Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2021 | Aug. 10, 2021 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2021 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | AFBI | |
Entity Registrant Name | Affinity Bancshares, Inc. | |
Entity Central Index Key | 0001823406 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Non-accelerated Filer | |
Entity Small Business | true | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | false | |
Entity Common Stock, Shares Outstanding | 6,872,634 | |
Entity Current Reporting Status | Yes | |
Entity Shell Company | false | |
Entity File Number | 001-39914 | |
Entity Tax Identification Number | 86-1339773 | |
Entity Address, Address Line One | 3175 Highway 278 | |
Entity Address, City or Town | Covington | |
Entity Address, State or Province | GA | |
Entity Address, Postal Zip Code | 30014 | |
City Area Code | 770 | |
Local Phone Number | 786-7088 | |
Entity Interactive Data Current | Yes | |
Title of 12(b) Security | Common Stock, par value $0.01 per share | |
Entity Incorporation, State or Country Code | MD | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Security Exchange Name | NASDAQ |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks, including reserve requirement of $0 at June 30, 2021 and December 31, 2020 | $ 15,343 | $ 5,552 | |
Interest-earning deposits in other depository institutions | 100,373 | 172,701 | |
Cash and cash equivalents | 115,716 | 178,253 | |
Investment securities available-for-sale | 36,591 | 24,005 | |
Other investments | 2,476 | 1,596 | |
Loans, net | 582,624 | 592,254 | |
Other real estate owned | 1,292 | ||
Premises and equipment, net | 7,451 | 8,617 | |
Bank owned life insurance | 15,192 | 15,311 | |
Intangible assets | 18,845 | 18,940 | |
Accrued interest receivable and other assets | 7,912 | 10,360 | |
Total assets | 786,807 | 850,628 | |
Liabilities: | |||
Savings accounts | 95,057 | 96,591 | |
Interest-bearing checking | 81,382 | 129,813 | |
Market rate checking | 134,139 | 121,317 | |
Non-interest-bearing checking | 195,146 | 160,819 | |
Certificate of deposits | 106,173 | 131,625 | |
Total deposits | 611,897 | 640,165 | |
Federal Home Loan Bank advances | 49,052 | 19,117 | |
Paycheck Protection Program Liquidity Facility (PPPLF) borrowings | 100,813 | ||
Other borrowings | 5,000 | ||
Accrued interest payable and other liabilities | 8,223 | 4,748 | |
Total liabilities | 669,172 | 769,843 | |
Stockholders' equity: | |||
Common stock (par value $0.01 per share, 40,000,000 shares authorized, 6,872,634 issued and outstanding at June 30, 2021 and 19,000,000 shares authorized, 6,968,469 issued and 6,865,653 outstanding at December 31, 2020) | [1] | 69 | 77 |
Preferred stock (10,000,000 shares authorized, no shares outstanding at June 30, 2021 and 1,000,000 shares authorized, no shares outstanding at December 31, 2020) | |||
Additional paid in capital | 67,972 | 33,620 | |
Treasury stock, 102,816 shares at December 31, 2020, at cost | [1] | (1,268) | |
Unearned ESOP shares | (5,310) | (2,453) | |
Retained earnings | 55,100 | 50,650 | |
Accumulated other comprehensive (loss) income | (196) | 159 | |
Total stockholders' equity | 117,635 | 80,785 | |
Total liabilities and stockholders' equity | $ 786,807 | $ 850,628 | |
[1] | Amounts related to periods prior to the date of Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686) (see Note 1). |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) $ in Thousands | Jun. 30, 2021USD ($)$ / sharesshares | Dec. 31, 2020USD ($)$ / sharesshares |
Statement Of Financial Position [Abstract] | ||
Cash and due from banks, reserve requirement | $ | $ 0 | $ 0 |
Common stock, par value | $ / shares | $ 0.01 | $ 0.01 |
Common stock, shares authorized | 40,000,000 | 19,000,000 |
Common stock, shares issued | 6,872,634 | 6,968,469 |
Common stock, shares outstanding | 6,872,634 | 6,865,653 |
Preferred stock, shares authorized | 10,000,000 | 1,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Treasury stock shares, at cost | 102,816 |
Consolidated Statements of Oper
Consolidated Statements of Operations (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Interest income: | |||||
Loans, including fees | $ 7,997,000 | $ 7,124,000 | $ 17,091,000 | $ 13,520,000 | |
Investment securities, including dividends | 181,000 | 117,000 | 292,000 | 282,000 | |
Interest-earning deposits | 39,000 | 14,000 | 82,000 | 150,000 | |
Total interest income | 8,217,000 | 7,255,000 | 17,465,000 | 13,952,000 | |
Interest expense: | |||||
Deposits | 684,000 | 1,363,000 | 1,481,000 | 2,625,000 | |
Borrowings | 123,000 | 185,000 | 233,000 | 393,000 | |
Total interest expense | 807,000 | 1,548,000 | 1,714,000 | 3,018,000 | |
Net interest income before provision for loan losses | 7,410,000 | 5,707,000 | 15,751,000 | 10,934,000 | |
Provision for loan losses | 300,000 | 300,000 | 750,000 | 800,000 | |
Net interest income after provision for loan losses | 7,110,000 | 5,407,000 | 15,001,000 | 10,134,000 | |
Noninterest income: | |||||
Service charges on deposit accounts | 376,000 | 304,000 | 709,000 | 658,000 | |
Gain on sales of investment securities available-for-sale | 20,000 | 0 | 20,000 | ||
Other | 230,000 | 214,000 | 625,000 | 374,000 | |
Total noninterest income | 606,000 | 538,000 | 1,334,000 | 1,052,000 | |
Noninterest expenses: | |||||
Salaries and employee benefits | 2,511,000 | 2,180,000 | 4,894,000 | 6,353,000 | |
Deferred compensation | 62,000 | 79,000 | 126,000 | 142,000 | |
Occupancy | 644,000 | 690,000 | 1,696,000 | 1,337,000 | |
Advertising | 100,000 | 71,000 | 180,000 | 133,000 | |
Data processing | 517,000 | 606,000 | 999,000 | 1,250,000 | |
Other real estate owned | 7,000 | 2,000 | 19,000 | 2,000 | |
Net (gain) loss on sale of other real estate owned | (126,000) | (127,000) | 29,000 | ||
Legal and accounting | 226,000 | 282,000 | 402,000 | 965,000 | |
Organizational dues and subscriptions | 91,000 | 80,000 | 161,000 | 168,000 | |
Director compensation | 50,000 | 53,000 | 100,000 | 101,000 | |
Federal deposit insurance premiums | 67,000 | 140,000 | 140,000 | 253,000 | |
Writedown of premises and equipment | 873,000 | 0 | |||
Other | 524,000 | 392,000 | 1,101,000 | 924,000 | |
Total noninterest expenses | 4,673,000 | 4,575,000 | 10,564,000 | 11,657,000 | |
Income (loss) before income taxes | 3,043,000 | 1,370,000 | 5,771,000 | (471,000) | |
Income tax expense (benefit) | 725,000 | 291,000 | 1,321,000 | (252,000) | |
Net income (loss) | $ 2,318,000 | $ 1,079,000 | $ 4,450,000 | $ (219,000) | |
Basic earnings (loss) per share | [1] | $ 0.34 | $ 0.16 | $ 0.65 | $ (0.03) |
Diluted earnings (loss) per share | [1] | $ 0.34 | $ 0.16 | $ 0.64 | $ (0.03) |
[1] | Amounts related to periods prior to the date of the Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686-to-one) (see Note 1). |
Consolidated Statements of Op_2
Consolidated Statements of Operations (unaudited) (Parenthetical) | Jan. 20, 2021 |
Income Statement [Abstract] | |
Common stock exchange ratio | 0.90686 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) (unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 2,318 | $ 1,079 | $ 4,450 | $ (219) |
Other comprehensive (loss) income: | ||||
Net unrealized (loss) gain on available-for-sale securities, net of taxes of $67, $(20), $121 and $(63) | (196) | 61 | (355) | 182 |
Reclassification adjustment for gain included in net income, net of taxes of ($5) | (15) | (15) | ||
Total other comprehensive (loss) income | (196) | 46 | (355) | 167 |
Total comprehensive income (loss) | $ 2,122 | $ 1,125 | $ 4,095 | $ (52) |
Consolidated Statements of Co_2
Consolidated Statements of Comprehensive Income (Loss) (unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | |
Statement Of Income And Comprehensive Income [Abstract] | ||||
Net unrealized gain (loss) on available for sale securities, tax | $ 67 | $ (20) | $ 121 | $ (63) |
Reclassification adjustment from AOCI for sale of securities, tax expense | $ (5) | $ (5) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity (unaudited) - USD ($) $ in Thousands | Total | Common Stock | [1] | Additional Paid In Capital | Treasury Stock | Unearned ESOP Shares | Retained Earnings | Accumulated Other Comprehensive Income (Loss) |
Beginning balance at Dec. 31, 2019 | $ 77,167 | $ 69 | $ 33,366 | $ (1,268) | $ (2,571) | $ 47,562 | $ 9 | |
ESOP loan payment and release of ESOP shares | 30 | 30 | ||||||
Stock based compensation expense | (80) | (80) | ||||||
Change in unrealized gain on investment securities available-for-sale, net of tax | 121 | 121 | ||||||
Net income (loss) | (1,298) | (1,298) | ||||||
Ending balance at Mar. 31, 2020 | 75,940 | 69 | 33,286 | (1,268) | (2,541) | 46,264 | 130 | |
Beginning balance at Dec. 31, 2019 | 77,167 | 69 | 33,366 | (1,268) | (2,571) | 47,562 | 9 | |
Net income (loss) | (219) | |||||||
Ending balance at Jun. 30, 2020 | 77,244 | 69 | 33,436 | (1,268) | (2,512) | 47,343 | 176 | |
Beginning balance at Mar. 31, 2020 | 75,940 | 69 | 33,286 | (1,268) | (2,541) | 46,264 | 130 | |
ESOP loan payment and release of ESOP shares | 21 | (8) | 29 | |||||
Issuance of restricted stock awards | 17 | 17 | ||||||
Stock based compensation expense | 141 | 141 | ||||||
Change in unrealized gain on investment securities available-for-sale, net of tax | 46 | 46 | ||||||
Net income (loss) | 1,079 | 1,079 | ||||||
Ending balance at Jun. 30, 2020 | 77,244 | 69 | 33,436 | (1,268) | (2,512) | 47,343 | 176 | |
Beginning balance at Dec. 31, 2020 | 80,785 | 69 | 33,628 | (1,268) | (2,453) | 50,650 | 159 | |
ESOP loan payment and release of ESOP shares | 57 | 5 | 52 | |||||
Stock based compensation expense | 110 | 110 | ||||||
Change in unrealized gain on investment securities available-for-sale, net of tax | (278) | (278) | ||||||
Issuance of common stock (less stock offering expenses of $1,699) | 32,448 | 32,448 | ||||||
Issuance of shares and loan to ESOP | 2,961 | (2,961) | ||||||
Treasury stock retired | (1,268) | 1,268 | ||||||
Net income (loss) | 2,132 | 2,132 | ||||||
Ending balance at Mar. 31, 2021 | 115,254 | 69 | 67,884 | (5,362) | 52,782 | (119) | ||
Beginning balance at Dec. 31, 2020 | 80,785 | 69 | 33,628 | $ (1,268) | (2,453) | 50,650 | 159 | |
Net income (loss) | 4,450 | |||||||
Ending balance at Jun. 30, 2021 | 117,635 | 69 | 67,972 | (5,310) | 55,100 | (196) | ||
Beginning balance at Mar. 31, 2021 | 115,254 | 69 | 67,884 | (5,362) | 52,782 | (119) | ||
ESOP loan payment and release of ESOP shares | 65 | 13 | 52 | |||||
Stock based compensation expense | 75 | 75 | ||||||
Change in unrealized gain on investment securities available-for-sale, net of tax | (77) | (77) | ||||||
Net income (loss) | 2,318 | 2,318 | ||||||
Ending balance at Jun. 30, 2021 | $ 117,635 | $ 69 | $ 67,972 | $ (5,310) | $ 55,100 | $ (196) | ||
[1] | Amounts concerning shares related to periods prior to the date of the Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686-to-one). |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (unaudited) (Parenthetical) $ in Thousands | 3 Months Ended |
Mar. 31, 2021USD ($) | |
Statement Of Stockholders Equity [Abstract] | |
Stock offering expense | $ 1,699 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows (unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||||
Net income (loss) | $ 4,450,000 | $ (219,000) | ||
Adjustments to reconcile net (loss) income to net cash provided by (used in) operating activities, net of effects of acquisition: | ||||
Depreciation and (accretion) amortization | 354,000 | (98,000) | ||
Stock-based compensation expense | 185,000 | 78,000 | ||
Provision for loan losses | 750,000 | 800,000 | $ 2,000,000 | |
ESOP expense | 122,000 | 51,000 | ||
Net gain on sale of investment securities available-for-sale | $ (20,000) | 0 | (20,000) | |
Net (gain) loss on sale of other real estate owned | (127,000) | 29,000 | ||
Increase in cash surrender value of bank owned life insurance | (181,000) | (198,000) | ||
Loss on writedown of premises and equipment | 873,000 | 0 | ||
Change in: | ||||
Accrued interest receivable and other assets | 2,568,000 | (3,793,000) | ||
Accrued interest payable and other liabilities | 3,488,000 | 536,000 | ||
Net cash provided by (used in) operating activities | 12,482,000 | (2,834,000) | ||
Cash flows from investing activities, net of effects of acquisition: | ||||
Purchases of investment securities available-for-sale | (15,365,000) | (4,025,000) | ||
Purchases of premises and equipment | (232,000) | (137,000) | ||
Proceeds from disposal of premises and equipment | 0 | 21,000 | ||
Proceeds from sale of investment securities available-for-sale | 0 | 1,677,000 | ||
Proceeds from paydowns of investment securities available-for-sale | 2,198,000 | 3,316,000 | ||
Purchases of other investments | (1,412,000) | (1,108,000) | ||
Proceeds from sales of other investments | 533,000 | 213,000 | ||
Proceeds from bank owned life insurance death claim | 300,000 | 0 | ||
Net change in loans | 9,155,000 | (126,246,000) | ||
Proceeds from sales of other real estate owned | 1,420,000 | 128,000 | ||
Net cash paid in business combination | 0 | (22,749,000) | ||
Net cash used in investing activities | (3,403,000) | (148,910,000) | ||
Cash flows from financing activities, net of effects of acquisition: | ||||
Net change in demand and savings deposits | (28,251,000) | 138,438,000 | ||
Proceeds from FHLB advances | 35,000,000 | 40,000,000 | ||
Repayment of FHLB advances | (5,000,000) | (20,000,000) | ||
Proceeds from PPPLF borrowings | 0 | 129,230,000 | ||
Repayment of PPPLF borrowings | (100,813,000) | 0 | ||
Proceeds from holding company loan | 0 | 5,000,000 | ||
Repayment of holding company loan | (5,000,000) | 0 | ||
Net change in repurchase agreements and other borrowings | 0 | 5,383,000 | ||
Proceeds from stock offering | 37,108,000 | 0 | ||
Stock offering expenses | (1,699,000) | 0 | ||
Funding of ESOP | (2,961,000) | 0 | ||
Net cash (used in) provided by financing activities | (71,616,000) | 298,051,000 | ||
Net change in cash and cash equivalents | (62,537,000) | 146,307,000 | ||
Cash and cash equivalents at beginning of period | 178,253,000 | 48,117,000 | 48,117,000 | |
Cash and cash equivalents at end of period | 194,424,000 | 115,716,000 | 194,424,000 | $ 178,253,000 |
Supplemental disclosures of cash flow information: | ||||
Cash paid for income taxes | 1,510,000 | 1,478,000 | ||
Cash paid for interest | 1,804,000 | 2,761,000 | ||
Vacant land transferred to other real estate owned | $ 460,000 | 0 | 460,000 | |
Fair value of assets acquired | 0 | 317,742,000 | ||
Fair value of liabilities assumed | 0 | 288,732,000 | ||
Net assets acquired | $ 0 | $ 29,010,000 |
Nature of Operations
Nature of Operations | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Nature of Operations | (1) Nature of Operations Affinity Bancshares, Inc. (the “Company”) is a savings and loan holding company headquartered in Covington, Georgia. The Company has one operating subsidiary, Affinity Bank (the “Bank”, and formerly named “Newton Federal Bank”), a federally chartered savings association, conducting banking activities primarily in Newton County, Georgia and surrounding counties and in Cobb and Fulton County, Georgia and surrounding counties, and originating dental practice loans and indirect automobile loans throughout the Southeastern United States. The Bank offers such customary banking services as consumer and commercial checking accounts, savings accounts, certificates of deposit, mortgage, commercial and consumer loans, including indirect automobile loans, money transfers and a variety of other banking services. The Company was incorporated in September 2020 to be the successor corporation to Community First Bancshares, Inc., a federal corporation, upon completion of the second-step mutual-to-stock conversion (the “Conversion”) of Community First Bancshares, MHC, the top tier mutual holding company of Community First Bancshares, Inc. Community First Bancshares, Inc. was the former mid-tier holding company for the Bank (formerly named Newton Federal Bank). Prior to completion of the Conversion, approximately 54% of the shares of common stock of Community First Bancshares, Inc. were owned by Community First Bancshares, MHC. In conjunction with the Conversion, Community First Bancshares, Inc. was merged into Affinity Bancshares, Inc. (and ceased to exist) and Affinity Bancshares, Inc. became its successor holding company for Newton Federal Bank. On January 20, 2021, the Company completed the Conversion. Accordingly, prior comparable periods within the financial statements and notes thereto reflect the operations of Community First Bancshares, Inc., and not the Company. However, references to the Company include Community First Bancshares, Inc. where indicated by the context. Reorganization On January 20, 2021, the Company completed the Conversion of Community First Bancshares, MHC, the top tier mutual holding company of Community First Bancshares, Inc. Community First Bancshares, Inc. was the former mid-tier holding company for Affinity Bank (formerly named Newton Federal Bank). Prior to completion of the Conversion, approximately 54% of the shares of common stock of Community First Bancshares, Inc. were owned by Community First Bancshares, MHC. In conjunction with the Conversion, Community First Bancshares, Inc. was merged into Affinity Bancshares, Inc. (and ceased to exist) and Affinity Bancshares, Inc. became its successor holding company for Newton Federal Bank. As part of the Conversion, on January 20, 2021, the Company raised gross proceeds of $37.1 million by selling a total of 3,701,509 shares of common stock at $10.00 per share in a stock offering. The Company utilized $3.0 million of the proceeds to fund an addition to its Employee Stock Ownership Plan (“ESOP”) loan for the acquisition of additional shares at $10.00 per share. Expenses incurred related to the offering were $1.7 million and have been recorded against offering proceeds. The Company invested $16.3 million of the net proceeds it received from the sale into the Bank’s operations and has retained the remaining amount for general corporate purposes. Concurrent with the completion of the stock offering, each share of Community First Bancshares, Inc. common stock owned by public stockholders (stockholders other than Community First Bancshares, MHC) was exchanged for 0.90686 shares of Company common stock. All share amounts have been adjusted for the conversion, including outstanding restricted stock and stock options. Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the financial position of the Company as of June 30, 2021 and the results of its operations and its cash flows for the periods presented. The interim consolidated financial information should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for a full year or for any other period. Use of Estimates – The preparation of financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of acquired loans, the valuation of other real estate acquired in connection with foreclosure or in satisfaction of loans and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income. Summary of Significant Accounting Policies – The accounting and reporting policies of the Company conform to GAAP and general practices within the banking industry. There have been no material changes or developments in the application of principles or in our evaluation of the accounting estimates and the underlying assumptions or methodologies that we believe to be Critical Accounting Policies as disclosed in the Company’s financial statements for the year ended December 31, 2020 included in the Company’s Form 10-K. Earnings per Share Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands except per share data) Net income (loss) $ 2,318 $ 1,079 $ 4,450 $ (219 ) Weighted average common shares outstanding 6,873,358 6,834,148 6,874,306 6,830,625 Effect of dilutive common stock awards 33,157 — 33,157 — Diluted weighted average common shares outstanding 6,906,515 6,834,148 6,907,463 6,830,625 Basic earnings (loss) per common share* $ 0.34 $ 0.16 $ 0.65 $ (0.03 ) Diluted earnings (loss) per common share* $ 0.34 $ 0.16 $ 0.64 $ (0.03 ) *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year-to-date earnings per share data. For the three months and six months ended June 30, 2020, options to purchase 90,441 shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. There were no anti-dilutive options for the three and six months ended June 30, 2021. Recent Accounting Pronouncements There have been no pronouncements issued during the quarter that would have a material impact on the Company's financial statements. |
Acquisition
Acquisition | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Acquisition | (2) Acquisition On January 10, 2020, the Company consummated its merger with ABB Financial Group, Inc. (“ABB”) pursuant to the Agreement and Plan of Merger by and between the Company and ABB dated August 19, 2019, (the “Merger Agreement”), whereby ABB was merged with and into the Company, and Affinity Bank, ABB’s wholly owned commercial bank subsidiary serving Cobb County, Georgia and Fulton County, Georgia and surrounding counties, was merged with and into Newton Federal Bank. The system integration was completed in September 2020. Affinity Bank operated one branch office in Cobb County, Georgia and one loan production office in Fulton County, Georgia. The purpose of the merger was for strategic reasons beneficial to the Company. The acquisition is consistent with its plan to drive growth and efficiency through increased scale, leverage the strengths of each bank across the combined customer base, enhance profitability, and add shareholder value. Under the terms of the Merger Agreement, each outstanding share of ABB common stock was converted into the right to receive $7.50 in cash, for a total paid of $40.3 million in cash with no stock issued. Pre-existing ABB equity awards (restricted stock units and stock options) immediately vested upon consummation of the merger. The Company paid $2.7 million reflecting the net value for the vested ABB restricted stock outstanding at the consummation of the merger. The Company accounted for the transaction under the acquisition method of accounting, and thus, the financial position and results of operations of ABB prior to the consummation date were not included in the accompanying consolidated financial statements. The accounting required assets purchased and liabilities assumed to be recorded at their respective fair values at the date of acquisition. The Company determined the fair value of core deposit intangibles, securities, premises and equipment, loans, other real estate owned, bank owned life insurance and other assets, deposits, debt and deferred taxes with the assistance of third-party valuations, appraisals, and third-party advisors. The estimated fair values will be subject to refinement as additional information relative to the closing date fair values becomes available through the measurement period of approximately one year from consummation. The fair value of the assets acquired and liabilities assumed on January 10, 2020 was as follows: As recorded by Fair Value As recorded by ABB Adjustments CFBI (in thousands) Cash, cash equivalents and securities available-for-sale $ 41,561 $ — $ 41,561 Loans 264,176 (2,327 ) 261,849 Other real estate owned 790 — 790 Core deposit intangible — 1,913 1,913 Fixed assets and other assets 11,629 — 11,629 Total assets acquired 318,156 (414 ) 317,742 Deposits 249,049 265 249,314 Borrowings and other liabilities 37,764 1,654 39,418 Total liabilities acquired 286,813 1,919 288,732 Excess of assets acquired over liabilities acquired 31,343 (2,333 ) 29,010 Purchase price 40,338 Net assets acquired 29,010 Less preferred stock redeemed (5,891 ) Net assets acquired less preferred stock 23,119 Goodwill $ 17,219 The following unaudited pro forma information presents the results of operations for six months ended June 30, 2020, as if the acquisition had occurred January 1 of the period. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts. These unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the combined company that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations. Six Months Ended June 30, 2020 (In thousands except per share data) Total revenues, net of interest expense $ 12,286 Net loss (1,279 ) Diluted loss per share (0.17 ) |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | (3) Investment Securities Investment securities available-for-sale at June 30, 2021 and December 31, 2020 are as follows: (in thousands) Amortized Gross Unrealized Gross Unrealized Estimated June 30, 2021 Cost Gains Losses Fair Value U.S. Treasury securities $ 3,072 1 (4 ) 3,069 Municipal securities - tax exempt 543 — (6 ) 537 U. S. Government sponsored enterprises 11,837 — (348 ) 11,489 Government agency mortgage-backed securities 15,178 256 (73 ) 15,361 Corporate securities 6,223 14 (102 ) 6,135 Total $ 36,853 $ 271 $ (533 ) $ 36,591 December 31, 2020 U. S. Government sponsored enterprises $ 11,870 $ 1 $ (12 ) $ 11,859 Government agency mortgage-backed securities 9,206 326 — 9,532 Corporate securities 2,715 — (101 ) 2,614 Total $ 23,791 $ 327 $ (113 ) $ 24,005 There were 14 securities in an unrealized loss position as of June 30, 2021 for less than 12 months. There were six securities in an unrealized loss position for 12 months or greater as of June 30, 2021. The unrealized losses on the debt securities arose due to changing interest rates and market conditions and are considered to be temporary because of acceptable investment grades and are reviewed regularly. Four of the securities are agency bonds and two are U.S. Treasury Strip bonds, so all of these are direct obligations of the U.S. Government. Five of the securities are mortgage backed bonds that have the implied backing of the U.S. Government. One of the bonds is a municipal security and the remaining eight securities are corporate securities that are either trust preferred securities or subordinated debentures where the Bank performs a credit review regularly and such review has raised no concerns. The Company does not intend to sell the investments and it is not likely that the Company will be required to sell the investments before recovery of their amortized cost basis which may be at maturity. The amortized cost and estimated fair value of investment securities available-for-sale at June 30, 2021, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands) Amortized Estimated Cost Fair Value U.S. Treasury securities Within 1 year $ — — Greater than 1 to 5 years — — Greater than 5 to 10 years 3,072 3,069 Greater than 10 years — — Municipal securities - tax exempt Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years — — Greater than 10 years 543 537 Government agency securities Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years — — Greater than 10 years 11,837 11,489 Trust preferred securities Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years 5,723 5,710 Greater than 10 years 500 425 21,675 21,230 Government agency mortgage-backed securities 15,178 15,361 Total $ 36,853 $ 36,591 During the three and six months ended June 30, 2020, the Company sold Securities with a carrying value of approximately $1.7 million and $3.8 million |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Loans and Allowance for Loan Losses | (4) Loans and Allowance for Loan Losses Major classifications of loans, by collateral code, at June 30, 2021 and December 31, 2020 are summarized as follows: (in thousands) June 30, 2021 December 31, 2020 Commercial (secured by real estate) $ 193,965 $ 178,571 Commercial and industrial 157,633 155,554 Paycheck Protection Program loans 73,020 101,749 Construction, land and acquisition & development 26,954 23,571 Residential mortgage 1-4 family 79,495 91,777 Consumer installment 58,944 47,393 Total 590,011 598,615 Less allowance for loan losses (7,387 ) (6,361 ) Total loans, net $ 582,624 $ 592,254 The Bank grants loans and extensions of credit to individuals and a variety of firms and corporations located primarily in the Atlanta, Georgia MSA. A substantial portion of the loan portfolio is collateralized by improved and unimproved real estate and is dependent upon the real estate market. With the acquisition of Affinity Bank, the Bank is a premier lender within professional markets, with a primary focus on the dental industry in Georgia and adjoining states. The majority of these loans are commercial and industrial credits for practice acquisitions and equipment financing with the remainder being owner-occupied real estate. The Coronavirus Aid, Relief, and Economic Security Act, also known as the CARES Act, is an economic stimulus bill signed into law on March 27, 2020, in response to the economic fallout of the COVID-19 pandemic in the United States. The creation of the Paycheck Protection Program (PPP) enacted under the CARES Act provides forgivable loans to small businesses for payroll obligations, emergency grants to cover immediate operating costs, and a mechanism for loan forgiveness by the Small Business Administration should all criteria be met. The Bank received SBA authorization for 730 and 1,171 PPP loans totaling $66.1 million and $130.3 million for the six months ended June 30, 2021 and the year ended December 31, 2020, respectively. These loans are fully guaranteed by the Small Business Administration. Qualifying loans in the amount of $249.5 million and $309.9 million were pledged to secure the line of credit from the Federal Home Loan Bank of Atlanta (“FHLB”) at June 30, 2021 and December 31, 2020, respectively. The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of and for the six months ended June 30, 2021 and 2020: (in thousands) June 30, 2021 Commercial (Secured by Real Estate) Commercial and Industrial Paycheck Protection Program (1) Construction, Land and Acquisition & Development Residential Mortgage Consumer Installment Unallocated Total Allowance for loan losses: Beginning balance $ 3,084 $ 1,320 $ — $ 224 $ 970 $ 719 $ 44 $ 6,361 Provision 293 722 — 54 (361 ) 66 (24 ) 750 Charge-offs — (55 ) — — — (26 ) — (81 ) Recoveries 250 35 — — 69 3 — 357 Ending balance $ 3,627 $ 2,022 $ — $ 278 $ 678 $ 762 $ 20 $ 7,387 Ending allowance attributable to loans: . Individually evaluated for impairment $ 7 $ 45 $ — $ — $ 6 $ — $ — $ 58 Collectively evaluated for impairment 3,620 1,977 — 278 672 762 20 7,329 Total ending allowance $ 3,627 2,022 $ — 278 678 762 20 7,387 Loans: Individually evaluated for impairment $ 1,895 $ 933 $ — $ — $ 3,209 $ 3 $ — $ 6,040 Collectively evaluated for impairment 192,070 156,700 73,020 26,954 76,286 58,941 — 583,971 Total loans $ 193,965 $ 157,633 $ 73,020 $ 26,954 $ 79,495 $ 58,944 $ — $ 590,011 December 31, 2020 Allowance for loan losses: Beginning balance $ 1,661 $ 1,478 $ — $ 153 $ 369 $ 466 $ 7 $ 4,134 Provision 1,207 (194 ) — 71 627 252 37 2,000 Charge-offs (30 ) — — — (126 ) (29 ) — (185 ) Recoveries 246 36 — — 100 30 — 412 Ending balance $ 3,084 $ 1,320 $ $ 224 $ 970 $ 719 $ 44 $ 6,361 Ending allowance attributable to loans: Individually evaluated for impairment $ 2 $ 35 $ — $ — $ 14 $ — $ — $ 51 Collectively evaluated for impairment 3,082 1,285 — 224 956 719 44 6,310 Total ending allowance $ 3,084 $ 1,320 $ — $ 224 $ 970 $ 719 $ 44 $ 6,361 Loans: Individually evaluated for impairment $ 2,584 $ 1,085 $ — $ — $ 3,597 $ 8 $ — $ 7,274 Collectively evaluated for impairment 175,987 154,469 101,749 23,571 88,180 47,385 — 591,341 Total loans $ 178,571 $ 155,554 $ 101,749 $ 23,571 $ 91,777 $ 47,393 $ — $ 598,615 (1) Includes PPP loans that are fully guaranteed by the SBA; thus no allowance for loan losses has been allocated to these loans. The Bank individually evaluates all loans for impairment that are on nonaccrual status or are rated substandard (as described below). Additionally, all troubled debt restructurings are evaluated for impairment. A loan is considered impaired when, based on current events and circumstances, it is probable that all amounts due according to the contractual terms of the loan will not be collected. Impaired loans are measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, at the loan’s observable market price, or the fair value of the collateral if the loan is collateral dependent. Interest payments received on impaired loans are applied as a reduction of the outstanding principal balance. Impaired loans at June 30, 2021 and December 31, 2020 were as follows: (in thousands) June 30, 2021 Recorded Investment Unpaid Principal Balance Allocated Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial (secured by real estate) $ 577 $ 1,623 $ — $ 1,232 $ 7 Commercial and industrial 315 315 — 355 — Paycheck Protection Program — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 2,057 2,057 — 1,793 20 Consumer installment 3 3 — 8 — 2,952 3,998 — 3,388 27 With an allowance recorded: Commercial (secured by real estate) 1,318 1,096 7 1,356 40 Commercial and industrial 618 618 45 692 — Construction, land and acquisition & development — — — — — Residential mortgage 1,152 1,154 6 1,816 36 Consumer installment — — — — — 3,088 2,868 58 3,864 76 Total impaired loans $ 6,040 $ 6,866 $ 58 $ 7,252 $ 103 December 31, 2020 With no related allowance recorded: Commercial (secured by real estate) $ 1,136 $ 2,232 $ — $ 1,138 $ 42 Commercial and industrial 395 395 — 395 — Paycheck Protection Program — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 1,986 1,987 — 2,041 9 Consumer installment 8 8 — 9 1 3,525 4,622 — 3,583 52 With an allowance recorded: Commercial (secured by real estate) 1,448 1,449 2 — 91 Commercial and industrial 690 690 35 1,481 6 Construction, land and acquisition & development — — — 727 — Residential mortgage 1,611 1,613 14 — 73 Consumer installment — — — 1,634 — 3,749 3,752 51 3,842 170 Total impaired loans $ 7,274 $ 8,374 $ 51 $ 7,425 $ 222 The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of June 30, 2021 and December 31, 2020 by class of loans: (in thousands) June 30, 2021 30 -59 Days Past Due 60- 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Nonaccrual Commercial (secured by real estate) $ — $ — $ — $ — $ 193,965 $ 193,965 $ 496 Commercial and industrial 47 484 — 531 157,102 157,633 1,001 Paycheck Protection Program — — — — 73,020 73,020 — Construction, land and acquisition & development — — — — 26,954 26,954 — Residential mortgage 383 1,166 171 1,720 77,775 79,495 3,062 Consumer installment 6 10 — 16 58,928 58,944 46 Total $ 436 $ 1,660 $ 171 $ 2,267 $ 587,744 $ 590,011 $ 4,606 December 31, 2020 Commercial (secured by real estate) $ 3,386 $ — $ 1,136 $ 4,522 $ 174,049 $ 178,571 $ 1,157 Commercial and industrial 29 — 1,085 1,114 154,440 155,554 1,085 Paycheck Protection Program — — — — 101,749 101,749 — Construction, land and acquisition & development 1,392 — — 1,392 22,179 23,571 — Residential mortgage 4,308 1,094 1,444 6,846 84,931 91,777 2,587 Consumer installment 78 — 73 151 47,242 47,393 73 Total $ 9,193 $ 1,094 $ 3,738 $ 14,025 $ 584,590 $ 598,615 $ 4,902 There were no loans past due 90 days or greater and still accruing interest as of June 30, 2021 and December 31, 2020. There was one new troubled debt restructuring during the six months ended June 30, 2021 and no new troubled debt restructurings during the six months ended June 30, 2020. No troubled debt restructurings subsequently defaulted during the six months ended June 30, 2021 or 2020. The Bank has allocated an allowance for loan losses of approximately $13,000 and $17,000 to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2021 and December 31, 2020, respectively. The Bank categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Bank analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on a continuous basis. The Bank uses the following definitions for its risk ratings: Special Mention. Loans have potential weaknesses that may, if not corrected, weaken or inadequately protect the Bank's credit position at some future date. Weaknesses are generally the result of deviation from prudent lending practices, such as over advances on collateral. Credits in this category should, within a 12-month period, move to Pass if improved or drop to Substandard if poor trends continue. Substandard. Inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans have a well-defined weakness or weaknesses such as primary source of repayment is gone or severely impaired or cash flow is insufficient to reduce debt. There is a distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected. Doubtful. Loans have the same weaknesses as those classified Substandard, with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable. The likelihood of a loss on an asset or portion of an asset classified Doubtful is high. Loss. Loans considered uncollectible and of such little value that the continuance as a Bank asset is not warranted. This does not mean that the loan has no recovery or salvage value, but rather the asset should be charged off even though partial recovery may be possible in the future. Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of June 30, 2021 and December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands) June 30, 2021 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 192,292 $ 1,177 $ 496 $ — $ 193,965 Commercial and industrial 156,632 — 1,001 — 157,633 Paycheck Protection Program 73,020 — — — 73,020 Construction, land and acquisition & development 26,954 — — — 26,954 Residential mortgage 75,054 — 4,441 — 79,495 Consumer installment 58,898 — 46 — 58,944 Total $ 582,850 $ 1,177 $ 5,984 $ — $ 590,011 December 31, 2020 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 176,629 $ 785 $ 1,157 $ — $ 178,571 Commercial and industrial 154,469 — 1,085 — 155,554 Paycheck Protection Program 101,749 — — — 101,749 Construction, land and acquisition & development 23,571 — — — 23,571 Residential mortgage 87,738 62 3,977 — 91,777 Consumer installment 47,332 — 61 — 47,393 Total $ 591,488 $ 847 $ 6,280 $ — $ 598,615 |
Deposits
Deposits | 6 Months Ended |
Jun. 30, 2021 | |
Deposits [Abstract] | |
Deposits | (5) Deposits The aggregate amounts of certificates of deposit greater than $250,000, the standard FDIC deposit insurance coverage limit per depositor, were approximately $25.3 million at June 30, 2021 and $32.9 million at December 31, 2020. |
Borrowings
Borrowings | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Borrowings | (6) Borrowings The following FHLB advances, which required monthly or quarterly interest payments, were outstanding at June 30, 2021: Advance Date Advance Fair Value Adjustment Interest Rate Maturity Rate Call Feature 5/23/2019 8,000,000 422,265 2.40 % 5/23/2029 Convertible 5/23/2022 12/16/2019 5,000,000 289,006 2.37 % 12/17/2029 Convertible 12/17/2021 11/29/2019 5,000,000 340,968 2.66 % 11/29/2029 Convertible 11/29/2022 1/21/2021 10,000,000 — 0.68 % 1/21/2026 Fixed None 3/8/2021 10,000,000 — 0.54 % 3/8/2024 Fixed None 5/3/2021 10,000,000 — 0.76 % 5/2/2025 Fixed None $ 48,000,000 $ 1,052,239 There were FHLB advances totaling $19.1 million consisting of advances with a book value of $1.8 million and a fair value adjustment of $1.1 million as of December 31, 2020. At June 30, 2021 and December 31, 2020, the FHLB advances were collateralized by certain loans which totaled approximately $249.5 million and $309.9 million, and by the Company’s investment in FHLB stock which totaled approximately $2.2 million and $1.3 million at June 30, 2021 and December 31, 2020. The Company had one FHLB letter of credit of $8.0 million and $16.0 million, used to collateralize public deposits, outstanding at June 30, 2021 and December 31, 2020, respectively. The Company borrowed $5.0 million from First National Bankers Bank during the year ended December 31, 2020. ten-year The Company borrowed $100.8 million under the Federal Reserve Bank of Atlanta to fund PPP loans under the U.S. CARES Act (the Paycheck Protection Program Liquidity Facility). This was secured by PPP loans totaling $101.7 million made during the year ended December 31, 2020. These borrowings had a fixed interest rate of 0.35% and a maturity date equal to the maturity date of the related PPP loans, with the PPP loans maturing either two or five years from the origination date of the PPP loan. In January 2021, the borrowing was repaid and none was outstanding at June 30, 2021. |
Employee Stock Ownership Plan
Employee Stock Ownership Plan | 6 Months Ended |
Jun. 30, 2021 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Employee Stock Ownership Plan | (7) Employee Stock Ownership Plan The Company sponsors an employee stock ownership plan (“ESOP”) that covers all employees who meet certain service requirements. The Company makes annual contributions to the ESOP in amounts as defined by the plan document. These contributions are used to pay debt service and purchase additional shares. Certain ESOP shares are pledged as collateral for debt. As the debt is repaid, shares are released from collateral and allocated to active employees, based on the proportion of debt service paid in the year. In April 2017, the ESOP borrowed $3.0 million payable to the Company for the purpose of purchasing shares of the Company’s common stock. A total of 295,499 shares were purchased with the loan proceeds as part of the Company’s initial stock offering. In January 2021, the ESOP borrowed $3.0 million payable to the Company for the purpose of purchasing additional shares of the Company’s common stock. A total of 225,721 shares were purchased with the loan proceeds as part of the Company’s stock offering. Total ESOP expense for the three months and six months ended June 30, 2021 and 2020 was approximately $65,000 and $21,000 and $122,000 and $51,000, respectively. The balance of the note payable of the ESOP was approximately $5.6 million and $2.6 million at June 30, 2021 and December 31, 2020. Because the source of the loan payments is contributions received by the ESOP from the Company, the related note receivable is shown as a reduction of stockholders’ equity. As of June 30, 2021 and December 31, 2020, 47,200 shares had been released. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award Additional General Disclosures [Abstract] | |
Stock-Based Compensation | (8) Stock-Based Compensation In August 2018, shareholders approved the Company’s 2018 Equity Incentive Plan, which authorizes the issuance of up to 133,987 shares of common stock pursuant to restricted stock grants and up to 334,970 shares of common stock pursuant to the exercise of options. A Black-Scholes model is utilized to estimate the fair value of stock option grants, while the market price of the Company’s stock at the date of grant is used to estimate the fair value of restricted stock awards. There were no stock option grants or restricted stock grants during the six months ended June 30, 2021. A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2020 321,516 $ 9.77 Granted — — Exercise of stock options* — — Forfeited — — Outstanding - March 31, 2021 321,516 $ 9.77 8.20 $ 464 Exercisable - March 31, 2021 38,186 $ 11.14 8.00 $ — Granted — — Exercise of stock options* — — Forfeited — — Outstanding - June 30, 2021 321,516 $ 9.77 7.95 $ 521 Exercisable - June 30, 2021 102,489 $ 10.28 8.08 $ 104 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. Intrinsic value represents the amount by which the fair market value of the underlying stock exceeds the exercise price of the stock options. A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Date Fair Value Restricted Shares Outstanding Outstanding - December 31, 2020 $ 8.63 120,123 Granted — — Vested* — — Forfeited — — Outstanding - March 31, 2021 $ 8.63 120,123 Granted — — Vested* 8.63 26,787 Forfeited — — Outstanding - June 30, 2021 $ 8.63 93,336 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 2,641 shares were surrendered during the three months ended June 30, 2021. The Company recognized approximately $75,000,$158,000, $185,000 and $78,000 (after taking into account the reversals of previously recognized expense related to forfeitures of stock options and restricted stock of approximately $152,000 during the six months ended June 30, 2020) of stock-based compensation expense during the three months and six months ended June 30, 2021 and 2020, respectively, associated with its common stock awards granted to directors and officers. As of June 30, 2021, there was approximately $1.4 million of unrecognized compensation cost related to equity award grants. The cost is expected to be recognized over the weighted average remaining vesting period of approximately 3.5 years. |
Fair Value Measurements and Dis
Fair Value Measurements and Disclosures | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements and Disclosures | (9) Fair Value Measurements and Disclosures The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. From time to time, the Company may be required to record at fair value other assets on a nonrecurring basis, such as impaired loans and other real estate owned. These nonrecurring fair value adjustments typically involve application of the lower of cost or market accounting or write-downs of individual assets. Additionally, the Company is required to disclose, but not record, the fair value of other financial instruments. Fair Value Hierarchy The Company groups assets and liabilities 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. These levels are: Level 1 – Valuation is based upon quoted prices for identical instruments traded in active markets. Level 2 – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active, and model-based valuation techniques for which all significant assumptions are observable in the market. Level 3 – Valuation is generated from model-based techniques that use at least one significant assumption not observable in the market. These unobservable assumptions reflect estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Following is a description of valuation methodologies used for assets and liabilities recorded at fair value. Cash and Cash Equivalents The carrying value of cash and cash equivalents is a reasonable estimate of fair value. Investment Securities Available-for-Sale Available-for-sale securities are recorded at market value. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using independent pricing models or other model-based valuation techniques such as the present value of future cash flows, adjusted for the security’s credit rating, prepayment assumptions and other factors such as credit loss assumptions. Level 1 securities include those traded on an active exchange, such as the New York Stock Exchange, and U.S. Treasury securities that are traded by dealers or brokers in active over-the-counter market funds. Level 2 securities include mortgage-backed securities issued by government sponsored enterprises and state, county and municipal bonds. Securities classified as Level 3 include asset-backed securities in less liquid markets. Other Investments The carrying value of other investments includes FHLB stock and FNBB stock and approximates fair value. Loans The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and a specific reserve may be required to be established within the allowance for loan losses. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with GAAP. The fair value of impaired loans is estimated using one of three methods, including collateral value, market value of similar debt, and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. In accordance with GAAP, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price, the Company records the impaired loan as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Company records the impaired loan as nonrecurring Level 3. For disclosure purposes, the fair value of fixed rate loans which are not considered impaired is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings. For unimpaired variable rate loans, the carrying amount is a reasonable estimate of fair value for disclosure purposes. Other Real Estate Owned Other real estate properties are adjusted to fair value upon transfer of the loans to other real estate. Subsequently, other real estate assets are carried at fair value less estimated selling costs. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. When the fair value of the collateral is based on an observable market price, the Bank records the other real estate as nonrecurring Level 2. When an appraised value is used or an appraisal is not available or management determines the fair value of the collateral is further impaired below the appraised value and there is no observable market price, the Bank records the other real estate asset as nonrecurring Level 3. Bank Owned Life Insurance The carrying value of the cash surrender value of life insurance reasonably approximates fair value. Deposits The fair value of savings accounts, interest bearing checking accounts, non-interest bearing checking accounts and market rate checking accounts is the amount payable on demand at the reporting date, while the fair value of fixed maturity certificates of deposit is estimated by discounting the future cash flows using current rates at which comparable certificates would be issued. FHLB Advances The fair value of FHLB fixed-rate borrowings is estimated using discounted cash flows, based on the current incremental borrowing rates for similar types of borrowing arrangements. PPPLF and Other Borrowings The carrying value of other borrowings reasonably approximates fair value. The Paycheck Protection Program Liquidity Facility funding has a fixed rate of 0.35% for all participants; thus, the carrying value approximates the estimated fair value. Commitments to Extend Credit Commitments to extend credit are short-term and, therefore, the carrying value and the fair value are considered immaterial for disclosure. Assets Recorded at Fair Value on a Recurring Basis The Company’s only assets recorded at fair value on a recurring basis are available-for-sale securities that had fair values of approximately $36.6 million and $24.0 million at June 30, 2021 and December 31, 2020. They are classified as Level 2. Assets Recorded at Fair Value on a Nonrecurring Basis The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below as of June 30, 2021 and December 31, 2020 (in thousands). June 30, 2021 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ — $ — Impaired loans — — 5,982 5,982 Total assets at fair value $ — $ — $ 5,982 $ 5,982 December 31, 2020 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 1,292 $ 1,292 Impaired loans — — 7,223 7,223 Total assets at fair value $ — $ — $ 8,515 $ 8,515 The carrying amounts and estimated fair values (in thousands) of the Company’s financial instruments at June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets: Cash and cash equivalents $ 115,716 $ 115,716 $ 178,253 $ 178,253 Investment securities available-for-sale 36,591 36,591 24,005 24,005 FHLB stock 2,476 2,476 1,596 1,596 Loans, net 582,624 593,677 592,254 611,625 Cash surrender value of life insurance 15,192 15,192 15,311 15,311 Financial liabilities: Deposits 611,897 603,079 640,165 639,269 FHLB advances 49,052 47,520 19,117 16,769 PPPLF borrowings — — 100,813 100,813 Other borrowings — — 5,000 5,000 Limitations Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on many judgments. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates. |
Nature of Operations (Policies)
Nature of Operations (Policies) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Reorganization | Reorganization On January 20, 2021, the Company completed the Conversion of Community First Bancshares, MHC, the top tier mutual holding company of Community First Bancshares, Inc. Community First Bancshares, Inc. was the former mid-tier holding company for Affinity Bank (formerly named Newton Federal Bank). Prior to completion of the Conversion, approximately 54% of the shares of common stock of Community First Bancshares, Inc. were owned by Community First Bancshares, MHC. In conjunction with the Conversion, Community First Bancshares, Inc. was merged into Affinity Bancshares, Inc. (and ceased to exist) and Affinity Bancshares, Inc. became its successor holding company for Newton Federal Bank. As part of the Conversion, on January 20, 2021, the Company raised gross proceeds of $37.1 million by selling a total of 3,701,509 shares of common stock at $10.00 per share in a stock offering. The Company utilized $3.0 million of the proceeds to fund an addition to its Employee Stock Ownership Plan (“ESOP”) loan for the acquisition of additional shares at $10.00 per share. Expenses incurred related to the offering were $1.7 million and have been recorded against offering proceeds. The Company invested $16.3 million of the net proceeds it received from the sale into the Bank’s operations and has retained the remaining amount for general corporate purposes. Concurrent with the completion of the stock offering, each share of Community First Bancshares, Inc. common stock owned by public stockholders (stockholders other than Community First Bancshares, MHC) was exchanged for 0.90686 shares of Company common stock. All share amounts have been adjusted for the conversion, including outstanding restricted stock and stock options. |
Basis of Presentation | Basis of Presentation The accompanying unaudited consolidated financial statements and notes thereto contain all adjustments, consisting only of normal recurring adjustments, necessary to present fairly, in accordance with accounting principles generally accepted in the United States of America (“GAAP”), the financial position of the Company as of June 30, 2021 and the results of its operations and its cash flows for the periods presented. The interim consolidated financial information should be read in conjunction with the audited financial statements and the notes thereto included in the Company’s Annual Report on Form 10-K for the year ended December 31, 2020. The results of operations for the three and six months ended June 30, 2021 are not necessarily indicative of the results to be expected for a full year or for any other period. |
Use of Estimates | Use of Estimates – The preparation of financial statements in conformity with GAAP 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 consolidated financial statements and the reported amounts of revenues and expenses during the reported period. Actual results could differ from those estimates. Material estimates common to the banking industry that are particularly susceptible to significant change in the near term include, but are not limited to, the determination of the allowance for loan losses, the valuation of acquired loans, the valuation of other real estate acquired in connection with foreclosure or in satisfaction of loans and valuation allowances associated with the realization of deferred tax assets, which are based on future taxable income. |
Earnings Per Share | Earnings per Share Basic earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding during the period. Diluted earnings per common share are calculated by dividing net income available to common shareholders by the weighted average number of shares adjusted for the dilutive effect of common stock awards (outstanding stock options), if any. Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands except per share data) Net income (loss) $ 2,318 $ 1,079 $ 4,450 $ (219 ) Weighted average common shares outstanding 6,873,358 6,834,148 6,874,306 6,830,625 Effect of dilutive common stock awards 33,157 — 33,157 — Diluted weighted average common shares outstanding 6,906,515 6,834,148 6,907,463 6,830,625 Basic earnings (loss) per common share* $ 0.34 $ 0.16 $ 0.65 $ (0.03 ) Diluted earnings (loss) per common share* $ 0.34 $ 0.16 $ 0.64 $ (0.03 ) *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year-to-date earnings per share data. For the three months and six months ended June 30, 2020, options to purchase 90,441 shares are excluded from the calculation of diluted earnings per common share as the effect of their exercise would have been anti-dilutive. There were no anti-dilutive options for the three and six months ended June 30, 2021. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements There have been no pronouncements issued during the quarter that would have a material impact on the Company's financial statements. |
Nature of Operations (Tables)
Nature of Operations (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Accounting Policies [Abstract] | |
Schedule of Calculations for Basic and Diluted Earnings Per Common Share | Presented below are the calculations for basic and diluted earnings per common share. Three Months Ended June 30, Six Months Ended June 30, 2021 2020 2021 2020 (In thousands except per share data) Net income (loss) $ 2,318 $ 1,079 $ 4,450 $ (219 ) Weighted average common shares outstanding 6,873,358 6,834,148 6,874,306 6,830,625 Effect of dilutive common stock awards 33,157 — 33,157 — Diluted weighted average common shares outstanding 6,906,515 6,834,148 6,907,463 6,830,625 Basic earnings (loss) per common share* $ 0.34 $ 0.16 $ 0.65 $ (0.03 ) Diluted earnings (loss) per common share* $ 0.34 $ 0.16 $ 0.64 $ (0.03 ) *Cumulative quarterly per share performance may not equal annual per share totals due to the effects of the amount and timing of capital increases. When computing earnings per share for an interim period, the denominator is based on the weighted average shares outstanding during the interim period, and not on an annualized weighted average basis. Accordingly, the sum of the earnings per share data for the quarters will not necessarily equal the year-to-date earnings per share data. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Assets Acquired and Liabilities Assumed | The fair value of the assets acquired and liabilities assumed on January 10, 2020 was as follows: As recorded by Fair Value As recorded by ABB Adjustments CFBI (in thousands) Cash, cash equivalents and securities available-for-sale $ 41,561 $ — $ 41,561 Loans 264,176 (2,327 ) 261,849 Other real estate owned 790 — 790 Core deposit intangible — 1,913 1,913 Fixed assets and other assets 11,629 — 11,629 Total assets acquired 318,156 (414 ) 317,742 Deposits 249,049 265 249,314 Borrowings and other liabilities 37,764 1,654 39,418 Total liabilities acquired 286,813 1,919 288,732 Excess of assets acquired over liabilities acquired 31,343 (2,333 ) 29,010 Purchase price 40,338 Net assets acquired 29,010 Less preferred stock redeemed (5,891 ) Net assets acquired less preferred stock 23,119 Goodwill $ 17,219 |
Schedule of Unaudited Proforma Information Results of Operations | The following unaudited pro forma information presents the results of operations for six months ended June 30, 2020, as if the acquisition had occurred January 1 of the period. The Company expects to achieve further operating cost savings and other business synergies as a result of the acquisition which are not reflected in the pro forma amounts. These unaudited pro forma results are presented for illustrative purposes and are not intended to represent or be indicative of the actual results of operations of the combined company that would have been achieved had the acquisition occurred at the beginning of each period presented, nor are they intended to represent or be indicative of future results of operations. Six Months Ended June 30, 2020 (In thousands except per share data) Total revenues, net of interest expense $ 12,286 Net loss (1,279 ) Diluted loss per share (0.17 ) |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Investments Debt And Equity Securities [Abstract] | |
Schedule of Investment Securities Available-for-Sale | Investment securities available-for-sale at June 30, 2021 and December 31, 2020 are as follows: (in thousands) Amortized Gross Unrealized Gross Unrealized Estimated June 30, 2021 Cost Gains Losses Fair Value U.S. Treasury securities $ 3,072 1 (4 ) 3,069 Municipal securities - tax exempt 543 — (6 ) 537 U. S. Government sponsored enterprises 11,837 — (348 ) 11,489 Government agency mortgage-backed securities 15,178 256 (73 ) 15,361 Corporate securities 6,223 14 (102 ) 6,135 Total $ 36,853 $ 271 $ (533 ) $ 36,591 December 31, 2020 U. S. Government sponsored enterprises $ 11,870 $ 1 $ (12 ) $ 11,859 Government agency mortgage-backed securities 9,206 326 — 9,532 Corporate securities 2,715 — (101 ) 2,614 Total $ 23,791 $ 327 $ (113 ) $ 24,005 |
Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Available-for-Sale by Contractual Maturity | The amortized cost and estimated fair value of investment securities available-for-sale at June 30, 2021, by contractual maturity, are shown below. Maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to call or prepay certain obligations with or without call or prepayment penalties. Therefore, these securities are not included in the maturity categories. (in thousands) Amortized Estimated Cost Fair Value U.S. Treasury securities Within 1 year $ — — Greater than 1 to 5 years — — Greater than 5 to 10 years 3,072 3,069 Greater than 10 years — — Municipal securities - tax exempt Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years — — Greater than 10 years 543 537 Government agency securities Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years — — Greater than 10 years 11,837 11,489 Trust preferred securities Within 1 year — — Greater than 1 to 5 years — — Greater than 5 to 10 years 5,723 5,710 Greater than 10 years 500 425 21,675 21,230 Government agency mortgage-backed securities 15,178 15,361 Total $ 36,853 $ 36,591 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Receivables [Abstract] | |
Summary of Major Classifications of Loans | Major classifications of loans, by collateral code, at June 30, 2021 and December 31, 2020 are summarized as follows: (in thousands) June 30, 2021 December 31, 2020 Commercial (secured by real estate) $ 193,965 $ 178,571 Commercial and industrial 157,633 155,554 Paycheck Protection Program loans 73,020 101,749 Construction, land and acquisition & development 26,954 23,571 Residential mortgage 1-4 family 79,495 91,777 Consumer installment 58,944 47,393 Total 590,011 598,615 Less allowance for loan losses (7,387 ) (6,361 ) Total loans, net $ 582,624 $ 592,254 |
Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method | The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of and for the six months ended June 30, 2021 and 2020: (in thousands) June 30, 2021 Commercial (Secured by Real Estate) Commercial and Industrial Paycheck Protection Program (1) Construction, Land and Acquisition & Development Residential Mortgage Consumer Installment Unallocated Total Allowance for loan losses: Beginning balance $ 3,084 $ 1,320 $ — $ 224 $ 970 $ 719 $ 44 $ 6,361 Provision 293 722 — 54 (361 ) 66 (24 ) 750 Charge-offs — (55 ) — — — (26 ) — (81 ) Recoveries 250 35 — — 69 3 — 357 Ending balance $ 3,627 $ 2,022 $ — $ 278 $ 678 $ 762 $ 20 $ 7,387 Ending allowance attributable to loans: . Individually evaluated for impairment $ 7 $ 45 $ — $ — $ 6 $ — $ — $ 58 Collectively evaluated for impairment 3,620 1,977 — 278 672 762 20 7,329 Total ending allowance $ 3,627 2,022 $ — 278 678 762 20 7,387 Loans: Individually evaluated for impairment $ 1,895 $ 933 $ — $ — $ 3,209 $ 3 $ — $ 6,040 Collectively evaluated for impairment 192,070 156,700 73,020 26,954 76,286 58,941 — 583,971 Total loans $ 193,965 $ 157,633 $ 73,020 $ 26,954 $ 79,495 $ 58,944 $ — $ 590,011 December 31, 2020 Allowance for loan losses: Beginning balance $ 1,661 $ 1,478 $ — $ 153 $ 369 $ 466 $ 7 $ 4,134 Provision 1,207 (194 ) — 71 627 252 37 2,000 Charge-offs (30 ) — — — (126 ) (29 ) — (185 ) Recoveries 246 36 — — 100 30 — 412 Ending balance $ 3,084 $ 1,320 $ $ 224 $ 970 $ 719 $ 44 $ 6,361 Ending allowance attributable to loans: Individually evaluated for impairment $ 2 $ 35 $ — $ — $ 14 $ — $ — $ 51 Collectively evaluated for impairment 3,082 1,285 — 224 956 719 44 6,310 Total ending allowance $ 3,084 $ 1,320 $ — $ 224 $ 970 $ 719 $ 44 $ 6,361 Loans: Individually evaluated for impairment $ 2,584 $ 1,085 $ — $ — $ 3,597 $ 8 $ — $ 7,274 Collectively evaluated for impairment 175,987 154,469 101,749 23,571 88,180 47,385 — 591,341 Total loans $ 178,571 $ 155,554 $ 101,749 $ 23,571 $ 91,777 $ 47,393 $ — $ 598,615 (1) Includes PPP loans that are fully guaranteed by the SBA; thus no allowance for loan losses has been allocated to these loans. |
Summary of Impaired Loans | Impaired loans at June 30, 2021 and December 31, 2020 were as follows: (in thousands) June 30, 2021 Recorded Investment Unpaid Principal Balance Allocated Related Allowance Average Recorded Investment Interest Income Recognized With no related allowance recorded: Commercial (secured by real estate) $ 577 $ 1,623 $ — $ 1,232 $ 7 Commercial and industrial 315 315 — 355 — Paycheck Protection Program — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 2,057 2,057 — 1,793 20 Consumer installment 3 3 — 8 — 2,952 3,998 — 3,388 27 With an allowance recorded: Commercial (secured by real estate) 1,318 1,096 7 1,356 40 Commercial and industrial 618 618 45 692 — Construction, land and acquisition & development — — — — — Residential mortgage 1,152 1,154 6 1,816 36 Consumer installment — — — — — 3,088 2,868 58 3,864 76 Total impaired loans $ 6,040 $ 6,866 $ 58 $ 7,252 $ 103 December 31, 2020 With no related allowance recorded: Commercial (secured by real estate) $ 1,136 $ 2,232 $ — $ 1,138 $ 42 Commercial and industrial 395 395 — 395 — Paycheck Protection Program — — — — — Construction, land and acquisition & development — — — — — Residential mortgage 1,986 1,987 — 2,041 9 Consumer installment 8 8 — 9 1 3,525 4,622 — 3,583 52 With an allowance recorded: Commercial (secured by real estate) 1,448 1,449 2 — 91 Commercial and industrial 690 690 35 1,481 6 Construction, land and acquisition & development — — — 727 — Residential mortgage 1,611 1,613 14 — 73 Consumer installment — — — 1,634 — 3,749 3,752 51 3,842 170 Total impaired loans $ 7,274 $ 8,374 $ 51 $ 7,425 $ 222 |
Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans | The following table presents the aging of the recorded investment in past due loans, as well as the recorded investment in nonaccrual loans, as of June 30, 2021 and December 31, 2020 by class of loans: (in thousands) June 30, 2021 30 -59 Days Past Due 60- 89 Days Past Due 90 Days or Greater Past Due Total Past Due Current Total Nonaccrual Commercial (secured by real estate) $ — $ — $ — $ — $ 193,965 $ 193,965 $ 496 Commercial and industrial 47 484 — 531 157,102 157,633 1,001 Paycheck Protection Program — — — — 73,020 73,020 — Construction, land and acquisition & development — — — — 26,954 26,954 — Residential mortgage 383 1,166 171 1,720 77,775 79,495 3,062 Consumer installment 6 10 — 16 58,928 58,944 46 Total $ 436 $ 1,660 $ 171 $ 2,267 $ 587,744 $ 590,011 $ 4,606 December 31, 2020 Commercial (secured by real estate) $ 3,386 $ — $ 1,136 $ 4,522 $ 174,049 $ 178,571 $ 1,157 Commercial and industrial 29 — 1,085 1,114 154,440 155,554 1,085 Paycheck Protection Program — — — — 101,749 101,749 — Construction, land and acquisition & development 1,392 — — 1,392 22,179 23,571 — Residential mortgage 4,308 1,094 1,444 6,846 84,931 91,777 2,587 Consumer installment 78 — 73 151 47,242 47,393 73 Total $ 9,193 $ 1,094 $ 3,738 $ 14,025 $ 584,590 $ 598,615 $ 4,902 |
Summary of Risk Category of Loans by Class of Loans | Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass rated loans. As of June 30, 2021 and December 31, 2020, and based on the most recent analysis performed, the risk category of loans by class of loans is as follows: (in thousands) June 30, 2021 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 192,292 $ 1,177 $ 496 $ — $ 193,965 Commercial and industrial 156,632 — 1,001 — 157,633 Paycheck Protection Program 73,020 — — — 73,020 Construction, land and acquisition & development 26,954 — — — 26,954 Residential mortgage 75,054 — 4,441 — 79,495 Consumer installment 58,898 — 46 — 58,944 Total $ 582,850 $ 1,177 $ 5,984 $ — $ 590,011 December 31, 2020 Pass Special Mention Substandard Doubtful/ Loss Total Commercial (secured by real estate) $ 176,629 $ 785 $ 1,157 $ — $ 178,571 Commercial and industrial 154,469 — 1,085 — 155,554 Paycheck Protection Program 101,749 — — — 101,749 Construction, land and acquisition & development 23,571 — — — 23,571 Residential mortgage 87,738 62 3,977 — 91,777 Consumer installment 47,332 — 61 — 47,393 Total $ 591,488 $ 847 $ 6,280 $ — $ 598,615 |
Borrowings (Tables)
Borrowings (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Federal Home Loan Bank of Atlanta (FHLB) Advances | The following FHLB advances, which required monthly or quarterly interest payments, were outstanding at June 30, 2021: Advance Date Advance Fair Value Adjustment Interest Rate Maturity Rate Call Feature 5/23/2019 8,000,000 422,265 2.40 % 5/23/2029 Convertible 5/23/2022 12/16/2019 5,000,000 289,006 2.37 % 12/17/2029 Convertible 12/17/2021 11/29/2019 5,000,000 340,968 2.66 % 11/29/2029 Convertible 11/29/2022 1/21/2021 10,000,000 — 0.68 % 1/21/2026 Fixed None 3/8/2021 10,000,000 — 0.54 % 3/8/2024 Fixed None 5/3/2021 10,000,000 — 0.76 % 5/2/2025 Fixed None $ 48,000,000 $ 1,052,239 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award Additional General Disclosures [Abstract] | |
Summary of Stock Option Activity | A summary of the Company’s stock option activity is summarized below. Stock Options Option Shares Outstanding Weighted Average Exercise Price Weighted Average Remaining Life (Years) Aggregate Intrinsic Value (in thousands) Outstanding - December 31, 2020 321,516 $ 9.77 Granted — — Exercise of stock options* — — Forfeited — — Outstanding - March 31, 2021 321,516 $ 9.77 8.20 $ 464 Exercisable - March 31, 2021 38,186 $ 11.14 8.00 $ — Granted — — Exercise of stock options* — — Forfeited — — Outstanding - June 30, 2021 321,516 $ 9.77 7.95 $ 521 Exercisable - June 30, 2021 102,489 $ 10.28 8.08 $ 104 * The terms of the stock option agreements permit having a number of shares of stock withheld, the fair market value of which as of the date of exercise is sufficient to satisfy the exercise price and/or tax withholding requirements. |
Summary of Restricted Stock Activity | A summary of the Company’s restricted stock activity is summarized below. Restricted Stock Weighted Average Grant Date Fair Value Restricted Shares Outstanding Outstanding - December 31, 2020 $ 8.63 120,123 Granted — — Vested* — — Forfeited — — Outstanding - March 31, 2021 $ 8.63 120,123 Granted — — Vested* 8.63 26,787 Forfeited — — Outstanding - June 30, 2021 $ 8.63 93,336 * The terms of the restricted stock agreements permit the surrender of shares to the Company upon vesting in order to satisfy applicable tax withholding requirements at the minimum statutory withholding rate, and accordingly, 2,641 shares were surrendered during the three months ended June 30, 2021. |
Fair Value Measurements and D_2
Fair Value Measurements and Disclosures (Tables) | 6 Months Ended |
Jun. 30, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Nonrecurring Basis | Assets measured at fair value on a nonrecurring basis are included in the table below as of June 30, 2021 and December 31, 2020 (in thousands). June 30, 2021 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ — $ — Impaired loans — — 5,982 5,982 Total assets at fair value $ — $ — $ 5,982 $ 5,982 December 31, 2020 Level 1 Level 2 Level 3 Total Other real estate owned $ — $ — $ 1,292 $ 1,292 Impaired loans — — 7,223 7,223 Total assets at fair value $ — $ — $ 8,515 $ 8,515 |
Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments | The carrying amounts and estimated fair values (in thousands) of the Company’s financial instruments at June 30, 2021 and December 31, 2020 are as follows: June 30, 2021 December 31, 2020 Carrying Estimated Carrying Estimated Amount Fair Value Amount Fair Value Financial assets: Cash and cash equivalents $ 115,716 $ 115,716 $ 178,253 $ 178,253 Investment securities available-for-sale 36,591 36,591 24,005 24,005 FHLB stock 2,476 2,476 1,596 1,596 Loans, net 582,624 593,677 592,254 611,625 Cash surrender value of life insurance 15,192 15,192 15,311 15,311 Financial liabilities: Deposits 611,897 603,079 640,165 639,269 FHLB advances 49,052 47,520 19,117 16,769 PPPLF borrowings — — 100,813 100,813 Other borrowings — — 5,000 5,000 |
Nature of Operations - Addition
Nature of Operations - Additional Information (Details) $ / shares in Units, $ in Millions | Jan. 20, 2021USD ($)$ / sharesshares | Jun. 30, 2021shares | Jun. 30, 2020shares | Jun. 30, 2021shares | Jun. 30, 2020shares | Sep. 30, 2020 |
Basis Of Presentation [Line Items] | ||||||
Sale of stock, gross proceeds | $ 37.1 | |||||
Sale of stock, number of common stock issued | shares | 3,701,509 | |||||
Sale of stock, price per share | $ / shares | $ 10 | |||||
Cash contributions to Employee Stock Ownership Plan ("ESOP") | $ 3 | |||||
Employee stock ownership plan per share | $ / shares | $ 10 | |||||
Offering expenses | $ 1.7 | |||||
Amount invested in bank operations | $ 16.3 | |||||
Common stock exchange ratio | 0.90686 | |||||
Options to purchase shares excluded from calculation of diluted earnings per common share | shares | 0 | 90,441 | 0 | 90,441 | ||
Community First Bancshares, MHC | ||||||
Basis Of Presentation [Line Items] | ||||||
Common stock ownership percentage | 54.00% | 54.00% |
Nature of Operations - Schedule
Nature of Operations - Schedule of Calculations for Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | ||
Organization Consolidation And Presentation Of Financial Statements [Abstract] | |||||||
Net income (loss) | $ 2,318 | $ 2,132 | $ 1,079 | $ (1,298) | $ 4,450 | $ (219) | |
Weighted average common shares outstanding | 6,873,358 | 6,834,148 | 6,874,306 | 6,830,625 | |||
Effect of dilutive common stock awards | 33,157 | 33,157 | |||||
Diluted weighted average common shares outstanding | 6,906,515 | 6,834,148 | 6,907,463 | 6,830,625 | |||
Basic earnings (loss) per common share* | [1] | $ 0.34 | $ 0.16 | $ 0.65 | $ (0.03) | ||
Diluted earnings (loss) per common share* | [1] | $ 0.34 | $ 0.16 | $ 0.64 | $ (0.03) | ||
[1] | Amounts related to periods prior to the date of the Conversion (January 20, 2021) have been restated to give the retroactive recognition to the exchange ratio applied in the Conversion (0.90686-to-one) (see Note 1). |
Acquisition - Additional Inform
Acquisition - Additional Information (Details) $ / shares in Units, $ in Millions | Jan. 10, 2020USD ($)branchloan$ / sharesshares |
Affinity Bank | Cobb County, Georgia | |
Business Acquisition [Line Items] | |
Number of branch office | branch | 1 |
Affinity Bank | Fulton County, Georgia | |
Business Acquisition [Line Items] | |
Number of loan production office | loan | 1 |
ABB Financial Group, Inc. | |
Business Acquisition [Line Items] | |
Date of merger | Jan. 10, 2020 |
Common stock holder right to receive cash per share | $ / shares | $ 7.50 |
Cash paid | $ 40.3 |
Stock issued | shares | 0 |
Payments for vested restricted stock, net | $ 2.7 |
Acquisition - Schedule of Fair
Acquisition - Schedule of Fair Value of Assets Acquired and Liabilities Assumed (Details) $ in Thousands | Jan. 10, 2020USD ($) |
Business Acquisition [Line Items] | |
Cash, cash equivalents and securities available-for-sale | $ 41,561 |
Loans | 261,849 |
Other real estate owned | 790 |
Core deposit intangible | 1,913 |
Fixed assets and other assets | 11,629 |
Total assets acquired | 317,742 |
Deposits | 249,314 |
Borrowings and other liabilities | 39,418 |
Total liabilities acquired | 288,732 |
Excess of assets acquired over liabilities acquired | 29,010 |
Purchase price | 40,338 |
Net assets acquired | 29,010 |
Less preferred stock redeemed | (5,891) |
Net assets acquired less preferred stock | 23,119 |
Goodwill | 17,219 |
Fair Value Adjustments | |
Business Acquisition [Line Items] | |
Loans | (2,327) |
Core deposit intangible | 1,913 |
Total assets acquired | (414) |
Deposits | 265 |
Borrowings and other liabilities | 1,654 |
Total liabilities acquired | 1,919 |
Excess of assets acquired over liabilities acquired | (2,333) |
Net assets acquired | (2,333) |
ABB Financial Group, Inc. | |
Business Acquisition [Line Items] | |
Cash, cash equivalents and securities available-for-sale | 41,561 |
Loans | 264,176 |
Other real estate owned | 790 |
Fixed assets and other assets | 11,629 |
Total assets acquired | 318,156 |
Deposits | 249,049 |
Borrowings and other liabilities | 37,764 |
Total liabilities acquired | 286,813 |
Excess of assets acquired over liabilities acquired | 31,343 |
Net assets acquired | $ 31,343 |
Acquisition - Schedule of Unaud
Acquisition - Schedule of Unaudited Proforma Information Results of Operations (Details) $ / shares in Units, $ in Thousands | 6 Months Ended |
Jun. 30, 2020USD ($)$ / shares | |
Business Combinations [Abstract] | |
Total revenues, net of interest expense | $ 12,286 |
Net loss | $ (1,279) |
Diluted loss per share | $ / shares | $ (0.17) |
Investment Securities - Schedul
Investment Securities - Schedule of Investment Securities Available-for-Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | $ 36,853 | $ 23,791 |
Investment securities available-for-sale, Gross Unrealized Gains | 271 | 327 |
Investment securities available-for-sale, Gross Unrealized Losses | (533) | (113) |
Investment securities available-for-sale, Estimated Fair Value | 36,591 | 24,005 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 3,072 | |
Investment securities available-for-sale, Gross Unrealized Gains | 1 | |
Investment securities available-for-sale, Gross Unrealized Losses | (4) | |
Investment securities available-for-sale, Estimated Fair Value | 3,069 | |
Municipal Securities - Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 543 | |
Investment securities available-for-sale, Gross Unrealized Losses | (6) | |
Investment securities available-for-sale, Estimated Fair Value | 537 | |
Government Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 15,178 | 9,206 |
Investment securities available-for-sale, Gross Unrealized Gains | 256 | 326 |
Investment securities available-for-sale, Gross Unrealized Losses | (73) | |
Investment securities available-for-sale, Estimated Fair Value | 15,361 | 9,532 |
U.S. Government Sponsored Enterprises | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 11,837 | 11,870 |
Investment securities available-for-sale, Gross Unrealized Gains | 1 | |
Investment securities available-for-sale, Gross Unrealized Losses | (348) | (12) |
Investment securities available-for-sale, Estimated Fair Value | 11,489 | 11,859 |
Corporate Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 6,223 | 2,715 |
Investment securities available-for-sale, Gross Unrealized Gains | 14 | |
Investment securities available-for-sale, Gross Unrealized Losses | (102) | (101) |
Investment securities available-for-sale, Estimated Fair Value | $ 6,135 | $ 2,614 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)Security | Jun. 30, 2021USD ($)Security | Jun. 30, 2020USD ($)Security | Dec. 31, 2020USD ($) | |
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 14 | |||
Number of available-for-sale securities in unrealized loss position 12 months or greater | Security | 6 | |||
Gain on sale of available for sale securities | $ | $ 20,000 | $ 0 | $ 20,000 | |
Sales of available-for-sale securities, book value | $ | $ 1,700,000 | $ 1,700,000 | ||
Sales of available-for-sale securities | Security | 0 | 0 | ||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ | 36,591,000 | $ 24,005,000 | ||
Collateral Pledged and Repurchase Agreements | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ | $ 1,700,000 | 3,800,000 | ||
Government Agency Securities | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 4 | |||
U.S. Treasury Strip Bonds | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 2 | |||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ | $ 3,069,000 | |||
Government Agency Mortgage-Backed Securities | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 5 | |||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ | $ 15,361,000 | 9,532,000 | ||
Municipal Securities - Tax Exempt | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 1 | |||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ | $ 537,000 | |||
Corporate Securities | ||||
Schedule Of Available For Sale And Held To Maturity Securities [Line Items] | ||||
Number of available-for-sale securities in unrealized loss position less than 12 months | Security | 8 | |||
Carrying value of available-for-sale securities pledged to secure public deposits and repurchase agreements | $ | $ 6,135,000 | $ 2,614,000 |
Investment Securities - Sched_2
Investment Securities - Schedule of Amortized Cost and Estimated Fair Value of Investment Securities Available-for-Sale by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | $ 36,853 | $ 23,791 |
Investment securities available-for-sale, Estimated Fair Value | 36,591 | 24,005 |
U.S. Treasury Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Greater than 5 to 10 years, Amortized Cost | 3,072 | |
Investment securities available-for-sale, Amortized Cost | 3,072 | |
Investment securities available-for-sale, Greater than 5 to 10 years, Estimated Fair Value | 3,069 | |
Investment securities available-for-sale, Estimated Fair Value | 3,069 | |
Municipal Securities - Tax Exempt | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Greater than 10 years, Amortized Cost | 543 | |
Investment securities available-for-sale, Amortized Cost | 543 | |
Investment securities available-for-sale, Greater than10 years, Estimated Fair Value | 537 | |
Investment securities available-for-sale, Estimated Fair Value | 537 | |
Trust Preferred Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Greater than 5 to 10 years, Amortized Cost | 5,723 | |
Investment securities available-for-sale, Greater than 10 years, Amortized Cost | 500 | |
Investment securities available-for-sale, Greater than 5 to 10 years, Estimated Fair Value | 5,710 | |
Investment securities available-for-sale, Greater than10 years, Estimated Fair Value | 425 | |
Government Agency Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Greater than 10 years, Amortized Cost | 11,837 | |
Investment securities available-for-sale, Greater than10 years, Estimated Fair Value | 11,489 | |
U.S. Treasury Securities, Municipal Securities - Tax Exempt, Government Agency Securities and Trust Preferred Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 21,675 | |
Investment securities available-for-sale, Estimated Fair Value | 21,230 | |
Government Agency Mortgage-Backed Securities | ||
Schedule Of Available For Sale Securities [Line Items] | ||
Investment securities available-for-sale, Amortized Cost | 15,178 | 9,206 |
Investment securities available-for-sale, Estimated Fair Value | $ 15,361 | $ 9,532 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Summary of Major Classifications of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 | |
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | $ 590,011 | $ 598,615 | ||
Less allowance for loan losses | (7,387) | (6,361) | $ (4,134) | |
Total loans, net | 582,624 | 592,254 | ||
Commercial (Secured by Real Estate) | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | 193,965 | 178,571 | ||
Less allowance for loan losses | (3,627) | (3,084) | (1,661) | |
Commercial and Industrial | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | 157,633 | 155,554 | ||
Paycheck Protection Program Loans | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | [1] | 73,020 | 101,749 | |
Less allowance for loan losses | 0 | 0 | ||
Construction, Land and Acquisition & Development | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | 26,954 | 23,571 | ||
Less allowance for loan losses | (278) | (224) | (153) | |
Residential Mortgage 1-4 Family | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | 79,495 | 91,777 | ||
Consumer Installment | ||||
Loans And Leases Receivable Disclosure [Line Items] | ||||
Total loans, gross | 58,944 | 47,393 | ||
Less allowance for loan losses | $ (762) | $ (719) | $ (466) | |
[1] | Includes PPP loans that are fully guaranteed by the SBA; thus no allowance for loan losses has been allocated to these loans. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Additional Information (Details) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021USD ($)loanContract | Jun. 30, 2020USD ($)Contract | Dec. 31, 2020USD ($)loan | Dec. 31, 2019USD ($) | |
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Qualifying loans pledged to secure the line of credit from FHLB | $ 249,500,000 | $ 309,900,000 | ||
Troubled debt restructurings that have subsequently defaulted, recorded investment | $ 0 | $ 0 | ||
Troubled Debt Restructurings that have Subsequently Defaulted, Number of Contracts | Contract | 1 | 0 | ||
Allowance for loan losses | $ 7,387,000 | 6,361,000 | $ 4,134,000 | |
Modified Loan Terms | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Allowance for loan losses | 13,000 | 17,000 | ||
90 Days or Greater Past Due | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Total Past Due | $ 0 | $ 0 | ||
Small Business Administration | ||||
Financing Receivable Recorded Investment Past Due [Line Items] | ||||
Number of paycheck protection program loans | loan | 730 | 1,171 | ||
Paycheck protection program loans | $ 66,100,000 | $ 130,300,000 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2021 | Jun. 30, 2020 | Dec. 31, 2020 | ||
Allowance for loan losses: | ||||
Beginning balance | $ 6,361 | $ 4,134 | $ 4,134 | |
Provision | 750 | 800 | 2,000 | |
Charge-offs | (81) | (185) | ||
Recoveries | 357 | 412 | ||
Ending balance | 7,387 | 6,361 | ||
Ending allowance attributable to loans: | ||||
Individually evaluated for impairment | 58 | 51 | ||
Collectively evaluated for impairment | 7,329 | 6,310 | ||
Ending balance | 7,387 | 6,361 | ||
Loans: | ||||
Individually evaluated for impairment | 6,040 | 7,274 | ||
Collectively evaluated for impairment | 583,971 | 591,341 | ||
Total loans | 590,011 | 598,615 | ||
Commercial (Secured by Real Estate) | ||||
Allowance for loan losses: | ||||
Beginning balance | 3,084 | 1,661 | 1,661 | |
Provision | 293 | 1,207 | ||
Charge-offs | (30) | |||
Recoveries | 250 | 246 | ||
Ending balance | 3,627 | 3,084 | ||
Ending allowance attributable to loans: | ||||
Individually evaluated for impairment | 7 | 2 | ||
Collectively evaluated for impairment | 3,620 | 3,082 | ||
Ending balance | 3,627 | 3,084 | ||
Loans: | ||||
Individually evaluated for impairment | 1,895 | 2,584 | ||
Collectively evaluated for impairment | 192,070 | 175,987 | ||
Total loans | 193,965 | 178,571 | ||
Commercial and Industrial | ||||
Allowance for loan losses: | ||||
Beginning balance | 1,320 | 1,478 | 1,478 | |
Provision | 722 | (194) | ||
Charge-offs | (55) | |||
Recoveries | 35 | 36 | ||
Ending balance | 2,022 | 1,320 | ||
Ending allowance attributable to loans: | ||||
Individually evaluated for impairment | 45 | 35 | ||
Collectively evaluated for impairment | 1,977 | 1,285 | ||
Ending balance | 2,022 | 1,320 | ||
Loans: | ||||
Individually evaluated for impairment | 933 | 1,085 | ||
Collectively evaluated for impairment | 156,700 | 154,469 | ||
Total loans | 157,633 | 155,554 | ||
Paycheck Protection Program | ||||
Allowance for loan losses: | ||||
Beginning balance | 0 | |||
Ending balance | 0 | 0 | ||
Ending allowance attributable to loans: | ||||
Ending balance | 0 | 0 | ||
Loans: | ||||
Collectively evaluated for impairment | [1] | 73,020 | 101,749 | |
Total loans | [1] | 73,020 | 101,749 | |
Construction, Land and Acquisition & Development | ||||
Allowance for loan losses: | ||||
Beginning balance | 224 | 153 | 153 | |
Provision | 54 | 71 | ||
Ending balance | 278 | 224 | ||
Ending allowance attributable to loans: | ||||
Collectively evaluated for impairment | 278 | 224 | ||
Ending balance | 278 | 224 | ||
Loans: | ||||
Collectively evaluated for impairment | 26,954 | 23,571 | ||
Total loans | 26,954 | 23,571 | ||
Residential Mortgage | ||||
Allowance for loan losses: | ||||
Beginning balance | 970 | 369 | 369 | |
Provision | (361) | 627 | ||
Charge-offs | (126) | |||
Recoveries | 69 | 100 | ||
Ending balance | 678 | 970 | ||
Ending allowance attributable to loans: | ||||
Individually evaluated for impairment | 6 | 14 | ||
Collectively evaluated for impairment | 672 | 956 | ||
Ending balance | 678 | 970 | ||
Loans: | ||||
Individually evaluated for impairment | 3,209 | 3,597 | ||
Collectively evaluated for impairment | 76,286 | 88,180 | ||
Total loans | 79,495 | 91,777 | ||
Consumer Installment | ||||
Allowance for loan losses: | ||||
Beginning balance | 719 | 466 | 466 | |
Provision | 66 | 252 | ||
Charge-offs | (26) | (29) | ||
Recoveries | 3 | 30 | ||
Ending balance | 762 | 719 | ||
Ending allowance attributable to loans: | ||||
Collectively evaluated for impairment | 762 | 719 | ||
Ending balance | 762 | 719 | ||
Loans: | ||||
Individually evaluated for impairment | 3 | 8 | ||
Collectively evaluated for impairment | 58,941 | 47,385 | ||
Total loans | 58,944 | 47,393 | ||
Unallocated | ||||
Allowance for loan losses: | ||||
Beginning balance | 44 | $ 7 | 7 | |
Provision | (24) | 37 | ||
Ending balance | 20 | 44 | ||
Ending allowance attributable to loans: | ||||
Collectively evaluated for impairment | 20 | 44 | ||
Ending balance | $ 20 | $ 44 | ||
[1] | Includes PPP loans that are fully guaranteed by the SBA; thus no allowance for loan losses has been allocated to these loans. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Summary of Allowance for Loan Losses and Recorded Investment in Loans by Portfolio Segment and Based on Impairment Method (Parenthetical) (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | Dec. 31, 2019 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowances for loan losses | $ 7,387 | $ 6,361 | $ 4,134 |
Paycheck Protection Program Loans | |||
Financing Receivable Allowance For Credit Losses [Line Items] | |||
Allowances for loan losses | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Summary of Impaired Loans (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | $ 2,952 | $ 3,525 |
Unpaid Principal Balance, With no related allowance recorded | 3,998 | 4,622 |
Average Recorded Investment, With no related allowance recorded | 3,388 | 3,583 |
Interest Income Recognized, With no related allowance recorded | 27 | 52 |
Recorded Investment, With an allowance recorded | 3,088 | 3,749 |
Unpaid Principal Balance, With an allowance recorded | 2,868 | 3,752 |
Allocated Related Allowance, With an allowance recorded | 58 | 51 |
Average Recorded Investment, With an allowance recorded | 3,864 | 3,842 |
Interest Income Recognized, With an allowance recorded | 76 | 170 |
Total impaired loans, Recorded Investment | 6,040 | 7,274 |
Total impaired loans, Unpaid Principal Balance | 6,866 | 8,374 |
Total impaired loans, Allocated Related Allowance | 58 | 51 |
Total impaired loans, Average Recorded Investment | 7,252 | 7,425 |
Total impaired loans, Interest Income Recognized | 103 | 222 |
Commercial (Secured by Real Estate) | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 577 | 1,136 |
Unpaid Principal Balance, With no related allowance recorded | 1,623 | 2,232 |
Average Recorded Investment, With no related allowance recorded | 1,232 | 1,138 |
Interest Income Recognized, With no related allowance recorded | 7 | 42 |
Recorded Investment, With an allowance recorded | 1,318 | 1,448 |
Unpaid Principal Balance, With an allowance recorded | 1,096 | 1,449 |
Allocated Related Allowance, With an allowance recorded | 7 | 2 |
Average Recorded Investment, With an allowance recorded | 1,356 | |
Interest Income Recognized, With an allowance recorded | 40 | 91 |
Commercial and Industrial | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 315 | 395 |
Unpaid Principal Balance, With no related allowance recorded | 315 | 395 |
Average Recorded Investment, With no related allowance recorded | 355 | 395 |
Recorded Investment, With an allowance recorded | 618 | 690 |
Unpaid Principal Balance, With an allowance recorded | 618 | 690 |
Allocated Related Allowance, With an allowance recorded | 45 | 35 |
Average Recorded Investment, With an allowance recorded | 692 | 1,481 |
Interest Income Recognized, With an allowance recorded | 6 | |
Construction, Land and Acquisition & Development | ||
Financing Receivable Impaired [Line Items] | ||
Average Recorded Investment, With an allowance recorded | 727 | |
Residential Mortgage | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 2,057 | 1,986 |
Unpaid Principal Balance, With no related allowance recorded | 2,057 | 1,987 |
Average Recorded Investment, With no related allowance recorded | 1,793 | 2,041 |
Interest Income Recognized, With no related allowance recorded | 20 | 9 |
Recorded Investment, With an allowance recorded | 1,152 | 1,611 |
Unpaid Principal Balance, With an allowance recorded | 1,154 | 1,613 |
Allocated Related Allowance, With an allowance recorded | 6 | 14 |
Average Recorded Investment, With an allowance recorded | 1,816 | |
Interest Income Recognized, With an allowance recorded | 36 | 73 |
Consumer Installment | ||
Financing Receivable Impaired [Line Items] | ||
Recorded Investment, With no related allowance recorded | 3 | 8 |
Unpaid Principal Balance, With no related allowance recorded | 3 | 8 |
Average Recorded Investment, With no related allowance recorded | $ 8 | 9 |
Interest Income Recognized, With no related allowance recorded | 1 | |
Average Recorded Investment, With an allowance recorded | $ 1,634 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Summary of Recorded Investment in Past Due Loans, as Well as Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 2,267 | $ 14,025 | |
Current | 587,744 | 584,590 | |
Total loans | 590,011 | 598,615 | |
Nonaccrual | 4,606 | 4,902 | |
30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 436 | 9,193 | |
60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,660 | 1,094 | |
90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 171 | 3,738 | |
Commercial (Secured by Real Estate) | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 4,522 | ||
Current | 193,965 | 174,049 | |
Total loans | 193,965 | 178,571 | |
Nonaccrual | 496 | 1,157 | |
Commercial (Secured by Real Estate) | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 3,386 | ||
Commercial (Secured by Real Estate) | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,136 | ||
Commercial and Industrial | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 531 | 1,114 | |
Current | 157,102 | 154,440 | |
Total loans | 157,633 | 155,554 | |
Nonaccrual | 1,001 | 1,085 | |
Commercial and Industrial | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 47 | 29 | |
Commercial and Industrial | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 484 | ||
Commercial and Industrial | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,085 | ||
Paycheck Protection Program | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Current | 73,020 | 101,749 | |
Total loans | [1] | 73,020 | 101,749 |
Construction, Land and Acquisition & Development | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,392 | ||
Current | 26,954 | 22,179 | |
Total loans | 26,954 | 23,571 | |
Construction, Land and Acquisition & Development | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,392 | ||
Residential Mortgage | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,720 | 6,846 | |
Current | 77,775 | 84,931 | |
Total loans | 79,495 | 91,777 | |
Nonaccrual | 3,062 | 2,587 | |
Residential Mortgage | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 383 | 4,308 | |
Residential Mortgage | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 1,166 | 1,094 | |
Residential Mortgage | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 171 | 1,444 | |
Consumer Installment | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 16 | 151 | |
Current | 58,928 | 47,242 | |
Total loans | 58,944 | 47,393 | |
Nonaccrual | 46 | 73 | |
Consumer Installment | 30 -59 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | 6 | 78 | |
Consumer Installment | 60- 89 Days Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 10 | ||
Consumer Installment | 90 Days or Greater Past Due | |||
Financing Receivable Recorded Investment Past Due [Line Items] | |||
Total Past Due | $ 73 | ||
[1] | Includes PPP loans that are fully guaranteed by the SBA; thus no allowance for loan losses has been allocated to these loans. |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses - Summary of Risk Category of Loans by Class of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 | |
Composition Of Loan Portfolio [Line Items] | |||
Total | $ 590,011 | $ 598,615 | |
Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 582,850 | 591,488 | |
Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 1,177 | 847 | |
Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 5,984 | 6,280 | |
Commercial (Secured by Real Estate) | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 193,965 | 178,571 | |
Commercial (Secured by Real Estate) | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 192,292 | 176,629 | |
Commercial (Secured by Real Estate) | Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 1,177 | 785 | |
Commercial (Secured by Real Estate) | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 496 | 1,157 | |
Commercial and Industrial | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 157,633 | 155,554 | |
Commercial and Industrial | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 156,632 | 154,469 | |
Commercial and Industrial | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 1,001 | 1,085 | |
Paycheck Protection Program | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | [1] | 73,020 | 101,749 |
Paycheck Protection Program | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 73,020 | 101,749 | |
Construction, Land and Acquisition & Development | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 26,954 | 23,571 | |
Construction, Land and Acquisition & Development | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 26,954 | 23,571 | |
Residential Mortgage | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 79,495 | 91,777 | |
Residential Mortgage | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 75,054 | 87,738 | |
Residential Mortgage | Special Mention | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 62 | ||
Residential Mortgage | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 4,441 | 3,977 | |
Consumer Installment | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 58,944 | 47,393 | |
Consumer Installment | Pass | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | 58,898 | 47,332 | |
Consumer Installment | Substandard | |||
Composition Of Loan Portfolio [Line Items] | |||
Total | $ 46 | $ 61 | |
[1] | Includes PPP loans that are fully guaranteed by the SBA; thus no allowance for loan losses has been allocated to these loans. |
Deposits - Additional Informati
Deposits - Additional Information (Details) - USD ($) $ in Millions | Jun. 30, 2021 | Dec. 31, 2020 |
Deposits [Abstract] | ||
Time certificates of deposit in denomination of greater than $250,000 | $ 25.3 | $ 32.9 |
Borrowings - Schedule of Federa
Borrowings - Schedule of Federal Home Loan Bank of Atlanta (FHLB) Advances (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Fair Value Adjustment | $ 1,100,000 | |
Federal Home Loan Bank of Atlanta | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB | $ 48,000,000 | |
Advances from FHLB, Fair Value Adjustment | $ 1,052,239,000 | |
Federal Home Loan Bank of Atlanta | May 23, 2029 | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Advance Date | May 23, 2019 | |
Advances from FHLB | $ 8,000,000 | |
Advances from FHLB, Fair Value Adjustment | $ 422,265,000 | |
Advances from FHLB, Interest Rate | 2.40% | |
Advances from FHLB, Maturity | May 23, 2029 | |
Advances from FHLB, Rate | Convertible | |
Advances from FHLB, Call Feature | 5/23/2022 | |
Federal Home Loan Bank of Atlanta | December 17, 2029 | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Advance Date | Dec. 16, 2019 | |
Advances from FHLB | $ 5,000,000 | |
Advances from FHLB, Fair Value Adjustment | $ 289,006,000 | |
Advances from FHLB, Interest Rate | 2.37% | |
Advances from FHLB, Maturity | Dec. 17, 2029 | |
Advances from FHLB, Rate | Convertible | |
Advances from FHLB, Call Feature | 12/17/2021 | |
Federal Home Loan Bank of Atlanta | November 29, 2029 | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Advance Date | Nov. 29, 2019 | |
Advances from FHLB | $ 5,000,000 | |
Advances from FHLB, Fair Value Adjustment | $ 340,968,000 | |
Advances from FHLB, Interest Rate | 2.66% | |
Advances from FHLB, Maturity | Nov. 29, 2029 | |
Advances from FHLB, Rate | Convertible | |
Advances from FHLB, Call Feature | 11/29/2022 | |
Federal Home Loan Bank of Atlanta | January 21, 2026 | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Advance Date | Jan. 21, 2021 | |
Advances from FHLB | $ 10,000,000 | |
Advances from FHLB, Interest Rate | 0.68% | |
Advances from FHLB, Maturity | Jan. 21, 2026 | |
Advances from FHLB, Rate | Fixed | |
Advances from FHLB, Call Feature | None | |
Federal Home Loan Bank of Atlanta | March 8, 2024 | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Advance Date | Mar. 8, 2021 | |
Advances from FHLB | $ 10,000,000 | |
Advances from FHLB, Interest Rate | 0.54% | |
Advances from FHLB, Maturity | Mar. 8, 2024 | |
Advances from FHLB, Rate | Fixed | |
Advances from FHLB, Call Feature | None | |
Federal Home Loan Bank of Atlanta | May 2, 2025 | ||
Federal Home Loan Bank Advances [Line Items] | ||
Advances from FHLB, Advance Date | May 3, 2021 | |
Advances from FHLB | $ 10,000,000 | |
Advances from FHLB, Interest Rate | 0.76% | |
Advances from FHLB, Maturity | May 2, 2025 | |
Advances from FHLB, Rate | Fixed | |
Advances from FHLB, Call Feature | None |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2020 | Jun. 30, 2021 | |
Line Of Credit Facility [Line Items] | ||
Federal Home Loan Bank (FHLB) advances | $ 19,117 | $ 49,052 |
Fair value adjustment | 1,100 | |
Advances from FHLB collateralized by certain loans | 309,900 | 249,500 |
Investment in FHLB stock | 1,300 | 2,200 |
FHLB advances book value | 1,800 | |
Line of credit amount outstanding | 16,000 | 8,000 |
Paycheck protection program liquidity facility (PPPLF) borrowings | 100,813 | |
Small Business Administration | ||
Line Of Credit Facility [Line Items] | ||
Secured payroll protection program loans | 101,700 | 0 |
Federal Reserve Bank of Atlanta | Small Business Administration | ||
Line Of Credit Facility [Line Items] | ||
Paycheck protection program liquidity facility (PPPLF) borrowings | $ 100,800 | |
Payroll protection program loans, fixed interest rate | 0.35% | |
Federal Reserve Bank of Atlanta | Small Business Administration | Minimum | ||
Line Of Credit Facility [Line Items] | ||
Payroll protection program loans, maturity period | 2 years | |
Federal Reserve Bank of Atlanta | Small Business Administration | Maximum | ||
Line Of Credit Facility [Line Items] | ||
Payroll protection program loans, maturity period | 5 years | |
Revolving Credit Facility | First National Bankers Bank | ||
Line Of Credit Facility [Line Items] | ||
Line of credit amount outstanding | $ 5,000 | $ 0 |
Line of credit, term | 10 years | |
Line of credit, frequency of payment and payment terms | Interest payment were due quarterly and the initial principal payment was due June 29, 2021. | |
Line of credit, initial principal payment due date | Jun. 29, 2021 | |
Line of credit, prepayment penalty | $ 0 |
Employee Stock Ownership Plan -
Employee Stock Ownership Plan - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Jan. 31, 2021 | Dec. 31, 2020 | Apr. 30, 2017 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||||||
Note payable balance of ESOP | $ 5,600,000 | $ 5,600,000 | $ 3,000,000 | $ 2,600,000 | $ 3,000,000 | ||
Shares purchased by ESOP | 225,721 | 295,499 | |||||
ESOP expense | $ 65,000 | $ 21,000 | $ 122,000 | $ 51,000 | |||
ESOP released shares | 47,200 | 47,200 | 47,200 |
Stock-Based Compensation - Addi
Stock-Based Compensation - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2021 | Jun. 30, 2020 | Aug. 31, 2018 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Stock-based compensation expense | $ 75,000 | $ 185,000 | $ 158,000 | $ 78,000 | |
Reversal of stock compensation expense | $ 152,000 | ||||
Unrecognized compensation cost related to equity award grants | $ 1,400,000 | $ 1,400,000 | |||
Unrecognized compensation cost expected remaining vesting period | 3 years 6 months | ||||
2018 Equity Incentive Plan | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of stock option grants | 0 | ||||
Number of restricted stock grants | 0 | ||||
2018 Equity Incentive Plan | Restricted Stock | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares approved under the plan | 133,987 | ||||
2018 Equity Incentive Plan | Stock Options | Common Stock | |||||
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |||||
Number of shares approved under the plan | 334,970 |
Stock-Based Compensation - Summ
Stock-Based Compensation - Summary of Stock Option Activity (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award Additional General Disclosures [Abstract] | |||
Option Shares Outstanding, Outstanding - Beginning Balance | 321,516 | 321,516 | 321,516 |
Option Shares Outstanding, Outstanding - Ending Balance | 321,516 | 321,516 | 321,516 |
Option Shares Outstanding, Exercisable | 102,489 | 38,186 | 102,489 |
Weighted Average Exercise Price, Outstanding - Beginning Balance | $ 9.77 | $ 9.77 | $ 9.77 |
Weighted Average Exercise Price, Outstanding - Ending Balance | 9.77 | 9.77 | 9.77 |
Weighted Average Exercise Price, Exercisable | $ 10.28 | $ 11.14 | $ 10.28 |
Weighted Average Remaining Life (Years), Outstanding | 7 years 11 months 12 days | 8 years 2 months 12 days | |
Weighted Average Remaining Life (Years), Exercisable | 8 years 29 days | 8 years | |
Aggregate Intrinsic Value (in thousands), Outstanding | $ 521 | $ 464 | $ 521 |
Aggregate Intrinsic Value (in thousands), Exercisable | $ 104 | $ 104 |
Stock-Based Compensation - Su_2
Stock-Based Compensation - Summary of Restricted Stock Activity (Details) - Restricted Stock - $ / shares | 3 Months Ended | |
Jun. 30, 2021 | Mar. 31, 2021 | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | ||
Restricted Shares Outstanding, Outstanding - Beginning Balance | 120,123 | 120,123 |
Restricted Shares Outstanding, Vested | 26,787 | |
Restricted Shares Outstanding, Outstanding - Ending Balance | 93,336 | 120,123 |
Weighted Average Grant Date Fair Value, Outstanding - Beginning Balance | $ 8.63 | $ 8.63 |
Weighted Average Grant Date Fair Value, Vested | 8.63 | |
Weighted Average Grant Date Fair Value, Outstanding - Ending Balance | $ 8.63 | $ 8.63 |
Stock-Based Compensation - Su_3
Stock-Based Compensation - Summary of Restricted Stock Activity (Parenthetical) (Details) | 3 Months Ended |
Jun. 30, 2021shares | |
Restricted Stock | |
Share Based Compensation Arrangement By Share Based Payment Award [Line Items] | |
Restricted shares applicable tax withholding requirements | 2,641 |
Fair Value Measurements and D_3
Fair Value Measurements and Disclosures - Additional Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2021 | Dec. 31, 2020 | |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, Estimated Fair Value | $ 36,591 | $ 24,005 |
Fair Value, Measurements, Recurring | Level 2 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale, Estimated Fair Value | $ 36,600 | $ 24,000 |
Paycheck Protection Program Loans Federal Borrowings | Small Business Administration | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Paycheck protection program loans, fixed interest rate | 0.35% |
Fair Value Measurements and D_4
Fair Value Measurements and Disclosures - Schedule of Assets Measured at Fair Value on Nonrecurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Impaired loans | $ 6,040 | $ 7,274 |
Fair Value, Measurements, Nonrecurring | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,292 | |
Impaired loans | 5,982 | 7,223 |
Total assets at fair value | 5,982 | 8,515 |
Fair Value, Measurements, Nonrecurring | Level 3 | ||
Fair Value Assets And Liabilities Measured On Recurring And Nonrecurring Basis [Line Items] | ||
Other real estate owned | 1,292 | |
Impaired loans | 5,982 | 7,223 |
Total assets at fair value | $ 5,982 | $ 8,515 |
Fair Value Measurements and D_5
Fair Value Measurements and Disclosures - Schedule of Carrying Amounts and Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2021 | Dec. 31, 2020 |
Financial assets: | ||
Investment securities available-for-sale | $ 36,591 | $ 24,005 |
Carrying Amount | ||
Financial assets: | ||
Cash and cash equivalents | 115,716 | 178,253 |
Investment securities available-for-sale | 36,591 | 24,005 |
FHLB stock | 2,476 | 1,596 |
Loans, net | 582,624 | 592,254 |
Cash surrender value of life insurance | 15,192 | 15,311 |
Financial liabilities: | ||
Deposits | 611,897 | 640,165 |
FHLB advances | 49,052 | 19,117 |
PPPLF borrowings | 100,813 | |
Other borrowings | 5,000 | |
Estimated Fair Value | ||
Financial assets: | ||
Cash and cash equivalents | 115,716 | 178,253 |
Investment securities available-for-sale | 36,591 | 24,005 |
FHLB stock | 2,476 | 1,596 |
Loans, net | 593,677 | 611,625 |
Cash surrender value of life insurance | 15,192 | 15,311 |
Financial liabilities: | ||
Deposits | 603,079 | 639,269 |
FHLB advances | $ 47,520 | 16,769 |
PPPLF borrowings | 100,813 | |
Other borrowings | $ 5,000 |