Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Sep. 30, 2020 | Nov. 06, 2020 | |
Cover [Abstract] | ||
Entity Registrant Name | Fauquier Bankshares, Inc. | |
Entity Central Index Key | 0001083643 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 3,794,725 | |
Document Fiscal Year Focus | 2020 | |
Trading Symbol | FBSS | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 30, 2020 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 000-25805 | |
Entity Tax Identification Number | 54-1288193 | |
Entity Address Line One | 10 Courthouse Square | |
Entity Address Town | Warrenton | |
Entity Address State | VA | |
Entity Address Postal Zip Code | 20186 | |
City Area Code | 540 | |
Local Phone Number | 347-2700 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common StockPar value $3.13 per share | |
Security Exchange Name | NASDAQ | |
Entity Incorporation, State or Country Code | VA | |
Document Quarterly Report | true | |
Document Transition Report | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 10,994 | $ 9,124 |
Interest-bearing deposits in other banks | 62,666 | 37,203 |
Federal funds sold | 13 | 14 |
Securities available for sale, at fair value | 84,590 | 79,783 |
Restricted investments | 1,835 | 2,016 |
Mortgage loans held for sale | 235 | 247 |
Loans | 638,103 | 550,226 |
Allowance for loan losses | (6,701) | (5,227) |
Loans, net | 631,402 | 544,999 |
Premises and equipment, net | 16,790 | 17,492 |
Accrued interest receivable | 2,635 | 1,984 |
Other real estate owned, net | 1,356 | 1,356 |
Bank-owned life insurance | 14,231 | 13,961 |
Other assets | 13,539 | 13,992 |
Total assets | 840,286 | 722,171 |
Deposits: | ||
Noninterest-bearing checking | 179,650 | 123,492 |
Interest-bearing: | ||
Checking | 252,627 | 242,531 |
Savings and money market accounts | 235,718 | 182,007 |
Time deposits | 71,839 | 74,125 |
Total interest-bearing | 560,184 | 498,663 |
Total deposits | 739,834 | 622,155 |
Federal Home Loan Bank advances | 12,629 | 16,695 |
Junior subordinated debt | 4,124 | 4,124 |
Other liabilities | 11,492 | 12,075 |
Total liabilities | 768,079 | 655,049 |
Shareholders’ Equity | ||
Common stock, par value $3.13, and additional paid-in capital; authorized: 8,000,000 shares; issued and outstanding: 3,794,725 and 3,783,724 shares including 19,843 and 20,352 unvested restricted shares, respectively | 16,152 | 15,964 |
Retained earnings | 52,885 | 49,787 |
Accumulated other comprehensive income, net | 3,170 | 1,371 |
Total shareholders’ equity | 72,207 | 67,122 |
Total liabilities and shareholders’ equity | $ 840,286 | $ 722,171 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Sep. 30, 2020 | Dec. 31, 2019 |
Shareholders’ Equity | ||
Common stock, par value (in dollars per share) | $ 3.13 | $ 3.13 |
Common stock, shares authorized (in shares) | 8,000,000 | 8,000,000 |
Common stock, shares issued (in shares) | 3,794,725 | 3,783,724 |
Common stock, shares outstanding (in shares) | 3,794,725 | 3,783,724 |
Common stock, unvested restricted shares (in shares) | 19,843 | 20,352 |
Consolidated Statements of Oper
Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Interest Income | ||||
Interest and fees on loans | $ 6,348 | $ 6,651 | $ 19,322 | $ 19,795 |
Interest and dividends on securities: | ||||
Taxable interest income | 338 | 355 | 1,081 | 1,089 |
Tax-exempt interest | 107 | 89 | 306 | 263 |
Dividends | 29 | 57 | 84 | 127 |
Interest on deposits in other banks | 19 | 210 | 113 | 547 |
Total interest income | 6,841 | 7,362 | 20,906 | 21,821 |
Interest Expense | ||||
Interest on deposits | 420 | 930 | 1,666 | 2,727 |
Interest on federal funds purchased | 14 | |||
Interest on Federal Home Loan Bank advances | 78 | 190 | 225 | 523 |
Interest on Junior subordinated debt | 49 | 51 | 148 | 149 |
Total interest expense | 547 | 1,171 | 2,039 | 3,413 |
Net interest income | 6,294 | 6,191 | 18,867 | 18,408 |
Provision for loan losses | 345 | 1,606 | 255 | |
Net interest income after provision for loan losses | 5,949 | 6,191 | 17,261 | 18,153 |
Noninterest Income | ||||
Brokerage fees | 127 | 115 | 393 | 333 |
Bank-owned life insurance | 90 | 92 | 270 | 275 |
Other income (loss) | (27) | 188 | (59) | 392 |
Gain on sale of securities available for sale | 79 | |||
Gain (loss) on sale of mortgage loans held for sale, net | 15 | (3) | 60 | 2 |
Total noninterest income | 1,478 | 1,610 | 4,036 | 4,487 |
Noninterest Expenses | ||||
Salaries and benefits | 3,076 | 3,035 | 8,463 | 8,968 |
Occupancy | 586 | 561 | 1,829 | 1,781 |
Furniture and equipment | 196 | 269 | 577 | 827 |
Marketing and business development | 114 | 129 | 329 | 487 |
Legal, audit and consulting | 301 | 270 | 875 | 801 |
Data processing | 338 | 353 | 1,074 | 1,031 |
Federal Deposit Insurance Corporation assessment | 95 | 260 | 187 | |
Merger related expenses | 43 | 43 | ||
Other operating expenses | 921 | 802 | 2,713 | 2,561 |
Total noninterest expenses | 5,670 | 5,419 | 16,163 | 16,643 |
Income before income taxes | 1,757 | 2,382 | 5,134 | 5,997 |
Income tax expense | 210 | 330 | 613 | 749 |
Net Income | $ 1,547 | $ 2,052 | $ 4,521 | $ 5,248 |
Earnings per share, basic | $ 0.41 | $ 0.54 | $ 1.19 | $ 1.39 |
Earnings per share, diluted | 0.41 | 0.54 | 1.19 | 1.38 |
Dividends per share | $ 0.125 | $ 0.12 | $ 0.375 | $ 0.36 |
Trust and Estate Fees [Member] | ||||
Noninterest Income | ||||
Total noninterest income | $ 681 | $ 442 | $ 1,641 | $ 1,285 |
Service Charges on Deposit Accounts [Member] | ||||
Noninterest Income | ||||
Total noninterest income | 259 | 382 | 831 | 1,142 |
Intercharge Fee Income, Net [Member] | ||||
Noninterest Income | ||||
Total noninterest income | $ 333 | $ 394 | $ 900 | $ 979 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income | $ 1,547 | $ 2,052 | $ 4,521 | $ 5,248 |
Other comprehensive income, net of tax: | ||||
Change in fair value of securities available for sale, net of tax, $9, $(100), $(571) and $(619), respectively | (34) | 374 | 2,147 | 2,328 |
Reclassification adjustment for gains on securities available for sale, net of tax, $0, $0, $0 and $17, respectively | (62) | |||
Change in fair value of interest rate swap, net of tax, $(11), $37, $93 and $98, respectively | 45 | (141) | (348) | (369) |
Total other comprehensive income, net of tax, $(2), $(63), $(478) and $(504), respectively | 11 | 233 | 1,799 | 1,897 |
Total comprehensive income | $ 1,558 | $ 2,285 | $ 6,320 | $ 7,145 |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Other comprehensive income (loss), net of tax: | ||||
Change in fair value of securities available for sale, tax | $ 9 | $ (100) | $ (571) | $ (619) |
Reclassification adjustment for gain on securities available for sale, tax | 0 | 0 | 0 | 17 |
Change in fair value of interest rate swap, tax | (11) | 37 | 93 | 98 |
Other comprehensive income (loss), tax | $ (2) | $ (63) | $ (478) | $ (504) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock and Additional Paid-In Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] |
Balance at Dec. 31, 2018 | $ 60,007 | $ 15,742 | $ 44,803 | $ (538) |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 5,248 | 0 | 5,248 | 0 |
Other comprehensive income, net of tax effect | 1,897 | 0 | 0 | 1,897 |
Cash dividends | (1,364) | 0 | (1,364) | 0 |
Amortization of unearned compensation, restricted stock awards | 114 | 114 | 0 | 0 |
Issuance of common stock - unvested shares | 0 | 0 | 0 | 0 |
Issuance of common stock - vested shares | 95 | 95 | 0 | 0 |
Repurchase of common stock | (21) | (21) | 0 | 0 |
Balance at Sep. 30, 2019 | 65,976 | 15,930 | 48,687 | 1,359 |
Balance at Jun. 30, 2019 | 64,106 | 15,890 | 47,090 | 1,126 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 2,052 | 0 | 2,052 | 0 |
Other comprehensive income, net of tax effect | 233 | 0 | 0 | 233 |
Cash dividends | (455) | 0 | (455) | 0 |
Amortization of unearned compensation, restricted stock awards | 40 | 40 | 0 | 0 |
Balance at Sep. 30, 2019 | 65,976 | 15,930 | 48,687 | 1,359 |
Balance at Dec. 31, 2019 | 67,122 | 15,964 | 49,787 | 1,371 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 4,521 | 0 | 4,521 | 0 |
Other comprehensive income, net of tax effect | 1,799 | 0 | 0 | 1,799 |
Cash dividends | (1,423) | 0 | (1,423) | 0 |
Amortization of unearned compensation, restricted stock awards | 104 | 104 | 0 | 0 |
Issuance of common stock - unvested shares | 0 | 0 | 0 | 0 |
Issuance of common stock - vested shares | 90 | 90 | 0 | 0 |
Issuance of common stock - performance-based restricted stock units | 18 | 18 | 0 | 0 |
Repurchase of common stock | (24) | (24) | 0 | 0 |
Balance at Sep. 30, 2020 | 72,207 | 16,152 | 52,885 | 3,170 |
Balance at Jun. 30, 2020 | 71,088 | 16,117 | 51,812 | 3,159 |
Increase (Decrease) in Stockholders' Equity | ||||
Net income | 1,547 | 0 | 1,547 | 0 |
Other comprehensive income, net of tax effect | 11 | 0 | 0 | 11 |
Cash dividends | (474) | 0 | (474) | 0 |
Amortization of unearned compensation, restricted stock awards | 35 | 35 | 0 | 0 |
Balance at Sep. 30, 2020 | $ 72,207 | $ 16,152 | $ 52,885 | $ 3,170 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Increase (Decrease) in Stockholders' Equity | ||
Other comprehensive income (loss), tax | $ (478) | $ (504) |
Cash dividends (in dollars per share) | $ 0.375 | $ 0.36 |
Issuance of common stock - unvested shares (in shares) | 7,889 | 5,884 |
Issuance of common stock - vested shares (in shares) | 4,293 | 4,149 |
Issuance of common stock - performance-based restricted stock units (in shares) | 826 | |
Repurchase of common stock (in shares) | 2,007 | 960 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Cash Flows from Operating Activities | |||||
Net income | $ 4,521 | $ 5,248 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Depreciation and amortization | 809 | 967 | |||
Provision for loan losses | $ 345 | 1,606 | 255 | $ 346 | |
(Gain) loss on interest rate swaps | (3) | 8 | |||
Gain on sales of securities available for sale | (79) | ||||
Amortization of security premiums, net | 377 | 330 | |||
Amortization of unearned compensation, net of forfeiture | 22 | 190 | |||
Issuance of vested restricted stock | 108 | 95 | |||
Bank-owned life insurance income | (90) | $ (92) | (270) | (275) | |
Originations of mortgage loans held for sale | (2,761) | (2,362) | |||
Proceeds from mortgage loans held for sale | 2,833 | 864 | |||
Gain on mortgage loans held for sale | (15) | 3 | (60) | (2) | |
Changes in assets and liabilities: | |||||
Increase in other assets | (678) | (4,998) | |||
Increase (decrease) in other liabilities | (993) | 4,916 | |||
Net cash provided by operating activities | 5,511 | 5,157 | |||
Cash Flows from Investing Activities | |||||
Proceeds from sales, maturities, calls and principal payments of securities available for sale | 10,500 | 19,934 | |||
Purchase of securities available for sale | (12,966) | (17,990) | |||
Purchase of premises and equipment | (107) | (500) | |||
(Purchase) redemption of restricted investments, net | 181 | (331) | |||
Loan originations, net | (87,953) | 4,270 | |||
Net cash provided by (used in) investing activities | (90,345) | 5,383 | |||
Cash Flows from Financing Activities | |||||
Increase (decrease) in noninterest-bearing checking, interest-bearing checking, savings and money market accounts | 119,965 | (29,926) | |||
Increase (decrease) in time deposits | (2,286) | 8,288 | |||
Increase (decrease) in Federal Home Loan Bank advances | (4,066) | 5,937 | |||
Cash dividends paid on common stock | (1,423) | (1,364) | |||
Repurchase of common stock | (24) | (21) | |||
Net cash provided by (used in) financing activities | 112,166 | (17,086) | |||
Increase (decrease) in cash and cash equivalents | 27,332 | (6,546) | |||
Cash and Cash Equivalents | |||||
Beginning | 46,341 | 67,110 | 67,110 | ||
Ending | $ 73,673 | $ 60,564 | 73,673 | 60,564 | $ 46,341 |
Cash payments for: | |||||
Interest | 2,121 | 3,159 | |||
Income taxes | 785 | 640 | |||
Supplemental Disclosures of Noncash Investing Activities | |||||
Unrealized gain on securities available for sale, net of tax | 2,147 | 2,266 | |||
Unrealized loss on interest rate swap, net of tax | $ (348) | $ (369) |
General
General | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
General | Note 1. The consolidated financial statements include the accounts of Fauquier Bankshares, Inc. (the “Company”) and its wholly-owned subsidiary, The Fauquier Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, Fauquier Bank Services, Inc. and Specialty Properties Acquisitions - VA, LLC. Specialty Properties Acquisitions - VA, LLC was formed with the sole purpose of holding foreclosed property. The consolidated financial statements do not include the accounts of Fauquier Statutory Trust II, a wholly-owned subsidiary of the Company. In consolidation, significant intercompany financial balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of September 30, 2020 and the results of operations for the three and nine months ended September 30, 2020 and 2019, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The notes included herein should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). The results of operations for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results expected for the full year or any other interim period. Due to the significant uncertainties related to the ultimate duration of the novel coronavirus (“COVID-19”) pandemic and measures taken in response thereto, it is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including that the credit quality of the Company’s loan portfolio may decline and loan defaults could increase. Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. No reclassifications were significant and there was no effect on net income. Business Combination On October 1, 2020, the Company and Virginia National Bankshares Corporation (“Virginia National”) announced a definitive agreement to combine in a strategic merger (the “Merger Agreement”) pursuant to which the Company will merge with and into Virginia National (the “Merger”). As a result of the Merger, the holders of shares of the Company's common stock will receive 0.6750 shares of Virginia National common stock for each share of the Company's common stock held immediately prior to the effective date of the Merger. The transaction is expected to be completed in the first quarter of 2021, subject to approval of both companies' shareholders, regulatory approvals and other customary closing conditions. Recent Accounting Pronouncements and Other Regulatory Statements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU Nos. 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. Changes under ASU No. 2016-13 and subsequent updates represent a fundamental shift from existing GAAP and may result in a material increase to the Company's accounting for credit losses on financial instruments. To prepare for implementation of the new standard the Company established a working group to evaluate the impact these changes will have on the Company’s financial statements and related disclosures. The Company also contracted with a third-party for credit modeling in accordance with ASU No. 2016-13. The Company has focused on model validations, the development of processes and related controls, and the evaluation of parallel runs. The Company has not yet determined an estimate of the effect of these changes. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (“SAB”) 119. SAB 119 updated portions of the SEC’s interpretative guidance to align with FASB Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses.” The SAB covers topics including (i) measuring current expected credit losses; (ii) development, governance, and documentation of a systematic methodology; (iii) documenting the results of a systematic methodology; and (iv) validating a systematic methodology. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 modified the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. Certain disclosure requirements in Topic 820 were also removed or modified. ASU No. 2018-13 was effective for the Company on January 1, 2020. The Company’s adoption of ASU No. 2018-13 has not had a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements were deleted while the following disclosure requirements were added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company does not expect the adoption of ASU No. 2018-14 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” This ASU is expected to reduce the cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU No. 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” This ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU No. 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarified that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU No. 2020-01 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. Th is ASU also provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter- Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to evaluat e the impact of the reference rate reform on the Company’s consolidated financial statements. On June 28, 2018, the SEC adopted amendments to the definition of “smaller reporting company” that were effective on September 10, 2018. Under the amended definition, generally, a company qualifies as a “smaller reporting company” if (i) it has public float of less than $250 million or (ii) it has less than $100 million in annual revenues and (a) no public float or (b) public float of less than $700 million. Because of the Company’s public float being less than $250 million as of the measurement date in 2019, the Company is considered a smaller reporting company with respect to its SEC filings. On March 12, 2020, the SEC finalized amendments to its definitions of “accelerated filer” and “large accelerated filer.” The amendments increase the threshold criteria for meeting these filer classifications and are effective on April 27, 2020. Any changes in filer status are to be applied beginning with the filer’s first annual report filed with the SEC subsequent to the effective date. For the Company, this will be its annual report on Form 10-K with respect to the year ending December 31, 2020. Pursuant to Section 404(b) of the Sarbanes-Oxley Act, the classifications of “accelerated filer” and “large accelerated filer” require a public company to obtain an external auditor attestation concerning the effectiveness of a company’s internal control over financial reporting (“ICFR”) and include the opinion on ICFR in its annual report on Form 10-K. The Company has complied with such requirements during the years it was considered an accelerated filer. The SEC’s March 2020 definition amendments exclude from the accelerated filer and large accelerated filer definitions an issuer that (i) is eligible to be a smaller reporting company and (ii) had annual revenues of less than $100 million in the most recent fiscal year. Such entity can now be considered a “non-accelerated filer.” With respect to the 2020 fiscal year, the Company expects to continue to be a smaller reporting company and no longer be considered an accelerated filer. This would mean the Company would not be required to obtain the external auditor attestation of its ICFR. If the Company’s annual revenues exceed $100 million, its category may change back to that of an accelerated filer. Non-accelerated filers have additional time to file quarterly and annual financial statements. In March 2020 (revised in April 2020), various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, “the agencies”), issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. See Note 3 of the consolidated financial statements for additional disclosure of TDRs as of September 30, 2020. In August 2020, the FASB issued ASU No. 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is not permitted. ASU No. 2020-08 states that a ll entities should apply the amendments in this ASU on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. |
Securities
Securities | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Securities | Note 2. The amortized cost and fair value of securities available for sale, with unrealized gains and losses follows: September 30, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Obligations of U.S. Government corporations and agencies $ 60,791 $ 3,040 $ (16 ) $ 63,815 Obligations of states and political subdivisions 19,444 1,401 (70 ) 20,775 $ 80,235 $ 4,441 $ (86 ) $ 84,590 December 31, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Obligations of U.S. Government corporations and agencies $ 63,090 $ 937 $ (86 ) $ 63,941 Obligations of states and political subdivisions 15,054 802 (14 ) 15,842 $ 78,144 $ 1,739 $ (100 ) $ 79,783 The amortized cost and fair value of securities available for sale, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. September 30, 2020 (In thousands) Amortized Cost Fair Value Due in one year or less $ 1,055 $ 1,065 Due after one year through five years 16,204 17,221 Due after five years through ten years 10,396 11,032 Due after ten years 52,580 55,272 $ 80,235 $ 84,590 During the nine months ended September 30, 2020 and 2019, securities purchased were $13.0 million The following table shows the Company’s securities with gross unrealized losses, by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2020 and December 31, 2019. (In thousands) Less than 12 Months 12 Months or More Total September 30, 2020 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Obligations of U.S. Government corporations and agencies $ 6,097 $ (16 ) $ - $ - $ 6,097 $ (16 ) Obligations of states and political subdivisions 4,081 (70 ) - - 4,081 (70 ) Total temporary impaired securities $ 10,178 $ (86 ) $ - $ - $ 10,178 $ (86 ) (In thousands) Less than 12 Months 12 Months or More Total December 31, 2019 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Obligations of U.S. Government corporations and agencies $ 11,460 $ (42 ) $ 5,651 $ (44 ) $ 17,111 $ (86 ) Obligations of states and political subdivisions 2,049 (14 ) - - 2,049 (14 ) Total temporary impaired securities $ 13,509 $ (56 ) $ 5,651 $ (44 ) $ 19,160 $ (100 ) There were 12 debt securities totaling $10.1 million of aggregate fair value considered temporarily impaired at September 30, 2020. The primary cause of the temporary impairments in the Company’s investments in debt securities was fluctuations in interest rates. The Company concluded that no other-than-temporary impairment existed in its securities portfolio at September 30, 2020, and no other-than-temporary impairment loss has been recognized in net income, based primarily on the fact that changes in fair value were caused primarily by fluctuations in interest rates, there were no securities with unrealized losses that were significant relative to their carrying amounts, no securities have been in an unrealized loss position continuously for more than 12 months, securities with unrealized losses had generally high credit quality, the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments. The carrying value of securities pledged to secure deposits and for other purposes was $16.7 |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Loans and Allowance for Loan Losses | Note 3. The Company’s allowance for loan losses has three basic components: specific, general, and unallocated. The specific component is used to individually allocate an allowance for larger balance, non-homogeneous loans identified as impaired. The general component is used to estimate the loss on pools of smaller balance, homogeneous loans, including 1-4 family mortgage loans and other consumer loans. The general component is also used for the remaining pool of larger balance, non-homogeneous loans, not identified as impaired. The unallocated component reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. On March 27, 2020, the Coronavirus Aid, Relief, and Economic Security Act (the “CARES Act”) was enacted to, among other provisions, provide emergency assistance for individuals, families and businesses affected by COVID-19. A provision in the CARES Act included the creation of the Paycheck Protection Program (“PPP”) through the Small Business Administration (“SBA”). Loans provided by the Bank through the PPP may be forgiven based on the borrowers’ compliance with the terms of the program. The SBA provides a 100% guaranty to the lender of principal and interest, unless the lender violates an obligation under the agreement. As loan losses are expected to be immaterial, if any at all, due to the SBA guaranty, there is no provision allocated for PPP loans within the allowance for loan loss calculation. The Commercial and Industrial loan portfolio segment in the tables below include PPP loans that totaled $ million at September 30, 2020 . There were no loans that were forgiven at September 30, 2020 . The following tables present the total allowance for loan losses by portfolio segment for the periods presented. September 30, 2020 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Unallocated Total Allowance for Loan Losses Beginning balance, December 31, 2019 $ 296 $ 1,788 $ 652 $ 154 $ 65 $ 1,596 $ 326 $ 350 $ 5,227 Charge-offs (148 ) - - (21 ) (8 ) - - - (177 ) Recoveries 11 14 - 20 - - - - 45 Provision (recovery) 699 361 294 (18 ) 31 263 (24 ) - 1,606 Ending balance, September 30, 2020 $ 858 $ 2,163 $ 946 $ 135 $ 88 $ 1,859 $ 302 $ 350 $ 6,701 Ending balances individually evaluated for impairment $ 20 $ 60 $ - $ - $ - $ - $ - $ - $ 80 Ending balances collectively evaluated for impairment $ 838 $ 2,103 $ 946 $ 135 $ 88 $ 1,859 $ 302 $ 350 $ 6,621 Loans Individually evaluated for impairment $ 509 $ 8,369 $ - $ - $ - $ 377 $ - $ 9,255 Collectively evaluated for impairment 88,473 191,404 72,465 6,264 7,333 232,147 30,762 628,848 Ending balance, September 30, 2020 $ 88,982 $ 199,773 $ 72,465 $ 6,264 $ 7,333 $ 232,524 $ 30,762 $ 638,103 September 30, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Unallocated Total Allowance for Loan Losses Beginning balance, December 31, 2018 $ 483 $ 1,738 $ 635 $ 145 $ 68 $ 1,311 $ 446 $ 350 $ 5,176 Charge-offs (93 ) - - (24 ) (12 ) - - - (129 ) Recoveries 2 77 - 14 - - - - 93 Provision (recovery) 162 (34 ) 15 10 9 137 (44 ) - 255 Ending balance, September 30, 2019 $ 554 $ 1,781 $ 650 $ 145 $ 65 $ 1,448 $ 402 $ 350 $ 5,395 December 31, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Unallocated Total Allowance for Loan Losses Beginning balance, December 31, 2018 $ 483 $ 1,738 $ 635 $ 145 $ 68 $ 1,311 $ 446 $ 350 $ 5,176 Charge-offs (328 ) - - (50 ) (13 ) - - - (391 ) Recoveries 2 80 - 14 - - - - 96 Provision (recovery) 139 (30 ) 17 45 10 285 (120 ) - 346 Ending balance, December 31, 2019 $ 296 $ 1,788 $ 652 $ 154 $ 65 $ 1,596 $ 326 $ 350 $ 5,227 Ending balances individually evaluated for impairment $ - $ 229 $ - $ - $ - $ - $ - $ - $ 229 Ending balances collectively evaluated for impairment $ 296 $ 1,559 $ 652 $ 154 $ 65 $ 1,596 $ 326 $ 350 $ 4,998 Loans Individually evaluated for impairment $ 187 $ 2,847 $ 233 $ - $ - $ 379 $ - $ 3,646 Collectively evaluated for impairment 27,217 179,051 64,998 5,958 8,151 224,937 36,268 546,580 Ending balance, December 31, 2019 $ 27,404 $ 181,898 $ 65,231 $ 5,958 $ 8,151 $ 225,316 $ 36,268 $ 550,226 Loans by credit quality indicators were as follows at the dates presented: September 30, 2020 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Total Grade: Pass $ 88,139 $ 188,682 $ 70,110 $ 6,261 $ 7,333 $ 225,260 $ 28,785 $ 614,570 Special mention 212 9,291 2,289 3 - 321 127 12,243 Substandard 631 1,800 66 - - 6,943 1,850 11,290 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 88,982 $ 199,773 $ 72,465 $ 6,264 $ 7,333 $ 232,524 $ 30,762 $ 638,103 December 31, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Total Grade: Pass $ 26,555 $ 175,063 $ 62,231 $ 5,955 $ 8,151 $ 218,686 $ 34,218 $ 530,859 Special mention 422 3,487 2,594 3 - 336 127 6,969 Substandard 427 3,348 406 - - 6,294 1,923 12,398 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 27,404 $ 181,898 $ 65,231 $ 5,958 $ 8,151 $ 225,316 $ 36,268 $ 550,226 The past due status of loans at the dates presented were: September 30, 2020 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ Days Past Due and Accruing Nonaccruals Commercial and industrial $ 11 $ 43 $ 640 $ 694 $ 88,288 $ 88,982 $ 131 $ 509 Commercial real estate - - 357 357 199,416 199,773 - 357 Construction and land 318 - - 318 72,147 72,465 - - Consumer 24 - 7 31 6,233 6,264 7 - Student 311 265 509 1,085 6,248 7,333 509 - Residential real estate 708 383 379 1,470 231,054 232,524 - 379 Home equity lines of credit 129 - - 129 30,633 30,762 - - Total $ 1,501 $ 691 $ 1,892 $ 4,084 $ 634,019 $ 638,103 $ 647 $ 1,245 December 31, 2019 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ Days Past Due and Accruing Nonaccruals Commercial and industrial $ 330 $ - $ 34 $ 364 $ 27,040 $ 27,404 $ 34 $ - Commercial real estate - - 989 989 180,909 181,898 - 989 Construction and land 5,472 - - 5,472 59,759 65,231 - - Consumer 11 1 - 12 5,946 5,958 - - Student 345 220 1,204 1,769 6,382 8,151 1,205 - Residential real estate 739 109 397 1,245 224,071 225,316 397 - Home equity lines of credit 389 - - 389 35,879 36,268 - - Total $ 7,286 $ 330 $ 2,624 $ 10,240 $ 539,986 $ 550,226 $ 1,636 $ 989 The following table presents information related to impaired loans, by portfolio segment, at the dates presented. September 30, 2020 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no specific allowance recorded: Commercial real estate $ 7,578 $ 7,578 $ - $ 7,938 $ 242 Residential real estate 377 377 - 378 4 With an allowance recorded: Commercial and industrial $ 509 $ 509 $ 20 $ 509 $ 8 Commercial real estate 791 791 60 801 28 Total: Commercial and industrial $ 509 $ 509 $ 20 $ 509 $ 8 Commercial real estate 8,369 8,369 60 8,739 270 Residential real estate 377 377 - 378 4 Total $ 9,255 $ 9,255 $ 80 $ 9,626 $ 282 December 31, 2019 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no specific allowance recorded: Commercial and industrial $ 187 $ 187 $ - $ 287 $ 13 Commercial real estate 1,048 1,048 - 1,213 61 Construction and land 233 233 - 494 25 Residential real estate 379 379 - 384 16 With an allowance recorded: Commercial real estate 1,799 1,813 229 1,806 38 Total: Commercial and industrial $ 187 $ 187 $ - $ 287 $ 13 Commercial real estate 2,847 2,861 229 3,019 99 Construction and land 233 233 - 494 25 Residential real estate 379 379 - 384 16 Total $ 3,646 $ 3,660 $ 229 $ 4,184 $ 153 TDRs are those loans for which a concession has been granted to a borrower experiencing financial difficulties. TDRs are identified at the point when the borrower enters into a modification agreement. The following table summarizes a modification that was classified as a TDR during the nine months ended September 30, 2020. There were no loan modifications that were classified as TDRs during the three months ended September 30, 2020 or during the three and nine months ended September 30, 2019. (Dollars in thousands) Nine Months Ended September 30, 2020 Class of Loan Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial real estate 1 $ 6,221 $ 6,221 TDRs are considered impaired loans and are individually evaluated for impairment in the determination of the allowance for loan losses. TDR payment defaults occur when, within 12 months of the original TDR modification, either a full or partial charge-off occurs or the TDR becomes 90 days or more past due. There were no TDR defaults during the three and nine months ended September 30, 2020 and 2019. At September 30, 2020, there were five loans totaling $8.4 million that have been identified as TDRs , which were current and performing in accordance with the modified terms. At December 31, 2019 , there were five loans in the portfolio, totaling $2.5 million, that were identified as TDRs, which were current and performing in accordance with the modified terms. At In response to COVID-19 and under the provisions of the CARES Act, the Company established a short-term loan modification program, allowing the deferral of scheduled payments for a 90-day period beginning in April 2020. Modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief were not considered TDRs. Borrowers who were considered current were ones whose loans were less than 30 days past due on their contractual payments at the time the modification was entered. The Company modified 194 loans totaling $92.8 million under this initial payment deferral program. As of September 30, 2020, 94% of these deferments have ended and have returned to their normal payment schedules, while subsequent deferments totaling $5.5 million have been granted to 7 borrowers, consisting of 2 commercial and industrial loans, 1 commercial real estate loan, 1 construction and land loan, and 3 residential real estate loans. These additional deferrals remained within the CARES Act and the March 2020 interagency guidance and were not considered TDRs. |
Junior Subordinated Debt
Junior Subordinated Debt | 9 Months Ended |
Sep. 30, 2020 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debt | Note 4. On September 21, 2006, the Company’s wholly-owned Connecticut statutory business trust, Fauquier Statutory Trust II (“Trust II”), privately issued $4.0 million face amount of the trust’s Floating Rate Capital Securities in a pooled capital securities offering. Simultaneously, Trust II used the proceeds of that sale to purchase $4.0 million principal amount of the Company’s Floating Rate Junior Subordinated Deferrable Interest Debentures due 2036. The interest rate on the capital security resets every three months at 1.70% above the then current three-month |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Note 5. The Company uses interest rate swaps to reduce interest rate risk and to manage net interest income. Interest differentials paid or received under the swap agreements are reflected as adjustments to interest income. These interest rate swap agreements include both cash flow and fair value hedge derivative instruments that qualify for hedge accounting. The notional amounts of the interest rate swaps are not exchanged and do not represent exposure to credit loss. In the event of default by a counter party, the risk in these transactions is the cost of replacing the agreements at current market rates. The Company entered into an interest rate swap agreement on July 1, 2010 to manage the interest rate exposure on its Junior Subordinated Debt due 2036. By entering into this agreement, the Company converted a floating rate liability into a fixed rate liability through the maturity date of September 15, 2020. Under the terms of the agreement, the Company received interest quarterly at the rate equivalent to the three-month 3.21% The Company entered into two swap agreements to manage the interest rate risk related to two commercial loans on February 11, 2015 and April 7, 2015. The agreements allow the Company to convert fixed rate assets to floating rate assets through 2022 and 2025. The Company receives interest monthly at the rate equivalent to one-month $25,000 for the nine months ended September 30, 2019 . These swaps are designated as fair value hedges and changes in fair value are recorded in current earnings. On July 28, 2020, one of these swap agreements with a notional/contract amount of $1.2 million was terminated resulting in a termination fee of $89,200 . Cash collateral held at other banks for these swaps was $1.1 million and $730,000 at September 30, 2020 and December 31, 2019, respectively. Collateral is dependent on the market valuation of the underlying hedges. The following table summarizes the Company’s derivative instruments as of September 30, 2020 and December 31, 2019: (In thousands) September 30, 2020 Derivatives designated as hedging instruments Notional/Contract Amount Fair Value Fair Value Balance Sheet Location Expiration Date Interest rate swap - cash flow $ 4,000 $ (541 ) Other Liabilities 6/15/2031 Interest rate swap - fair value 4,112 (93 ) Other Liabilities 2/12/2022 (In thousands) December 31, 2019 Derivatives designated as hedging instruments Notional/Contract Amount Fair Value Fair Value Balance Sheet Location Expiration Date Interest rate swap - cash flow $ 4,000 $ (41 ) Other Liabilities 9/15/2020 Interest rate forward swap - cash flow 4,000 (59 ) Other Liabilities 6/15/2031 Interest rate swap - fair value 1,167 (17 ) Other Liabilities 4/9/2025 Interest rate swap - fair value 4,230 (23 ) Other Liabilities 2/12/2022 |
Earnings Per Share
Earnings Per Share | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Note 6. The components of the Company’s earnings per share calculations are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic earnings per share 3,794,725 $ 0.41 3,784,934 $ 0.54 3,792,700 $ 1.19 3,782,943 $ 1.39 Effect of dilutive stock awards 6,554 5,912 6,544 8,320 Diluted earnings per share 3,801,279 $ 0.41 3,790,846 $ 0.54 3,799,244 $ 1.19 3,791,263 $ 1.38 Unvested restricted shares have voting rights and receive nonforfeitable dividends during the vesting period; therefore, they are included in calculating basic earnings per share. The portion of unvested performance-based restricted stock units that are expected to vest, but have not yet been awarded, are included in the calculation of diluted earnings per share. Performance-based restricted stock units are expected to vest prior to the completion of the Merger. |
Share-based Compensation
Share-based Compensation | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-based Compensation | Note 7. Stock Incentive Plan On May 21, 2019, the shareholders of the Company approved the Fauquier Bankshares, Inc. Amended and Restated Stock Incentive Plan (the “Plan”). The P lan supers eded the Company’s stock incentive plan that was approved by shareholders in 2009. Under the Plan, awards of options, restricted stock, and other stock-based awards may be granted to employees, directors or consultants of the Company or any affiliate. The effective date of the Plan wa s May 21, 2019 . The P lan has a termination date of May 21, 2029. The Company’s Board of Directors may terminate, suspend or modify the Plan within certain restrictions. The Plan authorizes for issuance 350,000 shares of the Company’s common stock. Restricted Shares Restricted shares are accounted for using the fair market value of the Company’s common stock on the date on which these shares were awarded. The restricted shares issued to certain executive officers are subject to a vesting period, whereby the restrictions on the shares lapse on the third anniversary of the date the shares were awarded. Compensation expense for these shares is recognized over the three-year A summary of the status of the Company’s unvested restricted shares granted under the Plan is presented below: September 30, 2020 September 30, 2019 Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Unvested shares, beginning 20,352 $ 20.20 22,569 $ 17.98 Granted 12,182 20.95 12,058 21.69 Vested (10,684 ) 19.14 (10,553 ) 17.84 Forfeited or surrendered (2,007 ) 19.21 (440 ) 14.98 Unvested shares, ending 19,843 $ 21.33 23,634 $ 20.10 Performance-based Restricted Stock Units The Company grants performance-based restricted stock units to certain executive officers. Performance-based restricted stock units are accounted for using the fair market value of the Company’s common stock on the date awarded, and adjusted for subsequent changes in the market value. Performance-based restricted stock units are subject to a vesting period, whereby the restrictions on the rights lapse on the third anniversary of the date the units were awarded. Until vesting, the shares underlying the units are not issued and are not included in shares outstanding. A summary of the status of the Company’s unvested performance-based restricted stock units is presented below: September 30, 2020 September 30, 2019 Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Unvested shares, beginning 30,012 $ 18.90 22,103 $ 17.90 Granted 7,889 20.95 7,909 21.69 Vested (826 ) 19.74 - - Forfeited (11,701 ) 16.92 - - Unvested shares, ending 25,374 $ 20.43 30,012 $ 18.98 |
Employee Benefit Plans
Employee Benefit Plans | 9 Months Ended |
Sep. 30, 2020 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | Note 8. The Company has supplemental executive retirement plans (“SERP”) for certain executives in which the contributions are solely funded by the Company. Benefits are to be paid in monthly installments following retirement or death. The SERP liability was $2.9 The Company has a defined contribution retirement plan under Internal Revenue Code of 1986 Section 401(k) covering all employees who are at least 18 years of age and worked more than 20 hours per week. Under the plan, a participant may contribute an amount up to 100% of their covered compensation for the year, not to exceed the dollar limit set by law (Code Section 402(g)). The Company will make an annual matching contribution equal to 100% on the first 6% of compensation deferred, for a maximum match of 6% of compensation. The Company makes an additional safe harbor contribution equal to 3% The Company maintains a Director Deferred Compensation Plan (“Deferred Compensation Plan”). This plan provides that any nonemployee director of the Company may elect to defer receipt of all or any portion of his or her compensation as a director. A participating director may elect to have amounts held in a deferred cash account, which is credited on a quarterly basis with interest equal to the highest rate offered by the Bank at the end of the preceding quarter. Alternatively, a participant may elect to have a deferred stock account in which deferred amounts are treated as if invested in the Company’s common stock at the fair market value on the date of deferral. The value of a stock account will change based upon the fair market value of an equivalent number of shares of common stock. In addition, the deferred amounts deemed invested in common stock will be credited with dividends on an equivalent number of shares. Amounts considered invested in the Company’s common stock are paid, at the election of the director, either in cash or in whole shares of the common stock and cash-in-lieu of fractional shares. Directors may elect to receive amounts contributed to their respective accounts in one or up to five installments. There were no directors participating in the Deferred Compensation Plan during the three and nine months ended September 30, 2020 and 2019. The Company has a nonqualified deferred compensation program for a former key employee’s retirement, in which the contribution expense is funded solely by the Company. The retirement benefit to be provided is variable based upon the performance of underlying life insurance policy assets. Deferred compensation expense for the three months ended September 30, 2020 and 2019 was $6,000 and $20,000, respectively, and $21,000 and $57,000 for the nine months ended September 30, 2020 and 2019, respectively. Concurrent with the establishment of the deferred compensation program, the Company purchased life insurance policies on this employee with the Company named as owner and beneficiary. These life insurance policies are intended to be utilized as a source of funding the deferred compensation program. Income on these life insurance policies was $7,000 for each of the three months ended September 30, 2020 and 2019, respectively, and $21,000 for each of the nine months ended September 30, 2020 and 2019, respectively. The Company has recorded on its consolidated balance sheets $1.4 |
Fair Value Measurement
Fair Value Measurement | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | Note 9. GAAP requires the Company to record fair value adjustments to certain assets and liabilities. The fair value of certain assets and liabilities is an exit price, representing the amount that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market in an orderly transaction between market participants as of the measurement date. GAAP requires that valuation techniques maximize the use of observable inputs and minimize the use of unobservable inputs. GAAP also establishes a fair value hierarchy which prioritizes the valuation inputs into three broad levels. Based on the underlying inputs, each fair value measurement in its entirety is reported in one of the three levels. These levels are: Level 1: Inputs are defined as quoted prices (unadjusted) in active markets for identical assets or liabilities. Level 2: Inputs are defined as inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. Level 3: Inputs are defined as unobservable inputs for the asset or liability. The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the consolidated financial statements: Securities available for sale: Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data (Level 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3). The Company’s investment portfolio is primarily valued using fair value measurements that are considered to be Level 2. The Company has contracted with an independent pricing service that uses Intercontinental Exchange (“ICE”) as the primary source for valuation. ICE utilizes evaluated pricing models that vary by asset class and include available trade, bid, and other market information. Generally, the methodology includes broker quotes, proprietary models, vast descriptive terms and conditions databases, as well as extensive quality control programs. Interest rate swaps: The Company recognizes interest rate swaps at fair value and classifies as Level 2. The Company has contracted with a third-party to provide valuations for interest rate swaps using standard valuation techniques. The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements (In thousands) Balance Level 1 Level 2 Level 3 Assets at September 30, 2020: Available for sale securities: Obligations of U.S. Government corporations and agencies $ 63,815 $ - $ 63,815 $ - Obligations of states and political subdivisions 20,775 - 20,775 - Total available for sale securities 84,590 - 84,590 - Mutual funds 419 419 - - Total $ 85,009 $ 419 $ 84,590 $ - Liabilities at September 30, 2020: Interest rate swaps $ 634 $ - $ 634 $ - Total $ 634 $ - $ 634 $ - Assets at December 31, 2019: Available for sale securities: Obligations of U.S. Government corporations and agencies $ 63,941 $ - $ 63,941 $ - Obligations of states and political subdivisions 15,842 - 15,842 - Total available for sale securities 79,783 - 79,783 - Mutual funds 403 403 - - Total $ 80,186 $ 403 $ 79,783 $ - Liabilities at December 31, 2019: Interest rate swaps 140 $ - $ 140 $ - Total $ 140 $ - $ 140 $ - The Company may be required, from time to time, to measure and recognize certain assets at fair value on a nonrecurring basis in accordance with GAAP. The following describes the valuation techniques and inputs used by the Company in determining the fair value of certain assets recorded at fair value on a nonrecurring basis in the consolidated financial statements. Mortgage Loans Held for Sale: Mortgage loans held for sale are carried at lower of cost or market value. These loans currently consist of 1-4 family residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). No nonrecurring fair value adjustments were recorded on mortgage loans held for sale during the three and nine months ended September 30, 2020 and 2019. Net gains and losses on the sale of loans are recorded as a component of noninterest income on the consolidated statements of operations. Impaired Loans: A loan is designated as impaired when, in the judgment of management based on current information and events, it is probable that all amounts due according to the contractual terms of the loan agreement will not be collected. The measurement of loss associated with impaired loans can be based on either the observable market price of the loans or the fair value of the collateral securing the loans, or the present value of the cash flows. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal of one year or less, conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is in the process of construction or if an appraisal of the real estate property is more than one-year old and not solely based on observable market comparables or management determines the fair value of the collateral is further impaired below the appraised value, then the fair value is considered Level 3. The value of business equipment is based upon an outside appraisal of one-year Other Real Estate Owned: Other real estate owned is measured at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral, or management’s estimation of the value of the collateral. The Company considers other real estate owned as Level 3. The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019. September 30, 2020 (In thousands) Balance Level 1 Level 2 Level 3 Assets: Mortgage loans held for sale $ 235 $ - $ 235 $ - Impaired loans, net 1,220 - - 1,220 Other real estate owned, net 1,356 - - 1,356 December 31, 2019 (In thousands) Balance Level 1 Level 2 Level 3 Assets: Mortgage loans held for sale $ 247 $ - $ 247 $ - Impaired loans, net 1,570 - - 1,570 Other real estate owned, net 1,356 - - 1,356 The following table displays quantitative information about Level 3 fair value measurements at September 30, 2020 and December 31, 2019. September 30, 2020 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Weighted Average Discount Impaired loans, net $ 1,220 Appraised values Age of appraisal, current market conditions, experience within local market 5 % Other real estate owned, net 1,356 Appraised values Age of appraisal, current market conditions and selling costs 18 % Total $ 2,576 December 31, 2019 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Weighted Average Discount Impaired loans, net $ 1,570 Appraised values Age of appraisal, current market conditions, experience within local market 13 % Other real estate owned, net 1,356 Appraised values Age of appraisal, current market conditions and selling costs 18 % Total $ 2,926 ASC 825, “Financial Instruments”, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. Additionally, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The estimated fair values and related carrying amounts of the Company’s financial instruments are as follows: September 30, 2020 (In thousands) Carrying Amount Level 1 Level 2 Level 3 Fair Value Assets Cash and short-term investments $ 73,673 $ 73,673 $ - $ - $ 73,673 Securities available for sale 84,590 - 84,590 - 84,590 Restricted investments 1,835 - 1,835 - 1,835 Mortgage loans held for sale 235 - 235 - 235 Loans, net 631,402 - - 630,236 630,236 Accrued interest receivable 2,635 - 2,635 - 2,635 Mutual funds 419 419 - - 419 Bank-owned life insurance 14,231 - 14,231 - 14,231 Total financial assets $ 809,020 $ 74,092 $ 103,526 $ 630,236 $ 807,854 Liabilities Deposits $ 739,834 $ - $ 740,308 $ - $ 740,308 FHLB advances 12,629 - 13,199 - 13,199 Junior subordinated debt 4,124 - 4,058 - 4,058 Accrued interest payable 135 - 135 - 135 Interest rate swaps 634 - 634 - 634 Total financial liabilities $ 757,356 $ - $ 758,334 $ - $ 758,334 December 31, 2019 (In thousands) Carrying Amount Level 1 Level 2 Level 3 Fair Value Assets Cash and short-term investments $ 46,341 $ 46,341 $ - $ - $ 46,341 Securities available for sale 79,783 - 79,783 - 79,783 Restricted investments 2,016 - 2,016 - 2,016 Mortgage loans held for sale 247 247 - 247 Loans, net 544,999 - - 541,367 541,367 Accrued interest receivable 1,984 - 1,984 - 1,984 Mutual funds 403 403 - - 403 Bank-owned life insurance 13,961 - 13,961 - 13,961 Total financial assets $ 689,734 $ 46,744 $ 97,991 $ 541,367 $ 686,102 Liabilities Deposits $ 622,155 $ - $ 622,295 $ - $ 622,295 FHLB advances 16,695 - 16,724 - 16,724 Junior subordinated debt 4,124 - 4,446 - 4,446 Accrued interest payable 217 - 217 - 217 Interest rate swaps 140 - 140 - 140 Total financial liabilities $ 643,331 $ - $ 643,822 $ - $ 643,822 The Company assumes interest rate risk (the risk that general interest rate levels will change) during its normal operations. As a result, the fair values of the Company’s financial instruments will change when interest rate levels change and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk. However, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income (Loss) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Accumulated Other Comprehensive Income (Loss) | Note 10. Changes in accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2020 and 2019 were: (In thousands) Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available for Sale Securities Supplemental Executive Retirement Plans Total Balance, December 31, 2018 $ 172 $ (850 ) $ 140 $ (538 ) Other comprehensive income (loss) before reclassifications (369 ) 2,266 - 1,897 Balance, September 30, 2019 $ (197 ) $ 1,416 $ 140 $ 1,359 Balance, December 31, 2019 $ (78 ) $ 1,292 $ 157 $ 1,371 Other comprehensive income (loss) before reclassifications (348 ) 2,147 - 1,799 Balance, September 30, 2020 $ (426 ) $ 3,439 $ 157 $ 3,170 |
Investment in Affordable Housin
Investment in Affordable Housing Projects | 9 Months Ended |
Sep. 30, 2020 | |
Federal Home Loan Banks [Abstract] | |
Investment in Affordable Housing Projects | Note 11. The Company invests in certain qualified affordable housing projects located in the Commonwealth of Virginia. The general purpose of these investments is to develop and preserve affordable housing for low income families through residential rental property projects. The Company exerts no control over the operating or financial policies of the partnerships. Return on these investments is through receipt of tax credits and other tax benefits which are subject to recapture by taxing authorities based on compliance features at the project level. The investments are due to expire by 2035. The Company accounts for the affordable housing investments using the equity method and has recorded $3.9 |
Leases
Leases | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Leases | Note 12. Leases The following tables present information about the Company’s leases at the dates indicated: (Dollars in thousands) September 30, 2020 Lease liability $ 4,697 Right-of-use asset $ 4,634 Weighted average remaining lease term 8.04 years Weighted average discount rate 3.55 % Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Lease Expense Operating lease expense $ 200 $ 200 $ 611 $ 610 Short-term lease expense 7 5 16 11 Total lease expense $ 207 $ 205 $ 627 $ 621 Cash paid for amounts included in lease liabilities $ 168 $ 165 $ 502 $ 533 The following table presents a maturity schedule of undiscounted cash flows that contribute to the lease liability at September 30, 2020: (In thousands) Undiscounted Cash Flow September 30, 2020 Three months ending December 31, 2020 $ 112 Twelve months ending December 31, 2021 682 Twelve months ending December 31, 2022 694 Twelve months ending December 31, 2023 707 Twelve months ending December 31, 2024 646 Thereafter 2,603 Total undiscounted cash flows $ 5,444 Less: Discount (747 ) Lease liability $ 4,697 |
General (Policies)
General (Policies) | 9 Months Ended |
Sep. 30, 2020 | |
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |
Basis of Presentation | The consolidated financial statements include the accounts of Fauquier Bankshares, Inc. (the “Company”) and its wholly-owned subsidiary, The Fauquier Bank (the “Bank”), and the Bank’s wholly-owned subsidiaries, Fauquier Bank Services, Inc. and Specialty Properties Acquisitions - VA, LLC. Specialty Properties Acquisitions - VA, LLC was formed with the sole purpose of holding foreclosed property. The consolidated financial statements do not include the accounts of Fauquier Statutory Trust II, a wholly-owned subsidiary of the Company. In consolidation, significant intercompany financial balances and transactions have been eliminated. In the opinion of management, the accompanying unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position as of September 30, 2020 and the results of operations for the three and nine months ended September 30, 2020 and 2019, in accordance with accounting principles generally accepted in the United States of America (“GAAP”). The notes included herein should be read in conjunction with the consolidated financial statements and accompanying notes included in the Company’s 2019 Annual Report on Form 10-K filed with the Securities and Exchange Commission (the “SEC”). The results of operations for the three and nine months ended September 30, 2020 and 2019 are not necessarily indicative of the results expected for the full year or any other interim period. Due to the significant uncertainties related to the ultimate duration of the novel coronavirus (“COVID-19”) pandemic and measures taken in response thereto, it is reasonably possible that estimates made in the financial statements could be materially and adversely impacted in the near term as a result of these conditions, including that the credit quality of the Company’s loan portfolio may decline and loan defaults could increase. Certain amounts in the 2019 consolidated financial statements have been reclassified to conform to the 2020 presentation. No reclassifications were significant and there was no effect on net income. |
Business Combination | Business Combination On October 1, 2020, the Company and Virginia National Bankshares Corporation (“Virginia National”) announced a definitive agreement to combine in a strategic merger (the “Merger Agreement”) pursuant to which the Company will merge with and into Virginia National (the “Merger”). As a result of the Merger, the holders of shares of the Company's common stock will receive 0.6750 shares of Virginia National common stock for each share of the Company's common stock held immediately prior to the effective date of the Merger. The transaction is expected to be completed in the first quarter of 2021, subject to approval of both companies' shareholders, regulatory approvals and other customary closing conditions. |
Recent Accounting Pronouncements and Other Regulatory Statements | Recent Accounting Pronouncements and Other Regulatory Statements In June 2016, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2016-13, “Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available for sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU Nos. 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. Changes under ASU No. 2016-13 and subsequent updates represent a fundamental shift from existing GAAP and may result in a material increase to the Company's accounting for credit losses on financial instruments. To prepare for implementation of the new standard the Company established a working group to evaluate the impact these changes will have on the Company’s financial statements and related disclosures. The Company also contracted with a third-party for credit modeling in accordance with ASU No. 2016-13. The Company has focused on model validations, the development of processes and related controls, and the evaluation of parallel runs. The Company has not yet determined an estimate of the effect of these changes. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (“SAB”) 119. SAB 119 updated portions of the SEC’s interpretative guidance to align with FASB Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses.” The SAB covers topics including (i) measuring current expected credit losses; (ii) development, governance, and documentation of a systematic methodology; (iii) documenting the results of a systematic methodology; and (iv) validating a systematic methodology. In August 2018, the FASB issued ASU No. 2018-13, “Fair Value Measurement (Topic 820): “Changes to the Disclosure Requirements for Fair Value Measurement.” ASU No. 2018-13 modified the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. Certain disclosure requirements in Topic 820 were also removed or modified. ASU No. 2018-13 was effective for the Company on January 1, 2020. The Company’s adoption of ASU No. 2018-13 has not had a material impact on its consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-14, “Compensation - Retirement Benefits - Defined Benefit Plans - General (Subtopic 715-20): Disclosure Framework - Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements were deleted while the following disclosure requirements were added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company does not expect the adoption of ASU No. 2018-14 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU No. 2019-12, “Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes.” This ASU is expected to reduce the cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU No. 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU No. 2020-01, “Investments - Equity Securities (Topic 321), Investments - Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” This ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU No. 2016-01 made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments clarified that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, the amendments in this ASU are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU No. 2020-01 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. Th is ASU also provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Inter- Bank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The Company continues to evaluat e the impact of the reference rate reform on the Company’s consolidated financial statements. On June 28, 2018, the SEC adopted amendments to the definition of “smaller reporting company” that were effective on September 10, 2018. Under the amended definition, generally, a company qualifies as a “smaller reporting company” if (i) it has public float of less than $250 million or (ii) it has less than $100 million in annual revenues and (a) no public float or (b) public float of less than $700 million. Because of the Company’s public float being less than $250 million as of the measurement date in 2019, the Company is considered a smaller reporting company with respect to its SEC filings. On March 12, 2020, the SEC finalized amendments to its definitions of “accelerated filer” and “large accelerated filer.” The amendments increase the threshold criteria for meeting these filer classifications and are effective on April 27, 2020. Any changes in filer status are to be applied beginning with the filer’s first annual report filed with the SEC subsequent to the effective date. For the Company, this will be its annual report on Form 10-K with respect to the year ending December 31, 2020. Pursuant to Section 404(b) of the Sarbanes-Oxley Act, the classifications of “accelerated filer” and “large accelerated filer” require a public company to obtain an external auditor attestation concerning the effectiveness of a company’s internal control over financial reporting (“ICFR”) and include the opinion on ICFR in its annual report on Form 10-K. The Company has complied with such requirements during the years it was considered an accelerated filer. The SEC’s March 2020 definition amendments exclude from the accelerated filer and large accelerated filer definitions an issuer that (i) is eligible to be a smaller reporting company and (ii) had annual revenues of less than $100 million in the most recent fiscal year. Such entity can now be considered a “non-accelerated filer.” With respect to the 2020 fiscal year, the Company expects to continue to be a smaller reporting company and no longer be considered an accelerated filer. This would mean the Company would not be required to obtain the external auditor attestation of its ICFR. If the Company’s annual revenues exceed $100 million, its category may change back to that of an accelerated filer. Non-accelerated filers have additional time to file quarterly and annual financial statements. In March 2020 (revised in April 2020), various regulatory agencies, including the Board of Governors of the Federal Reserve System and the Federal Deposit Insurance Corporation (collectively, “the agencies”), issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by COVID-19. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC 310-40, “Receivables - Troubled Debt Restructurings by Creditors,” a restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. See Note 3 of the consolidated financial statements for additional disclosure of TDRs as of September 30, 2020. In August 2020, the FASB issued ASU No. 2020-06 “Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40): Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity.” The ASU simplifies accounting for convertible instruments by removing major separation models required under current U.S. GAAP. Consequently, more convertible debt instruments will be reported as a single liability instrument and more convertible preferred stock as a single equity instrument with no separate accounting for embedded conversion features. The ASU removes certain settlement conditions that are required for equity contracts to qualify for the derivative scope exception. The ASU also simplifies the diluted earnings per share calculation in certain areas. In addition, the amendment updates the disclosure requirements for convertible instruments to increase the information transparency. For public business entities, excluding smaller reporting companies, the amendments in the ASU are effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. For all other entities, the standard will be effective for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. In October 2020, the FASB issued ASU No. 2020-08, “Codification Improvements to Subtopic 310-20, Receivables – Nonrefundable fees and Other Costs.” This ASU clarifies that an entity should reevaluate whether a callable debt security is within the scope of ASC paragraph 310-20-35-33 for each reporting period. For public business entities, the ASU is effective for fiscal years beginning after December 15, 2021, and interim periods within those fiscal years. Early adoption is not permitted. ASU No. 2020-08 states that a ll entities should apply the amendments in this ASU on a prospective basis as of the beginning of the period of adoption for existing or newly purchased callable debt securities. The Company does not expect the adoption of ASU 2020-06 to have a material impact on its consolidated financial statements. |
Securities (Tables)
Securities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Investments Debt And Equity Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Securities Available for Sale, with Unrealized Gains and Losses | The amortized cost and fair value of securities available for sale, with unrealized gains and losses follows: September 30, 2020 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Obligations of U.S. Government corporations and agencies $ 60,791 $ 3,040 $ (16 ) $ 63,815 Obligations of states and political subdivisions 19,444 1,401 (70 ) 20,775 $ 80,235 $ 4,441 $ (86 ) $ 84,590 December 31, 2019 (In thousands) Amortized Cost Gross Unrealized Gains Gross Unrealized (Losses) Fair Value Obligations of U.S. Government corporations and agencies $ 63,090 $ 937 $ (86 ) $ 63,941 Obligations of states and political subdivisions 15,054 802 (14 ) 15,842 $ 78,144 $ 1,739 $ (100 ) $ 79,783 |
Summary of Amortized Cost and Fair Value of Securities Available for Sale, by Contractual Maturity | The amortized cost and fair value of securities available for sale, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations without penalties. September 30, 2020 (In thousands) Amortized Cost Fair Value Due in one year or less $ 1,055 $ 1,065 Due after one year through five years 16,204 17,221 Due after five years through ten years 10,396 11,032 Due after ten years 52,580 55,272 $ 80,235 $ 84,590 |
Schedule of Securities with Gross Unrealized Losses, Investment Category and Length of Time in Continuous Unrealized Loss Position | The following table shows the Company’s securities with gross unrealized losses, by investment category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2020 and December 31, 2019. (In thousands) Less than 12 Months 12 Months or More Total September 30, 2020 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Obligations of U.S. Government corporations and agencies $ 6,097 $ (16 ) $ - $ - $ 6,097 $ (16 ) Obligations of states and political subdivisions 4,081 (70 ) - - 4,081 (70 ) Total temporary impaired securities $ 10,178 $ (86 ) $ - $ - $ 10,178 $ (86 ) (In thousands) Less than 12 Months 12 Months or More Total December 31, 2019 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Obligations of U.S. Government corporations and agencies $ 11,460 $ (42 ) $ 5,651 $ (44 ) $ 17,111 $ (86 ) Obligations of states and political subdivisions 2,049 (14 ) - - 2,049 (14 ) Total temporary impaired securities $ 13,509 $ (56 ) $ 5,651 $ (44 ) $ 19,160 $ (100 ) There were 12 debt securities totaling $10.1 million of aggregate fair value considered temporarily impaired at September 30, 2020. The primary cause of the temporary impairments in the Company’s investments in debt securities was fluctuations in interest rates. The Company concluded that no other-than-temporary impairment existed in its securities portfolio at September 30, 2020, and no other-than-temporary impairment loss has been recognized in net income, based primarily on the fact that changes in fair value were caused primarily by fluctuations in interest rates, there were no securities with unrealized losses that were significant relative to their carrying amounts, no securities have been in an unrealized loss position continuously for more than 12 months, securities with unrealized losses had generally high credit quality, the Company intends to hold these investments in debt securities to maturity and it is more-likely-than-not that the Company will not be required to sell these investments before a recovery of its investment, and issuers have continued to make timely payments of principal and interest. Additionally, the Company’s mortgage-backed securities are entirely issued by either U.S. government agencies or U.S. government-sponsored enterprises. Collectively, these entities provide a guarantee, which is either explicitly or implicitly supported by the full faith and credit of the U.S. government, that investors in such mortgage-backed securities will receive timely principal and interest payments. |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accounts Notes Loans And Financing Receivable Gross Allowance And Net [Abstract] | |
Schedule of Allowance for Loan Losses by Portfolio Segment | The following tables present the total allowance for loan losses by portfolio segment for the periods presented. September 30, 2020 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Unallocated Total Allowance for Loan Losses Beginning balance, December 31, 2019 $ 296 $ 1,788 $ 652 $ 154 $ 65 $ 1,596 $ 326 $ 350 $ 5,227 Charge-offs (148 ) - - (21 ) (8 ) - - - (177 ) Recoveries 11 14 - 20 - - - - 45 Provision (recovery) 699 361 294 (18 ) 31 263 (24 ) - 1,606 Ending balance, September 30, 2020 $ 858 $ 2,163 $ 946 $ 135 $ 88 $ 1,859 $ 302 $ 350 $ 6,701 Ending balances individually evaluated for impairment $ 20 $ 60 $ - $ - $ - $ - $ - $ - $ 80 Ending balances collectively evaluated for impairment $ 838 $ 2,103 $ 946 $ 135 $ 88 $ 1,859 $ 302 $ 350 $ 6,621 Loans Individually evaluated for impairment $ 509 $ 8,369 $ - $ - $ - $ 377 $ - $ 9,255 Collectively evaluated for impairment 88,473 191,404 72,465 6,264 7,333 232,147 30,762 628,848 Ending balance, September 30, 2020 $ 88,982 $ 199,773 $ 72,465 $ 6,264 $ 7,333 $ 232,524 $ 30,762 $ 638,103 September 30, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Unallocated Total Allowance for Loan Losses Beginning balance, December 31, 2018 $ 483 $ 1,738 $ 635 $ 145 $ 68 $ 1,311 $ 446 $ 350 $ 5,176 Charge-offs (93 ) - - (24 ) (12 ) - - - (129 ) Recoveries 2 77 - 14 - - - - 93 Provision (recovery) 162 (34 ) 15 10 9 137 (44 ) - 255 Ending balance, September 30, 2019 $ 554 $ 1,781 $ 650 $ 145 $ 65 $ 1,448 $ 402 $ 350 $ 5,395 December 31, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Unallocated Total Allowance for Loan Losses Beginning balance, December 31, 2018 $ 483 $ 1,738 $ 635 $ 145 $ 68 $ 1,311 $ 446 $ 350 $ 5,176 Charge-offs (328 ) - - (50 ) (13 ) - - - (391 ) Recoveries 2 80 - 14 - - - - 96 Provision (recovery) 139 (30 ) 17 45 10 285 (120 ) - 346 Ending balance, December 31, 2019 $ 296 $ 1,788 $ 652 $ 154 $ 65 $ 1,596 $ 326 $ 350 $ 5,227 Ending balances individually evaluated for impairment $ - $ 229 $ - $ - $ - $ - $ - $ - $ 229 Ending balances collectively evaluated for impairment $ 296 $ 1,559 $ 652 $ 154 $ 65 $ 1,596 $ 326 $ 350 $ 4,998 Loans Individually evaluated for impairment $ 187 $ 2,847 $ 233 $ - $ - $ 379 $ - $ 3,646 Collectively evaluated for impairment 27,217 179,051 64,998 5,958 8,151 224,937 36,268 546,580 Ending balance, December 31, 2019 $ 27,404 $ 181,898 $ 65,231 $ 5,958 $ 8,151 $ 225,316 $ 36,268 $ 550,226 |
Schedule of Loans by Credit Quality Indicators | Loans by credit quality indicators were as follows at the dates presented: September 30, 2020 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Total Grade: Pass $ 88,139 $ 188,682 $ 70,110 $ 6,261 $ 7,333 $ 225,260 $ 28,785 $ 614,570 Special mention 212 9,291 2,289 3 - 321 127 12,243 Substandard 631 1,800 66 - - 6,943 1,850 11,290 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 88,982 $ 199,773 $ 72,465 $ 6,264 $ 7,333 $ 232,524 $ 30,762 $ 638,103 December 31, 2019 (In thousands) Commercial and Industrial Commercial Real Estate Construction and Land Consumer Student Residential Real Estate Home Equity Lines of Credit Total Grade: Pass $ 26,555 $ 175,063 $ 62,231 $ 5,955 $ 8,151 $ 218,686 $ 34,218 $ 530,859 Special mention 422 3,487 2,594 3 - 336 127 6,969 Substandard 427 3,348 406 - - 6,294 1,923 12,398 Doubtful - - - - - - - - Loss - - - - - - - - Total $ 27,404 $ 181,898 $ 65,231 $ 5,958 $ 8,151 $ 225,316 $ 36,268 $ 550,226 |
Schedule of Past Due Status of Loans | The past due status of loans at the dates presented were: September 30, 2020 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ Days Past Due and Accruing Nonaccruals Commercial and industrial $ 11 $ 43 $ 640 $ 694 $ 88,288 $ 88,982 $ 131 $ 509 Commercial real estate - - 357 357 199,416 199,773 - 357 Construction and land 318 - - 318 72,147 72,465 - - Consumer 24 - 7 31 6,233 6,264 7 - Student 311 265 509 1,085 6,248 7,333 509 - Residential real estate 708 383 379 1,470 231,054 232,524 - 379 Home equity lines of credit 129 - - 129 30,633 30,762 - - Total $ 1,501 $ 691 $ 1,892 $ 4,084 $ 634,019 $ 638,103 $ 647 $ 1,245 December 31, 2019 (In thousands) 30-59 Days Past Due 60-89 Days Past Due 90+ Days Past Due Total Past Due Current Total Loans 90+ Days Past Due and Accruing Nonaccruals Commercial and industrial $ 330 $ - $ 34 $ 364 $ 27,040 $ 27,404 $ 34 $ - Commercial real estate - - 989 989 180,909 181,898 - 989 Construction and land 5,472 - - 5,472 59,759 65,231 - - Consumer 11 1 - 12 5,946 5,958 - - Student 345 220 1,204 1,769 6,382 8,151 1,205 - Residential real estate 739 109 397 1,245 224,071 225,316 397 - Home equity lines of credit 389 - - 389 35,879 36,268 - - Total $ 7,286 $ 330 $ 2,624 $ 10,240 $ 539,986 $ 550,226 $ 1,636 $ 989 |
Schedule of Impaired Loans by Portfolio Segment | The following table presents information related to impaired loans, by portfolio segment, at the dates presented. September 30, 2020 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no specific allowance recorded: Commercial real estate $ 7,578 $ 7,578 $ - $ 7,938 $ 242 Residential real estate 377 377 - 378 4 With an allowance recorded: Commercial and industrial $ 509 $ 509 $ 20 $ 509 $ 8 Commercial real estate 791 791 60 801 28 Total: Commercial and industrial $ 509 $ 509 $ 20 $ 509 $ 8 Commercial real estate 8,369 8,369 60 8,739 270 Residential real estate 377 377 - 378 4 Total $ 9,255 $ 9,255 $ 80 $ 9,626 $ 282 December 31, 2019 (In thousands) Recorded Investment Unpaid Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized With no specific allowance recorded: Commercial and industrial $ 187 $ 187 $ - $ 287 $ 13 Commercial real estate 1,048 1,048 - 1,213 61 Construction and land 233 233 - 494 25 Residential real estate 379 379 - 384 16 With an allowance recorded: Commercial real estate 1,799 1,813 229 1,806 38 Total: Commercial and industrial $ 187 $ 187 $ - $ 287 $ 13 Commercial real estate 2,847 2,861 229 3,019 99 Construction and land 233 233 - 494 25 Residential real estate 379 379 - 384 16 Total $ 3,646 $ 3,660 $ 229 $ 4,184 $ 153 |
Summary of Modification Classified Troubled Debt Restructuring | The following table summarizes a modification that was classified as a TDR during the nine months ended September 30, 2020. There were no loan modifications that were classified as TDRs during the three months ended September 30, 2020 or during the three and nine months ended September 30, 2019. (Dollars in thousands) Nine Months Ended September 30, 2020 Class of Loan Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Commercial real estate 1 $ 6,221 $ 6,221 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Derivative Instruments And Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments | The following table summarizes the Company’s derivative instruments as of September 30, 2020 and December 31, 2019: (In thousands) September 30, 2020 Derivatives designated as hedging instruments Notional/Contract Amount Fair Value Fair Value Balance Sheet Location Expiration Date Interest rate swap - cash flow $ 4,000 $ (541 ) Other Liabilities 6/15/2031 Interest rate swap - fair value 4,112 (93 ) Other Liabilities 2/12/2022 (In thousands) December 31, 2019 Derivatives designated as hedging instruments Notional/Contract Amount Fair Value Fair Value Balance Sheet Location Expiration Date Interest rate swap - cash flow $ 4,000 $ (41 ) Other Liabilities 9/15/2020 Interest rate forward swap - cash flow 4,000 (59 ) Other Liabilities 6/15/2031 Interest rate swap - fair value 1,167 (17 ) Other Liabilities 4/9/2025 Interest rate swap - fair value 4,230 (23 ) Other Liabilities 2/12/2022 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Earnings Per Share [Abstract] | |
Components of Earnings Per Share Calculations | The components of the Company’s earnings per share calculations are as follows: Three Months Ended September 30, Nine Months Ended September 30, 2020 2019 2020 2019 Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Shares Per Share Amount Basic earnings per share 3,794,725 $ 0.41 3,784,934 $ 0.54 3,792,700 $ 1.19 3,782,943 $ 1.39 Effect of dilutive stock awards 6,554 5,912 6,544 8,320 Diluted earnings per share 3,801,279 $ 0.41 3,790,846 $ 0.54 3,799,244 $ 1.19 3,791,263 $ 1.38 |
Share-based Compensation (Table
Share-based Compensation (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Unvested Restricted Shares | A summary of the status of the Company’s unvested restricted shares granted under the Plan is presented below: September 30, 2020 September 30, 2019 Shares Weighted Average Grant Date Fair Value Per Share Shares Weighted Average Grant Date Fair Value Per Share Unvested shares, beginning 20,352 $ 20.20 22,569 $ 17.98 Granted 12,182 20.95 12,058 21.69 Vested (10,684 ) 19.14 (10,553 ) 17.84 Forfeited or surrendered (2,007 ) 19.21 (440 ) 14.98 Unvested shares, ending 19,843 $ 21.33 23,634 $ 20.10 |
Unvested Performance-Based Restricted Stock Units | A summary of the status of the Company’s unvested performance-based restricted stock units is presented below: September 30, 2020 September 30, 2019 Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Restricted Stock Units Weighted Average Grant Date Fair Value Per Share Unvested shares, beginning 30,012 $ 18.90 22,103 $ 17.90 Granted 7,889 20.95 7,909 21.69 Vested (826 ) 19.74 - - Forfeited (11,701 ) 16.92 - - Unvested shares, ending 25,374 $ 20.43 30,012 $ 18.98 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Fair Value Disclosures [Abstract] | |
Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table presents the balances of financial assets and liabilities measured at fair value on a recurring basis: Fair Value Measurements (In thousands) Balance Level 1 Level 2 Level 3 Assets at September 30, 2020: Available for sale securities: Obligations of U.S. Government corporations and agencies $ 63,815 $ - $ 63,815 $ - Obligations of states and political subdivisions 20,775 - 20,775 - Total available for sale securities 84,590 - 84,590 - Mutual funds 419 419 - - Total $ 85,009 $ 419 $ 84,590 $ - Liabilities at September 30, 2020: Interest rate swaps $ 634 $ - $ 634 $ - Total $ 634 $ - $ 634 $ - Assets at December 31, 2019: Available for sale securities: Obligations of U.S. Government corporations and agencies $ 63,941 $ - $ 63,941 $ - Obligations of states and political subdivisions 15,842 - 15,842 - Total available for sale securities 79,783 - 79,783 - Mutual funds 403 403 - - Total $ 80,186 $ 403 $ 79,783 $ - Liabilities at December 31, 2019: Interest rate swaps 140 $ - $ 140 $ - Total $ 140 $ - $ 140 $ - |
Summary of Financial Assets Measured at Fair Value on a Nonrecurring Basis | The following table summarizes the Company’s financial assets that were measured at fair value on a nonrecurring basis at September 30, 2020 and December 31, 2019. September 30, 2020 (In thousands) Balance Level 1 Level 2 Level 3 Assets: Mortgage loans held for sale $ 235 $ - $ 235 $ - Impaired loans, net 1,220 - - 1,220 Other real estate owned, net 1,356 - - 1,356 December 31, 2019 (In thousands) Balance Level 1 Level 2 Level 3 Assets: Mortgage loans held for sale $ 247 $ - $ 247 $ - Impaired loans, net 1,570 - - 1,570 Other real estate owned, net 1,356 - - 1,356 |
Summary of Quantitative Information About Level 3 Fair Value Measurements | The following table displays quantitative information about Level 3 fair value measurements at September 30, 2020 and December 31, 2019. September 30, 2020 (Dollars in thousands) Fair Value Valuation Technique Unobservable Input Weighted Average Discount Impaired loans, net $ 1,220 Appraised values Age of appraisal, current market conditions, experience within local market 5 % Other real estate owned, net 1,356 Appraised values Age of appraisal, current market conditions and selling costs 18 % Total $ 2,576 |
Schedule of Estimated Fair Values of Financial Instruments | The estimated fair values and related carrying amounts of the Company’s financial instruments are as follows: September 30, 2020 (In thousands) Carrying Amount Level 1 Level 2 Level 3 Fair Value Assets Cash and short-term investments $ 73,673 $ 73,673 $ - $ - $ 73,673 Securities available for sale 84,590 - 84,590 - 84,590 Restricted investments 1,835 - 1,835 - 1,835 Mortgage loans held for sale 235 - 235 - 235 Loans, net 631,402 - - 630,236 630,236 Accrued interest receivable 2,635 - 2,635 - 2,635 Mutual funds 419 419 - - 419 Bank-owned life insurance 14,231 - 14,231 - 14,231 Total financial assets $ 809,020 $ 74,092 $ 103,526 $ 630,236 $ 807,854 Liabilities Deposits $ 739,834 $ - $ 740,308 $ - $ 740,308 FHLB advances 12,629 - 13,199 - 13,199 Junior subordinated debt 4,124 - 4,058 - 4,058 Accrued interest payable 135 - 135 - 135 Interest rate swaps 634 - 634 - 634 Total financial liabilities $ 757,356 $ - $ 758,334 $ - $ 758,334 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Loss) (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Accumulated Other Comprehensive Income Loss Net Of Tax [Abstract] | |
Summary of Changes in Accumulated Other Comprehensive Income (Loss) | Changes in accumulated other comprehensive income (loss), net of tax, for the nine months ended September 30, 2020 and 2019 were: (In thousands) Gains (Losses) on Cash Flow Hedges Unrealized Gains (Losses) on Available for Sale Securities Supplemental Executive Retirement Plans Total Balance, December 31, 2018 $ 172 $ (850 ) $ 140 $ (538 ) Other comprehensive income (loss) before reclassifications (369 ) 2,266 - 1,897 Balance, September 30, 2019 $ (197 ) $ 1,416 $ 140 $ 1,359 Balance, December 31, 2019 $ (78 ) $ 1,292 $ 157 $ 1,371 Other comprehensive income (loss) before reclassifications (348 ) 2,147 - 1,799 Balance, September 30, 2020 $ (426 ) $ 3,439 $ 157 $ 3,170 |
Leases (Tables)
Leases (Tables) | 9 Months Ended |
Sep. 30, 2020 | |
Leases [Abstract] | |
Schedule of Information about Leases | The following tables present information about the Company’s leases at the dates indicated: (Dollars in thousands) September 30, 2020 Lease liability $ 4,697 Right-of-use asset $ 4,634 Weighted average remaining lease term 8.04 years Weighted average discount rate 3.55 % Three Months Ended September 30, Nine Months Ended September 30, (In thousands) 2020 2019 2020 2019 Lease Expense Operating lease expense $ 200 $ 200 $ 611 $ 610 Short-term lease expense 7 5 16 11 Total lease expense $ 207 $ 205 $ 627 $ 621 Cash paid for amounts included in lease liabilities $ 168 $ 165 $ 502 $ 533 |
Maturity Schedule of Undiscounted Cash Flows Contribute to Lease Liability | The following table presents a maturity schedule of undiscounted cash flows that contribute to the lease liability at September 30, 2020: (In thousands) Undiscounted Cash Flow September 30, 2020 Three months ending December 31, 2020 $ 112 Twelve months ending December 31, 2021 682 Twelve months ending December 31, 2022 694 Twelve months ending December 31, 2023 707 Twelve months ending December 31, 2024 646 Thereafter 2,603 Total undiscounted cash flows $ 5,444 Less: Discount (747 ) Lease liability $ 4,697 |
General - Additional Informatio
General - Additional Information (Details) - shares | Oct. 01, 2020 | Sep. 30, 2020 |
ASU 2018-13 [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Change in Accounting Principle, Accounting Standards Update, Adopted [true false] | true | |
Change in Accounting Principle, Accounting Standards Update, Adoption Date | Jan. 1, 2020 | |
Change in Accounting Principle, Accounting Standards Update, Immaterial Effect [true false] | true | |
Virginia National Bankshares Corporation [Member] | Merger Agreement [Member] | ||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||
Common stock holders receive shares for each share | 0.6750 |
Securities - Summary of Amortiz
Securities - Summary of Amortized Cost and Fair Value of Securities Available for Sale, with Unrealized Gains and Losses (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Securities Available for Sale [Abstract] | ||
Amortized cost | $ 80,235 | $ 78,144 |
Gross unrealized gains | 4,441 | 1,739 |
Gross unrealized (losses) | (86) | (100) |
Fair value | 84,590 | 79,783 |
Obligations of U.S. Government Corporations and Agencies [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized cost | 60,791 | 63,090 |
Gross unrealized gains | 3,040 | 937 |
Gross unrealized (losses) | (16) | (86) |
Fair value | 63,815 | 63,941 |
Obligations of States and Political Subdivisions [Member] | ||
Securities Available for Sale [Abstract] | ||
Amortized cost | 19,444 | 15,054 |
Gross unrealized gains | 1,401 | 802 |
Gross unrealized (losses) | (70) | (14) |
Fair value | $ 20,775 | $ 15,842 |
Securities - Summary of Amort_2
Securities - Summary of Amortized Cost and Fair Value of Securities Available for Sale, by Contractual Maturity (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Amortized Cost [Abstract] | ||
Due in one year or less | $ 1,055 | |
Due after one year through five years | 16,204 | |
Due after five years through ten years | 10,396 | |
Due after ten years | 52,580 | |
Amortized cost | 80,235 | $ 78,144 |
Fair Value [Abstract] | ||
Due in one year or less | 1,065 | |
Due after one year through five years | 17,221 | |
Due after five years through ten years | 11,032 | |
Due after ten years | 55,272 | |
Total fair value | $ 84,590 | $ 79,783 |
Securities - Additional Informa
Securities - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Security | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)Security | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule Of Available For Sale Securities [Line Items] | |||||
Fair value of securities purchased | $ 13,000,000 | $ 18,000,000 | |||
Proceeds from calls and principal repayments | 10,500,000 | 13,900,000 | |||
Fair value of securities sold | 0 | 6,000,000 | |||
Impairment losses on securities | $ 0 | $ 0 | $ 0 | $ 0 | |
Number of debt securities temporarily impaired | Security | 12 | 12 | |||
Aggregate fair value | $ 10,178,000 | $ 10,178,000 | $ 19,160,000 | ||
Other-than-temporary impairment in securities | 0 | ||||
Other-than-temporary impairment loss recognized | 0 | ||||
Unrealized loss position, carrying amount | 0 | 0 | |||
Unrealized loss position for more than 12 months | 0 | 0 | 44,000 | ||
Carrying value of pledged securities | 16,700,000 | 16,700,000 | $ 16,600,000 | ||
12 Debt Securities [Member] | |||||
Schedule Of Available For Sale Securities [Line Items] | |||||
Aggregate fair value | $ 10,100,000 | $ 10,100,000 |
Securities - Schedule of Securi
Securities - Schedule of Securities with Gross Unrealized Losses, Investment Category and Length of Time in Continuous Unrealized Loss Position (Details) - USD ($) | Sep. 30, 2020 | Dec. 31, 2019 |
(In thousands) | ||
Less than 12 months, fair value | $ 10,178,000 | $ 13,509,000 |
Less than 12 months, unrealized (losses) | (86,000) | (56,000) |
12 months or more, fair value | 0 | 5,651,000 |
12 months or more, unrealized (losses) | 0 | (44,000) |
Total, fair value | 10,178,000 | 19,160,000 |
Total, unrealized (losses) | (86,000) | (100,000) |
Obligations of U.S. Government Corporations and Agencies [Member] | ||
(In thousands) | ||
Less than 12 months, fair value | 6,097,000 | 11,460,000 |
Less than 12 months, unrealized (losses) | (16,000) | (42,000) |
12 months or more, fair value | 0 | 5,651,000 |
12 months or more, unrealized (losses) | 0 | (44,000) |
Total, fair value | 6,097,000 | 17,111,000 |
Total, unrealized (losses) | (16,000) | (86,000) |
Obligations of States and Political Subdivisions [Member] | ||
(In thousands) | ||
Less than 12 months, fair value | 4,081,000 | 2,049,000 |
Less than 12 months, unrealized (losses) | (70,000) | (14,000) |
12 months or more, fair value | 0 | 0 |
12 months or more, unrealized (losses) | 0 | 0 |
Total, fair value | 4,081,000 | 2,049,000 |
Total, unrealized (losses) | $ (70,000) | $ (14,000) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Additional Information (Details) $ in Millions | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)LoanProperty | Sep. 30, 2019LoanProperty | Sep. 30, 2020USD ($)LoanProperty | Sep. 30, 2019LoanProperty | Dec. 31, 2019USD ($)Loan | |
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | 0 | 0 | 0 | ||
Number of TDR loans in the portfolio | 5 | 5 | 5 | ||
TDR loans in the portfolio | $ | $ 8.4 | $ 8.4 | $ 2.5 | ||
Number of TDR loans current and performing | 5 | 5 | 5 | ||
Percentage of deferments payment ended | 94.00% | ||||
Deferments payment granted | $ | $ 5.5 | ||||
Number of TDRs with defaults occurring within 12 months of modification | 0 | 0 | 0 | 0 | |
Less Than 30 Days Past Due [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of TDR loans in the portfolio | 194 | 194 | |||
TDR loans in the portfolio | $ | $ 92.8 | $ 92.8 | |||
Residential Real Estate [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of foreclosed properties in possession or in process of foreclosure | Property | 0 | 0 | 0 | 0 | |
Commercial Real Estate [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of Contracts | 1 | ||||
Small Business Administration (SBA) CARES Act, Paycheck Protection Program [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Financing receivable number of loans authorized | 549 | 549 | |||
Financing receivable amount of loans authorized | $ | $ 53.1 | $ 53.1 | |||
Payment Deferral Program [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of deferments loans | 7 | 7 | |||
Payment Deferral Program [Member] | Residential Real Estate [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of deferments loans | 3 | 3 | |||
Payment Deferral Program [Member] | Commercial Real Estate [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of deferments loans | 1 | 1 | |||
Payment Deferral Program [Member] | Commercial and Industrial [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of deferments loans | 2 | 2 | |||
Payment Deferral Program [Member] | Construction and Land Loan [Member] | |||||
Troubled Debt Restructurings [Abstract] | |||||
Number of deferments loans | 1 | 1 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | $ 5,227 | $ 5,176 | $ 5,176 | |
Charge-offs | (177) | (129) | (391) | |
Recoveries | 45 | 93 | 96 | |
Provision (recovery) | $ 345 | 1,606 | 255 | 346 |
Ending balance | 6,701 | 6,701 | 5,395 | 5,227 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 80 | 80 | 229 | |
Ending balances collectively evaluated for impairment | 6,621 | 6,621 | 4,998 | |
Loans receivable, individually evaluated for impairment | 9,255 | 9,255 | 3,646 | |
Loans receivable, collectively evaluated for impairment | 628,848 | 628,848 | 546,580 | |
Total Loans | 638,103 | 638,103 | 550,226 | |
Commercial and Industrial [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 296 | 483 | 483 | |
Charge-offs | (148) | (93) | (328) | |
Recoveries | 11 | 2 | 2 | |
Provision (recovery) | 699 | 162 | 139 | |
Ending balance | 858 | 858 | 554 | 296 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 20 | 20 | 0 | |
Ending balances collectively evaluated for impairment | 838 | 838 | 296 | |
Loans receivable, individually evaluated for impairment | 509 | 509 | 187 | |
Loans receivable, collectively evaluated for impairment | 88,473 | 88,473 | 27,217 | |
Total Loans | 88,982 | 88,982 | 27,404 | |
Commercial Real Estate [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 1,788 | 1,738 | 1,738 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 14 | 77 | 80 | |
Provision (recovery) | 361 | (34) | (30) | |
Ending balance | 2,163 | 2,163 | 1,781 | 1,788 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 60 | 60 | 229 | |
Ending balances collectively evaluated for impairment | 2,103 | 2,103 | 1,559 | |
Loans receivable, individually evaluated for impairment | 8,369 | 8,369 | 2,847 | |
Loans receivable, collectively evaluated for impairment | 191,404 | 191,404 | 179,051 | |
Total Loans | 199,773 | 199,773 | 181,898 | |
Construction and Land [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 652 | 635 | 635 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision (recovery) | 294 | 15 | 17 | |
Ending balance | 946 | 946 | 650 | 652 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 0 | 0 | 0 | |
Ending balances collectively evaluated for impairment | 946 | 946 | 652 | |
Loans receivable, individually evaluated for impairment | 0 | 0 | 233 | |
Loans receivable, collectively evaluated for impairment | 72,465 | 72,465 | 64,998 | |
Total Loans | 72,465 | 72,465 | 65,231 | |
Consumer [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 154 | 145 | 145 | |
Charge-offs | (21) | (24) | (50) | |
Recoveries | 20 | 14 | 14 | |
Provision (recovery) | (18) | 10 | 45 | |
Ending balance | 135 | 135 | 145 | 154 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 0 | 0 | 0 | |
Ending balances collectively evaluated for impairment | 135 | 135 | 154 | |
Loans receivable, individually evaluated for impairment | 0 | 0 | 0 | |
Loans receivable, collectively evaluated for impairment | 6,264 | 6,264 | 5,958 | |
Total Loans | 6,264 | 6,264 | 5,958 | |
Student [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 65 | 68 | 68 | |
Charge-offs | (8) | (12) | (13) | |
Recoveries | 0 | 0 | 0 | |
Provision (recovery) | 31 | 9 | 10 | |
Ending balance | 88 | 88 | 65 | 65 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 0 | 0 | 0 | |
Ending balances collectively evaluated for impairment | 88 | 88 | 65 | |
Loans receivable, individually evaluated for impairment | 0 | 0 | 0 | |
Loans receivable, collectively evaluated for impairment | 7,333 | 7,333 | 8,151 | |
Total Loans | 7,333 | 7,333 | 8,151 | |
Residential Real Estate [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 1,596 | 1,311 | 1,311 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision (recovery) | 263 | 137 | 285 | |
Ending balance | 1,859 | 1,859 | 1,448 | 1,596 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 0 | 0 | 0 | |
Ending balances collectively evaluated for impairment | 1,859 | 1,859 | 1,596 | |
Loans receivable, individually evaluated for impairment | 377 | 377 | 379 | |
Loans receivable, collectively evaluated for impairment | 232,147 | 232,147 | 224,937 | |
Total Loans | 232,524 | 232,524 | 225,316 | |
Home Equity Lines of Credit [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 326 | 446 | 446 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision (recovery) | (24) | (44) | (120) | |
Ending balance | 302 | 302 | 402 | 326 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 0 | 0 | 0 | |
Ending balances collectively evaluated for impairment | 302 | 302 | 326 | |
Loans receivable, individually evaluated for impairment | 0 | 0 | 0 | |
Loans receivable, collectively evaluated for impairment | 30,762 | 30,762 | 36,268 | |
Total Loans | 30,762 | 30,762 | 36,268 | |
Unallocated [Member] | ||||
Allowance for Loan Losses [Roll Forward] | ||||
Beginning balance | 350 | 350 | 350 | |
Charge-offs | 0 | 0 | 0 | |
Recoveries | 0 | 0 | 0 | |
Provision (recovery) | 0 | 0 | 0 | |
Ending balance | 350 | 350 | $ 350 | 350 |
Additional Information on Allowance for Loan Losses and Recorded Investment in Loans Receivable [Abstract] | ||||
Ending balances individually evaluated for impairment | 0 | 0 | 0 | |
Ending balances collectively evaluated for impairment | $ 350 | $ 350 | $ 350 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Loans by Credit Quality Indicators (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Credit Quality Indicators [Abstract] | ||
Loans | $ 638,103 | $ 550,226 |
Commercial and Industrial [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 88,982 | 27,404 |
Commercial Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 199,773 | 181,898 |
Construction and Land [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 72,465 | 65,231 |
Consumer [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 6,264 | 5,958 |
Student [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 7,333 | 8,151 |
Residential Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 232,524 | 225,316 |
Home Equity Lines of Credit [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 30,762 | 36,268 |
Pass [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 614,570 | 530,859 |
Pass [Member] | Commercial and Industrial [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 88,139 | 26,555 |
Pass [Member] | Commercial Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 188,682 | 175,063 |
Pass [Member] | Construction and Land [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 70,110 | 62,231 |
Pass [Member] | Consumer [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 6,261 | 5,955 |
Pass [Member] | Student [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 7,333 | 8,151 |
Pass [Member] | Residential Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 225,260 | 218,686 |
Pass [Member] | Home Equity Lines of Credit [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 28,785 | 34,218 |
Special Mention [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 12,243 | 6,969 |
Special Mention [Member] | Commercial and Industrial [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 212 | 422 |
Special Mention [Member] | Commercial Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 9,291 | 3,487 |
Special Mention [Member] | Construction and Land [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 2,289 | 2,594 |
Special Mention [Member] | Consumer [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 3 | 3 |
Special Mention [Member] | Student [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Special Mention [Member] | Residential Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 321 | 336 |
Special Mention [Member] | Home Equity Lines of Credit [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 127 | 127 |
Substandard [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 11,290 | 12,398 |
Substandard [Member] | Commercial and Industrial [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 631 | 427 |
Substandard [Member] | Commercial Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 1,800 | 3,348 |
Substandard [Member] | Construction and Land [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 66 | 406 |
Substandard [Member] | Consumer [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Substandard [Member] | Student [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Substandard [Member] | Residential Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 6,943 | 6,294 |
Substandard [Member] | Home Equity Lines of Credit [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 1,850 | 1,923 |
Doubtful [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Commercial and Industrial [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Commercial Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Construction and Land [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Consumer [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Student [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Residential Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Doubtful [Member] | Home Equity Lines of Credit [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Commercial and Industrial [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Commercial Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Construction and Land [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Consumer [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Student [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Residential Real Estate [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | 0 | 0 |
Loss [Member] | Home Equity Lines of Credit [Member] | ||
Credit Quality Indicators [Abstract] | ||
Loans | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Past Due Status of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | $ 4,084 | $ 10,240 |
Current | 634,019 | 539,986 |
Total Loans | 638,103 | 550,226 |
90+ days past due and accruing | 647 | 1,636 |
Nonaccruals | 1,245 | 989 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 1,501 | 7,286 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 691 | 330 |
90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 1,892 | 2,624 |
Commercial and Industrial [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 694 | 364 |
Current | 88,288 | 27,040 |
Total Loans | 88,982 | 27,404 |
90+ days past due and accruing | 131 | 34 |
Nonaccruals | 509 | 0 |
Commercial and Industrial [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 11 | 330 |
Commercial and Industrial [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 43 | 0 |
Commercial and Industrial [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 640 | 34 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 357 | 989 |
Current | 199,416 | 180,909 |
Total Loans | 199,773 | 181,898 |
90+ days past due and accruing | 0 | 0 |
Nonaccruals | 357 | 989 |
Commercial Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
Commercial Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
Commercial Real Estate [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 357 | 989 |
Construction and Land [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 318 | 5,472 |
Current | 72,147 | 59,759 |
Total Loans | 72,465 | 65,231 |
90+ days past due and accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Construction and Land [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 318 | 5,472 |
Construction and Land [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
Construction and Land [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 31 | 12 |
Current | 6,233 | 5,946 |
Total Loans | 6,264 | 5,958 |
90+ days past due and accruing | 7 | 0 |
Nonaccruals | 0 | 0 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 24 | 11 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 1 |
Consumer [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 7 | 0 |
Student [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 1,085 | 1,769 |
Current | 6,248 | 6,382 |
Total Loans | 7,333 | 8,151 |
90+ days past due and accruing | 509 | 1,205 |
Nonaccruals | 0 | 0 |
Student [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 311 | 345 |
Student [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 265 | 220 |
Student [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 509 | 1,204 |
Residential Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 1,470 | 1,245 |
Current | 231,054 | 224,071 |
Total Loans | 232,524 | 225,316 |
90+ days past due and accruing | 0 | 397 |
Nonaccruals | 379 | 0 |
Residential Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 708 | 739 |
Residential Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 383 | 109 |
Residential Real Estate [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 379 | 397 |
Home Equity Lines of Credit [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 129 | 389 |
Current | 30,633 | 35,879 |
Total Loans | 30,762 | 36,268 |
90+ days past due and accruing | 0 | 0 |
Nonaccruals | 0 | 0 |
Home Equity Lines of Credit [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 129 | 389 |
Home Equity Lines of Credit [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | 0 | 0 |
Home Equity Lines of Credit [Member] | 90+ Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Aging [Abstract] | ||
Past due | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Impaired Loans by Portfolio Segment (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020 | Dec. 31, 2019 | |
Recorded Investment [Abstract] | ||
Recorded investment, total | $ 9,255 | $ 3,646 |
Unpaid Principal Balance [Abstract] | ||
Unpaid principal balance, total | 9,255 | 3,660 |
Related Allowance [Abstract] | ||
Related allowance | 80 | 229 |
Average Recorded Investment [Abstract] | ||
Average recorded investment, total | 9,626 | 4,184 |
Interest Income Recognized [Abstract] | ||
Interest income recognized, total | 282 | 153 |
Commercial Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Recorded investment, with no specific allowance recorded | 7,578 | 1,048 |
Recorded investment, with an allowance recorded | 791 | 1,799 |
Recorded investment, total | 8,369 | 2,847 |
Unpaid Principal Balance [Abstract] | ||
Unpaid principal balance, with no specific allowance recorded | 7,578 | 1,048 |
Unpaid principal balance, with an allowance recorded | 791 | 1,813 |
Unpaid principal balance, total | 8,369 | 2,861 |
Related Allowance [Abstract] | ||
Related allowance | 60 | 229 |
Average Recorded Investment [Abstract] | ||
Average recorded investment, with no specific allowance recorded | 7,938 | 1,213 |
Average recorded investment, with an allowance recorded | 801 | 1,806 |
Average recorded investment, total | 8,739 | 3,019 |
Interest Income Recognized [Abstract] | ||
Interest income recognized, with no specific allowance recorded | 242 | 61 |
Interest income recognized, with an allowance recorded | 28 | 38 |
Interest income recognized, total | 270 | 99 |
Residential Real Estate [Member] | ||
Recorded Investment [Abstract] | ||
Recorded investment, with no specific allowance recorded | 377 | 379 |
Recorded investment, total | 377 | 379 |
Unpaid Principal Balance [Abstract] | ||
Unpaid principal balance, with no specific allowance recorded | 377 | 379 |
Unpaid principal balance, total | 377 | 379 |
Related Allowance [Abstract] | ||
Related allowance | 0 | 0 |
Average Recorded Investment [Abstract] | ||
Average recorded investment, with no specific allowance recorded | 378 | 384 |
Average recorded investment, total | 378 | 384 |
Interest Income Recognized [Abstract] | ||
Interest income recognized, with no specific allowance recorded | 4 | 16 |
Interest income recognized, total | 4 | 16 |
Commercial and Industrial [Member] | ||
Recorded Investment [Abstract] | ||
Recorded investment, with no specific allowance recorded | 187 | |
Recorded investment, with an allowance recorded | 509 | |
Recorded investment, total | 509 | 187 |
Unpaid Principal Balance [Abstract] | ||
Unpaid principal balance, with no specific allowance recorded | 187 | |
Unpaid principal balance, with an allowance recorded | 509 | |
Unpaid principal balance, total | 509 | 187 |
Related Allowance [Abstract] | ||
Related allowance | 20 | 0 |
Average Recorded Investment [Abstract] | ||
Average recorded investment, with no specific allowance recorded | 287 | |
Average recorded investment, with an allowance recorded | 509 | |
Average recorded investment, total | 509 | 287 |
Interest Income Recognized [Abstract] | ||
Interest income recognized, with no specific allowance recorded | 13 | |
Interest income recognized, with an allowance recorded | 8 | |
Interest income recognized, total | $ 8 | 13 |
Construction and Land [Member] | ||
Recorded Investment [Abstract] | ||
Recorded investment, with no specific allowance recorded | 233 | |
Recorded investment, total | 233 | |
Unpaid Principal Balance [Abstract] | ||
Unpaid principal balance, with no specific allowance recorded | 233 | |
Unpaid principal balance, total | 233 | |
Related Allowance [Abstract] | ||
Related allowance | 0 | |
Average Recorded Investment [Abstract] | ||
Average recorded investment, with no specific allowance recorded | 494 | |
Average recorded investment, total | 494 | |
Interest Income Recognized [Abstract] | ||
Interest income recognized, with no specific allowance recorded | 25 | |
Interest income recognized, total | $ 25 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Modification Classified Troubled Debt Restructuring (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020Loan | Sep. 30, 2019Loan | Sep. 30, 2020USD ($)Loan | Sep. 30, 2019Loan | |
Financing Receivable Impaired [Line Items] | ||||
Number of Contracts | Loan | 0 | 0 | 0 | |
Commercial Real Estate [Member] | ||||
Financing Receivable Impaired [Line Items] | ||||
Number of Contracts | Loan | 1 | |||
Pre-Modification Outstanding Recorded Investment | $ | $ 6,221 | |||
Post-Modification Outstanding Recorded Investment | $ | $ 6,221 |
Junior Subordinated Debt - Addi
Junior Subordinated Debt - Additional Information (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Sep. 30, 2020 | Dec. 31, 2019 | Sep. 21, 2006 | |
Junior Subordinated Notes [Abstract] | |||
Frequency of repricing | 3 months | ||
Junior subordinated debt | $ 4,124 | $ 4,124 | |
Floating Rate Capital Securities [Member] | LIBOR [Member] | |||
Junior Subordinated Notes [Abstract] | |||
Basis spread on variable rate | 1.70% | ||
Term of variable rate | 3 months | ||
Floating Rate Junior Subordinated Deferrable Interest Debentures due 2036 [Member] | |||
Junior Subordinated Notes [Abstract] | |||
Face amount | $ 4,000 | ||
Maturity year | 2036 | ||
Wholly-Owned Connecticut Statutory Business Trust [Member] | Floating Rate Capital Securities [Member] | |||
Junior Subordinated Notes [Abstract] | |||
Face amount | $ 4,000 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) | Jul. 28, 2020USD ($)Derivative | Jun. 24, 2016 | Sep. 30, 2020USD ($)Derivative | Sep. 30, 2019USD ($) | Sep. 30, 2020USD ($)LoanDerivative | Sep. 30, 2019USD ($) | Dec. 31, 2019USD ($) |
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Frequency of repricing | 3 months | ||||||
Interest expense | $ 49,000 | $ 51,000 | $ 148,000 | $ 149,000 | |||
Notional/contract amount | $ 1,200,000 | ||||||
Termination fee | $ 89,200 | ||||||
Number of swap agreements terminated | Derivative | 1 | ||||||
Interest Rate Swaps - Junior Subordinated Debt Due 2036 [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Fixed interest rate | 3.21% | 3.21% | 3.21% | 3.21% | |||
Interest expense | $ 28,000 | $ 9,000 | $ 69,000 | $ 20,000 | |||
Interest Rate Swaps - Junior Subordinated Debt Due 2036 [Member] | LIBOR [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Term of variable rate | 3 months | ||||||
Basis spread on variable rate | 1.70% | 1.70% | |||||
Interest Rate Swaps - Junior Subordinated Debt Due 2036 [Member] | Maximum [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Period to convert floating rate liability to fixed rate liability under agreement | 2031 | ||||||
Interest Rate Swaps - Junior Subordinated Debt Due 2036 [Member] | Minimum [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Period to convert floating rate liability to fixed rate liability under agreement | 2020 | ||||||
Interest Rate Swap [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Expiration date | Sep. 15, 2020 | ||||||
Cash collateral | $ 1,100,000 | $ 1,100,000 | $ 730,000 | ||||
Interest Rate Swaps - Commercial Loans [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Number of swap agreements | Derivative | 2 | 2 | |||||
Number of commercial loans managed with swap agreements | Loan | 2 | ||||||
Interest income | $ 7,000 | $ 25,000 | |||||
Interest expense | $ 19,000 | $ 37,000 | |||||
Interest Rate Swaps - Commercial Loans [Member] | LIBOR [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Term of variable rate | 1 month | ||||||
Interest Rate Swaps - Commercial Loans [Member] | Maximum [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Period to convert fixed rate assets to floating rate assets under agreement | 2025 | ||||||
Interest Rate Swaps - Commercial Loans [Member] | Minimum [Member] | |||||||
Derivative Instruments and Hedging Activities [Abstract] | |||||||
Period to convert fixed rate assets to floating rate assets under agreement | 2022 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Summary of Derivative Instruments (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Sep. 30, 2020 | Dec. 31, 2019 | Jul. 28, 2020 | |
Derivative Instruments and Hedging Activities [Abstract] | |||
Notional/contract amount | $ 1,200 | ||
Interest Rate Swap through 9-15-2020 [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Notional/contract amount | $ 4,000 | ||
Expiration date | Sep. 15, 2020 | ||
Interest Rate Swap through 9-15-2020 [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Fair Value | $ (41) | ||
Interest Rate Swap through 6-15-2031 [Member] | Cash Flow Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Notional/contract amount | $ 4,000 | $ 4,000 | |
Expiration date | Jun. 15, 2031 | Jun. 15, 2031 | |
Interest Rate Swap through 6-15-2031 [Member] | Cash Flow Hedging [Member] | Other Liabilities [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Fair Value | $ (541) | $ (59) | |
Interest Rate Swap through 4-9-2025 [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Notional/contract amount | $ 4,112 | $ 1,167 | |
Expiration date | Feb. 12, 2022 | Apr. 9, 2025 | |
Interest Rate Swap through 4-9-2025 [Member] | Fair Value Hedging [Member] | Other Liabilities [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Fair Value | $ (93) | $ (17) | |
Interest Rate Swap through 2-12-2022 [Member] | Fair Value Hedging [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Notional/contract amount | $ 4,230 | ||
Expiration date | Feb. 12, 2022 | ||
Interest Rate Swap through 2-12-2022 [Member] | Fair Value Hedging [Member] | Other Liabilities [Member] | |||
Derivative Instruments and Hedging Activities [Abstract] | |||
Fair Value | $ (23) |
Earnings Per Share - Components
Earnings Per Share - Components of Earnings Per Share Calculations (Details) - $ / shares | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Shares [Abstract] | ||||
Basic earnings per share (in shares) | 3,794,725 | 3,784,934 | 3,792,700 | 3,782,943 |
Effect of dilutive stock awards (in shares) | 6,554 | 5,912 | 6,544 | 8,320 |
Diluted earnings per share (in shares) | 3,801,279 | 3,790,846 | 3,799,244 | 3,791,263 |
Per Share Amount [Abstract] | ||||
Basic earnings per share (in dollars per share) | $ 0.41 | $ 0.54 | $ 1.19 | $ 1.39 |
Diluted earnings per share (in dollars per share) | $ 0.41 | $ 0.54 | $ 1.19 | $ 1.38 |
Share-based Compensation - Addi
Share-based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Restricted Shares [Member] | ||||
Stock Based Compensation [Abstract] | ||||
Unrecognized compensation cost | $ 203,000 | $ 200,000 | $ 203,000 | $ 200,000 |
Stock Incentive Plan [Member] | ||||
Stock Based Compensation [Abstract] | ||||
Number of shares authorized (in shares) | 350,000 | 350,000 | ||
Stock Incentive Plan [Member] | Restricted Shares [Member] | ||||
Stock Based Compensation [Abstract] | ||||
Recognition period for total unrecognized compensation costs | 3 years | |||
Stock Incentive Plan [Member] | Restricted Shares [Member] | Nonemployee Director [Member] | ||||
Stock Based Compensation [Abstract] | ||||
Compensation expense | $ 35,000 | 40,000 | $ 194,000 | 208,000 |
Stock Incentive Plan [Member] | Performance-Based Restricted Stock Units [Member] | ||||
Stock Based Compensation [Abstract] | ||||
Unrecognized compensation cost | 98,000 | 104,000 | 98,000 | 104,000 |
Stock Incentive Plan [Member] | Performance-Based Restricted Stock Units [Member] | Certain Executive Officers [Member] | ||||
Stock Based Compensation [Abstract] | ||||
Compensation expense | $ 17,000 | $ 17,000 | $ (82,000) | $ 71,000 |
Share-based Compensation - Unve
Share-based Compensation - Unvested Restricted Shares (Details) - Stock Incentive Plan [Member] - Restricted Shares [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Unvested Restricted Shares [Roll Forward] | ||
Unvested at beginning of period (in shares) | 20,352 | 22,569 |
Granted (in shares) | 12,182 | 12,058 |
Vested (in shares) | (10,684) | (10,553) |
Forfeited or surrendered (in shares) | (2,007) | (440) |
Unvested at end of period (in shares) | 19,843 | 23,634 |
Unvested Restricted Shares, Weighted Average Grant Date Fair Value Per Share [Roll Forward] | ||
Unvested at beginning of period (in dollars per share) | $ 20.20 | $ 17.98 |
Granted (in dollars per share) | 20.95 | 21.69 |
Vested (in dollars per share) | 19.14 | 17.84 |
Forfeited or surrendered (in dollars per share) | 19.21 | 14.98 |
Unvested at end of period (in dollars per share) | $ 21.33 | $ 20.10 |
Share-based Compensation - Un_2
Share-based Compensation - Unvested Performance-Based Restricted Stock Units (Details) - Stock Incentive Plan [Member] - Performance-Based Restricted Stock Units [Member] - $ / shares | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Unvested Performance-Based Restricted Stock Units [Roll Forward] | ||
Unvested at beginning of period (in shares) | 30,012 | 22,103 |
Granted (in shares) | 7,889 | 7,909 |
Vested (in shares) | (826) | 0 |
Forfeited (in shares) | (11,701) | 0 |
Unvested at end of period (in shares) | 25,374 | 30,012 |
Unvested Performance-Based Stock Rights, Weighted Average Grant Date Fair Value Per Share [Roll Forward] | ||
Unvested at beginning of period (in dollars per share) | $ 18.90 | $ 17.90 |
Granted (in dollars per share) | 20.95 | 21.69 |
Vested (in dollars per share) | 19.74 | 0 |
Forfeited (in dollars per share) | 16.92 | |
Unvested at end of period (in dollars per share) | $ 20.43 | $ 18.98 |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Details) | 3 Months Ended | 9 Months Ended | |||
Sep. 30, 2020USD ($)Director | Sep. 30, 2019USD ($)Director | Sep. 30, 2020USD ($)HourInstallmentDirector | Sep. 30, 2019USD ($)Director | Dec. 31, 2019USD ($) | |
401(k) Plan [Abstract] | |||||
Minimum age to participate | 18 years | ||||
Minimum working hours to participate | Hour | 20 | ||||
Annual contribution per employee | 100.00% | ||||
Employer matching contribution percentage on first 6% of deferred compensation | 100.00% | ||||
Percent of employee's compensation deferred that receives company match | 6.00% | ||||
Additional safe harbor contribution by employer, percent | 3.00% | ||||
401(k) expenses | $ 176,000 | $ 181,000 | $ 582,000 | $ 592,000 | |
Deferred Compensation Plan [Abstract] | |||||
Number of directors participating in Deferred Compensation Plan | Director | 0 | 0 | 0 | 0 | |
Bank-owned life insurance | $ 90,000 | $ 92,000 | $ 270,000 | $ 275,000 | |
Accrued liability for deferred compensation program | 155,000 | 155,000 | $ 153,000 | ||
Former Key Employee [Member] | |||||
Deferred Compensation Plan [Abstract] | |||||
Deferred compensation expense | 6,000 | 20,000 | 21,000 | 57,000 | |
Bank-owned life insurance | 7,000 | 7,000 | 21,000 | 21,000 | |
Cash surrender value of life insurance policies | 1,400,000 | $ 1,400,000 | 1,400,000 | ||
Maximum [Member] | |||||
401(k) Plan [Abstract] | |||||
Employer matching contribution | 6.00% | ||||
Deferred Compensation Plan [Abstract] | |||||
Number of installments for contributions | Installment | 5 | ||||
Minimum [Member] | |||||
Deferred Compensation Plan [Abstract] | |||||
Number of installments for contributions | Installment | 1 | ||||
Supplemental Executive Retirement Plan [Member] | |||||
Supplemental Executive Retirement Plan [Abstract] | |||||
Pension liability | 2,900,000 | $ 2,900,000 | $ 2,900,000 | ||
Pension expense | $ 71,000 | $ 75,000 | $ 213,000 | $ 222,000 |
Fair Value Measurement - Summar
Fair Value Measurement - Summary of Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Available for sale securities | $ 84,590 | $ 79,783 |
Obligations of U.S. Government Corporations and Agencies [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 63,815 | 63,941 |
Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 20,775 | 15,842 |
Fair Value on a Recurring Basis [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 84,590 | 79,783 |
Mutual funds | 419 | 403 |
Total | 85,009 | 80,186 |
Liabilities [Abstract] | ||
Interest rate swaps | 634 | 140 |
Total | 634 | 140 |
Fair Value on a Recurring Basis [Member] | Obligations of U.S. Government Corporations and Agencies [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 63,815 | 63,941 |
Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 20,775 | 15,842 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Mutual funds | 419 | 403 |
Total | 74,092 | 46,744 |
Liabilities [Abstract] | ||
Interest rate swaps | 0 | 0 |
Total | 0 | 0 |
Level 1 [Member] | Fair Value on a Recurring Basis [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Mutual funds | 419 | 403 |
Total | 419 | 403 |
Liabilities [Abstract] | ||
Interest rate swaps | 0 | 0 |
Total | 0 | 0 |
Level 1 [Member] | Fair Value on a Recurring Basis [Member] | Obligations of U.S. Government Corporations and Agencies [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Level 1 [Member] | Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 84,590 | 79,783 |
Mutual funds | 0 | 0 |
Total | 103,526 | 97,991 |
Liabilities [Abstract] | ||
Interest rate swaps | 634 | 140 |
Total | 758,334 | 643,822 |
Level 2 [Member] | Fair Value on a Recurring Basis [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 84,590 | 79,783 |
Mutual funds | 0 | 0 |
Total | 84,590 | 79,783 |
Liabilities [Abstract] | ||
Interest rate swaps | 634 | 140 |
Total | 634 | 140 |
Level 2 [Member] | Fair Value on a Recurring Basis [Member] | Obligations of U.S. Government Corporations and Agencies [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 63,815 | 63,941 |
Level 2 [Member] | Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 20,775 | 15,842 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Mutual funds | 0 | 0 |
Total | 630,236 | 541,367 |
Liabilities [Abstract] | ||
Interest rate swaps | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | Fair Value on a Recurring Basis [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Mutual funds | 0 | 0 |
Total | 0 | 0 |
Liabilities [Abstract] | ||
Interest rate swaps | 0 | 0 |
Total | 0 | 0 |
Level 3 [Member] | Fair Value on a Recurring Basis [Member] | Obligations of U.S. Government Corporations and Agencies [Member] | ||
Assets [Abstract] | ||
Available for sale securities | 0 | 0 |
Level 3 [Member] | Fair Value on a Recurring Basis [Member] | Obligations of States and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Available for sale securities | $ 0 | $ 0 |
Fair Value Measurement - Additi
Fair Value Measurement - Additional Information (Details) - Fair Value on a Nonrecurring Basis [Member] - USD ($) | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Level 3 [Member] | ||||
Financial Assets Recorded on a Nonrecurring Basis [Abstract] | ||||
Minimum age of appraisal of real estate property for fair value to be considered Level 3 | 1 year | |||
Mortgage Loans Held for Sale [Member] | ||||
Financial Assets Recorded on a Nonrecurring Basis [Abstract] | ||||
Nonrecurring fair value adjustments | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurement - Summ_2
Fair Value Measurement - Summary of Financial Assets Measured at Fair Value on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | $ 0 | $ 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | 235 | 247 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | 0 | 0 |
Fair Value on a Nonrecurring Basis [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | 235 | 247 |
Impaired loans, net | 1,220 | 1,570 |
Other real estate owned, net | 1,356 | 1,356 |
Fair Value on a Nonrecurring Basis [Member] | Level 1 [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | 0 | 0 |
Impaired loans, net | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Fair Value on a Nonrecurring Basis [Member] | Level 2 [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | 235 | 247 |
Impaired loans, net | 0 | 0 |
Other real estate owned, net | 0 | 0 |
Fair Value on a Nonrecurring Basis [Member] | Level 3 [Member] | ||
Assets [Abstract] | ||
Mortgage loans held for sale | 0 | 0 |
Impaired loans, net | 1,220 | 1,570 |
Other real estate owned, net | $ 1,356 | $ 1,356 |
Fair Value Measurement - Summ_3
Fair Value Measurement - Summary of Quantitative Information About Level 3 Fair Value Measurements (Details) - Level 3 [Member] $ in Thousands | 9 Months Ended | 12 Months Ended |
Sep. 30, 2020USD ($) | Dec. 31, 2019USD ($) | |
Quantitative Information About Level 3 Fair Value Measurements [Abstract] | ||
Fair Value | $ 630,236 | $ 541,367 |
Fair Value on a Nonrecurring Basis [Member] | ||
Quantitative Information About Level 3 Fair Value Measurements [Abstract] | ||
Fair Value | 2,576 | 2,926 |
Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member] | Appraised Values [Member] | ||
Quantitative Information About Level 3 Fair Value Measurements [Abstract] | ||
Fair Value | $ 1,220 | $ 1,570 |
Unobservable Input | Age of appraisal, current market conditions, experience within local market | Age of appraisal, current market conditions, experience within local market |
Fair Value on a Nonrecurring Basis [Member] | Impaired Loans [Member] | Appraised Values [Member] | Weighted Average [Member] | ||
Quantitative Information About Level 3 Fair Value Measurements [Abstract] | ||
Weighted Average Discount | 0.05 | 0.13 |
Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member] | Appraised Values [Member] | ||
Quantitative Information About Level 3 Fair Value Measurements [Abstract] | ||
Fair Value | $ 1,356 | $ 1,356 |
Unobservable Input | Age of appraisal, current market conditions and selling costs | Age of appraisal, current market conditions and selling costs |
Fair Value on a Nonrecurring Basis [Member] | Other Real Estate Owned [Member] | Appraised Values [Member] | Weighted Average [Member] | ||
Quantitative Information About Level 3 Fair Value Measurements [Abstract] | ||
Weighted Average Discount | 0.18 | 0.18 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Sep. 30, 2020 | Dec. 31, 2019 |
Assets [Abstract] | ||
Securities available for sale | $ 84,590 | $ 79,783 |
Level 1 [Member] | ||
Assets [Abstract] | ||
Cash and short-term investments | 73,673 | 46,341 |
Securities available for sale | 0 | 0 |
Restricted investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Loans, net | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Mutual funds | 419 | 403 |
Bank-owned life insurance | 0 | 0 |
Total | 74,092 | 46,744 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Total | 0 | 0 |
Level 2 [Member] | ||
Assets [Abstract] | ||
Cash and short-term investments | 0 | 0 |
Securities available for sale | 84,590 | 79,783 |
Restricted investments | 1,835 | 2,016 |
Mortgage loans held for sale | 235 | 247 |
Loans, net | 0 | 0 |
Accrued interest receivable | 2,635 | 1,984 |
Mutual funds | 0 | 0 |
Bank-owned life insurance | 14,231 | 13,961 |
Total | 103,526 | 97,991 |
Liabilities [Abstract] | ||
Deposits | 740,308 | 622,295 |
FHLB advances | 13,199 | 16,724 |
Junior subordinated debt | 4,058 | 4,446 |
Accrued interest payable | 135 | 217 |
Interest rate swaps | 634 | 140 |
Total | 758,334 | 643,822 |
Level 3 [Member] | ||
Assets [Abstract] | ||
Cash and short-term investments | 0 | 0 |
Securities available for sale | 0 | 0 |
Restricted investments | 0 | 0 |
Mortgage loans held for sale | 0 | 0 |
Loans, net | 630,236 | 541,367 |
Accrued interest receivable | 0 | 0 |
Mutual funds | 0 | 0 |
Bank-owned life insurance | 0 | 0 |
Total | 630,236 | 541,367 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
FHLB advances | 0 | 0 |
Junior subordinated debt | 0 | 0 |
Accrued interest payable | 0 | 0 |
Interest rate swaps | 0 | 0 |
Total | 0 | 0 |
Carrying Amount [Member] | ||
Assets [Abstract] | ||
Cash and short-term investments | 73,673 | 46,341 |
Securities available for sale | 84,590 | 79,783 |
Restricted investments | 1,835 | 2,016 |
Mortgage loans held for sale | 235 | 247 |
Loans, net | 631,402 | 544,999 |
Accrued interest receivable | 2,635 | 1,984 |
Mutual funds | 419 | 403 |
Bank-owned life insurance | 14,231 | 13,961 |
Total | 809,020 | 689,734 |
Liabilities [Abstract] | ||
Deposits | 739,834 | 622,155 |
FHLB advances | 12,629 | 16,695 |
Junior subordinated debt | 4,124 | 4,124 |
Accrued interest payable | 135 | 217 |
Interest rate swaps | 634 | 140 |
Total | 757,356 | 643,331 |
Fair Value [Member] | ||
Assets [Abstract] | ||
Cash and short-term investments | 73,673 | 46,341 |
Securities available for sale | 84,590 | 79,783 |
Restricted investments | 1,835 | 2,016 |
Mortgage loans held for sale | 235 | 247 |
Loans, net | 630,236 | 541,367 |
Accrued interest receivable | 2,635 | 1,984 |
Mutual funds | 419 | 403 |
Bank-owned life insurance | 14,231 | 13,961 |
Total | 807,854 | 686,102 |
Liabilities [Abstract] | ||
Deposits | 740,308 | 622,295 |
FHLB advances | 13,199 | 16,724 |
Junior subordinated debt | 4,058 | 4,446 |
Accrued interest payable | 135 | 217 |
Interest rate swaps | 634 | 140 |
Total | $ 758,334 | $ 643,822 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Loss) - Summary of Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Sep. 30, 2020 | Sep. 30, 2019 | |
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance | $ 67,122 | $ 60,007 |
Other comprehensive income (loss) before reclassifications | 1,799 | 1,897 |
Balance | 72,207 | 65,976 |
Gains (Losses) on Cash Flow Hedges [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance | (78) | 172 |
Other comprehensive income (loss) before reclassifications | (348) | (369) |
Balance | (426) | (197) |
Unrealized Gains (Losses) on Available for Sale Securities [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance | 1,292 | (850) |
Other comprehensive income (loss) before reclassifications | 2,147 | 2,266 |
Balance | 3,439 | 1,416 |
Supplemental Executive Retirement Plans [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance | 157 | 140 |
Balance | 157 | 140 |
Accumulated Other Comprehensive Income (Loss) [Member] | ||
Changes in Accumulated Other Comprehensive Income [Roll Forward] | ||
Balance | 1,371 | (538) |
Balance | $ 3,170 | $ 1,359 |
Investment in Affordable Hous_2
Investment in Affordable Housing Projects - Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | Dec. 31, 2019 | |
Schedule Of Equity Method Investments [Line Items] | |||||
Year in which investments are expected to be paid | 2023 | 2023 | |||
Tax credits and other benefits recognized | $ 350,000 | $ 414,000 | |||
Losses from investments in affordable housing projects | $ 89,000 | $ 47,000 | 317,000 | $ 191,000 | |
Other Assets [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Investments in affordable housing projects | 3,900,000 | 3,900,000 | $ 4,200,000 | ||
Other Liabilities [Member] | |||||
Schedule Of Equity Method Investments [Line Items] | |||||
Capital call for investments in affordable housing projects | $ 397,000 | $ 397,000 | $ 749,000 |
Leases - Schedule of Informatio
Leases - Schedule of Information about Leases (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Sep. 30, 2020 | Sep. 30, 2019 | Sep. 30, 2020 | Sep. 30, 2019 | |
Leases [Abstract] | ||||
Lease liability | $ 4,697 | $ 4,697 | ||
Right-of-use asset | $ 4,634 | $ 4,634 | ||
Weighted average remaining lease term | 8 years 14 days | 8 years 14 days | ||
Weighted average discount rate | 3.55% | 3.55% | ||
Lease Expense | ||||
Operating lease expense | $ 200 | $ 200 | $ 611 | $ 610 |
Short-term lease expense | 7 | 5 | 16 | 11 |
Total lease expense | 207 | 205 | 627 | 621 |
Cash paid for amounts included in lease liabilities | $ 168 | $ 165 | $ 502 | $ 533 |
Leases - Maturity Schedule of U
Leases - Maturity Schedule of Undiscounted Cash Flows Contribute to Lease Liability (Details) $ in Thousands | Sep. 30, 2020USD ($) |
Leases [Abstract] | |
Three months ending December 31, 2020 | $ 112 |
Twelve months ending December 31, 2021 | 682 |
Twelve months ending December 31, 2022 | 694 |
Twelve months ending December 31, 2023 | 707 |
Twelve months ending December 31, 2024 | 646 |
Thereafter | 2,603 |
Total undiscounted cash flows | 5,444 |
Less: Discount | (747) |
Lease liability | $ 4,697 |