Cover
Cover - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2022 | Mar. 24, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Document Fiscal Period Focus | FY | ||
Document Fiscal Year Focus | 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 000-33411 | ||
Entity Registrant Name | New Peoples Bankshares, Inc. | ||
Entity Central Index Key | 0001163389 | ||
Entity Tax Identification Number | 31-1804543 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Address, Address Line One | 67 Commerce Drive | ||
Entity Address, City or Town | Honaker | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 24260 | ||
City Area Code | (276) | ||
Local Phone Number | 873-7000 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 23,568,051 | ||
Entity Common Stock, Shares Outstanding | 23,831,046 | ||
Auditor Name | Elliott Davis, LLC | ||
Auditor Firm ID | 149 | ||
Auditor Location | Greenville, South Carolina |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
ASSETS | ||
Cash and due from banks | $ 13,979 | $ 14,952 |
Interest-bearing deposits with banks | 46,747 | 45,766 |
Federal funds sold | 960 | 228 |
Total cash and cash equivalents | 61,686 | 60,946 |
Investment securities available-for-sale | 96,076 | 107,358 |
Loans receivable | 584,613 | 593,744 |
Allowance for loan losses | (6,727) | (6,735) |
Net loans | 577,886 | 587,009 |
Bank premises and equipment, net | 19,290 | 20,735 |
Other real estate owned | 261 | 1,361 |
Accrued interest receivable | 2,555 | 2,112 |
Deferred taxes, net | 4,623 | 1,673 |
Bank owned life insurance | 4,549 | 4,685 |
Right-of-use assets – operating leases | 3,725 | 4,062 |
Other assets | 4,707 | 4,706 |
Total assets | 775,358 | 794,647 |
Deposits | ||
Noninterest bearing | 249,924 | 251,257 |
Interest-bearing | 442,783 | 456,256 |
Total deposits | 692,707 | 707,513 |
Borrowed funds | 16,496 | 16,496 |
Lease liabilities – operating leases | 3,725 | 4,062 |
Accrued interest payable | 526 | 272 |
Accrued expenses and other liabilities | 4,685 | 2,673 |
Total liabilities | 718,139 | 731,016 |
SHAREHOLDERS’ EQUITY | ||
Common stock - $2.00 par value; 50,000,000 shares authorized; | 47,697 | 47,844 |
Additional paid-in capital | 14,546 | 14,570 |
Retained earnings | 8,917 | 2,031 |
Accumulated other comprehensive loss | (13,941) | (814) |
Total shareholders’ equity | 57,219 | 63,631 |
Total liabilities and shareholders’ equity | $ 775,358 | $ 794,647 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in dollars per share) | $ 2 | $ 2 |
Common stock, authorized | 50,000,000 | 50,000,000 |
Common stock, issued | 23,848,491 | 23,922,086 |
Common stock, outstanding | 23,848,491 | 23,922,086 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
INTEREST AND DIVIDEND INCOME | ||
Loans including fees | $ 27,739 | $ 28,323 |
Federal funds sold | 8 | |
Interest-earning deposits with banks | 1,514 | 95 |
Investments | 1,983 | 1,377 |
Dividends on equity securities (restricted) | 146 | 117 |
Total interest and dividend income | 31,390 | 29,912 |
INTEREST EXPENSE | ||
Deposits | 1,875 | 2,248 |
Borrowed funds | 1,230 | 453 |
Total interest expense | 3,105 | 2,701 |
NET INTEREST INCOME | 28,285 | 27,211 |
PROVISION FOR LOAN LOSSES | 625 | 372 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 27,660 | 26,839 |
NONINTEREST INCOME | ||
Service charges and fees | 3,969 | 3,724 |
Card processing and interchange income | 3,769 | 3,871 |
Insurance and investment fees | 954 | 1,029 |
Net gain on sales of available-for-sale securities | 322 | |
Other noninterest income | 548 | 1,034 |
Total noninterest income | 9,240 | 9,980 |
NONINTEREST EXPENSES | ||
Salaries and employee benefits | 13,365 | 12,662 |
Occupancy and equipment expenses | 4,135 | 5,785 |
Data processing and telecommunications | 2,369 | 2,444 |
Other operating expenses | 6,650 | 6,976 |
Total noninterest expenses | 26,519 | 27,867 |
INCOME BEFORE INCOME TAXES | 10,381 | 8,952 |
INCOME TAX EXPENSE | 2,299 | 1,942 |
NET INCOME | $ 8,082 | $ 7,010 |
Income Per Share | ||
Basic and Diluted | $ 0.34 | $ 0.29 |
Average Weighted Shares of Common Stock | ||
Basic and Diluted | 23,898,185 | 23,922,086 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Statement [Abstract] | ||
NET INCOME | $ 8,082 | $ 7,010 |
Investment securities activity: | ||
Unrealized losses arising during the year | (16,617) | (1,647) |
Reclassification adjustment for net gains included in net income | (322) | |
Other comprehensive losses on investment securities | (16,617) | (1,969) |
Related tax benefit | 3,490 | 413 |
TOTAL OTHER COMPREHENSIVE LOSS | (13,127) | (1,556) |
TOTAL COMPREHENSIVE (LOSS) INCOME | $ (5,045) | $ 5,454 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Total |
Beginning balance, value at Dec. 31, 2020 | $ 47,844 | $ 14,570 | $ (4,979) | $ 742 | $ 58,177 |
Beginning balance, shares at Dec. 31, 2020 | 23,922 | ||||
Net income | 7,010 | 7,010 | |||
Other comprehensive loss, net of tax | (1,556) | (1,556) | |||
Ending balance, value at Dec. 31, 2021 | $ 47,844 | 14,570 | 2,031 | (814) | 63,631 |
Ending balance, Shares at Dec. 31, 2021 | 23,922 | ||||
Net income | 8,082 | 8,082 | |||
Other comprehensive loss, net of tax | (13,127) | (13,127) | |||
Cash dividend declared ($0.05 per share) | (1,196) | (1,196) | |||
Repurchase of common stock | $ (147) | (24) | (171) | ||
Repurchase of common stock, shares | (74) | ||||
Ending balance, value at Dec. 31, 2022 | $ 47,697 | $ 14,546 | $ 8,917 | $ (13,941) | $ 57,219 |
Ending balance, Shares at Dec. 31, 2022 | 23,848 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 8,082 | $ 7,010 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,741 | 2,097 |
Provision for loan losses | 625 | 372 |
Loss (income) on bank owned life insurance | 136 | (32) |
Gain on sale of securities available-for-sale | (322) | |
Gain on sale of mortgage loans | (29) | (104) |
Loss on sale or disposal of premises and equipment | 201 | 1,098 |
Gain on sale of foreclosed real estate and repossessed assets | (70) | (126) |
Loans originated for sale | (1,577) | (5,814) |
Proceeds from sales of loans originated for sale | 1,606 | 6,307 |
Adjustment of carrying value of foreclosed real estate and repossessed assets | 197 | 466 |
Net amortization/accretion of bond premiums/discounts | 474 | 482 |
Deferred tax expense | 540 | 1,866 |
Net change in: | ||
Interest receivable | (443) | 280 |
Other assets | 26 | 403 |
Accrued interest payable | 254 | (164) |
Accrued expenses and other liabilities | 2,068 | (19) |
Net Cash Provided by Operating Activities | 13,831 | 13,800 |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Net decrease (increase) in loans | 9,209 | (18,987) |
Purchase of securities available-for-sale | (19,790) | (85,082) |
Proceeds from sale of investment securities available-for-sale | 7,686 | |
Proceeds from repayments and maturities of securities available-for-sale | 13,980 | 16,315 |
Net (purchase) sale of equity securities (restricted) | (27) | 555 |
Payments for the purchase of premises and equipment | (548) | (4,094) |
Proceeds from sale of premises and equipment | 1,203 | |
Proceeds from insurance claims on other real estate owned or premises | 51 | 54 |
Proceeds from sales of other real estate owned | 207 | 2,645 |
Net Cash Provided by (Used in) Investing Activities | 3,082 | (79,705) |
CASH FLOWS FROM FINANCING ACTIVIES | ||
Net change in short term borrowings | (5,000) | |
Net change in noninterest bearing deposits | (1,333) | 27,532 |
Net change in interest bearing deposits | (13,473) | 11,969 |
Dividends paid | (1,196) | |
Repurchase of common stock | (171) | |
Net Cash (Used in) Provided by Financing Activities | (16,173) | 34,501 |
Net increase (decrease) in cash and cash equivalents | 740 | (31,404) |
Cash and Cash Equivalents, Beginning of the Year | 60,946 | 92,350 |
Cash and Cash Equivalents, End of the Year | 61,686 | 60,946 |
Supplemental Disclosure of Cash Paid During the Year for: | ||
Interest | 2,851 | 2,865 |
Taxes | 650 | |
Supplemental Disclosure of Non-Cash Transactions: | ||
Right-of-use assets obtained in exchange for new operating lease liabilities | 86 | |
Loan made to finance sale of premises and equipment | 185 | |
Other real estate acquired in settlement of foreclosed loans | 566 | |
Loans made to finance sale of foreclosed real estate | 711 | 400 |
Transfer of premises and equipment to other real estate | 950 | |
Change in unrealized losses on securities available for sale | $ (16,617) | $ (1,969) |
NATURE OF OPERATIONS
NATURE OF OPERATIONS | 12 Months Ended |
Dec. 31, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
NATURE OF OPERATIONS | NOTE 1 NATURE OF OPERATIONS Nature of Operations – |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 2 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Basis of Presentation and Consolidation Use of Estimates Cash and Cash Equivalents Investment Securities The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity for discounts and the earlier of call date or maturity for premiums. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Realized gains (losses) on securities available-for-sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive loss. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive loss, net of tax, whereas realized gains and losses flow through the statements of income. Loans held for sale Loans It is the Company’s policy to stop accruing interest on a loan, and classify that loan as non-accrual under the following circumstances: (a) whenever we are advised by the borrower that scheduled payment or interest payments cannot be met, (b) when our best judgment indicates that payment in full of principal and interest can no longer be expected, or (c) when any such loan or obligation becomes delinquent for 90 days unless it is both well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, except in the case of a nonaccrual loan that is well secured and in the process of collection, in which case, the interest accrued but not collected is not reversed. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual status. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, six consecutive timely payments are made, and prospects for future contractual payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. Significant Group Concentrations of Credit Risk Allowance for Loan Losses The allowance is increased by a provision for loan losses, which is charged to expense and reduced by charge-offs, net of recoveries. Loans are charged against the allowance for loan losses when management believes that collectability of all or part of the principal is unlikely. Past due status is determined based on contractual terms. In regard to our consumer and consumer real estate loan portfolio, the Company uses the guidance found in the Uniform Retail Credit Classification and Account Management Policy which affects our estimate of the allowance for loan losses. Under this approach, a consumer or consumer real estate loan must initially have a credit risk grade of Pass or better. Subsequently, if the loan becomes contractually 90 days past due or the borrower files for bankruptcy protection, the loan is downgraded to Substandard and placed in nonaccrual status. If the loan is unsecured, upon being deemed Substandard, the entire loan amount is charged off. For non-1-4 family residential loans that are 90 days past due or greater, or in bankruptcy, the collateral value less estimated liquidation costs is compared to the loan balance to calculate any potential deficiency. If the collateral is sufficient then no charge-off is necessary. If a deficiency exists, then upon the loan becoming contractually 120 days past due, the deficiency is charged-off against the allowance for loan loss. In the case of 1-4 family residential or home equity loans, upon the loan becoming 120 days past due, a current value is obtained and after application of an estimated liquidation discount, a comparison is made to the loan balance to calculate any deficiency. Subsequently, any noted deficiency is then charged-off against the allowance for loan loss when the loan becomes contractually 180 days past due. If the customer has filed bankruptcy, then within 60 days of the bankruptcy notice, any calculated deficiency is charged-off against the allowance for loan loss. Collection efforts continue by means of repossessions or foreclosures, and upon bank ownership, liquidation ensues. Bank Premises and Equipment Schedule of estimated useful lives Type Estimated useful life Buildings 39 Paving and landscaping 15 Computer equipment and software 3 5 Vehicles 5 Furniture and other equipment 5 10 Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are recorded as a component of noninterest expense as incurred. Other Real Estate Owned Bank Owned Life Insurance (BOLI) Leases Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. See Note 10, Income Taxes, for additional information. The Company records any penalties and interest attributed to uncertain tax positions as a component of income tax expenses. Income Per Share Financial Instruments – Off-balance-sheet instruments Financial Instruments – Fair Value Comprehensive (Loss) Income Revenue from Contracts with Customers Advertising Cost 162,000 252,000 Reclassification Subsequent Events |
INCOME PER SHARE
INCOME PER SHARE | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
INCOME PER SHARE | NOTE 3 INCOME PER SHARE Basic income per share computations are based on the weighted average number of shares outstanding during each year. Dilutive earnings per share reflect the additional common shares that would have been outstanding if dilutive potential common shares had been issued. For the years ended December 31, 2022 and 2021, there were no dilutive potential common shares. Basic and diluted net income per common share calculations follows: Schedule of basic and diluted net loss per common share calculations (Amounts in thousands, except For the year ended share and per share data) December 31, 2022 2021 Net income $ 8,082 $ 7,010 Weighted average shares outstanding 23,898,185 23,922,086 Weighted average dilutive shares outstanding 23,898,185 23,992,086 Basic and diluted income per share $ 0.34 $ 0.29 |
DEPOSITS IN AND FEDERAL FUNDS S
DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS | 12 Months Ended |
Dec. 31, 2022 | |
Deposits In And Federal Funds Sold To Banks | |
DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS | NOTE 4 DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS The Bank had federal funds sold and interest-bearing cash on deposit with the Federal Reserve Bank of Richmond (the Federal Reserve Bank) and other commercial banks amounting to $ 47.7 46.0 Effective March 26, 2020, the Board of Governors of the Federal Reserve System set reserve requirements to zero. Therefore, the Bank is no longer required to maintain minimum reserve balances with the Federal Reserve Bank. The Bank has a total of $ 30.0 |
INVESTMENT SECURITIES
INVESTMENT SECURITIES | 12 Months Ended |
Dec. 31, 2022 | |
Investment securities activity: | |
INVESTMENT SECURITIES | NOTE 5 INVESTMENT SECURITIES The amortized cost and estimated fair value of securities (all available-for-sale) as of December 31, 2022 and December 31, 2021 are as follows: Schedule of securities amortized cost and estimated fair value Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value December 31, 2022 U.S. Treasuries $ 12,642 $ — $ 957 $ 11,685 U.S. Government Agencies 10,129 4 734 9,399 Taxable municipals 23,022 — 6,207 16,815 Corporate bonds 3,512 — 376 3,136 Mortgage backed securities 64,419 — 9,378 55,041 Total Securities available for sale $ 113,724 $ 4 $ 17,652 $ 96,076 December 31, 2021 U.S. Treasuries $ 7,791 $ 2 $ 122 $ 7,671 U.S. Government Agencies 9,098 77 86 9,089 Taxable municipals 23,075 159 254 22,980 Corporate bonds 2,014 23 18 2,019 Mortgage backed securities 66,410 143 954 65,599 Total Securities available for sale $ 108,388 $ 404 $ 1,434 $ 107,358 The following table details unrealized losses and related fair values in the available-for-sale portfolio. This information is aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of December 31, 2022 and December 31, 2021. Schedule of fair value and gross unrealized losses on investment securities Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2022 U.S. Treasuries $ 4,761 $ 145 $ 6,922 $ 812 $ 11,683 $ 957 U.S. Government Agencies 5,925 348 3,295 386 9,220 734 Taxable municipals 3,689 1,113 13,127 5,094 16,816 6,207 Corporate bonds 2,375 136 761 240 3,136 376 Mortgage backed securities 11,338 861 43,612 8,517 54,950 9,378 Total $ 28,088 $ 2,603 $ 67,717 $ 15,049 $ 95,805 $ 17,652 December 31, 2021 U.S. Treasuries $ 6,200 $ 122 $ — $ — $ 6,200 $ 122 U.S. Government Agencies 977 10 3,434 76 4,411 86 Taxable municipals 13,040 237 387 17 13,427 254 Corporate bonds 1,482 18 — — 1,482 18 Mortgage backed securities 52,180 758 6,282 196 58,462 954 Total $ 73,879 $ 1,145 $ 10,103 $ 289 $ 83,982 $ 1,434 As of December 31, 2022, the available-for-sale portfolio included 221 investments for which the fair market value was less than amortized cost. As of December 31, 2021, the available-for-sale portfolio included 113 investments for which the fair market value was less than amortized cost. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial conditions and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Based on the Company’s analysis, the Company concluded that no securities had other-than-temporary impairment at December 31, 2022 or December 31, 2021. Investment securities with a carrying value of $ 27.3 12.1 There were no securities sold during the year ended December 31, 2022. During the year ended December 31, 2021, $7.7 million of securities were sold, realizing $322,000 in gains. The amortized cost and fair value of investment securities as of December 31, 2022, by contractual maturity, are shown in the following schedule. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Also, actual maturities may differ from scheduled maturities on amortizing securities, such as mortgage-backed securities and collateralized mortgage obligations, because the underlying collateral on these types of securities may be repaid prior to the scheduled maturity date. Schedule of amortized cost and fair value of investment securities contractual maturity Weighted (Dollars are in thousands) Amortized Fair Average Securities Available for Sale Cost Value Yield Due in one year or less $ 1,482 $ 1,475 4.51% Due after one year through five years 16,696 15,674 2.12% Due after five years through ten years 15,315 13,409 2.11% Due after ten years 80,231 65,518 1.86% Total $ 113,724 $ 96,076 1.97% The Bank, as a member of the Federal Reserve Bank and the Federal Home Loan Bank of Atlanta (FHLB), is required to hold stock in each. The Bank also owns stock in CBB Financial Corp., which is a correspondent of the Bank. These equity securities, which are included in other assets on the consolidated balance sheet, are restricted from trading and are recorded at a cost of $ 2.1 2.0 |
LOANS
LOANS | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
LOANS | NOTE 6 LOANS Loans receivable outstanding as of December 31, 2022 and 2021, are summarized as follows: Summary of loans receivable outstanding December 31, (Dollars are in thousands) 2022 2021 Real estate secured: Commercial $ 197,069 $ 206,162 Construction and land development 42,470 32,325 Residential 1-4 family 227,232 224,530 Multifamily 29,710 33,048 Farmland 17,744 18,735 Total real estate loans 514,225 514,800 Commercial 46,697 54,325 Agriculture 3,756 4,021 Consumer installment loans 19,309 18,756 All other loans 626 1,842 Total loans $ 584,613 $ 593,744 Included in commercial loans as of December 31, 2022 and 2021, were approximately $ 273,000 6.4 Also included in total loans above are deferred loan fees of $ 1.6 1.8 1.9 2.0 As a result of PPP originations, net deferred fees totaling $3.2 million were received. The Company recognized approximately $211,000 and $2.0 million, respectively, during the years ended December 31, 2022 and 2021. Loans receivable on nonaccrual status as of December 31, 2022 and 2021 are summarized as follows: Summary of loans receivable on nonaccrual status (Dollars are in thousands) 2022 2021 Real estate secured: Commercial $ — $ 415 Construction and land development 471 37 Residential 1-4 family 2,597 2,314 Multi-family 268 111 Farmland 41 48 Total real estate loans 3,377 2,925 Commercial — 9 Consumer installment and other loans 36 7 Total loans receivable on nonaccrual status $ 3,413 $ 2,941 Total interest income not recognized on nonaccrual loans for 2022 and 2021 was approximately $10,000 and $223,000, respectively. The following table presents information concerning the Company’s investment in loans considered impaired as of December 31, 2022 and December 31, 2021: Summary of impaired loans As of December 31, 2022 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 124 $ 6 $ 90 $ 131 $ — Construction and land development 114 17 471 491 — Residential 1-4 family 1,585 48 1,617 1,972 — Multifamily — — — — — Farmland 307 24 248 417 — Commercial 14 1 23 31 — Agriculture — — — — — Consumer installment loans 1 — — — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 407 2 268 338 63 Construction and land development 291 — — — — Residential 1-4 family 201 6 32 48 23 Multifamily 20 — — — — Farmland 63 — — — — Commercial 27 1 — — — Agriculture — — — — — Consumer installment loans — — — — — All other loans — — — — — Total $ 3,154 $ 105 $ 2,749 $ 3,428 $ 86 As of December 31, 2021 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 245 $ — $ 99 $ 140 $ — Construction and land development 64 18 24 298 — Residential 1-4 family 1,720 24 1,508 1,791 — Multifamily — — — — — Farmland 438 14 320 490 — Commercial — — — — — Agriculture — — — — — Consumer installment loans 3 — 2 2 — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 871 3 315 372 94 Construction and land development — — — — — Residential 1-4 family 338 6 340 372 53 Multifamily — — — — — Farmland 121 4 197 209 17 Commercial 109 1 28 35 2 Agriculture — — — — — Consumer installment loans — — — — — All other loans — — — — — Total $ 3,909 $ 70 $ 2,833 $ 3,709 $ 166 An age analysis of past due loans receivable is below. As of December 31, 2022 and 2021, there were no loans over 90 days past due that were accruing. Summary of age analysis of past due loans receivable As of December 31, 2022 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 268 $ — $ — $ 268 $ 196,801 $ 197,069 Construction and land development 89 — — 89 42,381 42,470 Residential 1-4 family 3,521 543 341 4,405 222,827 227,232 Multifamily 229 — — 229 29,481 29,710 Farmland 285 — — 285 17,459 17,744 Total real estate loans 4,392 543 341 5,276 508,949 514,225 Commercial 56 — — 56 46,641 46,697 Agriculture — — — — 3,756 3,756 Consumer installment loans 73 17 17 107 19,202 19,309 All other loans 59 — — 59 567 626 Total loans $ 4,580 $ 560 $ 358 $ 5,498 $ 579,115 $ 584,613 As of December 31, 2021 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ — $ — $ — $ — $ 206,162 $ 206,162 Construction and land development 7 — 7 14 32,311 32,325 Residential 1-4 family 2,473 240 486 3,199 221,331 224,530 Multifamily — — 111 111 32,937 33,048 Farmland — — — — 18,735 18,735 Total real estate loans 2,480 240 604 3,324 511,476 514,800 Commercial 5 — — 5 54,320 54,325 Agriculture — — — — 4,021 4,021 Consumer installment loans 56 5 — 61 18,695 18,756 All other loans — — — — 1,842 1,842 Total loans $ 2,541 $ 245 $ 604 $ 3,390 $ 590,354 $ 593,744 The Company categorizes loans receivable into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans and leases individually by classifying the loans receivable as to credit risk. The Company uses the following definitions for risk ratings: Pass Special Mention Substandard A substandard loan is inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans classified as substandard must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt; they are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected. Doubtful Loans classified Doubtful have all the weaknesses inherent in loans classified Substandard, plus the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions, and values highly questionable and improbable. There were no loans classified as doubtful at either December 31, 2022 or 2021. Based on the most recent analysis performed, the risk category of loans receivable was as follows: Summary of risk category of loans receivable As of December 31, 2022 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 195,376 $ 1,425 $ 268 $ — $ 197,069 Construction and land development 41,882 117 471 — 42,470 Residential 1-4 family 224,228 406 2,598 — 227,232 Multifamily 29,503 207 — — 29,710 Farmland 16,848 855 41 — 17,744 Total real estate loans 507,837 3,010 3,378 — 514,225 Commercial 46,471 226 — — 46,697 Agriculture 3,756 — — — 3,756 Consumer installment loans 19,272 2 35 — 19,309 All other loans 626 — — — 626 Total $ 577,962 $ 3,238 $ 3,413 $ — $ 584,613 As of December 31, 2021 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 198,022 $ 7,725 $ 415 $ — $ 206,162 Construction and land development 31,366 922 37 — 32,325 Residential 1-4 family 221,342 915 2,273 — 224,530 Multifamily 32,499 438 111 — 33,048 Farmland 18,137 550 48 — 18,735 Total real estate loans 501,366 10,550 2,884 — 514,800 Commercial 53,162 1,154 9 — 54,325 Agriculture 4,021 — — — 4,021 Consumer installment loans 18,746 2 8 — 18,756 All other loans 1,842 — — — 1,842 Total $ 579,137 $ 11,706 $ 2,901 $ — $ 593,744 |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 7 ALLOWANCE FOR LOAN LOSSES The following tables present activity in the allowance for loan losses for the years ended December 31, 2022 and 2021. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. Additionally, the allocation of the allowance by recorded portfolio segment and impairment method is presented as of December 31, 2022 and 2021. Schedule of allocation of portion of allowance Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Year ended December 31, 2022 Beginning balance $ 2,134 $ 189 $ 2,237 $ 254 $ 149 $ 1,099 $ 28 $ 108 $ 537 $ 6,735 Charge-offs (5) (149) (64) (111) (1) (45) (1) (559) - (935) Recoveries 33 6 100 2 14 31 1 115 - 302 Provision 202 299 91 117 (9) (704) 4 722 (97) 625 Ending balance $ 2,364 $ 345 $ 2,364 $ 262 $ 153 $ 381 $ 32 $ 386 $ 440 $ 6,727 Allowance for loan losses at December 31, 2022 Individually evluated for impairment $ 63 $ - $ 23 $ - $ - $ - $ - $ - $ - $ 86 Collectively evaluated for impairment 2,301 345 2,341 262 153 381 32 386 440 6,641 $ 2,364 $ 345 $ 2,364 $ 262 $ 153 $ 381 $ 32 $ 386 $ 440 $ 6,727 Loans at December 31, 2022 Individually evluated for impairment $ 358 $ 471 $ 1,649 $ - $ 248 $ 23 $ - $ - $ - $ 2,749 Collectively evaluated for impairment 196,711 41,999 225,583 29,710 17,496 46,965 3,756 19,644 - 581,864 $ 197,069 $ 42,470 $ 227,232 $ 29,710 $ 17,744 $ 46,988 $ 3,756 $ 19,644 $ - $ 584,613 Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Year ended December 31, 2021 Beginning balance $ 2,281 $ 233 $ 1,951 $ 151 $ 97 $ 2,275 $ 40 $ 163 $ - $ 7,191 Charge-offs (915) - (48) - - (92) - (78) - (1,133) Recoveries 2 6 85 - 29 137 1 45 - 305 Provision 766 (50) 249 103 23 (1,221) (13) (22) 537 372 Ending balance $ 2,134 $ 189 $ 2,237 $ 254 $ 149 $ 1,099 $ 28 $ 108 $ 537 $ 6,735 Allowance for loan losses at December 31, 2021 Individually evluated for impairment $ 94 $ - $ 53 $ - $ 17 $ 2 $ - $ - $ - $ 166 Collectively evaluated for impairment 2,040 189 2,184 254 132 1,097 28 108 537 6,569 $ 2,134 $ 189 $ 2,237 $ 254 $ 149 $ 1,099 $ 28 $ 108 $ 537 $ 6,735 Loans at December 31, 2021 Individually evluated for impairment $ 414 $ 24 $ 1,848 $ - $ 517 $ 28 $ - $ 2 $ - $ 2,833 Collectively evaluated for impairment 205,748 32,301 222,682 33,048 18,218 54,297 4,021 20,596 - 590,911 $ 206,162 $ 32,325 $ 224,530 $ 33,048 $ 18,735 $ 54,325 $ 4,021 $ 20,598 $ - $ 593,744 In determining the amount of our allowance, we rely on an analysis of our loan portfolio, our experience and our evaluation of general economic conditions. If our assumptions prove to be incorrect, our current allowance may not be sufficient to cover future loan losses and we may experience significant increases to our provision. Due to the underlying SBA guarantee provided for PPP loans, these accounts were not included in the portfolio segment or impairment calculations. Additionally, due to uncertainties presented by the lingering impact of the pandemic and the resulting economic uncertainty, internal and external qualitative factors were revised accordingly. In 2022 and 2021, external qualitative factors were adjusted to consider the impact of inflation. |
TROUBLED DEBT RESTRUCTURINGS
TROUBLED DEBT RESTRUCTURINGS | 12 Months Ended |
Dec. 31, 2022 | |
Troubled Debt Restructurings | |
TROUBLED DEBT RESTRUCTURINGS | NOTE 8 TROUBLED DEBT RESTRUCTURINGS As of December 31, 2022, loans classified as troubled debt restructurings (TDRs) totaled $ 2.0 2.5 Schedule of loans modified as troubled debt restructurings December 31, 2022 December 31, 2021 (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — 1 35 35 Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — 1 35 35 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 1 $ 35 $ 35 There were no loans modified that resulted in a troubled debt restructuring during the year ended December 31, 2022. During the year ended December 31, 2021, one loan was modified for which the modification was considered to be a troubled debt restructuring. For the year ended December 31, 2022 there were no TDRs that subsequently defaulted within twelve months of the loan modification. For the year ended December 31, 2021, there were two TDRs with a modified balance of $56,000 that subsequently defaulted within twelve months of the loan modification. Generally, a TDR is considered to be in default once it becomes 90 days or more past due following a modification. When determining the level of the allowance for loan losses, management considers troubled debt restructurings and subsequent defaults in these restructurings in its estimate. The Company evaluates all troubled debt restructurings for possible further impairment. As a result, the allowance may be increased, adjustments may be made in the allocation of the allowance, or charge-offs may be taken to further write down the carrying value of these loans. |
BANK PREMISES AND EQUIPMENT
BANK PREMISES AND EQUIPMENT | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
BANK PREMISES AND EQUIPMENT | NOTE 9 BANK PREMISES AND EQUIPMENT Depreciation expense for 2022 and 2021 was $1.7 million and $2.1 million, respectively. Bank premises and equipment as of December 31, 2022 and 2021 are summarized as follows: Schedule of bank premises and equipment (Dollars are in thousands) 2022 2021 Land $ 7,371 $ 7,424 Buildings and improvements 15,972 16,252 Furniture and equipment 13,965 14,139 37,308 37,815 Less accumulated depreciation (18,018 ) (17,080 ) Bank Premises and Equipment $ 19,290 $ 20,735 As presented in Note 14 Other Real Estate Owned, the bank sold three former branch locations during 2022. These properties with a combined carrying value of $2.0 million, were transferred to other real estate owned during 2021, resulting in an increase to OREO of $950,000, and disposal and valuation costs of approximately $1.1 million. Equipment with a combined net book value of $188,000 was written off in 2021. During the year ended December 31, 2021, the Bank sold four other former branch locations, with net book values of approximately $1.1 million, resulting in approximately $173 thousand of net gains on sales. During 2021, we opened one new branch office, in Bristol, Virginia, resulting in a net increase of $1.7 million in premises and equipment. As presented in Note 17 Leasing Activities, during 2021, the Bank repurchased the branch office located in Lebanon, Virginia, which had previously been sold and leased back. |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | NOTE 10 INCOME TAXES The Company files a consolidated federal income tax return. The following summarizes the provision for income taxes and the related deferred tax components for the years ended December 31, 2022 and 2021. Income tax expense is summarized as follows for the years ended December 31, 2022 and 2021: Schedule of pre-tax book income (Dollars are in thousands) 2022 2021 Current income tax expense (benefit) Federal $ 1,759 $ (172 ) State — — Total current income tax expense (benefit) 1,759 (172 ) Deferred income tax expense Federal 500 2,067 State 40 47 Total deferred income tax expense 540 2,114 Income tax expense $ 2,299 $ 1,942 The following table summarizes the differences between the actual income tax expense and the amounts computed using the federal statutory tax rate of 21% for years ended December 31, 2022 and 2021, respectively: Schedule of reconciliation of income tax expense (Dollars are in thousands) 2022 2021 Income tax expense (benefit) at the applicable federal rate $ 2,180 $ 1,879 Permanent differences resulting from: Nondeductible expenses 9 7 Tax exempt interest income (3 ) (4 ) Bank owned life insurance 29 (7 ) Other adjustments 84 67 Income tax expense $ 2,299 $ 1,942 The net deferred tax assets and liabilities resulting from temporary differences as of December 31, 2022 and 2021, are summarized as follows: Schedule of net deferred tax assets and liabilities (Dollars are in thousands) 2022 2021 Deferred tax assets Allowance for loan losses $ 1,498 $ 1,500 Deferred compensation 80 85 Nonaccrual loan interest 543 532 Unrealized loss on securities available for sale 3,706 216 Other real estate owned 48 305 Amortization of core deposits — 6 Amortization of goodwill — 31 Capitalized interest and repair expense 22 23 Net operating loss carryforward — 460 Other 57 98 Total assets, gross 5,954 3,256 Deferred tax liabilities Accelerated depreciation 896 1,105 Prepaid expenses 17 27 Deferred loan costs 418 451 Total liabilities, gross 1,331 1,583 Net deferred tax asset $ 4,623 $ 1,673 In accordance with applicable accounting guidance, the Company determined that it was not required to establish a valuation allowance for deferred tax assets as it is more likely than not that the deferred tax asset will be realized through future taxable income, future reversals of existing taxable temporary differences and tax strategies. The Company’s net deferred tax asset is recorded in the consolidated financial statements separately. As of December 31, 2022 and 2021, the Company had no unrecognized tax benefits. The Company does not expect the total amount of unrecognized tax benefits to increase significantly over the next twelve months. The company recognizes interest and penalties as a component of income tax expense. The Company and Bank are subject to U. S. federal income tax, a capital-based franchise tax in the Commonwealth of Virginia; and income and excise taxes in West Virginia, Tennessee and North Carolina, respectively, based on earnings realized from business activities within each state. Years prior to 2019 are no longer subject to examination by taxing authorities. |
TIME DEPOSITS
TIME DEPOSITS | 12 Months Ended |
Dec. 31, 2022 | |
Time Deposits | |
TIME DEPOSITS | NOTE 11 TIME DEPOSITS The aggregate amount of time deposits that meet or exceed the Federal Deposit Insurance Corporation (FDIC) Insurance limit of $250,000 was $26.8 million and $28.6 million as of December 31, 2022 and 2021, respectively. We had no brokered time deposits at either December 31, 2022 or 2021. As of December 31, 2022, the scheduled maturities of time deposits are as follows (dollars are in thousands): Schedule of maturities 2023 $ 123,270 2024 20,683 2025 29,987 2026 8,185 2027 6,108 After five years - Total $ 188,233 |
RELATED PARTY TRANSACTIONS
RELATED PARTY TRANSACTIONS | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
RELATED PARTY TRANSACTIONS | NOTE 12 RELATED PARTY TRANSACTIONS Officers, directors (and companies controlled by them), principal shareholders, and associates were customers of and had loan transactions with the Bank in the normal course of business. The following table summarizes these transactions, which were made on substantially the same terms as those prevailing for other customers and did not involve any abnormal risk. Schedule of related party For the year ended December 31, (Dollars in thousands) 2022 2021 Beginning balance $ 3,419 $ 4,187 New loans and advances on lines 2,636 2,620 Payments and other reductions (4,496 ) (3,388 ) Ending balance $ 1,559 $ 3,419 Total related party deposits held at the Bank were $29.0 million and $24.8 million as of December 31, 2022 and 2021, respectively. NPB Insurance Services, Inc. holds a 39% membership interest in Lonesome Pine Title Agency, LLC, which provides title insurance. Another member of the agency is a related party to the Company. In August 2021, the Bank sold a parcel of land, adjacent to the Grundy, Virginia office to a director for $150 thousand, which approximated the fair value of the property. A gain of approximately $17,000 was recorded from this transaction. |
RETIREMENT PLANS
RETIREMENT PLANS | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
RETIREMENT PLANS | NOTE 13 RETIREMENT PLANS The Company has established a qualified defined contribution plan that covers all full-time employees. The Company matches employee contributions up to a maximum of 3% of their salary. The Company contributed approximately $235,000 and $246,000 to the defined contribution plan during the years ended December 31, 2022 and 2021, respectively. The Bank maintains a salary continuation plan for key executives which was established in 2002 and is funded by single premium life insurance policies. Expenses related to the plan were approximately $27,000 and $29,000 for the years ended December 31, 2022 and 2021, respectively. |
OTHER REAL ESTATE OWNED
OTHER REAL ESTATE OWNED | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
OTHER REAL ESTATE OWNED | NOTE 14 OTHER REAL ESTATE OWNED The following table summarizes the activity in other real estate owned for the years ended December 31, 2022 and 2021: Schedule of other real estate owned 2022 2021 (Dollars are in thousands) Balance, beginning of year $ 1,361 $ 3,334 Additions — 566 Transfers from premises and equipment — 950 Proceeds from sales (207 ) (2,645 ) Proceeds from insurance claims — (54 ) Loans made to finance sales (711 ) (400 ) Adjustment of carrying value (197 ) (466 ) Gains (losses) from sales 15 76 Balance, end of year $ 261 $ 1,361 During 2022, three former branch offices that were transferred from premises to other real estate owned during 2021, were sold, resulting in valuation adjustments of $137,000 and net losses totaling $5,000, respectively. |
BANK OWNED LIFE INSURANCE
BANK OWNED LIFE INSURANCE | 12 Months Ended |
Dec. 31, 2022 | |
Bank Owned Life Insurance | |
BANK OWNED LIFE INSURANCE | NOTE 15 BANK OWNED LIFE INSURANCE As of December 31, 2022 and 2021, the Bank had an aggregate total cash surrender value of $4.5 million and $4.7 million, respectively, on life insurance policies covering former key officers. The Company recorded a net write-down of approximately $136,000 during the year ended December 31, 2022. The Company recognized income of approximately $32,000 during the year ended December 31, 2021. |
DIVIDEND LIMITATIONS ON SUBSIDI
DIVIDEND LIMITATIONS ON SUBSIDIARY BANK | 12 Months Ended |
Dec. 31, 2022 | |
Equity [Abstract] | |
DIVIDEND LIMITATIONS ON SUBSIDIARY BANK | NOTE 16 DIVIDEND LIMITATIONS ON SUBSIDIARY BANK A principal source of funds for the Company is dividends paid by the Bank. The Federal Reserve Act restricts the amount of dividends the Bank may pay. Approval by the Board of Governors of the Federal Reserve System is required if the dividends declared by a state member bank, in any year, exceed the sum of (1) net income of the current year and (2) income net of dividends for the preceding two years. Virginia law restricts the amount of dividends a Virginia corporation may pay. Generally, a Virginia corporation may not authorize and make distributions if, after giving effect to the distribution, it would be unable to meet its debts as they become due in the usual course of business or if the corporation’s total assets would be less than the sum of its total liabilities plus the amount that would be needed, if it were dissolved at that time, to satisfy the preferential rights of shareholders whose rights are superior to the rights of those receiving the distribution. In addition, the payment of distributions to shareholders is subject to any prior rights of outstanding preferred stock. |
LEASING ACTIVITIES
LEASING ACTIVITIES | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
LEASING ACTIVITIES | NOTE 17 LEASING ACTIVITIES As of December 31, 2022, the Bank leases four branch offices and sublets a lot adjacent to another branch office. The lease agreements have maturity dates ranging from May 2032 to December 2041. It is assumed that there are currently no circumstances in which the leases would be terminated prior to expiration. The weighted average remaining life of the lease terms as of December 31, 2022, was 9.60 The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate which corresponded to the lease term for each transaction. This methodology is expected to be used for any other subsequent lease agreements. The weighted average discount rate for the leases as of December 31, 2022 was 3.28% The Company’s operating lease costs for the years ended December 31, 2022 and 2021, as a result of the transactions discussed above, was $ 456,000 528,000 During 2021, the Bank repurchased its branch office located in Lebanon, Virginia, for $1.3 million. This branch had previously been sold and leased back in September 2019. As a result of the repurchase, the lease with a remaining term of 12.9 years was cancelled. The Company’s other operating leases were evaluated and determined to be immaterial to the financial statements. As of December 31, 2022, future minimum rental commitments under the non-cancellable operating leases discussed above are as follows (dollars are in thousands): Schedule of future minimum rental commitments under the non-cancellable operating leases 2023 $ 456 2024 456 2025 456 2026 456 2027 477 Thereafter 2,226 Total lease payments 4,527 Less imputed interest 802 Total $ 3,725 |
BORROWED FUNDS
BORROWED FUNDS | 12 Months Ended |
Dec. 31, 2022 | |
Borrowed Funds | |
BORROWED FUNDS | NOTE 18 BORROWED FUNDS The following table presents the breakdown of borrowed funds as of December 31, 2022 and 2021 (dollars in thousands): Schedule of breakdown of borrowed funds FHLB Revolving Advances (a) Federal Funds Lines (b) FHLB Term Loans Short-Term (c) FHLB Term Loans Long-Term (d) NPB Capital Trust I (e) NPB Capital Trust 2 (e) Total Balance December 31, 2022 $ - $ - $ - $ - $ 11,341 $ 5,155 $ 16,496 Highest balance at any month-end - - 60,000 - 11,341 5,155 Average weighted balance 863 - 19,507 - 11,341 5,155 36,866 Average interest rate: Paid during the year 1.68% -% 2.48% -% 4.63% 3.79% 3.31% At year-end -% -% -% -% 6.68% 5.85% 6.42% Balance December 31, 2021 $ - $ - $ - $ - $ 11,341 $ 5,155 $ 16,496 Highest balance at any month-end - 1,020 5,000 - 11,341 5,155 Average weighted balance - 8 2,466 - 11,341 5,155 18,970 Average interest rate: Paid during the year - % 2.51% 1.36% -% 2.81% 1.97% 2.39% At year-end -% -% -% -% 2.72% 1.89% 2.46% (a) - The Bank has the ability to borrow up to an additional $113.7 million from the FHLB under a line of credit which is secured by a blanket lien on residential real estate loans. With additional collateral, the Bank’s total credit availability would be $200.1 million. The Bank had no overnight borrowings subject to daily rate changes from the FHLB at December 31, 2022 or 2021. We have used our line of credit with FHLB to issue letters of credit totaling $7.0 million to the Treasury Board of Virginia for collateral on public funds deposited in the Bank. No draws on the letters of credit have been issued. The letters of credit are considered draws on our FHLB line of credit. (b) - Federal funds lines consist of $30.0 million in unsecured federal funds line of credit facilities with correspondent banks as of December 31, 2022 and 2021, respectively exclusive of any outstanding balance. The Company did not borrow from the lines other than to test the ability to access the lines. (c) – As of December 31, 2022, there are no short term FHLB advances outstanding. (d) – As of December 31, 2022 and 2021, there were no long term FHLB advances. (e) - TPS I - On July 7, 2004, the Company completed the issuance of $11.3 million in floating rate trust preferred securities offered by its wholly owned subsidiary, NPB Capital Trust I (TPS I). The rate is determined quarterly and floats based on the 3-month LIBOR plus 260 basis points. TPS 2 - On September 27, 2006, the Company completed the issuance of $5.2 million in floating rate trust preferred securities offered by its wholly owned subsidiary, NPB Capital Trust 2 (TPS 2). The rate is determined quarterly and floats based on the 3-month LIBOR plus 177 basis points. Under the terms of the subordinated debt transactions, the securities have 30-year maturities and are redeemable, in whole or in part, without penalty, at the option of the Company after five years from the issuance date, and on a quarterly basis thereafter. Following are maturities of borrowed funds as of December 31, 2022 (dollars in thousands): Schedule of maturities of borrowed funds 2023 $ - 2024 - 2025 - 2026 - 2027 - 2028 and thereafter 16,496 $ 16,496 |
FINANCIAL INSTRUMENTS WITH OFF-
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | NOTE 19 FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK In the normal course of business, the Bank has outstanding commitments and contingent liabilities, such as commitments to extend credit and standby letters of credit, which are not included in the accompanying consolidated financial statements. The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instruments for commitments to extend credit and standby letters of credit is represented by the contractual or notional amount of those instruments. The Bank uses the same credit policies in making such commitments as it does for instruments that are included in the balance sheet. Financial instruments whose contract amount represents credit risk as of December 31, 2022 and 2021 were as follows: Schedule of financial instruments with credit risk 2022 2021 (Dollars in thousands) Commitments to extend credit $ 84,149 $ 69,015 Standby letters of credit 3,731 3,684 Commitments to extend credit are agreements to lend to a customer at either a fixed or variable interest rate as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management’s credit evaluation. Collateral held varies but may include accounts receivable, inventory, property and equipment, and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Standby letters of credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. The Bank’s policy for obtaining collateral, and the nature of such collateral, is essentially the same as that involved in making commitments to extend credit. |
LEGAL CONTINGENCIES
LEGAL CONTINGENCIES | 12 Months Ended |
Dec. 31, 2022 | |
Legal Contingencies | |
LEGAL CONTINGENCIES | NOTE 20 LEGAL CONTINGENCIES In the course of operations, we may become a party to legal proceedings in the normal course of business. At December 31, 2022, we do not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company or any of its subsidiaries to which the property of the Company or any of its subsidiaries is subject, in the opinion of management, may materially impact the financial condition or liquidity of the Company. |
CAPITAL
CAPITAL | 12 Months Ended |
Dec. 31, 2022 | |
CAPITAL | NOTE 21 CAPITAL Capital Requirements and Ratios The Company meets eligibility criteria of a small bank holding company in accordance with the Board of Governors of the Federal Reserve System’s Small Bank Holding Company Policy Statement issued in February 2015, and is no longer obligated to report consolidated regulatory capital. The Bank is subject to various capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and, possibly, additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Bank to maintain minimum amounts and ratios (set forth in the following table) of total and Tier 1 capital to risk-weighted assets, Tier 1 capital to average assets, and Common Equity Tier 1 capital to risk-weighted assets. As of December 31, 2022, the Bank meets all capital adequacy requirements to which it is subject. The Bank’s actual capital amounts and ratios are presented in the following table as of December 31, 2022 and 2021, respectively. Schedule of capital requirements Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2022: Total Capital to Risk Weighted Assets $ 93,028 16.50% $45,106 8.0% $ 56,382 10.0% Tier 1 Capital to Risk Weighted Assets 86,301 15.31% 33,829 6.0% 45,106 8.0% Tier 1 Capital to Average Assets 86,301 10.40% 33,206 4.0% 41,508 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 86,301 15.31% 25,372 4.5% 36,648 6.5% December 31, 2021: Total Capital to Risk Weighted Assets $ 85,890 16.23% $ 42,332 8.0% $ 52,915 10.0% Tier 1 Capital to Risk Weighted Assets 79,274 14.98% 31,749 6.0% 42,332 8.0% Tier 1 Capital to Average Assets 79,274 9.86% 32,145 4.0% 40,181 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 79,274 14.98% 23,812 4.5% 34,395 6.5% Accordingly, as of December 31, 2022 and 2021, the Bank was well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since such dates that management believes have changed the Bank’s category. The Bank is also subject to the rules implementing the Basel III capital framework and certain related provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010. The final rules require the Bank to comply with the following minimum capital ratios: (i) a Common Equity Tier 1 capital to risk-weighted assets ratio of at least 4.5% 2.5% |
FAIR VALUES
FAIR VALUES | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES | NOTE 22 FAIR VALUES The Company established a hierarchal disclosure framework associated with the level of pricing observability utilized in measuring assets and liabilities at fair value. The three broad levels defined by this hierarchy are: Level 1: Quoted prices are available in active markets for identical assets or liabilities as of the reported date. Level 2: Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently, and items that are valued using other financial instruments, the parameters of which can be directly observed. Level 3: Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation. A description of the valuation methodologies used for instruments measured at fair value, as well as the general classification of such instruments pursuant to the valuation hierarchy are as follows: Investment Securities Available for Sale 96.1 107.4 Loans - Other Real Estate Owned – Assets and liabilities measured at fair value are as follows as of December 31, 2022 (for purpose of this table the impaired loans are shown net of the related allowance): Schedule of summary of assets and liabilities measured at fair value (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Treasuries $ — $ 11,685 $ U.S. Government Agencies — 9,399 — Taxable municipals — 16,815 — Corporate bonds — 3,136 — Mortgage backed securities — 55,041 — (On a non-recurring basis) Other real estate owned — — 261 Impaired loans: Real estate secured: Commercial — — 205 Construction and land development — — — Residential 1-4 family — — 8 Multifamily — — — Farmland — — — Commercial — — — Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ — $ 96,076 $ 474 Assets and liabilities measured at fair value are as follows as of December 31, 2021 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Treasuries $ — $ 7,671 $ — U.S. Government Agencies — 9,089 — Taxable municipals — 22,980 — Corporate bonds — 2,019 — Mortgage backed securities — 65,599 — (On a non-recurring basis) Other real estate owned — — 1,361 Impaired loans: Real estate secured: Commercial — — 221 Construction and land development — — — Residential 1-4 family — — 287 Multifamily — — — Farmland — — 180 Commercial — — 26 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ — $ 107,358 $ 2,075 For Level 3 assets measured at fair value on a recurring or non-recurring basis as of December 31, 2022 and 2021, the significant unobservable inputs used in the fair value measurements were as follows: Schedule of significant unobservable inputs In level 3 assets (Dollars in thousands) Fair Value at December 31, 2022 Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 213 $ 714 Appraised Value Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 18 Other Real Estate Owned $ 261 $ 1,361 Appraised Value Discounts to reflect current market conditions and estimated costs to sell 0 18 Fair Value of Financial Instruments The carrying amount and fair value of the Company’s financial instruments that are not required to be measured or reported at fair value on a recurring basis are as follows: Schedule of estimated fair value of financial instruments Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2022 Financial instruments – assets Net loans $ 577,886 $ 552,675 $ — $ 552,462 $ 213 Financial instruments – liabilities Time deposits 188,233 187,179 — 187,179 — Borrowed funds 16,496 14,825 — 14,825 — December 31, 2021 Financial instruments – assets Net loans $ 587,009 $ 580,024 $ — $ 579,310 $ 714 Financial instruments – liabilities Time deposits 196,285 198,353 — 198,353 — Borrowed funds 16,496 15,649 — 15,649 — Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, 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 can significantly affect the estimates. Estimated fair values have been determined by the Company using historical data, as generally provided in the Company’s regulatory reports, and an estimation methodology suitable for each category of financial instruments. The Company’s fair value estimates, methods and assumptions are set forth below for the Company’s other financial instruments. The carrying value of cash and due from banks, federal funds sold, interest-bearing deposits, deposits with no stated maturities and accrued interest approximates fair value and is excluded from the table above. The methods utilized to measure the fair value of financial instruments represent an approximation of exit price; however, an actual exit price may differ. |
REVENUE FROM CONTRACTS WITH CUS
REVENUE FROM CONTRACTS WITH CUSTOMERS | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE FROM CONTRACTS WITH CUSTOMERS | NOTE 23 REVENUE FROM CONTRACTS WITH CUSTOMERS All of our revenue from contracts with customers as defined in ASC 606 is recognized within noninterest income. The following table presents Noninterest Income by revenue stream for the years ended December 31, 2022 and 2021. Schedule of revenue from contracts with customers (Dollars are in thousands) 2022 2021 Service charges and fees $ 3,969 $ 3,724 Card processing and interchange income 3,769 3,871 Insurance and investment fees 954 1,029 Gains on sales of available-for-sale securities (1) — 322 Other noninterest income 548 1,034 Total noninterest income $ 9,240 $ 9,980 (1) – Not within the scope of ASU 2014-9 Certain revenues are earned from contracts with customers. These revenues are recognized when the promised services are rendered to the customer and reflects the entitled consideration received in exchange for those services. Service charges and fees Card processing and interchange fees Insurance and investment fees |
NONINTEREST EXPENSES
NONINTEREST EXPENSES | 12 Months Ended |
Dec. 31, 2022 | |
Noninterest Expenses | |
NONINTEREST EXPENSES | NOTE 24 NONINTEREST EXPENSES Other operating expenses, included as part of noninterest expenses, consisted of the following for the years ended December 31, 2022 and 2021: Schedule of noninterest expenses (Dollars are in thousands) 2022 2021 Advertising, sponsorships and donations $ 162 $ 252 ATM network expense 1,471 1,473 Legal and professional fees 1,120 922 Consulting fees 272 269 Loan related expenses 416 599 Printing and supplies 160 133 FDIC insurance premiums 217 266 Other real estate owned expenses, net 176 506 Other operating expenses 2,656 2,556 Total $ 6,650 $ 6,976 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | NOTE 25 SUBSEQUENT EVENTS Subsequent events are events or transactions that occur after the balance sheet date but before financial statements are issued. Recognized subsequent events are events or transactions that provide additional evidence about conditions that existed at the date of the balance sheet, including the estimates inherent in the process of preparing financial statements. Non-recognized subsequent events are events that provide evidence about conditions that did not exist at the date of the balance sheet but arose after that date. Management has reviewed events occurring through the date the financial statements were available to be issued and has identified the following as a non-recognized subsequent event. On February 27, 2023, the board of directors declared a dividend of $0.06 per share payable on March 31, 2023 to shareholders of record as of March 15, 2023. On February 27, 2023, the board of directors authorized the continuation of the Company’s repurchase of up to 500,000 shares of its common stock through March 31, 2024. This is a continuation of the repurchase program originally announced April 28, 2022, which was set to expire March 31, 2023. To the date of this announced continuation, 82,352 shares have been repurchased at an average price of $2.32 per share, leaving 417,648 shares available for repurchase. Repurchases made through this program will be made through open market purchases or in privately negotiated transactions. On February 27, 2023 the board of directors approved and adopted the New Peoples Bankshares, Inc. Long-Term Cash Incentive Plan (the Plan). The Plan, which became effective on February 27, 2023, provides for cash incentive awards to Plan participants based on the Company’s quarterly earnings per share of common stock over the period specified in the Plan. Certain members of management or highly compensated employees of the Company or the Bank are eligible to participate in the Plan. On February 28, 2023, the executive committee of the board of directors awarded a combined 500,000 notional shares to five members of management. Individual awards are settled solely in cash, determined by multiplying quarterly earnings per share by the number of notional shares covered by a Plan award. The Plan does not grant participants equity in the Company and does not create any shareholders rights. |
RECENT ACCOUNTING DEVELOPMENTS
RECENT ACCOUNTING DEVELOPMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING DEVELOPMENTS | NOTE 26 RECENT ACCOUNTING DEVELOPMENTS The following is a summary of recent authoritative announcements: In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The ASU, as amended, requires an entity to measure expected credit losses for financial assets carried at amortized cost based on historical experience, current conditions, and reasonable and supportable forecasts. Among other things, the ASU also amended the impairment model for available for sale securities and addressed purchased financial assets with deterioration. The Company adopted ASU 2016-13 as of January 1, 2023 in accordance with the required implementation date and recorded the impact of adoption to retained earnings, net of deferred income taxes, as required by the standard. The adjustment recorded at adoption, was not significant to the overall allowance for credit losses or shareholders’ equity as compared to December 31, 2022 and consisted of adjustments to the allowance for credit losses on loans, as well as an adjustment to the Company’s reserve for unfunded loan commitments. Subsequent to adoption, the Company will record adjustments to its allowance(s) for credit losses and reserves for unfunded commitments through the provision for credit losses in the consolidated statements of income. The Company is utilizing a third-party model to tabulate its estimate of current expected credit losses, using a loan-level probability of default / loss given default cash flow method with an exposure at default model methodology. In accordance with ASC 326, the Company has segmented its loan portfolio based on similar risk characteristics which included call report classification and risk rating. The Company primarily utilizes the cohort and the probability of default/loss given default methodologies for its reasonable and supportable forecasting of current expected credit losses. To further adjust the allowance for credit losses for expected losses not already included within the quantitative component of the calculation, the Company may consider the following qualitative adjustment factors: changes to: lending policies and procedures, national and local economic conditions, the experience and ability of management and staff; the volume and severity of past due, rated and nonaccrual assets, loan review system, collateral value, concentrations of credit, and legal or regulatory requirements and competition. The Company’s CECL implementation process was overseen by the Audit and Risk Committee of the board of directors, and managed by credit, finance and risk management personnel, to include an assessment of data availability and gap analysis, data collection, consideration and analysis of multiple loss estimation methodologies, an assessment of relevant qualitative factors and correlation analysis of multiple potential loss drivers and their impact on the Company’s historical loss experience. During 2022, the Company calculated its current expected credit losses model in parallel to its incurred loss model in order to further refine the methodology and model. In addition, the Company engaged a third-party to perform a comprehensive model validation. Effective November 25, 2019, the SEC adopted Staff Accounting Bulletin (SAB) 119. SAB 119 updated portions of SEC interpretative guidance to align with FASB ASC 326, “Financial Instruments – Credit Losses.” It covers topics including (1) measuring current expected credit losses; (2) development, governance, and documentation of a systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. In March 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020.The Company has adopted an alternative reference rate for loans based on LIBOR and is assessing alternatives for financial instruments referencing LIBOR that do not allow for the substitution of an alternative reference rate. The Company is assessing ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments that have not already been transitioned to an alternative reference rate. In June 2022, the FASB issued ASU 2022-03, “Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions”. ASU 2022-03 clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The ASU is effective for fiscal years, including interim periods within those fiscal years, beginning after December 15, 2023. Early adoption is permitted. The Company does not expect the adoption of ASU 2022-03 to have a material impact on its consolidated financial statements. In March 2022, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2022-02, “Financial Instruments-Credit Losses (Topic 326), Troubled Debt Restructurings and Vintage Disclosures.” ASU 2022-02 addresses areas identified by the FASB as part of its post-implementation review of the credit losses standard (ASU 2016-13) that introduced the CECL model. The amendments eliminate the accounting guidance for troubled debt restructurings by creditors that have adopted the CECL model and enhance the disclosure requirements for loan refinancings and restructurings made with borrowers experiencing financial difficulty. In addition, the amendments require a public business entity to disclose current-period gross write-offs for financing receivables and net investment in leases by year of origination in the vintage disclosures. The amendments in this ASU should be applied prospectively, except for the transition method related to the recognition and measurement of TDRs, an entity has the option to apply a modified retrospective transition method, resulting in a cumulative-effect adjustment to retained earnings in the period of adoption. For entities that have adopted ASU 2016-13, ASU 2022-02 is effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For entities that have not yet adopted ASU 2016-13, the effective dates for ASU 2022-02 are the same as the effective dates in ASU 2016-13. Early adoption is permitted if an entity has adopted ASU 2016-13. An entity may elect to early adopt the amendments about TDRs and related disclosure enhancements separately from the amendments related to vintage disclosures. The Company is currently assessing the impact that ASU 2022-02 will have on its consolidated financial statements. In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”. ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the London Interbank Offered Rate (LIBOR) would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. The Company is assessing ASU 2022-06 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments that have not already been transitioned to an alternative reference rate. Other accounting standards that have been issued or proposed by the FASB or other standards-setting bodies are not expected to have a material impact on the Company’s financial position, results of operations or cash flows. |
PARENT CORPORATION ONLY FINANCI
PARENT CORPORATION ONLY FINANCIAL STATEMENTS | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
PARENT CORPORATION ONLY FINANCIAL STATEMENTS | NOTE 27 PARENT CORPORATION ONLY FINANCIAL STATEMENTS CONDENSED BALANCE SHEETS AS OF DECEMBER 31, 2022 AND 2021 (Dollars in Thousands) Schedule of parent corporation only condensed balance sheets 2022 2021 ASSETS Due from banks $ 521 $ 187 Investment in subsidiaries 72,360 78,460 Other assets 1,150 1,645 Total assets $ 74,031 $ 80,292 LIABILITIES Accrued interest payable $ 277 $ 104 Accrued expenses and other liabilities 39 61 Trust preferred securities 16,496 16,496 Total liabilities 16,812 16,661 SHAREHOLDERS’ EQUITY Common stock - $2.00 par value, 50,000,000 shares authorized; 23,848,491 and 23,922,086 shares issued and outstanding at December 31, 2022 and 2021, respectively 47,697 47,844 Additional paid capital 14,546 14,570 Retained earnings 8,917 2,031 Accumulated other comprehensive loss (13,941 ) (814 ) Total shareholders’ equity 57,219 63,631 Total liabilities and shareholders’ equity $ 74,031 $ 80,292 CONDENSED STATEMENTS OF INCOME FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (Dollars in thousands) Schedule of parent corporation only condensed statements of income 2022 2021 Income Miscellaneous income $ 22 $ 13 Dividends from subsidiaries 1,749 430 Undistributed income of subsidiaries 7,027 7,026 Total income 8,798 7,469 Expenses Trust preferred securities interest expense 729 420 Professional fees 116 99 Other operating expenses 57 58 Total expenses 902 577 Income before income taxes 7,896 6,892 Income tax benefit (186 ) (118 ) Net income $ 8,082 $ 7,010 CONDENSED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED DECEMBER 31, 2022 AND 2021 (Dollars in thousands) Schedule of parent corporation only condensed statements of cash flows 2022 2021 Cash flows from operating activities Net income $ 8,082 $ 7,010 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries (7,027 ) (7,026 ) Net decrease in other assets 495 24 Net increase in other liabilities 151 (36 ) Net cash provided by (used in) operating activities 1,701 (28 ) Cash flows from financing activities: Repurchase of common stock (171 ) — Cash dividends paid (1,196 ) — Net cash used in financing activities (1,367 ) — Net increase (decrease) in cash and cash equivalents 334 (28 ) Cash and cash equivalents, beginning of year 187 215 Cash and cash equivalents, end of year $ 521 $ 187 |
SUMMARY OF SIGNIFICANT ACCOUN_2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Consolidation | Basis of Presentation and Consolidation |
Use of Estimates | Use of Estimates |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investment Securities | Investment Securities The amortization of premiums and accretion of discounts are recognized in interest income using the effective interest method over the period to maturity for discounts and the earlier of call date or maturity for premiums. Realized gains and losses on dispositions are based on the net proceeds and the adjusted book value of the securities sold, using the specific identification method. Realized gains (losses) on securities available-for-sale are included in noninterest income and, when applicable, are reported as a reclassification adjustment, net of tax, in other comprehensive loss. Unrealized gains and losses on investment securities available for sale are based on the difference between book value and fair value of each security. These gains and losses are credited or charged to other comprehensive loss, net of tax, whereas realized gains and losses flow through the statements of income. |
Loans held for sale | Loans held for sale |
Loans | Loans It is the Company’s policy to stop accruing interest on a loan, and classify that loan as non-accrual under the following circumstances: (a) whenever we are advised by the borrower that scheduled payment or interest payments cannot be met, (b) when our best judgment indicates that payment in full of principal and interest can no longer be expected, or (c) when any such loan or obligation becomes delinquent for 90 days unless it is both well secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income, except in the case of a nonaccrual loan that is well secured and in the process of collection, in which case, the interest accrued but not collected is not reversed. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual status. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, six consecutive timely payments are made, and prospects for future contractual payments are reasonably assured. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan by loan basis for commercial and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral dependent. |
Significant Group Concentrations of Credit Risk | Significant Group Concentrations of Credit Risk |
Allowance for Loan Losses | Allowance for Loan Losses The allowance is increased by a provision for loan losses, which is charged to expense and reduced by charge-offs, net of recoveries. Loans are charged against the allowance for loan losses when management believes that collectability of all or part of the principal is unlikely. Past due status is determined based on contractual terms. In regard to our consumer and consumer real estate loan portfolio, the Company uses the guidance found in the Uniform Retail Credit Classification and Account Management Policy which affects our estimate of the allowance for loan losses. Under this approach, a consumer or consumer real estate loan must initially have a credit risk grade of Pass or better. Subsequently, if the loan becomes contractually 90 days past due or the borrower files for bankruptcy protection, the loan is downgraded to Substandard and placed in nonaccrual status. If the loan is unsecured, upon being deemed Substandard, the entire loan amount is charged off. For non-1-4 family residential loans that are 90 days past due or greater, or in bankruptcy, the collateral value less estimated liquidation costs is compared to the loan balance to calculate any potential deficiency. If the collateral is sufficient then no charge-off is necessary. If a deficiency exists, then upon the loan becoming contractually 120 days past due, the deficiency is charged-off against the allowance for loan loss. In the case of 1-4 family residential or home equity loans, upon the loan becoming 120 days past due, a current value is obtained and after application of an estimated liquidation discount, a comparison is made to the loan balance to calculate any deficiency. Subsequently, any noted deficiency is then charged-off against the allowance for loan loss when the loan becomes contractually 180 days past due. If the customer has filed bankruptcy, then within 60 days of the bankruptcy notice, any calculated deficiency is charged-off against the allowance for loan loss. Collection efforts continue by means of repossessions or foreclosures, and upon bank ownership, liquidation ensues. |
Bank Premises and Equipment | Bank Premises and Equipment Schedule of estimated useful lives Type Estimated useful life Buildings 39 Paving and landscaping 15 Computer equipment and software 3 5 Vehicles 5 Furniture and other equipment 5 10 Leasehold improvements are amortized over the terms of the respective leases or the estimated useful lives of the improvements, whichever is shorter. Repairs and maintenance costs are recorded as a component of noninterest expense as incurred. |
Other Real Estate Owned | Other Real Estate Owned |
Bank Owned Life Insurance (BOLI) | Bank Owned Life Insurance (BOLI) |
Leases | Leases |
Income Taxes | Income Taxes The Company recognizes the tax benefit from an uncertain tax position only if it is more likely than not the tax position will be sustained on examination by the taxing authorities, based on the technical merits of the position. The tax benefits recognized in the financial statements from such positions are then measured based on the largest benefit that has a greater than 50% likelihood of being realized upon settlement. See Note 10, Income Taxes, for additional information. The Company records any penalties and interest attributed to uncertain tax positions as a component of income tax expenses. |
Income Per Share | Income Per Share |
Financial Instruments – Off-balance-sheet instruments | Financial Instruments – Off-balance-sheet instruments |
Financial Instruments – Fair Value | Financial Instruments – Fair Value |
Comprehensive (Loss) Income | Comprehensive (Loss) Income |
Revenue from Contracts with Customers | Revenue from Contracts with Customers |
Advertising Cost | Advertising Cost 162,000 252,000 |
Reclassification | Reclassification |
Subsequent Events | Subsequent Events |
SUMMARY OF SIGNIFICANT ACCOUN_3
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of estimated useful lives | Schedule of estimated useful lives Type Estimated useful life Buildings 39 Paving and landscaping 15 Computer equipment and software 3 5 Vehicles 5 Furniture and other equipment 5 10 |
INCOME PER SHARE (Tables)
INCOME PER SHARE (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of basic and diluted net loss per common share calculations | Schedule of basic and diluted net loss per common share calculations (Amounts in thousands, except For the year ended share and per share data) December 31, 2022 2021 Net income $ 8,082 $ 7,010 Weighted average shares outstanding 23,898,185 23,922,086 Weighted average dilutive shares outstanding 23,898,185 23,992,086 Basic and diluted income per share $ 0.34 $ 0.29 |
INVESTMENT SECURITIES (Tables)
INVESTMENT SECURITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment securities activity: | |
Schedule of securities amortized cost and estimated fair value | Schedule of securities amortized cost and estimated fair value Gross Gross Approximate Amortized Unrealized Unrealized Fair (Dollars are in thousands) Cost Gains Losses Value December 31, 2022 U.S. Treasuries $ 12,642 $ — $ 957 $ 11,685 U.S. Government Agencies 10,129 4 734 9,399 Taxable municipals 23,022 — 6,207 16,815 Corporate bonds 3,512 — 376 3,136 Mortgage backed securities 64,419 — 9,378 55,041 Total Securities available for sale $ 113,724 $ 4 $ 17,652 $ 96,076 December 31, 2021 U.S. Treasuries $ 7,791 $ 2 $ 122 $ 7,671 U.S. Government Agencies 9,098 77 86 9,089 Taxable municipals 23,075 159 254 22,980 Corporate bonds 2,014 23 18 2,019 Mortgage backed securities 66,410 143 954 65,599 Total Securities available for sale $ 108,388 $ 404 $ 1,434 $ 107,358 |
Schedule of fair value and gross unrealized losses on investment securities | Schedule of fair value and gross unrealized losses on investment securities Less than 12 Months 12 Months or More Total (Dollars are in thousands) Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses December 31, 2022 U.S. Treasuries $ 4,761 $ 145 $ 6,922 $ 812 $ 11,683 $ 957 U.S. Government Agencies 5,925 348 3,295 386 9,220 734 Taxable municipals 3,689 1,113 13,127 5,094 16,816 6,207 Corporate bonds 2,375 136 761 240 3,136 376 Mortgage backed securities 11,338 861 43,612 8,517 54,950 9,378 Total $ 28,088 $ 2,603 $ 67,717 $ 15,049 $ 95,805 $ 17,652 December 31, 2021 U.S. Treasuries $ 6,200 $ 122 $ — $ — $ 6,200 $ 122 U.S. Government Agencies 977 10 3,434 76 4,411 86 Taxable municipals 13,040 237 387 17 13,427 254 Corporate bonds 1,482 18 — — 1,482 18 Mortgage backed securities 52,180 758 6,282 196 58,462 954 Total $ 73,879 $ 1,145 $ 10,103 $ 289 $ 83,982 $ 1,434 |
Schedule of amortized cost and fair value of investment securities contractual maturity | Schedule of amortized cost and fair value of investment securities contractual maturity Weighted (Dollars are in thousands) Amortized Fair Average Securities Available for Sale Cost Value Yield Due in one year or less $ 1,482 $ 1,475 4.51% Due after one year through five years 16,696 15,674 2.12% Due after five years through ten years 15,315 13,409 2.11% Due after ten years 80,231 65,518 1.86% Total $ 113,724 $ 96,076 1.97% |
LOANS (Tables)
LOANS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Summary of loans receivable outstanding | Summary of loans receivable outstanding December 31, (Dollars are in thousands) 2022 2021 Real estate secured: Commercial $ 197,069 $ 206,162 Construction and land development 42,470 32,325 Residential 1-4 family 227,232 224,530 Multifamily 29,710 33,048 Farmland 17,744 18,735 Total real estate loans 514,225 514,800 Commercial 46,697 54,325 Agriculture 3,756 4,021 Consumer installment loans 19,309 18,756 All other loans 626 1,842 Total loans $ 584,613 $ 593,744 |
Summary of loans receivable on nonaccrual status | Summary of loans receivable on nonaccrual status (Dollars are in thousands) 2022 2021 Real estate secured: Commercial $ — $ 415 Construction and land development 471 37 Residential 1-4 family 2,597 2,314 Multi-family 268 111 Farmland 41 48 Total real estate loans 3,377 2,925 Commercial — 9 Consumer installment and other loans 36 7 Total loans receivable on nonaccrual status $ 3,413 $ 2,941 |
Summary of impaired loans | Summary of impaired loans As of December 31, 2022 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 124 $ 6 $ 90 $ 131 $ — Construction and land development 114 17 471 491 — Residential 1-4 family 1,585 48 1,617 1,972 — Multifamily — — — — — Farmland 307 24 248 417 — Commercial 14 1 23 31 — Agriculture — — — — — Consumer installment loans 1 — — — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 407 2 268 338 63 Construction and land development 291 — — — — Residential 1-4 family 201 6 32 48 23 Multifamily 20 — — — — Farmland 63 — — — — Commercial 27 1 — — — Agriculture — — — — — Consumer installment loans — — — — — All other loans — — — — — Total $ 3,154 $ 105 $ 2,749 $ 3,428 $ 86 As of December 31, 2021 (Dollars are in thousands) Average Recorded Investment Interest Income Recognized Recorded Investment Unpaid Principal Balance Related Allowance With no related allowance recorded: Real estate secured: Commercial $ 245 $ — $ 99 $ 140 $ — Construction and land development 64 18 24 298 — Residential 1-4 family 1,720 24 1,508 1,791 — Multifamily — — — — — Farmland 438 14 320 490 — Commercial — — — — — Agriculture — — — — — Consumer installment loans 3 — 2 2 — All other loans — — — — — With an allowance recorded: Real estate secured: Commercial 871 3 315 372 94 Construction and land development — — — — — Residential 1-4 family 338 6 340 372 53 Multifamily — — — — — Farmland 121 4 197 209 17 Commercial 109 1 28 35 2 Agriculture — — — — — Consumer installment loans — — — — — All other loans — — — — — Total $ 3,909 $ 70 $ 2,833 $ 3,709 $ 166 |
Summary of age analysis of past due loans receivable | Summary of age analysis of past due loans receivable As of December 31, 2022 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ 268 $ — $ — $ 268 $ 196,801 $ 197,069 Construction and land development 89 — — 89 42,381 42,470 Residential 1-4 family 3,521 543 341 4,405 222,827 227,232 Multifamily 229 — — 229 29,481 29,710 Farmland 285 — — 285 17,459 17,744 Total real estate loans 4,392 543 341 5,276 508,949 514,225 Commercial 56 — — 56 46,641 46,697 Agriculture — — — — 3,756 3,756 Consumer installment loans 73 17 17 107 19,202 19,309 All other loans 59 — — 59 567 626 Total loans $ 4,580 $ 560 $ 358 $ 5,498 $ 579,115 $ 584,613 As of December 31, 2021 (Dollars are in thousands) Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans 90 or More Days Past Due Total Past Due Loans Current Loans Total Loans Real estate secured: Commercial $ — $ — $ — $ — $ 206,162 $ 206,162 Construction and land development 7 — 7 14 32,311 32,325 Residential 1-4 family 2,473 240 486 3,199 221,331 224,530 Multifamily — — 111 111 32,937 33,048 Farmland — — — — 18,735 18,735 Total real estate loans 2,480 240 604 3,324 511,476 514,800 Commercial 5 — — 5 54,320 54,325 Agriculture — — — — 4,021 4,021 Consumer installment loans 56 5 — 61 18,695 18,756 All other loans — — — — 1,842 1,842 Total loans $ 2,541 $ 245 $ 604 $ 3,390 $ 590,354 $ 593,744 |
Summary of risk category of loans receivable | Summary of risk category of loans receivable As of December 31, 2022 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 195,376 $ 1,425 $ 268 $ — $ 197,069 Construction and land development 41,882 117 471 — 42,470 Residential 1-4 family 224,228 406 2,598 — 227,232 Multifamily 29,503 207 — — 29,710 Farmland 16,848 855 41 — 17,744 Total real estate loans 507,837 3,010 3,378 — 514,225 Commercial 46,471 226 — — 46,697 Agriculture 3,756 — — — 3,756 Consumer installment loans 19,272 2 35 — 19,309 All other loans 626 — — — 626 Total $ 577,962 $ 3,238 $ 3,413 $ — $ 584,613 As of December 31, 2021 (Dollars are in thousands) Pass Special Mention Substandard Doubtful Total Real estate secured: Commercial $ 198,022 $ 7,725 $ 415 $ — $ 206,162 Construction and land development 31,366 922 37 — 32,325 Residential 1-4 family 221,342 915 2,273 — 224,530 Multifamily 32,499 438 111 — 33,048 Farmland 18,137 550 48 — 18,735 Total real estate loans 501,366 10,550 2,884 — 514,800 Commercial 53,162 1,154 9 — 54,325 Agriculture 4,021 — — — 4,021 Consumer installment loans 18,746 2 8 — 18,756 All other loans 1,842 — — — 1,842 Total $ 579,137 $ 11,706 $ 2,901 $ — $ 593,744 |
ALLOWANCE FOR LOAN LOSSES (Tabl
ALLOWANCE FOR LOAN LOSSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of allocation of portion of allowance | Schedule of allocation of portion of allowance Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Year ended December 31, 2022 Beginning balance $ 2,134 $ 189 $ 2,237 $ 254 $ 149 $ 1,099 $ 28 $ 108 $ 537 $ 6,735 Charge-offs (5) (149) (64) (111) (1) (45) (1) (559) - (935) Recoveries 33 6 100 2 14 31 1 115 - 302 Provision 202 299 91 117 (9) (704) 4 722 (97) 625 Ending balance $ 2,364 $ 345 $ 2,364 $ 262 $ 153 $ 381 $ 32 $ 386 $ 440 $ 6,727 Allowance for loan losses at December 31, 2022 Individually evluated for impairment $ 63 $ - $ 23 $ - $ - $ - $ - $ - $ - $ 86 Collectively evaluated for impairment 2,301 345 2,341 262 153 381 32 386 440 6,641 $ 2,364 $ 345 $ 2,364 $ 262 $ 153 $ 381 $ 32 $ 386 $ 440 $ 6,727 Loans at December 31, 2022 Individually evluated for impairment $ 358 $ 471 $ 1,649 $ - $ 248 $ 23 $ - $ - $ - $ 2,749 Collectively evaluated for impairment 196,711 41,999 225,583 29,710 17,496 46,965 3,756 19,644 - 581,864 $ 197,069 $ 42,470 $ 227,232 $ 29,710 $ 17,744 $ 46,988 $ 3,756 $ 19,644 $ - $ 584,613 Real estate secured (Dollars are in thousands) Commercial Construction and Land Development Residential 1-4 family Multifamily Farmland Commercial Agriculture Consumer and All Other Unallocated Total Year ended December 31, 2021 Beginning balance $ 2,281 $ 233 $ 1,951 $ 151 $ 97 $ 2,275 $ 40 $ 163 $ - $ 7,191 Charge-offs (915) - (48) - - (92) - (78) - (1,133) Recoveries 2 6 85 - 29 137 1 45 - 305 Provision 766 (50) 249 103 23 (1,221) (13) (22) 537 372 Ending balance $ 2,134 $ 189 $ 2,237 $ 254 $ 149 $ 1,099 $ 28 $ 108 $ 537 $ 6,735 Allowance for loan losses at December 31, 2021 Individually evluated for impairment $ 94 $ - $ 53 $ - $ 17 $ 2 $ - $ - $ - $ 166 Collectively evaluated for impairment 2,040 189 2,184 254 132 1,097 28 108 537 6,569 $ 2,134 $ 189 $ 2,237 $ 254 $ 149 $ 1,099 $ 28 $ 108 $ 537 $ 6,735 Loans at December 31, 2021 Individually evluated for impairment $ 414 $ 24 $ 1,848 $ - $ 517 $ 28 $ - $ 2 $ - $ 2,833 Collectively evaluated for impairment 205,748 32,301 222,682 33,048 18,218 54,297 4,021 20,596 - 590,911 $ 206,162 $ 32,325 $ 224,530 $ 33,048 $ 18,735 $ 54,325 $ 4,021 $ 20,598 $ - $ 593,744 |
TROUBLED DEBT RESTRUCTURINGS (T
TROUBLED DEBT RESTRUCTURINGS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Troubled Debt Restructurings | |
Schedule of loans modified as troubled debt restructurings | Schedule of loans modified as troubled debt restructurings December 31, 2022 December 31, 2021 (Dollars are in thousands) # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment # of Loans Pre-Mod. Recorded Investment Post-Mod. Recorded Investment Real estate secured: Commercial — $ — $ — — $ — $ — Construction and land Development — — — — — — Residential 1-4 family — — — 1 35 35 Multifamily — — — — — — Farmland — — — — — — Total real estate loans — — — 1 35 35 Commercial — — — — — — Agriculture — — — — — — Consumer installment loans — — — — — — All other loans — — — — — — Total — $ — $ — 1 $ 35 $ 35 |
BANK PREMISES AND EQUIPMENT (Ta
BANK PREMISES AND EQUIPMENT (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of bank premises and equipment | Schedule of bank premises and equipment (Dollars are in thousands) 2022 2021 Land $ 7,371 $ 7,424 Buildings and improvements 15,972 16,252 Furniture and equipment 13,965 14,139 37,308 37,815 Less accumulated depreciation (18,018 ) (17,080 ) Bank Premises and Equipment $ 19,290 $ 20,735 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of pre-tax book income | Schedule of pre-tax book income (Dollars are in thousands) 2022 2021 Current income tax expense (benefit) Federal $ 1,759 $ (172 ) State — — Total current income tax expense (benefit) 1,759 (172 ) Deferred income tax expense Federal 500 2,067 State 40 47 Total deferred income tax expense 540 2,114 Income tax expense $ 2,299 $ 1,942 |
Schedule of reconciliation of income tax expense | Schedule of reconciliation of income tax expense (Dollars are in thousands) 2022 2021 Income tax expense (benefit) at the applicable federal rate $ 2,180 $ 1,879 Permanent differences resulting from: Nondeductible expenses 9 7 Tax exempt interest income (3 ) (4 ) Bank owned life insurance 29 (7 ) Other adjustments 84 67 Income tax expense $ 2,299 $ 1,942 |
Schedule of net deferred tax assets and liabilities | Schedule of net deferred tax assets and liabilities (Dollars are in thousands) 2022 2021 Deferred tax assets Allowance for loan losses $ 1,498 $ 1,500 Deferred compensation 80 85 Nonaccrual loan interest 543 532 Unrealized loss on securities available for sale 3,706 216 Other real estate owned 48 305 Amortization of core deposits — 6 Amortization of goodwill — 31 Capitalized interest and repair expense 22 23 Net operating loss carryforward — 460 Other 57 98 Total assets, gross 5,954 3,256 Deferred tax liabilities Accelerated depreciation 896 1,105 Prepaid expenses 17 27 Deferred loan costs 418 451 Total liabilities, gross 1,331 1,583 Net deferred tax asset $ 4,623 $ 1,673 |
TIME DEPOSITS (Tables)
TIME DEPOSITS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Time Deposits | |
Schedule of maturities | Schedule of maturities 2023 $ 123,270 2024 20,683 2025 29,987 2026 8,185 2027 6,108 After five years - Total $ 188,233 |
RELATED PARTY TRANSACTIONS (Tab
RELATED PARTY TRANSACTIONS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of related party | Schedule of related party For the year ended December 31, (Dollars in thousands) 2022 2021 Beginning balance $ 3,419 $ 4,187 New loans and advances on lines 2,636 2,620 Payments and other reductions (4,496 ) (3,388 ) Ending balance $ 1,559 $ 3,419 |
OTHER REAL ESTATE OWNED (Tables
OTHER REAL ESTATE OWNED (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Real Estate [Abstract] | |
Schedule of other real estate owned | Schedule of other real estate owned 2022 2021 (Dollars are in thousands) Balance, beginning of year $ 1,361 $ 3,334 Additions — 566 Transfers from premises and equipment — 950 Proceeds from sales (207 ) (2,645 ) Proceeds from insurance claims — (54 ) Loans made to finance sales (711 ) (400 ) Adjustment of carrying value (197 ) (466 ) Gains (losses) from sales 15 76 Balance, end of year $ 261 $ 1,361 |
LEASING ACTIVITIES (Tables)
LEASING ACTIVITIES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of future minimum rental commitments under the non-cancellable operating leases | Schedule of future minimum rental commitments under the non-cancellable operating leases 2023 $ 456 2024 456 2025 456 2026 456 2027 477 Thereafter 2,226 Total lease payments 4,527 Less imputed interest 802 Total $ 3,725 |
BORROWED FUNDS (Tables)
BORROWED FUNDS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Borrowed Funds | |
Schedule of breakdown of borrowed funds | Schedule of breakdown of borrowed funds FHLB Revolving Advances (a) Federal Funds Lines (b) FHLB Term Loans Short-Term (c) FHLB Term Loans Long-Term (d) NPB Capital Trust I (e) NPB Capital Trust 2 (e) Total Balance December 31, 2022 $ - $ - $ - $ - $ 11,341 $ 5,155 $ 16,496 Highest balance at any month-end - - 60,000 - 11,341 5,155 Average weighted balance 863 - 19,507 - 11,341 5,155 36,866 Average interest rate: Paid during the year 1.68% -% 2.48% -% 4.63% 3.79% 3.31% At year-end -% -% -% -% 6.68% 5.85% 6.42% Balance December 31, 2021 $ - $ - $ - $ - $ 11,341 $ 5,155 $ 16,496 Highest balance at any month-end - 1,020 5,000 - 11,341 5,155 Average weighted balance - 8 2,466 - 11,341 5,155 18,970 Average interest rate: Paid during the year - % 2.51% 1.36% -% 2.81% 1.97% 2.39% At year-end -% -% -% -% 2.72% 1.89% 2.46% |
Schedule of maturities of borrowed funds | Schedule of maturities of borrowed funds 2023 $ - 2024 - 2025 - 2026 - 2027 - 2028 and thereafter 16,496 $ 16,496 |
FINANCIAL INSTRUMENTS WITH OF_2
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, All Other Investments [Abstract] | |
Schedule of financial instruments with credit risk | Schedule of financial instruments with credit risk 2022 2021 (Dollars in thousands) Commitments to extend credit $ 84,149 $ 69,015 Standby letters of credit 3,731 3,684 |
CAPITAL (Tables)
CAPITAL (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Schedule of capital requirements | Schedule of capital requirements Actual Minimum Capital Requirement Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Dollars are in thousands) Amount Ratio Amount Ratio Amount Ratio December 31, 2022: Total Capital to Risk Weighted Assets $ 93,028 16.50% $45,106 8.0% $ 56,382 10.0% Tier 1 Capital to Risk Weighted Assets 86,301 15.31% 33,829 6.0% 45,106 8.0% Tier 1 Capital to Average Assets 86,301 10.40% 33,206 4.0% 41,508 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 86,301 15.31% 25,372 4.5% 36,648 6.5% December 31, 2021: Total Capital to Risk Weighted Assets $ 85,890 16.23% $ 42,332 8.0% $ 52,915 10.0% Tier 1 Capital to Risk Weighted Assets 79,274 14.98% 31,749 6.0% 42,332 8.0% Tier 1 Capital to Average Assets 79,274 9.86% 32,145 4.0% 40,181 5.0% Common Equity Tier 1 Capital to Risk Weighted Assets 79,274 14.98% 23,812 4.5% 34,395 6.5% |
FAIR VALUES (Tables)
FAIR VALUES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of summary of assets and liabilities measured at fair value | Schedule of summary of assets and liabilities measured at fair value (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Treasuries $ — $ 11,685 $ U.S. Government Agencies — 9,399 — Taxable municipals — 16,815 — Corporate bonds — 3,136 — Mortgage backed securities — 55,041 — (On a non-recurring basis) Other real estate owned — — 261 Impaired loans: Real estate secured: Commercial — — 205 Construction and land development — — — Residential 1-4 family — — 8 Multifamily — — — Farmland — — — Commercial — — — Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ — $ 96,076 $ 474 Assets and liabilities measured at fair value are as follows as of December 31, 2021 (for purpose of this table the impaired loans are shown net of the related allowance): (Dollars are in thousands) Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) (On a recurring basis) Available for sale investments U.S. Treasuries $ — $ 7,671 $ — U.S. Government Agencies — 9,089 — Taxable municipals — 22,980 — Corporate bonds — 2,019 — Mortgage backed securities — 65,599 — (On a non-recurring basis) Other real estate owned — — 1,361 Impaired loans: Real estate secured: Commercial — — 221 Construction and land development — — — Residential 1-4 family — — 287 Multifamily — — — Farmland — — 180 Commercial — — 26 Agriculture — — — Consumer installment loans — — — All other loans — — — Total $ — $ 107,358 $ 2,075 |
Schedule of significant unobservable inputs In level 3 assets | Schedule of significant unobservable inputs In level 3 assets (Dollars in thousands) Fair Value at December 31, 2022 Fair Value at December 31, 2021 Valuation Technique Significant Unobservable Inputs General Range of Significant Unobservable Input Values Impaired Loans $ 213 $ 714 Appraised Value Discounts to reflect current market conditions, ultimate collectability, and estimated costs to sell 0 18 Other Real Estate Owned $ 261 $ 1,361 Appraised Value Discounts to reflect current market conditions and estimated costs to sell 0 18 |
Schedule of estimated fair value of financial instruments | Schedule of estimated fair value of financial instruments Fair Value Measurements (Dollars are in thousands) Carrying Amount Fair Value Quoted market price in active markets (Level 1) Significant other observable inputs (Level 2) Significant unobservable inputs (Level 3) December 31, 2022 Financial instruments – assets Net loans $ 577,886 $ 552,675 $ — $ 552,462 $ 213 Financial instruments – liabilities Time deposits 188,233 187,179 — 187,179 — Borrowed funds 16,496 14,825 — 14,825 — December 31, 2021 Financial instruments – assets Net loans $ 587,009 $ 580,024 $ — $ 579,310 $ 714 Financial instruments – liabilities Time deposits 196,285 198,353 — 198,353 — Borrowed funds 16,496 15,649 — 15,649 — |
REVENUE FROM CONTRACTS WITH C_2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of revenue from contracts with customers | Schedule of revenue from contracts with customers (Dollars are in thousands) 2022 2021 Service charges and fees $ 3,969 $ 3,724 Card processing and interchange income 3,769 3,871 Insurance and investment fees 954 1,029 Gains on sales of available-for-sale securities (1) — 322 Other noninterest income 548 1,034 Total noninterest income $ 9,240 $ 9,980 |
NONINTEREST EXPENSES (Tables)
NONINTEREST EXPENSES (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Noninterest Expenses | |
Schedule of noninterest expenses | Schedule of noninterest expenses (Dollars are in thousands) 2022 2021 Advertising, sponsorships and donations $ 162 $ 252 ATM network expense 1,471 1,473 Legal and professional fees 1,120 922 Consulting fees 272 269 Loan related expenses 416 599 Printing and supplies 160 133 FDIC insurance premiums 217 266 Other real estate owned expenses, net 176 506 Other operating expenses 2,656 2,556 Total $ 6,650 $ 6,976 |
PARENT CORPORATION ONLY FINAN_2
PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of parent corporation only condensed balance sheets | Schedule of parent corporation only condensed balance sheets 2022 2021 ASSETS Due from banks $ 521 $ 187 Investment in subsidiaries 72,360 78,460 Other assets 1,150 1,645 Total assets $ 74,031 $ 80,292 LIABILITIES Accrued interest payable $ 277 $ 104 Accrued expenses and other liabilities 39 61 Trust preferred securities 16,496 16,496 Total liabilities 16,812 16,661 SHAREHOLDERS’ EQUITY Common stock - $2.00 par value, 50,000,000 shares authorized; 23,848,491 and 23,922,086 shares issued and outstanding at December 31, 2022 and 2021, respectively 47,697 47,844 Additional paid capital 14,546 14,570 Retained earnings 8,917 2,031 Accumulated other comprehensive loss (13,941 ) (814 ) Total shareholders’ equity 57,219 63,631 Total liabilities and shareholders’ equity $ 74,031 $ 80,292 |
Schedule of parent corporation only condensed statements of income | Schedule of parent corporation only condensed statements of income 2022 2021 Income Miscellaneous income $ 22 $ 13 Dividends from subsidiaries 1,749 430 Undistributed income of subsidiaries 7,027 7,026 Total income 8,798 7,469 Expenses Trust preferred securities interest expense 729 420 Professional fees 116 99 Other operating expenses 57 58 Total expenses 902 577 Income before income taxes 7,896 6,892 Income tax benefit (186 ) (118 ) Net income $ 8,082 $ 7,010 |
Schedule of parent corporation only condensed statements of cash flows | Schedule of parent corporation only condensed statements of cash flows 2022 2021 Cash flows from operating activities Net income $ 8,082 $ 7,010 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Equity in undistributed earnings of subsidiaries (7,027 ) (7,026 ) Net decrease in other assets 495 24 Net increase in other liabilities 151 (36 ) Net cash provided by (used in) operating activities 1,701 (28 ) Cash flows from financing activities: Repurchase of common stock (171 ) — Cash dividends paid (1,196 ) — Net cash used in financing activities (1,367 ) — Net increase (decrease) in cash and cash equivalents 334 (28 ) Cash and cash equivalents, beginning of year 187 215 Cash and cash equivalents, end of year $ 521 $ 187 |
SUMMARY OF SIGNIFICANT ACCOUN_4
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Line Items] | |||
Advertising Cost | $ 162,000 | $ 252,000 | |
Building [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 39 years | ||
Paving And Landscaping [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 15 years | ||
Computer Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 3 years | ||
Computer Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Vehicles [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Furniture and Fixtures [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 5 years | ||
Furniture and Fixtures [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Estimated useful life | 10 years |
INCOME PER SHARE (Details)
INCOME PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||
Net income | $ 8,082 | $ 7,010 |
Weighted average shares outstanding | 23,898,185 | 23,922,086 |
Weighted average dilutive shares outstanding | 23,898,185 | 23,992,086 |
Basic and diluted income per share | $ 0.34 | $ 0.29 |
DEPOSITS IN AND FEDERAL FUNDS_2
DEPOSITS IN AND FEDERAL FUNDS SOLD TO BANKS (Details Narrative) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Deposits In And Federal Funds Sold To Banks | ||
Commercial banks amounting | $ 47,700 | $ 46,000 |
Unsecured lines of credit | $ 30,000 | $ 30,000 |
INVESTMENT SECURITIES (Details)
INVESTMENT SECURITIES (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Amortized Cost | $ 113,724 | $ 108,388 |
Gross Unrealized Gains | 4 | 404 |
Gross Unrealized Losses | 17,652 | 1,434 |
Approximate Fair Value | 96,076 | 107,358 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 12,642 | 7,791 |
Gross Unrealized Gains | 2 | |
Gross Unrealized Losses | 957 | 122 |
Approximate Fair Value | 11,685 | 7,671 |
US Government Agencies Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 10,129 | 9,098 |
Gross Unrealized Gains | 4 | 77 |
Gross Unrealized Losses | 734 | 86 |
Approximate Fair Value | 9,399 | 9,089 |
Taxable Municipal Notes [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 23,022 | 23,075 |
Gross Unrealized Gains | 159 | |
Gross Unrealized Losses | 6,207 | 254 |
Approximate Fair Value | 16,815 | 22,980 |
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 3,512 | 2,014 |
Gross Unrealized Gains | 23 | |
Gross Unrealized Losses | 376 | 18 |
Approximate Fair Value | 3,136 | 2,019 |
Collateralized Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Amortized Cost | 64,419 | 66,410 |
Gross Unrealized Gains | 143 | |
Gross Unrealized Losses | 9,378 | 954 |
Approximate Fair Value | $ 55,041 | $ 65,599 |
INVESTMENT SECURITIES (Details
INVESTMENT SECURITIES (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 28,088 | $ 73,879 |
Unrealized Losses, Less than 12 Months | 2,603 | 1,145 |
Fair Value, 12 Months or More | 67,717 | 10,103 |
Unrealized Losses, 12 Months or More | 15,049 | 289 |
Fair Value, Total | 95,805 | 83,982 |
Unrealized Losses, Total | 17,652 | 1,434 |
US Treasury Securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 4,761 | 6,200 |
Unrealized Losses, Less than 12 Months | 145 | 122 |
Fair Value, 12 Months or More | 6,922 | |
Unrealized Losses, 12 Months or More | 812 | |
Fair Value, Total | 11,683 | 6,200 |
Unrealized Losses, Total | 957 | 122 |
US Government Agencies Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 5,925 | 977 |
Unrealized Losses, Less than 12 Months | 348 | 10 |
Fair Value, 12 Months or More | 3,295 | 3,434 |
Unrealized Losses, 12 Months or More | 386 | 76 |
Fair Value, Total | 9,220 | 4,411 |
Unrealized Losses, Total | 734 | 86 |
Taxable Municipal Notes [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 3,689 | 13,040 |
Unrealized Losses, Less than 12 Months | 1,113 | 237 |
Fair Value, 12 Months or More | 13,127 | 387 |
Unrealized Losses, 12 Months or More | 5,094 | 17 |
Fair Value, Total | 16,816 | 13,427 |
Unrealized Losses, Total | 6,207 | 254 |
Corporate Debt Securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 2,375 | 1,482 |
Unrealized Losses, Less than 12 Months | 136 | 18 |
Fair Value, 12 Months or More | 761 | |
Unrealized Losses, 12 Months or More | 240 | |
Fair Value, Total | 3,136 | 1,482 |
Unrealized Losses, Total | 376 | 18 |
Collateralized Mortgage-Backed Securities [Member] | ||
Marketable Securities [Line Items] | ||
Fair Value, Less than 12 Months | 11,338 | 52,180 |
Unrealized Losses, Less than 12 Months | 861 | 758 |
Fair Value, 12 Months or More | 43,612 | 6,282 |
Unrealized Losses, 12 Months or More | 8,517 | 196 |
Fair Value, Total | 54,950 | 58,462 |
Unrealized Losses, Total | $ 9,378 | $ 954 |
INVESTMENT SECURITIES (Detail_2
INVESTMENT SECURITIES (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment securities activity: | ||
Due in one year or less, amortized Cost | $ 1,482 | |
Due in one year or less, fair value | $ 1,475 | |
Due in one year or less, weighted average yield | 4.51% | |
Due after one year through five years, amortized cost | $ 16,696 | |
Due after one year through five years, fair value | $ 15,674 | |
Due after one year through five years, weighted average yield | 2.12% | |
Due after five years through ten years, amortized cost | $ 15,315 | |
Due after five years through ten years, fair value | $ 13,409 | |
Due after five years through ten years, weighted average yield | 2.11% | |
Due after ten years, amortized cost | $ 80,231 | |
Due after ten years, fair value | $ 65,518 | |
Due after ten years, weighted average yield | 1.86% | |
Amortized cost, total | $ 113,724 | $ 108,388 |
Approximate fair value | $ 96,076 | $ 107,358 |
Weighted average yield, total | 1.97% |
INVESTMENT SECURITIES (Detail_3
INVESTMENT SECURITIES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment securities activity: | ||
Investment securities of carrying value | $ 27,300 | $ 12,100 |
US Government Agencies Securities, at Carrying Value | $ 2,100 | $ 2,000 |
LOANS (Details)
LOANS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 584,613 | $ 593,744 |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 514,225 | 514,800 |
Commercial Borrower [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 54,325 | |
Commercial Borrower [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 197,069 | 206,162 |
Real Estate Investment [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 42,470 | 32,325 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 42,470 | 32,325 |
Residential Real Estate [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 227,232 | 224,530 |
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29,710 | 33,048 |
Multifamily [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29,710 | 33,048 |
Farmland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 17,744 | 18,735 |
Farmland [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 17,744 | 18,735 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 46,697 | 54,325 |
Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 3,756 | 4,021 |
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 19,309 | 18,756 |
All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 626 | 1,842 |
Total [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 584,613 | $ 593,744 |
LOANS (Details 1)
LOANS (Details 1) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | $ 3,413 | $ 2,941 |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 3,377 | 2,925 |
Commercial Borrower [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 9 | |
Commercial Borrower [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 415 | |
Real Estate Investment [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 471 | 37 |
Residential Real Estate [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 2,597 | 2,314 |
Multifamily [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 268 | 111 |
Farmland [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | 41 | 48 |
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable on nonaccrual status | $ 36 | $ 7 |
LOANS (Details 2)
LOANS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | $ 3,154 | $ 3,909 |
Interest Income Recognized | 105 | 70 |
Recorded Investment | 2,749 | 2,833 |
Unpaid Principal Balance | 3,428 | 3,709 |
Related Allowance | 86 | 166 |
Impaired Financing Receivables With No Related Allowance [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 14 | |
Interest Income Recognized | 1 | |
Recorded Investment | 23 | |
Unpaid Principal Balance | 31 | |
Related Allowance | ||
Impaired Financing Receivables With No Related Allowance [Member] | Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired Financing Receivables With No Related Allowance [Member] | Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1 | 3 |
Interest Income Recognized | ||
Recorded Investment | 2 | |
Unpaid Principal Balance | 2 | |
Related Allowance | ||
Impaired Financing Receivables With No Related Allowance [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired Financing Receivables With Related Allowance [Member] | Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 27 | 109 |
Interest Income Recognized | 1 | 1 |
Recorded Investment | 28 | |
Unpaid Principal Balance | 35 | |
Related Allowance | 2 | |
Impaired Financing Receivables With Related Allowance [Member] | Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired Financing Receivables With Related Allowance [Member] | Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Impaired Financing Receivables With Related Allowance [Member] | All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 407 | 871 |
Interest Income Recognized | 2 | 3 |
Recorded Investment | 268 | 315 |
Unpaid Principal Balance | 338 | 372 |
Related Allowance | 63 | 94 |
Commercial Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 124 | 245 |
Interest Income Recognized | 6 | |
Recorded Investment | 90 | 99 |
Unpaid Principal Balance | 131 | 140 |
Related Allowance | ||
Real Estate Investment [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 291 | |
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Real Estate Investment [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 114 | 64 |
Interest Income Recognized | 17 | 18 |
Recorded Investment | 471 | 24 |
Unpaid Principal Balance | 491 | 298 |
Related Allowance | ||
Residential Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 201 | 338 |
Interest Income Recognized | 6 | 6 |
Recorded Investment | 32 | 340 |
Unpaid Principal Balance | 48 | 372 |
Related Allowance | 23 | 53 |
Residential Real Estate [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 1,585 | 1,720 |
Interest Income Recognized | 48 | 24 |
Recorded Investment | 1,617 | 1,508 |
Unpaid Principal Balance | 1,972 | 1,791 |
Related Allowance | ||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 20 | |
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Multifamily [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | ||
Interest Income Recognized | ||
Recorded Investment | ||
Unpaid Principal Balance | ||
Related Allowance | ||
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 63 | 121 |
Interest Income Recognized | 4 | |
Recorded Investment | 197 | |
Unpaid Principal Balance | 209 | |
Related Allowance | 17 | |
Farmland [Member] | Real Estate [Member] | Impaired Financing Receivables With No Related Allowance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Average Recorded Investment | 307 | 438 |
Interest Income Recognized | 24 | 14 |
Recorded Investment | 248 | 320 |
Unpaid Principal Balance | 417 | 490 |
Related Allowance |
LOANS (Details 3)
LOANS (Details 3) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | $ 584,613 | $ 593,744 |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 4,392 | 2,480 |
Loans 60-89 Days Past Due | 543 | 240 |
Loans 90 or More Days Past Due | 341 | 604 |
Total Past Due Loans | 5,276 | 3,324 |
Current Loans | 508,949 | 511,476 |
Total loans and leases | 514,225 | 514,800 |
Commercial Borrower [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 5 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 5 | |
Current Loans | 54,320 | |
Total loans and leases | 54,325 | |
Commercial Borrower [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 268 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 268 | |
Current Loans | 196,801 | 206,162 |
Total loans and leases | 197,069 | 206,162 |
Real Estate Investment [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 89 | 7 |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 7 | |
Total Past Due Loans | 89 | 14 |
Current Loans | 42,381 | 32,311 |
Total loans and leases | 42,470 | 32,325 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 42,470 | 32,325 |
Residential Real Estate [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 3,521 | 2,473 |
Loans 60-89 Days Past Due | 543 | 240 |
Loans 90 or More Days Past Due | 341 | 486 |
Total Past Due Loans | 4,405 | 3,199 |
Current Loans | 222,827 | 221,331 |
Total loans and leases | 227,232 | 224,530 |
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 29,710 | 33,048 |
Multifamily [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 229 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | 111 | |
Total Past Due Loans | 229 | 111 |
Current Loans | 29,481 | 32,937 |
Total loans and leases | 29,710 | 33,048 |
Farmland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans and leases | 17,744 | 18,735 |
Farmland [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 285 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 285 | |
Current Loans | 17,459 | 18,735 |
Total loans and leases | 17,744 | 18,735 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 56 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 56 | |
Current Loans | 46,641 | |
Total loans and leases | 46,697 | 54,325 |
Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | ||
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | ||
Current Loans | 3,756 | 4,021 |
Total loans and leases | 3,756 | 4,021 |
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 73 | 56 |
Loans 60-89 Days Past Due | 17 | 5 |
Loans 90 or More Days Past Due | 17 | |
Total Past Due Loans | 107 | 61 |
Current Loans | 19,202 | 18,695 |
Total loans and leases | 19,309 | 18,756 |
All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 59 | |
Loans 60-89 Days Past Due | ||
Loans 90 or More Days Past Due | ||
Total Past Due Loans | 59 | |
Current Loans | 567 | 1,842 |
Total loans and leases | 626 | 1,842 |
Total [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans 30-59 Days Past Due | 4,580 | 2,541 |
Loans 60-89 Days Past Due | 560 | 245 |
Loans 90 or More Days Past Due | 358 | 604 |
Total Past Due Loans | 5,498 | 3,390 |
Current Loans | 579,115 | 590,354 |
Total loans and leases | $ 584,613 | $ 593,744 |
LOANS (Details 4)
LOANS (Details 4) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 584,613 | $ 593,744 |
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 514,225 | 514,800 |
Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 577,962 | 579,137 |
Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,238 | 11,706 |
Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,413 | 2,901 |
Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 514,225 | |
Real Estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 507,837 | 501,366 |
Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,010 | 10,550 |
Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,378 | 2,884 |
Real Estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Commercial Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 46,697 | 54,325 |
Commercial Portfolio Segment [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 46,471 | 53,162 |
Commercial Portfolio Segment [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 226 | 1,154 |
Commercial Portfolio Segment [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 9 | |
Commercial Portfolio Segment [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Commercial Portfolio Segment [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 197,069 | |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 195,376 | 198,022 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 1,425 | 7,725 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 268 | 415 |
Commercial Portfolio Segment [Member] | Real Estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Real Estate Investment [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 42,470 | 32,325 |
Real Estate Investment [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 42,470 | |
Real Estate Investment [Member] | Real Estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 41,882 | 31,366 |
Real Estate Investment [Member] | Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 117 | 922 |
Real Estate Investment [Member] | Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 471 | 37 |
Real Estate Investment [Member] | Real Estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 42,470 | 32,325 |
Residential Real Estate [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 227,232 | 224,530 |
Residential Real Estate [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 227,232 | |
Residential Real Estate [Member] | Real Estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 224,228 | 221,342 |
Residential Real Estate [Member] | Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 406 | 915 |
Residential Real Estate [Member] | Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 2,598 | 2,273 |
Residential Real Estate [Member] | Real Estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 29,710 | 33,048 |
Multifamily [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 29,710 | 33,048 |
Multifamily [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 29,710 | |
Multifamily [Member] | Real Estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 29,503 | 32,499 |
Multifamily [Member] | Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 207 | 438 |
Multifamily [Member] | Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 111 | |
Multifamily [Member] | Real Estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Farmland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 17,744 | 18,735 |
Farmland [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 17,744 | 18,735 |
Farmland [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 17,744 | |
Farmland [Member] | Real Estate [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 16,848 | 18,137 |
Farmland [Member] | Real Estate [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 855 | 550 |
Farmland [Member] | Real Estate [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 41 | 48 |
Farmland [Member] | Real Estate [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Agriculture [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,756 | 4,021 |
Agriculture [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 3,756 | 4,021 |
Agriculture [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Agriculture [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Agriculture [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Consumer Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 19,309 | 18,756 |
Consumer Loan [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 19,272 | 18,746 |
Consumer Loan [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 2 | 2 |
Consumer Loan [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 35 | 8 |
Consumer Loan [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
All Other Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 626 | 1,842 |
All Other Loans [Member] | Pass [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 626 | 1,842 |
All Other Loans [Member] | Special Mention [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
All Other Loans [Member] | Substandard [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
All Other Loans [Member] | Doubtful [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | ||
Commercial Borrower [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 54,325 | |
Commercial Borrower [Member] | Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | 197,069 | 206,162 |
Total [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans and Leases Receivable, Net of Deferred Income | $ 584,613 | $ 593,744 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans receivable | $ 584,613 | $ 593,744 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 2,134 | 2,281 |
Charge-offs | (5) | (915) |
Recoveries | 33 | 2 |
Provision | 202 | 766 |
Ending balance | 2,364 | 2,134 |
Individually evaluated for impairment | 63 | 94 |
Collectively evaluated for impairment | 2,301 | 2,040 |
Total | 2,364 | 2,134 |
Individually evaluated for impairment | 358 | 414 |
Collectively evaluated for impairment | 196,711 | 205,748 |
Loans receivable | 197,069 | 206,162 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 189 | 233 |
Charge-offs | (149) | |
Recoveries | 6 | 6 |
Provision | 299 | (50) |
Ending balance | 345 | 189 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 345 | 189 |
Total | 345 | 189 |
Individually evaluated for impairment | 471 | 24 |
Collectively evaluated for impairment | 41,999 | 32,301 |
Loans receivable | 42,470 | 32,325 |
Residential One Four Family [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 2,237 | 1,951 |
Charge-offs | (64) | (48) |
Recoveries | 100 | 85 |
Provision | 91 | 249 |
Ending balance | 2,364 | 2,237 |
Individually evaluated for impairment | 23 | 53 |
Collectively evaluated for impairment | 2,341 | 2,184 |
Total | 2,364 | 2,237 |
Individually evaluated for impairment | 1,649 | 1,848 |
Collectively evaluated for impairment | 225,583 | 222,682 |
Loans receivable | 227,232 | 224,530 |
Multifamily [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 254 | 151 |
Charge-offs | (111) | |
Recoveries | 2 | |
Provision | 117 | 103 |
Ending balance | 262 | 254 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 262 | 254 |
Total | 262 | 254 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 29,710 | 33,048 |
Loans receivable | 29,710 | 33,048 |
Farmland [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 149 | 97 |
Charge-offs | (1) | |
Recoveries | 14 | 29 |
Provision | (9) | 23 |
Ending balance | 153 | 149 |
Individually evaluated for impairment | 17 | |
Collectively evaluated for impairment | 153 | 132 |
Total | 153 | 149 |
Individually evaluated for impairment | 248 | 517 |
Collectively evaluated for impairment | 17,496 | 18,218 |
Loans receivable | 17,744 | 18,735 |
Commercials [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 1,099 | 2,275 |
Charge-offs | (45) | (92) |
Recoveries | 31 | 137 |
Provision | (704) | (1,221) |
Ending balance | 381 | 1,099 |
Individually evaluated for impairment | 2 | |
Collectively evaluated for impairment | 381 | 1,097 |
Total | 381 | 1,099 |
Individually evaluated for impairment | 23 | 28 |
Collectively evaluated for impairment | 46,965 | 54,297 |
Loans receivable | 46,988 | 54,325 |
Agricultures [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 28 | 40 |
Charge-offs | (1) | |
Recoveries | 1 | 1 |
Provision | 4 | (13) |
Ending balance | 32 | 28 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 32 | 28 |
Total | 32 | 28 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 3,756 | 4,021 |
Loans receivable | 3,756 | 4,021 |
Consumer And All Other [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 108 | 163 |
Charge-offs | (559) | (78) |
Recoveries | 115 | 45 |
Provision | 722 | (22) |
Ending balance | 386 | 108 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 386 | 108 |
Total | 386 | 108 |
Individually evaluated for impairment | 2 | |
Collectively evaluated for impairment | 19,644 | 20,596 |
Loans receivable | 19,644 | 20,598 |
Unallocated Financing Receivables [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 537 | |
Charge-offs | ||
Recoveries | ||
Provision | (97) | 537 |
Ending balance | 440 | 537 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | 440 | 537 |
Total | 440 | 537 |
Individually evaluated for impairment | ||
Collectively evaluated for impairment | ||
Loans receivable | ||
Total [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Beginning balance | 6,735 | 7,191 |
Charge-offs | (935) | (1,133) |
Recoveries | 302 | 305 |
Provision | 625 | 372 |
Ending balance | 6,727 | 6,735 |
Individually evaluated for impairment | 86 | 166 |
Collectively evaluated for impairment | 6,641 | 6,569 |
Total | 6,727 | 6,735 |
Individually evaluated for impairment | 2,749 | 2,833 |
Collectively evaluated for impairment | 581,864 | 590,911 |
Loans receivable | $ 584,613 | $ 593,744 |
LOANS (Details Narrative)
LOANS (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Receivables [Abstract] | ||
Commercial loans | $ 273,000 | $ 6,400 |
Deferred loan fees | 1,600 | 1,800 |
Deferred loan cost | $ 1,900 | $ 2,000 |
TROUBLED DEBT RESTRUCTURINGS (D
TROUBLED DEBT RESTRUCTURINGS (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) Integer | Dec. 31, 2021 USD ($) Integer | |
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | 1 | |
Pre-Mod. Recorded Investment | $ 35 | |
Post-Mod. Recorded Investment | $ 35 | |
Commercial Borrower [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Agriculture [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Customer Installment Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
All Other Loans [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | 1 | |
Pre-Mod. Recorded Investment | $ 35 | |
Post-Mod. Recorded Investment | $ 35 | |
Real Estate [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Real Estate [Member] | Real Estate Investment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Real Estate [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | 1 | |
Pre-Mod. Recorded Investment | $ 35 | |
Post-Mod. Recorded Investment | $ 35 | |
Real Estate [Member] | Multifamily [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment | ||
Real Estate [Member] | Farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
# of Loans | Integer | ||
Pre-Mod. Recorded Investment | ||
Post-Mod. Recorded Investment |
TROUBLED DEBT RESTRUCTURINGS _2
TROUBLED DEBT RESTRUCTURINGS (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Troubled Debt Restructurings | ||
Loans | $ 2,000 | $ 2,500 |
BANK PREMISES AND EQUIPMENT (De
BANK PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross, total | $ 37,308 | $ 37,815 |
Less accumulated depreciation | (18,018) | (17,080) |
Bank premises and equipment, net, total | 19,290 | 20,735 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross, total | 7,371 | 7,424 |
Building and Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross, total | 15,972 | 16,252 |
Furniture and Fixtures [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Bank premises and equipment, gross, total | $ 13,965 | $ 14,139 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Operating Loss Carryforwards [Line Items] | ||
Total current income tax expense (benefit) | $ 1,759 | $ (172) |
Total deferred income tax expense | 540 | 2,114 |
Income tax expense | 2,299 | 1,942 |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total current income tax expense (benefit) | 1,759 | (172) |
Total deferred income tax expense | 500 | 2,067 |
State and Local Jurisdiction [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Total current income tax expense (benefit) | ||
Total deferred income tax expense | $ 40 | $ 47 |
INCOME TAXES (Details 1)
INCOME TAXES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense (benefit) at the applicable federal rate | $ 2,180 | $ 1,879 |
Permanent differences resulting from: | ||
Nondeductible expenses | 9 | 7 |
Tax exempt interest income | 3 | 4 |
Bank owned life insurance | 29 | (7) |
Other adjustments | 84 | 67 |
Income tax expense | $ 2,299 | $ 1,942 |
INCOME TAXES (Details 2)
INCOME TAXES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deferred tax assets | ||
Allowance for loan losses | $ 1,498 | $ 1,500 |
Deferred compensation | 80 | 85 |
Nonaccrual loan interest | 543 | 532 |
Unrealized loss on securities available for sale | 3,706 | 216 |
Other real estate owned | 48 | 305 |
Amortization of core deposits | 6 | |
Amortization of goodwill | 31 | |
Capitalized interest and repair expense | 22 | 23 |
Net operating loss carryforward | 460 | |
Other | 57 | 98 |
Total assets, gross | 5,954 | 3,256 |
Deferred tax liabilities | ||
Accelerated depreciation | 896 | 1,105 |
Prepaid expenses | 17 | 27 |
Deferred loan costs | 418 | 451 |
Total liabilities, gross | 1,331 | 1,583 |
Net deferred tax asset | $ 4,623 | $ 1,673 |
TIME DEPOSITS (Details)
TIME DEPOSITS (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Time Deposits | |
2023 | $ 123,270 |
2024 | 20,683 |
2025 | 29,987 |
2026 | 8,185 |
2027 | 6,108 |
After five years | |
Total | $ 188,233 |
RELATED PARTY TRANSACTIONS (Det
RELATED PARTY TRANSACTIONS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Related Party Transactions [Abstract] | ||
Beginning balance | $ 3,419 | $ 4,187 |
New loans and advances on lines | 2,636 | 2,620 |
Payments and other reductions | (4,496) | (3,388) |
Ending balance | $ 1,559 | $ 3,419 |
OTHER REAL ESTATE OWNED (Detail
OTHER REAL ESTATE OWNED (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Real Estate [Abstract] | ||
Balance, beginning of year | $ 1,361 | $ 3,334 |
Additions | 566 | |
Transfers from premises and equipment | 950 | |
Proceeds from sales | (207) | (2,645) |
Proceeds from insurance claims | (54) | |
Loans made to finance sales | (711) | (400) |
Adjustment of carrying value | (197) | (466) |
Gains (losses) from sales | 15 | 76 |
Balance, end of year | $ 261 | $ 1,361 |
LEASING ACTIVITIES (Details)
LEASING ACTIVITIES (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 456 |
2024 | 456 |
2025 | 456 |
2026 | 456 |
2027 | 477 |
Thereafter | 2,226 |
Total lease payments | 4,527 |
Less imputed interest | 802 |
Total | $ 3,725 |
LEASING ACTIVITIES (Details Nar
LEASING ACTIVITIES (Details Narrative) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Weighted average remaining life | 9 years 7 months 6 days | |
Weighted average discount rate | $ 3.28 | |
Operating lease expenses | $ 456 | $ 528 |
BORROWED FUNDS (Details)
BORROWED FUNDS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Net Investment Income [Line Items] | ||
Balance for the year | $ 16,496 | $ 16,496 |
Average weighted balance | $ 36,866 | $ 18,970 |
Average interest rate paid during the year | 3.31% | 2.39% |
Average interest rate at year end | 6.42% | 2.46% |
Revolving Credit Facility [Member] | ||
Net Investment Income [Line Items] | ||
Balance for the year | ||
Highest balance at any month-end | ||
Average weighted balance | $ 863 | |
Average interest rate paid during the year | 1.68% | |
Federal Funds Lines [Member] | ||
Net Investment Income [Line Items] | ||
Balance for the year | ||
Highest balance at any month-end | 1,020 | |
Average weighted balance | $ 8 | |
Average interest rate paid during the year | 2.51% | |
Short-Term Debt [Member] | ||
Net Investment Income [Line Items] | ||
Balance for the year | ||
Highest balance at any month-end | 60,000 | |
Average weighted balance | $ 19,507 | $ 2,466 |
Average interest rate paid during the year | 2.48% | 1.36% |
Long-Term Debt [Member] | ||
Net Investment Income [Line Items] | ||
Balance for the year | ||
Highest balance at any month-end | 5,000 | |
Average weighted balance | ||
NPB Capital Trust I [Member] | ||
Net Investment Income [Line Items] | ||
Balance for the year | 11,341 | 11,341 |
Highest balance at any month-end | 11,341 | 11,341 |
Average weighted balance | $ 11,341 | $ 11,341 |
Average interest rate paid during the year | 4.63% | 2.81% |
Average interest rate at year end | 6.68% | 2.72% |
NPB Capital Trust 2 [Member] | ||
Net Investment Income [Line Items] | ||
Balance for the year | $ 5,155 | $ 5,155 |
Highest balance at any month-end | 5,155 | 5,155 |
Average weighted balance | $ 5,155 | $ 5,155 |
Average interest rate paid during the year | 3.79% | 1.97% |
Average interest rate at year end | 5.85% | 1.89% |
BORROWED FUNDS (Details 1)
BORROWED FUNDS (Details 1) $ in Thousands | Dec. 31, 2022 USD ($) |
Borrowed Funds | |
2023 | |
2024 | |
2025 | |
2026 | |
2027 | |
2028 and thereafter | 16,496 |
Advances from Federal Home Loan Banks | $ 16,496 |
FINANCIAL INSTRUMENTS WITH OF_3
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Commitments to Extend Credit [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 84,149 | $ 69,015 |
Standby Letters of Credit [Member] | ||
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 3,731 | $ 3,684 |
CAPITAL (Details)
CAPITAL (Details) - Bank $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Total Capital to Risk Weighted Assets, Actual, Amount | $ 93,028 | $ 85,890 |
Total Capital to Risk Weighted Assets, Actual, Ratio | 0.1650 | 0.1623 |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 45,106 | $ 42,332 |
Total Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 0.080 | 0.080 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 56,382 | $ 52,915 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.100 | 0.100 |
Tier 1 Capital Risk Weighted Assets, Actual, Amount | $ 86,301 | $ 79,274 |
Tier 1 Capital Risk Weighted Assets, Actual, Ratio | 0.1531 | 0.1498 |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 33,829 | $ 31,749 |
Tier 1 Capital Risk Weighted Assets, Minimum Capital Requirement, Ratio | 0.060 | 0.060 |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 45,106 | $ 42,332 |
Tier 1 Capital Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.080 | 0.080 |
Tier 1 Capital to Average Assets, Actual, Amount | $ 86,301 | $ 79,274 |
Tier 1 Capital to Average Assets, Actual, Ratio | 0.1040 | 0.0986 |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Amount | $ 33,206 | $ 32,145 |
Tier 1 Capital to Average Assets, Minimum Capital Requirement, Ratio | 0.040 | 0.040 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 41,508 | $ 40,181 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.050 | 0.050 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Amount | $ 86,301 | $ 79,274 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual, Ratio | 0.1531 | 0.1498 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Amount | $ 25,372 | $ 23,812 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum Capital Requirement, Ratio | 0.045 | 0.045 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Amount | $ 36,648 | $ 34,395 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions, Ratio | 0.065 | 0.065 |
CAPITAL (Details Narrative)
CAPITAL (Details Narrative) | Dec. 31, 2022 | Dec. 31, 2021 |
Capital conservation buffer | 4.50% | 2.50% |
FAIR VALUES (Details)
FAIR VALUES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Commercial Borrower [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Agriculture [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Consumer Installment Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | All Other Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | Real Estate Investment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | Residential Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | Multifamily [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Real Estate [Member] | Farmland [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | U S Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Taxable Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 96,076 | 107,358 |
Fair Value, Inputs, Level 2 [Member] | Commercial Borrower [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Agriculture [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Consumer Installment Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | All Other Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | Real Estate Investment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | Residential Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | Multifamily [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Real Estate [Member] | Farmland [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | U S Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 11,685 | 7,671 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 9,399 | 9,089 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Taxable Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 16,815 | 22,980 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 3,136 | 2,019 |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | 55,041 | 65,599 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 474 | 2,075 |
Fair Value, Inputs, Level 3 [Member] | Commercial Borrower [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 26 | |
Fair Value, Inputs, Level 3 [Member] | Agriculture [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 3 [Member] | Consumer Installment Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 3 [Member] | All Other Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Commercial Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 205 | 221 |
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Real Estate Investment [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Residential Real Estate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 8 | 287 |
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Multifamily [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | ||
Fair Value, Inputs, Level 3 [Member] | Real Estate [Member] | Farmland [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 180 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other real estate owned | 261 | 1,361 |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | U S Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | US Government Agencies Debt Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Taxable Municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Corporate Bond Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Recurring [Member] | Collateralized Mortgage-Backed Securities [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Available for sale investments |
FAIR VALUES (Details 1)
FAIR VALUES (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Impaired Loans [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 213 | $ 714 |
Valuation Technique | Appraised Value | |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
General Range of Significant Unobservable Input Parcentage | 0% | |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
General Range of Significant Unobservable Input Parcentage | 18% | |
Other Real Estate Owned [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
Fair Value | $ 261 | $ 1,361 |
Valuation Technique | Appraised Value | |
Other Real Estate Owned [Member] | Minimum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
General Range of Significant Unobservable Input Parcentage | 0% | |
Other Real Estate Owned [Member] | Maximum [Member] | ||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | ||
General Range of Significant Unobservable Input Parcentage | 18% |
FAIR VALUES (Details 2)
FAIR VALUES (Details 2) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Loans | $ 577,886 | $ 587,009 |
Time deposits | 188,233 | |
Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Loans | ||
Time deposits | ||
Borrowed funds | ||
Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Loans | 552,462 | 579,310 |
Time deposits | 187,179 | 198,353 |
Borrowed funds | 14,825 | 15,649 |
Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Loans | 213 | 714 |
Time deposits | ||
Borrowed funds | ||
Carrying Reported Amount Fairs Value Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Loans | 577,886 | 587,009 |
Time deposits | 188,233 | 196,285 |
Borrowed funds | 16,496 | 16,496 |
Estimate Of Fair Value Fair Values Disclosure [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net Loans | 552,675 | 580,024 |
Time deposits | 187,179 | 198,353 |
Borrowed funds | $ 14,825 | $ 15,649 |
FAIR VALUES (Details Narrative)
FAIR VALUES (Details Narrative) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value Disclosures [Abstract] | ||
Available for sale securities | $ 96,100 | $ 107,400 |
REVENUE FROM CONTRACTS WITH C_3
REVENUE FROM CONTRACTS WITH CUSTOMERS (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Revenue from Contract with Customer [Abstract] | ||
Service charges and fees | $ 3,969 | $ 3,724 |
Card processing and interchange income | 3,769 | 3,871 |
Insurance and investment fees | 954 | 1,029 |
Gains on sales of available-for-sale securities (1) | 322 | |
Other noninterest income | 548 | 1,034 |
Total noninterest income | $ 9,240 | $ 9,980 |
NONINTEREST EXPENSES (Details)
NONINTEREST EXPENSES (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Noninterest Expenses | ||
Advertising, sponsorships and donations | $ 162 | $ 252 |
ATM network expense | 1,471 | 1,473 |
Legal and professional fees | 1,120 | 922 |
Consulting fees | 272 | 269 |
Loan related expenses | 416 | 599 |
Printing and supplies | 160 | 133 |
FDIC insurance premiums | 217 | 266 |
Other real estate owned expenses, net | 176 | 506 |
Other operating expenses | 2,656 | 2,556 |
Total | $ 6,650 | $ 6,976 |
PARENT CORPORATION ONLY FINAN_3
PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Due from banks | $ 13,979 | $ 14,952 | |
Other assets | 4,707 | 4,706 | |
LIABILITIES | |||
Accrued interest payable | 526 | 272 | |
Accrued expenses and other liabilities | 4,685 | 2,673 | |
Total liabilities | 718,139 | 731,016 | |
SHAREHOLDERS’ EQUITY | |||
Common stock - $2.00 par value, 50,000,000 shares authorized; 23,848,491 and 23,922,086 shares issued and outstanding at December 31, 2022 and 2021, respectively | 47,697 | 47,844 | |
Retained earnings | 8,917 | 2,031 | |
Accumulated other comprehensive loss | (13,941) | (814) | |
Total shareholders’ equity | 57,219 | 63,631 | $ 58,177 |
Total liabilities and shareholders’ equity | 775,358 | 794,647 | |
Parent Company [Member] | |||
ASSETS | |||
Due from banks | 521 | 187 | |
Investment in subsidiaries | 72,360 | 78,460 | |
Other assets | 1,150 | 1,645 | |
Total assets | 74,031 | 80,292 | |
LIABILITIES | |||
Accrued interest payable | 277 | 104 | |
Accrued expenses and other liabilities | 39 | 61 | |
Trust preferred securities | 16,496 | 16,496 | |
Total liabilities | 16,812 | 16,661 | |
SHAREHOLDERS’ EQUITY | |||
Common stock - $2.00 par value, 50,000,000 shares authorized; 23,848,491 and 23,922,086 shares issued and outstanding at December 31, 2022 and 2021, respectively | 47,697 | 47,844 | |
Additional paid capital | 14,546 | 14,570 | |
Retained earnings | 8,917 | 2,031 | |
Accumulated other comprehensive loss | (13,941) | (814) | |
Total shareholders’ equity | 57,219 | 63,631 | |
Total liabilities and shareholders’ equity | $ 74,031 | $ 80,292 |
PARENT CORPORATION ONLY FINAN_4
PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Details 1) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses | ||
Professional fees | $ 272 | $ 269 |
Other operating expenses | 6,650 | 6,976 |
Total expenses | 26,519 | 27,867 |
Income tax benefit | 2,299 | 1,942 |
Net income | 8,082 | 7,010 |
Parent Company [Member] | ||
Income | ||
Miscellaneous income | 22 | 13 |
Dividends from subsidiaries | 1,749 | 430 |
Undistributed income of subsidiaries | 7,027 | 7,026 |
Total income | 8,798 | 7,469 |
Expenses | ||
Trust preferred securities interest expense | 729 | 420 |
Professional fees | 116 | 99 |
Other operating expenses | 57 | 58 |
Total expenses | 902 | 577 |
Income before income taxes | 7,896 | 6,892 |
Income tax benefit | (186) | (118) |
Net income | $ 8,082 | $ 7,010 |
PARENT CORPORATION ONLY FINAN_5
PARENT CORPORATION ONLY FINANCIAL STATEMENTS (Details 2) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash flows from operating activities | ||
Net income | $ 8,082 | $ 7,010 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Net decrease in other assets | 26 | 403 |
Net cash provided by (used in) operating activities | 13,831 | 13,800 |
Cash flows from financing activities: | ||
Net cash used in financing activities | (16,173) | 34,501 |
Cash and Cash Equivalents, Beginning of the Year | 60,946 | 92,350 |
Cash and Cash Equivalents, End of the Year | 61,686 | 60,946 |
Parent Company [Member] | ||
Cash flows from operating activities | ||
Net income | 8,082 | 7,010 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Equity in undistributed earnings of subsidiaries | (7,027) | (7,026) |
Net decrease in other assets | 495 | 24 |
Net increase in other liabilities | 151 | (36) |
Net cash provided by (used in) operating activities | 1,701 | (28) |
Cash flows from financing activities: | ||
Repurchase of common stock | (171) | |
Cash dividends paid | (1,196) | |
Net cash used in financing activities | (1,367) | |
Net increase (decrease) in cash and cash equivalents | 334 | (28) |
Cash and Cash Equivalents, Beginning of the Year | 187 | 215 |
Cash and Cash Equivalents, End of the Year | $ 521 | $ 187 |