,293 Net interest income $ 9,279 $ 300 $ — $ 900 $ (1,062 ) $ 9,417 Provision for loan losses 1,075 — — — — 1,075 Noninterest income 1,312 982 634 — — 2,928 Noninterest expense 7,495 963 468 112 — 9,038 Net income before taxes $ 2,021 $ 319 $ 166 $ 788 $ (1,062 ) $ 2,232 Income tax provision (benefit) 497 — — (59 ) — 438 Net income $ 1,524 $ 319 $ 166 $ 847 $ (1,062 ) $ 1,794 Three months ended March 31, 2019 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 10,131 $ 237 $ — $ 1,017 $ (1,011 ) $ 10,374 Interest expense 1,156 — — 198 — 1,354 Net interest income $ 8,975 $ 237 $ — $ 819 $ (1,011 ) $ 9,020 Provision for loan losses 105 — — — — 105 Noninterest income 1,227 844 438 — — 2,509 Noninterest expense 7,024 804 415 80 — 8,323 Net income before taxes $ 3,073 $ 277 $ 23 $ 739 $ (1,011 ) $ 3,101 Income tax provision (benefit) 685 — — (79 ) — 606 Net income $ 2,388 $ 277 $ 23 $ 818 $ (1,011 ) $ 2,495 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of March 31, 2020 $ 1,156,598 $ 27,990 $ 4 $ 132,987 $ (132,272 ) $ 1,185,307 Total Assets as of December 31, 2019 $ 1,143,934 $ 25,673 $ 2 $ 132,890 $ (132,220 ) $ 1,170,279 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of March 31, 2019 $ 1,076,190 $ 20,486 $ 7 $ 130,121 $ (129,408 ) $ 1,097,396 Total Assets as of December 31, 2018 $ 1,074,838 $ 16,078 $ 9 $ 129,992 $ (129,322 ) $ 1,091,595 |
LEASES
LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | Note 9—Leases During the period ended March 31, 2020 and March 31, 2019, the Company made cash payments for operating leases in the amount of $72.6 thousand and $48.9 thousand, respectively. The lease expense recognized during this period amounted to $80.8 thousand and $58.3 thousand at March 31, 2020 and March 31, 2019, respectively. The lease liability was reduced by $37.1 thousand and $17.2 thousand at March 31, 2020 and March 31, 2019, respectively. At March 31, 2020 and March 31, 2019, the weighted average lease term was 16.3 years and 18.92 years, respectively and the weighted average discount rate for both years was 4.4%. The following table is a maturity analysis of the operating lease liabilities. (Dollars in thousands) Liability Year Cash Lease Expense Reduction 2020 $ 220 $ 105 $ 115 2021 298 133 165 2022 303 126 177 2023 309 118 191 2024 282 110 172 Thereafter 3,199 789 2,409 Total $ 4,611 $ 1,381 $ 3,229 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | Note 10—Subsequent Events Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and no subsequent events occurred requiring accrual or that require disclosure and have not been disclosed in the footnotes to our unaudited consolidated financial statements as of March 31, 2020 . |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of reconciliation of the numerator and denominator of the basic and diluted earnings per common share computation | The following reconciles the numerator and denominator of the basic and diluted earnings per common share computation: (In thousands except average market price) Three months ended March 31, 2020 2019 Numerator (Net income available to common shareholders) $ 1,794 $ 2,495 Denominator Weighted average common shares outstanding for: Basic shares 7,421 7,634 Dilutive securities: Deferred compensation 38 52 Warrants/Restricted stock -Treasury stock method 9 39 Diluted shares 7,468 7,725 The average market price used in calculating assumed number of shares $ 19.03 $ 19.90 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of amortized cost and estimated fair values of available-for-sale | The amortized cost and estimated fair values of investment securities are summarized below: AVAILABLE-FOR-SALE: Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value March 31, 2020 US Treasury securities $ 3,498 $ 36 $ — $ 3,534 Government Sponsored Enterprises 987 28 — 1,015 Mortgage-backed securities 176,507 5,818 1,491 180,834 Small Business Administration pools 41,255 597 125 41,727 State and local government 59,187 2,577 8 61,756 Other securities 15 — — 15 $ 281,449 $ 9,056 $ 1,624 $ 288,881 Gross Gross Amortized Unrealized Unrealized (Dollars in thousands) Cost Gains Losses Fair Value December 31, 2019 US Treasury securities $ 7,190 $ 16 $ 3 $ 7,203 Government Sponsored Enterprises 984 17 — 1,001 Mortgage-backed securities 182,736 1,490 640 183,586 Small Business Administration pools 45,301 259 217 45,343 State and local government 47,418 2,371 141 49,648 Other securities 19 — — 19 $ 283,648 $ 4,153 $ 1,001 $ 286,800 |
Schedule of gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position | The following tables show gross unrealized losses and fair values, aggregated by investment category and length of time that individual securities have been in a continuous loss position, at March 31, 2020 and December 31, 2019. (Dollars in thousands) Less than 12 months 12 months or more Total March 31, 2020 Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: Value Loss Value Loss Value Loss Mortgage-backed securities $ 36,949 $ 1,432 $ 4,062 $ 59 $ 41,011 $ 1,491 Small Business Administration pools 3,038 18 8,845 107 11,883 125 State and local government 2,226 8 — — 2,226 8 Total $ 42,213 $ 1,458 $ 12,907 $ 166 $ 55,120 $ 1,624 (Dollars in thousands) Less than 12 months 12 months or more Total December 31, 2019 Fair Unrealized Fair Unrealized Fair Unrealized Available-for-sale securities: Value Loss Value Loss Value Loss US Treasury securities $ — $ — $ 1,508 $ 3 $ 1,508 $ 3 Mortgage-backed securities 57,175 485 12,419 155 69,594 640 Small Business Administration pools 7,891 53 13,502 164 21,393 217 State and local government 5,695 141 — — 5,695 141 Total $ 70,761 $ 679 $ 27,429 $ 322 $ 98,190 $ 1,001 |
Schedule of the amortized cost and fair value of investment securities by expected maturity | March 31, 2020 Available-for-sale Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 7,772 $ 7,842 Due after one year through five years 122,950 125,292 Due after five years through ten years 123,926 128,280 Due after ten years 26,801 27,467 Total $ 281,449 $ 288,881 |
LOANS (Tables)
LOANS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Receivables [Abstract] | |
Summary of loans by category | Loans summarized by category as of March 31, 2020, December 31, 2019 and March 31, 2019 are as follows: March 31, December 31, March 31, (Dollars in thousands) 2020 2019 2019 Commercial, financial and agricultural $ 50,313 $ 51,805 $ 52,289 Real estate: Construction 83,547 73,512 56,234 Mortgage-residential 46,471 45,357 50,732 Mortgage-commercial 530,180 527,447 519,420 Consumer: Home equity 28,641 28,891 30,092 Other 10,377 10,016 9,653 Total $ 749,529 $ 737,028 $ 718,420 |
Schedule of activity in the allowance for loan losses and the recorded investment in loans receivable | The detailed activity in the allowance for loan losses and the recorded investment in loans receivable as of and for the three months ended March 31, 2020 and March 31, 2019 and for the year ended December 31, 2019 is as follows: (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial Construction Residential Commercial equity Other Unallocated Total March 31, 2020 Allowance for loan losses: Beginning balance $ 427 $ 111 $ 367 $ 4,602 $ 240 $ 97 $ 783 $ 6,627 Charge-offs — — — — — (23 ) — (23 ) Recoveries — — — 6 1 8 — 15 Provisions 62 37 73 923 36 30 (86 ) 1,075 Ending balance $ 489 $ 148 $ 440 $ 5,531 $ 277 $ 112 $ 697 $ 7,694 Ending balances: Individually evaluated for impairment $ — $ — $ — $ 5 $ — $ — $ — $ 5 Collectively evaluated for impairment 489 148 440 5,526 277 112 697 7,689 March 31, 2020 Loans receivable: Ending balance-total $ 50,313 $ 83,547 $ 46,471 $ 530,180 $ 28,641 $ 10,377 $ — $ 749,529 Ending balances: Individually evaluated for impairment — — 340 2,966 68 — — 3,374 Collectively evaluated for impairment $ 50,313 $ 83,547 $ 46,131 $ 527,214 $ 28,573 $ 10,377 $ — $ 746,155 (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial Construction Residential Commercial equity Other Unallocated Total March 31, 2019 Allowance for loan losses: Beginning balance $ 430 $ 89 $ 431 $ 4,318 $ 261 $ 88 $ 646 $ 6,263 Charge-offs (2 ) — — — (1 ) (30 ) — (33 ) Recoveries — — — 10 — 9 — 19 Provisions (10 ) 7 (19 ) 18 8 22 79 105 Ending balance $ 418 $ 96 $ 412 $ 4,346 $ 268 $ 89 $ 725 $ 6,354 Ending balances: Individually evaluated for impairment $ — $ — $ — $ 14 $ — $ — $ — $ 14 Collectively evaluated for impairment 418 96 412 4,332 268 89 725 6,340 March 31, 2019 Loans receivable: Ending balance-total $ 52,289 $ 56,234 $ 50,732 $ 519,420 $ 30,092 $ 9,653 $ — $ 718,420 Ending balances: Individually evaluated for impairment — — 409 4,162 57 5 — 4,633 Collectively evaluated for impairment $ 52,289 $ 56,234 $ 50,323 $ 515,258 $ 30,035 $ 9,648 $ — $ 713,787 (Dollars in thousands) Real estate Real estate Consumer Real estate Mortgage Mortgage Home Consumer Commercial Construction Residential Commercial equity Other Unallocated Total December 31, 2019 Allowance for loan losses: Beginning balance $ 430 $ 89 $ 431 $ 4,318 $ 261 $ 88 $ 646 $ 6,263 Charge-offs (12 ) — (12 ) — (1 ) (120 ) — (145 ) Recoveries 3 — — 307 15 45 — 370 Provisions 6 22 (52 ) (23) (35 ) 84 137 139 Ending balance $ 427 $ 111 $ 367 $ 4,602 $ 240 $ 97 $ 783 $ 6,627 Ending balances: Individually evaluated for impairment $ — $ — $ — $ 6 $ — $ — $ — $ 6 Collectively evaluated for impairment 427 111 367 4,596 240 97 783 6,621 December 31, 2019 Loans receivable: Ending balance-total $ 51,805 $ 73,512 $ 45,357 $ 527,447 $ 28,891 $ 10,016 $ — $ 737,028 Ending balances: Individually evaluated for impairment 400 — 392 3,135 70 — — 3,997 Collectively evaluated for impairment $ 51,405 $ 73,512 $ 44,965 $ 524,312 $ 28,821 $ 10,016 $ — $ 733,031 |
Schedule of related party loan | Related party loans and lines of credit are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated persons and generally do not involve more than the normal risk of collectability. The following table presents related party loan transactions for the three months ended March 31, 2020 and March 31, 2019: (Dollars in thousands) 2020 2019 Beginning Balance December 31, $ 4,109 $ 5,937 New Loans 55 — Less loan repayments 437 85 Ending Balance March 31, $ 3,727 $ 5,852 |
Schedule of loans individually evaluated and considered impaired | The following table presents at March 31, 2020 and December 31, 2019 loans individually evaluated and considered impaired under Financial Accounting Standards Board (“FASB”) Accounting Standards Codification (“ASC”) 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing troubled debt restructurings (“TDRs”). (Dollars in thousands) March 31, December 31, 2020 2019 Total loans considered impaired $ 3,374 $ 3,997 Loans considered impaired for which there is a related allowance for loan loss: Outstanding loan balance $ 219 $ 256 Related allowance $ 5 $ 6 Loans considered impaired and previously written down to fair value $ 2,172 $ 2,275 Average impaired loans $ 3,437 $ 4,431 Amount of interest earned during period of impairment $ 82 $ 263 |
Schedule of loan category and loans individually evaluated and considered impaired | The following tables are by loan category and present at March 31, 2020, March 31, 2019 and December 31, 2019, loans individually evaluated and considered impaired under FASB ASC 310 “Accounting by Creditors for Impairment of a Loan.” Impairment includes performing TDRs. (Dollars in thousands) Three months ended Unpaid Average Interest March 31, 2020 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 340 431 — 339 6 Mortgage-commercial 2,747 5,161 — 2,797 72 Consumer: Home Equity 68 72 — 69 1 Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential — — — — — Mortgage-commercial 219 219 5 232 3 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 340 431 — 339 6 Mortgage-commercial 2,966 5,380 5 3,029 75 Consumer: Home Equity 68 72 — 69 1 Other — — — — — $ 3,374 $ 5,883 $ 5 $ 3,437 $ 82 (Dollars in thousands) Three months ended Unpaid Average Interest March 31, 2019 Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ — $ — $ — $ — $ — Real estate: Construction — — — — — Mortgage-residential 409 462 — 413 4 Mortgage-commercial 3,715 6,708 — 4,048 61 Consumer: Home Equity 57 59 — 59 1 Other 5 5 — 5 — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential — — — — — Mortgage-commercial 447 447 14 448 6 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential 409 462 — 413 4 Mortgage-commercial 4,162 7,155 14 4,496 67 Consumer: Home Equity 57 59 — 59 1 Other 5 5 — 5 — $ 4,633 $ 7,681 $ 14 $ 4,973 $ 72 (Dollars in thousands) December 31, 2019 Unpaid Average Interest Recorded Principal Related Recorded Income Investment Balance Allowance Investment Recognized With no allowance recorded: Commercial $ 400 $ 400 $ — $ 600 $ 49 Real estate: Construction — — — — — Mortgage-residential 392 460 — 439 19 Mortgage-commercial 2,879 5,539 — 2,961 170 Consumer: Home Equity 70 73 — 76 2 Other — — — — — With an allowance recorded: Commercial — — — — — Real estate: Construction — — — — — Mortgage-residential — — — — — Mortgage-commercial 256 256 6 355 23 Consumer: Home Equity — — — — — Other — — — — — Total: Commercial 400 400 — 600 49 Real estate: Construction — — — — — Mortgage-residential 392 460 — 439 19 Mortgage-commercial 3,135 5,795 6 3,316 193 Consumer: Home Equity 70 73 — 76 2 Other — — — — — $ 3,997 $ 6,728 $ 6 $ 4,431 $ 263 |
Schedule of loan category and loan by risk categories | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered as pass rated loans. As of March 31, 2020 and December 31, 2019, and based on the most recent analysis performed, the risk category of loans by class of loans is shown in the table below. As of March 31, 2020 and December 31, 2019, no loans were classified as doubtful. (Dollars in thousands) March 31, 2020 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 50,202 $ 111 $ — $ — $ 50,313 Real estate: Construction 83,547 — — — 83,547 Mortgage – residential 45,301 285 885 — 46,471 Mortgage – commercial 524,525 2,396 3,259 — 530,180 Consumer: Home Equity 27,192 1,127 322 — 28,641 Other 10,346 31 — — 10,377 Total $ 741,113 $ 3,950 $ 4,466 $ — $ 749,529 (Dollars in thousands) December 31, 2019 Special Pass Mention Substandard Doubtful Total Commercial, financial & agricultural $ 51,166 $ 239 $ 400 $ — $ 51,805 Real estate: Construction 73,512 — — — 73,512 Mortgage – residential 44,221 509 627 — 45,357 Mortgage – commercial 521,072 2,996 3,379 — 527,447 Consumer: Home Equity 27,450 1,157 284 — 28,891 Other 9,981 35 — — 10,016 Total $ 727,402 $ 4,936 $ 4,690 $ — $ 737,028 |
Schedule for changes in the accretable yield for PCI loans | A summary of changes in the accretable yield for purchased credit-impaired loans for the three months ended March 31, 2020 and March 31, 2019 follows: (Dollars in thousands) Three Months Three Months Accretable yield, beginning of period $ 123 $ 153 Additions — — Accretion (7 ) (8 ) Reclassification of nonaccretable difference due to improvement in expected cash flows — — Other changes, net — — Accretable yield, end of period $ 116 $ 145 |
Schedule of loan category and present loans past due and on non-accrual status | The following tables are by loan category and present loans past due and on non-accrual status as of March 31, 2020 and December 31, 2019: (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total March 31, 2020 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ 57 $ — $ — $ — $ 57 $ 50,256 $ 50,313 Real estate: Construction — — — — — 83,547 83,547 Mortgage-residential 181 — 168 340 689 45,782 46,471 Mortgage-commercial 294 — — 1,330 1,624 528,556 530,180 Consumer: Home equity — 70 — 68 138 28,503 28,641 Other 66 3 — — 69 10,308 10,377 $ 598 $ 73 $ 168 $ 1,738 $ 2,577 $ 746,952 $ 749,529 (Dollars in thousands) Greater than 30-59 Days 60-89 Days 90 Days and Total December 31, 2019 Past Due Past Due Accruing Nonaccrual Past Due Current Total Loans Commercial $ — $ 99 $ — $ 400 $ 499 $ 51,306 $ 51,805 Real estate: Construction 113 — — — 113 73,399 73,512 Mortgage-residential 151 — — 392 543 44,814 45,357 Mortgage-commercial 39 — — 1,467 1,506 525,941 527,447 Consumer: — Home equity 2 9 — 70 81 28,810 28,891 Other 40 23 — — 63 9,953 10,016 $ 345 $ 131 $ — $ 2,329 $ 2,805 $ 734,223 $ 737,028 |
FAIR VALUE MEASUREMENT (Tables)
FAIR VALUE MEASUREMENT (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of carrying amount and estimated fair value by classification Level of the Company's financial instruments | The carrying amount and estimated fair value by classification level of the Company’s financial instruments as of March 31, 2020 and December 31, 2019 are as follows: March 31, 2020 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 49,376 $ 49,376 $ 49,376 $ — $ — Available-for-sale securities 288,881 288,881 11,887 275,345 1,649 Other investments, at cost 2,062 2,062 — — 2,062 Loans held-for-sale 11,937 11,937 — 11,937 — Net loans receivable 741,835 717,881 — — 717,881 Accrued interest 3,369 3,369 3,369 — — Financial liabilities: Non-interest bearing demand $ 291,669 $ 291,669 $ — $ 291,669 $ — Interest bearing demand deposits and money market accounts 426,332 426,332 — 426,332 — Savings 102,171 102,171 — 102,171 — Time deposits 166,473 167,852 — 167,852 — Total deposits 986,645 986,645 — 986,645 — Short term borrowings 46,041 46,041 — 46,041 — Junior subordinated debentures 14,964 12,166 — 12,166 — Accrued interest payable 1,001 1,001 1,001 — — December 31, 2019 Fair Value (Dollars in thousands) Carrying Amount Total Level 1 Level 2 Level 3 Financial Assets: Cash and short term investments $ 47,692 $ 47,692 $ 47,692 $ — $ — Available-for-sale securities 286,800 286,800 23,632 261,361 1,807 Other investments, at cost 1,992 1,992 — — 1,992 Loans held-for-sale 11,155 11,155 — 11,155 — Net loans receivable 730,401 728,745 — — 728,745 Accrued interest 3,481 3,481 3,481 — — Financial liabilities: Non-interest bearing demand $ 289,829 $ 289,829 $ — $ 289,829 $ — Interest bearing demand deposits and money market accounts 423,256 423,256 — 423,256 — Savings 104,456 104,456 — 104,456 — Time deposits 170,660 171,558 — 171,558 — Total deposits 988,201 989,099 — 989,099 — Federal Home Loan Bank advances 211 211 — 211 — Short term borrowings 33,296 33,296 — 33,296 — Junior subordinated debentures 14,964 13,161 — 13,161 — Accrued interest payable 1,033 1,033 1,033 — — |
Schedule of fair value for each category of assets carried at fair value that are measured on a recurring basis | The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of March 31, 2020 and December 31, 2019 that are measured on a recurring basis. There were no liabilities carried at fair value as of March 31, 2020 or December 31, 2019 that are measured on a recurring basis. (Dollars in thousands) Description March 31, 2020 Quoted Prices Significant Significant Available-for-sale securities US treasury securities $ 3,534 $ — $ 3,534 $ — Government sponsored enterprises 1,015 — 1,015 — Mortgage-backed securities 180,830 — 179,181 1,649 Small Business Administration pools 41,727 — 41,727 — State and local government 61,756 11,882 49,874 — Corporate and other securities 19 9 10 — 288,881 11,891 275,341 1,649 Loans held-for-sale 11,937 — 11,937 — Total $ 300,818 $ 11,891 $ 287,278 $ 1,649 (Dollars in thousands) Description December 31, 2019 Quoted Prices Significant Significant Available-for-sale securities US treasury securities $ 7,203 $ — $ 7,203 $ — Government sponsored enterprises 1,001 — 1,001 — Mortgage-backed securities 183,586 18,435 163,344 1,807 Small Business Administration securities 45,343 — 45,343 — State and local government 49,648 5,188 44,460 — Corporate and other securities 19 9 10 — 286,800 23,632 261,361 1,807 Loans held-for-sale 11,155 — 11,155 — Total $ 297,955 $ 23,632 $ 272,516 $ 1,807 |
Schedule of the fair value for each category of assets carried at fair value that are measured on a non-recurring basis | The following tables summarize quantitative disclosures about the fair value for each category of assets carried at fair value as of March 31, 2020 and December 31, 2019 that are measured on a non-recurring basis. There were no Level 3 financial instruments for the three months ended March 31, 2020 and March 31, 2019 measured on a recurring basis. (Dollars in thousands) Description March 31, 2020 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial & Industrial $ — $ — $ — $ — Real estate: Mortgage-residential 340 — — 340 Mortgage-commercial 2,961 — — 2,961 Consumer: Home equity 68 — — 68 Other — — — — Total impaired 3,369 — — 3,369 Other real estate owned: Construction 826 — — 826 Mortgage-residential 655 — — 655 Total other real estate owned 1,481 — — 1,481 Total $ 4,850 $ — $ — $ 4,850 (Dollars in thousands) Description December 31, 2019 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) Impaired loans: Commercial & Industrial $ 400 $ — $ — $ 400 Real estate: Mortgage-residential 392 — — 392 Mortgage-commercial 3,129 — — 3,129 Consumer: Home equity 70 — — 70 Other — — — — Total impaired 3,991 — — 3,991 Other real estate owned: Construction 826 — — 826 Mortgage-residential 584 — — 584 Total other real estate owned 1,410 — — 1,410 Total $ 5,401 $ — $ — $ 5,401 |
Schedule of significant unobservable inputs used in the fair value measurements | For Level 3 assets and liabilities measured at fair value on a non-recurring basis as of March 31, 2020 and December 31, 2019, the significant unobservable inputs used in the fair value measurements were as follows: (Dollars in thousands) Fair Value Valuation Technique Significant Significant OREO $ 1,481 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 3,369 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost (Dollars in thousands) Fair Value Valuation Technique Significant Significant OREO $ 1,410 Appraisal Value/Comparison Sales/Other estimates Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost Impaired loans $ 3,991 Appraisal Value Appraisals and or sales of comparable properties Appraisals discounted 6% to 16% for sales commissions and other holding cost |
DEPOSITS (Tables)
DEPOSITS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Disclosure Deposits Tables Abstract | |
Schedule of Total Deposit Liabilities | The Company’s total deposits are comprised of the following at the dates indicated: March 31, December 31, (Dollars in thousands) 2020 2019 Non-interest bearing demand deposits $ 291,669 $ 289,829 Interest bearing demand deposits and money market accounts 426,332 423,256 Savings 102,171 104,456 Time deposits 166,473 170,660 Total deposits $ 986,645 $ 988,201 |
REPORTABLE SEGMENTS (Tables)
REPORTABLE SEGMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Reportable Segment | The following tables present selected financial information for the Company’s reportable business segments for the three months ended March 31, 2020 and March 31, 2019. Three months ended March 31, 2020 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 10,404 $ 300 $ — $ 1,068 $ (1,062 ) $ 10,710 Interest expense 1,125 — — 168 — 1,293 Net interest income $ 9,279 $ 300 $ — $ 900 $ (1,062 ) $ 9,417 Provision for loan losses 1,075 — — — — 1,075 Noninterest income 1,312 982 634 — — 2,928 Noninterest expense 7,495 963 468 112 — 9,038 Net income before taxes $ 2,021 $ 319 $ 166 $ 788 $ (1,062 ) $ 2,232 Income tax provision (benefit) 497 — — (59 ) — 438 Net income $ 1,524 $ 319 $ 166 $ 847 $ (1,062 ) $ 1,794 Three months ended March 31, 2019 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Dividend and Interest Income $ 10,131 $ 237 $ — $ 1,017 $ (1,011 ) $ 10,374 Interest expense 1,156 — — 198 — 1,354 Net interest income $ 8,975 $ 237 $ — $ 819 $ (1,011 ) $ 9,020 Provision for loan losses 105 — — — — 105 Noninterest income 1,227 844 438 — — 2,509 Noninterest expense 7,024 804 415 80 — 8,323 Net income before taxes $ 3,073 $ 277 $ 23 $ 739 $ (1,011 ) $ 3,101 Income tax provision (benefit) 685 — — (79 ) — 606 Net income $ 2,388 $ 277 $ 23 $ 818 $ (1,011 ) $ 2,495 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of March 31, 2020 $ 1,156,598 $ 27,990 $ 4 $ 132,987 $ (132,272 ) $ 1,185,307 Total Assets as of December 31, 2019 $ 1,143,934 $ 25,673 $ 2 $ 132,890 $ (132,220 ) $ 1,170,279 Commercial Investment (Dollars in thousands) and Retail Mortgage advisory and Banking Banking non-deposit Corporate Eliminations Consolidated Total Assets as of March 31, 2019 $ 1,076,190 $ 20,486 $ 7 $ 130,121 $ (129,408 ) $ 1,097,396 Total Assets as of December 31, 2018 $ 1,074,838 $ 16,078 $ 9 $ 129,992 $ (129,322 ) $ 1,091,595 |
LEASES (Tables)
LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Impaired Financing Receivables with and without Allocated Allowance [Table Text Block] | |
Schedule of operating lease liabilities | The following table is a maturity analysis of the operating lease liabilities. (Dollars in thousands) Liability Year Cash Lease Expense Reduction 2020 $ 220 $ 105 $ 115 2021 298 133 165 2022 303 126 177 2023 309 118 191 2024 282 110 172 Thereafter 3,199 789 2,409 Total $ 4,611 $ 1,381 $ 3,229 |
NATURE OF BUSINESS AND BASIS _2
NATURE OF BUSINESS AND BASIS OF PRESENTATION (Details) $ in Thousands | Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 31, 2019USD ($) |
Outstanding Loan Balance | $ 749,529 | $ 737,028 | $ 718,420 |
Payment Deferral [Member] | Hotels | |||
Outstanding Loan Balance | $ 26,800 | ||
Percentage of Loan Portfolio | 0.036 | ||
Average Loan size | $ 1,900 | ||
Average Loan to Value | 0.67 | ||
Payment Deferral [Member] | Restaurants | |||
Outstanding Loan Balance | $ 17,600 | ||
Percentage of Loan Portfolio | 0.024 | ||
Average Loan size | $ 600 | ||
Average Loan to Value | 0.64 | ||
Payment Deferral [Member] | Assisted Living | |||
Outstanding Loan Balance | $ 9,200 | ||
Percentage of Loan Portfolio | 0.012 | ||
Average Loan size | $ 1,800 | ||
Average Loan to Value | 0.50 | ||
Payment Deferral [Member] | Retail | |||
Outstanding Loan Balance | $ 75,500 | ||
Percentage of Loan Portfolio | 0.101 | ||
Average Loan size | $ 600 | ||
Average Loan to Value | 0.62 |
EARNINGS PER SHARE (Details)
EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Numerator (Included in basic and diluted earnings per share) | $ 1,794 | $ 2,495 |
Weighted average common shares outstanding for: | ||
Basic earnings common per share (in shares) | 7,421 | 7,634 |
Dilutive securities: | ||
Deferred compensation (in shares) | 38 | 52 |
Warrants - Treasury stock method (in shares) | 9 | 39 |
Diluted earnings per share (in shares) | 7,468 | 7,725 |
The average market price used in calculating assumed number of shares (in dollars per share) | $ 19.03 | $ 19.90 |
EARNINGS PER SHARE (Details Nar
EARNINGS PER SHARE (Details Narrative) $ in Thousands | Dec. 16, 2011USD ($)shares |
Junior Subordinated Debt [Member] | |
Debt issued | $ | $ 2,500 |
Common Stock Warrant | |
Warrants issued (in shares) | shares | 107,500 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 281,449 | $ 283,648 |
Gross Unrealized Gains | 9,056 | 4,153 |
Gross Unrealized Losses | 1,624 | 1,001 |
Fair Value | 288,881 | 286,800 |
US Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 3,498 | 7,190 |
Gross Unrealized Gains | 36 | 16 |
Gross Unrealized Losses | 3 | |
Fair Value | 3,534 | 7,203 |
Government sponsored enterprises [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 987 | 984 |
Gross Unrealized Gains | 28 | 17 |
Gross Unrealized Losses | ||
Fair Value | 1,015 | 1,001 |
Government Sponsored Enterprise mortgage-backed securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 176,507 | 182,736 |
Gross Unrealized Gains | 5,818 | 1,490 |
Gross Unrealized Losses | 1,491 | 640 |
Fair Value | 180,834 | 183,586 |
Small Business Administration pools [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 41,255 | 45,301 |
Gross Unrealized Gains | 597 | 259 |
Gross Unrealized Losses | 125 | 217 |
Fair Value | 41,727 | 45,343 |
State and local government [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 59,187 | 47,418 |
Gross Unrealized Gains | 2,577 | 2,371 |
Gross Unrealized Losses | 8 | 141 |
Fair Value | 61,756 | 49,648 |
Corporate and other securities [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15 | 19 |
Gross Unrealized Gains | ||
Gross Unrealized Losses | ||
Fair Value | $ 15 | $ 19 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | $ 42,213 | $ 70,761 |
Less Than 12 Months, Unrealized Losses | 1,458 | 679 |
12 Months Or Longer, Fair Value | 12,907 | 27,429 |
12 Months Or Longer, Unrealized Losses | 166 | 322 |
Total Fair Value | 55,120 | 98,190 |
Total Unrealized Losses | 1,624 | 1,001 |
Government Sponsored Enterprise mortgage-backed securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 36,949 | 57,175 |
Less Than 12 Months, Unrealized Losses | 1,432 | 485 |
12 Months Or Longer, Fair Value | 4,062 | 12,419 |
12 Months Or Longer, Unrealized Losses | 59 | 155 |
Total Fair Value | 41,011 | 69,594 |
Total Unrealized Losses | 1,491 | 640 |
Small Business Administration pools [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 3,038 | 7,891 |
Less Than 12 Months, Unrealized Losses | 18 | 53 |
12 Months Or Longer, Fair Value | 8,845 | 13,502 |
12 Months Or Longer, Unrealized Losses | 107 | 164 |
Total Fair Value | 11,883 | 21,393 |
Total Unrealized Losses | 125 | 217 |
State and local government [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | 2,226 | 5,695 |
Less Than 12 Months, Unrealized Losses | 8 | 141 |
12 Months Or Longer, Fair Value | ||
12 Months Or Longer, Unrealized Losses | ||
Total Fair Value | 2,226 | 5,695 |
Total Unrealized Losses | $ 8 | 141 |
US Treasury Securities [Member] | ||
Available-for-sale securities | ||
Less Than 12 Months, Fair Value | ||
Less Than 12 Months, Unrealized Losses | ||
12 Months Or Longer, Fair Value | 1,508 | |
12 Months Or Longer, Unrealized Losses | 3 | |
Total Fair Value | 1,508 | |
Total Unrealized Losses | $ 3 |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 3) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Available-for-sale, Amortized Cost | ||
Due in one year or less | $ 7,772 | |
Due after one year through five years | 122,950 | |
Due after five years through ten years | 123,926 | |
Due after ten years | 26,801 | |
Total | 281,449 | |
Available-for-sale, Fair Value | ||
Due in one year or less | 7,842 | |
Due after one year through five years | 125,292 | |
Due after five years through ten years | 128,280 | |
Due after ten years | 27,467 | |
Total | $ 288,881 | $ 286,800 |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Fair Value | $ 288,881 | $ 286,800 | |
Proceeds from sale of investment securities available-for-sale | 11,882 | $ 5,419 | |
Gross realized gains | 41 | ||
Gross realized losses | 70 | ||
FHLB Stock | 1,100 | 991 | |
Mutual Funds [Member] | |||
Fair Value | 5 | 9 | |
Gross realized gains | $ 1 | ||
Gross realized losses | 4 | ||
Foreign Corporate Debt Securities [Member] | |||
Fair Value | 10 | 10 | |
Corporate Bond Securities [Member] | |||
Fair Value | 1,000 | 1,000 | |
Government Sponsored Enterprise mortgage-backed securities [Member] | |||
Securities pledged amortized cost | 176,500 | 182,700 | |
Securities pledged fair value | 180,800 | 183,600 | |
Non-agency mortgage-backed securities [Member] | |||
Securities pledged amortized cost | 70,900 | 73,500 | |
Securities pledged fair value | $ 66,200 | $ 73,500 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 749,529 | $ 737,028 | $ 718,420 |
Commercial Financial and Agricultural Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 50,313 | 51,805 | 52,289 |
Real Estate Construction Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 83,547 | 73,512 | 56,234 |
Real estate Mortgage-residential [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 46,471 | 45,357 | 50,732 |
Real estate Mortgage-commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 530,180 | 527,447 | 519,420 |
Consumer Home Equity Line of Credit [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 28,641 | 28,891 | 30,092 |
Consumer Other Financing Receivable [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 10,377 | $ 10,016 | $ 9,653 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | $ 6,627 | $ 6,263 | $ 6,263 |
Charge-offs | (23) | (33) | (145) |
Recoveries | 15 | 19 | 370 |
Provisions | 1,075 | 105 | 139 |
Balance at end of the period | 7,694 | 6,354 | 6,627 |
Allowance for loan losses | |||
Individually evaluated for impairment | 5 | 14 | 6 |
Collectively evaluated for impairment | 7,689 | 6,340 | 6,621 |
Loans receivable: | |||
Ending balance-total | 749,529 | 718,420 | 737,028 |
Individually evaluated for impairment | 3,374 | 4,633 | 3,997 |
Collectively evaluated for impairment | 746,155 | 713,787 | 733,031 |
Commercial Financial and Agricultural Loans [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 427 | 430 | 430 |
Charge-offs | (2) | (12) | |
Recoveries | 3 | ||
Provisions | 62 | (10) | 6 |
Balance at end of the period | 489 | 418 | 427 |
Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 489 | 418 | 427 |
Loans receivable: | |||
Ending balance-total | 50,313 | 52,289 | 51,805 |
Individually evaluated for impairment | 400 | ||
Collectively evaluated for impairment | 50,313 | 52,289 | 51,405 |
Real Estate Construction Loans [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 111 | 89 | 89 |
Charge-offs | |||
Recoveries | |||
Provisions | 37 | 7 | 22 |
Balance at end of the period | 148 | 96 | 111 |
Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 148 | 96 | 111 |
Loans receivable: | |||
Ending balance-total | 83,547 | 56,234 | 73,512 |
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 83,547 | 56,234 | 73,512 |
Real estate Mortgage-residential [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 367 | 431 | 431 |
Charge-offs | (12) | ||
Recoveries | |||
Provisions | 73 | (19) | (52) |
Balance at end of the period | 440 | 412 | 367 |
Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 440 | 412 | 367 |
Loans receivable: | |||
Ending balance-total | 46,471 | 50,732 | 45,357 |
Individually evaluated for impairment | 340 | 409 | 392 |
Collectively evaluated for impairment | 46,131 | 50,323 | 44,965 |
Real estate Mortgage-commercial [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 4,602 | 4,318 | 4,318 |
Charge-offs | |||
Recoveries | 6 | 10 | 307 |
Provisions | 923 | 18 | (23) |
Balance at end of the period | 5,531 | 4,346 | 4,602 |
Allowance for loan losses | |||
Individually evaluated for impairment | 5 | 14 | 6 |
Collectively evaluated for impairment | 5,526 | 4,332 | 4,596 |
Loans receivable: | |||
Ending balance-total | 530,180 | 519,420 | 527,447 |
Individually evaluated for impairment | 2,966 | 4,162 | 3,135 |
Collectively evaluated for impairment | 527,214 | 515,258 | 524,312 |
Consumer Home Equity Line of Credit [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 240 | 261 | 261 |
Charge-offs | (1) | (1) | |
Recoveries | 1 | 15 | |
Provisions | 36 | 8 | (35) |
Balance at end of the period | 277 | 268 | 240 |
Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 277 | 268 | 240 |
Loans receivable: | |||
Ending balance-total | 28,641 | 30,092 | 28,891 |
Individually evaluated for impairment | 68 | 57 | 70 |
Collectively evaluated for impairment | 28,573 | 30,035 | 28,821 |
Consumer Other Financing Receivable [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 97 | 88 | 88 |
Charge-offs | (23) | (30) | (120) |
Recoveries | 8 | 9 | 45 |
Provisions | 30 | 22 | 84 |
Balance at end of the period | 112 | 89 | 97 |
Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 112 | 89 | 97 |
Loans receivable: | |||
Ending balance-total | 10,377 | 9,653 | 10,016 |
Individually evaluated for impairment | 5 | ||
Collectively evaluated for impairment | 10,377 | 9,648 | 10,016 |
Unallocated Financing Receivables [Member] | |||
Activity in the allowance for loan losses | |||
Balance at the beginning of the period | 783 | 646 | 646 |
Charge-offs | |||
Recoveries | |||
Provisions | (86) | 79 | 137 |
Balance at end of the period | 697 | 725 | 783 |
Allowance for loan losses | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment | 697 | 725 | 783 |
Loans receivable: | |||
Ending balance-total | |||
Individually evaluated for impairment | |||
Collectively evaluated for impairment |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |||
Balance, beginning of year | $ 4,109 | $ 5,937 | $ 5,937 |
New Loans | 55 | ||
Less loan repayments | 437 | 85 | |
Balance, end of year | 3,727 | 5,852 | 4,109 |
Loans considered impaired for which there is a related allowance for loan loss: | |||
Total loans considered impaired at year end | 3,374 | 4,633 | 3,997 |
Outstanding loan balance | 219 | 447 | 256 |
Related allowance | 5 | 14 | 6 |
Loans considered impaired and previously written down to fair value | 2,172 | 2,275 | |
Average impaired loans | 3,437 | 4,973 | 4,431 |
Amount of interest earned during period of impairment | $ 82 | $ 72 | $ 263 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
With no allowance recorded: | |||
Recorded Investment | $ 2,172 | $ 2,275 | |
With an allowance recorded: | |||
Recorded Investment | 219 | $ 447 | 256 |
Unpaid Principal Balance | 219 | 447 | 256 |
Related allowance | 5 | 14 | 6 |
Total: | |||
Recorded Investment | 3,374 | 4,633 | 3,997 |
Unpaid Principal Balance | 5,883 | 7,681 | 6,728 |
Average Recorded Investment | 3,437 | 4,973 | 4,431 |
Interest Income Recognized | 82 | 72 | 263 |
Commercial Financial and Agricultural Loans [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 400 | ||
Unpaid Principal Balance | 400 | ||
Average Recorded Investment | 600 | ||
Interest Income Recognized | 49 | ||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | 400 | ||
Unpaid Principal Balance | 400 | ||
Average Recorded Investment | 600 | ||
Interest Income Recognized | 49 | ||
Real Estate Construction Loans [Member] | |||
With no allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Real estate Mortgage-residential [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 340 | 409 | 392 |
Unpaid Principal Balance | 431 | 462 | 460 |
Average Recorded Investment | 339 | 413 | 439 |
Interest Income Recognized | 6 | 4 | 19 |
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | 340 | 409 | 392 |
Unpaid Principal Balance | 431 | 462 | 460 |
Average Recorded Investment | 339 | 413 | 439 |
Interest Income Recognized | 6 | 4 | 19 |
Real estate Mortgage-commercial [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 2,747 | 3,715 | 2,879 |
Unpaid Principal Balance | 5,161 | 6,708 | 5,539 |
Average Recorded Investment | 2,797 | 4,048 | 2,961 |
Interest Income Recognized | 72 | 61 | 170 |
With an allowance recorded: | |||
Recorded Investment | 219 | 447 | 256 |
Unpaid Principal Balance | 219 | 447 | 256 |
Related allowance | 5 | 14 | 6 |
Average Recorded Investment | 232 | 448 | 355 |
Interest Income Recognized | 3 | 6 | 23 |
Total: | |||
Recorded Investment | 2,966 | 4,162 | 3,135 |
Unpaid Principal Balance | 5,380 | 7,155 | 5,795 |
Average Recorded Investment | 3,029 | 4,496 | 3,316 |
Interest Income Recognized | 75 | 67 | 193 |
Consumer Home Equity Line of Credit [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 68 | 57 | 70 |
Unpaid Principal Balance | 72 | 59 | 73 |
Average Recorded Investment | 69 | 59 | 76 |
Interest Income Recognized | 1 | 1 | 2 |
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | 68 | 57 | 70 |
Unpaid Principal Balance | 72 | 59 | 73 |
Average Recorded Investment | 69 | 59 | 76 |
Interest Income Recognized | 1 | 1 | 2 |
Consumer Other Financing Receivable [Member] | |||
With no allowance recorded: | |||
Recorded Investment | 5 | ||
Unpaid Principal Balance | 5 | ||
Average Recorded Investment | 5 | ||
Interest Income Recognized | |||
With an allowance recorded: | |||
Recorded Investment | |||
Unpaid Principal Balance | |||
Related allowance | |||
Average Recorded Investment | |||
Interest Income Recognized | |||
Total: | |||
Recorded Investment | 5 | ||
Unpaid Principal Balance | 5 | ||
Average Recorded Investment | 5 | ||
Interest Income Recognized |
LOANS (Details 5)
LOANS (Details 5) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Loans | $ 749,529 | $ 737,028 | $ 718,420 |
Commercial Financial and Agricultural Loans [Member] | |||
Loans | 50,313 | 51,805 | 52,289 |
Real Estate Construction Loans [Member] | |||
Loans | 83,547 | 73,512 | 56,234 |
Real estate Mortgage-residential [Member] | |||
Loans | 46,471 | 45,357 | 50,732 |
Real estate Mortgage-commercial [Member] | |||
Loans | 530,180 | 527,447 | 519,420 |
Consumer Home Equity Line of Credit [Member] | |||
Loans | 28,641 | 28,891 | 30,092 |
Consumer Other Financing Receivable [Member] | |||
Loans | 10,377 | 10,016 | $ 9,653 |
Pass [Member] | |||
Loans | 741,113 | 727,402 | |
Pass [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 50,202 | 51,166 | |
Pass [Member] | Real Estate Construction Loans [Member] | |||
Loans | 83,547 | 73,512 | |
Pass [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 45,301 | 44,221 | |
Pass [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 524,525 | 521,072 | |
Pass [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 27,192 | 27,450 | |
Pass [Member] | Consumer Other Financing Receivable [Member] | |||
Loans | 10,346 | 9,981 | |
Special Mention [Member] | |||
Loans | 3,950 | 4,936 | |
Special Mention [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 111 | 239 | |
Special Mention [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Special Mention [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 285 | 509 | |
Special Mention [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 2,396 | 2,996 | |
Special Mention [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 1,127 | 1,157 | |
Special Mention [Member] | Consumer Other Financing Receivable [Member] | |||
Loans | 31 | 35 | |
Substandard [Member] | |||
Loans | 4,466 | 4,690 | |
Substandard [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | 400 | ||
Substandard [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Substandard [Member] | Real estate Mortgage-residential [Member] | |||
Loans | 885 | 627 | |
Substandard [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | 3,259 | 3,379 | |
Substandard [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | 322 | 284 | |
Substandard [Member] | Consumer Other Financing Receivable [Member] | |||
Loans | |||
Doubtful [Member] | |||
Loans | |||
Doubtful [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Loans | |||
Doubtful [Member] | Real Estate Construction Loans [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-residential [Member] | |||
Loans | |||
Doubtful [Member] | Real estate Mortgage-commercial [Member] | |||
Loans | |||
Doubtful [Member] | Consumer Home Equity Line of Credit [Member] | |||
Loans | |||
Doubtful [Member] | Consumer Other Financing Receivable [Member] | |||
Loans |
LOANS (Details 6)
LOANS (Details 6) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Operating Loss Carryforwards Acquired in Business Acquisitions | ||
Accretable yield, beginning of period | $ 123 | $ 153 |
Additions | ||
Accretion | (7) | (8) |
Reclassification of nonaccretable difference due to improvement in expected cash flows | ||
Other changes, net | ||
Accretable yield, end of period | $ 116 | $ 145 |
LOANS (Details 7)
LOANS (Details 7) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Total Past Due | $ 2,577 | $ 2,805 | |
Nonaccrual | 1,738 | 2,329 | |
Current | 746,952 | 734,223 | |
Loans | 749,529 | 737,028 | $ 718,420 |
Commercial Financial and Agricultural Loans [Member] | |||
Total Past Due | 57 | 499 | |
Nonaccrual | 400 | ||
Current | 50,256 | 51,306 | |
Loans | 50,313 | 51,805 | 52,289 |
Real Estate Construction Loans [Member] | |||
Total Past Due | 113 | ||
Nonaccrual | |||
Current | 83,547 | 73,399 | |
Loans | 83,547 | 73,512 | 56,234 |
Real estate Mortgage-residential [Member] | |||
Total Past Due | 689 | 543 | |
Nonaccrual | 340 | 392 | |
Current | 45,782 | 44,814 | |
Loans | 46,471 | 45,357 | 50,732 |
Real estate Mortgage-commercial [Member] | |||
Total Past Due | 1,624 | 1,506 | |
Nonaccrual | 1,330 | 1,467 | |
Current | 528,556 | 525,941 | |
Loans | 530,180 | 527,447 | 519,420 |
Consumer Home Equity Line of Credit [Member] | |||
Total Past Due | 138 | 81 | |
Nonaccrual | 68 | 70 | |
Current | 28,503 | 28,810 | |
Loans | 28,641 | 28,891 | 30,092 |
Consumer Other Financing Receivable [Member] | |||
Total Past Due | 69 | 63 | |
Nonaccrual | |||
Current | 10,308 | 9,953 | |
Loans | 10,377 | 10,016 | $ 9,653 |
30 to 59 Days Past Due [Member] | |||
Total Past Due | 598 | 345 | |
30 to 59 Days Past Due [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Total Past Due | 57 | ||
30 to 59 Days Past Due [Member] | Real Estate Construction Loans [Member] | |||
Total Past Due | 113 | ||
30 to 59 Days Past Due [Member] | Real estate Mortgage-residential [Member] | |||
Total Past Due | 181 | 151 | |
30 to 59 Days Past Due [Member] | Real estate Mortgage-commercial [Member] | |||
Total Past Due | 294 | 39 | |
30 to 59 Days Past Due [Member] | Consumer Home Equity Line of Credit [Member] | |||
Total Past Due | 2 | ||
30 to 59 Days Past Due [Member] | Consumer Other Financing Receivable [Member] | |||
Total Past Due | 66 | 40 | |
60 to 89 Days Past Due [Member] | |||
Total Past Due | 73 | 131 | |
60 to 89 Days Past Due [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Total Past Due | 99 | ||
60 to 89 Days Past Due [Member] | Real Estate Construction Loans [Member] | |||
Total Past Due | |||
60 to 89 Days Past Due [Member] | Real estate Mortgage-residential [Member] | |||
Total Past Due | |||
60 to 89 Days Past Due [Member] | Real estate Mortgage-commercial [Member] | |||
Total Past Due | |||
60 to 89 Days Past Due [Member] | Consumer Home Equity Line of Credit [Member] | |||
Total Past Due | 70 | 9 | |
60 to 89 Days Past Due [Member] | Consumer Other Financing Receivable [Member] | |||
Total Past Due | 3 | 23 | |
Equal to Greater than 90 Days Past Due [Member] | |||
Total Past Due | 168 | ||
Equal to Greater than 90 Days Past Due [Member] | Commercial Financial and Agricultural Loans [Member] | |||
Total Past Due | |||
Equal to Greater than 90 Days Past Due [Member] | Real Estate Construction Loans [Member] | |||
Total Past Due | |||
Equal to Greater than 90 Days Past Due [Member] | Real estate Mortgage-residential [Member] | |||
Total Past Due | 168 | ||
Equal to Greater than 90 Days Past Due [Member] | Real estate Mortgage-commercial [Member] | |||
Total Past Due | |||
Equal to Greater than 90 Days Past Due [Member] | Consumer Home Equity Line of Credit [Member] | |||
Total Past Due | |||
Equal to Greater than 90 Days Past Due [Member] | Consumer Other Financing Receivable [Member] | |||
Total Past Due |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Receivables [Abstract] | ||
Non-accrual loans | $ 1,738 | $ 2,329 |
Troubled debt restructurings | 1,600 | 1,700 |
Loans greater than ninety days delinquent and still accruing interest | 168 | |
Recorded investment in purchased impaired loans | $ 112 | $ 112 |
FAIR VALUE MEASUREMENT (Details
FAIR VALUE MEASUREMENT (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial Assets: | ||
Available-for-sale securities | $ 288,881 | $ 286,800 |
Other investments, at cost | 2,062 | 1,992 |
Financial liabilities: | ||
Non-interest bearing demand | 291,669 | 289,829 |
Interest bearing demand deposits and money market accounts | 426,332 | 423,256 |
Savings | 102,171 | 104,456 |
Time deposits | 166,473 | 170,660 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial Assets: | ||
Cash and short term investments | 49,376 | 47,692 |
Available-for-sale securities | 11,887 | 23,632 |
Other investments, at cost | ||
Loans held for sale | ||
Net loans receivable | ||
Accrued interest | 3,369 | 3,481 |
Financial liabilities: | ||
Non-interest bearing demand | ||
Interest bearing demand deposits and money market accounts | ||
Savings | ||
Time deposits | ||
Total deposits | ||
Federal Home Loan Bank Advances | ||
Short term borrowings | ||
Junior subordinated debentures | ||
Accrued interest payable | 1,001 | 1,033 |
Fair Value, Inputs, Level 2 [Member] | ||
Financial Assets: | ||
Cash and short term investments | ||
Available-for-sale securities | 275,345 | 261,361 |
Other investments, at cost | ||
Loans held for sale | 11,937 | 11,155 |
Net loans receivable | ||
Accrued interest | ||
Financial liabilities: | ||
Non-interest bearing demand | 291,669 | 289,829 |
Interest bearing demand deposits and money market accounts | 426,332 | 423,256 |
Savings | 102,171 | 104,456 |
Time deposits | 167,852 | 171,558 |
Total deposits | 986,645 | 989,099 |
Federal Home Loan Bank Advances | 211 | |
Short term borrowings | 46,041 | 33,296 |
Junior subordinated debentures | 12,166 | 13,161 |
Accrued interest payable | ||
Fair Value, Inputs, Level 3 [Member] | ||
Financial Assets: | ||
Cash and short term investments | ||
Available-for-sale securities | 1,649 | 1,807 |
Other investments, at cost | 2,062 | 1,992 |
Loans held for sale | ||
Net loans receivable | 717,881 | 728,745 |
Accrued interest | ||
Financial liabilities: | ||
Non-interest bearing demand | ||
Interest bearing demand deposits and money market accounts | ||
Savings | ||
Time deposits | ||
Total deposits | ||
Federal Home Loan Bank Advances | ||
Short term borrowings | ||
Junior subordinated debentures | ||
Accrued interest payable | ||
Carrying (Reported) Amount, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Cash and short term investments | 49,376 | 47,692 |
Available-for-sale securities | 288,881 | 286,800 |
Other investments, at cost | 2,062 | 1,992 |
Loans held for sale | 11,937 | 11,155 |
Net loans receivable | 741,835 | 730,401 |
Accrued interest | 3,369 | 3,481 |
Financial liabilities: | ||
Non-interest bearing demand | 291,669 | 289,829 |
Interest bearing demand deposits and money market accounts | 426,332 | 423,256 |
Savings | 102,171 | 104,456 |
Time deposits | 166,473 | 170,660 |
Total deposits | 986,645 | 988,201 |
Federal Home Loan Bank Advances | 211 | |
Short term borrowings | 46,041 | 33,296 |
Junior subordinated debentures | 14,964 | 14,964 |
Accrued interest payable | 1,001 | 1,033 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Financial Assets: | ||
Cash and short term investments | 49,376 | 47,692 |
Available-for-sale securities | 288,881 | 286,800 |
Other investments, at cost | 2,062 | 1,992 |
Loans held for sale | 11,937 | 11,155 |
Net loans receivable | 717,881 | 728,745 |
Accrued interest | 3,369 | 3,481 |
Financial liabilities: | ||
Non-interest bearing demand | 291,669 | 289,829 |
Interest bearing demand deposits and money market accounts | 426,332 | 423,256 |
Savings | 102,171 | 104,456 |
Time deposits | 167,852 | 171,558 |
Total deposits | 986,645 | 989,099 |
Federal Home Loan Bank Advances | 211 | |
Short term borrowings | 46,041 | 33,296 |
Junior subordinated debentures | 12,166 | 13,161 |
Accrued interest payable | $ 1,001 | $ 1,033 |
FAIR VALUE MEASUREMENT (Detai_2
FAIR VALUE MEASUREMENT (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | $ 288,881 | $ 286,800 |
Loans held for sale | 11,937 | 11,155 |
Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 288,881 | 286,800 |
US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 3,534 | 7,203 |
Government sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 1,015 | 1,001 |
Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 41,727 | 45,343 |
State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 61,756 | 49,648 |
Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 15 | 19 |
Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 288,881 | 286,800 |
Loans held for sale | 11,937 | 11,155 |
Total Available for sale securities and Loans held for Sale | 300,818 | 297,955 |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 3,534 | 7,203 |
Fair Value, Measurements, Recurring [Member] | Government sponsored enterprises [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 1,015 | 1,001 |
Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 180,830 | 183,586 |
Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 41,727 | 45,343 |
Fair Value, Measurements, Recurring [Member] | State and local government [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 61,756 | 49,648 |
Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 19 | 19 |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 11,887 | 23,632 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 11,891 | 23,632 |
Loans held for sale | ||
Total Available for sale securities and Loans held for Sale | 11,891 | 23,632 |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 18,435 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 11,882 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 5,188 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 9 | 9 |
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 275,345 | 261,361 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 275,341 | 261,361 |
Loans held for sale | 11,937 | 11,155 |
Total Available for sale securities and Loans held for Sale | 287,278 | 272,516 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 3,534 | 7,203 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Government sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 1,015 | 1,001 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 179,181 | 163,344 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Small Business Administration pools [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 41,727 | 45,343 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | State and local government [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 49,874 | 44,460 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Corporate and other securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 10 | 10 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 1,649 | 1,807 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | 1,649 | 1,807 |
Loans held for sale | ||
Total Available for sale securities and Loans held for Sale | 1,649 | 1,807 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Mortgage-backed securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities - available-for-sale | $ 1,649 | $ 1,807 |
FAIR VALUE MEASUREMENT (Detai_3
FAIR VALUE MEASUREMENT (Details 3) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | $ 3,374 | $ 3,997 | $ 4,633 |
Total other real estate owned | 1,481 | 1,410 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 3,369 | 3,991 | |
Total other real estate owned | 1,481 | 1,410 | |
Total | 4,850 | 5,401 | |
Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 3,369 | 3,991 | |
Total other real estate owned | 1,481 | 1,410 | |
Total | 4,850 | 5,401 | |
Commercial and Industrial Loans Receivable [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 400 | ||
Commercial and Industrial Loans Receivable [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 400 | ||
Real Estate Construction Loans [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 826 | 826 | |
Real Estate Construction Loans [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total other real estate owned | 826 | 826 | |
Real estate Mortgage-residential [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 340 | 392 | |
Total other real estate owned | 655 | 584 | |
Real estate Mortgage-residential [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 340 | 392 | |
Total other real estate owned | 655 | 584 | |
Real estate Mortgage-commercial [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 3,129 | 2,961 | |
Real estate Mortgage-commercial [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 2,961 | 3,129 | |
Consumer Home Equity Line of Credit [Member] | Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | 70 | 68 | |
Consumer Home Equity Line of Credit [Member] | Estimate of Fair Value, Fair Value Disclosure [Member] | Fair Value, Measurements, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Total impaired loans | $ 68 | $ 70 |
FAIR VALUE MEASUREMENT (Detai_4
FAIR VALUE MEASUREMENT (Details 4) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | |
OREO | $ 1,481 | $ 1,410 | |
Total impaired loans | 3,374 | 3,997 | $ 4,633 |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | |||
OREO | $ 1,481 | $ 1,410 | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 6.00% | 6.00% | |
Other Real Estate Owned [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Value Comparison Sales Other Estimates Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 16.00% | 16.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | |||
Total impaired loans | $ 3,369 | $ 3,991 | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Minimum [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 6.00% | 6.00% | |
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | Maximum [Member] | Appraisal Value Discounted Cash Flows Valuation Technique [Member] | Measurement Input, Discount Rate [Member] | |||
Rate (as a percent) | 16.00% | 16.00% |
DEPOSITS (Details)
DEPOSITS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure Deposits Details Abstract | ||
Non-interest bearing demand deposits | $ 291,669 | $ 289,829 |
NOW and money market accounts | 426,332 | 423,256 |
Savings | 102,171 | 104,456 |
Time deposits | 166,473 | 170,660 |
Total deposits | $ 986,645 | $ 988,201 |
DEPOSITS (Details 2)
DEPOSITS (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Disclosure Deposits Details 2Abstract | ||
Time deposits FDIC insurance limit of $250 thousand | $ 30,900 | $ 32,200 |
REPORTABLE SEGMENTS (Details)
REPORTABLE SEGMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Dividend and Interest Income | $ 10,710 | $ 10,374 | ||
Interest expense | 1,293 | 1,354 | ||
Net interest income | 9,417 | 9,020 | ||
Provision for loan losses | 1,075 | 105 | $ 139 | |
Noninterest income | 2,928 | 2,509 | ||
Noninterest expense | 9,038 | 8,323 | ||
Net income before taxes | 2,232 | 3,101 | ||
Income tax benefit | 438 | 606 | ||
Net income (loss) | 1,794 | 2,495 | ||
Total assets | 1,185,307 | 1,097,396 | 1,170,279 | $ 1,091,595 |
Commercial And Retail Banking [Member] | ||||
Dividend and Interest Income | 10,404 | 10,131 | ||
Interest expense | 1,125 | 1,156 | ||
Net interest income | 9,279 | 8,975 | ||
Provision for loan losses | 1,075 | 105 | ||
Noninterest income | 1,312 | 1,227 | ||
Noninterest expense | 7,495 | 7,024 | ||
Net income before taxes | 2,021 | 3,073 | ||
Income tax benefit | 497 | 685 | ||
Net income (loss) | 1,524 | 2,388 | ||
Total assets | 1,156,598 | 1,076,190 | 1,143,934 | 1,074,838 |
Mortgage Banking [Member] | ||||
Dividend and Interest Income | 300 | 237 | ||
Interest expense | ||||
Net interest income | 300 | 237 | ||
Provision for loan losses | ||||
Noninterest income | 982 | 844 | ||
Noninterest expense | 963 | 804 | ||
Net income before taxes | 319 | 277 | ||
Income tax benefit | ||||
Net income (loss) | 319 | 277 | ||
Total assets | 27,990 | 20,486 | 25,673 | 16,078 |
Investment Advisory And Non Deposit [Member] | ||||
Dividend and Interest Income | ||||
Interest expense | ||||
Net interest income | ||||
Provision for loan losses | ||||
Noninterest income | 634 | 438 | ||
Noninterest expense | 468 | 415 | ||
Net income before taxes | 166 | 23 | ||
Income tax benefit | ||||
Net income (loss) | 166 | 23 | ||
Total assets | 4 | 7 | 2 | 9 |
Corporate [Member] | ||||
Dividend and Interest Income | 1,068 | 1,017 | ||
Interest expense | 168 | 198 | ||
Net interest income | 900 | 819 | ||
Provision for loan losses | ||||
Noninterest income | ||||
Noninterest expense | 112 | 80 | ||
Net income before taxes | 788 | 739 | ||
Income tax benefit | (59) | (79) | ||
Net income (loss) | 847 | 818 | ||
Total assets | 132,987 | 130,121 | 132,890 | 129,992 |
Eliminations [Member] | ||||
Dividend and Interest Income | (1,062) | (1,011) | ||
Interest expense | ||||
Net interest income | (1,062) | (1,011) | ||
Provision for loan losses | ||||
Noninterest income | ||||
Noninterest expense | ||||
Net income before taxes | (1,062) | (1,011) | ||
Income tax benefit | ||||
Net income (loss) | (1,062) | (1,011) | ||
Total assets | $ (132,272) | $ (129,408) | $ (132,220) | $ (129,322) |
LEASES (Details)
LEASES (Details) $ in Thousands | Mar. 31, 2020USD ($) |
2020 | $ 220 |
2021 | 298 |
2022 | 303 |
2023 | 309 |
2024 | 282 |
Thereafter | 3,199 |
Total | 4,611 |
Lease Expense | |
2020 | 105 |
2021 | 133 |
2022 | 126 |
2023 | 118 |
2024 | 110 |
Thereafter | 789 |
Total | 1,381 |
Reduction | |
2020 | 115 |
2021 | 165 |
2022 | 177 |
2023 | 191 |
2024 | 172 |
Thereafter | 2,409 |
Total | $ 3,229 |
LEASES (Details Narrative)
LEASES (Details Narrative) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases | ||
Operating Lease paid | $ 73 | $ 49 |
Operating lease expense | 81 | 58 |
Operating Lease liability reduced | $ 37 | $ 17 |
Weighted Average Remaining Lease Term | 16 years 3 months 18 days | 18 years 11 months 1 day |
Weighted Average Discount Rate | 4.40% | 4.40% |