Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 07, 2020 | |
Document and Entity Information: | ||
Entity Registrant Name | AMERICAN RIVER BANKSHARES | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2020 | |
Amendment Flag | false | |
Entity Central Index Key | 0001108236 | |
Current Fiscal Year End Date | --12-31 | |
Entity Common Stock, Shares Outstanding | 5,918,375 | |
Entity Filer Category | Accelerated Filer | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Interactive Data Current | Yes | |
Entity Incorporation State Country Code | CA | |
Entity File Number | 0-31525 |
CONSOLIDATED BALANCE SHEET (Una
CONSOLIDATED BALANCE SHEET (Unaudited) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and due from banks | $ 15,272 | $ 15,258 |
Interest-bearing deposits in banks | 11,400 | 2,552 |
Total cash and cash equivalents | 26,672 | 17,810 |
Investment securities: | ||
Available-for-sale, at fair value | 255,624 | 261,965 |
Held-to-maturity, at amortized cost fair value of $261 in 2020 and $266 in 2019 | 240 | 248 |
Loans, less allowance for loan losses of $5,637 at March 31, 2020 and $5,138 at December 31, 2019 | 388,044 | 393,802 |
Premises and equipment, net | 996 | 1,191 |
Federal Home Loan Bank stock | 4,259 | 4,259 |
Goodwill | 16,321 | 16,321 |
Other real estate owned | 846 | 846 |
Bank owned life insurance | 15,847 | 15,763 |
Accrued interest receivable and other assets | 7,204 | 8,148 |
Total Assets | 716,053 | 720,353 |
Deposits: | ||
Noninterest bearing | 229,793 | 227,055 |
Interest-bearing | 373,343 | 377,782 |
Total deposits | 603,136 | 604,837 |
Short-term borrowings | 5,000 | 9,000 |
Long-term borrowings | 10,500 | 10,500 |
Accrued interest payable and other liabilities | 10,563 | 13,107 |
Total liabilities | 629,199 | 637,444 |
Commitments and contingencies | ||
Shareholders' equity: | ||
Preferred stock, no par value; 10,000,000 shares authorized; none outstanding | 0 | 0 |
Common stock, no par value; 20,000,000 shares authorized; issued and outstanding - 5,903,228 shares at September 30, 2019 and 5,858,428 shares at December 31, 2018 | 30,634 | 30,536 |
Retained earnings | 51,600 | 50,581 |
Accumulated other comprehensive income (loss), net of taxes | 4,620 | 1,792 |
Total shareholders' equity | 86,854 | 82,909 |
Total liabilities and shareholders' euity | $ 716,053 | $ 720,353 |
CONSOLIDATED BALANCE SHEET (U_2
CONSOLIDATED BALANCE SHEET (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Amortized cost fair value | $ 261 | $ 266 |
Allowance for loan and lease losses (in dollars) | $ 5,637 | $ 5,138 |
Preferred stock, no par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, no par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 5,918,375 | 5,898,878 |
Common stock, shares outstanding | 5,918,375 | 5,898,878 |
CONSOLIDATED STATEMENT OF INCOM
CONSOLIDATED STATEMENT OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest and fees on loans: | ||
Taxable | $ 4,675 | $ 3,818 |
Exempt from Federal income taxes | 230 | 149 |
Interest on Federal funds sold | 0 | 5 |
Interest on deposits in banks | 34 | 44 |
Interest and dividends on investment securities: | ||
Taxable | 1,739 | 2,024 |
Exempt from Federal income taxes | 37 | 92 |
Total interest income | 6,715 | 6,132 |
Interest expense: | ||
Interest on deposits | 440 | 489 |
Interest on borrowings | 87 | 94 |
Total interest expense | 527 | 583 |
Net interest income | 6,188 | 5,549 |
Provision for loan and lease losses | 495 | 180 |
Net interest income after provision for loan and lease losses | 5,693 | 5,369 |
Noninterest income: | ||
Service charges on deposit accounts | 155 | 121 |
Gain on sale of securities | 38 | 36 |
Other noninterest income | 259 | 254 |
Total noninterest income | 452 | 411 |
Noninterest expense: | ||
Salaries and employee benefits | 2,865 | 2,781 |
Occupancy | 256 | 257 |
Furniture and equipment | 143 | 140 |
Federal Deposit Insurance Corporation assessments | 27 | 50 |
Expenses related to other real estate owned | 5 | 4 |
Other expense | 920 | 1,028 |
Total noninterest expense | 4,216 | 4,260 |
Income before provision for income taxes | 1,929 | 1,520 |
Provision for income taxes | 497 | 374 |
Net income | $ 1,432 | $ 1,146 |
Basic earnings per share | $ 0.24 | $ 0.20 |
Diluted earnings per share | $ 0.24 | $ 0.20 |
CONSOLIDATED STATEMENT OF COMPR
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,432 | $ 1,146 |
Other comprehensive income (loss): | ||
Increase in net unrealized gains on investment securities | 4,053 | 2,626 |
Deferred tax expense | (1,198) | (776) |
Increase in net unrealized gains on investment securities, net of tax | 2,855 | 1,850 |
Reclassification adjustment for realized gains included in net income | (38) | (36) |
Tax effect | 11 | 10 |
Realized gains, net of tax | (27) | (26) |
Total other comprehensive income (loss) | 2,828 | 1,824 |
Comprehensive income (loss) | $ 4,260 | $ 2,970 |
CONSOLIDATED STATEMENT OF CHANG
CONSOLIDATED STATEMENT OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Common Stock | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Begining balance, shares at Dec. 31, 2018 | 5,858,428 | |||
Begining balance, amount at Dec. 31, 2018 | $ 30,103 | $ 46,494 | $ (1,876) | $ 74,721 |
Net income | 1,146 | 1,146 | ||
Other comprehensive income, net of tax: Net change in unrealized gains on available-for-sale investment securities | 1,824 | 1,824 | ||
Cash dividends | (293) | (293) | ||
Net restricted stock award activity and related compensation expense, shares | 18,394 | |||
Net restricted stock award activity and related compensation expense, amount | $ 79 | 79 | ||
Stock options exercised, shares | 11,140 | |||
Stock options exercised, amount | $ 95 | 95 | ||
Stock option compensation expense, amount | $ 4 | 4 | ||
Ending balance, shares at Mar. 31, 2019 | 5,887,962 | |||
Ending balance, amount at Mar. 31, 2019 | $ 30,281 | 47,347 | (52) | 77,576 |
Begining balance, shares at Dec. 31, 2019 | 5,898,878 | |||
Begining balance, amount at Dec. 31, 2019 | $ 30,536 | 50,581 | 1,792 | 82,909 |
Net income | 1,432 | 1,432 | ||
Other comprehensive income, net of tax: Net change in unrealized gains on available-for-sale investment securities | 2,828 | 2,828 | ||
Cash dividends | (413) | (413) | ||
Net restricted stock award activity and related compensation expense, shares | 19,497 | |||
Net restricted stock award activity and related compensation expense, amount | $ 96 | 96 | ||
Stock option compensation expense, amount | $ 2 | 2 | ||
Ending balance, shares at Mar. 31, 2020 | 5,918,375 | |||
Ending balance, amount at Mar. 31, 2020 | $ 30,634 | $ 51,600 | $ 4,620 | $ 86,854 |
CONSOLIDATED STATEMENT OF CASH
CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash flows from operating activities: | ||
Net income | $ 1,432 | $ 1,146 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for loan and lease losses | 495 | 180 |
Decrease in deferred loan origination fees and costs, net | (64) | (231) |
Depreciation and amortization | 219 | 66 |
Gain on sale and call of investment securities | (38) | (36) |
Amortization of investment security premiums and discounts, net | 304 | 404 |
Increase in cash surrender values of life insurance policies | (84) | (81) |
Stock based compensation expense | 98 | 83 |
(Increase)decrease in accrued interest receivable and other assets | (407) | 349 |
Decrease in accrued interest payable and other liabilities | (2,380) | (656) |
Net cash provided by operating activities | (425) | 1,224 |
Cash flows from investing activities: | ||
Proceeds from the sale of available-for-sale investment securities | 4,229 | 2,022 |
Proceeds from matured available-for-sale investment securities | 0 | 3,000 |
Purchases of available-for-sale investment securities | (4,987) | (4,702) |
Proceeds from principal repayments for available-for-sale investment securities | 10,848 | 10,232 |
Proceeds from principal repayments for held-to-maturity investment securities | 8 | 15 |
Net decrease (increase) in loans | 8,164 | (11,746) |
Purchases of loans | (2,837) | (5,694) |
Purchases of equipment | (24) | (146) |
Net cash used in investing activities | 15,401 | (7,019) |
Cash flows from financing activities: | ||
Net increase (decrease) in demand, interest-bearing and savings deposits | 1,193 | (17,895) |
Net decrease in time deposits | (2,894) | (400) |
(Decrease) increase in short-term borrowings | (4,000) | 14,000 |
Proceeds from stock option exercise | 0 | 95 |
Cash dividends paid | (412) | (293) |
Net cash provided by financing activities | (6,114) | (4,493) |
Increase (decrease) in cash and cash equivalents | 8,862 | (10,288) |
Cash and cash equivalents at beginning of year | 17,810 | 27,733 |
Cash and cash equivalents at end of period | 26,672 | 19,445 |
Supplemental noncash disclosures: | ||
Right of use asset and obligation recorded upon adoption of ASU 2016-02 | 0 | 3,570 |
Cash paid during the year for interest expense | 533 | 551 |
Cash paid during the year for income taxes | $ 0 | $ 0 |
1. CONSOLIDATED FINANCIAL STATE
1. CONSOLIDATED FINANCIAL STATEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
CONSOLIDATED FINANCIAL STATEMENTS | In the opinion of management, the unaudited consolidated financial statements contain all adjustments (consisting of only normal recurring adjustments) necessary to present fairly the consolidated financial position of American River Bankshares (the “Company”) at March 31, 2020 and December 31, 2019, the results of its operations and its cash flows for the three-month periods ended March 31, 2020 and 2019 in conformity with accounting principles generally accepted in the United States of America. Certain disclosures normally presented in the notes to the annual consolidated financial statements prepared in accordance with accounting principles generally accepted in the United States of America have been omitted. The Company believes that the disclosures are adequate to make the information not misleading. These interim consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s annual report on Form 10-K for the year ended December 31, 2019. The results of operations for the three-month period ended March 31, 2020 may not necessarily be indicative of the operating results for the full year. In preparing such financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and revenues and expenses for the period. Actual results could differ significantly from those estimates. Management has determined that since all of the banking products and services offered by the Company are available in each branch office of American River Bank, all branch offices are located within the same economic environment and management does not allocate resources based on the performance of different lending or transaction activities, it is appropriate to aggregate all of the branch offices and report them as a single operating segment. No client accounts for more than ten percent (10%) of revenues for the Company or American River Bank. |
2. STOCK-BASED COMPENSATION
2. STOCK-BASED COMPENSATION | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
STOCK-BASED COMPENSATION | Equity Plans On March 17, 2010, the Board of Directors adopted the 2010 Equity Incentive Plan (the “2010 Plan”). The 2010 Plan was approved by the Company’s shareholders on May 20, 2010. At March 31, 2020 there were 29,958 stock options and 54,468 restricted shares outstanding. The 2010 Plan expired by its term on March 17, 2020. Accordingly, outstanding awards under the 2010 Plan are exercisable and will continue to vest until their expiration, but no new awards may be granted under the 2010 Plan. The 2010 Plan provided for the following types of stock-based awards: incentive stock options, nonqualified stock options, stock appreciation rights, restricted stock, restricted performance stock, unrestricted Company stock, and performance units. Under the 2010 Plan, the awards were granted to employees and directors under incentive and nonqualified option agreements, restricted stock agreements, and other awards agreements. The unvested restricted stock under the 2010 Plan have dividend and voting rights. The 2010 Plan required that the option price may not be less than the fair market value of the stock at the date the option is awarded. The option awards expire on dates determined by the Board of Directors, but not later than ten years from the date of award. The vesting period is generally five years; however, the vesting period can be modified at the discretion of the Company’s Board of Directors. Outstanding option awards are exercisable until their expiration. New shares are issued upon exercise of an option. The award date fair value of awards is determined by the market price of the Company’s common stock on the date of award and is recognized ratably as compensation expense or director expense over the vesting periods. The shares of common stock awarded pursuant to such agreements vest in increments over one to five years from the date of award. The shares awarded to employees and directors under the restricted stock agreements vest on the applicable vesting dates only to the extent the recipient of the shares is then an employee or a director of the Company or one of its subsidiaries, and each recipient will forfeit shares that have not vested on the date his or her employment or service is terminated. Equity Compensation For the three-month periods ended March 31, 2020 and 2019, the compensation cost recognized for equity compensation was $98,000 and $83,000, respectively. The recognized tax benefit for equity compensation expense was $26,000 and $21,000, for the three-month periods ended March 31, 2020 and 2019, respectively. At March 31, 2020, the total compensation cost related to nonvested stock option awards not yet recorded is $1,000. This amount will be recognized over the next 0.25 years and the weighted average period of recognizing these costs is expected to be 0.1 years. At March 31, 2020, the total compensation cost related to restricted stock awards not yet recorded is $591,000. This amount will be recognized over the next 4.2 years and the weighted average period of recognizing these costs is expected to be 1.3 years. Equity Plans Activity Stock Options There were no stock options awarded during the three-month periods ended March 31, 2020 and 2019. A summary of option activity under the Plans as of March 31, 2020 and changes during the period then ended is presented below: Options Shares Weighted Weighted Aggregate Outstanding at January 1, 2020 29,958 $ 8.79 4.4 years $ 182 Granted — — — — Exercised — — — — Expired, forfeited or cancelled — — — — Outstanding at March 31, 2020 29,958 $ 8.79 4.2 years $ 8 Vested at March 31, 2020 27,735 $ 8.73 4.1 years $ 8 Non-vested at March 31, 2020 2,223 $ 9.56 5.1 years $ — Restricted Stock There were 19,497 shares of restricted stock awarded during the three-month period ended March 31, 2020 and 18,394 shares of restricted stock awarded during the three-month period ended March 31, 2019. There were 9,000 and 3,864 restricted stock awards that were fully vested during the three-month periods ended March 31, 2020 and 2019, respectively. The intrinsic value of nonvested restricted stock at March 31, 2020 was $470,000. Restricted Stock Shares Weighted Nonvested at January 1, 2020 43,971 $ 13.95 Awarded 19,497 14.64 Less: Vested 9,000 14.59 Less: Expired, forfeited or cancelled — — Nonvested at March 31, 2020 54,468 $ 14.09 Other Equity Awards There were no stock appreciation rights, restricted performance stock, unrestricted Company stock, or performance units awarded during the three-month periods ended March 31, 2020 or 2019 or outstanding at March 31, 2020 or December 31, 2019. The intrinsic value used for stock options and restricted stock was derived from the market price of the Company’s common stock of $8.62 as of March 31, 2020. |
3. COMMITMENTS AND CONTINGENCIE
3. COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | In the normal course of business there are outstanding various commitments to extend credit which are not reflected in the financial statements, including loan commitments of approximately $30,524,000 and standby letters of credit of approximately $60,000 at March 31, 2020 and loan commitments of approximately $40,324,000 and standby letters of credit of approximately $300,000 at December 31, 2019. Such commitments relate primarily to real estate construction loans, revolving lines of credit and other commercial loans. However, all such commitments will not necessarily culminate in actual extensions of credit by the Company during 2020 as some of these are expected to expire without being fully drawn upon. Standby letters of credit are commitments issued to guarantee the performance or financial obligation of a client to a third party. These guarantees are issued primarily relating to purchases of inventory, insurance programs, performance obligations to government agencies, or as security for real estate rents by commercial clients and are typically short-term in nature. Credit risk is similar to that involved in extending loan commitments to clients and accordingly, evaluation and collateral requirements similar to those for loan commitments are used. The majority of all such commitments are collateralized. The fair value of the liability related to these standby letters of credit, which represents the fees received for issuing the guarantees, was not significant at March 31, 2020 or December 31, 2019. |
4. EARNINGS PER SHARE COMPUTATI
4. EARNINGS PER SHARE COMPUTATION | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
EARNINGS PER SHARE COMPUTATION | Basic earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period (5,858,919 shares and 5,836,579 shares for the three-month periods ended March 31, 2020 and 2019, respectively). Diluted earnings per share reflect the potential dilution that could occur if securities or other contracts to issue common stock, such as stock options or restricted stock, result in the issuance of common stock. Diluted earnings per share is computed by dividing net income by the weighted average common shares outstanding for the period plus the dilutive effect of stock based awards (24,657 shares for the three-month period ended March 31, 2020 and 21,048 shares for the three-month period ended March 31, 2019). For the three-month periods ended March 31, 2020 and 2019, there were zero stock options that were excluded from the calculation as they were considered antidilutive. Earnings per share is retroactively adjusted for stock dividends and stock splits, if applicable, for all periods presented. |
5. INVESTMENT SECURITIES
5. INVESTMENT SECURITIES | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
INVESTMENT SECURITIES | The amortized cost and estimated fair values of investment securities at March 31, 2020 and December 31, 2019 consisted of the following (dollars in thousands): Available-for-Sale March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 229,280 $ 7,529 $ (1,421 ) $ 235,388 Obligations of states and political subdivisions 13,290 310 (2 ) 13,598 Corporate bonds 6,496 147 (5 ) 6,638 $ 249,066 $ 7,986 $ (1,428 ) $ 255,624 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 239,617 $ 3,371 $ (1,101 ) $ 241,887 Obligations of states and political subdivisions 13,308 212 (73 ) 13,447 Corporate bonds 6,496 135 — 6,631 $ 259,421 $ 3,718 $ (1,174 ) $ 261,965 Net unrealized gains on available-for-sale investment securities totaling $6,558,000 were recorded, net of $1,938,000 in tax liabilities, as accumulated other comprehensive income within shareholders’ equity at March 31, 2020. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2020 totaled $4,229,000 and $38,000, respectively. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2020. Net unrealized gains on available-for-sale investment securities totaling $2,544,000 were recorded, net of $752,000 in tax liabilities, as accumulated other comprehensive loss within shareholders’ equity at December 31, 2019. Proceeds and gross realized gains from the sale and call of available-for-sale investment securities for the three-month period ended March 31, 2019 totaled $2,022,000 and $36,000, respectively. There were no transfers of available-for-sale investment securities for the three-month period ended March 31, 2019. Held-to-Maturity March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 240 $ 21 $ — $ 261 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 248 $ 18 $ — $ 266 There were no sales or transfers of held-to-maturity investment securities for the periods ended March 31, 2020 and March 31, 2019. Investment securities with unrealized losses at March 31, 2020 and December 31, 2019 are summarized and classified according to the duration of the loss period as follows (dollars in thousands): March 31, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 39,050 $ (693 ) $ 22,708 $ (728 ) $ 61,758 $ (1,421 ) Obligations of states and political subdivisions 1,507 (2 ) — — 1,507 (2 ) Corporate bonds 2,491 (5 ) — — 2,491 (5 ) $ 43,048 $ (700 ) $ 22,708 $ (728 ) $ 65,756 $ (1,428 ) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 65,082 $ (438 ) $ 38,380 $ (663 ) $ 103,462 $ (1,101 ) Obligations of states and political subdivisions 8,060 (73 ) — — 8,060 (73 ) $ 73,142 $ (511 ) $ 38,380 $ (663 ) $ 111,522 $ (1,174 ) There were no held-to-maturity investment securities with unrealized losses as of March 31, 2020 or December 31, 2019. At March 31, 2020, the Company held 204 securities of which 22 were in a loss position for less than twelve months and 17 were in a loss position for twelve months or more. These 17 securities consisted of mortgage-backed, corporate and municipal securities. At December 31, 2019, the Company held 205 securities of which 41 were in a loss position for less than twelve months and 29 were in a loss position for twelve months or more. These 29 securities consisted of mortgage-backed, corporate and municipal securities. The unrealized loss on the Company’s investment securities is primarily driven by interest rates. Because the decline in market value is attributable to a change in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until recovery of fair value, which may be until maturity, management does not consider these investments to be other-than-temporarily impaired. The amortized cost and estimated fair values of investment securities at March 31, 2020 by contractual maturity are shown below (dollars in thousands). Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated Within one year $ 500 $ 498 After one year through five years 2,937 2,940 After five years through ten years 10,395 10,673 After ten years 5,954 6,125 19,786 20,236 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Agencies 229,280 235,388 $ 240 $ 261 $ 249,066 $ 255,624 $ 240 $ 261 Expected maturities will differ from contractual maturities because the issuers of the securities may have the right to call or prepay obligations with or without call or prepayment penalties. |
6. IMPAIRED AND NONPERFORMING L
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | 3 Months Ended |
Mar. 31, 2020 | |
Loan and Lease Receivables, Impaired [Abstract] | |
IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED | At March 31, 2020 and December 31, 2019, the recorded investment in nonperforming loans was zero in both periods. Nonperforming loans include all such loans that are either placed on nonaccrual status or are 90 days past due as to principal or interest but still accrue interest because such loans are well-secured and in the process of collection. At March 31, 2020 and December 31, 2019, the recorded investment in other assets was zero and $517,000, respectively. During the first quarter of 2020, the Company sold the repossessed automobile that was in the other assets category at December 31, 2019 for $517,000. Nonperforming loans and other assets and OREO at March 31, 2020 and December 31, 2019 are summarized as follows (in thousands): March 31, December 31, Nonaccrual loans that are current to terms (less than 30 days past due) $ — $ — Nonaccrual loans that are past due — — Loans past due 90 days and accruing interest — — Other real estate owned 846 846 Other assets — 517 Total nonperforming assets $ 846 $ 1,363 Nonperforming loans to total loans — — Total nonperforming assets to total assets 0.12 % 0.19 % The Company considers a loan to be impaired when, based on current information and events, it is probable that it will be unable to collect all amounts due (principal and interest) according to the contractual terms of the original loan agreement. Impaired loans as of and for the periods ended March 31, 2020 and December 31, 2019 are summarized as follows: (in thousands) As of March 31, 2020 As of December 31, 2019 Recorded Investment Unpaid Balance Related Allowance Recorded Investment Unpaid Balance Related Allowance With no related allowance recorded: Real estate-commercial $ 5,502 $ 5,636 $ — $ 5,530 $ 5,664 $ — Real estate-residential 316 403 — 318 405 — Subtotal $ 5,818 $ 6,039 $ — $ 5,848 $ 6,069 $ — With an allowance recorded: Real estate-commercial $ 1,596 $ 1,667 $ 126 1,622 1,693 133 Real estate-residential 130 130 8 134 134 9 Subtotal $ 1,726 $ 1,797 $ 134 $ 1,756 $ 1,827 $ 142 Total: Real estate-commercial $ 7,098 $ 7,303 $ 126 $ 7,152 $ 7,357 $ 133 Real estate-residential 446 533 8 452 539 9 $ 7,544 $ 7,836 $ 134 $ 7,604 $ 7,896 $ 142 The following table presents the average balance related to impaired loans for the periods indicated (in thousands): Average Recorded Investments March 31, March 31, Real estate-commercial $ 7,125 $ 7,823 Real estate-residential 449 915 Total $ 7,574 $ 8,738 The following table presents the interest income recognized on impaired loans for the periods indicated (in thousands): Interest Income Recognized March 31, March 31, Real estate-commercial $ 106 $ 114 Real estate-residential 7 11 Total $ 113 $ 125 |
7. TROUBLED DEBT RESTRUCTURINGS
7. TROUBLED DEBT RESTRUCTURINGS | 3 Months Ended |
Mar. 31, 2020 | |
Troubled Debt Restructuring, Debtor, Current Period [Abstract] | |
TROUBLED DEBT RESTRUCTURINGS | During the periods ended March 31, 2020 and 2019, there were no loans that were modified as troubled debt restructurings. There were no payment defaults during the three months ended March 31, 2020 or March 31, 2019 on troubled debt restructurings made in the preceding twelve months. At March 31, 2020 and December 31, 2019, there were no unfunded commitments on those loans considered troubled debt restructures. See also “Impaired Loans” in Item 2. |
8. ALLOWANCE FOR LOAN AND LEASE
8. ALLOWANCE FOR LOAN AND LEASE LOSSES | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
ALLOWANCE FOR LOAN AND LEASE LOSSES | The Company’s loan portfolio allocated by management’s internal risk ratings as of March 31, 2020 and December 31, 2019 are summarized below: March 31, 2020 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,000 $ 211,866 $ 52,082 $ 20,871 $ 28,538 Watch 37 4,291 — — 598 Special mention 4,850 — — — — Substandard — 134 — — — Doubtful or loss — — — — — Total $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,411 $ 26,587 $ 384,355 Watch — 73 4,999 Special mention — — 4,850 Substandard — — 134 Doubtful or loss — — — Total $ 6,411 $ 26,660 $ 394,338 December 31, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,085 $ 208,140 $ 56,818 $ 23,169 $ 28,570 Watch 4,915 6,329 — — 610 Special mention 19 — — — — Substandard — 135 — — — Doubtful or loss — — — — — Total $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,479 $ 26,317 $ 387,578 Watch — 75 11,929 Special mention — — 19 Substandard — — 135 Doubtful or loss — — — Total $ 6,479 $ 26,392 $ 399,661 The allocation of the Company’s allowance for loan losses and by portfolio segment and by impairment methodology are summarized below: March 31, 2020 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Beginning balance, January 1, 2020 $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 245 $ 5,138 Provision for loan losses 63 349 64 (98 ) 56 (4 ) 58 7 495 Loans charged-off — — — — — — — — — Recoveries 1 3 — — — — — — 4 Ending balance, March 31, 2020 $ 1,014 $ 2,258 $ 393 $ 888 $ 337 $ 103 $ 392 $ 252 $ 5,637 Ending balance: Individually evaluated for impairment $ — $ 126 $ — $ — $ 8 $ — $ — $ — $ 134 Ending balance: Collectively evaluated for impairment $ 1,014 $ 2,132 $ 393 $ 888 $ 329 $ 103 $ 392 $ 252 $ 5,503 Loans Ending balance $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 $ 6,411 $ 26,660 $ — $ 394,338 Ending balance: Individually evaluated for impairment $ — $ 7,098 $ — $ — $ 446 $ — $ — $ — $ 7,544 Ending balance: Collectively evaluated for impairment $ 42,887 $ 209,193 $ 52,082 $ 20,871 $ 28,690 $ 6,411 $ 26,660 $ — $ 386,794 December 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Ending balance $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 142 $ 5,138 Ending balance: Individually evaluated for impairment $ — $ 133 $ — $ — $ 9 $ — $ — $ — $ 142 Ending balance: Collectively evaluated for impairment $ 950 $ 1,773 $ 329 $ 986 $ 272 $ 107 $ 334 $ 245 $ 4,996 Loans Ending balance $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 $ 6,479 $ 26,392 $ — $ 399,661 Ending balance: Individually evaluated for impairment $ — $ 7,152 $ — $ — $ 452 $ — $ — $ — $ 7,604 Ending balance: Collectively evaluated for impairment $ 43,019 $ 207,452 $ 56,818 $ 23,169 $ 28,728 $ 6,479 $ 26,392 $ — $ 392,057 March 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 88 $ 192 $ 279 $ 4,392 Provision for loan losses (9 ) (86 ) (144 ) 141 129 80 65 4 180 Loans charged-off — — — — — — — — — Recoveries 2 3 — — — — — — 5 Ending balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ 168 $ 257 $ 283 $ 4,577 The Company’s aging analysis of the loan portfolio at March 31, 2020 and December 31, 2019 are summarized below: March 31, 2020 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ 4,834 $ — $ — $ 4,834 $ 38,053 $ 42,887 $ — $ — Real estate: Commercial 810 — — 810 215,481 216,291 — — Multi-family — — — — 52,082 52,082 — — Construction — — — — 20,871 20,871 — — Residential — — — — 29,136 29,136 — — Other: Agriculture — — — — 6,411 6,411 — — Consumer 36 — — 36 26,624 26,660 — — Total $ 5,680 $ — $ — $ 5,680 $ 388,658 $ 394,338 $ — $ — December 31, 2019 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 43,019 $ 43,019 $ — $ — Real estate: Commercial — — — — 214,604 214,604 — — Multi-family — — — — 56,818 56,818 — — Construction — — — — 23,169 23,169 — — Residential — — — — 29,180 29,180 — — Other: Agriculture — — — — 6,479 6,479 — — Consumer 75 — — — 26,317 26,392 — — Total $ 75 $ — $ — $ — $ 399,586 $ 399,661 $ — $ — |
9. LEASES
9. LEASES | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
LEASES | The Company adopted ASU 2016-02, Leases (Topic 842), The Company leases nine locations for administrative offices and branch locations. All leases were classified as operating leases. Leases with an initial term of 12 months or less are not recorded on the balance sheet and the related lease expense is recognized on a straight-line basis over the lease term. The Company elected to use the practical expedient to not recognize short-term leases on the consolidated balance sheet and instead account for them as executory contracts. Certain leases include options to renew, with renewal terms that can extend the lease term, typically for five years. Lease assets and liabilities include related options that are reasonably certain of being exercised, however, in the case of those leases that have renewal options, the Company is not including those additional lease terms as the rates are undeterminable and it has been the Company’s historical practice to renegotiate lease terms upon expiration of the original lease terms. The depreciable life of leased assets is limited by the expected lease term. Adoption of this standard resulted in the Company recognizing a right of use asset and a corresponding lease liability of $3,570,000 on January 1, 2019. Supplemental lease information at or for the three months ended March 31, 2020 is as follows: Balance Sheet Operating lease asset classified as other assets $ 2,717,000 Operating lease liability classified as other liabilities 2,932,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 190,000 Weighted average lease term, in years 5.47 Weighted average discount rate (1) 2.98 % Operating cash flows $ 194,000 (1) The discount rate was developed by using the fixed rate credit advance borrowing rate at the Federal Home Loan Bank of San Francisco for a term correlating to the remaining life of each lease. A maturity analysis of the Company’s lease liabilities at March 31, 2020 was as follows: Balance April 1, 2020 to December 31, 2020 $ 579,000 January 1, 2021 to December 31, 2021 739,000 January 1, 2022 to December 31, 2022 707,000 January 1, 2023 to December 31, 2023 282,000 January 1, 2024 to December 31, 2024 273,000 Thereafter 657,000 Total lease payments 3,237,000 Less: Interest (305,000 ) Present value of lease liabilities $ 2,932,000 |
10. BORROWING ARRANGEMENTS
10. BORROWING ARRANGEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
BORROWING ARRANGEMENTS | At March 31, 2020 and December 31, 2019, the Company had $17,000,000 of unsecured short-term borrowing arrangements with two of its correspondent banks. There were no advances under the borrowing arrangements as of March 31, 2020 or December 31, 2019. The Company has a line of credit available with the Federal Home Loan Bank of San Francisco (the “FHLB”) which is secured by pledged mortgage loans and investment securities. Borrowings may include overnight advances as well as loans with terms of up to thirty years. Advances (both short-term and long-term) totaling $15,500,000 were outstanding from the FHLB at March 31, 2020, bearing interest rates ranging from 1.31% to 3.17% and maturing between July 13, 2020 and November 24, 2023. Advances totaling $19,500,000 were outstanding from the FHLB at December 31, 2019, bearing interest rates ranging from 1.31% to 3.17% and maturing between January 1, 2020 and November 24, 2023. Remaining amounts available under the borrowing arrangement with the FHLB at March 31, 2020 and December 31, 2019 totaled $144,547,000 and $143,406,000, respectively. In addition, the Company has a secured borrowing agreement with the Federal Reserve Bank of San Francisco. The borrowing can be secured by pledging selected loans and investment securities. Borrowings generally are short-term including overnight advances as well as loans with terms up to ninety days. Amounts available under this borrowing arrangement at March 31, 2020 and December 31, 2019 were $6,527,000 and $8,642,000, respectively. There were no advances outstanding under this borrowing arrangement as of March 31, 2020 and December 31, 2019. |
11. INCOME TAXES
11. INCOME TAXES | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | The Company files its income taxes on a consolidated basis with its subsidiaries. The allocation of income tax expense (benefit) represents each entity’s proportionate share of the consolidated provision for (benefit from) income taxes. The Company accounts for income taxes using the balance sheet method, under which deferred tax assets and liabilities are recognized for the tax consequences of temporary differences between the reported amounts of assets and liabilities and their respective tax basis. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. On the consolidated balance sheet, net deferred tax assets are included in accrued interest receivable and other assets. The benefit of a tax position is recognized in the financial statements in the period during which, based on all available evidence, management believes it is more likely than not that the position will be sustained upon examination, including the resolution of appeals or litigation processes, if any. Tax positions that meet the more-likely-than-not recognition threshold are measured as the largest amount of tax benefit that is more than 50 percent likely of being realized upon settlement with the applicable taxing authority. The portion of the benefits associated with tax positions taken that exceeds the amount measured as described above, if applicable, is reflected as a liability for unrecognized tax benefits in the accompanying balance sheet along with any associated interest and penalties that would be payable to the taxing authorities upon examination. The Company recognizes accrued interest and penalties related to unrecognized tax benefits, if applicable, as a component of interest expense in the consolidated statement of income. There have been no unrecognized tax benefits or accrued interest and penalties for the three-month periods ended March 31, 2020 and 2019. |
12. FAIR VALUE MEASUREMENTS
12. FAIR VALUE MEASUREMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | The following tables present information about the Company’s assets and liabilities measured at fair value on a recurring and nonrecurring basis as of March 31, 2020 and December 31, 2019. They indicate the fair value hierarchy of the valuation techniques utilized by the Company to determine such fair value. The authoritative accounting guidance for fair value measurements defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants. The fair value measurement is the exchange price to sell the asset or transfer the liability (exit price) in the principal market for the asset or liability or, in the absence of a principal market, the most advantageous market for the asset or liability. The price in the principal (or most advantageous) market used to measure the fair value of the asset or liability shall not be adjusted for transaction costs. An orderly transaction is a transaction that assumes exposure to the market for a period prior to the measurement date to allow for marketing activities that are usual and customary for transactions involving such assets and liabilities; it is not a forced transaction. Market participants are buyers and sellers in the principal market that are (i) independent, (ii) knowledgeable, (iii) able to transact, and (iv) willing to transact. The authoritative accounting guidance requires the use of valuation techniques that are consistent with the market approach, the income approach and/or the cost approach. The market approach uses prices and other relevant information generated by market transactions involving identical or comparable assets and liabilities. The income approach uses valuation techniques to convert future amounts, such as cash flows or earnings, to a single present amount on a discounted basis. The cost approach is based on the amount that currently would be required to replace the service capacity of an asset (replacement costs). Valuation techniques should be consistently applied. Inputs to valuation techniques refer to the assumptions that market participants would use in pricing the asset or liability. Inputs may be observable, meaning those that reflect the assumptions market participants would use in pricing the asset or liability developed based on market data obtained from independent sources, or unobservable, meaning those that reflect the reporting entity’s own assumptions about the assumptions market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. In that regard, the authoritative guidance establishes a fair value hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair value hierarchy is as follows: · Level 1 Inputs – Unadjusted quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. · Level 2 Inputs – Inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either directly or indirectly. These include quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, inputs other than quoted prices that are observable for the asset or liability (for example, interest rates, volatilities, prepayment speeds, loss severities, credit risks and default rates) or inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 Inputs – Significant unobservable inputs that reflect an entity’s own assumptions that market participants would use in pricing the assets or liabilities. A description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy, is set forth below. In general, fair value is based upon quoted market prices, where available. If such quoted market prices are not available, fair value is based upon internally developed models that primarily use, as inputs, observable market-based parameters. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. While management believes the Company’s valuation methodologies are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Securities classified as available-for-sale are reported at fair value utilizing Level 1 and Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market spreads, cash flows, the United States Treasury yield curve, live trading levels, trade execution data, dealer quotes, market consensus prepayments speeds, credit information and the security’s terms and conditions, among other items. The carrying amounts and estimated fair values of the Company’s financial instruments are as follows (dollars in thousands): Carrying Fair Value Measurements Using: March 31, 2020 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,272 $ 15,272 $ — $ — $ 15,272 Interest-bearing deposits in banks 11,400 11,400 — — 11,400 Available-for-sale securities 255,624 — 255,624 — 255,624 Held-to-maturity securities 240 — 261 — 261 FHLB stock 4,259 N/A N/A N/A N/A Net loans 388,044 — — 399,333 399,333 Accrued interest receivable 2,012 — 731 1,281 2,012 Financial liabilities: Deposits: Noninterest-bearing $ 229,793 $ 229,793 $ — $ — $ 229,793 Savings 72,800 72,800 — — 72,800 Money market 162,184 162,184 — — 162,184 NOW accounts 67,444 67,444 — — 67,444 Time Deposits 70,915 — 71,206 — 71,206 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10,500 — 10,797 — 10,797 Accrued interest payable 114 6 108 — 114 Carrying Fair Value Measurements Using: December 31, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,258 $ 15,258 $ — $ — $ 15,258 Interest-bearing deposits in banks 2,552 2,552 — — 2,552 Available-for-sale securities 261,965 — 261,965 — 261,965 Held-to-maturity securities 248 — 266 — 266 FHLB stock 4,259 N/A N/A N/A N/A Net loans: 393,802 — — 396,089 396,089 Accrued interest receivable 1,929 — 780 1,149 1,929 Financial liabilities: Deposits: Noninterest-bearing $ 227,055 $ 227,055 $ — $ — $ 227,055 Savings 75,820 75,820 — — 75,820 Money market 158,319 158,319 — — 158,319 NOW accounts 69,834 69,834 — — 69,834 Time Deposits 73,809 — 73,924 — 73,924 Short-term borrowings 9,000 9,000 — — 9,000 Long-term borrowings 10.500 — 10,714 — 10,714 Accrued interest payable 120 — 120 — 120 Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the fair values presented. Assets and liabilities measured at fair value on a recurring and non-recurring basis are presented in the following table: Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) March 31, 2020 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Entities $ 235,388 $ — $ 235,388 $ — $ — Obligations of states and political subdivisions 13,598 — 13,598 — — Corporate Debt securities 6,638 — 6,638 — — Total recurring $ 255,624 $ — $ 255,624 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other real estate owned Land $ 846 $ — $ — $ 846 $ — Total nonrecurring $ 846 $ — $ — $ 846 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 241,887 $ — $ 241,887 $ — $ — Corporate Debt securities 6,631 — 6,631 Obligations of states and political subdivisions 13,447 — 13,447 — — Total recurring $ 261,965 $ — $ 261,965 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other assets: Repossessed asset $ 517 $ — $ — $ 517 $ — Other real estate owned Land 846 — — 846 — Total nonrecurring $ 1,363 $ — $ — $ 1,363 $ — There were no transfers between Levels 1 and 2 during the three-month period ended March 31, 2020 or the twelve months ended December 31, 2019. The following methods were used to estimate the fair value of each class of financial instrument above: Available-for-sale securities – Impaired loans Other assets and real estate owned |
13. RECENTLY ISSUED ACCOUNTING
13. RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS | In June 2016, the Financial Accounting Standards Board (the “FASB”) issued ASU No. 2016-13, “ Measurement of Credit Losses on Financial Instruments. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820). – Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement.” |
14. NOVEL CORONAVIRUS PANDEMIC
14. NOVEL CORONAVIRUS PANDEMIC (COVID-19) | 3 Months Ended |
Mar. 31, 2020 | |
Novel Coronavirus Pandemic | |
NOVEL CORNOAVIRUS PANDEMIC (COVID-19) | The COVID-19 pandemic has placed significant health, economic and other major pressure throughout the communities we serve, the state of California, the United States and the entire world. We have implemented a number of procedures in response to the pandemic to support the safety and wellbeing of our employees and clients, that continue through the date of this report: · We have addressed the safety of our ten branches and our corporate office, following the guidelines of the Center for Disease Control. While the branches generally remain open to clients, we have taken steps, and continue to evaluate those steps, to push as much traffic and transactions as possible to our digital and electronic channels and our night depositories, and many of our employees can and are working remotely ; · We hold executive meetings to address issues that change rapidly; · We have provided extensions and deferrals to borrowers requesting such extensions and deferrals and who have demonstrated adverse effects from COVID-19 provided such clients were not 30 days past due; and · We have been participating in the Small Business Administration’s (“SBA’s”) Paycheck Protection Program (“PPP”) under the Coronavirus Aid, Relief and Economic Security (“CARES”) Act to help provide potentially forgivable loans to our business clients to provide them with additional working capital to enable them to retain their employees. Through May 4, 2020, we have received SBA approval to fund approximately 470 PPP loans totaling $80 million. We believe these loans and our participation in the program are good for our clients and the communities we serve. We continue to closely monitor this pandemic and expect to make future changes to respond to the pandemic as this situation continues to evolve. The potential financial impact is unknown at this time. However, if the economic downturn currently being experienced is sustained, it may adversely impact industries within our business footprint and impair the ability of the Company’s borrowers to fulfill their contractual obligations and reduce our opportunity to create new client relationships. This could cause the Company to experience a material adverse effect to its business operations, asset valuations, financial condition and results of operations. Material adverse effects may include valuation impairments on the Company’s loans, investments, goodwill, or deferred tax assets. |
2. STOCK-BASED COMPENSATION (Ta
2. STOCK-BASED COMPENSATION (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement, Noncash Expense [Abstract] | |
Schedule of share-based compensation, stock options, activity | Options Shares Weighted Weighted Aggregate Outstanding at January 1, 2020 29,958 $ 8.79 4.4 years $ 182 Granted — — — — Exercised — — — — Expired, forfeited or cancelled — — — — Outstanding at March 31, 2020 29,958 $ 8.79 4.2 years $ 8 Vested at March 31, 2020 27,735 $ 8.73 4.1 years $ 8 Non-vested at March 31, 2020 2,223 $ 9.56 5.1 years $ — |
Schedule of nonvested share activity | Restricted Stock Shares Weighted Nonvested at January 1, 2020 43,971 $ 13.95 Awarded 19,497 14.64 Less: Vested 9,000 14.59 Less: Expired, forfeited or cancelled — — Nonvested at March 31, 2020 54,468 $ 14.09 |
5. INVESTMENT SECURITIES (Table
5. INVESTMENT SECURITIES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investments [Abstract] | |
Available-for-sale securities | Available-for-Sale March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 229,280 $ 7,529 $ (1,421 ) $ 235,388 Obligations of states and political subdivisions 13,290 310 (2 ) 13,598 Corporate bonds 6,496 147 (5 ) 6,638 $ 249,066 $ 7,986 $ (1,428 ) $ 255,624 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 239,617 $ 3,371 $ (1,101 ) $ 241,887 Obligations of states and political subdivisions 13,308 212 (73 ) 13,447 Corporate bonds 6,496 135 — 6,631 $ 259,421 $ 3,718 $ (1,174 ) $ 261,965 |
Held-to-maturity securities | Held-to-Maturity March 31, 2020 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 240 $ 21 $ — $ 261 December 31, 2019 Amortized Gross Gross Estimated Debt securities: US Government Agencies and Sponsored Agencies $ 248 $ 18 $ — $ 266 |
Available-for-sale securities, continuous unrealized loss position, fair value | March 31, 2020 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 39,050 $ (693 ) $ 22,708 $ (728 ) $ 61,758 $ (1,421 ) Obligations of states and political subdivisions 1,507 (2 ) — — 1,507 (2 ) Corporate bonds 2,491 (5 ) — — 2,491 (5 ) $ 43,048 $ (700 ) $ 22,708 $ (728 ) $ 65,756 $ (1,428 ) December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized Available-for-Sale Debt securities: US Government Agencies and Sponsored Agencies $ 65,082 $ (438 ) $ 38,380 $ (663 ) $ 103,462 $ (1,101 ) Obligations of states and political subdivisions 8,060 (73 ) — — 8,060 (73 ) $ 73,142 $ (511 ) $ 38,380 $ (663 ) $ 111,522 $ (1,174 ) |
Available-for-sale securities, debt maturities, basis of allocation | Available-for-Sale Held-to-Maturity Amortized Estimated Amortized Estimated Within one year $ 500 $ 498 After one year through five years 2,937 2,940 After five years through ten years 10,395 10,673 After ten years 5,954 6,125 19,786 20,236 Investment securities not due at a single maturity date: US Government Agencies and Sponsored Agencies 229,280 235,388 $ 240 $ 261 $ 249,066 $ 255,624 $ 240 $ 261 |
6. IMPAIRED AND NONPERFORMING_2
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loan and Lease Receivables, Impaired [Abstract] | |
Schedule of nonperforming loans and other assets and OREO | March 31, December 31, Nonaccrual loans that are current to terms (less than 30 days past due) $ — $ — Nonaccrual loans that are past due — — Loans past due 90 days and accruing interest — — Other real estate owned 846 846 Other assets — 517 Total nonperforming assets $ 846 $ 1,363 Nonperforming loans to total loans — — Total nonperforming assets to total assets 0.12 % 0.19 % |
Schedule of impaired financing receivables | (in thousands) As of March 31, 2020 As of December 31, 2019 Recorded Investment Unpaid Balance Related Allowance Recorded Investment Unpaid Balance Related Allowance With no related allowance recorded: Real estate-commercial $ 5,502 $ 5,636 $ — $ 5,530 $ 5,664 $ — Real estate-residential 316 403 — 318 405 — Subtotal $ 5,818 $ 6,039 $ — $ 5,848 $ 6,069 $ — With an allowance recorded: Real estate-commercial $ 1,596 $ 1,667 $ 126 1,622 1,693 133 Real estate-residential 130 130 8 134 134 9 Subtotal $ 1,726 $ 1,797 $ 134 $ 1,756 $ 1,827 $ 142 Total: Real estate-commercial $ 7,098 $ 7,303 $ 126 $ 7,152 $ 7,357 $ 133 Real estate-residential 446 533 8 452 539 9 $ 7,544 $ 7,836 $ 134 $ 7,604 $ 7,896 $ 142 |
Schedule of average balance recorded to imapired loans | Average Recorded Investments March 31, March 31, Real estate-commercial $ 7,125 $ 7,823 Real estate-residential 449 915 Total $ 7,574 $ 8,738 |
Schedule of interest income recognized on impaired loans | Interest Income Recognized March 31, March 31, Real estate-commercial $ 106 $ 114 Real estate-residential 7 11 Total $ 113 $ 125 |
8. ALLOWANCE FOR LOAN AND LEA_2
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of recorded investment evaluated based on internal risk ratings | March 31, 2020 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,000 $ 211,866 $ 52,082 $ 20,871 $ 28,538 Watch 37 4,291 — — 598 Special mention 4,850 — — — — Substandard — 134 — — — Doubtful or loss — — — — — Total $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,411 $ 26,587 $ 384,355 Watch — 73 4,999 Special mention — — 4,850 Substandard — — 134 Doubtful or loss — — — Total $ 6,411 $ 26,660 $ 394,338 December 31, 2019 Credit Risk Profile by Internally Assigned Grade (dollars in thousands) Real Estate Commercial Commercial Multi-family Construction Residential Grade: Pass $ 38,085 $ 208,140 $ 56,818 $ 23,169 $ 28,570 Watch 4,915 6,329 — — 610 Special mention 19 — — — — Substandard — 135 — — — Doubtful or loss — — — — — Total $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 Credit Risk Profile by Internally Assigned Agriculture Consumer Total Grade: Pass $ 6,479 $ 26,317 $ 387,578 Watch — 75 11,929 Special mention — — 19 Substandard — — 135 Doubtful or loss — — — Total $ 6,479 $ 26,392 $ 399,661 |
Summary of analysis of allowance for loan losses | March 31, 2020 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Beginning balance, January 1, 2020 $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 245 $ 5,138 Provision for loan losses 63 349 64 (98 ) 56 (4 ) 58 7 495 Loans charged-off — — — — — — — — — Recoveries 1 3 — — — — — — 4 Ending balance, March 31, 2020 $ 1,014 $ 2,258 $ 393 $ 888 $ 337 $ 103 $ 392 $ 252 $ 5,637 Ending balance: Individually evaluated for impairment $ — $ 126 $ — $ — $ 8 $ — $ — $ — $ 134 Ending balance: Collectively evaluated for impairment $ 1,014 $ 2,132 $ 393 $ 888 $ 329 $ 103 $ 392 $ 252 $ 5,503 Loans Ending balance $ 42,887 $ 216,291 $ 52,082 $ 20,871 $ 29,136 $ 6,411 $ 26,660 $ — $ 394,338 Ending balance: Individually evaluated for impairment $ — $ 7,098 $ — $ — $ 446 $ — $ — $ — $ 7,544 Ending balance: Collectively evaluated for impairment $ 42,887 $ 209,193 $ 52,082 $ 20,871 $ 28,690 $ 6,411 $ 26,660 $ — $ 386,794 December 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Allowance for Loan Losses Ending balance $ 950 $ 1,906 $ 329 $ 986 $ 281 $ 107 $ 334 $ 142 $ 5,138 Ending balance: Individually evaluated for impairment $ — $ 133 $ — $ — $ 9 $ — $ — $ — $ 142 Ending balance: Collectively evaluated for impairment $ 950 $ 1,773 $ 329 $ 986 $ 272 $ 107 $ 334 $ 245 $ 4,996 Loans Ending balance $ 43,019 $ 214,604 $ 56,818 $ 23,169 $ 29,180 $ 6,479 $ 26,392 $ — $ 399,661 Ending balance: Individually evaluated for impairment $ — $ 7,152 $ — $ — $ 452 $ — $ — $ — $ 7,604 Ending balance: Collectively evaluated for impairment $ 43,019 $ 207,452 $ 56,818 $ 23,169 $ 28,728 $ 6,479 $ 26,392 $ — $ 392,057 March 31, 2019 (dollars in thousands) Real Estate Other Commercial Commercial Multi-family Construction Residential Agriculture Consumer Unallocated Total Beginning balance, January 1, 2019 $ 668 $ 2,114 $ 564 $ 267 $ 220 88 $ 192 $ 279 $ 4,392 Provision for loan losses (9 ) (86 ) (144 ) 141 129 80 65 4 180 Loans charged-off — — — — — — — — — Recoveries 2 3 — — — — — — 5 Ending balance, March 31, 2019 $ 661 $ 2,031 $ 420 $ 408 $ 349 $ 168 $ 257 $ 283 $ 4,577 |
Summary of activity in allowance for loan losses by loan class | March 31, 2020 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ 4,834 $ — $ — $ 4,834 $ 38,053 $ 42,887 $ — $ — Real estate: Commercial 810 — — 810 215,481 216,291 — — Multi-family — — — — 52,082 52,082 — — Construction — — — — 20,871 20,871 — — Residential — — — — 29,136 29,136 — — Other: Agriculture — — — — 6,411 6,411 — — Consumer 36 — — 36 26,624 26,660 — — Total $ 5,680 $ — $ — $ 5,680 $ 388,658 $ 394,338 $ — $ — December 31, 2019 (dollars in thousands) 30-59 Days 60-89 Days Past Due Total Past Current Total Loans Past Due Nonaccrual Commercial: Commercial $ — $ — $ — $ — $ 43,019 $ 43,019 $ — $ — Real estate: Commercial — — — — 214,604 214,604 — — Multi-family — — — — 56,818 56,818 — — Construction — — — — 23,169 23,169 — — Residential — — — — 29,180 29,180 — — Other: Agriculture — — — — 6,479 6,479 — — Consumer 75 — — — 26,317 26,392 — — Total $ 75 $ — $ — $ — $ 399,586 $ 399,661 $ — $ — |
9. LEASES (Tables)
9. LEASES (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases [Abstract] | |
Supplemental lease information | Balance Sheet Operating lease asset classified as other assets $ 2,717,000 Operating lease liability classified as other liabilities 2,932,000 Income Statement Operating lease cost classified as occupancy and equipment expense $ 190,000 Weighted average lease term, in years 5.47 Weighted average discount rate (1) 2.98 % Operating cash flows $ 194,000 |
Maturity analysis of the company's lease liabilities | Balance April 1, 2020 to December 31, 2020 $ 579,000 January 1, 2021 to December 31, 2021 739,000 January 1, 2022 to December 31, 2022 707,000 January 1, 2023 to December 31, 2023 282,000 January 1, 2024 to December 31, 2024 273,000 Thereafter 657,000 Total lease payments 3,237,000 Less: Interest (305,000 ) Present value of lease liabilities $ 2,932,000 |
12. FAIR VALUE MEASUREMENTS (Ta
12. FAIR VALUE MEASUREMENTS (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of assets and associated liabilities accounted for as secured borrowings | Carrying Fair Value Measurements Using: March 31, 2020 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,272 $ 15,272 $ — $ — $ 15,272 Interest-bearing deposits in banks 11,400 11,400 — — 11,400 Available-for-sale securities 255,624 — 255,624 — 255,624 Held-to-maturity securities 240 — 261 — 261 FHLB stock 4,259 N/A N/A N/A N/A Net loans 388,044 — — 399,333 399,333 Accrued interest receivable 2,012 — 731 1,281 2,012 Financial liabilities: Deposits: Noninterest-bearing $ 229,793 $ 229,793 $ — $ — $ 229,793 Savings 72,800 72,800 — — 72,800 Money market 162,184 162,184 — — 162,184 NOW accounts 67,444 67,444 — — 67,444 Time Deposits 70,915 — 71,206 — 71,206 Short-term borrowings 5,000 5,000 — — 5,000 Long-term borrowings 10,500 — 10,797 — 10,797 Accrued interest payable 114 6 108 — 114 Carrying Fair Value Measurements Using: December 31, 2019 Amount Level 1 Level 2 Level 3 Total Financial assets: Cash and due from banks $ 15,258 $ 15,258 $ — $ — $ 15,258 Interest-bearing deposits in banks 2,552 2,552 — — 2,552 Available-for-sale securities 261,965 — 261,965 — 261,965 Held-to-maturity securities 248 — 266 — 266 FHLB stock 4,259 N/A N/A N/A N/A Net loans: 393,802 — — 396,089 396,089 Accrued interest receivable 1,929 — 780 1,149 1,929 Financial liabilities: Deposits: Noninterest-bearing $ 227,055 $ 227,055 $ — $ — $ 227,055 Savings 75,820 75,820 — — 75,820 Money market 158,319 158,319 — — 158,319 NOW accounts 69,834 69,834 — — 69,834 Time Deposits 73,809 — 73,924 — 73,924 Short-term borrowings 9,000 9,000 — — 9,000 Long-term borrowings 10.500 — 10,714 — 10,714 Accrued interest payable 120 — 120 — 120 |
Fair value measurements, recurring and nonrecurring, valuation techniques | Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) March 31, 2020 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Entities $ 235,388 $ — $ 235,388 $ — $ — Obligations of states and political subdivisions 13,598 — 13,598 — — Corporate Debt securities 6,638 — 6,638 — — Total recurring $ 255,624 $ — $ 255,624 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other real estate owned Land $ 846 $ — $ — $ 846 $ — Total nonrecurring $ 846 $ — $ — $ 846 $ — Description Fair Value Measurements Using Total Gains (dollars in thousands) Fair Value Level 1 Level 2 Level 3 (Losses) December 31, 2019 Assets and liabilities measured on a recurring basis: Available-for-sale securities: U.S. Government Agencies and Sponsored Agencies $ 241,887 $ — $ 241,887 $ — $ — Corporate Debt securities 6,631 — 6,631 Obligations of states and political subdivisions 13,447 — 13,447 — — Total recurring $ 261,965 $ — $ 261,965 $ — $ — Assets and liabilities measured on a nonrecurring basis: Other assets: Repossessed asset $ 517 $ — $ — $ 517 $ — Other real estate owned Land 846 — — 846 — Total nonrecurring $ 1,363 $ — $ — $ 1,363 $ — |
2. STOCK-BASED COMPENSATION (De
2. STOCK-BASED COMPENSATION (Details) - Options Shares $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($)$ / sharesshares | |
Outstanding, beginning | shares | 29,958 |
Granted | shares | 0 |
Exercised | shares | 0 |
Expired, forfeited or cancelled | shares | 0 |
Outstanding, ending | shares | 29,958 |
Number of options vested | shares | 27,735 |
Nonvested, shares | shares | 2,223 |
Weighted average exercise price, outstanding, beginning | $ / shares | $ 8.79 |
Granted | $ / shares | .00 |
Exercised | $ / shares | .00 |
Expired, forfeited or cancelled | $ / shares | .00 |
Weighted average exercise price, outstanding, ending | $ / shares | 8.79 |
Weighted average exercise price of vested stock options | $ / shares | 8.73 |
Weighted average exercise price of nonvested stock options | $ / shares | $ 9.56 |
Weighted years to maturity outstanding, beginning | 4 years 4 months 24 days |
Granted | 0 years |
Exercised | 0 years |
Expired, forfeited or cancelled | 0 years |
Weighted years to maturity outstanding, ending | 4 years 2 months 12 days |
Weighted average remaining contractual term in years, vested | 4 years 1 month 2 days |
Weighted average remaining contractual term in years, non-vested | 5 years 1 month 6 days |
Aggregate Intrinsic Value, options outstanding, beginning | $ | $ 182 |
Aggregate Intrinsic Value, options outstanding, ending | $ | 8 |
Aggregate Intrinsic Value, options vested | $ | 8 |
Aggregate Intrinsic Value, options non-vested | $ | $ 0 |
2. STOCK-BASED COMPENSATION (_2
2. STOCK-BASED COMPENSATION (Details 1) - Restricted Stock | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Restricted stock nonvested, beginning | shares | 43,971 |
Awarded | shares | 19,497 |
Less: vested | shares | 9,000 |
Less: expired, forfeited or cancelled | shares | 0 |
Restricted stock nonvested, ending | shares | 54,468 |
Weighted average grant date fair value nonvested, beginning | $ / shares | $ 13.95 |
Awarded | $ / shares | 14.64 |
Less: vested | $ / shares | 14.59 |
Less: expired, forfeited or cancelled | $ / shares | 0 |
Weighted average grant date fair value nonvested, ending | $ / shares | $ 14.09 |
2. STOCK-BASED COMPENSATION (_3
2. STOCK-BASED COMPENSATION (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share based compensation | $ 98 | $ 83 | |
Tax benefit of equity compensation expense | 26 | $ 21 | |
Compensation cost related to nonvested stock option awards not yet recorded | 1 | ||
Compensation cost related to restricted stock awards not yet recorded | 591 | ||
Intrinsic value of nonvested restricted stock | $ 470,000 | ||
Intrinsic value used for stock options and restricted stock | $ 8.62 | ||
Options Shares | |||
Stock options outstanding under Equity Incentive Plan | 29,958 | 29,958 | |
Period for recognition | 4 months | ||
Weighted average costs is expected period | 1 month 6 days | ||
Restricted Stock | |||
Stock options outstanding under Equity Incentive Plan | 54,468 | ||
Period for recognition | 4 years 2 months 12 days | ||
Weighted average costs is expected period | 1 year 3 months 18 days | ||
2010 Plan | |||
Authorized shares that remain available for issuance under the 2010 Plan | 0 |
3. COMMITMENTS AND CONTINGENC_2
3. COMMITMENTS AND CONTINGENCIES (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Commitments | ||
Loan Commitments | ||
Commitments | 30,524 | 40,324 |
Standby Letters of Credit | ||
Commitments | $ 60 | $ 300 |
4. EARNINGS PER SHARE COMPUTA_2
4. EARNINGS PER SHARE COMPUTATION (Details Narrative) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Earnings Per Share [Abstract] | ||
Weighted average common shares outstanding | 5,858,919 | 5,836,579 |
Dilutive effect of stock based awards | 24,657 | 21,048 |
Antidilutive stock option excluded from earnings per share | 0 | 0 |
5. INVESTMENT SECURITIES (Detai
5. INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Available for sale securities, amortized cost | $ 249,066 | $ 259,421 |
Available for sale securities, unrealized gains | 7,986 | 3,718 |
Available for sale securities, unrealized losses | (1,428) | (1,174) |
Available for sale securities, estimated fair value | 255,624 | 261,965 |
Held-to-maturity debt securities amortized cost | 240 | 248 |
Held-to-maturity debt securities gross unrealized gains | 21 | 18 |
Held-to-maturity debt securities gross unrealized losses | 0 | 0 |
Held-to-maturity debt securities estimated fair value | 261 | 266 |
US Government Agencies and Sponsored Agencies | ||
Available for sale securities, amortized cost | 229,280 | 239,617 |
Available for sale securities, unrealized gains | 7,529 | 3,371 |
Available for sale securities, unrealized losses | (1,421) | (1,101) |
Available for sale securities, estimated fair value | 235,388 | 241,887 |
Held-to-maturity debt securities amortized cost | 240 | 248 |
Held-to-maturity debt securities gross unrealized gains | 21 | 18 |
Held-to-maturity debt securities gross unrealized losses | 0 | 0 |
Held-to-maturity debt securities estimated fair value | 261 | 266 |
Obligations of States and Political Subdivisions | ||
Available for sale securities, amortized cost | 13,290 | 13,308 |
Available for sale securities, unrealized gains | 310 | 212 |
Available for sale securities, unrealized losses | (2) | (73) |
Available for sale securities, estimated fair value | 13,598 | 13,447 |
Corporate Bonds | ||
Available for sale securities, amortized cost | 6,496 | 6,496 |
Available for sale securities, unrealized gains | 147 | 135 |
Available for sale securities, unrealized losses | (5) | 0 |
Available for sale securities, estimated fair value | $ 6,638 | $ 6,631 |
5. INVESTMENT SECURITIES (Det_2
5. INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Less than 12 months, estimated fair value | $ 43,048 | $ 73,142 |
Less than 12 months, unrealized loss | 700 | (511) |
12 months or more, estimated fair value | 22,708 | 38,380 |
12 months or more, unrealized loss | (728) | (663) |
Total estimated fair value | 65,756 | 111,522 |
Total unrealized loss | (1,428) | (1,174) |
US Government Agencies and Sponsored Agencies | ||
Less than 12 months, estimated fair value | 39,050 | 65,082 |
Less than 12 months, unrealized loss | (693) | (438) |
12 months or more, estimated fair value | 22,708 | 38,380 |
12 months or more, unrealized loss | (728) | (663) |
Total estimated fair value | 61,758 | 103,462 |
Total unrealized loss | (1,421) | (1,101) |
Obligations of States and Political Subdivisions | ||
Less than 12 months, estimated fair value | 1,507 | 8,060 |
Less than 12 months, unrealized loss | (2) | (73) |
12 months or more, estimated fair value | 0 | 0 |
12 months or more, unrealized loss | 0 | 0 |
Total estimated fair value | 1,507 | 8,060 |
Total unrealized loss | (2) | (73) |
Corporate Bonds | ||
Less than 12 months, estimated fair value | 2,491 | 0 |
Less than 12 months, unrealized loss | (5) | 0 |
12 months or more, estimated fair value | 0 | 0 |
12 months or more, unrealized loss | 0 | 0 |
Total estimated fair value | 2,491 | 0 |
Total unrealized loss | $ (5) | $ 0 |
5. Disclosure - 5. INVESTMENT S
5. Disclosure - 5. INVESTMENT SECURITIES (Details 2) $ in Thousands | Mar. 31, 2020USD ($) |
Amortized Cost | |
Within one year | $ 500 |
After one year through five years | 2,937 |
After five years through ten years | 10,395 |
After ten years | 5,954 |
Total | 19,786 |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: available-for-sale | 249,066 |
Investment securities not due at a single maturity date: held-to-maturity | 240 |
Amortized Cost | US Government Agencies Debt Securities | |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: available-for-sale | 229,280 |
Investment securities not due at a single maturity date: held-to-maturity | 240 |
Estimated Fair Value | |
Within one year | 498 |
After one year through five years | 2,940 |
After five years through ten years | 10,673 |
After ten years | 6,125 |
Total | 20,236 |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: available-for-sale | 255,624 |
Investment securities not due at a single maturity date: held-to-maturity | 261 |
Estimated Fair Value | US Government Agencies Debt Securities | |
Investment securities not due at a single maturity date: | |
Investment securities not due at a single maturity date: available-for-sale | 235,388 |
Investment securities not due at a single maturity date: held-to-maturity | $ 261 |
6. IMPAIRED AND NONPERFORMING_3
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total nonperforming assets | $ 846 | $ 1,363 |
Nonperforming loans to total loans | 0.00% | 0.00% |
Total nonperforming assets to total assets | 12.00% | 19.00% |
Nonaccrual loans and leases that are current to terms (less than 30 days past due) | ||
Total nonperforming assets | $ 0 | $ 0 |
Nonaccrual loans and leases that are past due | ||
Total nonperforming assets | 0 | 0 |
Loans and leases past due 90 days and accruing interest | ||
Total nonperforming assets | 0 | 0 |
Other real estate owned | ||
Total nonperforming assets | 846 | 846 |
Other Assets | ||
Total nonperforming assets | $ 0 | $ 517 |
6. IMPAIRED AND NONPERFORMING_4
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 1) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
With no related allowance recorded: recorded investment | $ 5,818 | $ 5,848 |
With no related allowance recorded: unpaid principal balance | 6,039 | 6,069 |
With no related allowance recorded: related allowance | 0 | 0 |
With an allowance recorded: recorded investment | 1,726 | 1,756 |
With an allowance recorded: unpaid principal balance | 1,797 | 1,827 |
With an allowance recorded: related allowance | 134 | 142 |
Recorded investment | 7,544 | 7,604 |
Unpaid principal balance | 7,836 | 7,896 |
Related allowance | 134 | 142 |
Real Estate Commercial | ||
With no related allowance recorded: recorded investment | 5,502 | 5,530 |
With no related allowance recorded: unpaid principal balance | 5,636 | 5,664 |
With no related allowance recorded: related allowance | 0 | 0 |
With an allowance recorded: recorded investment | 1,596 | 1,622 |
With an allowance recorded: unpaid principal balance | 1,667 | 1,693 |
With an allowance recorded: related allowance | 126 | 133 |
Recorded investment | 7,098 | 7,152 |
Unpaid principal balance | 7,303 | 7,357 |
Related allowance | 126 | 133 |
Real Estate Residential | ||
With no related allowance recorded: recorded investment | 316 | 318 |
With no related allowance recorded: unpaid principal balance | 403 | 405 |
With no related allowance recorded: related allowance | 0 | 0 |
With an allowance recorded: recorded investment | 130 | 134 |
With an allowance recorded: unpaid principal balance | 130 | 134 |
With an allowance recorded: related allowance | 8 | 9 |
Recorded investment | 446 | 452 |
Unpaid principal balance | 533 | 539 |
Related allowance | $ 8 | $ 9 |
6. IMPAIRED AND NONPERFORMING_5
6. IMPAIRED AND NONPERFORMING LOANS AND LEASES AND OTHER REAL ESTATE OWNED (Details 2) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Impaired loans | $ 7,574 | $ 8,738 |
Interest income recognized on impaired loans and leases | 113 | 125 |
Real Estate Commercial | ||
Impaired loans | 7,125 | 7,823 |
Interest income recognized on impaired loans and leases | 106 | 114 |
Real Estate Residential | ||
Impaired loans | 449 | 915 |
Interest income recognized on impaired loans and leases | $ 7 | $ 11 |
8. ALLOWANCE FOR LOAN AND LEA_3
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total | $ 394,338 | $ 399,661 |
Commercial | ||
Total | 42,887 | 43,019 |
Real Estate Commercial | ||
Total | 216,291 | 214,604 |
Real Estate Multi-Family | ||
Total | 52,082 | 56,818 |
Real Estate Construction | ||
Total | 20,871 | 23,169 |
Real Estate Residential | ||
Total | 0 | 29,180 |
Agriculture | ||
Total | 6,411 | 6,479 |
Consumer | ||
Total | 0 | 26,392 |
Pass | ||
Total | 384,355 | 387,578 |
Pass | Commercial Loan | ||
Total | 38,000 | 208,140 |
Pass | Real Estate Commercial | ||
Total | 211,866 | 38,085 |
Pass | Real Estate Multi-Family | ||
Total | 52,082 | 56,818 |
Pass | Real Estate Construction | ||
Total | 20,871 | 23,169 |
Pass | Residential Real Estate | ||
Total | 28,538 | 28,570 |
Pass | Agriculture | ||
Total | 6,411 | 6,479 |
Pass | Consumer Loan | ||
Total | 26,587 | 26,317 |
Watch | ||
Total | 4,999 | 11,929 |
Watch | Commercial Loan | ||
Total | 37 | 6,329 |
Watch | Real Estate Commercial | ||
Total | 4,291 | 4,915 |
Watch | Real Estate Multi-Family | ||
Total | 0 | 0 |
Watch | Real Estate Construction | ||
Total | 0 | 0 |
Watch | Residential Real Estate | ||
Total | 598 | 610 |
Watch | Agriculture | ||
Total | 0 | 0 |
Watch | Consumer Loan | ||
Total | 73 | 75 |
Special Mention | ||
Total | 4,850 | 19 |
Special Mention | Commercial Loan | ||
Total | 4,850 | 0 |
Special Mention | Real Estate Commercial | ||
Total | 0 | 19 |
Special Mention | Real Estate Multi-Family | ||
Total | 0 | 0 |
Special Mention | Real Estate Construction | ||
Total | 0 | 0 |
Special Mention | Residential Real Estate | ||
Total | 0 | 0 |
Special Mention | Agriculture | ||
Total | 0 | 0 |
Special Mention | Consumer Loan | ||
Total | 0 | 0 |
Substandard | ||
Total | 134 | 135 |
Substandard | Commercial Loan | ||
Total | 0 | 135 |
Substandard | Real Estate Commercial | ||
Total | 134 | 0 |
Substandard | Real Estate Multi-Family | ||
Total | 0 | 0 |
Substandard | Real Estate Construction | ||
Total | 0 | 0 |
Substandard | Residential Real Estate | ||
Total | 0 | 0 |
Substandard | Agriculture | ||
Total | 0 | 0 |
Substandard | Consumer Loan | ||
Total | 0 | 0 |
Doubtful or Loss | ||
Total | 0 | 0 |
Doubtful or Loss | Commercial Loan | ||
Total | 0 | 0 |
Doubtful or Loss | Real Estate Commercial | ||
Total | 0 | 0 |
Doubtful or Loss | Real Estate Multi-Family | ||
Total | 0 | 0 |
Doubtful or Loss | Real Estate Construction | ||
Total | 0 | 0 |
Doubtful or Loss | Residential Real Estate | ||
Total | 0 | 0 |
Doubtful or Loss | Agriculture | ||
Total | 0 | 0 |
Doubtful or Loss | Consumer Loan | ||
Total | $ 0 | $ 0 |
8. ALLOWANCE FOR LOAN AND LEA_4
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 1) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Allowance for loan losses, beginning | $ 5,138 | $ 4,392 | |
Provision for loan losses | 495 | 180 | |
Loans charged off | 0 | 0 | |
Recoveries | 4 | 5 | |
Allowance for loan losses, ending | 5,637 | 4,577 | |
Allowance related to: loans individually evaluated for impairment | 134 | $ 142 | |
Allowance related to: loans collectively evaluated for impairment | 5,503 | 4,996 | |
Loans | 394,338 | 399,661 | |
Loans individually evaluated for impairment | 7,544 | 7,604 | |
Loans collectively evaluated for impairment | 386,794 | 392,057 | |
Commercial | |||
Allowance for loan losses, beginning | 950 | 668 | |
Provision for loan losses | 63 | (9) | |
Loans charged off | 0 | 0 | |
Recoveries | 1 | 2 | |
Allowance for loan losses, ending | 1,014 | 661 | |
Allowance related to: loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: loans collectively evaluated for impairment | 1,014 | 950 | |
Loans | 42,887 | 43,019 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 42,887 | 43,019 | |
Real Estate Commercial | |||
Allowance for loan losses, beginning | 1,906 | 2,114 | |
Provision for loan losses | 349 | (86) | |
Loans charged off | 0 | 0 | |
Recoveries | 3 | 3 | |
Allowance for loan losses, ending | 2,258 | 2,031 | |
Allowance related to: loans individually evaluated for impairment | 126 | 133 | |
Allowance related to: loans collectively evaluated for impairment | 2,132 | 1,773 | |
Loans | 216,291 | 214,604 | |
Loans individually evaluated for impairment | 7,098 | 7,152 | |
Loans collectively evaluated for impairment | 209,193 | 207,452 | |
Real Estate Multi-Family | |||
Allowance for loan losses, beginning | 329 | 564 | |
Provision for loan losses | 64 | (144) | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, ending | 393 | 420 | |
Allowance related to: loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: loans collectively evaluated for impairment | 393 | 329 | |
Loans | 52,082 | 56,818 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 52,082 | 56,818 | |
Real Estate Construction | |||
Allowance for loan losses, beginning | 986 | 267 | |
Provision for loan losses | (98) | 141 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, ending | 888 | 408 | |
Allowance related to: loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: loans collectively evaluated for impairment | 888 | 986 | |
Loans | 20,871 | 23,169 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 20,871 | 23,169 | |
Real Estate Residential | |||
Allowance for loan losses, beginning | 281 | 220 | |
Provision for loan losses | 56 | 129 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, ending | 337 | 349 | |
Allowance related to: loans individually evaluated for impairment | 8 | 9 | |
Allowance related to: loans collectively evaluated for impairment | 329 | 272 | |
Loans | 0 | 29,180 | |
Loans individually evaluated for impairment | 446 | 452 | |
Loans collectively evaluated for impairment | 28,690 | 28,728 | |
Agriculture | |||
Allowance for loan losses, beginning | 107 | 88 | |
Provision for loan losses | (4) | 80 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, ending | 103 | 168 | |
Allowance related to: loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: loans collectively evaluated for impairment | 103 | 107 | |
Loans | 6,411 | 6,479 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 6,411 | 6,479 | |
Consumer | |||
Allowance for loan losses, beginning | 334 | 192 | |
Provision for loan losses | 58 | 65 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, ending | 392 | 257 | |
Allowance related to: loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: loans collectively evaluated for impairment | 392 | 334 | |
Loans | 0 | 26,392 | |
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | 26,660 | 26,392 | |
Unallocated | |||
Allowance for loan losses, beginning | 245 | 279 | |
Provision for loan losses | 7 | 4 | |
Loans charged off | 0 | 0 | |
Recoveries | 0 | 0 | |
Allowance for loan losses, ending | 252 | $ 283 | |
Allowance related to: loans individually evaluated for impairment | 0 | 0 | |
Allowance related to: loans collectively evaluated for impairment | 252 | 245 | |
Loans | 0 | ||
Loans individually evaluated for impairment | 0 | 0 | |
Loans collectively evaluated for impairment | $ 0 | $ 0 |
8. ALLOWANCE FOR LOAN AND LEA_5
8. ALLOWANCE FOR LOAN AND LEASE LOSSES (Details 2) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total past due | $ 5,680 | $ 0 |
Current | 388,658 | 399,586 |
Total loans | 394,338 | 399,661 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
30 -59 Days Past Due | ||
Total past due | 5,680 | 0 |
60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 394,338 | |
Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Commercial | ||
Total past due | 4,834 | 0 |
Current | 38,053 | 43,019 |
Total loans | 42,887 | 43,019 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Commercial | 30 -59 Days Past Due | ||
Total past due | 4,834 | 0 |
Commercial | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 42,887 | |
Commercial | Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Real Estate Commercial | ||
Total past due | 810 | 0 |
Current | 215,481 | 214,604 |
Total loans | 216,291 | 214,604 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real Estate Commercial | 30 -59 Days Past Due | ||
Total past due | 810 | 0 |
Real Estate Commercial | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 216,291 | |
Real Estate Commercial | Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Real Estate Multi-Family | ||
Total past due | 0 | 0 |
Current | 52,082 | 56,818 |
Total loans | 52,082 | 56,818 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real Estate Multi-Family | 30 -59 Days Past Due | ||
Total past due | 0 | 0 |
Real Estate Multi-Family | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 52,082 | |
Real Estate Multi-Family | Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Real Estate Construction | ||
Total past due | 0 | 0 |
Current | 20,871 | 23,169 |
Total loans | 20,871 | 23,169 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real Estate Construction | 30 -59 Days Past Due | ||
Total past due | 0 | 0 |
Real Estate Construction | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 20,871 | |
Real Estate Construction | Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Real Estate Residential | ||
Total past due | 29,136 | 0 |
Current | 29,136 | 29,180 |
Total loans | 0 | 29,180 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Real Estate Residential | 30 -59 Days Past Due | ||
Total past due | 0 | 0 |
Real Estate Residential | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 0 | |
Real Estate Residential | Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Agriculture | ||
Total past due | 0 | 0 |
Current | 6,411 | 6,479 |
Total loans | 6,411 | 6,479 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Agriculture | 30 -59 Days Past Due | ||
Total past due | 0 | 0 |
Agriculture | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 6,411 | |
Agriculture | Past Due Greater Than 90 Days | ||
Total past due | 0 | 0 |
Current | 0 | |
Consumer | ||
Total past due | 26,624 | 0 |
Current | 26,660 | 26,317 |
Total loans | 0 | 26,392 |
Past due greater than 90 days and accruing | 0 | 0 |
Nonaccrual | 0 | 0 |
Consumer | 30 -59 Days Past Due | ||
Total past due | 36 | 0 |
Consumer | 60 -89 Days Past Due | ||
Total past due | 0 | 0 |
Current | 0 | |
Consumer | Past Due Greater Than 90 Days | ||
Total past due | 36 | $ 0 |
Current | $ 0 |
9. LEASES (Details)
9. LEASES (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Balance Sheet | |
Operating lease asset classified as premises and equipment | $ 2,717 |
Operating lease liability classified as other liabilities | 2,932 |
Income Statement | |
Operating lease cost classified as occupancy and equipment expense | $ 190 |
Weighted average lease term, in years | 5 years 5 months 19 days |
Weighted average discount rate | 2.98% |
Operating cash flows | $ 194 |
9. LEASES (Details 1)
9. LEASES (Details 1) $ in Thousands | Mar. 31, 2020USD ($) |
Leases [Abstract] | |
April 1, 2020 to December 31, 2020 | $ 579 |
January 1, 2021 to December 31, 2021 | 739 |
January 1, 2022 to December 31, 2022 | 707 |
January 1, 2023 to December 31, 2023 | 282 |
January 1, 2024 to December 31, 2024 | 273 |
Thereafter | 657 |
Total lease payments | 3,237 |
Less: interest | (305) |
Present value of lease liabilities | $ 2,932 |
10. BORROWING ARRANGEMENTS (Det
10. BORROWING ARRANGEMENTS (Details Narrative) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Debt Disclosure [Abstract] | ||
Unsecured short-term borrowing arrangements with two of its correspondent banks | $ 17,000 | |
FHLB advances | $ 15,500 | |
Federal Home Loan Bank, advances, Branch of FHLB Bank, interest rate, minimum | 1.31% | |
Federal Home Loan Bank, advances, Branch of FHLB Bank, interest rate, maximum | 3.17% | |
Remaining amounts available under the borrowing arrangement with the FHLB | $ 144,547 | $ 143,406 |
Secured borrowing agreement with the Federal Reserve Bank of San Francisco | $ 6,527 | $ 8,642 |
12. FAIR VALUE MEASUREMENTS (De
12. FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets: | ||
Cash and due from banks | $ 15,272 | $ 15,258 |
Interest-bearing deposits in banks | 11,400 | 2,552 |
Available-for-sale securities | 255,624 | 261,965 |
Held-to-maturity securities | 261 | 266 |
FHLB stock | 4,259 | 4,259 |
Net loans | 399,333 | 396,089 |
Accrued interest receivable | 2,012 | 1,929 |
Deposits: | ||
Noninterest-bearing | 229,793 | 227,055 |
Savings | 72,800 | 75,820 |
Money market | 162,184 | 158,319 |
NOW accounts | 67,444 | 69,834 |
Time deposits | 71,206 | 73,924 |
Short-term borrowings | 5,000 | 9,000 |
Long-term borrowings | 10,797 | 10,714 |
Accrued interest payable | 114 | 120 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 15,272 | 15,258 |
Interest-bearing deposits in banks | 11,400 | 2,552 |
Available-for-sale securities | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
FHLB stock | 0 | 0 |
Net loans | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits: | ||
Noninterest-bearing | 229,793 | 227,055 |
Savings | 72,800 | 75,820 |
Money market | 162,184 | 158,319 |
NOW accounts | 67,444 | 69,834 |
Time deposits | 0 | 0 |
Short-term borrowings | 5,000 | 9,000 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 6 | 0 |
Level 2 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in banks | 0 | 0 |
Available-for-sale securities | 255,624 | 261,965 |
Held-to-maturity securities | 261 | 266 |
FHLB stock | 0 | 0 |
Net loans | 0 | 0 |
Accrued interest receivable | 731 | 780 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
Savings | 0 | 0 |
Money market | 0 | 0 |
NOW accounts | 0 | 0 |
Time deposits | 71,206 | 73,924 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 10,797 | 10,714 |
Accrued interest payable | 108 | 120 |
Level 3 | ||
Financial assets: | ||
Cash and due from banks | 0 | 0 |
Interest-bearing deposits in banks | 0 | 0 |
Available-for-sale securities | 0 | 0 |
Held-to-maturity securities | 0 | 0 |
FHLB stock | 0 | 0 |
Net loans | 399,333 | 396,089 |
Accrued interest receivable | 1,281 | 1,149 |
Deposits: | ||
Noninterest-bearing | 0 | 0 |
Savings | 0 | 0 |
Money market | 0 | 0 |
NOW accounts | 0 | 0 |
Time deposits | 0 | 0 |
Short-term borrowings | 0 | 0 |
Long-term borrowings | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount | ||
Financial assets: | ||
Cash and due from banks | 15,272 | 15,258 |
Interest-bearing deposits in banks | 11,400 | 2,552 |
Available-for-sale securities | 255,624 | 261,965 |
Held-to-maturity securities | 240 | 248 |
FHLB stock | 4,259 | 4,259 |
Net loans | 388,044 | 393,802 |
Accrued interest receivable | 2,012 | 1,929 |
Deposits: | ||
Noninterest-bearing | 229,793 | 227,055 |
Savings | 72,800 | 75,820 |
Money market | 162,184 | 158,319 |
NOW accounts | 67,444 | 69,834 |
Time deposits | 70,915 | 73,809 |
Short-term borrowings | 5,000 | 9,000 |
Long-term borrowings | 10,500 | 10,500 |
Accrued interest payable | $ 114 | $ 120 |
12. FAIR VALUE MEASUREMENTS (_2
12. FAIR VALUE MEASUREMENTS (Details 1) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Non Recurring | ||
Impaired loans: | ||
Total gain (losses) | $ 0 | $ 0 |
US Government Agencies Debt Securities | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Obligations of States and Political Subdivisions | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Corporate bonds | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Land | ||
Impaired loans: | ||
Total gain (losses) | 0 | 0 |
Repossessed asset | ||
Impaired loans: | ||
Total gain (losses) | 0 | |
Fair Value | US Government Agencies Debt Securities | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 235,388 | 214,887 |
Fair Value | Obligations of States and Political Subdivisions | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 13,598 | 13,447 |
Fair Value | Corporate bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,638 | |
Fair Value | Recurring | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 255,624 | 261,965 |
Fair Value | Land | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 846 | 846 |
Fair Value | Non Recurring | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 846 | 1,363 |
Fair Value | Corporate Bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,631 | |
Fair Value | Repossessed asset | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 517 | |
Level 1 | US Government Agencies Debt Securities | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Level 1 | Obligations of States and Political Subdivisions | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Level 1 | Corporate bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Level 1 | Recurring | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Level 1 | Land | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Level 1 | Non Recurring | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Level 1 | Corporate Bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Level 1 | Repossessed asset | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 0 | |
Level 2 | US Government Agencies Debt Securities | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 235,388 | 241,887 |
Level 2 | Obligations of States and Political Subdivisions | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 13,598 | 13,447 |
Level 2 | Corporate bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,638 | |
Level 2 | Recurring | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 255,624 | 261,965 |
Level 2 | Land | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Level 2 | Non Recurring | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 0 | 0 |
Level 2 | Corporate Bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 6,631 | |
Level 2 | Repossessed asset | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 0 | |
Level 3 | US Government Agencies Debt Securities | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Level 3 | Obligations of States and Political Subdivisions | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Level 3 | Corporate bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Level 3 | Recurring | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | 0 |
Level 3 | Land | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | 846 | 846 |
Level 3 | Non Recurring | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | $ 846 | 1,363 |
Level 3 | Corporate Bonds | ||
Available-for-sale securities: | ||
Asset fair value disclosure recurring | 0 | |
Level 3 | Repossessed asset | ||
Impaired loans: | ||
Assets, fair value disclosure, nonrecurring | $ 517 |