Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2023 | May 10, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2023 | |
Entity Registrant Name | VIRGINIA NATIONAL BANKSHARES CORP | |
Entity Central Index Key | 0001572334 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q1 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | false | |
Entity Common Stock, Shares Outstanding | 5,365,982 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity File Number | 001-40305 | |
Entity Incorporation, State or Country Code | VA | |
Entity Tax Identification Number | 46-2331578 | |
Entity Address, Address Line One | 404 People Place | |
Entity Address, City or Town | Charlottesville | |
Entity Address, State or Province | VA | |
Entity Address, Postal Zip Code | 22911 | |
City Area Code | 434 | |
Local Phone Number | 817-8621 | |
Entity Shell Company | false | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Title of 12(b) Security | Common Stock | |
Trading Symbol | VABK | |
Security Exchange Name | NASDAQ |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | ||
ASSETS | ||||
Cash and due from banks | $ 19,706 | $ 20,993 | [1] | |
Interest-bearing deposits in other banks | 15,563 | 19,098 | [1] | |
Federal funds sold | 12 | 45 | [1] | |
Securities: | ||||
Available for sale, at fair value | 492,760 | 538,186 | [1] | |
Restricted securities, at cost | 5,750 | 5,137 | [1] | |
Total securities | 498,510 | 543,323 | [1] | |
Loans, net of deferred fees and costs | 939,957 | 936,415 | [1] | |
Allowance for credit losses | (7,772) | (5,552) | [1] | |
Loans, net | 932,185 | 930,863 | [1] | |
Premises and equipment, net | 17,676 | 17,808 | [1] | |
Assets held for sale | [1] | 965 | ||
Bank owned life insurance | 38,804 | 38,552 | [1] | |
Goodwill | 7,768 | 7,768 | [1] | |
Other real estate owned, net | 0 | 0 | ||
Right of use asset, net | 6,336 | 6,536 | [1] | |
Deferred tax asset, net | 16,129 | 17,315 | [1] | |
Accrued interest receivable and other assets | 12,644 | 13,507 | [1] | |
Total assets | 1,571,528 | 1,623,359 | [1] | |
Demand deposits: | ||||
Noninterest-bearing | 448,094 | 495,649 | [1] | |
Interest-bearing | 360,652 | 399,983 | [1] | |
Money market and savings deposit accounts | 418,795 | 467,600 | [1] | |
Certificates of deposit and other time deposits | 169,719 | 115,106 | [1] | |
Total deposits | 1,397,260 | 1,478,338 | [1] | |
Borrowings | 19,250 | |||
Junior subordinated debt, net | 3,424 | 3,413 | [1] | |
Lease liability | 5,968 | 6,173 | [1] | |
Accrued interest payable and other liabilities | 4,129 | 2,019 | [1] | |
Total liabilities | 1,430,031 | 1,489,943 | [1] | |
Commitments and contingent liabilities | ||||
Shareholders' equity: | ||||
Preferred stock, $2.50 par value | [1] | |||
Common stock, $2.50 par value | 13,238 | 13,214 | [1] | |
Capital surplus | 105,491 | 105,344 | [1] | |
Retained earnings | 65,621 | 63,482 | [1] | |
Accumulated other comprehensive loss | (42,853) | (48,624) | [1] | |
Total shareholders' equity | 141,497 | 133,416 | [1] | |
Total liabilities and shareholders' equity | $ 1,571,528 | $ 1,623,359 | [1] | |
Common stock, shares outstanding | 5,338,650 | 5,337,271 | [1] | |
Common stock, shares authorized | 10,000,000 | 10,000,000 | [1] | |
Preferred stock, shares outstanding | 0 | 0 | [1] | |
Preferred stock, shares authorized | 2,000,000 | 2,000,000 | [1] | |
Core Deposit [Member] | ||||
Securities: | ||||
Intangible assets, net | $ 6,195 | $ 6,586 | [1] | |
[1] Derived from audited Consolidated Financial Statements |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Mar. 31, 2023 | Dec. 31, 2022 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value per share | $ 2.50 | $ 2.50 |
Common stock, par value per share | $ 2.50 | $ 2.50 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Interest and dividend income: | ||
Loans, including fees | $ 12,767 | $ 10,769 |
Federal funds sold | 61 | |
Other interest-bearing deposits | 258 | 136 |
Investment securities: | ||
Taxable | 2,951 | 1,012 |
Tax exempt | 327 | 304 |
Dividends | 67 | 62 |
Total interest and dividend income | 16,370 | 12,344 |
Interest expense: | ||
Demand and savings deposits | 1,862 | 676 |
Certificates and other time deposits | 648 | 195 |
Borrowings | 386 | |
Junior subordinated debt | 61 | 48 |
Total interest expense | 2,957 | 919 |
Net interest income | 13,413 | 11,425 |
Provision for (recovery of) credit losses | (248) | 148 |
Net interest income after provision for (recovery of) credit losses | 13,661 | 11,277 |
Noninterest income: | ||
Wealth management fees | 404 | 557 |
Advisory and brokerage income | 216 | |
Deposit account fees | 401 | 465 |
Debit/credit card and ATM fees | 571 | 707 |
Bank owned life insurance income | 252 | 211 |
Resolution of commercial dispute | 2,400 | |
Gain on termination of interest swap | 460 | |
Losses on sales of AFS, net | (206) | |
Other | 394 | 231 |
Total noninterest income | 2,276 | 4,787 |
Noninterest expense: | ||
Salaries and employee benefits | 4,051 | 4,731 |
Net occupancy | 1,179 | 1,197 |
Equipment | 218 | 283 |
Bank franchise tax | 324 | 304 |
Computer software | 202 | 263 |
Data processing | 742 | 738 |
FDIC deposit insurance assessment | 100 | 226 |
Marketing, advertising and promotion | 375 | 267 |
Debit/credit card and ATM expenses | 48 | 139 |
Professional fees | 192 | 337 |
Core deposit intangible amortization | 391 | 439 |
Other | 1,039 | 1,171 |
Total noninterest expense | 8,861 | 10,095 |
Income before income taxes | 7,076 | 5,969 |
Provision for income taxes | 1,285 | 1,045 |
Net income | $ 5,791 | $ 4,924 |
Net income per common share, basic | $ 1.08 | $ 0.93 |
Net income per common share, diluted | $ 1.08 | $ 0.92 |
Weighted average common shares outstanding, basic | 5,338,099 | 5,311,983 |
Weighted average common shares outstanding, diluted | 5,375,619 | 5,343,564 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 5,791 | $ 4,924 |
Other comprehensive income (loss): | ||
Unrealized losses on securities, net of tax of $1,597 and ($5,228) for the three ended March 31, 2023 and 2022; respectively | 6,008 | (19,665) |
Reclassification adjustment for realized gain on termination of interest rate swap, net of tax benefit of ($97) and $0 for the three months ended March 31, 2023 and 2022, respectively | (363) | |
Reclassification adjustment for realized losses on securities, net of tax of $34 and $0 for the three months ended March 31, 2023 and 2022, respectively | 163 | |
Unrealized gains (losses) on interest rate swaps, net of tax of ($9) and $62 for the three months ended March 31, 2023 and 2022, respectively | (37) | 235 |
Total other comprehensive loss | 5,771 | (19,430) |
Total comprehensive income (loss) | $ 11,562 | $ (14,506) |
CONSOLIDATED STATEMENTS OF CO_2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS) (Parenthetical) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Change in unrealized losses on available-for-sale securities, tax | $ 1,597 | $ (5,228) |
Reclassification adjustment for realized gain on termination of interest rate swap, tax | (97) | 0 |
Reclassification adjustment for realized losses on securities, tax | 43 | 0 |
Unrealized gains (losses) on interest rate swaps, tax | $ (9) | $ 62 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Capital Surplus [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | |
Balance at Dec. 31, 2021 | $ 161,987 | $ 13,178 | $ 104,584 | $ 46,436 | $ (2,211) | |
Stock option expense | 41 | 41 | ||||
Restricted stock grant expense | 93 | 93 | ||||
Vested stock grants | 12 | (12) | ||||
Cash dividends declared | (1,596) | (1,596) | ||||
Net income | 4,924 | 4,924 | ||||
Other comprehensive income (loss) | (19,430) | (19,430) | ||||
Balance at Mar. 31, 2022 | 146,019 | 13,190 | 104,706 | 49,764 | (21,641) | |
Balance at Dec. 31, 2022 | 133,416 | [1] | 13,214 | 105,344 | 63,482 | (48,624) |
Exercise of stock options | 18 | 3 | 15 | |||
Stock option expense | 42 | 42 | ||||
Restricted stock grant expense | 111 | 111 | ||||
Vested restricted stock grants | 21 | (21) | ||||
Cash dividends declared | (1,762) | (1,762) | ||||
Impact of adoption of CECL | (1,890) | (1,890) | ||||
Net income | 5,791 | 5,791 | ||||
Other comprehensive income (loss) | 5,771 | 5,771 | ||||
Balance at Mar. 31, 2023 | $ 141,497 | $ 13,238 | $ 105,491 | $ 65,621 | $ (42,853) | |
[1] Derived from audited Consolidated Financial Statements |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) (Unaudited) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividend declared, per share | $ 0.33 | $ 0.30 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 5,791 | $ 4,924 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Provision for (recovery of) credit losses | (248) | 148 |
Net accretion of certain acquisition-related adjustments | (1,517) | (540) |
Amortization of intangible assets | 391 | 456 |
Net amortization and (accretion) of securities | (576) | 388 |
Net losses on sale of other AFS | (206) | (5) |
Earnings on bank owned life insurance | (252) | (211) |
Depreciation and other amortization | 882 | 967 |
Stock option expense | 42 | 41 |
Stock grant expense | 111 | 93 |
Net change in: | ||
Accrued interest receivable and other assets | (200) | 2,749 |
Accrued interest payable and other liabilities | 2,380 | 376 |
Net cash provided by operating activities | 6,598 | 9,386 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Net increase in restricted investments | (613) | (188) |
Purchases of available for sale securities | (69,252) | |
Proceeds from maturities, calls, sales and principal payments of available for sale securities | 53,596 | 6,428 |
Net change in loans | (2,055) | 54,484 |
Purchase of bank owned life insurance | (5,542) | |
Proceeds from sale of premises and equipment | 962 | 5 |
Purchase of bank premises and equipment | (236) | (154) |
Net cash provided by (used in) investing activities | 51,654 | (14,219) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Net change in demand deposits, interest checking, money market and savings accounts | (135,692) | (15,179) |
Net change in certificates of deposit and other time deposits | 54,619 | (6,624) |
Net change in other borrowings | 19,250 | |
Gain on termination of interest swap | 460 | |
Proceeds from stock options exercised | 18 | |
Cash dividends paid | (1,762) | (1,596) |
Net cash (used in) provided by financing activities | (63,107) | (23,399) |
NET (DECREASE) IN CASH AND CASH EQUIVALENTS | (4,855) | (28,232) |
CASH AND CASH EQUIVALENTS: | ||
Beginning of period | 40,136 | 508,840 |
End of period | 35,281 | 480,608 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Interest | 2,827 | 957 |
SUPPLEMENTAL SCHEDULE OF NONCASH INVESTING AND FINANCING ACTIVITIES | ||
Unrealized gains (losses) on available for sale securities | $ 7,812 | (24,893) |
Unrealized gains on interest rate swaps | 297 | |
Initial right-of-use assets obtained in exchange for new operating lease liabilities | $ 541 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Principles of Consolidation: The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2022 . Nature of Operations: The accompanying unaudited consolidated financial statements include the accounts of the Company, and its subsidiaries Virginia National Bank and Masonry Capital Management, LLC, a registered investment advisor. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. Until the sale of the business line on December 19, 2022, the Bank also offered, through networking agreements with third parties, investment advisory and other investment services under Sturman Wealth Advisors. All significant intercompany balances and transactions have been eliminated in consolidation. Basis of Presentation: The preparation of financial statements in conformity with GAAP and the reporting guidelines prescribed by regulatory authorities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ACL, accounting for business combinations, including loans acquired in the business combination, ACL on individually evaluated loans, goodwill impairment, credit losses of securities, other intangible assets, and fair value measurements. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 . Reclassifications: If needed, certain previously reported amounts have been reclassified to conform to current period presentation. No such reclassifications were significant. Recent Significant Accounting Pronouncements Investments in Tax Credit Structures - In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method”. These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The ASU is effective for public business entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The Company does not expect the adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. LIBOR and Other Reference Rates - In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”. ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company has identified all loans that are directly or indirectly impacted by LIBOR. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company's financial position, results of operations or cash flows. |
Adoption of New Accounting Stan
Adoption of New Accounting Standards | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Adoption of New Accounting Standards | Note 2. Adoption of New Accounting Standards Financial Instruments – Credit Losses - On January 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments," and ASU 2022-02, “Financial Instruments-Credit Losses, Troubled Debt Restructurings and Vintage Disclosures,” collectively referred to as ASC 326. This standard, in part, replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. ASC 326 requires an estimate of credit losses for the remaining estimated life of the financial assets using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans will receive an initial allowance at the acquisition date that represents an adjustment to the amortized cost basis of the loan, with no impact to earnings. In addition, ASU 326 made changes to the accounting for available-for-sale debt securities. One change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The transition adjustment of the adoption included an increase in the ACL on loans of $ 2.5 million, which is presented as a reduction to net loans outstanding, and an increase in the ACL for unfunded loan commitments of $ 252 thousand, which is recorded within Accrued interest payable and other liabilities on the consolidated balance sheets. The Company recorded a net decrease to opening retained earnings as of January 1, 2023 of $ 1.9 million, for the cumulative effect of adopting ASC 326, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable accounting standards ("Incurred Loss"). Subsequent to adoption, the Company will record adjustments to its ACL and reserve for unfunded commitments through the provision for credit losses in the consolidated statements of income. ASC 326 also replaced the Company's previous accounting policies for PCI loans and TDRs. With the adoption of ASC 326, loans previously designated as PCI loans were designated as purchased loans with credit deterioration (PCD loans). The Company adopted ASC 326 using the prospective transition approach for PCD loans that were previously identified as PCI and accounted for under ASC 310-30. On January 1, 2023, the Company's PCD loans were adjusted to reflect the addition of $ 355 thousand of expected credit losses to the amortized cost basis of the loans and a corresponding increase to the ACL. The remaining noncredit discount, the difference between the adjusted amortized cost basis and the outstanding principal balance on PCD loans, will be accreted into interest income over the estimated remaining lives of the loans using the effective interest rate method. The evaluation of the ACL will include PCD loans together with other loans that share similar risk characteristics, rather than using the separate pools that were used under PCI accounting. The adoption of ASC 326 also replaced previous TDR accounting guidance, and the evaluation of the ACL will include loans previously designated as TDRs together with other loans that share similar risk characteristics. The adoption of ASC 326 did not affect the carrying value of debt securities or the amount of unrealized gains and losses recorded in accumulated other comprehensive loss. Upon adoption of ASC 326, the Company did not have any securities included in its portfolio where OTTI had previously been recognized or that required an ACL. Therefore, the Company determined that an ACL on AFS was not deemed material. The following table illustrates the impact of adopting ASC 326 (dollars in thousands): December 31, 2022 January 1, 2023 January 1, 2023 As Previously Reported Impact of As Reported Under ASC 326 Assets: Loans, gross $ 936,415 $ 355 $ 936,770 Allowance for credit losses: Commercial 194 ( 11 ) 183 Real estate construction and land 221 440 661 1-4 family residential mortgages 1,618 14 1,632 Commercial mortgages 2,820 1,577 4,397 Consumer 699 471 1,171 Allowance for credit losses $ 5,552 $ 2,491 $ 8,044 Loans, net $ 930,863 $ ( 2,136 ) $ 928,726 Net deferred tax asset $ 17,315 $ 499 $ 17,814 Liabilities: Reserve for credit losses on unfunded commitments 60 253 313 Total equity $ 133,416 $ ( 1,890 ) $ 131,526 Available for Sale Securities - For AFS securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an ACL, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes an AFS security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS portfolio. Loans - Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred fees and costs. Accrued interest receivable related to loans totaled $ 4.7 million at March 31, 2023 and was reported in Accrued interest receivable and other assets on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments. The accrual of interest is generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is considered to be past due when a scheduled payment has not been received 30 days after the contractual due date. All accrued interest is reversed against interest income when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured. Allowance for Credit Losses - Purchased Credit Deteriorated Loans - Upon adoption of ASC 326, loans that were designated as PCI loans under the previous accounting guidance were classified as PCD loans without reassessment. In future acquisitions, the Company may purchase loans, some of which may have experienced more than insignificant credit deterioration since origination. In those cases, the Company will consider internal loan grades, delinquency status and other relevant factors in assessing whether purchased loans are PCD. PCD loans are recorded at the amount paid. An initial ACL is determined using the same methodology as other loans held for investment, but with no impact to earnings. The initial ACL determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent to initial recognition, PCD loans are subject to the same interest income recognition and impairment model as non-PCD loans, with changes to the ACL recorded through provision expense. Allowance for Credit Losses - Loans - The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest receivable is excluded from the estimate of credit losses. The ACL represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The ACL is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified ten portfolio segments and calculates the ACL for each using the methodology specified below (with the major classification noted in italics) : Discounted cash flow methodology: 1. Commercial and industrial (Commercial) 2. Construction (Real estate construction and land) 3. Consumer (Consumer) 4. Commercial real estate, non-owner occupied (Commercial mortgage) 5. Commercial real estate, owner occupied (Commercial mortgage) 6. Home equity and junior liens (1-4 family residential mortgage) 7. Multifamily (Commercial mortgage) 8. Residential first lien (1-4 family residential mortgage) Remaining life methodology: 9. Minute lender (Consumer/Commercial) 10. Student loans (Consumer) Additionally, the ACL calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include: adjustments for changes in lending policies and procedures and underwriting practices; changes in national, regional and local economic conditions; changes in the nature and volume of the portfolio and terms of loans; changes in the experience, depth and ability of credit and loan operations staff; changes in the volume and severity of past due, special mention and substandard loans; changes in the quality of the loan review system; changes in the value of underlying collateral for loans that are not collateral dependent; the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors such as competition, legal and regulatory requirements, on the level of estimated credit losses. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective analysis. The ACL on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the sale of collateral, the expected credit losses are based on the fair value of collateral at the reporting dated adjusted for selling costs as appropriate. Allowance for Credit Losses – Reserve for Unfunded Commitments - The Company records an ACL for off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for credit losses in the Company’s consolidated statements of income. The ACL for off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees. The allowance for unfunded commitments is included in Accrued interest and other liabilities on the Company’s consolidated balance sheets. Accrued Interest Receivable - The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on nonaccrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities | Note 3. Securities The amortized cost and fair values of securities available for sale as of March 31, 2023 and December 31, 2022 were as follows (dollars in thousands): March 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 196,488 $ - $ ( 1,919 ) $ 194,569 U.S. Government agencies 35,209 - ( 5,984 ) 29,225 Mortgage-backed securities/CMOs 191,012 - ( 25,384 ) 165,628 Corporate bonds 19,605 - ( 821 ) 18,784 Municipal bonds 104,690 14 ( 20,150 ) 84,554 Total Securities Available for Sale $ 547,004 $ 14 $ ( 54,258 ) $ 492,760 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 245,583 $ - $ ( 3,113 ) $ 242,470 U.S. Government agencies 35,283 - ( 6,528 ) 28,755 Mortgage-backed securities/CMOs 194,964 - ( 27,888 ) 167,076 Corporate bonds 19,581 - ( 852 ) 18,729 Municipal bonds 104,831 - ( 23,675 ) 81,156 Total Securities Available for Sale $ 600,242 $ - $ ( 62,056 ) $ 538,186 As of March 31, 2023, there were $ 489.9 million or 287 issues of individual securities, held in an unrealized loss position. These securities have an unrealized loss of $ 54.3 million and consist of 120 mortgage-backed/collateralized mortgage obligations, 124 municipal bonds, 20 agency bonds, 12 treasury bonds and 11 corporate bonds. The following table summarizes all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, for which no allowance for credit losses was recorded, at March 31, 2023, and December 31, 2022 (dollars in thousands): Less than 12 Months 12 Months or More Total March 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ 194,569 $ ( 1,919 ) $ - $ - $ 194,569 $ ( 1,919 ) U.S. Government agencies 2,972 ( 201 ) 26,253 ( 5,783 ) 29,225 ( 5,984 ) Mortgage-backed/CMOs 21,722 ( 897 ) 143,905 ( 24,487 ) 165,627 ( 25,384 ) Corporate bonds 15,237 ( 588 ) 3,547 ( 233 ) 18,784 ( 821 ) Municipal bonds 5,935 ( 245 ) 75,738 ( 19,905 ) 81,673 ( 20,150 ) $ 240,435 $ ( 3,850 ) $ 249,443 $ ( 50,408 ) $ 489,878 $ ( 54,258 ) Less than 12 Months 12 Months or More Total December 31, 2022 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ 242,470 $ ( 3,113 ) $ - $ - $ 242,470 $ ( 3,113 ) U.S. Government agencies 4,285 ( 620 ) 24,218 ( 5,908 ) 28,503 ( 6,528 ) Mortgage-backed/CMOs 55,396 ( 6,010 ) 111,689 ( 21,878 ) 167,085 ( 27,888 ) Corporate bonds 18,729 ( 852 ) - - 18,729 ( 852 ) Municipal bonds 44,117 ( 8,001 ) 35,964 ( 15,674 ) 80,081 ( 23,675 ) $ 364,997 $ ( 18,596 ) $ 171,871 $ ( 43,460 ) $ 536,868 $ ( 62,056 ) The Company’s securities portfolio is primarily made up of fixed rate instruments, the prices of which move inversely with interest rates. Any unrealized losses are considered by management to be driven by increases in market interest rates over the yields available at the time the underlying securities were purchased. The fair value is expected to recover as the instruments approach their maturity date or repricing date or if market yields for such investments decline. At the end of any accounting period, the portfolio may have both unrealized gains and losses. Impairment of debt securities occurs when the fair value of a security is less than its amortized cost. The Company has elected to exclude accrued interest receivable from the amortized cost basis. For debt securities AFS, impairment is recognized in its entirety in net income if either (i) we intend to sell the security or (ii) it is more-likely-than-not that we will be required to sell the security before recovery of its amortized cost basis. If, however, the Company does not intend to sell the security and it is not more-likely-than-not that the Company will be required to sell the security before recovery, the Company evaluates unrealized losses to determine whether a decline in fair value below amortized cost basis is a result of a credit loss, which occurs when the amortized cost basis of the security exceeds the present value of the cash flows expected to be collected from the security, or other factors such as changes in market interest rates. If a credit loss exists, an ACL is recorded that reflects the amount of the impairment related to credit losses, limited by the amount by which the security’s amortized cost basis exceeds its fair value. Changes in the ACL are recorded in net income in the period of change and are included in provision for credit losses. Changes in the fair value of debt securities AFS not resulting from credit losses are recorded in other comprehensive income (loss). The Company regularly reviews unrealized losses in its investments in securities and cash flows expected to be collected from impaired securities based on criteria including the extent to which market value is below amortized cost, the financial health of and specific prospects for the issuer, the Company’s intention with regard to holding the security to maturity and the likelihood that the Company would be required to sell the security before recovery. Management does not believe any of the securities in an unrealized loss position are impaired due to credit quality. In addition, issuers have continued to make timely payments of principal and interest. Accordingly, as of March 31, 2023, management believes the impairments detailed in the table above are temporary, and no credit loss has been realized in the Company’s consolidated income statement. Additionally, management has the ability to hold any security with an unrealized loss until maturity or until such time as the value of the security has recovered from its unrealized loss position. Securities having carrying values of $ 5.2 million at March 31, 2023 were pledged as collateral to secure deposits and facilitate borrowing from the Federal Reserve Bank of Richmond. At December 31, 2022 , securities having carrying values of $ 5.1 million were similarly pledged. During the three months ended March 31, 2023 , the Company sold AFS securities with a total book value of $ 49.9 million, incurring a pre-tax loss of $ 206 thousand, and used the net proceeds to fund normal daily operating demands. There were no sales of securities during the three months ending March 31, 2022. Restricted securities are securities with limited marketability and consist of stock in the FRB, the Federal Home Loan Bank of Atlanta, CBB Financial Corporation (the holding company for Community Bankers' Bank) and an investment in an SBA loan fund. These restricted securities, totaling $ 5.8 million and $ 5.1 million as of March 31, 2023 and December 31, 2022, are carried at cost. The amortized cost and fair value of AFS debt securities at March 31, 2023 are presented below based upon contractual maturities, by major investment categories (dollars in thousands). Expected maturities may differ from contractual maturities because issuers have the right to call or prepay obligations. Amortized Cost Fair Value U.S. Government treasuries One year or less $ 145,203 $ 144,365 After one year to five years 51,285 50,204 $ 196,488 $ 194,569 U.S. Government agencies After one year to five years $ 4,835 $ 4,289 After five years to ten years 26,374 21,995 Ten years or more 4,000 2,941 $ 35,209 $ 29,225 Mortgage-backed securities/CMOs One year or less $ 4,356 $ 4,249 After one year to five years 6,483 6,116 After five years to ten years 3,254 2,967 Ten years or more 176,919 152,296 $ 191,012 $ 165,628 Corporate bonds After one year to five years 19,605 18,784 $ 19,605 $ 18,784 Municipal bonds After one year to five years $ 3,059 $ 2,963 After five years to ten years 19,983 18,462 Ten years or more 81,648 63,129 $ 104,690 $ 84,554 Total Debt Securities Available for Sale $ 547,004 $ 492,760 |
Loans
Loans | 3 Months Ended |
Mar. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Loans | Note 4. Loans On January 1, 2023, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost, including loans receivable. For further information and discussion regarding the Company's accounting policies and policy elections related to the accounting standard update, see Note 1 - Summary of Significant Accounting Policies. All loan information presented as of March 31, 2023 is in accordance with ASC 326. All loan information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. The composition of the loan portfolio by major loan classifications at March 31, 2023 and December 31, 2022 , stated at their face amount, net of deferred fees and costs and discounts, including fair value marks, appears below (dollars in thousands). The Company has elected to exclude accrued interest receivable, totaling $ 4.7 million as of March 31, 2023, from the amortized cost basis of loans. March 31, December 31, 2023 2022 Commercial $ 72,601 $ 71,139 Real estate construction and land 34,493 37,541 1-4 family residential mortgages 317,794 323,185 Commercial mortgages 471,602 459,125 Consumer 43,467 45,425 Total loans 939,957 936,415 Less: Allowance for credit losses ( 7,772 ) ( 5,552 ) Net loans $ 932,185 $ 930,863 The balances in the table above include unamortized premiums and net deferred loan costs and fees. As of March 31, 2023 and December 31, 2022, unamortized premiums on loans (excluding loans acquired during the Merger) were $ 1.4 million , remaining rather consistent due to purchases of loans with premiums, offset by amortization of existing premiums. Net deferred loan fees totaled $ 854 thousand and $ 755 thousand as of March 31, 2023 and December 31, 2022, respectively. Consumer loans include $ 285 thousand and $ 180 thousand of demand deposit overdrafts as of March 31, 2023 and December 31, 2022, respectively. Loans acquired in business combinations are recorded in the Consolidated balance sheets at fair value at the acquisition date under the acquisition method of accounting. The fair value mark as of the Effective Date was $ 23.1 million. The table above includes a remaining net fair value mark of $ 14.1 million as of March 31, 2023 on the Acquired Loans. The following table shows the aging of the Company's loan portfolio, by class, at March 31, 2023 (dollars in thousands): Past Due Aging as of 30-59 Days 60-89 Days 90 Days or More Past Due and Still Accruing Nonaccrual Loans Current Loans Total Loans Commercial $ - $ - $ - $ - $ 72,601 $ 72,601 Real estate construction and land - - - - 34,493 34,493 1-4 family residential mortgages 458 189 - 728 316,419 317,794 Commercial mortgages - - - 500 471,102 471,602 Consumer loans 157 94 69 - 43,147 43,467 Total Loans $ 615 $ 283 $ 69 $ 1,228 $ 937,762 $ 939,957 The following table shows the Company's amortized cost basis of loans on nonaccrual status as of March 31, 2023 and December 31, 2022 (dollars in thousands). All nonaccrual loans are evaluated for an ACL on an individual basis. Only one nonaccrual loan required an ACL, in the amount of $ 27 thousand, due to collateral value shortfall. CECL Incurred Loss March 31, 2023 December 31, 2022 Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans Nonaccrual Loans Commercial $ - $ - $ - $ - Real estate construction and land - - - - 1-4 family residential mortgages 728 - 728 673 Commercial mortgages 446 54 500 - Consumer - - - - Total Loans $ 1,174 $ 54 $ 1,228 $ 673 From time to time, the Company modifies loans to borrowers who are experiencing financial difficulties by providing term extensions, interest rate reductions or other-than-insignificant payment delays. As the effect of most modifications is already included in the ACL due to the measurement methodologies used in its estimate, the ACL is typically not adjusted upon modification. Loan modifications to borrowers experiencing financial difficulty (or modified loans) as of March 31, 2023 represent 0.13 % of total loans outstanding, as follows (dollars in thousands): Amortized Cost Basis % of Total Loan Type Financial Effect Rate Reduction 1-4 family residential mortgages $ 85 0.03 % Reduced the contractual interest rate from 6.125 % to 5.0 % on one loan Capitalization of PITI 1-4 family residential mortgages 488 0.15 % Capitalized PITI to back end of note on one loan; no change in maturity date Term Extension Consumer 625 1.44 % Added a weighted-average 1.87 years to the life of the loans. The monthly payments were added to the end of the original loan terms of these borrowers. Total $ 1,198 0.13 % The Company closely monitors the performance of all modified loans to understand the effectiveness of its modification efforts. Upon determination, if applicable, that all or a portion of a modified loan is uncollectible, that amount is charged against the ACL. There were no payment defaults during the three months ended March 31, 2023 of modified loans that were modified during the previous twelve months and all are current as of March 31, 2023 , with the exception of two modified student loans totaling $ 60 thousand. Prior to the adoption of ASC 326 Loans acquired in business combinations are recorded in the Consolidated balance sheets at fair value at the acquisition date under the acquisition method of accounting. The outstanding principal balance and the carrying amount at December 31, 2022 of loans acquired in business combinations were as follows (dollars in thousands): December 31, 2022 Acquired Loans - Acquired Loans - Purchased Performing Acquired Outstanding principal balance $ 43,250 $ 290,604 $ 333,854 Carrying amount: Commercial $ 630 $ 12,606 $ 13,236 Real estate construction and land 1,461 8,530 9,991 1-4 family residential mortgages 9,076 164,280 173,356 Commercial mortgages 20,828 99,206 120,034 Consumer 72 1,277 1,349 Total acquired loans $ 32,067 $ 285,899 $ 317,966 The following table presents a summary of the changes in the accretable yield of loans classified as purchased credit impaired (dollars in thousands): Three Months Ended March 31, 2022 Accretable yield, beginning of period $ 13,742 Additions - Accretion ( 738 ) Reclassification from nonaccretable difference 2,193 Other changes, net ( 2,769 ) Accretable yield, end of period $ 12,428 The past due status of loans as of December 31, 2022 was as follows (dollars in thousands): Past Due Aging as of 30-59 Days 60-89 Days 90 Days or More Total PCI Current Total 90 Days Past Due and Still Accruing Commercial $ - $ 24 $ - $ 24 $ 630 $ 70,485 $ 71,139 $ - Real estate construction and land 287 - 75 362 1,461 35,718 37,541 - 1-4 family residential mortgages 1,176 191 598 1,965 9,076 312,144 323,185 - Commercial mortgages 330 - 646 976 20,828 437,321 459,125 646 Consumer loans 315 41 59 415 72 44,938 45,425 59 Total Loans $ 2,108 $ 256 $ 1,378 $ 3,742 $ 32,067 $ 900,606 $ 936,415 $ 705 The following table provides a summary, by class, of TDRs as of December 31, 2022 that continued to accrue interest under the terms of the restructuring agreement, which were considered to be performing, and TDRs that were placed in nonaccrual status which were considered to be nonperforming (dollars in thousands): Troubled debt restructurings December 31, 2022 No. of Recorded Loans Investment Performing TDRs 1-4 family residential mortgages 1 $ 88 Consumer 46 700 Total performing TDRs 47 $ 788 Nonperforming TDRs 1-4 family residential mortgages 2 $ 495 Consumer 0 - Total nonperforming TDRs 2 495 Total TDRs 49 $ 1,283 There were no defaults in the three months ended March 31, 2022 on loans modified in the previous twelve months. |
Allowance for Credit Losses
Allowance for Credit Losses | 3 Months Ended |
Mar. 31, 2023 | |
Allowance For Loan Losses [Abstract] | |
Allowance for Credit Losses | Note 5. Allowance for Credit Losses On January 1, 2023, the Company adopted ASC 326. The measurement of expected credit losses under the CECL methodology is applicable to financial assets measured at amortized cost. For further information and discussion regarding the Company's accounting policies and policy elections related to the accounting standard update, see Note 1 - Summary of Significant Accounting Policies. All ACL information presented as of March 31, 2023 is in accordance with ASC 326. All ALLL information presented as of December 31, 2022 or a prior date is presented in accordance with previously applicable GAAP. The ACL on the loan portfolio is a material estimate for the Company. The Company estimates is ACL on its loan portfolio on a quarterly basis. The Company utilizes two methodologies in its development of the ACL, discounted cash flow and remaining life. • Discounted Cash Flow o DCF models, being periodic in nature, allow for effective incorporation of a reasonable and supportable forecast in a directionally consistent and objective manner. o The analysis aligns well with other calculations/actions outside the ACL estimation, which will mitigate model risk in other areas and allow for symmetrical application. For example, fair value (exit price notion), profitability analysis, IRR calculations, ALM, stress testing, and other forms of cash flow analysis. o Peer data is available for certain inputs (Probability of Default, Loss Given Default) if first-party data is not available or meaningful. This is made possible by the periodic nature of the model. o The DCF methodology is utilized on the following pools: 1) Commercial & Industrial; 2) Construction; 3) Consumer; 4) CRE NonOwner Occupied; 5) CRE Owner Occupied; 6) HELOC & Junior Lien; 7) Residential 1st Lien; and 8) Multifamily. • Remaining Life o This methodology leverages a quarterly loss rate as well as future expectations of portfolio balances to calculate a reserve. o There are two main strengths of this methodology. First, it is fairly easy to execute and does not rely on large quantities of historical loan-level data. Second, it can satisfy the need to incorporate a reasonable and supportable forecast in a straightforward manner by either applying a forecast policy of “applicable history” or leveraging an actual econometric model for the analysis. o The remaining life methodology is utilized on the following pools: 1) Minute Lender; and 2) Student Loans. Maximum Loss Rate - Management utilizes the same model to calculate maximum loss rates and expected loss rates for each segment. No additional models or methodologies were used to quantify the maximum loss rate, rather, a worst-case economic environment is utilized in the models. This process ensures symmetry between the maximum loss rate and the quantified loss rate. This process also leverages the well-documented regression models used in model development. The process for deriving the maximum loss rate is outlined below: • The economic forecast reflects the worst economic environment observed for each economic factor. This is done by quantifying a rolling 1-year average for each economic factor. Then, the most pessimistic 1-year average observations are captured and utilized as economic forecast inputs within the application. • The economic forecast assumed is a ‘worst-case’ economic environment with inputs reflective of the great recession. • The economic forecast is used to quantify credit risk in the form of Loss Rate. The resulting periodic default and loss rates are applied to the prepayment adjusted amortization schedules for each segment. • The resulting ACL, which represents a lifetime reserve (symmetrical to the base model), is input into the qualitative framework’s maximum loss rate field. The difference between the expected model and the maximum model results are then allocated based on weight and risk assignment. Qualitative Factors - ASC 326 requires an entity to adjust historical loss information to reflect the extent to which management expects reasonable and supportable forecasts to differ from the conditions that existed for the period over which historical information was evaluated. The adjustments for reasonable and supportable forecasts may be qualitative in nature and should reflect changes related to relevant data. The Company utilizes a scorecard approach to assign qualitative factors. The scorecard approach is in alignment with the AICPA audit considerations for CECL which states: These adjustments should be grounded in a methodology that is subject to appropriate governance, challenge, and periodic controlled reevaluation. Such methodology will generally require significant management judgment. The information used to support management’s adjustments may be publicly available information, information specifically developed for the entity via management’s specialist (internal or external), or other relevant and reliable information. The purpose of the qualitative scorecard is to provide a qualitative estimate of the expected credit losses of the current loan portfolio in response to potential limitations of the quantitative model. It is used to aid in the assessment of the unquantifiable factors affecting expected credit losses in the loan portfolio. Benefits of the scorecard include directional consistency, objectivity, controls and quantification framework (auditable). For each segment, the scorecard calculates the difference between the quantitative expected credit loss and the maximum loss rate. This difference represents all available qualitative adjustment that can be applied to that segment. Individual Evaluation - In accordance with ASC 326, the Company will evaluate individual loans for expected credit losses when those loans do not share similar risk characteristics with loans evaluated using a collective (pooled) basis. Loans will not be included in both collective and individual analysis. Individual analysis will establish a specific reserve for each loan, using one of four methods: 1) Fair Value of Collateral Method (Collateral Relationship); 2) Cash Flow Method; 3) Advanced Cash Flow Method; or 4) Loan Pricing Method. Management has elected to perform an individual evaluation on all loans in non-accrual status. As of March 31, 2023 , after reviewing each loan in non-accrual status, a specific reserve of $ 27 thousand was established. The primary driver in the decline in reserves from adoption date of January 1, 2023 to March 31, 2023 was a reduction in the student loan pool, both in loan balances and in the 12-quarter historical loss rate, which declined. For the other pools that use the DCF method, an improvement in the economic factor yielded a lower expected loss rate. The following table shows the ACL activity by loan portfolio for the three months ended March 31, 2023 (dollars in thousands): Commercial Real Estate 1-4 family residential mortgages Commercial mortgages Consumer Total Allowance for Credit Losses: Balance as of December 31, 2022 $ 194 $ 221 $ 1,618 $ 2,820 $ 699 $ 5,552 Impact of ASC 326 adoption ( 11 ) 440 14 1,577 471 2,491 Charge-offs - - - - ( 142 ) ( 142 ) Recoveries - - 3 41 62 106 Provision for (recovery of) loan ( 7 ) ( 90 ) ( 75 ) 33 ( 96 ) ( 235 ) Balance as of March 31, 2023 $ 176 $ 571 $ 1,560 $ 4,471 $ 994 $ 7,772 The following table presents a breakdown of the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended March 31, 2023 March 31, 2022 Provision for credit losses: Provision (recovery) for loans $ ( 235 ) $ 148 Provision (recovery) for unfunded commitments ( 13 ) - Total $ ( 248 ) $ 148 The following table presents the Company's amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as of March 31, 2023 (dollars in thousands): March 31, 2023 Real Estate Secured Loans Allowance for Credit Losses -Loans Commercial real estate - non owner occupied $ 726 $ - Residential 1-4 family real estate 757 27 Total $ 1,483 $ 27 The following table presents the Company's recorded investment in loans by credit quality indicators by year of origination as of March 31, 2023 (dollars in thousands): March 31, 2023 Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial Pass $ 1,836 $ 15,324 $ 7,844 $ 9,392 $ 9,999 $ 24,511 $ 2,251 $ 71,157 Watch - 46 - - 133 11 - 190 Special Mention - - - - - 103 8 111 Substandard - 90 13 213 393 434 - 1,143 Total commercial $ 1,836 $ 15,460 $ 7,857 $ 9,605 $ 10,525 $ 25,059 $ 2,259 $ 72,601 . Real estate construction and land Pass $ 1,732 $ 12,243 $ 6,390 $ 2,448 $ 934 $ 8,696 $ - $ 32,443 Special Mention - - - - - 641 - 641 Substandard - - - - 364 1,045 - 1,409 Total real estate construction and land $ 1,732 $ 12,243 $ 6,390 $ 2,448 $ 1,298 $ 10,382 $ - $ 34,493 . 1-4 family residential mortgages Pass $ 2,497 $ 16,360 $ 59,194 $ 80,070 $ 26,432 $ 95,918 $ 25,878 $ 306,349 Watch - 728 207 402 - 4,805 1,432 7,574 Special Mention - 277 158 - - 859 - 1,294 Substandard - - 54 508 101 1,405 509 2,577 Total 1-4 family residential mortgage $ 2,497 $ 17,365 $ 59,613 $ 80,980 $ 26,533 $ 102,987 $ 27,819 $ 317,794 . Commercial mortgages Pass $ 23,894 $ 41,703 $ 47,526 $ 108,099 $ 34,858 $ 175,772 $ - $ 431,852 Watch - - 2,876 4,374 8,899 9,820 - 25,969 Special Mention - - 396 296 - 1,212 - 1,904 Substandard 159 - 1,880 2,549 1,125 6,164 - 11,877 Total commercial mortgages $ 24,053 $ 41,703 $ 52,678 $ 115,318 $ 44,882 $ 192,968 $ - $ 471,602 . Consumer Pass $ 297 $ 297 $ 507 $ 389 $ 170 $ 24,835 $ 16,648 $ 43,143 Watch - - - - - 117 13 130 Special Mention - - - - - 77 - 77 Substandard - - 30 - - 69 18 117 Total consumer $ 297 $ 297 $ 537 $ 389 $ 170 $ 25,098 $ 16,679 $ 43,467 Current period gross write-off $ - $ - $ - $ - $ - $ 142 $ - $ 142 Credit Quality Indicators The Company utilizes the following credit quality indicators: Pass Loans with the following risk ratings are pooled by class and considered together as “Pass”: Excellent – minimal risk loans secured by cash or fully guaranteed by a U.S. government agency Good – low risk loans secured by marketable collateral within margin Satisfactory – modest risk loans where the borrower has strong and liquid financial statements and more than adequate cash flow Average – average risk loans where the borrower has reasonable debt service capacity Marginal – acceptable risk loans where the borrower has acceptable financial statements but is leveraged Watch These loans have an acceptable risk but require more attention than normal servicing. Special Mention These potential problem loans are currently protected but are potentially weak. Substandard These problem loans are inadequately protected by the sound worth and paying capacity of the borrower and/or the value of any collateral pledged. These loans may be considered impaired and evaluated on an individual basis. Doubtful Loans with this rating have significant deterioration in the sound worth and paying capacity of the borrower and/or the value of any collateral pledged, making collection or liquidation of the loan in full highly questionable. These loans would be considered impaired and evaluated on an individual basis. Prior to the adoption of ASC 326 The following table presents the changes in the ACL by major classification during the year ended December 31, 2022 (dollars in thousands): Commercial Real Estate Real Estate Consumer Total Allowance for Credit Losses: Balance as of beginning of year $ 252 $ 399 $ 4,478 $ 855 $ 5,984 Charge-offs ( 600 ) - - ( 655 ) ( 1,255 ) Recoveries 519 9 11 178 717 Provision for (recovery of) loan losses 23 ( 187 ) ( 51 ) 321 106 Ending Balance $ 194 $ 221 $ 4,438 $ 699 $ 5,552 Ending Balance: Individually evaluated for impairment $ - $ - $ - $ 23 $ 23 Collectively evaluated for impairment 194 221 4,438 676 5,529 Acquired loans - purchased credit - - - - - Loans: Individually evaluated for impairment $ - $ - $ 583 $ 700 $ 1,283 Collectively evaluated for impairment 70,509 36,080 751,823 44,653 903,065 Acquired loans - purchased credit impaired 630 1,461 29,904 72 32,067 Ending Balance $ 71,139 $ 37,541 $ 782,310 $ 45,425 $ 936,415 The following represents the loan portfolio designated by the internal risk ratings assigned to each credit as of December 31, 2022 (dollars in thousands). There were no loans rated “Doubtful” as December 31, 2022. December 31, 2022 Excellent Good Pass Watch Special Sub- TOTAL Commercial $ 30,121 $ 16,058 $ 22,853 $ 992 $ 122 $ 993 $ 71,139 Real estate construction and land - - 35,258 342 532 1,409 $ 37,541 1-4 family residential mortgages - - 308,041 7,935 5,431 1,778 $ 323,185 Commercial mortgages - - 408,513 34,828 3,872 11,912 $ 459,125 Consumer 461 17,544 26,326 977 22 95 $ 45,425 Total Loans $ 30,582 $ 33,602 $ 800,991 $ 45,074 $ 9,979 $ 16,187 $ 936,415 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Note 6. Goodwill and Other Intangible Assets The carrying amount of goodwill was $ 7.8 million at March 31, 2023 and December 31, 2022 and $ 8.1 million as of March 31, 2022. The reduction from March 31, 2022 to the other periods presented resulted from the sale of Sturman Wealth Advisors in December of 2022 and the elimination of associated goodwill of $ 372 thousand. The Company had $ 6.2 million , $ 6.6 million and $ 8.1 million of other intangible assets as of March 31, 2023, December 31, 2022 and March 31, 2022 , respectively. Other intangible assets were recognized in connection with (i) the book of business, including interest in the client relationships of an officer, in connection with the acquisition of Sturman Wealth Advisors in 2016, and (ii) the core deposits acquired from Fauquier in 2021. The other intangible assets related to Sturman Wealth Advisors were eliminated from the balance sheet in December of 2022 upon sale of the business line. The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets (dollars in thousands): March 31, 2023 December 31, 2022 March 31, 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangible $ 9,660 $ ( 3,465 ) $ 9,660 $ ( 3,074 ) $ 9,660 $ ( 1,828 ) Customer relationships intangible - - - - 773 ( 516 ) Total $ 9,660 $ ( 3,465 ) $ 9,660 $ ( 3,074 ) $ 10,433 $ ( 2,344 ) Amortization expense was $ 391 thousand and $ 456 thousand for the three months ended March 31, 2023 and 2022. Estimated future amortization expense as of March 31, 2023 is as follows (dollars in thousands): Core Deposit Intangible For the nine months ending December 31, 2023 $ 1,102 For the year ending December 31, 2024 1,301 For the year ending December 31, 2025 1,110 For the year ending December 31, 2026 918 For the year ending December 31, 2027 726 Thereafter 1,038 Total $ 6,195 |
Leases
Leases | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Leases | Note 7. Leases Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease for a term similar to the length of the lease, including any probable renewal options available. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. Lease payments for short-term leases are recognized as lease expense on a straight-line basis over the lease term. Payments for leases with terms longer than twelve months are included in the determination of the lease liability. Each of the Company’s long-term lease agreements is classified as an operating lease. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases (dollars in thousands): March 31, 2023 March 31, 2022 Lease liability $ 5,968 $ 7,295 Right-of-use asset $ 6,336 $ 7,744 Weighted average remaining lease term 5.12 years 6.19 years Weighted average discount rate 2.05 % 1.98 % Three Months Ended March 31, Lease Expense: 2023 2022 Operating lease expense $ 511 $ 445 Short-term lease expense 123 52 Total lease expense $ 634 $ 497 Cash paid for amounts included in $ 512 $ 398 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): Undiscounted Cash Flow March 31, 2023 Nine months ending December 31, 2023 $ 1,030 Twelve months ending December 31, 2024 1,257 Twelve months ending December 31, 2025 1,165 Twelve months ending December 31, 2026 822 Twelve months ending December 31, 2027 724 Thereafter 1,165 Total undiscounted cash flows $ 6,163 Less: Discount ( 195 ) Lease liability $ 5,968 |
Net Income Per Share
Net Income Per Share | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | Note 8. Net Income Per Share The table below shows the weighted average number of shares used in computing net income per common share and the effect of the weighted average number of shares of potential dilutive common stock for the three months ended March 31, 2023 and 2022. Diluted net income per share is computed based on the weighted average number of shares of common stock equivalents outstanding, to the extent dilutive. The Company’s common stock equivalents relate to outstanding common stock options. The recipients of unvested restricted shares have full voting and dividend rights, and as such, unvested restricted stock as of March 31, 2023 and March 31, 2022 is included in the calculation of basic and diluted net income per share (dollars below reported in thousands except per share data). Three Months Ended March 31, 2023 March 31, 2022 Net Weighted Per Net Weighted Per Basic net income per share $ 5,791 5,338,099 $ 1.08 $ 4,924 5,311,983 $ 0.93 Effect of dilutive stock options - 37,520 - - 31,581 ( 0.01 ) Diluted net income per share $ 5,791 5,375,619 $ 1.08 $ 4,924 5,343,564 $ 0.92 For the three months ended March 31, 2023 , there were 101,481 option shares considered anti-dilutive and excluded from this calculation. For the three months ended March 31, 2022 , there were 101,901 option shares considered anti-dilutive and excluded from this calculation. |
Stock Incentive Plans
Stock Incentive Plans | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Incentive Plans | Note 9. Stock Incentive Plans At the Annual Shareholders Meeting on June 23, 2022, shareholders approved the Virginia National Bankshares Corporation 2022 Stock Incentive Plan. The 2022 Plan made available up to 150,000 shares of the Company’s common stock to be issued to plan participants. The 2014 Plan made available up to 275,625 shares of the Company’s common stock, as adjusted by prior issued stock dividends, to be issued to plan participants. The 2022 Plan and the 2014 Plan provide for granting of both incentive and nonqualified stock options, as well as restricted stock, unrestricted stock and other stock based awards. No new grants can be issued under the 2005 Stock Incentive Plan as this plan has expired. For the 2022 Plan, the option price for any stock options cannot be less that the fair value of the Company’s stock on the grant date. In addition, 95 % of the common stock authorized for issuance must have a vesting or exercise schedule of at least one year. For the 2014 Plan and the 2005 Plan, the option price of incentive stock options cannot be less than the fair value of the stock at the time an option is granted and nonqualified stock options may be granted at prices established by the Board of Directors, including prices less than the fair value on the date of grant. Outstanding stock options generally expire ten years from the grant date. Stock options generally vest by the fourth or fifth anniversary of the date of the grant. A summary of the shares issued and available under each of the Plans is shown below as of March 31, 2023 . Share data and exercise price range per share have been adjusted to reflect prior issued stock dividends. Although the 2005 Plan has expired and no new grants will be issued under this plan, there were options issued before the plan expired that are still outstanding as shown below. No grants have been issued under the 2022 Plan. 2022 Plan 2014 Plan 2005 Plan Aggregate shares issuable 150,000 275,625 253,575 Options issued, net of forfeited and expired - ( 170,106 ) ( 59,870 ) Unrestricted stock issued - ( 11,635 ) - Restricted stock grants issued, net of forfeited - ( 75,853 ) - Cancelled due to Plan expiration - - ( 193,705 ) Remaining available for grant 150,000 18,031 - Stock grants issued and outstanding: Total vested and unvested shares - 87,488 - Fully vested shares - 44,415 - Option grants issued and outstanding: Total vested and unvested shares - 166,901 - Fully vested shares - 96,349 - Exercise price range - $ 23.75 to $ 42.62 - The Company accounts for all of its stock incentive plans under recognition and measurement accounting principles which require that the compensation cost relating to stock-based payment transactions be recognized in the financial statements. Stock-based compensation arrangements include stock options and restricted stock. All stock-based payments to employees are required to be valued at a fair value on the date of grant and expensed based on that fair value over the applicable vesting period. Stock Options Changes in the stock options outstanding related to the Plans are summarized below (dollars in thousands except per share data): March 31, 2023 Number of Options Weighted Aggregate Outstanding at January 1, 2023 168,280 $ 33.95 $ 830 Issued - - Exercised ( 1,379 ) ( 13.69 ) Expired - - Outstanding at March 31, 2023 166,901 $ 34.12 $ 739 Options exercisable at March 31, 2023 96,349 $ 35.97 $ 339 For the three months ended March 31, 2023 and 2022, the Company recognized $ 42 thousand and $ 41 thousand , respectively, in compensation expense for stock options. As of March 31, 2023, there was $ 179 thousand in unre cognized compensation expense remaining to be recognized in future reporting periods through 2026 . The fair value of any stock option grant is estimated at the grant date using the Black-Scholes pricing model. There were no stock option grants issued during the three months ended March 31, 2023 and 2022. Summary information pertaining to options outstanding at March 31, 2023 is shown below. Share and per share data have been adjusted to reflect the prior stock dividends issued. Options Outstanding Options Exercisable Exercise Price Number of Weighted- Weighted- Number of Weighted- $ 23.75 to $ 30.00 65,000 7.3 Years 24.65 30,600 24.90 $ 30.01 to $ 40.00 44,420 7.3 Years 36.97 19,772 37.65 $ 40.01 to $ 42.62 57,481 5.1 Years 42.62 45,977 42.62 Total 166,901 6.6 Years $ 34.12 96,349 $ 35.97 Stock Grants Unrestricted stock grant – No unrestricted stock grants were awarded during the three months ended March 31, 2023. During the three months ended March 31, 2022 , 100 shares of unrestricted stock were granted to an employee for a total expense of $ 4 thousand. Restricted stock grants – No restricted stock was granted during the three months ended March 31, 2023. During the three months ended March 31, 2022 , 5,730 restricted shares were granted. For the three months ended March 31, 2023, $ 111 thousand was expensed as a result of restricted stock grants. As of March 31, 2023, there wa s $ 1.2 million in u nrecognized compensation expense for all restricted stock grants remaining to be recognized in future reporting periods through 2027 . Changes in the restricted stock grants outstanding during the three months ended March 31, 2023 are summarized below (dollars in thousands except per share data): March 31, 2023 Number of Weighted Aggregate Nonvested as of January 1, 2023 51,664 $ 32.05 $ 1,858 Issued - - - Vested ( 8,591 ) 32.21 ( 309 ) Forfeited - - - Nonvested at March 31, 2023 43,073 $ 32.02 $ 1,549 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements | Note 10. Fair Value Measurements Determination of Fair Value The Company follows ASC 820, “Fair Value Measurements and Disclosures,” to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. This codification clarifies that the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability (exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous market for the asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. Fair Value Hierarchy In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value: Level 1 – Valuation is based on quoted prices in active markets for identical assets and liabilities. Level 2 – Valuation is based on observable inputs including quoted prices in active markets for similar assets and liabilities, quoted prices for identical or similar assets and liabilities in less active markets, and model-based valuation techniques for which significant assumptions can be derived primarily from or corroborated by observable data in the market. Level 3 – Valuation is based on model-based techniques that use one or more significant inputs or assumptions that are unobservable in the market The following describes the valuation techniques used by the Company to measure certain financial assets and liabilities recorded at fair value on a recurring basis in the consolidated financial statements: Securities available for sale Securities AFS are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). Additional information on interest rate swaps is presented in Note 12 – Derivative Instruments and Hedging Activities. Interest rate swaps The Company recognizes interest rate swaps at fair value. The Company has contracted with a third-party to provide valuations for interest rate swaps using standard valuation techniques. The Company’s interest rate swaps are classified as Level 2. Additional information on interest rate swaps is presented in Note 12 – Derivative Instruments and Hedging Activities. The following tables present the balances measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (dollars in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 194,569 $ - $ 194,569 $ - U.S. Government agencies 29,225 - 29,225 - Mortgage-backed securities/CMOs 165,628 - 165,628 - Corporate bonds 18,784 - 18,784 - Municipal bonds 84,554 - 84,554 - Total securities available for sale $ 492,760 $ - $ 492,760 $ - Interest rate swap asset - - - - Total assets at fair value $ 492,760 $ - $ 492,760 $ - Fair Value Measurements at December 31, 2022 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 242,470 $ - $ 242,470 $ - U.S. Government agencies 28,755 - 28,755 - Mortgage-backed securities/CMOs 167,076 - 167,076 - Corporate bonds 18,729 - 18,729 Municipal bonds 81,156 - 81,156 - Total securities available for sale $ 538,186 $ - $ 538,186 $ - Liabilities: Interest rate swap liabilities $ 506 $ - $ 506 $ - Total liabilities at fair value $ 538,692 $ - $ 538,692 $ - Certain financial assets are measured at fair value on a nonrecurring basis in accordance with GAAP. Adjustments to the fair value of these assets usually result from the application of lower-of-cost-or-market accounting or write downs of individual assets. The following describes the valuation techniques used by the Company to measure certain assets recorded at fair value on a nonrecurring basis in the consolidated financial statements: Other Real Estate Owned Other real estate owned is measured at fair value less cost to sell, based on an appraisal conducted by an independent, licensed appraiser outside of the Company. If the collateral value is significantly adjusted due to differences in the comparable properties, or is discounted by the Company because of marketability, then the fair value is considered Level 3. OREO is measured at fair value on a nonrecurring basis. Any initial fair value adjustment is charged against the ACL. Subsequent fair value adjustments are recorded in the period incurred and included in other noninterest expense on the Consolidated Statements of Income. As of March 31, 2023 and December 31, 2022 , the Company had no OREO property. As of March 31, 2022 , the Company had one OREO property that had been acquired through the Merger with a fair value of $611 thousand, which was sold during the second quarter of 2022. Collateral Dependent Loans with an ACL In accordance with ASC 326, we may determine that an individual loan exhibits unique risk characteristics which differentiate it from other loans within our loan pools. In such cases, the loans are evaluated for expected credit losses on an individual basis and excluded from the collective evaluation. Specific allocations of the ACL are determined by analyzing the borrower's ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower's industry, among other things. A loan is considered to be collateral dependent when, based upon management's assessment, the borrower is experiencing financial difficulty and repayment is expected to be provided substantially through the operation or sale of the collateral. In such cases, expected credit losses are based on the fair value of the collateral at the measurement date, adjusted for estimated selling costs if satisfaction of the loan depends on the sale of the collateral. We reevaluate the fair value of collateral supporting collateral dependent loans on a quarterly basis. The fair value of real estate collateral supporting collateral dependent loans is evaluated by appraisal services using a methodology that is consistent with the Uniform Standards of Professional Appraisal Practice. The following table presents the Company's assets that were measured at fair value on a nonrecurring basis as of March 31, 2023 (dollars in thousands). There were no such assets to report as of December 31, 2022. Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: Individually evaluated loans $ 28 $ - $ - $ 28 Description Fair Value Valuation Technique Unobservable Inputs Discount Rate Assets: Individually evaluated loans $ 28 Market comparables Discount applied to recent appraisal 20.0 % ASC 825, “Financial Instruments,” requires disclosures about fair value of financial instruments for interim periods and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company. The Company uses the exit price notion in calculating the fair values of financial instruments not measured at fair value on a recurring basis. The carrying values and estimated fair values of the Company's financial instruments as of March 31, 2023 and December 31, 2022 are as follows (dollars in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 35,281 $ 35,281 $ - $ - $ 35,281 Available for sale securities 492,760 - 492,760 - 492,760 Restricted securities 5,750 - 5,750 - 5,750 Loans, net 932,185 - - 893,836 893,836 Bank owned life insurance 38,804 - 38,804 - 38,804 Accrued interest receivable 4,720 - 2,008 2,712 4,720 Interest rate swap asset - - - - - Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,227,541 $ - $ 1,227,541 $ - $ 1,227,541 Certificates of deposit 169,719 - 170,307 - 170,307 Junior subordinated debt, net 3,424 - 3,424 - 3,424 Accrued interest payable 637 - 637 - 637 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 40,136 $ 40,136 $ - $ - $ 40,136 Available for sale securities 538,186 - 538,186 - 538,186 Restricted securities 5,137 - 5,137 - 5,137 Loans, net 930,863 - - 890,929 890,929 Assets held for sale 965 - 965 - 965 Bank owned life insurance 38,552 - 38,552 - 38,552 Accrued interest receivable 4,879 - 2,265 2,614 4,879 Interest rate swap asset 506 - 506 - 506 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,363,232 $ - $ 1,363,232 $ - $ 1,363,232 Certificates of deposit 115,106 - 109,260 - 109,260 Junior subordinated debt, net 3,413 - 3,413 - 3,413 Accrued interest payable 157 - 157 - 157 The Company assumes interest rate risk (the risk that general interest rate levels will change) as a result of its normal operations. Consequently, the fair values of the Company’s financial instruments will fluctuate when interest rate levels change, and that change may be either favorable or unfavorable to the Company. Management attempts to match maturities of assets and liabilities to the extent believed necessary to minimize interest rate risk; however, borrowers with fixed rate obligations are less likely to prepay in a rising rate environment and more likely to prepay in a falling rate environment. Conversely, depositors who are receiving fixed rates are more likely to withdraw funds before maturity in a rising rate environment and less likely to do so in a falling rate environment. Management monitors rates and maturities of assets and liabilities and attempts to minimize interest rate risk by adjusting terms of new loans and deposits and by investing in securities with terms that mitigate the Company’s overall interest rate risk. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2023 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Other Comprehensive Income (Loss) | Note 11. Other Comprehensive Income (Loss) The following table presents the changes in each component of accumulated other comprehensive income (loss) as of March 31, 2023 and March 31, 2022 (dollars in thousands). Securities AFS Interest Rate Swap Total Accumulated other comprehensive income (loss) at December 31, 2022 $ ( 49,024 ) $ 400 $ ( 48,624 ) Other comprehensive income (loss) arising during the period 7,605 ( 46 ) 7,559 Related income tax effects ( 1,597 ) 9 ( 1,588 ) 6,008 ( 37 ) 5,971 Reclassification into net income 206 ( 460 ) ( 254 ) Related income tax effects ( 43 ) 97 54 163 ( 363 ) ( 200 ) Accumulated other comprehensive income (loss) at March 31, 2023 $ ( 42,853 ) $ — $ ( 42,853 ) Securities AFS Interest Rate Swap Total Accumulated other comprehensive income (loss) at December 31, 2021 $ ( 2,164 ) $ ( 47 ) $ ( 2,211 ) Other comprehensive income (loss) arising during the period ( 24,871 ) 276 ( 24,595 ) Related income tax effects 5,223 ( 58 ) 5,165 ( 19,648 ) 218 ( 19,430 ) Accumulated other comprehensive income (loss) at March 31, 2022 $ ( 21,812 ) $ 171 $ ( 21,641 ) |
Derivatives Instruments and Hed
Derivatives Instruments and Hedging Activities | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivatives Instruments and Hedging Activities | Note 12. Derivative Instruments and Hedging Activities The Company uses derivative financial instruments primarily to manage risks to the Company associated with changing interest rates, and to assist customers with their risk management objectives. The Company designates certain interest rate swaps as hedging instruments in qualifying cash flow hedges. The changes in fair value of these designated hedging instruments is reported as a component of other comprehensive income. Customer accommodation loan swaps are derivative contracts that are not designated in a qualifying hedging relationship. Cash flow hedges . The Company designates interest rate swaps as cash flow hedges when they are used to manage exposure to variability in cash flows on variable rate borrowings such as the Company’s junior subordinated debt. These interest rate swaps are derivative financial instruments that manage the risk of variability in cash flows by exchanging variable-rate interest payments on a notional amount of the Company’s borrowings for fixed-rate interest payments. Interest rate swaps designated as cash flow hedges are expected to be highly effective in offsetting the effect of changes in interest rates on the amount of variable-rate interest payments, and the Company assesses the effectiveness of each hedging relationship quarterly. If the Company determines that a cash flow hedge is no longer highly effective, future changes in the fair value of the hedging instrument would be reported in earnings. At December 31, 2022 , the Company had a designated cash flow hedge to manage its exposure to variability in cash flows on one variable rate borrowing through 2036. In anticipation of terminating the borrowing position in the current year, such hedge position was liquidated in the first quarter of 2023 for a gain of $ 460 thousand. There are no other hedges in place as of March 31, 2023. Unrealized gains or losses recorded in other comprehensive income (loss) related to cash flow hedges are reclassified into earnings in the same period(s) during which the hedged interest payments affect earnings. When a designated hedging instrument is terminated and the hedged interest payments remain probable of occurring, any remaining unrecognized gain or loss in other comprehensive income is reclassified into earnings in the period(s) during which the forecasted interest payments affect earnings. Amounts reclassified into earnings and interest receivable or payable under designated interest rate swaps are reported in interest expense. The Company does not expect any unrealized losses related to cash flow hedges to be reclassified into earnings in the next twelve months. Cash collateral held at other banks for swaps was $ 580 thousand as of December 31, 2022. Related to the liquidation of the hedge as noted above, the cash collateral was returned to the Company. Collateral was dependent on the market valuation of the underlying hedges. The follow table summarizes the Company’s deriva tive instruments as of December 31, 2022 (dollars in thousands): December 31, 2022 Derivatives designated as hedging instruments Notional/ Contract Amount Fair Value Fair Value Balance Sheet Location Expiration Date Interest rate forward swap - cash flow $ 4,000 $ 506 Junior subordinated debt 6/15/2031 |
Segment Reporting
Segment Reporting | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Segment Reporting | Note 13. Segment Reporting For the financial periods noted in this report, the Company has four reportable segments. Each reportable segment is a strategic business unit that offers different products and services. They are managed separately, because each segment appeals to different markets and, accordingly, require different technology and marketing strategies. The accounting policies of the segments are the same as those described in the summary of significant accounting policies provided earlier in this report. The four reportable segments are: • Bank - The commercial banking segment involves making loans and generating deposits from individuals, businesses and charitable organizations. Loan fee income, service charges from deposit accounts, and other non-interest-related fees, such as fees for debit cards and ATM usage and fees for treasury management services, generate additional income for the Bank segment. • Sturman Wealth Advisors – Sturman Wealth Advisors, formerly known as VNB Investment Services, offered wealth management and investment advisory services. Revenue for this segment was generated primarily from investment advisory and financial planning fees, with a small portion attributable to brokerage commissions. The Bank sold this business line effective December 19, 2022. • VNB Trust & Estate Services – VNB Trust & Estate Services offers corporate trustee services, trust and estate administration, IRA administration and custody services. Revenue for this segment is generated from administration, service and custody fees, as well as management fees that are derived from Assets Under Management. Investment management services currently are offered through in-house and third-party managers. • Masonry Capital - Masonry Capital offers investment management services for separately managed accounts and a private investment fund employing a value-based, catalyst-driven investment strategy. Revenue for this segment is generated from management fees that are derived from Assets Under Management and incentive income that is based on the investment returns generated on performance-based Assets Under Management. Segment information for the three months ended March 31, 2023 and 2022 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of VNB Trust & Estate Services are reported at the Bank level and the assets of Sturman Wealth Advisors were reported at the Bank level prior to the sale of the business line on December 19, 2022; also, assets specifically allocated to the lines of business other than the Bank are insignificant and are no longer provided to the chief operating decision maker. Three months ended March 31, 2023 Bank VNB Trust & Masonry Consolidated Net interest income $ 13,413 $ - $ - $ 13,413 Provision for credit losses ( 248 ) - - ( 248 ) Noninterest income 1,855 260 161 2,276 Noninterest expense 8,370 309 182 8,861 Income (loss) before income taxes 7,146 ( 49 ) ( 21 ) 7,076 Provision for (benefit from) income 1,299 ( 10 ) ( 4 ) 1,285 Net income (loss) $ 5,847 $ ( 39 ) $ ( 17 ) $ 5,791 Three months ended March 31, 2022 Bank Sturman Wealth Advisors VNB Trust & Masonry Consolidated Net interest income $ 11,425 $ - $ - $ - $ 11,425 Provision for (recovery of) loan losses 148 - - - 148 Noninterest income 1,534 216 2,831 206 4,787 Noninterest expense 8,821 166 922 186 10,095 Income before income taxes 3,990 50 1,909 20 5,969 Provision for income taxes 630 10 401 4 1,045 Net income $ 3,360 $ 40 $ 1,508 $ 16 $ 4,924 |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation: The unaudited consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information. Accordingly, the unaudited consolidated financial statements do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring items) considered necessary for a fair presentation have been included. The statements should be read in conjunction with the Notes to Consolidated Financial Statements included in the Company’s Form 10-K for the year ended December 31, 2022 . |
Nature of Operations | Nature of Operations: The accompanying unaudited consolidated financial statements include the accounts of the Company, and its subsidiaries Virginia National Bank and Masonry Capital Management, LLC, a registered investment advisor. The Bank offers a full range of banking and related financial services to meet the needs of individuals, businesses and charitable organizations, including the fiduciary services of VNB Trust and Estate Services. Until the sale of the business line on December 19, 2022, the Bank also offered, through networking agreements with third parties, investment advisory and other investment services under Sturman Wealth Advisors. All significant intercompany balances and transactions have been eliminated in consolidation. |
Basis of Presentation | Basis of Presentation: The preparation of financial statements in conformity with GAAP and the reporting guidelines prescribed by regulatory authorities requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the ACL, accounting for business combinations, including loans acquired in the business combination, ACL on individually evaluated loans, goodwill impairment, credit losses of securities, other intangible assets, and fair value measurements. Operating results for the three months ended March 31, 2023 are not necessarily indicative of the results that may be expected for the year ending December 31, 2023 . |
Reclassifications | Reclassifications: If needed, certain previously reported amounts have been reclassified to conform to current period presentation. No such reclassifications were significant. |
Recent Significant Accounting Pronouncements and Adoption of New Accounting Standards | Recent Significant Accounting Pronouncements Investments in Tax Credit Structures - In March 2023, the FASB issued ASU 2023-02, “Investments—Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method”. These amendments allow reporting entities to elect to account for qualifying tax equity investments using the proportional amortization method, regardless of the program giving rise to the related income tax credits. The ASU is effective for public business entities for fiscal years beginning after December 15, 2023, including interim periods within those fiscal years. Early adoption is permitted for all entities in any interim period. The Company does not expect the adoption of ASU 2023-02 to have a material impact on its consolidated financial statements. LIBOR and Other Reference Rates - In December 2022, the FASB issued ASU 2022-06, “Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848”. ASU 2022-06 extends the period of time preparers can utilize the reference rate reform relief guidance in Topic 848. The objective of the guidance in Topic 848 is to provide relief during the temporary transition period, so the FASB included a sunset provision within Topic 848 based on expectations of when the LIBOR would cease being published. In 2021, the UK Financial Conduct Authority (FCA) delayed the intended cessation date of certain tenors of USD LIBOR to June 30, 2023. To ensure the relief in Topic 848 covers the period of time during which a significant number of modifications may take place, the ASU defers the sunset date of Topic 848 from December 31, 2022, to December 31, 2024, after which entities will no longer be permitted to apply the relief in Topic 848. The ASU is effective for all entities upon issuance. In March 2020, the FASB issued ASU No. 2020-04 “Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” These amendments provide temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. Subsequently, in January 2021, the FASB issued ASU No. 2021-01 “Reference Rate Reform (Topic 848): Scope.” This ASU clarifies that certain optional expedients and exceptions in Topic 848 for contract modifications and hedge accounting apply to derivatives that are affected by the discounting transition. The ASU also amends the expedients and exceptions in Topic 848 to capture the incremental consequences of the scope clarification and to tailor the existing guidance to derivative instruments affected by the discounting transition. An entity may elect to apply ASU No. 2021-01 on contract modifications that change the interest rate used for margining, discounting, or contract price alignment retrospectively as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications from any date within the interim period that includes or is subsequent to January 7, 2021, up to the date that financial statements are available to be issued. An entity may elect to apply ASU No. 2021-01 to eligible hedging relationships existing as of the beginning of the interim period that includes March 12, 2020, and to new eligible hedging relationships entered into after the beginning of the interim period that includes March 12, 2020. The Company has identified all loans that are directly or indirectly impacted by LIBOR. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company's financial position, results of operations or cash flows. Adoption of New Accounting Standards Financial Instruments – Credit Losses - On January 1, 2023, the Company adopted ASU 2016-13, “Financial Instruments – Credit Losses: Measurement of Credit Losses on Financial Instruments," and ASU 2022-02, “Financial Instruments-Credit Losses, Troubled Debt Restructurings and Vintage Disclosures,” collectively referred to as ASC 326. This standard, in part, replaced the incurred loss methodology with an expected loss methodology that is referred to as the current expected credit loss ("CECL") methodology. ASC 326 requires an estimate of credit losses for the remaining estimated life of the financial assets using historical experience, current conditions, and reasonable and supportable forecasts and generally applies to financial assets measured at amortized cost, including loan receivables and held-to-maturity debt securities, and some off-balance sheet credit exposures such as unfunded commitments to extend credit. Financial assets measured at amortized cost will be presented at the net amount expected to be collected by using an allowance for credit losses. Purchased credit deteriorated loans will receive an initial allowance at the acquisition date that represents an adjustment to the amortized cost basis of the loan, with no impact to earnings. In addition, ASU 326 made changes to the accounting for available-for-sale debt securities. One change is to require credit losses to be presented as an allowance rather than as a write-down on available for sale debt securities if management does not intend to sell and does not believe that it is more likely than not, they will be required to sell. The Company adopted ASC 326 and all related subsequent amendments thereto effective January 1, 2023 using the modified retrospective approach for all financial assets measured at amortized cost and off-balance sheet credit exposures. The transition adjustment of the adoption included an increase in the ACL on loans of $ 2.5 million, which is presented as a reduction to net loans outstanding, and an increase in the ACL for unfunded loan commitments of $ 252 thousand, which is recorded within Accrued interest payable and other liabilities on the consolidated balance sheets. The Company recorded a net decrease to opening retained earnings as of January 1, 2023 of $ 1.9 million, for the cumulative effect of adopting ASC 326, which reflects the transition adjustments noted above, net of the applicable deferred tax assets recorded. Results for reporting periods beginning after January 1, 2023 are presented under ASC 326 while prior period amounts continue to be reported in accordance with previously applicable accounting standards ("Incurred Loss"). Subsequent to adoption, the Company will record adjustments to its ACL and reserve for unfunded commitments through the provision for credit losses in the consolidated statements of income. ASC 326 also replaced the Company's previous accounting policies for PCI loans and TDRs. With the adoption of ASC 326, loans previously designated as PCI loans were designated as purchased loans with credit deterioration (PCD loans). The Company adopted ASC 326 using the prospective transition approach for PCD loans that were previously identified as PCI and accounted for under ASC 310-30. On January 1, 2023, the Company's PCD loans were adjusted to reflect the addition of $ 355 thousand of expected credit losses to the amortized cost basis of the loans and a corresponding increase to the ACL. The remaining noncredit discount, the difference between the adjusted amortized cost basis and the outstanding principal balance on PCD loans, will be accreted into interest income over the estimated remaining lives of the loans using the effective interest rate method. The evaluation of the ACL will include PCD loans together with other loans that share similar risk characteristics, rather than using the separate pools that were used under PCI accounting. The adoption of ASC 326 also replaced previous TDR accounting guidance, and the evaluation of the ACL will include loans previously designated as TDRs together with other loans that share similar risk characteristics. The adoption of ASC 326 did not affect the carrying value of debt securities or the amount of unrealized gains and losses recorded in accumulated other comprehensive loss. Upon adoption of ASC 326, the Company did not have any securities included in its portfolio where OTTI had previously been recognized or that required an ACL. Therefore, the Company determined that an ACL on AFS was not deemed material. The following table illustrates the impact of adopting ASC 326 (dollars in thousands): December 31, 2022 January 1, 2023 January 1, 2023 As Previously Reported Impact of As Reported Under ASC 326 Assets: Loans, gross $ 936,415 $ 355 $ 936,770 Allowance for credit losses: Commercial 194 ( 11 ) 183 Real estate construction and land 221 440 661 1-4 family residential mortgages 1,618 14 1,632 Commercial mortgages 2,820 1,577 4,397 Consumer 699 471 1,171 Allowance for credit losses $ 5,552 $ 2,491 $ 8,044 Loans, net $ 930,863 $ ( 2,136 ) $ 928,726 Net deferred tax asset $ 17,315 $ 499 $ 17,814 Liabilities: Reserve for credit losses on unfunded commitments 60 253 313 Total equity $ 133,416 $ ( 1,890 ) $ 131,526 Available for Sale Securities - For AFS securities, management evaluates all investments in an unrealized loss position on a quarterly basis, and more frequently when economic or market conditions warrant such evaluation. If the Company has the intent to sell the security or it is more likely than not that the Company will be required to sell the security, the security is written down to fair value and the entire loss is recorded in earnings. If either of the above criteria is not met, the Company evaluates whether the decline in fair value is the result of credit losses or other factors. In making the assessment, the Company may consider various factors including the extent to which fair value is less than amortized cost, performance on any underlying collateral, downgrades in the ratings of the security by a rating agency, the failure of the issuer to make scheduled interest or principal payments and adverse conditions specifically related to the security. If the assessment indicates that a credit loss exists, the present value of cash flows expected to be collected are compared to the amortized cost basis of the security and any excess is recorded as an ACL, limited by the amount that the fair value is less than the amortized cost basis. Any amount of unrealized loss that has not been recorded through an ACL is recognized in other comprehensive income. Changes in the ACL are recorded as provision for (or reversal of) credit loss expense. Losses are charged against the ACL when management believes an AFS security is confirmed to be uncollectible or when either of the criteria regarding intent or requirement to sell is met. At March 31, 2023, there was no ACL related to the AFS portfolio. Loans - Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at amortized cost. Amortized cost is the principal balance outstanding, net of purchase premiums and discounts and deferred fees and costs. Accrued interest receivable related to loans totaled $ 4.7 million at March 31, 2023 and was reported in Accrued interest receivable and other assets on the consolidated balance sheets. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using methods that approximate a level yield without anticipating prepayments. The accrual of interest is generally discontinued when a loan becomes 90 days past due and is not well collateralized and in the process of collection, or when management believes, after considering economic and business conditions and collection efforts, that the principal or interest will not be collectible in the normal course of business. Past due status is based on contractual terms of the loan. A loan is considered to be past due when a scheduled payment has not been received 30 days after the contractual due date. All accrued interest is reversed against interest income when a loan is placed on nonaccrual status. Interest received on such loans is accounted for using the cost-recovery method, until qualifying for return to accrual. Under the cost-recovery method, interest income is not recognized until the loan balance is reduced to zero. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current, there is a sustained period of repayment performance, and future payments are reasonably assured. Allowance for Credit Losses - Purchased Credit Deteriorated Loans - Upon adoption of ASC 326, loans that were designated as PCI loans under the previous accounting guidance were classified as PCD loans without reassessment. In future acquisitions, the Company may purchase loans, some of which may have experienced more than insignificant credit deterioration since origination. In those cases, the Company will consider internal loan grades, delinquency status and other relevant factors in assessing whether purchased loans are PCD. PCD loans are recorded at the amount paid. An initial ACL is determined using the same methodology as other loans held for investment, but with no impact to earnings. The initial ACL determined on a collective basis is allocated to individual loans. The sum of the loan's purchase price and ACL becomes its initial amortized cost basis. The difference between the initial amortized cost basis and the par value of the loan is a noncredit discount or premium, which is amortized into interest income over the life of the loan. Subsequent to initial recognition, PCD loans are subject to the same interest income recognition and impairment model as non-PCD loans, with changes to the ACL recorded through provision expense. Allowance for Credit Losses - Loans - The ACL is a valuation account that is deducted from the loans' amortized cost basis to present the net amount expected to be collected on the loans. Loans are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Expected recoveries do not exceed the aggregate of amounts previously charged-off and expected to be charged-off. Accrued interest receivable is excluded from the estimate of credit losses. The ACL represents management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. The ACL is estimated by management using relevant available information, from both internal and external sources, relating to past events, current conditions, and reasonable and supportable forecasts. The Company measures expected credit losses for loans on a pooled basis when similar risk characteristics exist. The Company has identified ten portfolio segments and calculates the ACL for each using the methodology specified below (with the major classification noted in italics) : Discounted cash flow methodology: 1. Commercial and industrial (Commercial) 2. Construction (Real estate construction and land) 3. Consumer (Consumer) 4. Commercial real estate, non-owner occupied (Commercial mortgage) 5. Commercial real estate, owner occupied (Commercial mortgage) 6. Home equity and junior liens (1-4 family residential mortgage) 7. Multifamily (Commercial mortgage) 8. Residential first lien (1-4 family residential mortgage) Remaining life methodology: 9. Minute lender (Consumer/Commercial) 10. Student loans (Consumer) Additionally, the ACL calculation includes subjective adjustments for qualitative risk factors that are likely to cause estimated credit losses to differ from historical experience. These qualitative adjustments may increase or reduce reserve levels and include: adjustments for changes in lending policies and procedures and underwriting practices; changes in national, regional and local economic conditions; changes in the nature and volume of the portfolio and terms of loans; changes in the experience, depth and ability of credit and loan operations staff; changes in the volume and severity of past due, special mention and substandard loans; changes in the quality of the loan review system; changes in the value of underlying collateral for loans that are not collateral dependent; the existence and effect of any concentrations of credit and changes in the levels of such concentrations, and the effect of other external factors such as competition, legal and regulatory requirements, on the level of estimated credit losses. Loans that do not share risk characteristics are evaluated on an individual basis and are not included in the collective analysis. The ACL on loans that are individually evaluated may be estimated based on their expected cash flows, or, in the case of loans for which repayment is expected substantially through the sale of collateral, the expected credit losses are based on the fair value of collateral at the reporting dated adjusted for selling costs as appropriate. Allowance for Credit Losses – Reserve for Unfunded Commitments - The Company records an ACL for off-balance sheet credit exposures, unless the commitments to extend credit are unconditionally cancelable, through a charge to provision for credit losses in the Company’s consolidated statements of income. The ACL for off-balance sheet credit exposures is estimated by loan segment at each balance sheet date under the current expected credit loss model using the same methodologies as portfolio loans, taking into consideration the likelihood that funding will occur as well as any third-party guarantees. The allowance for unfunded commitments is included in Accrued interest and other liabilities on the Company’s consolidated balance sheets. Accrued Interest Receivable - The Company elected not to measure an ACL for accrued interest receivable and instead elected to reverse interest income on loans or securities that are placed on nonaccrual status, which is generally when the instrument is 90 days past due, or earlier if the Company believes the collection of interest is doubtful. The Company has concluded that this policy results in the timely reversal of uncollectible interest. |
Adoption of New Accounting St_2
Adoption of New Accounting Standards (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of Impact of Adopting ASC 326 | The following table illustrates the impact of adopting ASC 326 (dollars in thousands): December 31, 2022 January 1, 2023 January 1, 2023 As Previously Reported Impact of As Reported Under ASC 326 Assets: Loans, gross $ 936,415 $ 355 $ 936,770 Allowance for credit losses: Commercial 194 ( 11 ) 183 Real estate construction and land 221 440 661 1-4 family residential mortgages 1,618 14 1,632 Commercial mortgages 2,820 1,577 4,397 Consumer 699 471 1,171 Allowance for credit losses $ 5,552 $ 2,491 $ 8,044 Loans, net $ 930,863 $ ( 2,136 ) $ 928,726 Net deferred tax asset $ 17,315 $ 499 $ 17,814 Liabilities: Reserve for credit losses on unfunded commitments 60 253 313 Total equity $ 133,416 $ ( 1,890 ) $ 131,526 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Amortized Cost and Fair Values of Securities Available For Sale | The amortized cost and fair values of securities available for sale as of March 31, 2023 and December 31, 2022 were as follows (dollars in thousands): March 31, 2023 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 196,488 $ - $ ( 1,919 ) $ 194,569 U.S. Government agencies 35,209 - ( 5,984 ) 29,225 Mortgage-backed securities/CMOs 191,012 - ( 25,384 ) 165,628 Corporate bonds 19,605 - ( 821 ) 18,784 Municipal bonds 104,690 14 ( 20,150 ) 84,554 Total Securities Available for Sale $ 547,004 $ 14 $ ( 54,258 ) $ 492,760 December 31, 2022 Gross Gross Amortized Unrealized Unrealized Fair Cost Gains (Losses) Value U.S. Government treasuries $ 245,583 $ - $ ( 3,113 ) $ 242,470 U.S. Government agencies 35,283 - ( 6,528 ) 28,755 Mortgage-backed securities/CMOs 194,964 - ( 27,888 ) 167,076 Corporate bonds 19,581 - ( 852 ) 18,729 Municipal bonds 104,831 - ( 23,675 ) 81,156 Total Securities Available for Sale $ 600,242 $ - $ ( 62,056 ) $ 538,186 |
Schedule of Unrealized Losses in the Bank's Securities Portfolio | The following table summarizes all securities with unrealized losses, segregated by length of time in a continuous unrealized loss position, for which no allowance for credit losses was recorded, at March 31, 2023, and December 31, 2022 (dollars in thousands): Less than 12 Months 12 Months or More Total March 31, 2023 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ 194,569 $ ( 1,919 ) $ - $ - $ 194,569 $ ( 1,919 ) U.S. Government agencies 2,972 ( 201 ) 26,253 ( 5,783 ) 29,225 ( 5,984 ) Mortgage-backed/CMOs 21,722 ( 897 ) 143,905 ( 24,487 ) 165,627 ( 25,384 ) Corporate bonds 15,237 ( 588 ) 3,547 ( 233 ) 18,784 ( 821 ) Municipal bonds 5,935 ( 245 ) 75,738 ( 19,905 ) 81,673 ( 20,150 ) $ 240,435 $ ( 3,850 ) $ 249,443 $ ( 50,408 ) $ 489,878 $ ( 54,258 ) Less than 12 Months 12 Months or More Total December 31, 2022 Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses U.S. Government treasuries $ 242,470 $ ( 3,113 ) $ - $ - $ 242,470 $ ( 3,113 ) U.S. Government agencies 4,285 ( 620 ) 24,218 ( 5,908 ) 28,503 ( 6,528 ) Mortgage-backed/CMOs 55,396 ( 6,010 ) 111,689 ( 21,878 ) 167,085 ( 27,888 ) Corporate bonds 18,729 ( 852 ) - - 18,729 ( 852 ) Municipal bonds 44,117 ( 8,001 ) 35,964 ( 15,674 ) 80,081 ( 23,675 ) $ 364,997 $ ( 18,596 ) $ 171,871 $ ( 43,460 ) $ 536,868 $ ( 62,056 ) |
Schedule of Amortized Cost and Fair Values of Securities Available For Sale Based upon Contractual Maturities and by Major Investment Categories | The amortized cost and fair value of AFS debt securities at March 31, 2023 are presented below based upon contractual maturities, by major investment categories (dollars in thousands). Expected maturities may differ from contractual maturities because issuers have the right to call or prepay obligations. Amortized Cost Fair Value U.S. Government treasuries One year or less $ 145,203 $ 144,365 After one year to five years 51,285 50,204 $ 196,488 $ 194,569 U.S. Government agencies After one year to five years $ 4,835 $ 4,289 After five years to ten years 26,374 21,995 Ten years or more 4,000 2,941 $ 35,209 $ 29,225 Mortgage-backed securities/CMOs One year or less $ 4,356 $ 4,249 After one year to five years 6,483 6,116 After five years to ten years 3,254 2,967 Ten years or more 176,919 152,296 $ 191,012 $ 165,628 Corporate bonds After one year to five years 19,605 18,784 $ 19,605 $ 18,784 Municipal bonds After one year to five years $ 3,059 $ 2,963 After five years to ten years 19,983 18,462 Ten years or more 81,648 63,129 $ 104,690 $ 84,554 Total Debt Securities Available for Sale $ 547,004 $ 492,760 |
Loans (Tables)
Loans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Composition of Loan Portfolio by Major Loan Classifications | The composition of the loan portfolio by major loan classifications at March 31, 2023 and December 31, 2022 , stated at their face amount, net of deferred fees and costs and discounts, including fair value marks, appears below (dollars in thousands). The Company has elected to exclude accrued interest receivable, totaling $ 4.7 million as of March 31, 2023, from the amortized cost basis of loans. March 31, December 31, 2023 2022 Commercial $ 72,601 $ 71,139 Real estate construction and land 34,493 37,541 1-4 family residential mortgages 317,794 323,185 Commercial mortgages 471,602 459,125 Consumer 43,467 45,425 Total loans 939,957 936,415 Less: Allowance for credit losses ( 7,772 ) ( 5,552 ) Net loans $ 932,185 $ 930,863 |
Summary of Outstanding Principal Balance and Carrying Amount of Loans Acquired in Business Combination | (dollars in thousands): December 31, 2022 Acquired Loans - Acquired Loans - Purchased Performing Acquired Outstanding principal balance $ 43,250 $ 290,604 $ 333,854 Carrying amount: Commercial $ 630 $ 12,606 $ 13,236 Real estate construction and land 1,461 8,530 9,991 1-4 family residential mortgages 9,076 164,280 173,356 Commercial mortgages 20,828 99,206 120,034 Consumer 72 1,277 1,349 Total acquired loans $ 32,067 $ 285,899 $ 317,966 |
Summary of Changes in Accretable Yield of Loans Classified as Purchased Credit Impaired | The following table presents a summary of the changes in the accretable yield of loans classified as purchased credit impaired (dollars in thousands): Three Months Ended March 31, 2022 Accretable yield, beginning of period $ 13,742 Additions - Accretion ( 738 ) Reclassification from nonaccretable difference 2,193 Other changes, net ( 2,769 ) Accretable yield, end of period $ 12,428 |
Summary of Modified Loans to Borrowers | Loan modifications to borrowers experiencing financial difficulty (or modified loans) as of March 31, 2023 represent 0.13 % of total loans outstanding, as follows (dollars in thousands): Amortized Cost Basis % of Total Loan Type Financial Effect Rate Reduction 1-4 family residential mortgages $ 85 0.03 % Reduced the contractual interest rate from 6.125 % to 5.0 % on one loan Capitalization of PITI 1-4 family residential mortgages 488 0.15 % Capitalized PITI to back end of note on one loan; no change in maturity date Term Extension Consumer 625 1.44 % Added a weighted-average 1.87 years to the life of the loans. The monthly payments were added to the end of the original loan terms of these borrowers. Total $ 1,198 0.13 % |
Schedule of Aging of Past Due Loans | The following table shows the aging of the Company's loan portfolio, by class, at March 31, 2023 (dollars in thousands): Past Due Aging as of 30-59 Days 60-89 Days 90 Days or More Past Due and Still Accruing Nonaccrual Loans Current Loans Total Loans Commercial $ - $ - $ - $ - $ 72,601 $ 72,601 Real estate construction and land - - - - 34,493 34,493 1-4 family residential mortgages 458 189 - 728 316,419 317,794 Commercial mortgages - - - 500 471,102 471,602 Consumer loans 157 94 69 - 43,147 43,467 Total Loans $ 615 $ 283 $ 69 $ 1,228 $ 937,762 $ 939,957 The past due status of loans as of December 31, 2022 was as follows (dollars in thousands): Past Due Aging as of 30-59 Days 60-89 Days 90 Days or More Total PCI Current Total 90 Days Past Due and Still Accruing Commercial $ - $ 24 $ - $ 24 $ 630 $ 70,485 $ 71,139 $ - Real estate construction and land 287 - 75 362 1,461 35,718 37,541 - 1-4 family residential mortgages 1,176 191 598 1,965 9,076 312,144 323,185 - Commercial mortgages 330 - 646 976 20,828 437,321 459,125 646 Consumer loans 315 41 59 415 72 44,938 45,425 59 Total Loans $ 2,108 $ 256 $ 1,378 $ 3,742 $ 32,067 $ 900,606 $ 936,415 $ 705 |
Schedule of Impaired Loans Classified as Non-Accruals by Class | The following table shows the Company's amortized cost basis of loans on nonaccrual status as of March 31, 2023 and December 31, 2022 (dollars in thousands). CECL Incurred Loss March 31, 2023 December 31, 2022 Nonaccrual Loans with No Allowance Nonaccrual Loans with an Allowance Total Nonaccrual Loans Nonaccrual Loans Commercial $ - $ - $ - $ - Real estate construction and land - - - - 1-4 family residential mortgages 728 - 728 673 Commercial mortgages 446 54 500 - Consumer - - - - Total Loans $ 1,174 $ 54 $ 1,228 $ 673 |
Schedule of Loans Modified Under Terms of a TDR | The following table provides a summary, by class, of TDRs as of December 31, 2022 that continued to accrue interest under the terms of the restructuring agreement, which were considered to be performing, and TDRs that were placed in nonaccrual status which were considered to be nonperforming (dollars in thousands): Troubled debt restructurings December 31, 2022 No. of Recorded Loans Investment Performing TDRs 1-4 family residential mortgages 1 $ 88 Consumer 46 700 Total performing TDRs 47 $ 788 Nonperforming TDRs 1-4 family residential mortgages 2 $ 495 Consumer 0 - Total nonperforming TDRs 2 495 Total TDRs 49 $ 1,283 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Allowance For Loan Losses [Abstract] | |
Summary of Transactions in Allowance for Loan Losses by Major Loan Portfolio Segment | The following table shows the ACL activity by loan portfolio for the three months ended March 31, 2023 (dollars in thousands): Commercial Real Estate 1-4 family residential mortgages Commercial mortgages Consumer Total Allowance for Credit Losses: Balance as of December 31, 2022 $ 194 $ 221 $ 1,618 $ 2,820 $ 699 $ 5,552 Impact of ASC 326 adoption ( 11 ) 440 14 1,577 471 2,491 Charge-offs - - - - ( 142 ) ( 142 ) Recoveries - - 3 41 62 106 Provision for (recovery of) loan ( 7 ) ( 90 ) ( 75 ) 33 ( 96 ) ( 235 ) Balance as of March 31, 2023 $ 176 $ 571 $ 1,560 $ 4,471 $ 994 $ 7,772 The following table presents the changes in the ACL by major classification during the year ended December 31, 2022 (dollars in thousands): Commercial Real Estate Real Estate Consumer Total Allowance for Credit Losses: Balance as of beginning of year $ 252 $ 399 $ 4,478 $ 855 $ 5,984 Charge-offs ( 600 ) - - ( 655 ) ( 1,255 ) Recoveries 519 9 11 178 717 Provision for (recovery of) loan losses 23 ( 187 ) ( 51 ) 321 106 Ending Balance $ 194 $ 221 $ 4,438 $ 699 $ 5,552 Ending Balance: Individually evaluated for impairment $ - $ - $ - $ 23 $ 23 Collectively evaluated for impairment 194 221 4,438 676 5,529 Acquired loans - purchased credit - - - - - Loans: Individually evaluated for impairment $ - $ - $ 583 $ 700 $ 1,283 Collectively evaluated for impairment 70,509 36,080 751,823 44,653 903,065 Acquired loans - purchased credit impaired 630 1,461 29,904 72 32,067 Ending Balance $ 71,139 $ 37,541 $ 782,310 $ 45,425 $ 936,415 |
Summary of Provision for Credit Losses | The following table presents a breakdown of the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended March 31, 2023 March 31, 2022 Provision for credit losses: Provision (recovery) for loans $ ( 235 ) $ 148 Provision (recovery) for unfunded commitments ( 13 ) - Total $ ( 248 ) $ 148 |
Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses, and Related ACL Allocated to Loans | The following table presents the Company's amortized cost basis of collateral dependent loans, which are individually evaluated to determine expected credit losses, and the related ACL allocated to those loans as of March 31, 2023 (dollars in thousands): March 31, 2023 Real Estate Secured Loans Allowance for Credit Losses -Loans Commercial real estate - non owner occupied $ 726 $ - Residential 1-4 family real estate 757 27 Total $ 1,483 $ 27 |
Summary of Credit Quality Indicators | The following table presents the Company's recorded investment in loans by credit quality indicators by year of origination as of March 31, 2023 (dollars in thousands): March 31, 2023 Term Loans Amortized Cost Basis by Origination Year 2023 2022 2021 2020 2019 Prior Revolving Loans Total Commercial Pass $ 1,836 $ 15,324 $ 7,844 $ 9,392 $ 9,999 $ 24,511 $ 2,251 $ 71,157 Watch - 46 - - 133 11 - 190 Special Mention - - - - - 103 8 111 Substandard - 90 13 213 393 434 - 1,143 Total commercial $ 1,836 $ 15,460 $ 7,857 $ 9,605 $ 10,525 $ 25,059 $ 2,259 $ 72,601 . Real estate construction and land Pass $ 1,732 $ 12,243 $ 6,390 $ 2,448 $ 934 $ 8,696 $ - $ 32,443 Special Mention - - - - - 641 - 641 Substandard - - - - 364 1,045 - 1,409 Total real estate construction and land $ 1,732 $ 12,243 $ 6,390 $ 2,448 $ 1,298 $ 10,382 $ - $ 34,493 . 1-4 family residential mortgages Pass $ 2,497 $ 16,360 $ 59,194 $ 80,070 $ 26,432 $ 95,918 $ 25,878 $ 306,349 Watch - 728 207 402 - 4,805 1,432 7,574 Special Mention - 277 158 - - 859 - 1,294 Substandard - - 54 508 101 1,405 509 2,577 Total 1-4 family residential mortgage $ 2,497 $ 17,365 $ 59,613 $ 80,980 $ 26,533 $ 102,987 $ 27,819 $ 317,794 . Commercial mortgages Pass $ 23,894 $ 41,703 $ 47,526 $ 108,099 $ 34,858 $ 175,772 $ - $ 431,852 Watch - - 2,876 4,374 8,899 9,820 - 25,969 Special Mention - - 396 296 - 1,212 - 1,904 Substandard 159 - 1,880 2,549 1,125 6,164 - 11,877 Total commercial mortgages $ 24,053 $ 41,703 $ 52,678 $ 115,318 $ 44,882 $ 192,968 $ - $ 471,602 . Consumer Pass $ 297 $ 297 $ 507 $ 389 $ 170 $ 24,835 $ 16,648 $ 43,143 Watch - - - - - 117 13 130 Special Mention - - - - - 77 - 77 Substandard - - 30 - - 69 18 117 Total consumer $ 297 $ 297 $ 537 $ 389 $ 170 $ 25,098 $ 16,679 $ 43,467 Current period gross write-off $ - $ - $ - $ - $ - $ 142 $ - $ 142 The following represents the loan portfolio designated by the internal risk ratings assigned to each credit as of December 31, 2022 (dollars in thousands). There were no loans rated “Doubtful” as December 31, 2022. December 31, 2022 Excellent Good Pass Watch Special Sub- TOTAL Commercial $ 30,121 $ 16,058 $ 22,853 $ 992 $ 122 $ 993 $ 71,139 Real estate construction and land - - 35,258 342 532 1,409 $ 37,541 1-4 family residential mortgages - - 308,041 7,935 5,431 1,778 $ 323,185 Commercial mortgages - - 408,513 34,828 3,872 11,912 $ 459,125 Consumer 461 17,544 26,326 977 22 95 $ 45,425 Total Loans $ 30,582 $ 33,602 $ 800,991 $ 45,074 $ 9,979 $ 16,187 $ 936,415 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets | The following table summarizes the gross carrying amounts and accumulated amortization of other intangible assets (dollars in thousands): March 31, 2023 December 31, 2022 March 31, 2022 Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Gross Carrying Amount Accumulated Amortization Amortized intangible assets: Core deposit intangible $ 9,660 $ ( 3,465 ) $ 9,660 $ ( 3,074 ) $ 9,660 $ ( 1,828 ) Customer relationships intangible - - - - 773 ( 516 ) Total $ 9,660 $ ( 3,465 ) $ 9,660 $ ( 3,074 ) $ 10,433 $ ( 2,344 ) |
Schedule of Estimated Future Amortization Expense | Estimated future amortization expense as of March 31, 2023 is as follows (dollars in thousands): Core Deposit Intangible For the nine months ending December 31, 2023 $ 1,102 For the year ending December 31, 2024 1,301 For the year ending December 31, 2025 1,110 For the year ending December 31, 2026 918 For the year ending December 31, 2027 726 Thereafter 1,038 Total $ 6,195 |
Leases (Tables)
Leases (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Schedule of Lease Liability, Right-of-use Asset, Weighted Average Remaining Lease Term and Discount Rate | The following tables present information about the Company’s leases (dollars in thousands): March 31, 2023 March 31, 2022 Lease liability $ 5,968 $ 7,295 Right-of-use asset $ 6,336 $ 7,744 Weighted average remaining lease term 5.12 years 6.19 years Weighted average discount rate 2.05 % 1.98 % |
Schedule of Operating Lease Expense | Three Months Ended March 31, Lease Expense: 2023 2022 Operating lease expense $ 511 $ 445 Short-term lease expense 123 52 Total lease expense $ 634 $ 497 Cash paid for amounts included in $ 512 $ 398 |
Schedule of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows | 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): Undiscounted Cash Flow March 31, 2023 Nine months ending December 31, 2023 $ 1,030 Twelve months ending December 31, 2024 1,257 Twelve months ending December 31, 2025 1,165 Twelve months ending December 31, 2026 822 Twelve months ending December 31, 2027 724 Thereafter 1,165 Total undiscounted cash flows $ 6,163 Less: Discount ( 195 ) Lease liability $ 5,968 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of weighted average number of shares used in computing earnings per share | The table below shows the weighted average number of shares used in computing net income per common share and the effect of the weighted average number of shares of potential dilutive common stock for the three months ended March 31, 2023 and 2022. Diluted net income per share is computed based on the weighted average number of shares of common stock equivalents outstanding, to the extent dilutive. The Company’s common stock equivalents relate to outstanding common stock options. The recipients of unvested restricted shares have full voting and dividend rights, and as such, unvested restricted stock as of March 31, 2023 and March 31, 2022 is included in the calculation of basic and diluted net income per share (dollars below reported in thousands except per share data). Three Months Ended March 31, 2023 March 31, 2022 Net Weighted Per Net Weighted Per Basic net income per share $ 5,791 5,338,099 $ 1.08 $ 4,924 5,311,983 $ 0.93 Effect of dilutive stock options - 37,520 - - 31,581 ( 0.01 ) Diluted net income per share $ 5,791 5,375,619 $ 1.08 $ 4,924 5,343,564 $ 0.92 |
Stock Incentive Plans (Tables)
Stock Incentive Plans (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Shares Issued and Available Under Each Plans | A summary of the shares issued and available under each of the Plans is shown below as of March 31, 2023 . Share data and exercise price range per share have been adjusted to reflect prior issued stock dividends. Although the 2005 Plan has expired and no new grants will be issued under this plan, there were options issued before the plan expired that are still outstanding as shown below. No grants have been issued under the 2022 Plan. 2022 Plan 2014 Plan 2005 Plan Aggregate shares issuable 150,000 275,625 253,575 Options issued, net of forfeited and expired - ( 170,106 ) ( 59,870 ) Unrestricted stock issued - ( 11,635 ) - Restricted stock grants issued, net of forfeited - ( 75,853 ) - Cancelled due to Plan expiration - - ( 193,705 ) Remaining available for grant 150,000 18,031 - Stock grants issued and outstanding: Total vested and unvested shares - 87,488 - Fully vested shares - 44,415 - Option grants issued and outstanding: Total vested and unvested shares - 166,901 - Fully vested shares - 96,349 - Exercise price range - $ 23.75 to $ 42.62 - |
Summary of Stock Option Activity | Changes in the stock options outstanding related to the Plans are summarized below (dollars in thousands except per share data): March 31, 2023 Number of Options Weighted Aggregate Outstanding at January 1, 2023 168,280 $ 33.95 $ 830 Issued - - Exercised ( 1,379 ) ( 13.69 ) Expired - - Outstanding at March 31, 2023 166,901 $ 34.12 $ 739 Options exercisable at March 31, 2023 96,349 $ 35.97 $ 339 |
Schedule of Options Outstanding and Exercisable, by Exercise Price Range | Summary information pertaining to options outstanding at March 31, 2023 is shown below. Share and per share data have been adjusted to reflect the prior stock dividends issued. Options Outstanding Options Exercisable Exercise Price Number of Weighted- Weighted- Number of Weighted- $ 23.75 to $ 30.00 65,000 7.3 Years 24.65 30,600 24.90 $ 30.01 to $ 40.00 44,420 7.3 Years 36.97 19,772 37.65 $ 40.01 to $ 42.62 57,481 5.1 Years 42.62 45,977 42.62 Total 166,901 6.6 Years $ 34.12 96,349 $ 35.97 |
Summary of Changes in the Restricted Stock Grants Outstanding | Changes in the restricted stock grants outstanding during the three months ended March 31, 2023 are summarized below (dollars in thousands except per share data): March 31, 2023 Number of Weighted Aggregate Nonvested as of January 1, 2023 51,664 $ 32.05 $ 1,858 Issued - - - Vested ( 8,591 ) 32.21 ( 309 ) Forfeited - - - Nonvested at March 31, 2023 43,073 $ 32.02 $ 1,549 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Available for Sale Securities Measured at Fair Value on a Recurring Basis | The following tables present the balances measured at fair value on a recurring basis as of March 31, 2023 and December 31, 2022 (dollars in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 194,569 $ - $ 194,569 $ - U.S. Government agencies 29,225 - 29,225 - Mortgage-backed securities/CMOs 165,628 - 165,628 - Corporate bonds 18,784 - 18,784 - Municipal bonds 84,554 - 84,554 - Total securities available for sale $ 492,760 $ - $ 492,760 $ - Interest rate swap asset - - - - Total assets at fair value $ 492,760 $ - $ 492,760 $ - Fair Value Measurements at December 31, 2022 Using: Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: U.S. Government treasuries $ 242,470 $ - $ 242,470 $ - U.S. Government agencies 28,755 - 28,755 - Mortgage-backed securities/CMOs 167,076 - 167,076 - Corporate bonds 18,729 - 18,729 Municipal bonds 81,156 - 81,156 - Total securities available for sale $ 538,186 $ - $ 538,186 $ - Liabilities: Interest rate swap liabilities $ 506 $ - $ 506 $ - Total liabilities at fair value $ 538,692 $ - $ 538,692 $ - |
Summary of Assets Measured at Fair Value on a Nonrecurring Basis | The following table presents the Company's assets that were measured at fair value on a nonrecurring basis as of March 31, 2023 (dollars in thousands). There were no such assets to report as of December 31, 2022. Quoted Prices Significant Significant Description Balance (Level 1) (Level 2) (Level 3) Assets: Individually evaluated loans $ 28 $ - $ - $ 28 Description Fair Value Valuation Technique Unobservable Inputs Discount Rate Assets: Individually evaluated loans $ 28 Market comparables Discount applied to recent appraisal 20.0 % |
Schedule of the Carrying Values and Estimated Fair Values of the Bank's Financial Instruments | The carrying values and estimated fair values of the Company's financial instruments as of March 31, 2023 and December 31, 2022 are as follows (dollars in thousands): Fair Value Measurements at March 31, 2023 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 35,281 $ 35,281 $ - $ - $ 35,281 Available for sale securities 492,760 - 492,760 - 492,760 Restricted securities 5,750 - 5,750 - 5,750 Loans, net 932,185 - - 893,836 893,836 Bank owned life insurance 38,804 - 38,804 - 38,804 Accrued interest receivable 4,720 - 2,008 2,712 4,720 Interest rate swap asset - - - - - Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,227,541 $ - $ 1,227,541 $ - $ 1,227,541 Certificates of deposit 169,719 - 170,307 - 170,307 Junior subordinated debt, net 3,424 - 3,424 - 3,424 Accrued interest payable 637 - 637 - 637 Fair Value Measurements at December 31, 2022 Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Carrying value Level 1 Level 2 Level 3 Fair Value Assets Cash and cash equivalent $ 40,136 $ 40,136 $ - $ - $ 40,136 Available for sale securities 538,186 - 538,186 - 538,186 Restricted securities 5,137 - 5,137 - 5,137 Loans, net 930,863 - - 890,929 890,929 Assets held for sale 965 - 965 - 965 Bank owned life insurance 38,552 - 38,552 - 38,552 Accrued interest receivable 4,879 - 2,265 2,614 4,879 Interest rate swap asset 506 - 506 - 506 Liabilities Demand deposits and interest-bearing transaction and money market accounts $ 1,363,232 $ - $ 1,363,232 $ - $ 1,363,232 Certificates of deposit 115,106 - 109,260 - 109,260 Junior subordinated debt, net 3,413 - 3,413 - 3,413 Accrued interest payable 157 - 157 - 157 |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Other Comprehensive Income (Loss), Tax [Abstract] | |
Schedule of Components of Accumulated Other Comprehensive Income (Loss) | The following table presents the changes in each component of accumulated other comprehensive income (loss) as of March 31, 2023 and March 31, 2022 (dollars in thousands). Securities AFS Interest Rate Swap Total Accumulated other comprehensive income (loss) at December 31, 2022 $ ( 49,024 ) $ 400 $ ( 48,624 ) Other comprehensive income (loss) arising during the period 7,605 ( 46 ) 7,559 Related income tax effects ( 1,597 ) 9 ( 1,588 ) 6,008 ( 37 ) 5,971 Reclassification into net income 206 ( 460 ) ( 254 ) Related income tax effects ( 43 ) 97 54 163 ( 363 ) ( 200 ) Accumulated other comprehensive income (loss) at March 31, 2023 $ ( 42,853 ) $ — $ ( 42,853 ) Securities AFS Interest Rate Swap Total Accumulated other comprehensive income (loss) at December 31, 2021 $ ( 2,164 ) $ ( 47 ) $ ( 2,211 ) Other comprehensive income (loss) arising during the period ( 24,871 ) 276 ( 24,595 ) Related income tax effects 5,223 ( 58 ) 5,165 ( 19,648 ) 218 ( 19,430 ) Accumulated other comprehensive income (loss) at March 31, 2022 $ ( 21,812 ) $ 171 $ ( 21,641 ) |
Derivatives Instruments and H_2
Derivatives Instruments and Hedging Activities (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Summary of Derivative Instruments | The follow table summarizes the Company’s deriva tive instruments as of December 31, 2022 (dollars in thousands): December 31, 2022 Derivatives designated as hedging instruments Notional/ Contract Amount Fair Value Fair Value Balance Sheet Location Expiration Date Interest rate forward swap - cash flow $ 4,000 $ 506 Junior subordinated debt 6/15/2031 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 3 Months Ended |
Mar. 31, 2023 | |
Segment Reporting [Abstract] | |
Schedule of segment reporting information | Segment information for the three months ended March 31, 2023 and 2022 is shown in the following tables (dollars in thousands). Note that asset information is not reported below, as the assets of VNB Trust & Estate Services are reported at the Bank level and the assets of Sturman Wealth Advisors were reported at the Bank level prior to the sale of the business line on December 19, 2022; also, assets specifically allocated to the lines of business other than the Bank are insignificant and are no longer provided to the chief operating decision maker. Three months ended March 31, 2023 Bank VNB Trust & Masonry Consolidated Net interest income $ 13,413 $ - $ - $ 13,413 Provision for credit losses ( 248 ) - - ( 248 ) Noninterest income 1,855 260 161 2,276 Noninterest expense 8,370 309 182 8,861 Income (loss) before income taxes 7,146 ( 49 ) ( 21 ) 7,076 Provision for (benefit from) income 1,299 ( 10 ) ( 4 ) 1,285 Net income (loss) $ 5,847 $ ( 39 ) $ ( 17 ) $ 5,791 Three months ended March 31, 2022 Bank Sturman Wealth Advisors VNB Trust & Masonry Consolidated Net interest income $ 11,425 $ - $ - $ - $ 11,425 Provision for (recovery of) loan losses 148 - - - 148 Noninterest income 1,534 216 2,831 206 4,787 Noninterest expense 8,821 166 922 186 10,095 Income before income taxes 3,990 50 1,909 20 5,969 Provision for income taxes 630 10 401 4 1,045 Net income $ 3,360 $ 40 $ 1,508 $ 16 $ 4,924 |
Adoption of New Accounting St_3
Adoption of New Accounting Standards - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Jan. 01, 2023 | Mar. 31, 2023 | Dec. 31, 2022 | [1] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in ACL | $ 2,491 | |||
Adjustment to retained earnings | 65,621 | $ 63,482 | ||
Accrued interest receivable | $ 4,700 | |||
ASU 2016-13 [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Adjustment to retained earnings | $ 1,900 | |||
ASU 2016-13 [Member] | Loans [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in ACL | 2,500 | |||
ASU 2016-13 [Member] | Unfunded Loan Commitment [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Increase in ACL | 252,000 | |||
PCD Loans [Member] | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Expected credit losses to amortized cost basis of loans | $ 355 | |||
[1] Derived from audited Consolidated Financial Statements |
Adoption of New Accounting St_4
Adoption of New Accounting Standards - Schedule of Impact of Adopting ASC 326 (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Jan. 01, 2023 | Dec. 31, 2022 | |
Assets [Abstract] | ||||
Loans, gross | $ 939,957 | $ 936,415 | [1] | |
Allowance for credit losses | 7,772 | 5,552 | [1] | |
Loans, net | 932,185 | 930,863 | [1] | |
Net deferred tax asset | 16,129 | 17,315 | [1] | |
Liabilities [Abstract] | ||||
Total equity | $ 1,571,528 | 1,623,359 | [1] | |
As Previously Reported (Incurred Loss) [Member] | ||||
Assets [Abstract] | ||||
Loans, gross | 936,415 | |||
Allowance for credit losses | 5,552 | |||
Loans, net | 930,863 | |||
Net deferred tax asset | 17,315 | |||
Liabilities [Abstract] | ||||
Reserve for credit losses on unfunded commitments | 60 | |||
Total equity | 133,416 | |||
Commercial [Member] | As Previously Reported (Incurred Loss) [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 194 | |||
Real Estate Construction and Land [Member] | As Previously Reported (Incurred Loss) [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 221 | |||
1-4 family residential mortgages [Member] | As Previously Reported (Incurred Loss) [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 1,618 | |||
Commercial mortgages [Member] | As Previously Reported (Incurred Loss) [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 2,820 | |||
Consumer [Member] | As Previously Reported (Incurred Loss) [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | $ 699 | |||
ASU 2016-13 [Member] | ||||
Assets [Abstract] | ||||
Loans, gross | $ 936,770 | |||
Allowance for credit losses | 8,044 | |||
Loans, net | 928,726 | |||
Net deferred tax asset | 17,814 | |||
Liabilities [Abstract] | ||||
Reserve for credit losses on unfunded commitments | 313 | |||
Total equity | 131,526 | |||
ASU 2016-13 [Member] | Impact of ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Loans, gross | 355 | |||
Allowance for credit losses | 2,491 | |||
Loans, net | (2,136) | |||
Net deferred tax asset | 499 | |||
Liabilities [Abstract] | ||||
Reserve for credit losses on unfunded commitments | 253 | |||
Total equity | (1,890) | |||
ASU 2016-13 [Member] | Commercial [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 183 | |||
ASU 2016-13 [Member] | Commercial [Member] | Impact of ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | (11) | |||
ASU 2016-13 [Member] | Real Estate Construction and Land [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 661 | |||
ASU 2016-13 [Member] | Real Estate Construction and Land [Member] | Impact of ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 440 | |||
ASU 2016-13 [Member] | 1-4 family residential mortgages [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 1,632 | |||
ASU 2016-13 [Member] | 1-4 family residential mortgages [Member] | Impact of ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 14 | |||
ASU 2016-13 [Member] | Commercial mortgages [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 4,397 | |||
ASU 2016-13 [Member] | Commercial mortgages [Member] | Impact of ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 1,577 | |||
ASU 2016-13 [Member] | Consumer [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | 1,171 | |||
ASU 2016-13 [Member] | Consumer [Member] | Impact of ASC 326 [Member] | ||||
Assets [Abstract] | ||||
Allowance for credit losses | $ 471 | |||
[1] Derived from audited Consolidated Financial Statements |
Securities (Amortized Cost and
Securities (Amortized Cost and Fair Values of Securities Available for Sale) (Details)) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | $ 547,004 | $ 600,242 | |
Gross Unrealized Gains | 14 | ||
Gross Unrealized (Losses) | (54,258) | (62,056) | |
Available for Sale, Fair Value | 492,760 | 538,186 | [1] |
U.S. Government treasuries [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 196,488 | 245,583 | |
Gross Unrealized (Losses) | (1,919) | (3,113) | |
Available for Sale, Fair Value | 194,569 | 242,470 | |
U.S. Government Agencies [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 35,209 | 35,283 | |
Gross Unrealized (Losses) | (5,984) | (6,528) | |
Available for Sale, Fair Value | 29,225 | 28,755 | |
Mortgage-backed Securities/CMOs [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 191,012 | 194,964 | |
Gross Unrealized (Losses) | (25,384) | (27,888) | |
Available for Sale, Fair Value | 165,628 | 167,076 | |
Municipal Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 104,690 | 104,831 | |
Gross Unrealized Gains | 14 | ||
Gross Unrealized (Losses) | (20,150) | (23,675) | |
Available for Sale, Fair Value | 84,554 | 81,156 | |
Corporate Bonds [Member] | |||
Debt Securities, Available-for-sale [Line Items] | |||
Amortized Cost | 19,605 | 19,581 | |
Gross Unrealized (Losses) | (821) | (852) | |
Available for Sale, Fair Value | $ 18,784 | $ 18,729 | |
[1] Derived from audited Consolidated Financial Statements |
Securities (Narrative) (Details
Securities (Narrative) (Details) | 3 Months Ended | |||
Mar. 31, 2023 USD ($) Item | Mar. 31, 2022 USD ($) | Dec. 31, 2022 USD ($) | ||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 489,878,000 | $ 536,868,000 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 287 | |||
Unrealized loss of available for sale securities | $ 54,258,000 | 62,056,000 | ||
Securities, allowance for credit losses | 0 | 0 | ||
Proceeds from the sales of securities | 49,900,000 | $ 0 | ||
Available for sale securities pre-tax loss | 206,000 | |||
Restricted securities, at cost | 5,750,000 | 5,137,000 | [1] | |
Mortgage-backed Securities/CMOs [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 165,627,000 | 167,085,000 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 120 | |||
Unrealized loss of available for sale securities | $ 25,384,000 | 27,888,000 | ||
U.S. Government Agencies [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 29,225,000 | 28,503,000 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 20 | |||
Unrealized loss of available for sale securities | $ 5,984,000 | 6,528,000 | ||
Corporate Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 18,784,000 | 18,729,000 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 11 | |||
Unrealized loss of available for sale securities | $ 821,000 | 852,000 | ||
Treasury bond [Member] | ||||
Schedule of Investments [Line Items] | ||||
Number of securities designated as available for sale securities having unrealized loss | Item | 12 | |||
Asset Pledged as Collateral without Right [Member] | Deposits [Member] | ||||
Schedule of Investments [Line Items] | ||||
Securities pledged to secure deposits and facilitate borrowing | $ 5,200,000 | 5,100,000 | ||
Municipal Bonds [Member] | ||||
Schedule of Investments [Line Items] | ||||
Available-for-sale securities, continuous unrealized loss position, fair value | $ 81,673,000 | 80,081,000 | ||
Number of securities designated as available for sale securities having unrealized loss | Item | 124 | |||
Unrealized loss of available for sale securities | $ 20,150,000 | $ 23,675,000 | ||
[1] Derived from audited Consolidated Financial Statements |
Securities (Schedule of Unreali
Securities (Schedule of Unrealized Losses) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | $ 240,435 | $ 364,997 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (3,850) | (18,596) |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 249,443 | 171,871 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (50,408) | (43,460) |
Total, Estimated Fair value | 489,878 | 536,868 |
Total, Unrealized losses | (54,258) | (62,056) |
U.S. Government treasuries [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 194,569 | 242,470 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (1,919) | (3,113) |
Total, Estimated Fair value | 194,569 | 242,470 |
Total, Unrealized losses | (1,919) | (3,113) |
U.S. Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 2,972 | 4,285 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (201) | (620) |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 26,253 | 24,218 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (5,783) | (5,908) |
Total, Estimated Fair value | 29,225 | 28,503 |
Total, Unrealized losses | (5,984) | (6,528) |
Mortgage-backed Securities/CMOs [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 21,722 | 55,396 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (897) | (6,010) |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 143,905 | 111,689 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (24,487) | (21,878) |
Total, Estimated Fair value | 165,627 | 167,085 |
Total, Unrealized losses | (25,384) | (27,888) |
Corporate Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 15,237 | 18,729 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (588) | (852) |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 3,547 | |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (233) | |
Total, Estimated Fair value | 18,784 | 18,729 |
Total, Unrealized losses | (821) | (852) |
Municipal Bonds [Member] | ||
Debt Securities, Available-for-sale [Line Items] | ||
Continuous Unrealized Loss Position of Less Than 12 Months, Estimated Fair value | 5,935 | 44,117 |
Continuous Unrealized Loss Position of Less Than 12 Months, Unrealized losses | (245) | (8,001) |
Continuous Unrealized Loss Position of 12 Months or More, Estimated Fair value | 75,738 | 35,964 |
Continuous Unrealized Loss Position of 12 Months or More, Unrealized losses | (19,905) | (15,674) |
Total, Estimated Fair value | 81,673 | 80,081 |
Total, Unrealized losses | $ (20,150) | $ (23,675) |
Securities (Schedule of Amortiz
Securities (Schedule of Amortized Cost and Fair Values of Securities Available For Sale Based upon Contractual Maturities and by Major Investment Categories) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Amortized Cost | ||
Amortized Cost | $ 547,004 | $ 600,242 |
Fair Value | ||
Total Securities Available for Sale | 492,760 | |
U.S. Government treasuries [Member] | ||
Amortized Cost | ||
One year or less | 145,203 | |
After one year to five years | 51,285 | |
Amortized Cost | 196,488 | 245,583 |
Fair Value | ||
One year or less | 144,365 | |
After one year to five years | 50,204 | |
Total Securities Available for Sale | 194,569 | |
U.S. Government Agencies [Member] | ||
Amortized Cost | ||
After one year to five years | 4,835 | |
After five years to ten years | 26,374 | |
Ten years or more | 4,000 | |
Amortized Cost | 35,209 | 35,283 |
Fair Value | ||
After one year to five years | 4,289 | |
After five years to ten years | 21,995 | |
Ten years or more | 2,941 | |
Total Securities Available for Sale | 29,225 | |
Mortgage-backed Securities/CMOs [Member] | ||
Amortized Cost | ||
One year or less | 4,356 | |
After one year to five years | 6,483 | |
After five years to ten years | 3,254 | |
Ten years or more | 176,919 | |
Amortized Cost | 191,012 | 194,964 |
Fair Value | ||
One year or less | 4,249 | |
After one year to five years | 6,116 | |
After five years to ten years | 2,967 | |
Ten years or more | 152,296 | |
Total Securities Available for Sale | 165,628 | |
Corporate Bonds [Member] | ||
Amortized Cost | ||
After one year to five years | 19,605 | |
Amortized Cost | 19,605 | 19,581 |
Fair Value | ||
After one year to five years | 18,784 | |
Total Securities Available for Sale | 18,784 | |
Municipal Bonds [Member] | ||
Amortized Cost | ||
After one year to five years | 3,059 | |
After five years to ten years | 19,983 | |
Ten years or more | 81,648 | |
Amortized Cost | 104,690 | $ 104,831 |
Fair Value | ||
After one year to five years | 2,963 | |
After five years to ten years | 18,462 | |
Ten years or more | 63,129 | |
Total Securities Available for Sale | $ 84,554 |
Loans (Schedule of Composition
Loans (Schedule of Composition of Loan Portfolio by Major Loan Classifications) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 939,957 | $ 936,415 | |
Less: Allowance for credit losses | (7,772) | (5,552) | [1] |
Loans, net | 932,185 | 930,863 | [1] |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 72,601 | 71,139 | |
Real Estate Construction and Land [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 34,493 | 37,541 | |
1-4 family residential mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 317,794 | 323,185 | |
Commercial mortgages [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 471,602 | 459,125 | |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 43,467 | $ 45,425 | |
[1] Derived from audited Consolidated Financial Statements |
Loans (Narrative) (Details)
Loans (Narrative) (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 USD ($) Loan | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) | Apr. 01, 2021 USD ($) | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Accrued interest receivable | $ 4,700 | |||
Deposit account overdrafts | 285,000 | $ 180,000 | ||
Unamortized premium | 1,400 | 1,400 | ||
Net deferred loan costs (fees) | (854) | (755) | ||
Due to collateral value shortfall | $ 27 | |||
Number of non accrual loans required allowance of credit loss | Loan | 1 | |||
Percentage to total financing receivables | 0.13% | |||
Loans modified | 1,283 | $ 0 | ||
Charged off | $ 142 | 1,255 | ||
Performing Loans [Member] | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans modified | 788 | |||
Purchased Impaired Loan [Member] | Fauquier Bankshares, Inc [Member] | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loan receivable at fair value net | $ 14,100 | $ 23,100 | ||
Student Loans Purchased [Member] | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Number of modified student loans | Loan | 2 | |||
Loans modified | $ 60 | |||
1-4 family residential-purchased [Member] | Performing Loans [Member] | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Loans modified | $ 88 |
Loans (Summary of Outstanding P
Loans (Summary of Outstanding Principal Balance and Carrying Amount of Loans Acquired in Business Combination) (Details) - Fauquier Bankshares, Inc [Member] $ in Thousands | Dec. 31, 2022 USD ($) |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Contractual principal and interest at acquisition | $ 333,854 |
Total acquired loans | 317,966 |
Acquired Loans - Purchased Credit Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Contractual principal and interest at acquisition | 43,250 |
Total acquired loans | 32,067 |
Acquired Loans - Purchased Performing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Contractual principal and interest at acquisition | 290,604 |
Total acquired loans | 285,899 |
Commercial [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 13,236 |
Commercial [Member] | Acquired Loans - Purchased Credit Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 630 |
Commercial [Member] | Acquired Loans - Purchased Performing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 12,606 |
Real Estate Construction and Land [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 9,991 |
Real Estate Construction and Land [Member] | Acquired Loans - Purchased Credit Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 1,461 |
Real Estate Construction and Land [Member] | Acquired Loans - Purchased Performing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 8,530 |
1-4 Family Residential Mortgages [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 173,356 |
1-4 Family Residential Mortgages [Member] | Acquired Loans - Purchased Credit Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 9,076 |
1-4 Family Residential Mortgages [Member] | Acquired Loans - Purchased Performing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 164,280 |
Commercial Mortgages [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 120,034 |
Commercial Mortgages [Member] | Acquired Loans - Purchased Credit Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 20,828 |
Commercial Mortgages [Member] | Acquired Loans - Purchased Performing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 99,206 |
Consumer [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 1,349 |
Consumer [Member] | Acquired Loans - Purchased Credit Impaired [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | 72 |
Consumer [Member] | Acquired Loans - Purchased Performing [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Total acquired loans | $ 1,277 |
Loans - (Schedule of Aging of P
Loans - (Schedule of Aging of Past Due Loans) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable Recorded Investment Past Due [Line Items] | ||
90 Days Past Due and Still Accruing | $ 69 | $ 705 |
Nonaccrual Loans | 1,228 | 673 |
PCI | 32,067 | |
Total Loans | 939,957 | 936,415 |
30-59 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 615 | 2,108 |
60-89 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 283 | 256 |
90 Days or More [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,378 | |
Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 3,742 | |
Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 937,762 | 900,606 |
Commercial [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 72,601 | |
PCI | 630 | |
Total Loans | 72,601 | 71,139 |
Commercial [Member] | 60-89 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 24 | |
Commercial [Member] | 90 Days or More [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Commercial [Member] | Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 24 | |
Commercial [Member] | Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 72,601 | 70,485 |
Real Estate Construction and Land [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 34,493 | |
PCI | 1,461 | |
Total Loans | 34,493 | 37,541 |
Real Estate Construction and Land [Member] | 30-59 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 287 | |
Real Estate Construction and Land [Member] | 90 Days or More [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 75 | |
Real Estate Construction and Land [Member] | Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 362 | |
Real Estate Construction and Land [Member] | Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 34,493 | 35,718 |
1-4 family residential mortgages [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 317,794 | |
Nonaccrual Loans | 728 | |
PCI | 9,076 | |
Total Loans | 317,794 | 323,185 |
1-4 family residential mortgages [Member] | 30-59 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 458 | 1,176 |
1-4 family residential mortgages [Member] | 60-89 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 189 | 191 |
1-4 family residential mortgages [Member] | 90 Days or More [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 598 | |
1-4 family residential mortgages [Member] | Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 1,965 | |
1-4 family residential mortgages [Member] | Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 316,419 | 312,144 |
Commercial Mortgages [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 471,602 | |
90 Days Past Due and Still Accruing | 646 | |
Nonaccrual Loans | 500 | |
PCI | 20,828 | |
Total Loans | 471,602 | 459,125 |
Commercial Mortgages [Member] | 30-59 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 330 | |
Commercial Mortgages [Member] | 60-89 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | ||
Commercial Mortgages [Member] | 90 Days or More [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 646 | |
Commercial Mortgages [Member] | Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 976 | |
Commercial Mortgages [Member] | Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 471,102 | 437,321 |
Consumer Loans [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 43,467 | |
90 Days Past Due and Still Accruing | 69 | 59 |
PCI | 72 | |
Total Loans | 43,467 | 45,425 |
Consumer Loans [Member] | 30-59 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 157 | 315 |
Consumer Loans [Member] | 60-89 Days [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 94 | 41 |
Consumer Loans [Member] | 90 Days or More [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 59 | |
Consumer Loans [Member] | Past Due [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | 415 | |
Consumer Loans [Member] | Current [Member] | ||
Financing Receivable Recorded Investment Past Due [Line Items] | ||
Total Past Due | $ 43,147 | $ 44,938 |
Loans - (Summary of Modified Lo
Loans - (Summary of Modified Loans to Borrowers) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Amortized Costs Basis | $ 1,198 |
Percentage of Total Loan Type | 0.13% |
Principal Interest Taxes and Insurance [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Amortized Costs Basis | $ 488 |
Percentage of Total Loan Type | 0.15% |
Extended Maturity [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Amortized Costs Basis | $ 625 |
Percentage of Total Loan Type | 1.44% |
Weighted average term modifciation | 1 year 10 months 13 days |
1-4 Family Residential Mortgages [Member] | Contractual Interest Rate Reduction [Member] | |
Financing Receivable, Allowance for Credit Loss [Line Items] | |
Amortized Costs Basis | $ 85 |
Percentage of Total Loan Type | 0.03% |
Contractual interest rate decrease from modification | 6.125% |
Contractual interest rate increase from modification | 5% |
Loans (Summary of Changes in Ac
Loans (Summary of Changes in Accretable Yield of Loans Classified as Purchased Credit Impaired) (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2022 USD ($) | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Reclassification from nonaccretable difference | $ 2,193 |
Other changes, net | (2,769) |
Fauquier Bankshares, Inc [Member] | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |
Accretable yield, beginning of period | 13,742 |
Accretion | (738) |
Accretable yield, end of period | $ 12,428 |
Loans (Non-Accrual Loans by Loa
Loans (Non-Accrual Loans by Loan Classification) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual Loans with No Allowance | $ 1,174 | |
Nonaccrual Loans with an Allowance | 54 | |
Total non-accrual loans | 1,228 | $ 673 |
Commercial Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual Loans with No Allowance | 446 | |
Nonaccrual Loans with an Allowance | 54 | |
Total non-accrual loans | 500 | |
1-4 Family Residential Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Nonaccrual Loans with No Allowance | 728 | |
Total non-accrual loans | $ 728 | $ 673 |
Loans (Schedule of Troubled Deb
Loans (Schedule of Troubled Debt Restructurings) (Details) $ in Thousands | Mar. 31, 2023 Loan | Dec. 31, 2022 USD ($) | Mar. 31, 2022 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 49 | ||
Total Troubled Debt Restructurings | $ | $ 1,283 | $ 0 | |
Performing [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 47 | ||
Total Troubled Debt Restructurings | $ | 788 | ||
Performing [Member] | 1-4 Family Residential Mortgages [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 1 | ||
Total Troubled Debt Restructurings | $ | 88 | ||
Performing [Member] | Consumer [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 46 | ||
Total Troubled Debt Restructurings | $ | 700 | ||
Nonperforming [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 2 | ||
Total Troubled Debt Restructurings | $ | 495 | ||
Nonperforming [Member] | 1-4 Family Residential Mortgages [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 2 | ||
Total Troubled Debt Restructurings | $ | 495 | ||
Nonperforming [Member] | Consumer [Member] | |||
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Number of loans | Loan | 0 | ||
Total Troubled Debt Restructurings | $ |
Allowance for Credit Losses (Na
Allowance for Credit Losses (Narrative) (Details) $ in Thousands | Mar. 31, 2023 USD ($) |
Financing Receivable, Credit Quality Indicator [Line Items] | |
Specific reserve for nonaccrual status | $ 27 |
Allowance for Credit Losses (Su
Allowance for Credit Losses (Summary of Provision for Credit Losses) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | |||
Provision (recovery) for loans | $ (235) | $ 148 | $ 106 |
Provision (recovery) for unfunded commitments | (13) | ||
Total | $ (248) | $ 148 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Amortized Cost Basis of Collateral Dependent Loans Individually Evaluated to Determine Expected Credit Losses, and Related ACL Allocated to Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for Credit Losses - Loans | $ 7,772 | $ 5,552 | $ 5,984 |
Collateral Dependent Loans [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Real Estate Secured Loans | 1,483 | ||
Allowance for Credit Losses - Loans | 27 | ||
Commercial real estate - non owner occupied [Member] | Collateral Dependent Loans [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Real Estate Secured Loans | 726 | ||
Residential 1-4 family real estate [Member] | Collateral Dependent Loans [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Real Estate Secured Loans | 757 | ||
Allowance for Credit Losses - Loans | $ 27 |
Allowance for Credit Losses (_2
Allowance for Credit Losses (Summary of Investment in Loans by Credit Quality Indicators by Year of Origination) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2023 | Dec. 31, 2022 | |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Current period gross write-off | $ 142 | $ 1,255 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,836 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 15,460 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,857 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,605 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 10,525 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 25,059 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 2,259 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 72,601 | |
Current period gross write-off | 600 | |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,836 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 15,324 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,844 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,392 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 9,999 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,511 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 2,251 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 71,157 | |
Commercial [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 46 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 133 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 11 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 190 | |
Commercial [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 103 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 8 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 111 | |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 90 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 13 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 213 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 393 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 434 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,143 | |
Real Estate Construction and Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,732 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 12,243 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,390 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,448 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,298 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 10,382 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 34,493 | |
Real Estate Construction and Land [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,732 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 12,243 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,390 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,448 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 934 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 8,696 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 32,443 | |
Real Estate Construction and Land [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 641 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 641 | |
Real Estate Construction and Land [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2019 | 364 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,045 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,409 | |
1-4 family residential mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 2,497 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 17,365 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 59,613 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 80,980 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 26,533 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 102,987 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 27,819 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 317,794 | |
1-4 family residential mortgages [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 2,497 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 16,360 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 59,194 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 80,070 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 26,432 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 95,918 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 25,878 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 306,349 | |
1-4 family residential mortgages [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 728 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 207 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 402 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 8,899 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 4,805 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 1,432 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 7,574 | |
1-4 family residential mortgages [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2022 | 277 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 158 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 859 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,294 | |
1-4 family residential mortgages [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 54 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 508 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 101 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,405 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 509 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 2,577 | |
Commercial Mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 24,053 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 41,703 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 52,678 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 115,318 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 44,882 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 192,968 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 471,602 | |
Commercial Mortgages [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 23,894 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 41,703 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 47,526 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 108,099 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 34,858 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 175,772 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 431,852 | |
Commercial Mortgages [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 2,876 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,374 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 9,820 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 25,969 | |
Commercial Mortgages [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 396 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 296 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,212 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,904 | |
Commercial Mortgages [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 159 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,880 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,549 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,125 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 6,164 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 11,877 | |
Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 537 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 389 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 170 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 25,098 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 16,679 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 43,467 | |
Current period gross write-off | 142 | $ 655 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2023 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 507 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 389 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 170 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,835 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 16,648 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 43,143 | |
Consumer [Member] | Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 117 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 13 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 130 | |
Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, Prior | 77 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 77 | |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Term Loans Amortized Cost Basis by Origination Year, 2021 | 30 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 69 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 18 | |
Term Loans Amortized Cost Basis by Origination Year, Total | $ 117 |
Allowance for Credit Losses (Lo
Allowance for Credit Losses (Loan Portfolio Designated by the Internal Risk Ratings Assigned to Each Credit) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 939,957 | $ 936,415 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 72,601 | 71,139 |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,836 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 15,460 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,857 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,605 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 10,525 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 25,059 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 2,259 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 72,601 | |
Real Estate Construction and Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 34,493 | 37,541 |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,732 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 12,243 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,390 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,448 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,298 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 10,382 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 34,493 | |
1-4 family residential mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 317,794 | 323,185 |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 2,497 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 17,365 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 59,613 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 80,980 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 26,533 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 102,987 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 27,819 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 317,794 | |
Commercial mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 471,602 | 459,125 |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 24,053 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 41,703 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 52,678 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 115,318 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 44,882 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 192,968 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 471,602 | |
Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 43,467 | 45,425 |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 537 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 389 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 170 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 25,098 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 16,679 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 43,467 | |
Excellent [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 30,582 | |
Excellent [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 30,121 | |
Excellent [Member] | Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 461 | |
Good [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 33,602 | |
Good [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,058 | |
Good [Member] | Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 17,544 | |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 800,991 | |
Pass [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 22,853 | |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,836 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 15,324 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 7,844 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 9,392 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 9,999 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,511 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 2,251 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 71,157 | |
Pass [Member] | Real Estate Construction and Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 35,258 | |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 1,732 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 12,243 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 6,390 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,448 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 934 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 8,696 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 32,443 | |
Pass [Member] | 1-4 family residential mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 308,041 | |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 2,497 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 16,360 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 59,194 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 80,070 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 26,432 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 95,918 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 25,878 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 306,349 | |
Pass [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 408,513 | |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 23,894 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 41,703 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 47,526 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 108,099 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 34,858 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 175,772 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 431,852 | |
Pass [Member] | Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 26,326 | |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 297 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 507 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 389 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 170 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 24,835 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 16,648 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 43,143 | |
Watch [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 45,074 | |
Watch [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 992 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 46 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 133 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 11 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 190 | |
Watch [Member] | Real Estate Construction and Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 342 | |
Watch [Member] | 1-4 family residential mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 7,935 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 728 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 207 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 402 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 8,899 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 4,805 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 1,432 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 7,574 | |
Watch [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 34,828 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 2,876 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 4,374 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 9,820 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 25,969 | |
Watch [Member] | Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 977 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 117 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 13 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 130 | |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 9,979 | |
Special Mention [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 122 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 103 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 8 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 111 | |
Special Mention [Member] | Real Estate Construction and Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 532 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 641 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 641 | |
Special Mention [Member] | 1-4 family residential mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 5,431 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 277 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 158 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 859 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,294 | |
Special Mention [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,872 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 396 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 296 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,212 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,904 | |
Special Mention [Member] | Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 22 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 77 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 77 | |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 16,187 | |
Substandard [Member] | Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 993 | |
Term Loans Amortized Cost Basis by Origination Year, 2022 | 90 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 13 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 213 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 393 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 434 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,143 | |
Substandard [Member] | Real Estate Construction and Land [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,409 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 364 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,045 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 1,409 | |
Substandard [Member] | 1-4 family residential mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,778 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 54 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 508 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 101 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 1,405 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 509 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 2,577 | |
Substandard [Member] | Commercial mortgages [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 11,912 | |
Term Loans Amortized Cost Basis by Origination Year, 2023 | 159 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 1,880 | |
Term Loans Amortized Cost Basis by Origination Year, 2020 | 2,549 | |
Term Loans Amortized Cost Basis by Origination Year, 2019 | 1,125 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 6,164 | |
Term Loans Amortized Cost Basis by Origination Year, Total | 11,877 | |
Substandard [Member] | Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 95 | |
Term Loans Amortized Cost Basis by Origination Year, 2021 | 30 | |
Term Loans Amortized Cost Basis by Origination Year, Prior | 69 | |
Term Loans Amortized Cost Basis by Origination Year, Revolving Loans | 18 | |
Term Loans Amortized Cost Basis by Origination Year, Total | $ 117 |
Allowance for Credit Losses (_3
Allowance for Credit Losses (Summary of Transactions in Allowance for Credit Losses by Major Loan Portfolio Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Allowance for Loan Losses: | |||
Beginning Balance | $ 5,552 | $ 5,984 | $ 5,984 |
Impact of ASC 326 adoption | 2,491 | ||
Charge-offs | (142) | (1,255) | |
Recoveries | 106 | 717 | |
Provision for (recovery of) loan losses | (235) | 148 | 106 |
Ending Balance | 7,772 | 5,552 | |
Ending balance: Individually evaluated for impairment | 23 | ||
Ending balance: Collectively evaluated for impairment | 5,529 | ||
Loans: | |||
Individually evaluated for impairment | 1,283 | ||
Collectively evaluated for impairment | 903,065 | ||
Acquired loans - purchased credit impaired | 32,067 | ||
Ending Balance | 939,957 | 936,415 | |
Commercial Loans [Member] | |||
Allowance for Loan Losses: | |||
Beginning Balance | 194 | 252 | 252 |
Impact of ASC 326 adoption | (11) | ||
Charge-offs | (600) | ||
Recoveries | 519 | ||
Provision for (recovery of) loan losses | (7) | 23 | |
Ending Balance | 176 | 194 | |
Ending balance: Collectively evaluated for impairment | 194 | ||
Loans: | |||
Collectively evaluated for impairment | 70,509 | ||
Acquired loans - purchased credit impaired | 630 | ||
Ending Balance | 72,601 | 71,139 | |
Real Estate Construction and Land [Member] | |||
Allowance for Loan Losses: | |||
Beginning Balance | 221 | 399 | 399 |
Impact of ASC 326 adoption | 440 | ||
Recoveries | 9 | ||
Provision for (recovery of) loan losses | (90) | (187) | |
Ending Balance | 571 | 221 | |
Ending balance: Collectively evaluated for impairment | 221 | ||
Loans: | |||
Collectively evaluated for impairment | 36,080 | ||
Acquired loans - purchased credit impaired | 1,461 | ||
Ending Balance | 34,493 | 37,541 | |
1-4 family residential mortgages [Member] | |||
Allowance for Loan Losses: | |||
Beginning Balance | 1,618 | ||
Impact of ASC 326 adoption | 14 | ||
Recoveries | 3 | ||
Provision for (recovery of) loan losses | (75) | ||
Ending Balance | 1,560 | 1,618 | |
Loans: | |||
Acquired loans - purchased credit impaired | 9,076 | ||
Ending Balance | 317,794 | 323,185 | |
Commercial Mortgages [Member] | |||
Allowance for Loan Losses: | |||
Beginning Balance | 2,820 | ||
Impact of ASC 326 adoption | 1,577 | ||
Recoveries | 41 | ||
Provision for (recovery of) loan losses | 33 | ||
Ending Balance | 4,471 | 2,820 | |
Loans: | |||
Acquired loans - purchased credit impaired | 20,828 | ||
Ending Balance | 471,602 | 459,125 | |
Real Estate Mortgages [Member] | |||
Allowance for Loan Losses: | |||
Beginning Balance | 4,438 | 4,478 | 4,478 |
Recoveries | 11 | ||
Provision for (recovery of) loan losses | (51) | ||
Ending Balance | 4,438 | ||
Ending balance: Collectively evaluated for impairment | 4,438 | ||
Loans: | |||
Individually evaluated for impairment | 583 | ||
Collectively evaluated for impairment | 751,823 | ||
Acquired loans - purchased credit impaired | 29,904 | ||
Ending Balance | 782,310 | ||
Consumer Loans [Member] | |||
Allowance for Loan Losses: | |||
Beginning Balance | 699 | $ 855 | 855 |
Impact of ASC 326 adoption | 471 | ||
Charge-offs | (142) | (655) | |
Recoveries | 62 | 178 | |
Provision for (recovery of) loan losses | (96) | 321 | |
Ending Balance | 994 | 699 | |
Ending balance: Individually evaluated for impairment | 23 | ||
Ending balance: Collectively evaluated for impairment | 676 | ||
Loans: | |||
Individually evaluated for impairment | 700 | ||
Collectively evaluated for impairment | 44,653 | ||
Acquired loans - purchased credit impaired | 72 | ||
Ending Balance | $ 43,467 | $ 45,425 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | ||
Goodwill [Line Items] | ||||
Goodwill | $ 7,768 | $ 8,100 | $ 7,768 | [1] |
Change in goodwill | 372 | |||
Other intangible assets | 6,200 | 8,100 | $ 6,600 | |
Amortization of intangible assets | $ 391 | $ 456 | ||
[1] Derived from audited Consolidated Financial Statements |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Schedule of Gross Carrying Amounts and Accumulated Amortization of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | Mar. 31, 2022 |
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | $ 9,660 | $ 9,660 | $ 10,433 |
Accumulated Amortization | (3,465) | (3,074) | (2,344) |
Core Deposit [Member] | |||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 9,660 | 9,660 | 9,660 |
Accumulated Amortization | $ (3,465) | $ (3,074) | (1,828) |
Customer Relationships Intangible [Member] | |||
Schedule Of Finite And Indefinite Lived Intangible Assets [Line Items] | |||
Gross Carrying Amount | 773 | ||
Accumulated Amortization | $ (516) |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Schedule of Estimated Future Amortization Expense (Details) - Core Deposit Intangible [Member] $ in Thousands | Mar. 31, 2023 USD ($) |
Schedule of Estimated Future Amortization Expense [Line Items] | |
For the nine months ending December 31, 2023 | $ 1,102 |
For the year ending December 31, 2024 | 1,301 |
For the year ending December 31, 2025 | 1,110 |
For the year ending December 31, 2026 | 918 |
For the year ending December 31, 2027 | 726 |
Thereafter | 1,038 |
Finite-Lived Intangible Assets, Net, Total | $ 6,195 |
Leases (Narrative) (Details)
Leases (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 | |
Leases [Abstract] | |
Lessee, operating lease, existence of option to extend | true |
Lease term | 12 months |
Leases (Schedule of Lease Liabi
Leases (Schedule of Lease Liability, Right-of-use Asset, Weighted Average Remaining Lease Term and Discount Rate) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | [1] | Mar. 31, 2022 |
Leases [Abstract] | ||||
Lease liability | $ 5,968 | $ 7,295 | ||
Right-of-use asset | $ 6,336 | $ 6,536 | $ 7,744 | |
Weighted average remaining lease term | 5 years 1 month 13 days | 6 years 2 months 8 days | ||
Weighted average discount rate | 2.05% | 1.98% | ||
[1] Derived from audited Consolidated Financial Statements |
Leases (Schedule of Operating L
Leases (Schedule of Operating Lease Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Leases [Abstract] | ||
Operating lease expense | $ 511 | $ 445 |
Short-term lease expense | 123 | 52 |
Total lease expense | 634 | 497 |
Cash paid for amounts included in lease liabilities | $ 512 | $ 398 |
Leases (Schedule of Operating_2
Leases (Schedule of Operating Lease Liabilities and Reconciliation of Undiscounted Cash Flows) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Mar. 31, 2022 |
Commitments and Contingencies Disclosure [Abstract] | ||
Nine months ending December 31, 2023 | $ 1,030 | |
Twelve months ending December 31, 2024 | 1,257 | |
Twelve months ending December 31, 2025 | 1,165 | |
Twelve months ending December 31, 2026 | 822 | |
Twelve months ending December 31, 2027 | 724 | |
Thereafter | 1,165 | |
Total undiscounted cash flows | 6,163 | |
Less: Discount | (195) | |
Lease liability | $ 5,968 | $ 7,295 |
Net Income Per Share (Schedule
Net Income Per Share (Schedule of Weighted Average Number of Shares) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Basic net income per share | ||
Net Income | $ 5,791 | $ 4,924 |
Basic, Weighted Average Shares | 5,338,099 | 5,311,983 |
Basic, Per Share Amount | $ 1.08 | $ 0.93 |
Effect of dilutive stock options, Weighted Average Shares | 37,520 | 31,581 |
Effect of dilutive stock options, Per Share Amount | $ (0.01) | |
Diluted net income per share | ||
Net Income | $ 5,791 | $ 4,924 |
Diluted, Weighted Average Shares | 5,375,619 | 5,343,564 |
Diluted, Per Share Amount | $ 1.08 | $ 0.92 |
Net Income Per Share (Narrative
Net Income Per Share (Narrative) (Details) - shares | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Equity Option [Member] | ||
Earnings Per Share [Line Items] | ||
Securities considered to be anti-dilutive and excluded from earnings per share calculation | 101,481 | 101,901 |
Stock Incentive Plans (Plan dur
Stock Incentive Plans (Plan duration - Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Jun. 23, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock grant expense | $ 111 | $ 93 | |
Employee Stock Option [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Compensation expense | 42 | $ 41 | |
Unrecognized compensation expense related to the non-vested awards | $ 179 | ||
Unrecognized compensation expense related to the non-vested awards, final year of recognition | 2026 | ||
Option Issued | 0 | 0 | |
Restricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense related to the non-vested awards | $ 1,200 | ||
Unrecognized compensation expense related to the non-vested awards, final year of recognition | 2027 | ||
Stock grants awarded | 0 | ||
Restricted Stock [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock grants awarded | 5,730 | ||
Unrestricted Stock [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock grants awarded | 0 | ||
Unrestricted Stock [Member] | Employees [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock grants awarded | 100 | ||
Unrestricted stock grant expense | $ 4 | ||
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Plan duration | 10 years | ||
2022 Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance | 150,000 | 150,000 | |
Common stock available for grant | 150,000 | ||
Number of grants issued | 0 | ||
Percentage of common stock authorized for issuance | 95% | ||
2014 Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance | 275,625 | 275,625 | |
Common stock available for grant | 18,031 | ||
Number of grants issued | 170,106 | ||
2005 Stock Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock authorized for issuance | 253,575 | ||
Common stock available for grant | 0 | 0 | |
Number of grants issued | 59,870 |
Stock Incentive Plans (Summary
Stock Incentive Plans (Summary of Shares Issued and Available Under Each Plans) (Details) - $ / shares | 3 Months Ended | |
Mar. 31, 2023 | Jun. 23, 2022 | |
2022 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 150,000 | 150,000 |
Options issued, net of forfeited and expired options | 0 | |
Remaining available for grant | 150,000 | |
2014 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 275,625 | 275,625 |
Options issued, net of forfeited and expired options | (170,106) | |
Cancelled due to Plan expiration | 0 | |
Remaining available for grant | 18,031 | |
Total vested and unvested shares | 87,488 | |
Fully vested shares | 44,415 | |
2014 Stock Plan [Member] | Unrestricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (11,635) | |
2014 Stock Plan [Member] | Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock grants issued | (75,853) | |
2014 Stock Plan [Member] | Employee Stock Option [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total vested and unvested shares | 166,901 | |
Fully vested shares | 96,349 | |
2014 Stock Plan [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range | $ 23.75 | |
2014 Stock Plan [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Exercise price range | $ 42.62 | |
2005 Stock Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Aggregate shares issuable | 253,575 | |
Options issued, net of forfeited and expired options | (59,870) | |
Cancelled due to Plan expiration | (193,705) | |
Remaining available for grant | 0 | 0 |
Stock Incentive Plans (Changes
Stock Incentive Plans (Changes in the Stock Options Outstanding) (Details) - Employee Stock Option [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | Dec. 31, 2022 | |
Number of Options | |||
Outstanding, at the beginning | 168,280 | ||
Issued | 0 | 0 | |
Exercised | (1,379) | ||
Outstanding, at the end | 166,901 | ||
Options Exercisable | 96,349 | ||
Weighted Average Exercise Price | |||
Outstanding, at the beginning | $ 33.95 | ||
Issued | 0 | ||
Exercised | (13.69) | ||
Outstanding, at the end | 34.12 | ||
Exercisable | $ 35.97 | ||
Aggregate Intrinsic Value | |||
Outstanding, Aggregate Intrinsic Value | $ 739 | $ 830 | |
Exercisable | $ 339 |
Stock Incentive Plans (Summar_2
Stock Incentive Plans (Summary Information Pertaining to Options Outstanding) (Details) | 3 Months Ended |
Mar. 31, 2023 $ / shares shares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Options Outstanding | shares | 166,901 |
Weighted-Average Remaining Contractual Life | 6 years 7 months 6 days |
Weighted Average Exercise Price | $ 34.12 |
Options Exercisable | shares | 96,349 |
Weighted-Average Exercise Price | $ 35.97 |
$23.75 to $30.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 23.75 |
Exercise Price, Maximum | $ 30 |
Options Outstanding | shares | 65,000 |
Weighted-Average Remaining Contractual Life | 7 years 3 months 18 days |
Weighted Average Exercise Price | $ 24.65 |
Options Exercisable | shares | 30,600 |
Weighted-Average Exercise Price | $ 24.90 |
$30.01 to $40.00 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 30.01 |
Exercise Price, Maximum | $ 40 |
Options Outstanding | shares | 44,420 |
Weighted-Average Remaining Contractual Life | 7 years 3 months 18 days |
Weighted Average Exercise Price | $ 36.97 |
Options Exercisable | shares | 19,772 |
Weighted-Average Exercise Price | $ 37.65 |
$40.01 to $42.62 [Member] | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Exercise Price, Minimum | 40.01 |
Exercise Price, Maximum | $ 42.62 |
Options Outstanding | shares | 57,481 |
Weighted-Average Remaining Contractual Life | 5 years 1 month 6 days |
Weighted Average Exercise Price | $ 42.62 |
Options Exercisable | shares | 45,977 |
Weighted-Average Exercise Price | $ 42.62 |
Stock Incentive Plans (Change_2
Stock Incentive Plans (Changes in the Restricted Stock Grants Outstanding) (Details) - Restricted Stock [Member] $ / shares in Units, $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) $ / shares shares | |
Number of Shares/Options | |
Non-vested Outstanding, at the beginning | shares | 51,664 |
Issued | shares | 0 |
Vested | shares | (8,591) |
Forfeited | shares | 0 |
Non-vested Outstanding, at the end | shares | 43,073 |
Weighted Average Grant Date Fair Value Per Share/Exercise Price | |
Non-vested Outstanding, at the beginning | $ / shares | $ 32.05 |
Issued | $ / shares | 0 |
Vested | $ / shares | 32.21 |
Forfeited | $ / shares | 0 |
Non-vested Outstanding, at the end | $ / shares | $ 32.02 |
Aggregate Intrinsic Value | |
Non-vested Outstanding, at the beginning | $ | $ 1,858 |
Issued | $ | 0 |
Vested | $ | (309) |
Forfeited | $ | 0 |
Non-vested Outstanding, Aggregate Intrinsic Value | $ | $ 1,549 |
Fair Value Measurements (Assets
Fair Value Measurements (Assets Measured at Fair Value on Recurring Basis) (Details) - Fair Value, Recurring [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 492,760 | |
Liabilities measured at fair value | $ 538,692 | |
Total securities available for sale | 492,760 | 538,186 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | 492,760 | |
Liabilities measured at fair value | 538,692 | |
Total securities available for sale | 492,760 | 538,186 |
U.S. Government Treasuries [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 194,569 | 242,470 |
U.S. Government Treasuries [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 194,569 | 242,470 |
U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 29,225 | 28,755 |
U.S. Government Agencies [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 29,225 | 28,755 |
Mortgage-backed Securities/CMOs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 165,628 | 167,076 |
Mortgage-backed Securities/CMOs [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 165,628 | 167,076 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 18,784 | 18,729 |
Corporate Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 18,784 | 18,729 |
Municipal Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | 84,554 | 81,156 |
Municipal Bonds [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total securities available for sale | $ 84,554 | 81,156 |
Interest Rate Swap [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | 506 | |
Interest Rate Swap [Member] | Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liabilities measured at fair value | $ 506 |
Fair Value Measurements (Narrat
Fair Value Measurements (Narrative) (Details) $ in Thousands | Mar. 31, 2023 USD ($) | Dec. 31, 2022 USD ($) | Mar. 31, 2022 Property |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Other real estate owned, net | $ 0 | $ 0 | |
Fair Value, Nonrecurring [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | 0 | ||
Fair Value, Nonrecurring [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Assets measured at fair value | $ 0 | ||
Fauquier Bankshares, Inc [Member] | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Number of other real estate owned properties | Property | 1 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 0 | |
Individually Evaluated Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 28 | |
Individually Evaluated Loans [Member] | Significant Unobservable Inputs (Level 3) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Assets measured at fair value | $ 28 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Level 3 Fair Value Measurements (Details) - Market Comparables [Member] - Individually Evaluated Loans [Member] - Fair Value, Nonrecurring [Member] - Significant Unobservable Inputs (Level 3) [Member] $ in Thousands | 3 Months Ended |
Mar. 31, 2023 USD ($) | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |
Fair Value | $ 28 |
Unobservable Inputs | Discount applied to recent appraisal |
Discount Rate | 20 |
Fair Value Measurements (Carryi
Fair Value Measurements (Carrying Values and Estimated Fair Values of Financial Instruments) (Details) - USD ($) $ in Thousands | Mar. 31, 2023 | Dec. 31, 2022 | |
Assets | |||
Restricted securities | $ 5,750 | $ 5,137 | [1] |
Fair Value, Nonrecurring [Member] | Carrying Value [Member] | |||
Assets | |||
Cash and cash equivalent | 35,281 | 40,136 | |
Available for sale securities | 492,760 | 538,186 | |
Restricted securities | 5,750 | 5,137 | |
Loans, net | 932,185 | 930,863 | |
Assets held for sale | 965 | ||
Bank owned life insurance | 38,804 | 38,552 | |
Accrued interest receivable | 4,720 | 4,879 | |
Interest rate swap asset | 506 | ||
Liabilities | |||
Demand deposits and interest-bearing transaction, money market, and savings accounts | 1,227,541 | 1,363,232 | |
Certificates of deposit | 169,719 | 115,106 | |
Junior subordinated debt, net | 3,424 | 3,413 | |
Accrued interest payable | 637 | 157 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | |||
Assets | |||
Cash and cash equivalent | 35,281 | 40,136 | |
Available for sale securities | 492,760 | 538,186 | |
Restricted securities | 5,750 | 5,137 | |
Loans, net | 893,836 | 890,929 | |
Assets held for sale | 965 | ||
Bank owned life insurance | 38,804 | 38,552 | |
Accrued interest receivable | 4,720 | 4,879 | |
Interest rate swap asset | 506 | ||
Liabilities | |||
Demand deposits and interest-bearing transaction, money market, and savings accounts | 1,227,541 | 1,363,232 | |
Certificates of deposit | 170,307 | 109,260 | |
Junior subordinated debt, net | 3,424 | 3,413 | |
Accrued interest payable | 637 | 157 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Assets | |||
Cash and cash equivalent | 35,281 | 40,136 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Significant Other Observable Inputs (Level 2) [Member] | |||
Assets | |||
Available for sale securities | 492,760 | 538,186 | |
Restricted securities | 5,750 | 5,137 | |
Assets held for sale | 965 | ||
Bank owned life insurance | 38,804 | 38,552 | |
Accrued interest receivable | 2,008 | 2,265 | |
Interest rate swap asset | 506 | ||
Liabilities | |||
Demand deposits and interest-bearing transaction, money market, and savings accounts | 1,227,541 | 1,363,232 | |
Certificates of deposit | 170,307 | 109,260 | |
Junior subordinated debt, net | 3,424 | 3,413 | |
Accrued interest payable | 637 | 157 | |
Fair Value, Nonrecurring [Member] | Fair Value [Member] | Significant Unobservable Inputs (Level 3) [Member] | |||
Assets | |||
Loans, net | 893,836 | 890,929 | |
Accrued interest receivable | $ 2,712 | $ 2,614 | |
[1] Derived from audited Consolidated Financial Statements |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Component of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2023 | Mar. 31, 2022 | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | $ (48,624) | [1] | $ (2,211) |
Other comprehensive income (loss) arising during the period | 7,559 | (24,595) | |
Related income tax effects | (1,588) | 5,165 | |
Total other comprehensive loss before reclassification | 5,971 | ||
Total other comprehensive loss | 5,771 | (19,430) | |
Reclassification into net income | (254) | ||
Related income tax effects | 54 | ||
Reclassification into net income net of tax | (200) | ||
Accumulated other comprehensive income (loss), Ending Balance | (42,853) | (21,641) | |
Interest Rate Swap [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | 400 | (47) | |
Other comprehensive income (loss) arising during the period | (46) | 276 | |
Related income tax effects | 9 | (58) | |
Total other comprehensive loss before reclassification | (37) | ||
Total other comprehensive loss | 218 | ||
Reclassification into net income | (460) | ||
Related income tax effects | 97 | ||
Reclassification into net income net of tax | (363) | ||
Accumulated other comprehensive income (loss), Ending Balance | 171 | ||
Securities AFS [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), Beginning Balance | (49,024) | (2,164) | |
Other comprehensive income (loss) arising during the period | 7,605 | (24,871) | |
Related income tax effects | (1,597) | 5,223 | |
Total other comprehensive loss before reclassification | 6,008 | ||
Total other comprehensive loss | (19,648) | ||
Reclassification into net income | 206 | ||
Related income tax effects | (43) | ||
Reclassification into net income net of tax | 163 | ||
Accumulated other comprehensive income (loss), Ending Balance | $ (42,853) | $ (21,812) | |
[1] Derived from audited Consolidated Financial Statements |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Dec. 31, 2022 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | ||
Gain on termination of interest swap | $ 460 | |
Cash collateral held at other banks | $ 580 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities - (Summary of Derivative Instruments) (Details) - Derivatives Designated as Hedging Instruments [Member] - Junior Subordinated Debt [Member] - Interest Rate Forward Swap - Cash Flow [Member] $ in Thousands | 12 Months Ended |
Dec. 31, 2022 USD ($) | |
Derivative [Line Items] | |
Notional/contract amount | $ 4,000 |
Fair value | $ 506 |
Expiration Date | Jun. 15, 2031 |
Segment Reporting (Narrative) (
Segment Reporting (Narrative) (Details) | 3 Months Ended |
Mar. 31, 2023 Item | |
Segment Reporting Information [Line Items] | |
Number of reportable segments | 4 |
Segment Reporting (Schedule of
Segment Reporting (Schedule of Segment Reporting Information) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2023 | Mar. 31, 2022 | |
Segment Reporting Information [Line Items] | ||
Net interest income | $ 13,413 | $ 11,425 |
Provision for (recovery of) Credit and loan losses | (248) | 148 |
Noninterest income | 2,276 | 4,787 |
Noninterest expense | 8,861 | 10,095 |
Income before income taxes | 7,076 | 5,969 |
Provision for (benefit from) income taxes | 1,285 | 1,045 |
Net income | 5,791 | 4,924 |
Bank [Member] | ||
Segment Reporting Information [Line Items] | ||
Net interest income | 13,413 | 11,425 |
Provision for (recovery of) Credit and loan losses | (248) | 148 |
Noninterest income | 1,855 | 1,534 |
Noninterest expense | 8,370 | 8,821 |
Income before income taxes | 7,146 | 3,990 |
Provision for (benefit from) income taxes | 1,299 | 630 |
Net income | 5,847 | 3,360 |
Sturman Wealth Advisors [Member] | ||
Segment Reporting Information [Line Items] | ||
Noninterest income | 216 | |
Noninterest expense | 166 | |
Income before income taxes | 50 | |
Provision for (benefit from) income taxes | 10 | |
Net income | 40 | |
VNB Trust & Estate Services [Member] | ||
Segment Reporting Information [Line Items] | ||
Noninterest income | 260 | 2,831 |
Noninterest expense | 309 | 922 |
Income before income taxes | (49) | 1,909 |
Provision for (benefit from) income taxes | (10) | 401 |
Net income | (39) | 1,508 |
Masonry Capital [Member] | ||
Segment Reporting Information [Line Items] | ||
Noninterest income | 161 | 206 |
Noninterest expense | 182 | 186 |
Income before income taxes | (21) | 20 |
Provision for (benefit from) income taxes | (4) | 4 |
Net income | $ (17) | $ 16 |