Document And Entity Information
Document And Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | Apr. 30, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Entity Registrant Name | Village Bank & Trust Financial Corp. | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Shell Company | false | |
Entity Central Index Key | 0001290476 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | VBFC | |
Entity Common Stock, Shares Outstanding | 1,453,759 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 23,613 | $ 19,967 |
Federal funds sold | 24,365 | 0 |
Total cash and cash equivalents | 47,978 | 19,967 |
Investment securities available for sale, at fair value | 39,081 | 46,937 |
Restricted stock, at cost | 2,355 | 2,035 |
Loans held for sale, at fair value | 17,219 | 12,722 |
Loans | ||
Outstandings | 435,234 | 429,295 |
Allowance for loan losses | (3,444) | (3,186) |
Deferred fees and costs, net | 704 | 764 |
Total loans, net | 432,494 | 426,873 |
Other real estate owned, net of valuation allowance | 526 | 526 |
Assets held for sale | 514 | 514 |
Premises and equipment, net | 11,929 | 12,036 |
Bank owned life insurance | 7,657 | 7,612 |
Accrued interest receivable | 2,578 | 2,597 |
Other assets | 7,874 | 8,494 |
Total Assets | 570,205 | 540,313 |
Deposits | ||
Noninterest bearing demand | 139,660 | 131,228 |
Interest bearing | 329,183 | 311,980 |
Total deposits | 468,843 | 443,208 |
Federal Home Loan Bank advances | 36,000 | 29,000 |
Long-term debt - trust preferred securities | 8,764 | 8,764 |
Subordinated debt, net | 5,604 | 5,595 |
Other borrowings | 0 | 5,317 |
Accrued interest payable | 214 | 221 |
Other liabilities | 6,618 | 5,294 |
Total liabilities | 526,043 | 497,399 |
Shareholders' equity | ||
Common stock, $4 par value, 10,000,000 shares authorized; 1,453,759 shares issued and outstanding at March 31, 2020 and 1,453,009 shares issued and outstanding at December 31, 2019 | 5,779 | 5,779 |
Additional paid-in capital | 54,339 | 54,285 |
Accumulated deficit | (16,394) | (17,292) |
Stock in directors rabbi trust | (771) | (856) |
Directors deferred fees obligation | 771 | 856 |
Accumulated other comprehensive income | 438 | 142 |
Total shareholders' equity | 44,162 | 42,914 |
Total liabilities and shareholders' equity | $ 570,205 | $ 540,313 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Consolidated Balance Sheets | ||
Common stock, par value (in dollars per share) | $ 4 | $ 4 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 1,453,759 | 1,453,009 |
Common stock, shares outstanding (in shares) | 1,453,759 | 1,453,009 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest income | ||
Loans | $ 5,369 | $ 5,365 |
Investment securities | 270 | 293 |
Federal funds sold | 45 | 51 |
Total interest income | 5,684 | 5,709 |
Interest expense | ||
Deposits | 900 | 882 |
Borrowed funds | 357 | 361 |
Total interest expense | 1,257 | 1,243 |
Net interest income | 4,427 | 4,466 |
Provision for loan losses | 400 | 0 |
Net interest income after provision for loan losses | 4,027 | 4,466 |
Noninterest income | ||
Service charges and fees | 518 | 458 |
Mortgage banking income, net | 1,370 | 787 |
Gain on sale of investment securities | 12 | 101 |
Gain on sale of Small Business Administration loans | 86 | 92 |
Other | 74 | 80 |
Total noninterest income | 2,060 | 1,518 |
Noninterest expense | ||
Salaries and benefits | 3,022 | 2,936 |
Occupancy | 326 | 349 |
Equipment | 200 | 226 |
Supplies | 38 | 41 |
Professional and outside services | 716 | 809 |
Advertising and marketing | 78 | 58 |
Foreclosed assets, net | 0 | 1 |
FDIC insurance premium | 60 | 90 |
Other operating expense | 510 | 489 |
Total noninterest expense | 4,950 | 4,999 |
Income before income tax expense | 1,137 | 985 |
Income tax expense | 239 | 176 |
Net income | $ 898 | $ 809 |
Earnings per share, basic | $ 0.62 | $ 0.56 |
Earnings per share, diluted | $ 0.62 | $ 0.56 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Consolidated Statements of Comprehensive Income | ||
Net income | $ 898 | $ 809 |
Other comprehensive income | ||
Unrealized holding gains arising during the period | 384 | 510 |
Tax effect | (81) | (107) |
Net change in unrealized holding gains on securities available for sale, net of tax | 303 | 403 |
Reclassification adjustment | ||
Reclassification adjustment for gains realized in income | (12) | (101) |
Tax effect | 3 | 21 |
Reclassification for gains included in net income, net of tax | (9) | (80) |
Minimum pension adjustment | 3 | 3 |
Tax effect | (1) | (1) |
Minimum pension adjustment, net of tax | 2 | 2 |
Total other comprehensive income | 296 | 325 |
Total comprehensive income | $ 1,194 | $ 1,134 |
Consolidated Statements of Shar
Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Accumulated Deficit [Member] | Common Stock Warrant [Member] | Stock in Directors Rabbi Trust [Member] | Directors Deferred Fees Obligation [Member] | Accumulated Other Comprehensive Income [Member] | Total |
Balance at Dec. 31, 2018 | $ 5,707 | $ 53,212 | $ (21,769) | $ 732 | $ (883) | $ 883 | $ (749) | $ 37,133 |
Restricted stock redemption | 0 | 0 | 0 | 0 | 27 | (27) | 0 | 0 |
Vesting of restricted stock | 13 | (13) | 0 | 0 | 0 | 0 | 0 | 0 |
Stock based compensation | 0 | 46 | 0 | 0 | 0 | 0 | 0 | 46 |
Net income | 0 | 0 | 809 | 0 | 0 | 0 | 0 | 809 |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 325 | 325 |
Balance at Mar. 31, 2019 | 5,720 | 53,245 | (20,960) | 0 | (856) | 856 | (424) | 38,313 |
Balance at Dec. 31, 2019 | 5,779 | 54,285 | (17,292) | 0 | (856) | 856 | 142 | 42,914 |
Restricted stock redemption | 0 | 0 | 0 | 0 | 85 | (85) | 0 | 0 |
Vesting of restricted stock | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
Stock based compensation | 0 | 54 | 0 | 0 | 0 | 0 | 0 | 54 |
Net income | 0 | 0 | 898 | 0 | 0 | 0 | 0 | 898 |
Other comprehensive income | 0 | 0 | 0 | 0 | 0 | 0 | 296 | 296 |
Balance at Mar. 31, 2020 | $ 5,779 | $ 54,339 | $ (16,394) | $ 0 | $ (771) | $ 771 | $ 438 | $ 44,162 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Cash Flows from Operating Activities | ||
Net income | $ 898 | $ 809 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 149 | 268 |
Amortization of debt issuance costs | 9 | 8 |
Deferred income taxes | 239 | 0 |
Provision for loan losses | 400 | 177 |
(Gain) loss on sale of investment securities | (12) | (101) |
Gain on sales of loans held for sale | (2,084) | (928) |
Stock compensation expense | 54 | 46 |
Proceeds from sale of mortgage loans | 51,959 | 30,310 |
Origination of mortgage loans for sale | (54,372) | (28,472) |
Amortization of premiums and accretion of discounts on securities, net | 67 | 31 |
Increase in bank owned life insurance | (45) | (37) |
Net change in: | ||
Interest receivable | 19 | (67) |
Other assets | 307 | (1,152) |
Interest payable | (7) | 20 |
Other liabilities | 1,324 | 1,847 |
Net cash (used in) provided by operating activities | (1,095) | 2,759 |
Cash Flows from Investing Activities | ||
Purchases of available for sale securities | (1,013) | (4,632) |
Proceeds from the sale of available for sale securities | 7,936 | 6,491 |
Proceeds from maturities, calls and paydowns of available for sale securities | 1,248 | 1,038 |
Net increase in loans | (6,021) | (3,428) |
Purchases of premises and equipment, net | (42) | (184) |
Purchase of restricted stock | (320) | (34) |
Net cash provided by (used in) by investing activities | 1,788 | (749) |
Cash Flows from Financing Activities | ||
Net increase in deposits | 25,635 | 4,353 |
Net increase in Federal Home Loan Bank advances | 7,000 | 0 |
Net decrease in other borrowings | (5,317) | 0 |
Net cash provided by financing activities | 27,318 | 4,353 |
Net increase in cash and cash equivalents | 28,011 | 6,363 |
Cash and cash equivalents, beginning of period | 19,967 | 19,543 |
Cash and cash equivalents, end of period | 47,978 | 25,906 |
Supplemental Disclosure of Cash Flow Information | ||
Cash payments for interest | 1,264 | 1,223 |
Supplemental Schedule of Non-Cash Activities | ||
Unrealized gains (losses) on securities available for sale | 370 | 409 |
Right of use assets obtained in exchange for new operating lease liabilities | 0 | 1,405 |
Minimum pension adjustment | $ 3 | $ 3 |
Principles of presentation
Principles of presentation | 3 Months Ended |
Mar. 31, 2020 | |
Principles of presentation | |
Principles of presentation | Note 1 – Principles of presentation Village Bank and Trust Financial Corp. (the “Company”) is the holding company of Village Bank (the “Bank”). The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s subsidiary, Village Bank Mortgage Corporation. All material intercompany balances and transactions have been eliminated in consolidation. In the opinion of management, the accompanying condensed consolidated financial statements of the Company have been prepared on the accrual basis in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information and footnotes required by generally accepted accounting principles for complete financial statements. However, all adjustments that are, in the opinion of management, necessary for a fair presentation have been included. The results of operations for the three month period ended March 31, 2020 is not necessarily indicative of the results to be expected for the full year ending December 31, 2020. The unaudited interim financial statements should be read in conjunction with the audited financial statements and notes to financial statements that are presented in the Company’s Annual Report on Form 10-K for the year ended December 31, 2019 as filed with the Securities and Exchange Commission (“SEC”). |
Use of estimates
Use of estimates | 3 Months Ended |
Mar. 31, 2020 | |
Use of estimates | |
Use of estimates | Note 2 – Use of estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America (“GAAP”) requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the balance sheets and statements of income for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change include the determination of the allowance for loan losses and its related provision including impaired loans and troubled debt restructurings (“TDRs”), the valuation allowance on the deferred tax asset, valuation of other real estate owned (“OREO”) and the estimate of the fair value of assets held for sale. |
Earnings per common share
Earnings per common share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings per common share | |
Earnings per common share | Note 3 – Earnings per common share The following table presents the basic and diluted earnings per common share computation (in thousands, except share and per share data): Three Months Ended March 31, 2020 2019 Numerator Net income - basic and diluted $ 898 $ 809 Denominator Weighted average shares outstanding - basic 1,454 1,435 Dilutive effect of common stock options — — Weighted average shares outstanding - diluted 1,454 1,435 Earnings per share - basic $ 0.62 $ 0.56 Earnings per share - diluted $ 0.62 $ 0.56 Applicable guidance requires that outstanding, unvested share-based payment awards that contain voting rights and rights to nonforfeitable dividends participate in undistributed earnings with common shareholders. Accordingly, the weighted average number of shares of the Company’s common stock used in the calculation of basic and diluted net income per common share includes unvested shares of the Company’s outstanding restricted common stock. The vesting of 4,155 and 8,650 at March 31, 2020 and 2019, respectively, of the unvested restricted units included in Note 11 “Stock incentive plan” was dependent upon meeting certain performance criteria. As of March 31, 2020 and 2019, it was indeterminable whether these unvested restricted units would vest and as such the underlying shares were excluded from common shares issued and outstanding at such date and were not included in the computation of earnings per share for such period. Outstanding options and warrants to purchase common stock were considered in the computation of diluted earnings per share for the periods presented. Stock options for 514 and 578 shares were not included in computing diluted earnings per share for the three months ended March 31, 2020 and 2019, respectively, because their effects were anti-dilutive. Additionally, the impact of the warrant to acquire shares of the Company’s common stock in connection with the Company’s participation in the Troubled Asset Relief Program is not included for the period ended March 31, 2019, as the warrant was anti-dilutive. The warrant expired on May 1, 2019 and as such was not included in the period ended March 31, 2020. |
Investment securities available
Investment securities available for sale | 3 Months Ended |
Mar. 31, 2020 | |
Investment securities available for sale | |
Investment securities available for sale | Note 4 – Investment securities available for sale The amortized cost and fair value of investment securities available for sale as of March 31, 2020 and December 31, 2019 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2020 U.S. Government agency obligations $ 12,706 $ 154 $ (3) $ 12,857 Mortgage-backed securities 17,989 631 — 18,620 Subordinated debt 7,779 43 (218) 7,604 $ 38,474 $ 828 $ (221) $ 39,081 December 31, 2019 U.S. Government agency obligations $ 14,797 $ 57 $ (9) $ 14,845 Mortgage-backed securities 25,124 204 (26) 25,302 Subordinated debt 6,779 91 (80) 6,790 $ 46,700 $ 352 $ (115) $ 46,937 At March 31, 2020 the Company had investment securities with a fair value of approximately $6,196,000 pledged to secure borrowings from the Federal Home Loan Bank of Atlanta (“FHLB”). At December 31, 2019, the Company had no investment securities pledged to secure borrowings from the FHLB. Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the periods indicated (in thousands): Three Months Ended March 31, 2020 2019 Gross realized gains $ 39 $ 101 Gross realized losses (27) — $ 12 $ 101 The Company sold approximately $7,900,000 and $6,500,000 in 2020 and 2019, respectively, of investment securities available for sale at a net gain of $12,000 in 2020 and $101,000 in 2019. The sales of these securities, which had fixed interest rates, allowed the Company to decrease its exposure to upward movement in interest rates that would result in unrealized losses being recognized in shareholders’ equity. Investment securities available for sale that have an unrealized loss position at March 31, 2020 and December 31, 2019 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2020 U.S. Government agency obligations $ — $ — $ 1,201 $ (3) $ 1,201 $ (3) Subordinated debt 4,344 (136) 418 (82) 4,762 (218) $ 4,344 $ (136) $ 1,619 $ (85) $ 5,963 $ (221) December 31, 2019 U.S. Government agency obligations $ 2,001 $ (1) $ 5,368 $ (8) $ 7,369 $ (9) Mortgage-backed securities 2,747 (26) — — 2,747 (26) Subordinated debt 759 (6) (74) 1,699 (80) $ 5,507 $ (33) $ $ (82) $ 11,815 $ (115) As of March 31, 2020, there were $1.6 million, or six issues, of individual available for sale securities that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $85,000 and consisted of U.S. Government agency obligations, and subordinated debt. All of the unrealized losses are attributable to movements in interest rates and not to credit deterioration. Currently, the Company believes that it is probable that the Company will be able to collect all amounts due according to the contractual terms of the investments. Because the decline in fair value is attributable to changes in interest rates and not to credit quality, and because it is not more likely than not that the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other than temporarily impaired at March 31, 2020. The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2020, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 6,208 $ 6,257 One to five years 4,489 4,557 Five to ten years 10,114 9,989 More than ten years 17,663 18,278 Total $ 38,474 $ 39,081 |
Loans and allowance for loan lo
Loans and allowance for loan losses | 3 Months Ended |
Mar. 31, 2020 | |
Loans and allowance for loan losses | |
Loans and allowance for loan losses | Note 5 – Loans and allowance for loan losses Loans classified by type as of March 31, 2020 and December 31, 2019 are as follows (dollars in thousands): March 31, 2020 December 31, 2019 Amount % Amount % Construction and land development Residential $ 8,143 1.87 % $ 7,887 1.84 % Commercial 24,027 5.52 % 24,063 5.60 % 32,170 7.39 % 31,950 7.44 % Commercial real estate Owner occupied 103,210 23.71 % 98,353 22.91 % Non-owner occupied 115,278 26.49 % 116,508 27.14 % Multifamily 14,046 3.23 % 13,332 3.10 % Farmland 150 0.03 % 156 0.04 % 232,684 53.46 % 228,349 53.19 % Consumer real estate Home equity lines 20,590 4.73 % 21,509 5.01 % Secured by 1-4 family residential, First deed of trust 57,352 13.18 % 55,856 13.01 % Second deed of trust 11,348 2.61 % 10,411 2.43 % 89,290 20.52 % 87,776 20.45 % Commercial and industrial loans (except those secured by real estate) 45,838 10.53 % 45,074 10.50 % Guaranteed student loans 32,251 7.41 % 33,525 7.81 % Consumer and other 3,001 0.69 % 2,621 0.60 % Total loans 435,234 100.0 % 429,295 100.0 % Deferred fees and costs, net 704 764 Less: allowance for loan losses (3,444) (3,186) $ 432,494 $ 426,873 The Bank has a purchased portfolio of rehabilitated student loans guaranteed by the Department of Education (“DOE”). The guarantee covers approximately 98% of principal and accrued interest. The loans are serviced by a third-party servicer that specializes in handling the special needs of the DOE student loan programs. Loans pledged as collateral with the FHLB as part of their lending arrangement with the Company totaled $49,013,000 and $49,736,000 as of March 31, 2020 and December 31, 2019, respectively. Loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Loans are placed on nonaccrual status when, in management’s opinion, the borrower may be unable to meet payment obligations as they become due, as well as when required by regulatory provisions. Loans may be placed on nonaccrual status regardless of whether or not such loans are considered past due as long as the remaining recorded investment in the loan is deemed fully collectible. When interest accrual is discontinued, all unpaid accrued interest is reversed. Interest income is subsequently recognized only to the extent cash payments are received in excess of principal due. Loans are returned to accrual status when all principal and interest amounts contractually due are brought current and future payments are reasonably assured. The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): March 31, December 31, 2020 2019 Commercial real estate Owner occupied $ — $ 497 — 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 745 842 Second deed of trust 62 63 1,107 1,205 Commercial and industrial loans (except those secured by real estate) 210 166 Total loans $ 1,317 $ 1,868 The Company assigns risk rating classifications to its loans. These risk ratings are divided into the following groups: · Risk rated 1 to 4 loans are considered of sufficient quality to preclude an adverse rating. These assets generally are well protected by the current net worth and paying capacity of the obligor or by the value of the asset or underlying collateral; · Risk rated 5 loans are defined as having potential weaknesses that deserve management’s close attention; · Risk rated 6 loans are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any; and · Risk rated 7 loans have all the weaknesses inherent in substandard loans, with the added characteristics that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans March 31, 2020 Construction and land development Residential $ 7,825 $ 318 $ — $ — $ 8,143 Commercial 23,542 185 300 — 24,027 31,367 503 300 — 32,170 Commercial real estate Owner occupied 92,362 8,759 2,089 — 103,210 Non-owner occupied 114,560 226 492 — 115,278 Multifamily 13,903 143 — — 14,046 Farmland 150 — — — 150 220,975 9,128 2,581 — 232,684 Consumer real estate Home equity lines 19,585 705 300 — 20,590 Secured by 1-4 family residential First deed of trust 54,634 1,594 1,124 — 57,352 Second deed of trust 11,136 13 199 — 11,348 85,355 2,312 1,623 — 89,290 Commercial and industrial loans (except those secured by real estate) 44,026 1,301 511 — 45,838 Guaranteed student loans 32,251 — — — 32,251 Consumer and other 2,954 47 — — 3,001 Total loans $ 416,928 $ 13,291 $ 5,015 $ — $ 435,234 Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans December 31, 2019 Construction and land development Residential $ 7,887 $ — $ — $ — $ 7,887 Commercial 23,758 — 305 — 24,063 31,645 — 305 — 31,950 Commercial real estate Owner occupied 90,146 8,072 135 — 98,353 Non-owner occupied 115,781 230 497 — 116,508 Multifamily 13,186 146 — — 13,332 Farmland 71 85 — — 156 219,184 8,533 632 — 228,349 Consumer real estate Home equity lines 20,486 723 300 — 21,509 Secured by 1-4 family residential First deed of trust 53,200 1,660 996 — 55,856 Second deed of trust 10,130 167 114 — 10,411 83,816 2,550 1,410 — 87,776 Commercial and industrial loans (except those secured by real estate) 41,837 2,891 346 — 45,074 Guaranteed student loans 33,525 — — — 33,525 Consumer and other 2,621 — — — 2,621 Total loans $ 412,628 $ 13,974 $ 2,693 $ — $ 429,295 The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing March 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,143 $ 8,143 $ — Commercial — — — — 24,027 24,027 — — — — — 32,170 32,170 — Commercial real estate Owner occupied 758 — — 758 102,452 103,210 — Non-owner occupied — — — — 115,278 115,278 — Multifamily — — — — 14,046 14,046 — Farmland — — — — 150 150 — 758 — — 758 231,926 232,684 — Consumer real estate Home equity lines 120 — — 120 20,470 20,590 — Secured by 1-4 family residential First deed of trust 227 217 — 444 56,908 57,352 — Second deed of trust 49 — — 49 11,299 11,348 — 396 217 — 613 88,677 89,290 — Commercial and industrial loans (except those secured by real estate) 417 427 — 844 44,994 45,838 — Guaranteed student loans 1,929 652 2,765 5,346 26,905 32,251 2,765 Consumer and other — 4 — 4 2,997 3,001 — Total loans $ 3,500 $ 1,300 $ 2,765 $ 7,565 $ 427,669 $ 435,234 $ 2,765 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2019 Construction and land development Residential $ — $ — $ — $ — $ 7,887 $ 7,887 $ — Commercial — — — — 24,063 24,063 — — — — — 31,950 31,950 — Commercial real estate Owner occupied 701 — — 701 97,652 98,353 — Non-owner occupied — — — — 116,508 116,508 — Multifamily — — — — 13,332 13,332 — Farmland — — — — 156 156 — 701 — — 701 227,648 228,349 — Consumer real estate Home equity lines 52 — — 52 21,457 21,509 — Secured by 1-4 family residential First deed of trust 290 — — 290 55,566 55,856 — Second deed of trust 133 — — 133 10,278 10,411 — 475 — — 475 87,301 87,776 — Commercial and industrial loans (except those secured by real estate) 773 — — 773 44,301 45,074 — Guaranteed student loans 1,694 1,309 2,567 5,570 27,955 33,525 2,567 Consumer and other 4 — — 4 2,617 2,621 — Total loans $ 3,647 $ 1,309 $ 2,567 $ 7,523 $ 421,772 $ 429,295 $ 2,567 Loans greater than 90 days past due are student loans that are guaranteed by the DOE which covers approximately 98% of the principal and interest. Accordingly, these loans will not be placed on nonaccrual status and are not considered to be impaired. Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts when due in accordance with the original contractual terms of the loan agreement, including scheduled principal and interest payments. Loans evaluated individually for impairment include non-performing loans, such as loans on non-accrual, loans past due by 90 days or more, restructured loans and other loans selected by management. The evaluations are based upon discounted expected cash flows or collateral valuations. If the evaluation shows that a loan is individually impaired, then a specific reserve is established for the amount of impairment. Impairment is evaluated in total for smaller-balance loans of a similar nature and on an individual loan basis for other loans. If a loan is impaired, a specific valuation allowance is allocated, if necessary, so that the loan is reported net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected solely from the collateral. Interest payments on impaired loans are typically applied to principal unless collectability of the principal amount is reasonably assured, in which case interest is recognized on a cash basis. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are set forth in the following table as of the dates indicated (in thousands): March 31, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial $ 300 $ 300 $ — $ 337 $ 337 $ — 300 300 — 337 337 — Commercial real estate Owner occupied 2,582 2,597 — 2,089 2,104 — Non-owner occupied 2,128 2,128 — 2,304 2,304 — 4,710 4,725 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential First deed of trust 2,128 2,128 — 1,752 1,774 — Second deed of trust 904 1,112 — 752 960 — 3,332 3,540 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 161 161 — 211 373 — 8,503 8,726 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,403 1,403 13 1,414 1,414 15 1,403 1,403 13 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 77 77 9 78 78 9 77 77 9 78 78 9 Commercial and industrial loans (except those secured by real estate) 180 342 48 135 334 135 1,660 1,822 70 1,627 1,826 159 Total Construction and land development Commercial 300 300 — 337 337 — 300 300 — 337 337 — Commercial real estate Owner occupied 3,985 4,000 13 3,503 3,518 15 Non-owner occupied 2,128 2,128 — 2,304 2,304 — 6,113 6,128 13 5,807 5,822 15 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 2,205 2,205 9 1,830 1,852 9 Second deed of trust 904 1,112 — 752 960 — 3,409 3,617 9 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 341 503 48 346 707 135 $ 10,163 $ 10,548 $ 70 $ 9,372 $ 9,978 $ 159 The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months Ended March 31, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Residential $ — $ — $ 267 $ — Commercial 315 — 475 — 315 — 742 — Commercial real estate Owner occupied 2,696 29 3,460 42 Non-owner occupied 2,324 32 2,597 23 5,020 61 6,057 65 Consumer real estate Home equity lines 363 4 550 — Secured by 1-4 family residential First deed of trust 2,072 19 2,972 42 Second deed of trust 740 14 704 13 3,175 37 4,226 55 Commercial and industrial loans (except those secured by real estate) 646 — 477 8 Consumer and other 1 — 1 — 9,157 98 11,503 128 With an allowance recorded Construction and land development Commercial — 26 — Commercial real estate Owner occupied 1,420 15 1,461 15 1,420 15 1,461 15 Consumer real estate Secured by 1-4 family residential First deed of trust 136 1 262 3 Second deed of trust 78 — 162 2 214 1 424 5 Commercial and industrial loans (except those secured by real estate) 162 6 176 — Consumer and other 4 — 14 — 1,800 22 2,101 20 Total Construction and land development Residential $ — $ — $ 267 $ — Commercial 315 — 501 — 315 — 768 — Commercial real estate Owner occupied 4,116 44 4,921 57 Non-owner occupied 2,324 32 2,597 23 6,440 76 7,518 80 Consumer real estate Home equity lines 363 4 550 — Secured by 1-4 family residential, First deed of trust 2,208 20 3,234 45 Second deed of trust 818 14 866 15 3,389 38 4,650 60 Commercial and industrial loans (except those secured by real estate) 808 6 653 8 Consumer and other 5 — 15 — $ 10,957 $ 120 $ 13,604 $ 148 Included in impaired loans are loans classified as TDRs. A modification of a loan’s terms constitutes a TDR if the creditor grants a concession to the borrower for economic or legal reasons related to the borrower’s financial difficulties that it would not otherwise consider. For loans classified as impaired TDRs, the Company further evaluates the loans as performing or nonaccrual. To restore a nonaccrual loan that has been formally restructured in a TDR to accrual status, we perform a current, well documented credit analysis supporting a return to accrual status based on the borrower’s financial condition and prospects for repayment under the revised terms. Otherwise, the TDR must remain in nonaccrual status. The analysis considers the borrower’s sustained historical repayment performance for a reasonable period to the return-to-accrual date, but may take into account payments made for a reasonable period prior to the restructuring if the payments are consistent with the modified terms. A sustained period of repayment performance generally would be a minimum of six months and would involve payments in the form of cash or cash equivalents. An accruing loan that is modified in a TDR can remain in accrual status if, based on a current well-documented credit analysis, collection of principal and interest in accordance with the modified terms is reasonably assured, and the borrower has demonstrated sustained historical repayment performance for a reasonable period before modification. The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance March 31, 2020 Commercial real estate Owner occupied $ 3,462 $ 3,462 $ — $ 13 Non-owner occupied 2,128 2,128 — — 5,590 5,590 — 13 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,630 1,128 502 9 Second deeds of trust 816 754 62 — 2,446 1,882 564 9 Commercial and industrial loans (except those secured by real estate) 210 — 210 48 $ 8,246 $ 7,472 $ 774 $ 70 Number of loans 37 28 9 4 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2019 Commercial real estate Owner occupied $ 3,502 $ 3,502 $ — $ 15 Non-owner occupied 2,304 1,807 497 — 5,806 5,309 497 15 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,641 881 760 9 Second deeds of trust 752 689 63 — 2,393 1,570 823 9 Commercial and industrial loans (except those secured by real estate) 211 180 31 — $ 8,410 $ 7,059 $ 1,351 $ 24 Number of loans 38 29 9 3 The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Non-owner occupied — $ — $ — 1 $ 515 $ 515 — $ — $ — 1 $ 515 $ 515 There were no defaults on TDRs that were modified as TDRs during the prior twelve month period ended March 31, 2020 and 2019. Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2020 Construction and land development Residential $ 48 $ 170 $ — $ 1 $ 219 Commercial 137 133 — — 270 185 303 — 1 489 Commercial real estate Owner occupied 671 188 — — 859 Non-owner occupied 831 227 — — 1,058 Multifamily 85 (17) — — 68 Farmland 2 (1) — — 1 1,589 397 — — 1,986 Consumer real estate Home equity lines 271 (231) — — 40 Secured by 1-4 family residential First deed of trust 343 (189) — 3 157 Second deed of trust 64 8 — 4 76 678 (412) — 7 273 Commercial and industrial loans (except those secured by real estate) 572 (31) (135) 3 409 Student loans 108 16 (20) — 104 Consumer and other 30 9 (1) 3 41 Unallocated 24 118 — — 142 $ 3,186 $ 400 $ (156) $ 14 $ 3,444 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2019 Construction and land development Residential $ 42 $ 3 $ — $ 1 $ 46 Commercial 220 (48) — 1 173 262 (45) — 2 219 Commercial real estate Owner occupied 673 37 — — 710 Non-owner occupied 673 19 — — 692 Multifamily 87 1 — — 88 Farmland 2 — — — 2 1,435 57 — — 1,492 Consumer real estate Home equity lines 244 (10) — 6 240 Secured by 1-4 family residential First deed of trust 385 8 — 2 395 Second deed of trust 51 2 — 4 57 680 — — 12 692 Commercial and industrial loans (except those secured by real estate) 308 48 (15) 11 352 Student loans 121 33 (33) — 121 Consumer and other 34 (3) (2) 1 30 Unallocated 211 (90) — — 121 $ 3,051 $ — $ (50) $ 26 $ 3,027 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2019 Construction and land development Residential $ 42 $ (1) $ — $ 7 $ 48 Commercial 220 (85) — 2 137 262 (86) — 9 185 Commercial real estate Owner occupied 673 (2) — — 671 Non-owner occupied 673 158 — — 831 Multifamily 87 (2) — — 85 Farmland 2 — — — 2 1,435 154 — — 1,589 Consumer real estate Home equity lines 244 50 (35) 12 271 Secured by 1-4 family residential First deed of trust 385 (56) — 14 343 Second deed of trust 51 (56) — 69 64 680 (62) (35) 95 678 Commercial and industrial loans (except those secured by real estate) 308 239 (64) 89 572 Student loans 121 80 (93) — 108 Consumer and other 34 (3) (26) 25 30 Unallocated 211 (187) — — 24 $ 3,051 $ 135 $ (218) $ 218 $ 3,186 The amount of the loan loss provision (recovery) is determined by an evaluation of the level of loans outstanding, the level of nonperforming loans, historical loan loss experience, delinquency trends, underlying collateral values, the amount of actual losses charged to the reserve in a given period and assessment of present and anticipated economic conditions. The level of the allowance reflects changes in the size of the portfolio or in any of its components as well as management’s continuing evaluation of industry concentrations, specific credit risk, loan loss experience, current loan portfolio quality, and present economic, political and regulatory conditions. Portions of the allowance may be allocated for specific credits; however, the entire allowance is available for any credit that, in management’s judgement, should be charged off. While management utilizes its best judgement and information available, the ultimate adequacy of the allowance is dependent upon a variety of factors beyond the Company’s control, including the performance of the Company’s loan portfolio, the economy, changes in interest rates and the view of the regulatory authorities toward loan classifications. The Company recorded a provision for loan losses of $400,000 for the three month period ended March 31, 2020 as a result of growth in the loan portfolio, an increase in the historical loan loss experience and an increase in the qualitative factors due to the anticipated economic impact of COVID-19. The Company recorded a provision for loan losses of $135,000 for the year ended December 31, 2019 because of an increase in the specific reserves associated with a relationship evaluated individually for impairment. The Company did not record a provision for loan losses for the three month period ended March 31, 2019 because of minimal net charge-offs, no significant changes in qualitative factors and stable asset quality. The allowance for loan losses at each of the periods presented includes an amount that could not be identified to individual types of loans referred to as the unallocated portion of the allowance. We recognize the inherent imprecision in estimates of losses due to various uncertainties and the variability related to the factors used in calculation of the allowance. The allowance for loan losses included an unallocated portion of approximately $142,000, $24,000, and $121,000 at March 31, 2020, December 31, 2019, and March 31, 2019, respectively. Loans were evaluated for impairment as follows for the periods indicated (in thousands): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Three Months Ended March 31, 2020 Construction and land development Residential $ 219 $ — $ 219 $ 8,143 $ — $ 8,143 Commercial 270 — 270 24,027 300 23,727 489 — 489 32,170 300 31,870 Commercial real estate Owner occupied 859 13 846 103,210 3,985 99,225 Non-owner occupied 1,058 — 1,058 115,278 2,128 113,150 Multifamily 68 — 68 14,046 — 14,046 Farmland 1 — 1 150 — 150 1,986 13 1,973 232,684 6,113 226,571 Consumer real estate Home equity lines 40 — 40 20,590 300 20,290 Secured by 1-4 family residential First deed of trust 157 9 148 57,352 2,205 55,147 Second deed of trust 76 — 76 11,348 904 10,444 273 9 264 89,290 3,409 85,881 Commercial and industrial loans (except those secured by real estate) 409 48 361 45,838 341 45,497 Student loans 104 — 104 32,251 — 32,251 Consumer and other 183 — 183 3,001 — 3,001 $ 3,444 $ 70 $ 3,374 $ 435,234 $ 10,163 $ 425,071 Year Ended December 31, 2019 Construction and land development Residential $ 48 $ — $ 48 $ 7,887 $ — $ 7,887 Commercial 137 — 137 24,063 337 23,726 185 — 185 31,950 337 31,613 Commercial real estate Owner occupied 671 15 656 98,353 3,503 94,850 Non-owner occupied 831 — 831 116,508 2,304 114,204 Multifamily 85 — 85 13,332 — 13,332 Farmland 2 — 2 156 — 156 1,589 15 1,574 228,349 5,807 222,542 Consumer real estate Home equity lines 271 — 271 21,509 300 21,209 Secured by 1-4 family residential First deed of trust 343 9 334 55,856 1,830 54,026 Second deed of trust 64 — 64 10,411 752 9,659 678 9 669 87,776 2,882 84,894 Commercial and industrial loans (except those secured by real estate) 572 135 437 45,074 346 44,728 Student loans 108 — 108 33,525 — 33,525 Consumer and other 54 — 54 2,621 — 2,621 $ 3,186 $ 159 $ 3,027 $ 429,295 $ 9,372 $ 419,923 |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2020 | |
Deposits | |
Deposits | Note 6 – Deposits Deposits as of March 31, 2020 and December 31, 2019 were as follows (dollars in thousands): March 31, 2020 December 31, 2019 Amount % Amount % Checking accounts Noninterest bearing demand 139,660 29.8 % $ 131,228 29.6 % Interest bearing 51,008 10.9 % 48,428 10.9 % Money market accounts 114,461 24.4 % 99,955 22.6 % Savings accounts 26,618 5.7 % 26,396 6.0 % Time deposits of $250,000 and over 24,535 5.2 % 22,327 5.0 % Other time deposits 112,561 24.0 % 114,874 25.9 % Total $ 468,843 100.0 % $ 443,208 100.0 % |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2020 | |
Borrowings | |
Borrowings | Note 7 – Borrowings The Company uses both short-term and long-term borrowings to supplement deposits when they are available at a lower overall cost to the Company or they can be invested at a positive rate of return. As a member of the Federal Home Loan Bank of Atlanta, the Bank is required to own capital stock in the FHLB and is authorized to apply for advances from the FHLB. The Company held $2,014,000 in FHLB stock at March 31, 2020 and $1,694,000 at December 31, 2019, which is held at cost. Each FHLB credit program has its own interest rate, which may be fixed or variable, and range of maturities. The FHLB may prescribe the acceptable uses to which the advances may be put, as well as on the size of the advances and repayment provisions. The FHLB borrowings are secured by the pledge of commercial, 1‑4 family residential loans and investment securities. The Company had FHLB advances of $36,000,000 and $29,000,000 at March 31, 2020 and December 31, 2019, respectively, maturing through 2023. The Company uses federal funds purchased and repurchase agreements for short-term borrowing needs. Securities sold under agreements to repurchase are classified as borrowings and generally mature within one to four days from the transaction date. Securities sold under agreements to repurchase are reflected at the amount of cash received in connection with the transaction. The Company may be required to provide additional collateral based on the fair value of the underlying securities. The carrying value of these short term borrowing agreements was $5,317,000 at December 31, 2019. There were no borrowings against the lines at March 31, 2020. The Company’s unused lines of credit for future borrowings total approximately $49 million at March 31, 2020, which consists of $6.2 million available from the FHLB, $10 million on revolving bank line of credit, $7.8 million under secured federal funds agreements with third party financial institutions, and $25 million in repurchase lines of credit with third party financial institutions. Additional loans and securities are available that can be pledged as collateral for future borrowings from the Federal Reserve Bank of Richmond or the FHLB above the current lendable collateral value. |
Leases
Leases | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Leases | Note 8 - Leases The following tables present information about the Company's leases (dollars in thousands): March 31, 2020 Lease liabilities $ 928 Right-of-use assets $ 915 Weighted average remaining lease term years Weighted average discount rate 2.98 % For the Three Months Ended March 31, 2020 Lease cost Operating lease cost $ 107 Total lease cost $ 107 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): As of March 31, 2020 Lease payments due Nine months ending December 31, 2020 310 Twelve months ending December 31, 2021 277 Twelve months ending December 31, 2022 120 Twelve months ending December 31, 2023 44 Twelve months ending December 31, 2024 48 Thereafter 203 Total undiscounted cash flows $ 1,002 Discount 74 Lease liabilities $ 928 Cash paid for amounts included in the measurement of lease liabilities during the three months ended March 31, 2020 and 2019 was $106,000 and $103,000, respectively. The Company recognized lease expense of $107,000 and $103,000 for the three month period ended March 31, 2020 and 2019, respectively. |
Trust preferred securities
Trust preferred securities | 3 Months Ended |
Mar. 31, 2020 | |
Trust preferred securities | |
Trust preferred securities | Note 9 – Trust preferred securities During the first quarter of 2005, Southern Community Financial Capital Trust I, a wholly-owned unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On February 24, 2005, $5.2 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have a LIBOR-indexed floating rate of interest (three-month LIBOR plus 2.15)% which adjusts, and is payable, quarterly. The interest rate at March 31, 2020 was 3.25%. The securities were redeemable at par beginning on March 15, 2010 and each quarter after such date until the securities mature on March 15, 2035. No amounts have been redeemed at March 31, 2020 and there are no plans to do so. The principal asset of the Trust is $5.2 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. During the third quarter of 2007, Village Financial Statutory Trust II, a wholly-owned unconsolidated subsidiary of the Company, was formed for the purpose of issuing redeemable securities. On September 20, 2007, $3.6 million of Trust Preferred Capital Notes were issued through a pooled underwriting. The securities have LIBOR-indexed floating rate of interest (three-month LIBOR plus 1.4)% which adjusts, and is also payable, quarterly. The interest rate at March 31, 2020 was 2.50%. The securities may be redeemed at par at any time commencing in December 2012 until the securities mature in 2037. No amounts have been redeemed at March 31, 2020 and there are no plans to do so. The principal asset of the Trust is $3.6 million of the Company’s junior subordinated debt securities with like maturities and like interest rates to the Trust Preferred Capital Notes. The Trust Preferred Capital Notes may be included in Tier 1 capital for regulatory capital adequacy determination purposes up to 25% of Tier 1 capital after its inclusion. The portion of the Trust Preferred Capital Notes not considered as Tier 1 capital may be included in Tier 2 capital. The obligations of the Company with respect to the issuance of the Trust Preferred Capital Notes constitute a full and unconditional guarantee by the Company of the Trust’s obligations with respect to the Trust Preferred Capital Notes. Subject to certain exceptions and limitations, the Company may elect from time to time to defer interest payments on the junior subordinated debt securities, which would result in a deferral of distribution payments on the related Trust Preferred Capital Notes and require a deferral of common dividends. The Company is current on these interest payments. |
Subordinated Debt
Subordinated Debt | 3 Months Ended |
Mar. 31, 2020 | |
Subordinated Debt | |
Subordinated Debt | Note 10 – Subordinated Debt On March 21, 2018, the Company issued $5,700,000 of fixed-to-floating rate subordinated notes due March 31, 2028 in a private placement. The Company received $5,539,000 in net proceeds after deducting issuance costs. The subordinated notes accrue interest at a fixed rate of 6.50% for the first five years until March 31, 2023; thereafter, the subordinated notes will accrue interest at an annual floating rate equal to three-month LIBOR plus a spread of 3.73% until maturity or early redemption. The Company may redeem the subordinated notes in whole or in part, on or after March 31, 2023. The subordinated notes are unsecured and subordinated in right of payment to all of the Company’s existing and future senior indebtedness, whether secured or unsecured, including claims of depositors and general creditors, and rank equally in right of payment with any unsecured, subordinated indebtedness that the Company may incur in the future. The carrying value of the notes totaled $5,604,000 and $5,595,000 at March 31, 2020 and December 31, 2019, respectively. |
Stock incentive plan
Stock incentive plan | 3 Months Ended |
Mar. 31, 2020 | |
Stock incentive plan | |
Stock incentive plan | Note 11 – Stock incentive plan In accordance with accounting standards, the Company measures the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award (with limited exceptions). That cost is recognized over the period during which an employee is required to provide service in exchange for the award rather than disclosed in the financial statements. The following table summarizes options outstanding under the Company's stock incentive plans at the indicated dates: Three Months Ended March 31, 2020 2019 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Options Price Per Share Value Options outstanding, beginning of period 734 $ 25.63 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — — — — — Options outstanding, end of period 734 $ 25.63 $ 9.76 $ — 734 $ 25.63 $ 9.76 $ — Options exercisable, end of period 734 734 During the first quarter of 2020, we granted certain officers 750 time-based restricted shares of common stock with a weighted average fair market value of $42.99 per share on the date of grant. These restricted stock awards vest ratably over a three-year period provided the officer is employed with the Company on the applicable vesting date. The total number of shares underlying non-vested restricted stock was 13,060 and 17,646 at March 31, 2020 and 2019, respectively. The fair value of the stock is based on the grant date of the award and the expense is recognized over the vesting period. Unamortized stock-based compensation related to non-vested share-based compensation arrangements granted under the stock incentive plan as of March 31, 2020 and 2019 was $346,946 and $354,185, respectively. As of March 31, 2020, the time based unrecognized compensation expense of $237,471 is expected to be recognized over a weighted average period of 2.32 years. There were no forfeitures for the period ended March 31, 2020. For the period ended March 31, 2019 there were forfeitures of 2,763 shares of restricted stock awards. A summary of changes in the Company’s non-vested restricted stock awards for the three months ended March 31, 2020 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2019 12,310 $ 33.83 $ 311,197 Granted 750 42.99 18,960 Vested — — — Forefited — — — Other — — — March 31, 2020 13,060 $ 34.36 $ 330,157 Stock-based compensation expense was approximately $54,000 and $46,000 for the three months ended March 31, 2020 and 2019, respectively. |
Fair value
Fair value | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value | |
Fair Value | Note 12 – Fair value The Company determines the fair value of its financial instruments based on the requirements established in ASC 820: Fair Value Measurements, which provides a framework for measuring fair value under GAAP and requires an entity to maximize the use of observable inputs when measuring fair value. ASC 820 defines fair value as the exit price, the price that would be received for an asset or paid to transfer a liability, in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date under current market conditions. ASC 820 establishes a hierarchy for valuation inputs that gives the highest priority to quoted prices in active markets for identical assets or liabilities and the lowest priority to unobservable inputs. The fair values hierarchy is as follows: Level 1 Inputs — Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. Level 2 Inputs — Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 Inputs — Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. The Company used the following methods to determine the fair value of each type of financial instrument: Securities : Fair values for securities available-for-sale are obtained from an independent pricing service. The prices are not adjusted. The independent pricing service uses industry-standard models to price U.S. Government agency obligations and mortgage backed securities that consider various assumptions, including time value, yield curves, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Securities of obligations of state and political subdivisions are valued using a type of matrix, or grid, pricing in which securities are benchmarked against the treasury rate based on credit rating. Substantially all assumptions used by the independent pricing service are observable in the marketplace, can be derived from observable data, or are supported by observable levels at which transactions are executed in the marketplace (Levels 1 and 2). If the inputs used to provide the evaluation for certain securities are unobservable and/or there is little, if any, market activity, then the security would fall to the lowest level of the hierarchy (Level 3). Impaired loans : The fair values of impaired loans are measured for impairment using the fair value of the collateral for collateral-dependent loans on a nonrecurring basis. Collateral may be in the form of real estate or business assets including equipment, inventory and accounts receivable. The vast majority of the Company’s collateral is real estate. The value of real estate collateral is determined utilizing an income or market valuation approach based on an appraisal conducted by an independent, licensed appraiser using observable market data (Level 2). However, if the collateral is a house or building in the process of construction or if an appraisal of the property is more than two years old, then a Level 3 valuation is considered to measure the fair value. The value of business equipment is based upon an outside appraisal if deemed significant using observable market data. Likewise, values for inventory and account receivables collateral are based on financial statement balances or aging reports (Level 3). Any fair value adjustments are recorded in the period incurred as provision for loan losses on the Consolidated Statements of Income. Loans held for sale: During the first quarter of 2020, the Company elected to begin using fair value accounting for its entire portfolio of loans held for sale in accordance with ASC 820 - Fair Value Measurement and Disclosures. Fair value of the Company's loans held for sale is based on observable market prices for similar instruments traded in the secondary mortgage loan markets in which the Company conducts business. The Company's portfolio of loans held for sale is classified as Level 2. At December 31, 2019, these loans were carried at the lower of cost or estimated fair value on an aggregate basis as determined by outstanding commitments from investors. Gains and losses on the sale of loans are recorded within mortgage banking income, net on the Consolidated Statements of Income. Derivative asset – IRLCs: Beginning with the first quarter of 2020, the Company recognizes IRLCs at fair value based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis while taking into consideration the probability that the rate lock commitments will close. All of the Company's IRLCs are classified as Level 2. The fair value of interest rate lock commitments was considered immaterial at December 31, 2019. Derivative asset/liability – forward sale commitments: During the first quarter of 2020, the Company elected to begin using fair value accounting for its forward sales commitments related to IRLCs and LHFS. Best efforts sale commitments are entered into for loans intended for sale in the secondary market at the time the borrower commitment is made. The best efforts commitments are valued using the committed price to the counter-party against the current market price of the interest rate lock commitment or mortgage loan held for sale. All of the Company’s forward sale commitments are classified as Level 2. Other Real Estate Owned : OREO assets are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. Subsequently, OREO assets are carried at lower of cost or fair value less estimated costs to sell. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the foreclosed asset as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the foreclosed asset as nonrecurring Level 3. Assets held for sale : Assets held for sale were transferred from premises and equipment at the lower of cost less accumulated depreciation or fair value at the date of transfer. The Company periodically evaluates the value of assets held for sale and records an impairment charge for any subsequent declines in fair value less selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price or a current appraised value, the Company records the assets held for sale as nonrecurring Level 2. When an appraised value is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the asset held for sale as nonrecurring Level 3. Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands): Fair Value Measurement at March 31, 2020 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 12,857 $ — $ 12,857 $ — Mortgage-backed securities 18,620 — 18,620 — Subordinated debt 7,604 500 7,104 — Loans held for sale 17,219 — 17,219 — IRLC 728 — 728 — Financial Liabilities-Recurring Forward Sales Commitment 1,188 — 1,188 — Financial Assets - Non-Recurring Impaired loans 1,590 — — 1,590 Assets held for sale 514 — — 514 Other real estate owned 526 — — 526 Fair Value Measurement at December 31, 2019 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 14,845 $ — $ 14,845 $ — Mortgage-backed securities 25,302 — 25,302 — Subordinated debt 6,790 — 6,540 250 Financial Assets - Non-Recurring Impaired loans 1,468 — — 1,468 Assets held for sale 514 — — 514 Other real estate owned 526 — — 526 The following table presents qualitative information about Level 3 fair value measurements for financial instruments measured at fair value at March 31, 2020 and December 31, 2019 (dollars in thousands): March 31, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,590 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (10%) Assets held for sale $ 514 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (15%) Other real estate owned $ 526 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances December 31, 2019 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,468 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (10%) Assets held for sale $ 514 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (15%) Other real estate owned $ 526 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances FASB ASC 825, Financial Instruments, requires disclosure about fair value of financial instruments, including those financial assets and financial liabilities that are not required to be measured and reported at fair value on a recurring or nonrecurring basis. ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. In accordance with ASU 2016-01, the Company uses the exit price notion, rather than the entry price notion, in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. March 31, December 31, 2020 2019 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value (In thousands) Financial assets Cash Level 1 $ 23,613 $ 23,613 $ 19,967 $ 19,967 Cash equivalents Level 2 24,365 24,365 — — Investment securities available for sale Level 1 500 500 — — Investment securities available for sale Level 2 38,581 38,581 46,687 46,687 Investment securities available for sale Level 3 — — 250 250 Federal Home Loan Bank stock Level 2 2,014 2,014 1,694 1,694 Loans held for sale Level 2 17,219 17,219 12,722 12,722 Loans Level 3 433,644 434,392 427,827 429,254 Impaired loans Level 3 1,590 1,590 1,468 1,468 Assets held for sale Level 3 514 514 514 514 Other real estate owned Level 3 526 526 526 526 Bank owned life insurance Level 3 7,657 7,657 7,612 7,612 Accrued interest receivable Level 2 2,578 2,578 2,597 2,597 Interest rate lock commitments Level 2 728 728 — — Financial liabilities Deposits Level 2 468,843 469,440 443,208 443,645 FHLB borrowings Level 2 36,000 36,448 29,000 29,285 Trust preferred securities Level 2 8,764 9,851 8,764 9,812 Other borrowings Level 2 5,604 5,604 10,912 10,912 Accrued interest payable Level 2 214 214 221 221 Forward sales commitment Level 2 1,188 1,188 — — |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting | |
Segment Reporting | Note 13 – Segment Reporting The Company has two reportable segments: traditional commercial banking and mortgage banking. Revenues from commercial banking operations consist primarily of interest earned on loans and securities and fees from deposit services. Mortgage banking operating revenues consist principally of interest earned on mortgage loans held for sale, gains on sales of loans in the secondary mortgage market, and loan origination fee income. The commercial banking segment provides the mortgage banking segment with the short-term funds needed to originate mortgage loans through a warehouse line of credit and charges the mortgage banking segment interest based on the commercial banking segment’s cost of funds. Additionally, the mortgage banking segment leases premises from the commercial banking segment. These transactions are eliminated in the consolidation process. The following table presents segment information as of and for the three months ended March 31, 2020 and 2019 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended March 31, 2020 Revenues Interest income $ 5,590 $ 109 $ (15) $ 5,684 Gain on sale of loans — 1,624 — 1,624 Other revenues 733 197 (57) 873 Total revenues 6,323 1,930 (72) 8,181 Expenses Provision for loan losses 400 — — 400 Interest expense 1,257 15 (15) 1,257 Salaries and benefits 2,208 814 — 3,022 Commissions — 437 — 437 Other expenses 1,709 276 (57) 1,928 Total operating expenses 5,574 1,542 (72) 7,044 Income before income taxes 749 388 — 1,137 Income tax expense 158 81 — 239 Net income $ 591 $ 307 $ — $ 898 Total assets $ 570,751 $ 12,433 $ (12,979) $ 570,205 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended March 31, 2019 Revenues Interest income $ 5,646 $ 63 $ — $ 5,709 Gain on sale of loans — 928 — 928 Other revenues 774 112 (57) 829 Total revenues 6,420 1,103 (57) 7,466 Expenses Interest expense 1,243 — — 1,243 Salaries and benefits 2,200 736 — 2,936 Commissions — 239 — 239 Other expenses 1,882 238 (57) 2,063 Total operating expenses 5,325 1,213 (57) 6,481 Income before income taxes 1,095 (110) — 985 Income tax expense 199 (23) — 176 Net income $ 896 $ (87) $ — $ 809 Total assets $ 525,782 $ 9,892 $ (13,400) $ 522,274 |
Shareholders' Equity and Regula
Shareholders' Equity and Regulatory Matters | 3 Months Ended |
Mar. 31, 2020 | |
Shareholders' Equity and Regulatory Matters | |
Shareholders' Equity and Regulatory Matters | Note 14 – Shareholders’ Equity and Regulatory Matters Preferred Stock On May 1, 2009, as part of the Capital Purchase Program established by the U.S. Department of the Treasury (the “Treasury”) under the Emergency Economic Stabilization Act of 2008, the Company sold (i) 14,738 shares of the Company’s Fixed Rate Cumulative Perpetual Preferred Stock, Series A, par value $4.00 per share, having a liquidation preference of $1,000 per share (the “preferred stock”) and (ii) a warrant (the “Warrant”) to purchase 499,029 shares of the Company’s common stock at an initial exercise price of $4.43 per share, subject to certain anti-dilution and other adjustments, to the Treasury for an aggregate purchase price of $14,738,000 in cash. During the first quarter of 2018, the Company used the proceeds from a subordinated note issuance to redeem the remaining 5,027 outstanding shares of preferred stock plus accrued dividends of $56,554. The Warrant expired on May 1, 2019. Accumulated Other Comprehensive Income (Loss) The following table presents the cumulative balances of the components of accumulated other comprehensive income (loss), net of deferred taxes of $116,000 and $38,000 as of March 31, 2020 and December 31, 2019, respectively (in thousands): March 31, December 31, 2020 2019 Net unrealized gains on securities $ 480 $ 186 Net unrecognized losses on defined benefit plan (42) (44) Total accumulated other comprehensive income $ 438 $ 142 Regulatory Matters The Company meets the eligibility criteria of a small bank holding company in accordance with the Federal Reserve’s Small Bank Holding Company Policy Statement (the “SBHC Policy Statement”). On August 28, 2018, the Federal Reserve issued an interim final rule required by the Economic Growth, Regulatory Relief and Consumer Protection Act of 2018, which was signed into law on May 24, 2018 (the “EGRRCPA”), that expands the applicability of the SBHC Policy Statement to bank holding companies with total consolidated assets of less than $3 billion (up from the prior $1 billion threshold). Under the SBHC Policy Statement, qualifying bank holding companies, such as the Company, have additional flexibility in the amount of debt they can issue and are also exempt from the Basel III Capital Rules. The SBHC Policy Statement does not apply to the Bank and the Bank must comply with the Basel III Capital Rules. The Bank is required to comply with the capital adequacy standards established by the Board of Governors of the Federal Reserve System (the “Federal Reserve”), in the case of the Company, and the Federal Deposit Insurance Corporation (“FDIC”), in the case of the Bank. The Federal Reserve and the FDIC have adopted rules to implement the Basel III capital framework as outlined by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act (the “Basel III Capital Rules”). The Basel III Capital Rules implement minimum capital ratios and establish risk weightings that are applied to many classes of assets held by community banks, including applying higher risk weightings to certain commercial real estate loans. The Basel III Capital Rules require banks to comply with the following minimum capital ratios: (1) a ratio of common equity Tier 1 capital to risk-weighted assets of at least 4.5%, plus a 2.5% “capital conservation buffer” (effectively resulting in a minimum ratio of common equity Tier 1 to risk-weighted assets of at least 7%); (2) a ratio of Tier 1 capital to risk-weighted assets of at least 6.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum Tier 1 capital ratio of 8.5%); (3) a ratio of total capital to risk-weighted assets of at least 8.0%, plus the 2.5% capital conservation buffer (effectively resulting in a minimum total capital ratio of 10.5%); and (4) a leverage ratio of 4%, calculated as the ratio of Tier 1 capital to balance sheet exposures plus certain off-balance sheet exposures (computed as the average for each quarter of the month-end ratios for the quarter). The phase-in of the capital conservation buffer requirement began on January 1, 2016, at 0.625% of risk-weighted assets, increasing by the same amount each year until it was fully implemented at 2.5% on January 1, 2019. The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking organizations with a ratio of common equity Tier 1 capital to risk-weighted assets above the minimum but below the conservation buffer face constraints on dividends, equity repurchases, and compensation based on the amount of the shortfall. As of March 31, 2020, the Bank exceeded the minimum ratios under the Basel III Capital Rules. The Bank must also comply with the capital requirements set forth in the “prompt corrective action” regulations pursuant to Section 38 of the Federal Deposit Insurance Act of 1950. To be well capitalized under these regulations, a bank must have the following minimum capital ratios: (1) a common equity Tier 1 capital ratio of at least 6.5%; (2) a Tier 1 risk-based capital ratio of at least 8.0%; (3) a total risk-based capital ratio of at least 10.0%; and (4) a leverage ratio of at least 5.0%. As of March 31, 2020, the Bank exceeded the minimum ratios to be classified as well capitalized. On September 17, 2019, the federal bank regulators issued a final rule required by the EGRRCPA that permits qualifying banks and bank holding companies that have less than $10 billion of assets, like the Company and the Bank, to elect to be subject to a 9% leverage ratio that would be applied using less complex leverage calculations (commonly referred to as the community bank leverage ratio or “CBLR”). Under the rule, which became effective January 1, 2020, banks and bank holding companies that opt into the CBLR framework and maintain a CBLR of greater than 9% would not be subject to other risk-based and leverage capital requirements under the Basel III Capital Rules and would be deemed to have met the well capitalized ratio requirements under the “prompt corrective action” framework. In April 2020, as required by the Coronavirus Aid, Relief, and Economic Security Act, which was passed in response to the COVID-19 pandemic, federal bank regulators issued two interim final rules related to the CBLR framework. One interim final rule provides that, as of the second quarter of 2020, banking organizations with leverage ratios of 8% or greater (and that meet the other existing qualifying criteria) may elect to use the CBLR framework. It also establishes a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall below the 8% CBLR requirement, so long as the banking organization maintains a leverage ratio of 7% or greater. The second interim final rule provides a transition from the temporary 8% CBLR requirement to a 9% CBLR requirement. It establishes a minimum CBLR of 8% for the second through fourth quarters of 2020, 8.5% for 2021, and 9% thereafter, and maintains a two-quarter grace period for qualifying community banking organizations whose leverage ratios fall no more than 100 basis points below the applicable CBLR requirement. The Bank elected not to opt into the CBLR framework as of March 31, 2020. The capital amounts and ratios at March 31, 2020 and December 31, 2019 for the Bank are presented in the table below (dollars in thousands): For Capital Actual Adequacy Purposes To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total capital (to risk-weighted assets) Village Bank $ 57,746 12.62 % $ 36,620 8.00 % $ 45,775 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 54,302 11.86 % 27,465 6.00 % 36,620 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 54,302 10.10 % 21,515 4.00 % 26,894 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 54,302 11.86 % 20,599 4.50 % 29,754 6.50 % December 31, 2019 Total capital (to risk-weighted assets) Village Bank $ 54,653 12.56 % $ 34,807 8.00 % $ 43,508 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 52,867 12.15 % 26,015 6.00 % 34,807 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 52,867 9.69 % 21,823 4.00 % 27,278 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 52,867 12.15 % 19,579 4.50 % 28,280 6.50 % |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and contingencies | |
Commitments and contingencies | Note 15 – Commitments and contingencies Off-balance-sheet risk – The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financial needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. These instruments involve, to varying degrees, elements of credit and interest-rate risk in excess of the amounts recognized in the financial statements. The contract amounts of these instruments reflect the extent of involvement that the Company has in particular classes of instruments. The Company’s exposure to credit loss in the event of non-performance by the other party to the financial instrument for commitments to extend credit, and to potential credit loss associated with letters of credit issued, is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for loans and other such on-balance sheet instruments. At March 31, 2020 and December 31, 2019, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): March 31, December 31, 2020 2019 Undisbursed credit lines $ 93,097 $ 83,366 Commitments to extend or originate credit 37,590 15,722 Standby letters of credit 7,007 6,732 Total commitments to extend credit $ 137,694 $ 105,820 Commitments to extend credit are agreements to lend to a customer 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 the payment of a fee. Historically, many commitments expire without being drawn upon; therefore, the total commitment amounts shown in the above table are not necessarily indicative of future cash requirements. The Company evaluates each customer’s creditworthiness on a case-by-case basis. The amount of collateral obtained, as deemed necessary by the Company upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include personal or income-producing commercial real estate, accounts receivable, inventory and equipment. Standby letters of credit are written conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Concentrations of credit risk – Generally, the Company’s loans, commitments to extend credit, and standby letters of credit have been granted to customers in the Company’s market area. Although the Company is building a diversified loan portfolio, a substantial portion of its clients’ ability to honor contracts is reliant upon the economic stability of the Richmond, Virginia area, including the real estate markets in the area. The concentrations of credit by type of loan are set forth in Note 5. The distribution of commitments to extend credit approximates the distribution of loans outstanding. |
Mortgage Banking and Derivative
Mortgage Banking and Derivative | 3 Months Ended |
Mar. 31, 2020 | |
Mortgage Banking and Derivatives | |
Mortgage Banking and Derivatives | Note 16 – Mortgage Banking and Derivatives Loans held for sale. The Company, through the Bank’s mortgage banking subsidiary, the Mortgage Company, originates residential mortgage loans for sale in the secondary market. Residential mortgage loans held for sale are sold to the permanent investor with the mortgage servicing rights released. During the first quarter of 2020, the Company elected to begin using fair value accounting for its entire portfolio of loans held for sale (LHFS) in accordance with ASC 820 - Fair Value Measurement and Disclosures. Fair value of the Company’s LHFS is based on observable market prices for the identical instruments traded in the secondary mortgage loan markets in which the Company conducts business and totaled $17.2 million as of March 31, 2020, of which $16.8 million is related to unpaid principal. The Company’s portfolio of LHFS is classified as Level 2. These loans were previously carried as of December 31, 2019 at the lower of cost or estimated fair value on an aggregate basis as determined by outstanding commitments from investors and totaled $12.7 million. Interest Rate Lock Commitments and Forward Sales Commitments. The Company, through the Mortgage Company, enters into commitments to originate residential mortgage loans in which the interest rate on the loan is determined prior to funding, termed interest rate lock commitments (IRLCs). Such rate lock commitments on mortgage loans to be sold in the secondary market are considered to be derivatives. Upon entering into a commitment to originate a loan, the Company protects itself from changes in interest rates during the period prior to sale by requiring a firm purchase agreement from a permanent investor before a loan can be closed (forward sales commitment). The Company locks in the loan and rate with an investor and commits to deliver the loan if settlement occurs on a best efforts basis, thus limiting interest rate risk. Certain additional risks exist if the investor fails to meet its purchase obligation; however, based on historical performance and the size and nature of the investors the Company does not expect them to fail to meet their obligation. The Company determines the fair value of IRLCs based on the price of the underlying loans obtained from an investor for loans that will be delivered on a best efforts basis while taking into consideration the probability that the rate lock commitments will close. The fair value of these derivative instruments is reported in “Other Assets” in the Consolidated Balance Sheet at March 31, 2020, and totaled $728,000, with a notional amount of $37.6 million and total positions of 158. The fair value of IRLCs was considered immaterial at December 31, 2019. Changes in fair value are recorded as a component of mortgage banking income, net in the Consolidated Income Statement for the period ended March 31, 2020. The Company’s IRLCs are classified as Level 2. At March 31, 2020 and December 31, 2019, each IRLC and all LHFS were subject to a forward sales commitment on a best efforts basis. During the first quarter of 2020, the Company elected to begin using fair value accounting for its forward sales commitments related to IRLCs and LHFS under ASC 825-10-15-4(b). The fair value of forward sales commitments is reported in “Other Liabilities” in the Consolidated Balance Sheet at March 31, 2020, and totaled $1.2 million, with a notional amount of $54.8 million and total positions of 235. The fair value of the forward sales commitments was considered immaterial at December 31, 2019. |
Recent accounting pronouncement
Recent accounting pronouncements | 3 Months Ended |
Mar. 31, 2020 | |
Recent accounting pronouncements | |
Recent accounting pronouncements | Note 17 – Recent accounting pronouncements In June 2016, the FASB issued ASU No. 2016-13, “Financial Instruments—Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU 2016-13 as codified in Topic 326, including ASUs 2019-04, 2019-05, 2019-10, 2019-11, 2020-02, and 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. Smaller reporting companies who file with the SEC and all other entities who do not file with the SEC are required to apply the guidance for fiscal years, and interim periods within those years, beginning after December 15, 2022. While the Company is currently evaluating the provisions of ASU No. 2016-13 to determine the potential impact the new standard will have on the Company’s Consolidated Financial Statements, it has taken steps to prepare for the implementation when it becomes effective, such as forming an internal task force, gathering pertinent data, consulting with outside professionals, and evaluating its current IT systems. This guidance may result in material changes in the Company's accounting for credit losses on financial instruments. In August 2018, the FASB issued ASU 2018-13, “Fair Value Measurement (Topic 820) - Changes to the Disclosure Requirements for Fair Value Measurement” (“ASU 2018-13”). ASU 2018-13 modifies the disclosure requirements on fair value measurements by requiring that Level 3 fair value disclosures include the range and weighted average of significant unobservable inputs used to develop those fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. Certain disclosure requirements in Topic 820 were also removed or modified. ASU 2018-13 was effective for the Company on January 1, 2020. The adoption of ASU 2018-13 did not have a material impact on the Company’s consolidated financial statements. 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 systematic methodology; (3) documenting the results of a systematic methodology; and (4) validating a systematic methodology. In August 2018, the FASB issued ASU 2018-14, “Compensation—Retirement Benefits—Defined Benefit Plans—General (Subtopic 715-20): Disclosure Framework—Changes to the Disclosure Requirements for Defined Benefit Plans.” These amendments modify the disclosure requirements for employers that sponsor defined benefit pension or other postretirement plans. Certain disclosure requirements have been deleted while the following disclosure requirements have been added: the weighted-average interest crediting rates for cash balance plans and other plans with promised interest crediting rates and an explanation of the reasons for significant gains and losses related to changes in the benefit obligation for the period. The amendments also clarify the disclosure requirements in paragraph 715-20-50-3, which state that the following information for defined benefit pension plans should be disclosed: The projected benefit obligation (“PBO”) and fair value of plan assets for plans with PBOs in excess of plan assets and the accumulated benefit obligation (“ABO”) and fair value of plan assets for plans with ABOs in excess of plan assets. The amendments are effective for fiscal years ending after December 15, 2020. Early adoption is permitted. The Company does not expect the adoption of ASU 2018-14 to have a material impact on its consolidated financial statements. In December 2019, the FASB issued ASU 2019-12, “Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes.” The ASU is expected to reduce cost and complexity related to the accounting for income taxes by removing specific exceptions to general principles in Topic 740 (eliminating the need for an organization to analyze whether certain exceptions apply in a given period) and improving financial statement preparers’ application of certain income tax-related guidance. This ASU is part of the FASB’s simplification initiative to make narrow-scope simplifications and improvements to accounting standards through a series of short-term projects. For public business entities, such as the Company, the amendments are effective for fiscal years beginning after December 15, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company is currently assessing the impact that ASU 2019-12 will have on its consolidated financial statements. In January 2020, the FASB issued ASU 2020-01, “Investments – Equity Securities (Topic 321), Investments – Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815) – Clarifying the Interactions between Topic 321, Topic 323, and Topic 815.” The ASU is based on a consensus of the Emerging Issues Task Force and is expected to increase comparability in accounting for these transactions. ASU 2020-01 amends ASU 2016-01, which made targeted improvements to accounting for financial instruments, including providing an entity the ability to measure certain equity securities without a readily determinable fair value at cost, less any impairment, plus or minus changes resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer. Among other topics, the amendments in ASU 2020-01 clarify that an entity should consider observable transactions that require it to either apply or discontinue the equity method of accounting. For public business entities, such as the Company, the amendments in the ASU are effective for fiscal years beginning after December 31, 2020, and interim periods within those fiscal years. Early adoption is permitted. The Company does not expect the adoption of ASU 2020-01 to have a material impact on its consolidated financial statements. In March 2020, the FASB issued ASU 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. The Company has a team to assess ASU 2020-04 and its impact on the Company’s transition away from LIBOR for its loan and other financial instruments. In March 2020, various regulatory agencies, including the Board of Governors of the Federal Reserve and the FDIC, (“the agencies”) issued an interagency statement on loan modifications and reporting for financial institutions working with customers affected by the Coronavirus. The interagency statement was effective immediately and impacted accounting for loan modifications. Under ASC 310-40, “Receivables – Troubled Debt Restructurings by Creditors,” a restructuring of debt constitutes a TDR if the creditor, for economic or legal reasons related to the debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. The agencies confirmed with the staff of the FASB that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief, are not to be considered TDRs. This includes short-term (e.g., six months) modifications such as payment deferrals, fee waivers, extensions of repayment terms, or other delays in payment that are insignificant. Borrowers considered current are those that are less than 30 days past due on their contractual payments at the time a modification program is implemented. As of March 31, 2020, the Company had a total of $7,565,000 in loans past due greater than 30 days of which $5,346,000 were rehabilitated student loans which have a 98% guarantee by the DOE of principal and interest. For more financial data and other information about loan deferral refer to section, “Response to COVID-19” under Item 2 – “Management’s Discussion and Analysis of Financial Condition and Results of Operations”. This interagency guidance is expected to have an impact on the Company’s financial statements; however, this impact cannot be quantified at this time. |
Earnings per common share (Tabl
Earnings per common share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings per common share | |
Schedule of basic and diluted earnings per common share | The following table presents the basic and diluted earnings per common share computation (in thousands, except share and per share data): Three Months Ended March 31, 2020 2019 Numerator Net income - basic and diluted $ 898 $ 809 Denominator Weighted average shares outstanding - basic 1,454 1,435 Dilutive effect of common stock options — — Weighted average shares outstanding - diluted 1,454 1,435 Earnings per share - basic $ 0.62 $ 0.56 Earnings per share - diluted $ 0.62 $ 0.56 |
Investment securities availab_2
Investment securities available for sale (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Investment securities available for sale | |
Schedule of amortized cost and fair value of investment securities available for sale | The amortized cost and fair value of investment securities available for sale as of March 31, 2020 and December 31, 2019 are as follows (in thousands): Gross Gross Amortized Unrealized Unrealized Fair Cost Gains Losses Value March 31, 2020 U.S. Government agency obligations $ 12,706 $ 154 $ (3) $ 12,857 Mortgage-backed securities 17,989 631 — 18,620 Subordinated debt 7,779 43 (218) 7,604 $ 38,474 $ 828 $ (221) $ 39,081 December 31, 2019 U.S. Government agency obligations $ 14,797 $ 57 $ (9) $ 14,845 Mortgage-backed securities 25,124 204 (26) 25,302 Subordinated debt 6,779 91 (80) 6,790 $ 46,700 $ 352 $ (115) $ 46,937 |
Schedule of gross realized gains and losses pertaining to available for sale securities | Gross realized gains and losses pertaining to available for sale securities are detailed as follows for the periods indicated (in thousands): Three Months Ended March 31, 2020 2019 Gross realized gains $ 39 $ 101 Gross realized losses (27) — $ 12 $ 101 |
Schedule of investment securities available for sale | Investment securities available for sale that have an unrealized loss position at March 31, 2020 and December 31, 2019 are detailed below (in thousands): Securities in a loss Securities in a loss position for less than position for more than 12 Months 12 Months Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses March 31, 2020 U.S. Government agency obligations $ — $ — $ 1,201 $ (3) $ 1,201 $ (3) Subordinated debt 4,344 (136) 418 (82) 4,762 (218) $ 4,344 $ (136) $ 1,619 $ (85) $ 5,963 $ (221) December 31, 2019 U.S. Government agency obligations $ 2,001 $ (1) $ 5,368 $ (8) $ 7,369 $ (9) Mortgage-backed securities 2,747 (26) — — 2,747 (26) Subordinated debt 759 (6) (74) 1,699 (80) $ 5,507 $ (33) $ $ (82) $ 11,815 $ (115) |
Schedule of investment by contractual maturity | The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2020, by contractual maturity, are as follows (in thousands): Amortized Cost Fair Value Less than one year $ 6,208 $ 6,257 One to five years 4,489 4,557 Five to ten years 10,114 9,989 More than ten years 17,663 18,278 Total $ 38,474 $ 39,081 |
Loans and allowance for loan _2
Loans and allowance for loan losses (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Loans and allowance for loan losses | |
Schedule of composition of loan portfolio (excluding mortgage loans held for sale) | Loans classified by type as of March 31, 2020 and December 31, 2019 are as follows (dollars in thousands): March 31, 2020 December 31, 2019 Amount % Amount % Construction and land development Residential $ 8,143 1.87 % $ 7,887 1.84 % Commercial 24,027 5.52 % 24,063 5.60 % 32,170 7.39 % 31,950 7.44 % Commercial real estate Owner occupied 103,210 23.71 % 98,353 22.91 % Non-owner occupied 115,278 26.49 % 116,508 27.14 % Multifamily 14,046 3.23 % 13,332 3.10 % Farmland 150 0.03 % 156 0.04 % 232,684 53.46 % 228,349 53.19 % Consumer real estate Home equity lines 20,590 4.73 % 21,509 5.01 % Secured by 1-4 family residential, First deed of trust 57,352 13.18 % 55,856 13.01 % Second deed of trust 11,348 2.61 % 10,411 2.43 % 89,290 20.52 % 87,776 20.45 % Commercial and industrial loans (except those secured by real estate) 45,838 10.53 % 45,074 10.50 % Guaranteed student loans 32,251 7.41 % 33,525 7.81 % Consumer and other 3,001 0.69 % 2,621 0.60 % Total loans 435,234 100.0 % 429,295 100.0 % Deferred fees and costs, net 704 764 Less: allowance for loan losses (3,444) (3,186) $ 432,494 $ 426,873 |
Schedule of information on nonaccrual loans | The following table provides information on nonaccrual loans segregated by type at the dates indicated (in thousands): March 31, December 31, 2020 2019 Commercial real estate Owner occupied $ — $ 497 — 497 Consumer real estate Home equity lines 300 300 Secured by 1-4 family residential First deed of trust 745 842 Second deed of trust 62 63 1,107 1,205 Commercial and industrial loans (except those secured by real estate) 210 166 Total loans $ 1,317 $ 1,868 |
Schedule of information on the risk rating of loans | The following tables provide information on the risk rating of loans at the dates indicated (in thousands): Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans March 31, 2020 Construction and land development Residential $ 7,825 $ 318 $ — $ — $ 8,143 Commercial 23,542 185 300 — 24,027 31,367 503 300 — 32,170 Commercial real estate Owner occupied 92,362 8,759 2,089 — 103,210 Non-owner occupied 114,560 226 492 — 115,278 Multifamily 13,903 143 — — 14,046 Farmland 150 — — — 150 220,975 9,128 2,581 — 232,684 Consumer real estate Home equity lines 19,585 705 300 — 20,590 Secured by 1-4 family residential First deed of trust 54,634 1,594 1,124 — 57,352 Second deed of trust 11,136 13 199 — 11,348 85,355 2,312 1,623 — 89,290 Commercial and industrial loans (except those secured by real estate) 44,026 1,301 511 — 45,838 Guaranteed student loans 32,251 — — — 32,251 Consumer and other 2,954 47 — — 3,001 Total loans $ 416,928 $ 13,291 $ 5,015 $ — $ 435,234 Risk Rated Risk Rated Risk Rated Risk Rated Total 1-4 5 6 7 Loans December 31, 2019 Construction and land development Residential $ 7,887 $ — $ — $ — $ 7,887 Commercial 23,758 — 305 — 24,063 31,645 — 305 — 31,950 Commercial real estate Owner occupied 90,146 8,072 135 — 98,353 Non-owner occupied 115,781 230 497 — 116,508 Multifamily 13,186 146 — — 13,332 Farmland 71 85 — — 156 219,184 8,533 632 — 228,349 Consumer real estate Home equity lines 20,486 723 300 — 21,509 Secured by 1-4 family residential First deed of trust 53,200 1,660 996 — 55,856 Second deed of trust 10,130 167 114 — 10,411 83,816 2,550 1,410 — 87,776 Commercial and industrial loans (except those secured by real estate) 41,837 2,891 346 — 45,074 Guaranteed student loans 33,525 — — — 33,525 Consumer and other 2,621 — — — 2,621 Total loans $ 412,628 $ 13,974 $ 2,693 $ — $ 429,295 |
Schedule of aging of recorded investment in past due loans and leases | The following table presents the aging of the recorded investment in past due loans and leases as of the dates indicated (in thousands): Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing March 31, 2020 Construction and land development Residential $ — $ — $ — $ — $ 8,143 $ 8,143 $ — Commercial — — — — 24,027 24,027 — — — — — 32,170 32,170 — Commercial real estate Owner occupied 758 — — 758 102,452 103,210 — Non-owner occupied — — — — 115,278 115,278 — Multifamily — — — — 14,046 14,046 — Farmland — — — — 150 150 — 758 — — 758 231,926 232,684 — Consumer real estate Home equity lines 120 — — 120 20,470 20,590 — Secured by 1-4 family residential First deed of trust 227 217 — 444 56,908 57,352 — Second deed of trust 49 — — 49 11,299 11,348 — 396 217 — 613 88,677 89,290 — Commercial and industrial loans (except those secured by real estate) 417 427 — 844 44,994 45,838 — Guaranteed student loans 1,929 652 2,765 5,346 26,905 32,251 2,765 Consumer and other — 4 — 4 2,997 3,001 — Total loans $ 3,500 $ 1,300 $ 2,765 $ 7,565 $ 427,669 $ 435,234 $ 2,765 Recorded Greater Investment > 30-59 Days 60-89 Days Than Total Past Total 90 Days and Past Due Past Due 90 Days Due Current Loans Accruing December 31, 2019 Construction and land development Residential $ — $ — $ — $ — $ 7,887 $ 7,887 $ — Commercial — — — — 24,063 24,063 — — — — — 31,950 31,950 — Commercial real estate Owner occupied 701 — — 701 97,652 98,353 — Non-owner occupied — — — — 116,508 116,508 — Multifamily — — — — 13,332 13,332 — Farmland — — — — 156 156 — 701 — — 701 227,648 228,349 — Consumer real estate Home equity lines 52 — — 52 21,457 21,509 — Secured by 1-4 family residential First deed of trust 290 — — 290 55,566 55,856 — Second deed of trust 133 — — 133 10,278 10,411 — 475 — — 475 87,301 87,776 — Commercial and industrial loans (except those secured by real estate) 773 — — 773 44,301 45,074 — Guaranteed student loans 1,694 1,309 2,567 5,570 27,955 33,525 2,567 Consumer and other 4 — — 4 2,617 2,621 — Total loans $ 3,647 $ 1,309 $ 2,567 $ 7,523 $ 421,772 $ 429,295 $ 2,567 |
Schedule of impaired loans | Impaired loans are set forth in the following table as of the dates indicated (in thousands): March 31, 2020 December 31, 2019 Unpaid Unpaid Recorded Principal Related Recorded Principal Related Investment Balance Allowance Investment Balance Allowance With no related allowance recorded Commercial $ 300 $ 300 $ — $ 337 $ 337 $ — 300 300 — 337 337 — Commercial real estate Owner occupied 2,582 2,597 — 2,089 2,104 — Non-owner occupied 2,128 2,128 — 2,304 2,304 — 4,710 4,725 — 4,393 4,408 — Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential First deed of trust 2,128 2,128 — 1,752 1,774 — Second deed of trust 904 1,112 — 752 960 — 3,332 3,540 — 2,804 3,034 — Commercial and industrial loans (except those secured by real estate) 161 161 — 211 373 — 8,503 8,726 — 7,745 8,152 — With an allowance recorded Commercial real estate Owner occupied 1,403 1,403 13 1,414 1,414 15 1,403 1,403 13 1,414 1,414 15 Consumer real estate Secured by 1-4 family residential First deed of trust 77 77 9 78 78 9 77 77 9 78 78 9 Commercial and industrial loans (except those secured by real estate) 180 342 48 135 334 135 1,660 1,822 70 1,627 1,826 159 Total Construction and land development Commercial 300 300 — 337 337 — 300 300 — 337 337 — Commercial real estate Owner occupied 3,985 4,000 13 3,503 3,518 15 Non-owner occupied 2,128 2,128 — 2,304 2,304 — 6,113 6,128 13 5,807 5,822 15 Consumer real estate Home equity lines 300 300 — 300 300 — Secured by 1-4 family residential, First deed of trust 2,205 2,205 9 1,830 1,852 9 Second deed of trust 904 1,112 — 752 960 — 3,409 3,617 9 2,882 3,112 9 Commercial and industrial loans (except those secured by real estate) 341 503 48 346 707 135 $ 10,163 $ 10,548 $ 70 $ 9,372 $ 9,978 $ 159 |
Schedule of average recorded investment in impaired loans | The following is a summary of average recorded investment in impaired loans with and without a valuation allowance and interest income recognized on those loans for the periods indicated (in thousands): For the Three Months Ended March 31, 2020 2019 Average Interest Average Interest Recorded Income Recorded Income Investment Recognized Investment Recognized With no related allowance recorded Construction and land development Residential $ — $ — $ 267 $ — Commercial 315 — 475 — 315 — 742 — Commercial real estate Owner occupied 2,696 29 3,460 42 Non-owner occupied 2,324 32 2,597 23 5,020 61 6,057 65 Consumer real estate Home equity lines 363 4 550 — Secured by 1-4 family residential First deed of trust 2,072 19 2,972 42 Second deed of trust 740 14 704 13 3,175 37 4,226 55 Commercial and industrial loans (except those secured by real estate) 646 — 477 8 Consumer and other 1 — 1 — 9,157 98 11,503 128 With an allowance recorded Construction and land development Commercial — 26 — Commercial real estate Owner occupied 1,420 15 1,461 15 1,420 15 1,461 15 Consumer real estate Secured by 1-4 family residential First deed of trust 136 1 262 3 Second deed of trust 78 — 162 2 214 1 424 5 Commercial and industrial loans (except those secured by real estate) 162 6 176 — Consumer and other 4 — 14 — 1,800 22 2,101 20 Total Construction and land development Residential $ — $ — $ 267 $ — Commercial 315 — 501 — 315 — 768 — Commercial real estate Owner occupied 4,116 44 4,921 57 Non-owner occupied 2,324 32 2,597 23 6,440 76 7,518 80 Consumer real estate Home equity lines 363 4 550 — Secured by 1-4 family residential, First deed of trust 2,208 20 3,234 45 Second deed of trust 818 14 866 15 3,389 38 4,650 60 Commercial and industrial loans (except those secured by real estate) 808 6 653 8 Consumer and other 5 — 15 — $ 10,957 $ 120 $ 13,604 $ 148 |
Schedule of troubled debt restructurings on financing receivables | The following is a summary of performing and nonaccrual TDRs and the related specific valuation allowance by portfolio segment for the periods indicated (dollars in thousands). Specific Valuation Total Performing Nonaccrual Allowance March 31, 2020 Commercial real estate Owner occupied $ 3,462 $ 3,462 $ — $ 13 Non-owner occupied 2,128 2,128 — — 5,590 5,590 — 13 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,630 1,128 502 9 Second deeds of trust 816 754 62 — 2,446 1,882 564 9 Commercial and industrial loans (except those secured by real estate) 210 — 210 48 $ 8,246 $ 7,472 $ 774 $ 70 Number of loans 37 28 9 4 Specific Valuation Total Performing Nonaccrual Allowance December 31, 2019 Commercial real estate Owner occupied $ 3,502 $ 3,502 $ — $ 15 Non-owner occupied 2,304 1,807 497 — 5,806 5,309 497 15 Consumer real estate Secured by 1-4 family residential First deeds of trust 1,641 881 760 9 Second deeds of trust 752 689 63 — 2,393 1,570 823 9 Commercial and industrial loans (except those secured by real estate) 211 180 31 — $ 8,410 $ 7,059 $ 1,351 $ 24 Number of loans 38 29 9 3 |
Schedule of troubled debt restructurings on financing receivables modification | The following table provides information about TDRs identified during the indicated periods (dollars in thousands). Three Months Ended Three Months Ended March 31, 2020 March 31, 2019 Pre- Post- Pre- Post- Modification Modification Modification Modification Number of Recorded Recorded Number of Recorded Recorded Loans Balance Balance Loans Balance Balance Commercial real estate Non-owner occupied — $ — $ — 1 $ 515 $ 515 — $ — $ — 1 $ 515 $ 515 |
Schedule of activity in the allowance for loan losses | Activity in the allowance for loan losses is as follows for the periods indicated (in thousands): Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2020 Construction and land development Residential $ 48 $ 170 $ — $ 1 $ 219 Commercial 137 133 — — 270 185 303 — 1 489 Commercial real estate Owner occupied 671 188 — — 859 Non-owner occupied 831 227 — — 1,058 Multifamily 85 (17) — — 68 Farmland 2 (1) — — 1 1,589 397 — — 1,986 Consumer real estate Home equity lines 271 (231) — — 40 Secured by 1-4 family residential First deed of trust 343 (189) — 3 157 Second deed of trust 64 8 — 4 76 678 (412) — 7 273 Commercial and industrial loans (except those secured by real estate) 572 (31) (135) 3 409 Student loans 108 16 (20) — 104 Consumer and other 30 9 (1) 3 41 Unallocated 24 118 — — 142 $ 3,186 $ 400 $ (156) $ 14 $ 3,444 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Three Months Ended March 31, 2019 Construction and land development Residential $ 42 $ 3 $ — $ 1 $ 46 Commercial 220 (48) — 1 173 262 (45) — 2 219 Commercial real estate Owner occupied 673 37 — — 710 Non-owner occupied 673 19 — — 692 Multifamily 87 1 — — 88 Farmland 2 — — — 2 1,435 57 — — 1,492 Consumer real estate Home equity lines 244 (10) — 6 240 Secured by 1-4 family residential First deed of trust 385 8 — 2 395 Second deed of trust 51 2 — 4 57 680 — — 12 692 Commercial and industrial loans (except those secured by real estate) 308 48 (15) 11 352 Student loans 121 33 (33) — 121 Consumer and other 34 (3) (2) 1 30 Unallocated 211 (90) — — 121 $ 3,051 $ — $ (50) $ 26 $ 3,027 Provision for Beginning (Recovery of) Ending Balance Loan Losses Charge-offs Recoveries Balance Year Ended December 31, 2019 Construction and land development Residential $ 42 $ (1) $ — $ 7 $ 48 Commercial 220 (85) — 2 137 262 (86) — 9 185 Commercial real estate Owner occupied 673 (2) — — 671 Non-owner occupied 673 158 — — 831 Multifamily 87 (2) — — 85 Farmland 2 — — — 2 1,435 154 — — 1,589 Consumer real estate Home equity lines 244 50 (35) 12 271 Secured by 1-4 family residential First deed of trust 385 (56) — 14 343 Second deed of trust 51 (56) — 69 64 680 (62) (35) 95 678 Commercial and industrial loans (except those secured by real estate) 308 239 (64) 89 572 Student loans 121 80 (93) — 108 Consumer and other 34 (3) (26) 25 30 Unallocated 211 (187) — — 24 $ 3,051 $ 135 $ (218) $ 218 $ 3,186 |
Schedule of loans evaluated for impairment | Loans were evaluated for impairment as follows for the periods indicated (in thousands): Recorded Investment in Loans Allowance Loans Ending Ending Balance Individually Collectively Balance Individually Collectively Three Months Ended March 31, 2020 Construction and land development Residential $ 219 $ — $ 219 $ 8,143 $ — $ 8,143 Commercial 270 — 270 24,027 300 23,727 489 — 489 32,170 300 31,870 Commercial real estate Owner occupied 859 13 846 103,210 3,985 99,225 Non-owner occupied 1,058 — 1,058 115,278 2,128 113,150 Multifamily 68 — 68 14,046 — 14,046 Farmland 1 — 1 150 — 150 1,986 13 1,973 232,684 6,113 226,571 Consumer real estate Home equity lines 40 — 40 20,590 300 20,290 Secured by 1-4 family residential First deed of trust 157 9 148 57,352 2,205 55,147 Second deed of trust 76 — 76 11,348 904 10,444 273 9 264 89,290 3,409 85,881 Commercial and industrial loans (except those secured by real estate) 409 48 361 45,838 341 45,497 Student loans 104 — 104 32,251 — 32,251 Consumer and other 183 — 183 3,001 — 3,001 $ 3,444 $ 70 $ 3,374 $ 435,234 $ 10,163 $ 425,071 Year Ended December 31, 2019 Construction and land development Residential $ 48 $ — $ 48 $ 7,887 $ — $ 7,887 Commercial 137 — 137 24,063 337 23,726 185 — 185 31,950 337 31,613 Commercial real estate Owner occupied 671 15 656 98,353 3,503 94,850 Non-owner occupied 831 — 831 116,508 2,304 114,204 Multifamily 85 — 85 13,332 — 13,332 Farmland 2 — 2 156 — 156 1,589 15 1,574 228,349 5,807 222,542 Consumer real estate Home equity lines 271 — 271 21,509 300 21,209 Secured by 1-4 family residential First deed of trust 343 9 334 55,856 1,830 54,026 Second deed of trust 64 — 64 10,411 752 9,659 678 9 669 87,776 2,882 84,894 Commercial and industrial loans (except those secured by real estate) 572 135 437 45,074 346 44,728 Student loans 108 — 108 33,525 — 33,525 Consumer and other 54 — 54 2,621 — 2,621 $ 3,186 $ 159 $ 3,027 $ 429,295 $ 9,372 $ 419,923 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Deposits | |
Schedule of deposits | Deposits as of March 31, 2020 and December 31, 2019 were as follows (dollars in thousands): March 31, 2020 December 31, 2019 Amount % Amount % Checking accounts Noninterest bearing demand 139,660 29.8 % $ 131,228 29.6 % Interest bearing 51,008 10.9 % 48,428 10.9 % Money market accounts 114,461 24.4 % 99,955 22.6 % Savings accounts 26,618 5.7 % 26,396 6.0 % Time deposits of $250,000 and over 24,535 5.2 % 22,327 5.0 % Other time deposits 112,561 24.0 % 114,874 25.9 % Total $ 468,843 100.0 % $ 443,208 100.0 % |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Leases | |
Schedule of information about the Company's leases | The following tables present information about the Company's leases (dollars in thousands): March 31, 2020 Lease liabilities $ 928 Right-of-use assets $ 915 Weighted average remaining lease term years Weighted average discount rate 2.98 % For the Three Months Ended March 31, 2020 Lease cost Operating lease cost $ 107 Total lease cost $ 107 |
Schedule of maturity analysis of operating lease liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows (dollars in thousands): As of March 31, 2020 Lease payments due Nine months ending December 31, 2020 310 Twelve months ending December 31, 2021 277 Twelve months ending December 31, 2022 120 Twelve months ending December 31, 2023 44 Twelve months ending December 31, 2024 48 Thereafter 203 Total undiscounted cash flows $ 1,002 Discount 74 Lease liabilities $ 928 |
Stock incentive plan (Tables)
Stock incentive plan (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Stock incentive plan | |
Schedule of options outstanding under company's stock incentive plan | The following table summarizes options outstanding under the Company's stock incentive plans at the indicated dates: Three Months Ended March 31, 2020 2019 Weighted Weighted Average Average Exercise Fair Value Intrinsic Exercise Fair Value Intrinsic Options Price Per Share Value Options Price Per Share Value Options outstanding, beginning of period 734 $ 25.63 $ 9.76 734 $ 25.63 $ 9.76 Granted — — — — — — Forfeited — — — — — — Exercised — — — — — — Options outstanding, end of period 734 $ 25.63 $ 9.76 $ — 734 $ 25.63 $ 9.76 $ — Options exercisable, end of period 734 734 |
Schedule of company's non vested restricted stock awards | A summary of changes in the Company’s non-vested restricted stock awards for the three months ended March 31, 2020 follows: Weighted- Average Aggregate Grant-Date Intrinsic Shares Fair-Value Value December 31, 2019 12,310 $ 33.83 $ 311,197 Granted 750 42.99 18,960 Vested — — — Forefited — — — Other — — — March 31, 2020 13,060 $ 34.36 $ 330,157 |
Fair value (Tables)
Fair value (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value | |
Schedule of recurring and Non recurring basis | Assets and liabilities measured at fair value under Topic 820 on a recurring and non-recurring basis are summarized below for the indicated dates (dollars in thousands): Fair Value Measurement at March 31, 2020 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 12,857 $ — $ 12,857 $ — Mortgage-backed securities 18,620 — 18,620 — Subordinated debt 7,604 500 7,104 — Loans held for sale 17,219 — 17,219 — IRLC 728 — 728 — Financial Liabilities-Recurring Forward Sales Commitment 1,188 — 1,188 — Financial Assets - Non-Recurring Impaired loans 1,590 — — 1,590 Assets held for sale 514 — — 514 Other real estate owned 526 — — 526 Fair Value Measurement at December 31, 2019 Using Quoted Prices in Active Other Significant Markets for Observable Unobservable Carrying Identical Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) Financial Assets - Recurring US Government Agencies $ 14,845 $ — $ 14,845 $ — Mortgage-backed securities 25,302 — 25,302 — Subordinated debt 6,790 — 6,540 250 Financial Assets - Non-Recurring Impaired loans 1,468 — — 1,468 Assets held for sale 514 — — 514 Other real estate owned 526 — — 526 |
Schedule of financial instruments measured at fair value | The following table presents qualitative information about Level 3 fair value measurements for financial instruments measured at fair value at March 31, 2020 and December 31, 2019 (dollars in thousands): March 31, 2020 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,590 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (10%) Assets held for sale $ 514 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (15%) Other real estate owned $ 526 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances December 31, 2019 Range Fair Value Valuation Unobservable (Weighted Estimate Techniques Input Average) Impaired loans - real estate secured $ 1,468 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (10%) Assets held for sale $ 514 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) Discount for lack of marketability and age of appraisal 6%‑30% (15%) Other real estate owned $ 526 Appraisal (1) or Internal Valuation (2) Selling costs 6%‑10% (7%) (1) Fair Value is generally determined through independent appraisals of the underlying collateral, which generally includes various level 3 inputs which are not identifiable (2) Internal valuations may be conducted to determine Fair Value for assets with nominal carrying balances |
Schedule of company's financial instruments whether or not recognized | The following tables reflect the carrying amounts and estimated fair values of the Company’s financial instruments whether or not recognized on the Consolidated Balance Sheets at fair value. March 31, December 31, 2020 2019 Level in Fair Value Carrying Estimated Carrying Estimated Hierarchy Value Fair Value Value Fair Value (In thousands) Financial assets Cash Level 1 $ 23,613 $ 23,613 $ 19,967 $ 19,967 Cash equivalents Level 2 24,365 24,365 — — Investment securities available for sale Level 1 500 500 — — Investment securities available for sale Level 2 38,581 38,581 46,687 46,687 Investment securities available for sale Level 3 — — 250 250 Federal Home Loan Bank stock Level 2 2,014 2,014 1,694 1,694 Loans held for sale Level 2 17,219 17,219 12,722 12,722 Loans Level 3 433,644 434,392 427,827 429,254 Impaired loans Level 3 1,590 1,590 1,468 1,468 Assets held for sale Level 3 514 514 514 514 Other real estate owned Level 3 526 526 526 526 Bank owned life insurance Level 3 7,657 7,657 7,612 7,612 Accrued interest receivable Level 2 2,578 2,578 2,597 2,597 Interest rate lock commitments Level 2 728 728 — — Financial liabilities Deposits Level 2 468,843 469,440 443,208 443,645 FHLB borrowings Level 2 36,000 36,448 29,000 29,285 Trust preferred securities Level 2 8,764 9,851 8,764 9,812 Other borrowings Level 2 5,604 5,604 10,912 10,912 Accrued interest payable Level 2 214 214 221 221 Forward sales commitment Level 2 1,188 1,188 — — |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting | |
Schedule of segment information | The following table presents segment information as of and for the three months ended March 31, 2020 and 2019 (in thousands): Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended March 31, 2020 Revenues Interest income $ 5,590 $ 109 $ (15) $ 5,684 Gain on sale of loans — 1,624 — 1,624 Other revenues 733 197 (57) 873 Total revenues 6,323 1,930 (72) 8,181 Expenses Provision for loan losses 400 — — 400 Interest expense 1,257 15 (15) 1,257 Salaries and benefits 2,208 814 — 3,022 Commissions — 437 — 437 Other expenses 1,709 276 (57) 1,928 Total operating expenses 5,574 1,542 (72) 7,044 Income before income taxes 749 388 — 1,137 Income tax expense 158 81 — 239 Net income $ 591 $ 307 $ — $ 898 Total assets $ 570,751 $ 12,433 $ (12,979) $ 570,205 Commercial Mortgage Consolidated Banking Banking Eliminations Totals Three Months Ended March 31, 2019 Revenues Interest income $ 5,646 $ 63 $ — $ 5,709 Gain on sale of loans — 928 — 928 Other revenues 774 112 (57) 829 Total revenues 6,420 1,103 (57) 7,466 Expenses Interest expense 1,243 — — 1,243 Salaries and benefits 2,200 736 — 2,936 Commissions — 239 — 239 Other expenses 1,882 238 (57) 2,063 Total operating expenses 5,325 1,213 (57) 6,481 Income before income taxes 1,095 (110) — 985 Income tax expense 199 (23) — 176 Net income $ 896 $ (87) $ — $ 809 Total assets $ 525,782 $ 9,892 $ (13,400) $ 522,274 |
Shareholders' Equity and Regu_2
Shareholders' Equity and Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Shareholders' Equity and Regulatory Matters | |
Schedule of accumulated other comprehensive income (loss) | The following table presents the cumulative balances of the components of accumulated other comprehensive income (loss), net of deferred taxes of $116,000 and $38,000 as of March 31, 2020 and December 31, 2019, respectively (in thousands): March 31, December 31, 2020 2019 Net unrealized gains on securities $ 480 $ 186 Net unrecognized losses on defined benefit plan (42) (44) Total accumulated other comprehensive income $ 438 $ 142 |
Schedule of capital amounts and ratios | The capital amounts and ratios at March 31, 2020 and December 31, 2019 for the Bank are presented in the table below (dollars in thousands): For Capital Actual Adequacy Purposes To be Well Capitalized Amount Ratio Amount Ratio Amount Ratio March 31, 2020 Total capital (to risk-weighted assets) Village Bank $ 57,746 12.62 % $ 36,620 8.00 % $ 45,775 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 54,302 11.86 % 27,465 6.00 % 36,620 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 54,302 10.10 % 21,515 4.00 % 26,894 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 54,302 11.86 % 20,599 4.50 % 29,754 6.50 % December 31, 2019 Total capital (to risk-weighted assets) Village Bank $ 54,653 12.56 % $ 34,807 8.00 % $ 43,508 10.00 % Tier 1 capital (to risk-weighted assets) Village Bank 52,867 12.15 % 26,015 6.00 % 34,807 8.00 % Leverage ratio (Tier 1 capital to average assets) Village Bank 52,867 9.69 % 21,823 4.00 % 27,278 5.00 % Common equity tier 1 (to risk-weighted assets) Village Bank 52,867 12.15 % 19,579 4.50 % 28,280 6.50 % |
Commitments and contingencies (
Commitments and contingencies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and contingencies | |
Schedule of off balance sheet financial instruments | At March 31, 2020 and December 31, 2019, the Company had outstanding the following approximate off-balance-sheet financial instruments whose contract amounts represent credit risk (in thousands): March 31, December 31, 2020 2019 Undisbursed credit lines $ 93,097 $ 83,366 Commitments to extend or originate credit 37,590 15,722 Standby letters of credit 7,007 6,732 Total commitments to extend credit $ 137,694 $ 105,820 |
Earnings per common share (Deta
Earnings per common share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator | ||
Net income - basic and diluted | $ 898 | $ 809 |
Denominator | ||
Weighted average shares outstanding - basic (in shares) | 1,454 | 1,435 |
Dilutive effect of common stock options (in shares) | 0 | 0 |
Weighted average shares outstanding - diluted (in shares) | 1,454 | 1,435 |
Earnings per share - basic (in dollars per share) | $ 0.62 | $ 0.56 |
Earnings per share - diluted (in dollars per share) | $ 0.62 | $ 0.56 |
Earnings per common share - Add
Earnings per common share - Additional Information (Details) - shares | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 0 | 0 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 4,155 | 8,650 |
Stock Option [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount | 514 | 578 |
Investment securities availab_3
Investment securities available for sale - Amortized cost and fair value of investment securities (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 38,474 | $ 46,700 |
Gross Unrealized Gains | 828 | 352 |
Gross Unrealized Losses | (221) | (115) |
Fair Value | 39,081 | 46,937 |
U.S. Government Agencies Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 12,706 | 14,797 |
Gross Unrealized Gains | 154 | 57 |
Gross Unrealized Losses | (3) | (9) |
Fair Value | 12,857 | 14,845 |
Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 17,989 | 25,124 |
Gross Unrealized Gains | 631 | 204 |
Gross Unrealized Losses | (26) | |
Fair Value | 18,620 | 25,302 |
Subordinated Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 7,779 | 6,779 |
Gross Unrealized Gains | 43 | 91 |
Gross Unrealized Losses | (218) | (80) |
Fair Value | $ 7,604 | $ 6,790 |
Investment securities availab_4
Investment securities available for sale - Summary of gross realized gains and losses to available for sale securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Investment securities available for sale | ||
Gross realized gains | $ 39 | $ 101 |
Gross realized losses | (27) | 0 |
Available-for-sale Securities, Gross Realized Gain (Loss), Total | $ 12 | $ 101 |
Investment securities availab_5
Investment securities available for sale - Summary of investment securities available for sale having fair value and unrealized loss position (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | $ 4,344,000 | $ 5,507,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (136,000) | (33,000) |
Securities in a loss position for more than 12 Months, Fair Value | 1,619,000 | 6,308,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (85,000) | (82,000) |
Total Fair Value | 5,963,000 | 11,815,000 |
Total Unrealized Losses | (221,000) | (115,000) |
U.S. Government Agencies Obligations [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 0 | 2,001,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | 0 | (1,000) |
Securities in a loss position for more than 12 Months, Fair Value | 1,201,000 | 5,368,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (3,000) | (8,000) |
Total Fair Value | 1,201,000 | 7,369,000 |
Total Unrealized Losses | (3,000) | (9,000) |
Mortgage Backed Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 2,747,000 | |
Securities in a loss position for less than 12 Months, Unrealized Losses | (26,000) | |
Securities in a loss position for more than 12 Months, Fair Value | 0 | |
Securities in a loss Position for more than 12 Months, Unrealized Losses | 0 | |
Total Fair Value | 2,747,000 | |
Total Unrealized Losses | (26,000) | |
Subordinated Debt [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Securities in a loss position for less than 12 Months, Fair Value | 4,344,000 | 759,000 |
Securities in a loss position for less than 12 Months, Unrealized Losses | (136,000) | (6,000) |
Securities in a loss position for more than 12 Months, Fair Value | 418,000 | 940,000 |
Securities in a loss Position for more than 12 Months, Unrealized Losses | (82,000) | (74,000) |
Total Fair Value | 4,762,000 | 1,699,000 |
Total Unrealized Losses | $ (218,000) | $ (80,000) |
Investment securities availab_6
Investment securities available for sale - Summary of amortized cost and estimated fair value of investment securities available for sale (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Amortized Cost | ||
Less than one year | $ 6,208 | |
One to five years | 4,489 | |
Five to ten years | 10,114 | |
More than ten years | 17,663 | |
Total | 38,474 | |
Fair Value | ||
Less than one year | 6,257 | |
One to five years | 4,557 | |
Five to ten years | 9,989 | |
More than ten years | 18,278 | |
Total | $ 39,081 | $ 46,937 |
Investment securities availab_7
Investment securities available for sale - Additional Information (Details) | 3 Months Ended | ||
Mar. 31, 2020USD ($)item | Mar. 31, 2019USD ($) | Dec. 31, 2019USD ($) | |
Schedule of Available-for-sale Securities [Line Items] | |||
Proceeds from Sale of Available-for-sale Securities, Debt | $ 7,936,000 | $ 6,491,000 | |
Available-for-sale Securities, Gross Realized Gain (Loss) | 12,000 | $ 101,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,619,000 | $ 6,308,000 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | $ 85,000 | 82,000 | |
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions | item | 6 | ||
Investment Pledged As Security For Debt [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Pledged Financial Instruments, Not Separately Reported, Securities for Federal Home Loan Bank | $ 6,196,000 | $ 0 |
Loans and allowance for loan _3
Loans and allowance for loan losses - Classified by type (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 435,234 | $ 429,295 | ||
Deferred fees and costs, net | 704 | 764 | ||
Less: allowance for loan losses | (3,444) | (3,186) | $ (3,027) | $ (3,051) |
Total loans, net | $ 432,494 | $ 426,873 | ||
Percentage of class of loans to loan portfolio (in percent) | 100.00% | 100.00% | ||
Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 232,684 | $ 228,349 | ||
Less: allowance for loan losses | $ (1,986) | $ (1,589) | (1,492) | (1,435) |
Percentage of class of loans to loan portfolio (in percent) | 53.46% | 53.19% | ||
Home equity lines [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 20,590 | $ 21,509 | ||
Less: allowance for loan losses | (40) | (271) | (240) | (244) |
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 24,027 | 24,063 | ||
Less: allowance for loan losses | (270) | (137) | (173) | (220) |
Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 8,143 | 7,887 | ||
Less: allowance for loan losses | (219) | (48) | (46) | (42) |
Construction And Land Development Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 32,170 | 31,950 | ||
Less: allowance for loan losses | (489) | (185) | (219) | (262) |
Construction And Land Development [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 32,170 | $ 31,950 | ||
Percentage of class of loans to loan portfolio (in percent) | 7.39% | 7.44% | ||
Construction And Land Development [Member] | Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 8,143 | $ 7,887 | ||
Percentage of class of loans to loan portfolio (in percent) | 1.87% | 1.84% | ||
Construction And Land Development [Member] | Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 24,027 | $ 24,063 | ||
Percentage of class of loans to loan portfolio (in percent) | 5.52% | 5.60% | ||
Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 103,210 | $ 98,353 | ||
Less: allowance for loan losses | (859) | (671) | (710) | (673) |
Owner Occupied [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 103,210 | $ 98,353 | ||
Percentage of class of loans to loan portfolio (in percent) | 23.71% | 22.91% | ||
Non-Owner Occupied [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 115,278 | $ 116,508 | ||
Less: allowance for loan losses | (1,058) | (831) | (692) | (673) |
Non-Owner Occupied [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 115,278 | $ 116,508 | ||
Percentage of class of loans to loan portfolio (in percent) | 26.49% | 27.14% | ||
Multifamily [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 14,046 | $ 13,332 | ||
Less: allowance for loan losses | (68) | (85) | (88) | (87) |
Multifamily [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 14,046 | $ 13,332 | ||
Percentage of class of loans to loan portfolio (in percent) | 3.23% | 3.10% | ||
Farmland [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 150 | $ 156 | ||
Less: allowance for loan losses | (1) | (2) | (2) | (2) |
Farmland [Member] | Commercial Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 150 | $ 156 | ||
Percentage of class of loans to loan portfolio (in percent) | 0.03% | 0.04% | ||
First Deed of Trust [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 57,352 | $ 55,856 | ||
Less: allowance for loan losses | $ (157) | $ (343) | (395) | (385) |
Percentage of class of loans to loan portfolio (in percent) | 13.18% | 13.01% | ||
Second Deed of Trust [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 11,348 | $ 10,411 | ||
Less: allowance for loan losses | $ (76) | $ (64) | (57) | (51) |
Percentage of class of loans to loan portfolio (in percent) | 2.61% | 2.43% | ||
Commercial and industrial loans (except those secured by real estate) | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 45,838 | $ 45,074 | ||
Less: allowance for loan losses | $ (409) | $ (572) | (352) | (308) |
Percentage of class of loans to loan portfolio (in percent) | 10.53% | 10.50% | ||
Guaranteed student loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 32,251 | $ 33,525 | ||
Less: allowance for loan losses | $ (104) | $ (108) | (121) | (121) |
Percentage of class of loans to loan portfolio (in percent) | 7.41% | 7.81% | ||
Consumer And Other [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 3,001 | $ 2,621 | ||
Less: allowance for loan losses | $ (41) | $ (30) | (30) | (34) |
Percentage of class of loans to loan portfolio (in percent) | 0.69% | 0.60% | ||
Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 8,143 | $ 7,887 | ||
Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 24,027 | 24,063 | ||
Consumer Real Estate [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | 89,290 | 87,776 | ||
Less: allowance for loan losses | $ (273) | $ (678) | $ (692) | $ (680) |
Percentage of class of loans to loan portfolio (in percent) | 20.52% | 20.45% | ||
Consumer Real Estate [Member] | Home equity lines [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Total loans | $ 20,590 | $ 21,509 | ||
Percentage of class of loans to loan portfolio (in percent) | 4.73% | 5.01% |
Loans and allowance for loan _4
Loans and allowance for loan losses - Information on nonaccrual loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 1,317 | $ 1,868 |
Commercial Real Estate [Member] | Home equity lines [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 300 | 300 |
Commercial Real Estate Non-Owner Occupied [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 497 | |
Owner Occupied [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 497 | |
Consumer Real Estate Secured By 1-4 Family Residential [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 1,107 | 1,205 |
First Deed of Trust [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 745 | 842 |
Second Deed of Trust [Member] | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | 62 | 63 |
Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 210 | $ 166 |
Loans and allowance for loan _5
Loans and allowance for loan losses - Information on the risk rating of loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 435,234 | $ 429,295 |
Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,143 | 7,887 |
Construction And Land Development Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,170 | 31,950 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,170 | 31,950 |
Construction And Land Development [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,143 | 7,887 |
Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,143 | 7,887 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 24,027 | 24,063 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 232,684 | 228,349 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 103,210 | 98,353 |
Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 115,278 | 116,508 |
Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 14,046 | 13,332 |
Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 150 | 156 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 89,290 | 87,776 |
Home equity lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 20,590 | 21,509 |
First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 57,352 | 55,856 |
Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,348 | 10,411 |
Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 45,838 | 45,074 |
Guaranteed student loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,251 | 33,525 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 3,001 | 2,621 |
Risk Rated 1-4 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 416,928 | 412,628 |
Risk Rated 1-4 [Member] | Construction And Land Development Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 31,367 | 31,645 |
Risk Rated 1-4 [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 7,825 | 7,887 |
Risk Rated 1-4 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 23,542 | 23,758 |
Risk Rated 1-4 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 220,975 | 219,184 |
Risk Rated 1-4 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 92,362 | 90,146 |
Risk Rated 1-4 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 114,560 | 115,781 |
Risk Rated 1-4 [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,903 | 13,186 |
Risk Rated 1-4 [Member] | Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 150 | 71 |
Risk Rated 1-4 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 85,355 | 83,816 |
Risk Rated 1-4 [Member] | Home equity lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 19,585 | 20,486 |
Risk Rated 1-4 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 54,634 | 53,200 |
Risk Rated 1-4 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 11,136 | 10,130 |
Risk Rated 1-4 [Member] | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 44,026 | 41,837 |
Risk Rated 1-4 [Member] | Guaranteed student loans [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 32,251 | 33,525 |
Risk Rated 1-4 [Member] | Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,954 | 2,621 |
Risk Rated 5 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13,291 | 13,974 |
Risk Rated 5 [Member] | Construction And Land Development Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 503 | |
Risk Rated 5 [Member] | Residential [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 318 | |
Risk Rated 5 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 185 | |
Risk Rated 5 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 9,128 | 8,533 |
Risk Rated 5 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 8,759 | 8,072 |
Risk Rated 5 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 226 | 230 |
Risk Rated 5 [Member] | Multifamily [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 143 | 146 |
Risk Rated 5 [Member] | Farmland [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 85 | |
Risk Rated 5 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,312 | 2,550 |
Risk Rated 5 [Member] | Home equity lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 705 | 723 |
Risk Rated 5 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,594 | 1,660 |
Risk Rated 5 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 13 | 167 |
Risk Rated 5 [Member] | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,301 | 2,891 |
Risk Rated 5 [Member] | Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 47 | |
Risk Rate 6 [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 5,015 | 2,693 |
Risk Rate 6 [Member] | Construction And Land Development Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300 | 305 |
Risk Rate 6 [Member] | Commercial [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300 | 305 |
Risk Rate 6 [Member] | Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,581 | 632 |
Risk Rate 6 [Member] | Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 2,089 | 135 |
Risk Rate 6 [Member] | Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 492 | 497 |
Risk Rate 6 [Member] | Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,623 | 1,410 |
Risk Rate 6 [Member] | Home equity lines [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 300 | 300 |
Risk Rate 6 [Member] | First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 1,124 | 996 |
Risk Rate 6 [Member] | Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | 199 | 114 |
Risk Rate 6 [Member] | Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total loans | $ 511 | $ 346 |
Loans and allowance for loan _6
Loans and allowance for loan losses - Recorded investment in past due loans and leases (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 7,565 | $ 7,523 |
Current | 427,669 | 421,772 |
Total loans | 435,234 | 429,295 |
Recorded Investment, 90 Days and Accruing | 2,765 | 2,567 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 3,500 | 3,647 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,300 | 1,309 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,765 | 2,567 |
Construction And Land Development Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 32,170 | 31,950 |
Total loans | 32,170 | 31,950 |
Construction And Land Development [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total loans | 32,170 | 31,950 |
Residential [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 8,143 | 7,887 |
Total loans | 8,143 | 7,887 |
Commercial [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 24,027 | 24,063 |
Total loans | 24,027 | 24,063 |
Commercial Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 758 | 701 |
Current | 231,926 | 227,648 |
Total loans | 232,684 | 228,349 |
Commercial Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 758 | 701 |
Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 758 | 701 |
Current | 102,452 | 97,652 |
Total loans | 103,210 | 98,353 |
Owner Occupied [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 758 | 701 |
Non-Owner Occupied [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 115,278 | 116,508 |
Total loans | 115,278 | 116,508 |
Multifamily [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 14,046 | 13,332 |
Total loans | 14,046 | 13,332 |
Farmland [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Current | 150 | 156 |
Total loans | 150 | 156 |
Consumer Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 613 | 475 |
Current | 88,677 | 87,301 |
Total loans | 89,290 | 87,776 |
Consumer Real Estate [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 396 | 475 |
Consumer Real Estate [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 217 | |
Home equity lines [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 120 | 52 |
Current | 20,470 | 21,457 |
Total loans | 20,590 | 21,509 |
Home equity lines [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 120 | 52 |
First Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 444 | 290 |
Current | 56,908 | 55,566 |
Total loans | 57,352 | 55,856 |
First Deed of Trust [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 227 | 290 |
First Deed of Trust [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 217 | |
Second Deed of Trust [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 49 | 133 |
Current | 11,299 | 10,278 |
Total loans | 11,348 | 10,411 |
Second Deed of Trust [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 49 | 133 |
Commercial and industrial loans (except those secured by real estate) | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 844 | 773 |
Current | 44,994 | 44,301 |
Total loans | 45,838 | 45,074 |
Commercial and industrial loans (except those secured by real estate) | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 417 | 773 |
Commercial and industrial loans (except those secured by real estate) | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 427 | |
Guaranteed student loans [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 5,346 | 5,570 |
Current | 26,905 | 27,955 |
Total loans | 32,251 | 33,525 |
Recorded Investment, 90 Days and Accruing | 2,765 | 2,567 |
Guaranteed student loans [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 1,929 | 1,694 |
Guaranteed student loans [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 652 | 1,309 |
Guaranteed student loans [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 2,765 | 2,567 |
Consumer And Other [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | 4 | 4 |
Current | 2,997 | 2,617 |
Total loans | 3,001 | 2,621 |
Consumer And Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 4 | |
Consumer And Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Financing Receivable, Recorded Investment, Past Due | $ 4 |
Loans and allowance for loan _7
Loans and allowance for loan losses - Impaired loans (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
With no related allowance recorded | ||
Recorded Investment | $ 8,503 | $ 7,745 |
Unpaid Principal Balance | 8,726 | 8,152 |
With an allowance recorded | ||
Recorded Investment | 1,660 | 1,627 |
Unpaid Principal Balance | 1,822 | 1,826 |
Related Allowance | 70 | 159 |
Total | ||
Recorded Investment | 10,163 | 9,372 |
Unpaid Principal Balance | 10,548 | 9,978 |
Related Allowance | 70 | 159 |
Commercial [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 300 | 337 |
Unpaid Principal Balance | 300 | 337 |
Total | ||
Recorded Investment | 300 | 337 |
Unpaid Principal Balance | 300 | 337 |
Construction And Land Development Commercial [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 300 | 337 |
Unpaid Principal Balance | 300 | 337 |
Total | ||
Recorded Investment | 300 | 337 |
Unpaid Principal Balance | 300 | 337 |
Owner Occupied [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 2,582 | 2,089 |
Unpaid Principal Balance | 2,597 | 2,104 |
With an allowance recorded | ||
Recorded Investment | 1,403 | 1,414 |
Unpaid Principal Balance | 1,403 | 1,414 |
Related Allowance | 13 | 15 |
Total | ||
Recorded Investment | 3,985 | 3,503 |
Unpaid Principal Balance | 4,000 | 3,518 |
Related Allowance | 13 | 15 |
Non-Owner Occupied [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 2,128 | 2,304 |
Unpaid Principal Balance | 2,128 | 2,304 |
Total | ||
Recorded Investment | 2,128 | 2,304 |
Unpaid Principal Balance | 2,128 | 2,304 |
Commercial Real Estate [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 4,710 | 4,393 |
Unpaid Principal Balance | 4,725 | 4,408 |
With an allowance recorded | ||
Recorded Investment | 1,403 | 1,414 |
Unpaid Principal Balance | 1,403 | 1,414 |
Related Allowance | 13 | 15 |
Total | ||
Recorded Investment | 6,113 | 5,807 |
Unpaid Principal Balance | 6,128 | 5,822 |
Related Allowance | 13 | 15 |
Home equity lines [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 300 | 300 |
Unpaid Principal Balance | 300 | 300 |
Total | ||
Recorded Investment | 300 | 300 |
Unpaid Principal Balance | 300 | 300 |
First Deed of Trust [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 2,128 | 1,752 |
Unpaid Principal Balance | 2,128 | 1,774 |
With an allowance recorded | ||
Recorded Investment | 77 | 78 |
Unpaid Principal Balance | 77 | 78 |
Related Allowance | 9 | 9 |
Total | ||
Recorded Investment | 2,205 | 1,830 |
Unpaid Principal Balance | 2,205 | 1,852 |
Related Allowance | 9 | 9 |
Second Deed of Trust [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 904 | 752 |
Unpaid Principal Balance | 1,112 | 960 |
Total | ||
Recorded Investment | 904 | 752 |
Unpaid Principal Balance | 1,112 | 960 |
Consumer Real Estate [Member] | ||
With no related allowance recorded | ||
Recorded Investment | 3,332 | 2,804 |
Unpaid Principal Balance | 3,540 | 3,034 |
With an allowance recorded | ||
Recorded Investment | 77 | 78 |
Unpaid Principal Balance | 77 | 78 |
Related Allowance | 9 | 9 |
Total | ||
Recorded Investment | 3,409 | 2,882 |
Unpaid Principal Balance | 3,617 | 3,112 |
Related Allowance | 9 | 9 |
Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Recorded Investment | 161 | 211 |
Unpaid Principal Balance | 161 | 373 |
With an allowance recorded | ||
Recorded Investment | 180 | 135 |
Unpaid Principal Balance | 342 | 334 |
Related Allowance | 48 | 135 |
Total | ||
Recorded Investment | 341 | 346 |
Unpaid Principal Balance | 503 | 707 |
Related Allowance | $ 48 | $ 135 |
Loans and allowance for loan _8
Loans and allowance for loan losses - Average recorded investment in impaired loans (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
With no related allowance recorded | ||
Average Recorded Investment | $ 9,157 | $ 11,503 |
Interest Income Recognized | 98 | 128 |
With an allowance recorded | ||
Average Recorded Investment | 1,800 | 2,101 |
Interest Income Recognized | 22 | 20 |
Total | ||
Average Recorded Investment | 10,957 | 13,604 |
Interest Income Recognized | 120 | 148 |
Construction And Land Development Commercial [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 315 | 742 |
Total | ||
Average Recorded Investment | 315 | 768 |
Commercial [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 315 | 475 |
With an allowance recorded | ||
Average Recorded Investment | 26 | |
Total | ||
Average Recorded Investment | 315 | 501 |
Residential [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 267 | |
Total | ||
Average Recorded Investment | 267 | |
Commercial Real Estate [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 5,020 | 6,057 |
Interest Income Recognized | 61 | 65 |
With an allowance recorded | ||
Average Recorded Investment | 1,420 | 1,461 |
Interest Income Recognized | 15 | 15 |
Total | ||
Average Recorded Investment | 6,440 | 7,518 |
Interest Income Recognized | 76 | 80 |
Owner Occupied [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 2,696 | 3,460 |
Interest Income Recognized | 29 | 42 |
With an allowance recorded | ||
Average Recorded Investment | 1,420 | 1,461 |
Interest Income Recognized | 15 | 15 |
Total | ||
Average Recorded Investment | 4,116 | 4,921 |
Interest Income Recognized | 44 | 57 |
Non-Owner Occupied [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 2,324 | 2,597 |
Interest Income Recognized | 32 | 23 |
Total | ||
Average Recorded Investment | 2,324 | 2,597 |
Interest Income Recognized | 32 | 23 |
Home equity lines [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 363 | 550 |
Interest Income Recognized | 4 | |
With an allowance recorded | ||
Average Recorded Investment | 550 | |
Total | ||
Average Recorded Investment | 363 | |
Interest Income Recognized | 4 | |
First Deed of Trust [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 2,072 | 2,972 |
Interest Income Recognized | 19 | 42 |
With an allowance recorded | ||
Average Recorded Investment | 136 | 262 |
Interest Income Recognized | 1 | 3 |
Total | ||
Average Recorded Investment | 2,208 | 3,234 |
Interest Income Recognized | 20 | 45 |
Second Deed of Trust [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 740 | 704 |
Interest Income Recognized | 14 | 13 |
With an allowance recorded | ||
Average Recorded Investment | 78 | 162 |
Interest Income Recognized | 2 | |
Total | ||
Average Recorded Investment | 818 | 866 |
Interest Income Recognized | 14 | 15 |
Consumer Real Estate [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 3,175 | 4,226 |
Interest Income Recognized | 37 | 55 |
With an allowance recorded | ||
Average Recorded Investment | 214 | 424 |
Interest Income Recognized | 1 | 5 |
Total | ||
Average Recorded Investment | 3,389 | 4,650 |
Interest Income Recognized | 38 | 60 |
Commercial and industrial loans (except those secured by real estate) | ||
With no related allowance recorded | ||
Average Recorded Investment | 646 | 477 |
Interest Income Recognized | 8 | |
With an allowance recorded | ||
Average Recorded Investment | 162 | 176 |
Interest Income Recognized | 6 | |
Total | ||
Average Recorded Investment | 808 | 653 |
Interest Income Recognized | 6 | 8 |
Consumer And Other [Member] | ||
With no related allowance recorded | ||
Average Recorded Investment | 1 | 1 |
With an allowance recorded | ||
Average Recorded Investment | 4 | 14 |
Total | ||
Average Recorded Investment | $ 5 | $ 15 |
Loans and allowance for loan _9
Loans and allowance for loan losses - Nonaccrual TDRs and the related specific valuation allowance by portfolio segment (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($)item | Mar. 31, 2019item | Dec. 31, 2019USD ($)item | |
Portfolio Segment [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 8,246 | $ 8,410 | |
Number of Loans | item | 37 | 38 | |
Owner Occupied [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 3,462 | $ 3,502 | |
Non-Owner Occupied [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 2,128 | 2,304 | |
Number of Loans | item | 1 | ||
Consumer Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 2,446 | 2,393 | |
First Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 1,630 | 1,641 | |
Second Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 816 | 752 | |
Commercial and industrial loans (except those secured by real estate) | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 210 | 211 | |
Commercial Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 5,590 | 5,806 | |
Specific Valuation Allowance [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 70 | $ 24 | |
Number of Loans | item | 4 | 3 | |
Specific Valuation Allowance [Member] | Owner Occupied [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 13 | $ 15 | |
Specific Valuation Allowance [Member] | Consumer Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 9 | 9 | |
Specific Valuation Allowance [Member] | First Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 9 | 9 | |
Specific Valuation Allowance [Member] | Commercial and industrial loans (except those secured by real estate) | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 48 | ||
Specific Valuation Allowance [Member] | Commercial Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 13 | 15 | |
Performing Financing Receivable [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 7,472 | $ 7,059 | |
Number of Loans | item | 28 | 29 | |
Performing Financing Receivable [Member] | Owner Occupied [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 3,462 | $ 3,502 | |
Performing Financing Receivable [Member] | Non-Owner Occupied [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 2,128 | 1,807 | |
Performing Financing Receivable [Member] | Consumer Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 1,882 | 1,570 | |
Performing Financing Receivable [Member] | First Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 1,128 | 881 | |
Performing Financing Receivable [Member] | Second Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 754 | 689 | |
Performing Financing Receivable [Member] | Commercial and industrial loans (except those secured by real estate) | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 180 | ||
Performing Financing Receivable [Member] | Commercial Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 5,590 | 5,309 | |
Nonperforming Financial Instruments [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 774 | $ 1,351 | |
Number of Loans | item | 9 | 9 | |
Nonperforming Financial Instruments [Member] | Non-Owner Occupied [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 497 | ||
Nonperforming Financial Instruments [Member] | Consumer Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 564 | 823 | |
Nonperforming Financial Instruments [Member] | First Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 502 | 760 | |
Nonperforming Financial Instruments [Member] | Second Deed of Trust [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | 62 | 63 | |
Nonperforming Financial Instruments [Member] | Commercial and industrial loans (except those secured by real estate) | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 210 | 31 | |
Nonperforming Financial Instruments [Member] | Commercial Real Estate [Member] | |||
Information concerning Troubled Debt Restructurings | |||
Recorded Investment | $ 497 |
Loans and allowance for loan_10
Loans and allowance for loan losses - Information about TDRs (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2019USD ($)item | |
Secured by 1-4 family residential [Member] | |
Information About Tdrs Identified During Period Line Items [Line Items] | |
Number of Loans | item | 1 |
Pre-Modification Recorded Investment | $ 515 |
Post-Modification Recorded Investment | $ 515 |
Non-Owner Occupied [Member] | |
Information About Tdrs Identified During Period Line Items [Line Items] | |
Number of Loans | item | 1 |
Pre-Modification Recorded Investment | $ 515 |
Post-Modification Recorded Investment | $ 515 |
Loans and allowance for loan_11
Loans and allowance for loan losses - Allowance for loan losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | $ 3,186 | $ 3,051 | $ 3,051 |
Provision for (Recovery of) Loan Losses | 400 | 177 | 135 |
Charge-offs | (156) | (50) | (218) |
Recoveries | 14 | 26 | 218 |
Ending Balance | 3,444 | 3,027 | 3,186 |
Residential [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 48 | 42 | 42 |
Provision for (Recovery of) Loan Losses | 170 | 3 | (1) |
Recoveries | 1 | 1 | 7 |
Ending Balance | 219 | 46 | 48 |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 137 | 220 | 220 |
Provision for (Recovery of) Loan Losses | 133 | (48) | (85) |
Recoveries | 1 | 2 | |
Ending Balance | 270 | 173 | 137 |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 1,589 | 1,435 | 1,435 |
Provision for (Recovery of) Loan Losses | 397 | 57 | 154 |
Ending Balance | 1,986 | 1,492 | 1,589 |
Home equity lines [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 271 | 244 | 244 |
Provision for (Recovery of) Loan Losses | (231) | (10) | 50 |
Charge-offs | (35) | ||
Recoveries | 6 | 12 | |
Ending Balance | 40 | 240 | 271 |
Construction And Land Development Commercial [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 185 | 262 | 262 |
Provision for (Recovery of) Loan Losses | 303 | (45) | (86) |
Recoveries | 1 | 2 | 9 |
Ending Balance | 489 | 219 | 185 |
Owner Occupied [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 671 | 673 | 673 |
Provision for (Recovery of) Loan Losses | 188 | 37 | (2) |
Ending Balance | 859 | 710 | 671 |
Non-Owner Occupied [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 831 | 673 | 673 |
Provision for (Recovery of) Loan Losses | 227 | 19 | 158 |
Ending Balance | 1,058 | 692 | 831 |
Multifamily [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 85 | 87 | 87 |
Provision for (Recovery of) Loan Losses | (17) | 1 | (2) |
Ending Balance | 68 | 88 | 85 |
Farmland [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 2 | 2 | 2 |
Provision for (Recovery of) Loan Losses | (1) | ||
Ending Balance | 1 | 2 | 2 |
First Deed of Trust [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 343 | 385 | 385 |
Provision for (Recovery of) Loan Losses | (189) | 8 | (56) |
Recoveries | 3 | 2 | 14 |
Ending Balance | 157 | 395 | 343 |
Second Deed of Trust [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 64 | 51 | 51 |
Provision for (Recovery of) Loan Losses | 8 | 2 | (56) |
Recoveries | 4 | 4 | 69 |
Ending Balance | 76 | 57 | 64 |
Consumer Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 678 | 680 | 680 |
Provision for (Recovery of) Loan Losses | (412) | (62) | |
Charge-offs | (35) | ||
Recoveries | 7 | 12 | 95 |
Ending Balance | 273 | 692 | 678 |
Commercial and industrial loans (except those secured by real estate) | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 572 | 308 | 308 |
Provision for (Recovery of) Loan Losses | (31) | 48 | 239 |
Charge-offs | (135) | (15) | (64) |
Recoveries | 3 | 11 | 89 |
Ending Balance | 409 | 352 | 572 |
Guaranteed student loans [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 108 | 121 | 121 |
Provision for (Recovery of) Loan Losses | 16 | 33 | 80 |
Charge-offs | (20) | (33) | (93) |
Ending Balance | 104 | 121 | 108 |
Consumer And Other [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 30 | 34 | 34 |
Provision for (Recovery of) Loan Losses | 9 | (3) | (3) |
Charge-offs | (1) | (2) | (26) |
Recoveries | 3 | 1 | 25 |
Ending Balance | 41 | 30 | 30 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Losses [Line Items] | |||
Beginning Balance | 24 | 211 | 211 |
Provision for (Recovery of) Loan Losses | 118 | (90) | (187) |
Ending Balance | $ 142 | $ 121 | $ 24 |
Loans and allowance for loan_12
Loans and allowance for loan losses - Loans evaluated for impairment (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | $ 3,444 | $ 3,186 | $ 3,027 | $ 3,051 |
Allowance Individually Evaluated for Impairment | 70 | 159 | ||
Allowance Collectively Evaluated for Impairment | 3,374 | 3,027 | ||
Loans Ending Balance | 435,234 | 429,295 | ||
Loans Individually Evaluated for Impairment | 10,163 | 9,372 | ||
Loans Collectively Evaluated for Impairment | 425,071 | 419,923 | ||
Residential [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 219 | 48 | 46 | 42 |
Allowance Collectively Evaluated for Impairment | 219 | 48 | ||
Loans Ending Balance | 8,143 | 7,887 | ||
Loans Collectively Evaluated for Impairment | 8,143 | 7,887 | ||
Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 270 | 137 | 173 | 220 |
Allowance Collectively Evaluated for Impairment | 270 | 137 | ||
Loans Ending Balance | 24,027 | 24,063 | ||
Loans Individually Evaluated for Impairment | 300 | 337 | ||
Loans Collectively Evaluated for Impairment | 23,727 | 23,726 | ||
Commercial Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 1,986 | 1,589 | 1,492 | 1,435 |
Allowance Individually Evaluated for Impairment | 13 | 15 | ||
Allowance Collectively Evaluated for Impairment | 1,973 | 1,574 | ||
Loans Ending Balance | 232,684 | 228,349 | ||
Loans Individually Evaluated for Impairment | 6,113 | 5,807 | ||
Loans Collectively Evaluated for Impairment | 226,571 | 222,542 | ||
Home equity lines [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 40 | 271 | $ 240 | $ 244 |
Allowance Collectively Evaluated for Impairment | 40 | 271 | ||
Loans Ending Balance | 20,590 | 21,509 | ||
Loans Individually Evaluated for Impairment | 300 | 300 | ||
Loans Collectively Evaluated for Impairment | 20,290 | 21,209 | ||
Owner Occupied [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 859 | 671 | ||
Allowance Individually Evaluated for Impairment | 13 | 15 | ||
Allowance Collectively Evaluated for Impairment | 846 | 656 | ||
Loans Ending Balance | 103,210 | 98,353 | ||
Loans Individually Evaluated for Impairment | 3,985 | 3,503 | ||
Loans Collectively Evaluated for Impairment | 99,225 | 94,850 | ||
Non-Owner Occupied [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 1,058 | 831 | ||
Allowance Collectively Evaluated for Impairment | 1,058 | 831 | ||
Loans Ending Balance | 115,278 | 116,508 | ||
Loans Individually Evaluated for Impairment | 2,128 | 2,304 | ||
Loans Collectively Evaluated for Impairment | 113,150 | 114,204 | ||
Multifamily [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 68 | 85 | ||
Allowance Collectively Evaluated for Impairment | 68 | 85 | ||
Loans Ending Balance | 14,046 | 13,332 | ||
Loans Collectively Evaluated for Impairment | 14,046 | 13,332 | ||
Farmland [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 1 | 2 | ||
Allowance Collectively Evaluated for Impairment | 1 | 2 | ||
Loans Ending Balance | 150 | 156 | ||
Loans Collectively Evaluated for Impairment | 150 | 156 | ||
First Deed of Trust [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 157 | 343 | ||
Allowance Individually Evaluated for Impairment | 9 | 9 | ||
Allowance Collectively Evaluated for Impairment | 148 | 334 | ||
Loans Ending Balance | 57,352 | 55,856 | ||
Loans Individually Evaluated for Impairment | 2,205 | 1,830 | ||
Loans Collectively Evaluated for Impairment | 55,147 | 54,026 | ||
Second Deed of Trust [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 76 | 64 | ||
Allowance Collectively Evaluated for Impairment | 76 | 64 | ||
Loans Ending Balance | 11,348 | 10,411 | ||
Loans Individually Evaluated for Impairment | 904 | 752 | ||
Loans Collectively Evaluated for Impairment | 10,444 | 9,659 | ||
Consumer Real Estate [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 273 | 678 | ||
Allowance Individually Evaluated for Impairment | 9 | 9 | ||
Allowance Collectively Evaluated for Impairment | 264 | 669 | ||
Loans Ending Balance | 89,290 | 87,776 | ||
Loans Individually Evaluated for Impairment | 3,409 | 2,882 | ||
Loans Collectively Evaluated for Impairment | 85,881 | 84,894 | ||
Commercial and industrial loans (except those secured by real estate) | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 409 | 572 | ||
Allowance Individually Evaluated for Impairment | 48 | 135 | ||
Allowance Collectively Evaluated for Impairment | 361 | 437 | ||
Loans Ending Balance | 45,838 | 45,074 | ||
Loans Individually Evaluated for Impairment | 341 | 346 | ||
Loans Collectively Evaluated for Impairment | 45,497 | 44,728 | ||
Guaranteed student loans [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 104 | 108 | ||
Allowance Collectively Evaluated for Impairment | 104 | 108 | ||
Loans Ending Balance | 32,251 | 33,525 | ||
Loans Collectively Evaluated for Impairment | 32,251 | 33,525 | ||
Consumer And Other [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 183 | 54 | ||
Allowance Collectively Evaluated for Impairment | 183 | 54 | ||
Loans Ending Balance | 3,001 | 2,621 | ||
Loans Collectively Evaluated for Impairment | 3,001 | 2,621 | ||
Construction And Land Development Commercial [Member] | ||||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||||
Allowance Ending Balance | 489 | 185 | ||
Allowance Collectively Evaluated for Impairment | 489 | 185 | ||
Loans Ending Balance | 32,170 | 31,950 | ||
Loans Individually Evaluated for Impairment | 300 | 337 | ||
Loans Collectively Evaluated for Impairment | $ 31,870 | $ 31,613 |
Loans and allowance for loan_13
Loans and allowance for loan losses - Additional Information (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans Pledged as Collateral | $ 49,013,000 | $ 49,736,000 | ||
Loans and Leases Receivable, Allowance | $ 3,444,000 | $ 3,027,000 | 3,186,000 | $ 3,051,000 |
Percentage Of Recovery Loss On Portfolio From Historical Experience | 98.00% | |||
Financing Receivable, Recorded Investment, Nonaccrual Status | $ 1,317,000 | 1,868,000 | ||
Provision for loan losses | 400,000 | 0 | ||
Guaranteed student loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Allowance | $ 104,000 | 108,000 | ||
Percentage Of Recovery Loss On Portfolio From Historical Experience | 98.00% | |||
Unallocated Financing Receivable [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans and Leases Receivable, Allowance | $ 142,000 | $ 121,000 | $ 24,000 |
Deposits (Details)
Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Deposits | ||
Noninterest bearing demand | $ 139,660 | $ 131,228 |
Interest bearing | 51,008 | 48,428 |
Money market accounts | 114,461 | 99,955 |
Savings accounts | 26,618 | 26,396 |
Other time deposits | 112,561 | 114,874 |
Total | $ 468,843 | $ 443,208 |
Percentage of individual deposits to deposit liability | ||
Noninterest bearing demand (in hundredths) | 29.80% | 29.60% |
Interest bearing (in hundredths) | 10.90% | 10.90% |
Money market accounts (in hundredths) | 24.40% | 22.60% |
Savings account (in hundredths) | 5.70% | 6.00% |
Time deposits of $250,000 and over (in hundredths) | 5.20% | 5.00% |
Other time deposits (in hundredths) | 24.00% | 25.90% |
Total (in hundredths) | 100.00% | 100.00% |
Geographic Distribution, Domestic [Member] | ||
Deposits | ||
Time deposits of $250,000 and over | $ 24,535 | $ 22,327 |
Borrowings (Details)
Borrowings (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 49,000,000 | |
Federal Home Loan Bank Stock | 2,014,000 | $ 1,694,000 |
Long-term Federal Home Loan Bank Advances | 36,000,000 | $ 29,000,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Due Date | 2023 | |
Securities Sold under Agreements to Repurchase | 0 | $ 5,317,000 |
Federal Home Loan Bank Advances [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 6,200,000 | |
Revolving Credit Facility [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 10,000,000 | |
Secured Debt [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | 7,800,000 | |
Line of Credit [Member] | ||
Federal Home Loan Bank, Advances [Line Items] | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 25,000,000 |
Leases (Details)
Leases (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2020USD ($) | |
Leases | |
Lease liabilities | $ 928 |
Right-of-use assets | $ 915 |
Weighted average remaining lease term | 4 years 15 days |
Weighted average discount rate | 2.98% |
Lease cost | |
Operating lease cost | $ 107 |
Total lease cost | $ 107 |
Leases - Summary of maturity an
Leases - Summary of maturity analysis of operating lease liabilities (Details) $ in Thousands | Mar. 31, 2020USD ($) |
Lease payments due | |
Nine months ending December 31, 2020 | $ 310 |
Twelve months ending December 31, 2021 | 277 |
Twelve months ending December 31, 2022 | 120 |
Twelve months ending December 31, 2023 | 44 |
Twelve months ending December 31, 2024 | 48 |
Thereafter | 203 |
Total undiscounted cash flows | 1,002 |
Discount | 74 |
Lease liabilities | $ 928 |
Leases - Additional Information
Leases - Additional Information (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Leases | ||
Operating Lease, Expense | $ 107,000 | $ 103,000 |
Operating Lease, Payments | $ 106,000 | $ 103,000 |
Trust preferred securities (Det
Trust preferred securities (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Dec. 31, 2019 | |
Debt Instrument [Line Items] | ||
Trust preferred capital notes | $ 8,764 | $ 8,764 |
Percentage of Tier one risk based capital required for capital adequacy (in hundredths) | 25.00% | |
Southern Community Financial Capital Trust I [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes | $ 5,200 | |
Interest rate (in hundredths) | 3.25% | |
Principal assets of the trust | $ 5,200 | |
Southern Community Financial Capital Trust I [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 2.15% | |
Village Financial Statutory Trust II [Member] | ||
Debt Instrument [Line Items] | ||
Trust preferred capital notes | $ 3,600 | |
Interest rate (in hundredths) | 2.50% | |
Principal assets of the trust | $ 3,600 | |
Village Financial Statutory Trust II [Member] | LIBOR [Member] | ||
Debt Instrument [Line Items] | ||
Debt Instrument, Basis Spread on Variable Rate | 1.40% |
Subordinated Debt (Details)
Subordinated Debt (Details) - USD ($) | Mar. 21, 2018 | Mar. 31, 2018 | Mar. 31, 2020 | Dec. 31, 2019 |
Proceeds from Issuance of Subordinated Long-term Debt | $ 5,539,000 | |||
Subordinated Debt. | $ 5,604,000 | $ 5,595,000 | ||
Subordinated Debt [Member] | ||||
Debt Instrument, Face Amount | $ 5,700,000 | |||
Debt Instrument, Maturity Date | Mar. 31, 2028 | |||
Debt Instrument, Interest Rate, Stated Percentage | 6.50% | |||
Debt Instrument, Basis Spread on Variable Rate | 3.73% |
Stock incentive plan - Options
Stock incentive plan - Options outstanding under company's stock incentive plan (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Options | ||
Options outstanding, beginning of period | 734 | 734 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 0 |
Options outstanding, end of period | 734 | 734 |
Options exercisable, end of period | 734 | 734 |
Weighted Average Exercise Price | ||
Options outstanding, beginning of period | $ 25.63 | $ 25.63 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 0 |
Options outstanding, end of period | 25.63 | 25.63 |
Fair Value Per Share | ||
Options outstanding, beginning of period | 9.76 | 9.76 |
Granted | 0 | 0 |
Forfeited | 0 | 0 |
Exercised | 0 | 0 |
Options outstanding, end of period | $ 9.76 | $ 9.76 |
Intrinsic Value Options outstanding | $ 0 | $ 0 |
Stock incentive plan - Non vest
Stock incentive plan - Non vested restricted stock award (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Ending Balance | 4,155 | 8,650 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Beginning Balance | 12,310 | |
Shares, Granted | 750 | |
Shares, Vested | 0 | |
Shares, Forfeited | 0 | (2,763) |
Shares, Other | 0 | |
Ending Balance | 13,060 | 17,646 |
Weighted-Average Grant-Date Fair-Value, Beginning Balance | $ 33.83 | |
Weighted-Average Grant-Date Fair-Value, Granted | 42.99 | |
Weighted-Average Grant-Date Fair-Value, Vested | 0 | |
Weighted-Average Grant-Date Fair-Value, Forfeited | 0 | |
Weighted-Average Grant Date Fair Value, Other | 0 | |
Weighted-Average Grant-Date Fair-Value, Ending Balance | $ 34.36 | |
Aggregate Intrinsic Value, Beginning Balance | $ 311,197 | |
Aggregate Intrinsic Value, Granted | 18,960 | |
Aggregate Intrinsic Value, Vested | 0 | |
Aggregate Intrinsic Value, Forfeited | 0 | |
Aggregate Intrinsic Value, Other | 0 | |
Aggregate Intrinsic Value, Ending Balance | $ 330,157 |
Stock incentive plan - Addition
Stock incentive plan - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Allocated Share-based Compensation Expense | $ 54,000 | $ 46,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 4,155 | 8,650 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 42.99 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 346,946 | $ 354,185 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number, Beginning Balance | 13,060 | 17,646 | 12,310 |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | 2,763 | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 750 | ||
Time Based Restricted Shares [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 42.99 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Not yet Recognized, Share-based Awards Other than Options | $ 237,471 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 3 months 26 days | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Forfeited in Period | 0 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Award Vesting Period | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period | 750 |
Fair value - Recurring and non
Fair value - Recurring and non recurring basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | $ 17,219 | $ 12,722 |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Loans held for sale | 17,219 | 12,722 |
IRLC | 728 | |
Financial Liabilities-Recurring Forward Sales Commitment | 1,188 | |
Reported Value Measurement [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,590 | 1,468 |
Assets held for sale | 514 | 514 |
Other real estate owned | 526 | 526 |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government agency obligations | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Subordinated debt | 500 | 0 |
Loans held for sale | 0 | |
IRLC | 0 | |
Financial Liabilities-Recurring Forward Sales Commitment | 0 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government agency obligations | 12,857 | 14,845 |
Mortgage-backed securities | 18,620 | 25,302 |
Subordinated debt | 7,104 | 6,540 |
Loans held for sale | 17,219 | |
IRLC | 728 | |
Financial Liabilities-Recurring Forward Sales Commitment | 1,188 | |
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government agency obligations | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Subordinated debt | 0 | 250 |
Loans held for sale | 0 | |
IRLC | 0 | |
Financial Liabilities-Recurring Forward Sales Commitment | 0 | |
Fair Value, Measurements, Recurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
U.S. Government agency obligations | 12,857 | 14,845 |
Mortgage-backed securities | 18,620 | 25,302 |
Subordinated debt | 7,604 | 6,790 |
Loans held for sale | 17,219 | |
IRLC | 728 | |
Financial Liabilities-Recurring Forward Sales Commitment | 1,188 | |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Assets held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Assets held for sale | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,590 | 1,468 |
Assets held for sale | 514 | 514 |
Other real estate owned | 526 | 526 |
Fair Value, Measurements, Nonrecurring [Member] | Reported Value Measurement [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 1,590 | 1,468 |
Assets held for sale | 514 | 514 |
Other real estate owned | $ 526 | $ 526 |
Fair value - Financial instrume
Fair value - Financial instruments measured at fair value (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2020 | Dec. 31, 2019 | |
Impaired Loans Real Estate Secured [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 1,590 | $ 1,468 |
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 6.00% | 6.00% |
Discount for lack of marketability and age of appraisal | 6.00% | 6.00% |
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 10.00% | 10.00% |
Discount for lack of marketability and age of appraisal | 30.00% | 30.00% |
Impaired Loans Real Estate Secured [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 7.00% | 7.00% |
Discount for lack of marketability and age of appraisal | 10.00% | 10.00% |
Asset Held For Sale [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 514 | $ 514 |
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 6.00% | 6.00% |
Discount for lack of marketability and age of appraisal | 6.00% | 6.00% |
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 10.00% | 10.00% |
Discount for lack of marketability and age of appraisal | 30.00% | 30.00% |
Asset Held For Sale [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 7.00% | 7.00% |
Discount for lack of marketability and age of appraisal | 15.00% | 15.00% |
Other Real Estate Owned [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets, Fair Value Disclosure | $ 526 | $ 526 |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 6.00% | 6.00% |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 10.00% | 10.00% |
Other Real Estate Owned [Member] | Appraisal or Internal Valuation Technique [Member] | Weighted Average [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Selling costs | 7.00% | 7.00% |
Fair value - Carrying amounts a
Fair value - Carrying amounts and estimated fair value of the company's (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Financial assets | ||
Investment securities available for sale | $ 39,081 | $ 46,937 |
Loans held for sale | 17,219 | 12,722 |
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash | 23,613 | 19,967 |
Investment securities available for sale | 500 | |
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash | 23,613 | 19,967 |
Investment securities available for sale | 500 | |
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 24,365 | |
Investment securities available for sale | 38,581 | 46,687 |
Federal Home Loan Bank stock | 2,014 | 1,694 |
Loans held for sale | 17,219 | 12,722 |
Accrued interest receivable | 2,578 | 2,597 |
Interest rate lock commitments | 728 | |
Financial liabilities | ||
Deposits | 468,843 | 443,208 |
FHLB borrowings | 36,000 | 29,000 |
Trust preferred securities | 8,764 | 8,764 |
Other borrowings | 5,604 | 10,912 |
Accrued interest payable | 214 | 221 |
Forward sales commitment | 1,188 | |
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash equivalents | 24,365 | |
Investment securities available for sale | 38,581 | 46,687 |
Federal Home Loan Bank stock | 2,014 | 1,694 |
Loans held for sale | 17,219 | 12,722 |
Accrued interest receivable | 2,578 | 2,597 |
Interest rate lock commitments | 728 | |
Financial liabilities | ||
Deposits | 469,440 | 443,645 |
FHLB borrowings | 36,448 | 29,285 |
Trust preferred securities | 9,851 | 9,812 |
Other borrowings | 5,604 | 10,912 |
Accrued interest payable | 214 | 221 |
Forward sales commitment | 1,188 | |
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale | 0 | 250 |
Loans | 433,644 | 427,827 |
Impaired loans | 1,590 | 1,468 |
Assets held for sale | 514 | 514 |
Other real estate owned | 526 | 526 |
Bank owned life insurance | 7,657 | 7,612 |
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Investment securities available for sale | 0 | 250 |
Loans | 434,392 | 429,254 |
Impaired loans | 1,590 | 1,468 |
Assets held for sale | 514 | 514 |
Other real estate owned | 526 | 526 |
Bank owned life insurance | $ 7,657 | $ 7,612 |
Segment Reporting - Segment inf
Segment Reporting - Segment information (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Revenues | |||
Interest income | $ 5,684 | $ 5,709 | |
Gain on sale of loans | 1,624 | 928 | |
Other revenues | 873 | 829 | |
Total revenues | 8,181 | 7,466 | |
Expenses | |||
Provision for loan losses | 400 | 177 | $ 135 |
Interest expense | 1,257 | 1,243 | |
Salaries and benefits | 3,022 | 2,936 | |
Commissions | 437 | 239 | |
Other expenses | 1,928 | 2,063 | |
Total operating expenses | 7,044 | 6,481 | |
Income before income taxes | 1,137 | 985 | |
Income tax expense | 239 | 176 | |
Net income | 898 | 809 | |
Total assets | 570,205 | 522,274 | $ 540,313 |
Eliminations [Member] | |||
Revenues | |||
Interest income | (15) | 0 | |
Gain on sale of loans | 0 | 0 | |
Other revenues | (57) | (57) | |
Total revenues | (72) | (57) | |
Expenses | |||
Provision for loan losses | 0 | ||
Interest expense | (15) | 0 | |
Salaries and benefits | 0 | 0 | |
Commissions | 0 | 0 | |
Other expenses | (57) | (57) | |
Total operating expenses | (72) | (57) | |
Income before income taxes | 0 | 0 | |
Income tax expense | 0 | 0 | |
Net income | 0 | 0 | |
Total assets | (12,979) | (13,400) | |
Commercial Banking [Member] | |||
Revenues | |||
Interest income | 5,590 | 5,646 | |
Gain on sale of loans | 0 | 0 | |
Other revenues | 733 | 774 | |
Total revenues | 6,323 | 6,420 | |
Expenses | |||
Provision for loan losses | 400 | ||
Interest expense | 1,257 | 1,243 | |
Salaries and benefits | 2,208 | 2,200 | |
Commissions | 0 | 0 | |
Other expenses | 1,709 | 1,882 | |
Total operating expenses | 5,574 | 5,325 | |
Income before income taxes | 749 | 1,095 | |
Income tax expense | 158 | 199 | |
Net income | 591 | 896 | |
Total assets | 570,751 | 525,782 | |
Mortgage Banking [Member] | |||
Revenues | |||
Interest income | 109 | 63 | |
Gain on sale of loans | 1,624 | 928 | |
Other revenues | 197 | 112 | |
Total revenues | 1,930 | 1,103 | |
Expenses | |||
Provision for loan losses | 0 | ||
Interest expense | 15 | 0 | |
Salaries and benefits | 814 | 736 | |
Commissions | 437 | 239 | |
Other expenses | 276 | 238 | |
Total operating expenses | 1,542 | 1,213 | |
Income before income taxes | 388 | (110) | |
Income tax expense | 81 | (23) | |
Net income | 307 | (87) | |
Total assets | $ 12,433 | $ 9,892 |
Shareholders' Equity and Regu_3
Shareholders' Equity and Regulatory Matters - Accumulated other comprehensive income (loss) (Details)) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Shareholders' Equity and Regulatory Matters | ||
Net unrealized gains on securities | $ 480 | $ 186 |
Net unrecognized losses on defined benefit plan | (42) | (44) |
Total accumulated other comprehensive income | $ 438 | $ 142 |
Shareholders' Equity and Regu_4
Shareholders' Equity and Regulatory Matters - Capital amounts and ratios (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
To be Well Capitalized (in percentage) | 10.00% | |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
To be Well Capitalized (in percentage) | 8.00% | |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
To be Well Capitalized (in percentage) | 5.00% | |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
For Capital Adequacy Purposes (in percentage) | 6.50% | |
Subsidiaries [Member] | ||
Total capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 57,746 | $ 54,653 |
For Capital Adequacy Purposes | 36,620 | 34,807 |
To be Well Capitalized Amount | $ 45,775 | $ 43,508 |
Total capital (to risk- weighted assets) Village Bank, Ratio | ||
Actual Ratio (in percentage) | 12.62% | 12.56% |
For Capital Adequacy Purposes (in percentage) | 8.00% | 8.00% |
To be Well Capitalized (in percentage) | 10.00% | 10.00% |
Tier 1 capital (to risk- weighted assets) Village Bank, Amount | ||
Actual Amount | $ 54,302 | $ 52,867 |
For Capital Adequacy Purposes | 27,465 | 26,015 |
To be Well Capitalized Amount | $ 36,620 | $ 34,807 |
Tier 1 capital (to risk-capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 11.86% | 12.15% |
For Capital Adequacy Purposes (in percentage) | 6.00% | 6.00% |
To be Well Capitalized (in percentage) | 8.00% | 8.00% |
Leverage ratio (Tier 1 capital to average assets), Amount | ||
Actual Amount | $ 54,302 | $ 52,867 |
For Capital Adequacy Purposes | 21,515 | 21,823 |
To be Well Capitalized Amount | $ 26,894 | $ 27,278 |
Leverage ratio (Tier 1 capital to average assets), Ratio | ||
Actual Ratio (in percentage) | 10.10% | 9.69% |
For Capital Adequacy Purposes (in percentage) | 4.00% | 4.00% |
To be Well Capitalized (in percentage) | 5.00% | 5.00% |
Common equity (Tier 1 risk based capital to risk weighted assets), Amount | ||
Actual Amount | $ 54,302 | $ 52,867 |
For Capital Adequacy Purposes | 20,599 | 19,579 |
To be Well Capitalized Amount | $ 29,754 | $ 28,280 |
Common equity (Tier 1 risk based capital to risk weighted assets), Ratio | ||
Actual Ratio (in percentage) | 11.86% | 12.15% |
For Capital Adequacy Purposes (in percentage) | 4.50% | 4.50% |
To be Well Capitalized (in percentage) | 6.50% | 6.50% |
Shareholders' Equity and Regu_5
Shareholders' Equity and Regulatory Matters - Additional Information (Details) - USD ($) | May 01, 2009 | Mar. 31, 2020 | Mar. 31, 2018 | Dec. 31, 2019 |
Shareholders' Equity and Regulatory Matters | ||||
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 499,029 | |||
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 4.43 | |||
Dividends Payable | $ 56,554 | |||
Preferred Stock, Shares Issued | 14,738 | |||
Preferred Stock, Par or Stated Value Per Share | $ 4 | |||
Preferred Stock, Liquidation Preference Per Share | $ 1,000 | |||
Common Equity Tier One Risk Based Capital Required for Capital Adequacy to Risk Weighted Assets | 6.50% | |||
Stock Redeemed or Called During Period, Shares | 5,027 | |||
Payments to Acquire Businesses, Gross | $ 14,738,000 | |||
Deferred Tax Liabilities, Gross | $ 116,000 | $ 38,000 | ||
Tier One Risk Based Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | |||
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | |||
Tier One Leverage Capital Required to be Well Capitalized to Average Assets | 5.00% | |||
Description of Regulatory Requirements, Prompt Corrective Action | On September 17, 2019, the federal bank regulators issued a final rule required by the EGRRCPA that permits qualifying banks and bank holding companies that have less than $10 billion of assets, like the Company and the Bank, to elect to be subject to a 9% leverage ratio that would be applied using less complex leverage calculations (commonly referred to as the community bank leverage ratio or "CBLR"). Under the rule, which became effective January 1, 2020, banks and bank holding companies that opt into the CBLR framework and maintain a CBLR of greater than 9% would not be subject to other risk-based and leverage capital requirements under the Basel III Capital Rules and would be deemed to have met the well capitalized ratio requirements under the "prompt corrective action" framework. |
Commitments and contingencies_2
Commitments and contingencies (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 137,694 | $ 105,820 |
Undisbursed credit lines | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 93,097 | 83,366 |
Commitments to extend or originate credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | 37,590 | 15,722 |
Standby letters of Credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Total commitments to extend credit | $ 7,007 | $ 6,732 |
Mortgage Banking and Derivati_2
Mortgage Banking and Derivatives (Details) | Mar. 31, 2020USD ($)position | Dec. 31, 2019USD ($) |
Participating Mortgage Loans [Line Items] | ||
Fair value of LHFS | $ 17,219,000 | $ 12,722,000 |
Unpaid principal balance | 16,800,000 | |
Other Assets | ||
Participating Mortgage Loans [Line Items] | ||
Fair value of IRLC | 728,000 | |
IRLC notional amount | $ 37,600,000 | |
IRLC total positions | position | 158 | |
Other Liabilities | ||
Participating Mortgage Loans [Line Items] | ||
Fair value of forward sales commitments | $ 1,200,000 | |
Forward sales commitments notional amount | $ 54,800,000 | |
Forward sales commitments total positions | position | 235 |
Recent accounting pronounceme_2
Recent accounting pronouncements (Details) - USD ($) | Mar. 31, 2020 | Dec. 31, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Past due loans | $ 7,565,000 | $ 7,523,000 |
Percentage of recovery | 98.00% | |
Loans past due greater than 30 days [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Past due loans | $ 7,565,000 | |
Guaranteed student loans [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Past due loans | 5,346,000 | $ 5,570,000 |
Guaranteed student loans [Member] | Loans past due greater than 30 days [Member] | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||
Past due loans | $ 5,346,000 | |
Percentage of recovery | 98.00% |