Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Entity Registrant Name | UNION BANKSHARES INC | ||
Entity Central Index Key | 0000706863 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Filer Category | Accelerated Filer | ||
Document Type | 10-K | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Common Stock, Shares Outstanding | 4,473,186 | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Interactive Data Current | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Public Float | $ 145,240,175 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 5,405 | $ 4,045 |
Federal funds sold and overnight deposits | 45,729 | 33,244 |
Cash and cash equivalents | 51,134 | 37,289 |
Interest bearing deposits in banks | 6,565 | 9,300 |
Investment securities available-for-sale | 87,393 | 73,405 |
Other investments | 690 | 556 |
Total investments | 88,083 | 73,961 |
Loans held for sale | 7,442 | 2,899 |
Loans | 670,244 | 642,461 |
Allowance for loan losses | (6,122) | (5,739) |
Net deferred loan costs | 1,043 | 938 |
Net loans | 665,165 | 637,660 |
Premises and equipment, net | 20,923 | 16,073 |
Goodwill | 2,223 | 2,223 |
Company-owned life insurance | 12,322 | 9,040 |
Other assets | 19,055 | 16,892 |
Total assets | 872,912 | 805,337 |
Deposits | ||
Noninterest bearing | 136,434 | 132,971 |
Interest bearing | 458,940 | 444,722 |
Time | 148,653 | 129,077 |
Total deposits | 744,027 | 706,770 |
Borrowed funds | 47,164 | 27,821 |
Accrued interest and other liabilities | 9,878 | 6,255 |
Total liabilities | 801,069 | 740,846 |
Commitments and Contingencies (Notes 9, 15, 16, 18, 19 and 22) | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,948,245 shares issued at December 31, 2019 and 4,943,690 shares issued at December 31, 2018 | 9,897 | 9,888 |
Additional-paid-in capital | 1,124 | 894 |
Retained earnings | 64,019 | 58,911 |
Treasury stock at cost; 476,268 shares at December 31, 2019 and 477,011 shares at December 31, 2018 | (4,183) | (4,179) |
Accumulated other comprehensive income (loss) | 986 | (1,023) |
Total stockholders' equity | 71,843 | 64,491 |
Total liabilities and stockholders' equity | $ 872,912 | $ 805,337 |
Consolidated Balance Sheets Par
Consolidated Balance Sheets Parenthetical - $ / shares | Dec. 31, 2019 | Dec. 31, 2018 |
Stockholders' Equity | ||
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 7,500,000 | 7,500,000 |
Common stock, shares issued | 4,948,245 | 4,943,690 |
Treasury stock, shares | 476,268 | 477,011 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest and dividend income | ||
Interest and fees on loans | $ 33,209 | $ 29,883 |
Interest on debt securities: | ||
Taxable | 1,615 | 1,276 |
Tax exempt | 518 | 577 |
Dividends | 275 | 133 |
Interest on federal funds sold and overnight deposits | 190 | 104 |
Interest on interest bearing deposits in banks | 195 | 207 |
Total interest and dividend income | 36,002 | 32,180 |
Interest expense | ||
Interest on deposits | 4,725 | 2,871 |
Interest on short-term borrowed funds | 16 | 61 |
Interest on long-term borrowed funds | 875 | 649 |
Total interest expense | 5,616 | 3,581 |
Net interest income | 30,386 | 28,599 |
Provision for loan losses | 775 | 450 |
Net interest income after provision for loan losses | 29,611 | 28,149 |
Noninterest income | ||
Trust Income | 692 | 751 |
Service fees | 6,108 | 6,151 |
Net gains on sales of investment securities available-for-sale | 25 | 10 |
Net gains on sales of loans held for sale | 2,895 | 1,847 |
Other income | 603 | 714 |
Total noninterest income | 10,323 | 9,473 |
Noninterest expenses | ||
Salaries and wages | 11,821 | 10,748 |
Pension expense | 0 | 4,631 |
Employee benefits | 4,194 | 3,653 |
Occupancy expense, net | 1,806 | 1,447 |
Equipment expense | 2,475 | 2,134 |
Other expenses | 7,160 | 6,664 |
Total noninterest expenses | 27,456 | 29,277 |
Income before provision for income taxes | 12,478 | 8,345 |
Provision for income taxes | 1,830 | 1,273 |
Net income | $ 10,648 | $ 7,072 |
Earnings per common share | $ 2.38 | $ 1.58 |
Dividends per common share | $ 1.24 | $ 1.20 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net Income | $ 10,648 | $ 7,072 |
Investment securities available-for-sale: | ||
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale | 2,029 | (714) |
Reclassification adjustments for net gains on investment securities available-for-sale realized in net income | (20) | (8) |
Total | 2,009 | (722) |
Defined benefit pension plan: | ||
Net actuarial gain arising during the year | 0 | 1,221 |
Reclassification adjustment for amortization of net actuarial loss realized in net income | 0 | 397 |
Reclassification adjustment for recognized settlement loss | 0 | 3,177 |
Total | 0 | 4,795 |
Total other comprehensive income | 2,009 | 4,073 |
Total comprehensive income | $ 12,657 | $ 11,145 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Total | Common Stock | Additional paid-in capital | Retained Earnings | Treasury Stock | Accumulated other comprehensive (loss) income |
Balances at Dec. 31, 2017 | $ 58,661 | $ 9,882 | $ 755 | $ 57,197 | $ (4,077) | $ (5,096) |
Common Stock, Shares, net of treasury at Dec. 31, 2017 | 4,465,576 | |||||
Net income | 7,072 | 7,072 | ||||
Other comprehensive income | 4,073 | 4,073 | ||||
Dividend reinvestment plan | 30 | 25 | 5 | |||
Dividend reinvestment plan, shares | 583 | |||||
Cash dividends declared ($1.24 and $1.20 per share for the year ended December 31, 2019 and 2018, respectively) | (5,358) | (5,358) | ||||
Stock based compensation expense | 120 | $ 6 | 114 | |||
Stock based compensation expense, shares | 2,729 | |||||
Exercise of stock options | 0 | |||||
Purchase of treasury stock | (107) | (107) | ||||
Purchase of treasury stock, shares | (2,209) | |||||
Balances at Dec. 31, 2018 | 64,491 | $ 9,888 | 894 | 58,911 | (4,179) | (1,023) |
Common Stock, Shares, net of treasury at Dec. 31, 2018 | 4,466,679 | |||||
Net income | 10,648 | 10,648 | ||||
Other comprehensive income | 2,009 | 2,009 | ||||
Dividend reinvestment plan | 39 | 30 | 9 | |||
Dividend reinvestment plan, shares | 1,042 | |||||
Cash dividends declared ($1.24 and $1.20 per share for the year ended December 31, 2019 and 2018, respectively) | (5,540) | (5,540) | ||||
Stock based compensation expense | 165 | $ 5 | 160 | |||
Stock based compensation expense, shares | 2,556 | |||||
Exercise of stock options | 44 | $ 4 | 40 | |||
Exercise of stock options, shares | 2,000 | |||||
Purchase of treasury stock | (13) | (13) | ||||
Purchase of treasury stock, shares | (300) | |||||
Balances at Dec. 31, 2019 | $ 71,843 | $ 9,897 | $ 1,124 | $ 64,019 | $ (4,183) | $ 986 |
Common Stock, Shares, net of treasury at Dec. 31, 2019 | 4,471,977 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity Parenthetical - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends per common share | $ 1.24 | $ 1.20 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Cash Flows From Operating Activities | ||
Net income | $ 10,648 | $ 7,072 |
Adjustments to reconcile net income to net cash provided by operating activities | ||
Depreciation | 1,567 | 1,216 |
Provision for loan losses | 775 | 450 |
Deferred income tax provision (benefit) | 438 | (508) |
Net amortization of premiums on investment securities | 490 | 390 |
Equity in losses of limited partnerships | 745 | 591 |
Stock based compensation expense | 165 | 120 |
Net increase in unamortized loan costs | (105) | (143) |
Proceeds from sales of loans held for sale | 161,162 | 118,557 |
Origination of loans held for sale | (162,810) | (111,662) |
Net gains on sales of loans held for sale | (2,895) | (1,847) |
Net gain on disposals of premises and equipment | 0 | (168) |
Net gains on sales of investment securities available-for-sale | (25) | (10) |
Net gain on sales of other real estate owned | 0 | (11) |
Increase in accrued interest receivable | (122) | (312) |
Amortization of core deposit intangible | 171 | 171 |
Increase in other assets | (110) | (685) |
Contribution to defined benefit pension plan | 0 | (850) |
Pension plan termination expense | 0 | 4,631 |
Increase (decrease) in other liabilities | 1,682 | (241) |
Net cash provided by operating activities | 11,776 | 16,761 |
Interest bearing deposits in banks | ||
Proceeds from maturities and redemptions | 2,984 | 3,784 |
Purchases | (249) | (3,732) |
Investment securities held-to-maturity | ||
Proceeds from maturities, calls and paydowns | 0 | 1,000 |
Investment securities available-for-sale | ||
Proceeds from sales | 10,335 | 1,060 |
Proceeds from maturities, calls and paydowns | 11,485 | 5,593 |
Purchases | (33,730) | (16,434) |
Proceeds from sales of other investments | 46 | 44 |
Purchases of other investments | (180) | (79) |
Net increase in nonmarketable stock | (231) | (46) |
Net increase in loans | (28,185) | (56,003) |
Recoveries of loans charged off | 10 | 38 |
Purchases of premises and equipment | (6,417) | (3,070) |
Investments in limited partnerships | (1,929) | (694) |
Purchase of Company-owned life insurance | (3,000) | 0 |
Proceeds of Company-owned life insurance death benefit | 0 | 307 |
Proceeds from sales of other real estate owned | 0 | 47 |
Proceeds from sales of premises and equipment | 0 | 204 |
Net cash used in investing activities | (49,061) | (67,981) |
Cash Flows From Financing Activities | ||
Advances on long-term borrowings | 0 | 7,000 |
Repayment of long-term debt | (20,287) | (19,765) |
Net increase in short-term borrowings outstanding | 39,630 | 9,005 |
Net increase in noninterest bearing deposits | 3,463 | 5,147 |
Net increase in interest bearing deposits | 14,218 | 26,101 |
Net increase in time deposits | 19,576 | 27,948 |
Issuance of common stock | 44 | 0 |
Purchase of treasury stock | (13) | (107) |
Dividends paid | (5,501) | (5,328) |
Net cash provided by financing activities | 51,130 | 50,001 |
Net increase (decrease) in cash and cash equivalents | 13,845 | (1,219) |
Cash and cash equivalents | ||
Beginning of year | 37,289 | 38,508 |
End of year | 51,134 | 37,289 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 5,146 | 3,476 |
Income taxes paid | 800 | 1,550 |
Supplemental Schedule of Noncash Investing and Financing Activities | ||
Investment in limited partnerships acquired by capital contributions payable | 493 | 1,321 |
Right-of-use operating lease assets obtained in exchange for operating lease liabilities | 2,002 | 0 |
Dividends paid on Common Stock | ||
Dividends declared | 5,540 | 5,358 |
Dividends reinvested | (39) | (30) |
Dividends paid on Common Stock | $ 5,501 | $ 5,328 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies [Text Block] | Significant Accounting Policies Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and the Subsidiary (the Company) are in conformity with GAAP and general practices within the banking industry. The following is a description of the more significant policies. The consolidated financial statements include the accounts of Union Bankshares, Inc., and its wholly owned subsidiary, Union Bank, headquartered in Morrisville, Vermont. All significant intercompany transactions and balances have been eliminated. The Company utilizes the accrual method of accounting for financial reporting purposes. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its audited consolidated statements of income, comprehensive income, cash flows and changes in stockholder’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this Annual Report on Form 10-K, as permitted for smaller reporting companies. Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to the current year presentation. The acronyms, abbreviations and capitalized terms identified below are used throughout this Annual Report on Form 10-K, including Parts I, II and III. The following is provided to aid the reader and provide a reference page when reviewing this Annual Report: AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OREO: Other real estate owned CFPB: Consumer Financial Protection Bureau OTTI: Other-than-temporary impairment COLI: Company-Owned Life Insurance OTT: Other-than-temporary Company: Union Bankshares, Inc. and Subsidiary Plan: The Union Bank Pension Plan DFR: Vermont Department of Financial Regulation RD: USDA Rural Development Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 RSU: Restricted Stock Units DRIP: Dividend Reinvestment and Stock Purchase Plan SBA: U.S. Small Business Administration EPS: Earnings per share SEC: U.S. Securities and Exchange Commission FASB: Financial Accounting Standards Board SOX Act: Sarbanes Oxley Act of 2002 FDIC: Federal Deposit Insurance Corporation Tax Act: Tax Cut and Jobs Act FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 TDR: Troubled-debt restructuring FHA: U.S. Federal Housing Administration Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHLB: Federal Home Loan Bank of Boston USDA: U.S. Department of Agriculture FRB: Federal Reserve Board VA: U.S. Veterans Administration Fannie Mae: Federal National Mortgage Association 2006 Plan: Executive Nonqualified Excess Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan GAAP: Generally accepted accounting principles in the United States 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2014 Equity Plan: 2014 Equity Incentive Plan HTM: Held-to-maturity 2017 Tax Act: Tax Cuts and Jobs Act of 2017 HUD: U.S. Department of Housing and Urban Development Nature of operations The Company provides a variety of financial services to individuals, municipalities, commercial businesses and nonprofit customers through its branches, ATMs, telebanking, mobile and internet banking systems in northern Vermont and New Hampshire. This market area encompasses primarily retail consumers, small businesses, municipalities, agricultural producers and the tourism industry. The Company's primary deposit products are checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts and its primary lending products are commercial, real estate, municipal and consumer loans. The Company also offers fiduciary and asset management services through its Asset Management Group, an unincorporated division of Union. Significant concentration of credit risk The Company grants loans primarily to customers in Vermont and New Hampshire. Although it has a diversified loan portfolio, a large portion of the Company's loans are secured by commercial or residential real estate located in Vermont and New Hampshire and is subject to volatility with each state's real estate market. Additionally, the borrower's ability to repay loans is highly dependent upon other economic factors throughout Vermont and New Hampshire. The Company typically requires the principals of any commercial borrower to obligate themselves personally on the loan. Use of estimates in preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term and involve inherent uncertainties relate to the determination of the ALL on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets, and asset impairment judgments, including OTTI of investment securities. These estimates involve a significant degree of complexity and subjectivity and the amount of the change that is reasonably possible, should any of these estimates prove inaccurate, cannot be estimated. Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. Asset management operations Assets held by Union's Asset Management Group in a fiduciary or agency capacity, other than trust cash on deposit with Union, are not included in these consolidated financial statements because they are not assets of Union or the Company. Fair value measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Investment securities Debt securities the Company has the positive intent and ability to hold to maturity are classified as HTM and reported at amortized cost. Debt securities not classified as either HTM or trading are classified as AFS. Investments classified as AFS are reported at fair value. Debt securities purchased and held primarily for resale in the near future are classified as trading securities and are reported at fair value with unrealized gains and losses included in earnings. The Company does not generally hold any securities classified as trading. Accretion of discounts and amortization of premiums arising at acquisition on investment securities are included in income using the effective interest method over the life of the securities to the call date. Unrealized gains and losses on investment securities AFS are excluded from earnings and reported in Accumulated OCI, net of tax and reclassification adjustment, as a separate component of stockholders' equity. The specific identification method is used to determine realized gains and losses on sales of AFS or trading securities. The Company evaluates all debt securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A debt security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether an OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The estimated fair value of loans held for sale is based on current price quotes that determine the amount that the loans could be sold for in the secondary market. Loans transferred from held for sale to portfolio are transferred at the lower of cost or fair value in the aggregate. Sales are normally made without recourse. Gains and losses on the disposition of loans held for sale are determined on the specific identification basis. Net unrealized losses are recognized through a valuation allowance by charges to income. Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. Allowance for loan losses The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Other real estate owned Real estate properties acquired through or in lieu of loan foreclosure are to be sold and are initially recorded based on an independent appraisal or a broker price opinion at the estimated fair value less estimated selling costs at the date of acquisition, establishing a new carrying basis. Thereafter, valuations are periodically performed by management, and the real estate is carried in Other assets at the lower of carrying amount or fair value, less estimated cost to sell. Costs of significant property improvements are capitalized, if deemed recoverable, whereas revenue and expenses from operations and changes in valuation are charged to Other expenses in the Company's consolidated statements of income. There were no OREO properties at December 31, 2019 or 2018 . Mortgage Banking Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The transfer of these financial assets is accounted for as a sale when control over the asset has been surrendered. Control is deemed to be surrendered when (i) the asset has been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset, and (iii) the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity. The Company records the gain on sale of the financial asset within net gains on sales of loans held for sale, net in the consolidated statements of income. Servicing assets are recognized as separate assets when servicing rights are acquired through the sale of residential mortgage loans with servicing rights retained. Capitalized servicing rights, which are reported in other assets on the consolidated statements of condition, are initially recorded at fair value and are amortized in proportion to, and over the period of, the estimated future servicing of the underlying mortgages (typically, the contractual life of the mortgage). The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income within noninterest income on the consolidated statements of income. Servicing assets are evaluated for impairment regularly based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment of the servicing assets is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If it is later determined that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded increasing income, but not below zero. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income within noninterest income in the consolidated statements of income when earned. Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statement of income. Maintenance and repairs are charged to current expense as incurred and the costs of major renovations and betterments are capitalized. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. Intangible assets Intangible assets include goodwill, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition, as well as a core deposit intangible related to the deposits acquired (see Note 10). The core deposit intangible is amortized on a straight line basis over the estimated average life of the acquired core deposit base of 10 years. The Company evaluates the valuation and amortization of the core deposit intangible if events occur that could result in possible impairment. With respect to goodwill, in accordance with current authoritative guidance, the Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company is less than its carrying amount, which could result in goodwill impairment. Federal Home Loan Bank stock As a member of the FHLB, Union is required to invest in $100 par value stock of the FHLB in an amount to satisfy unpaid principal balances on qualifying loans, plus an amount to satisfy an activity based requirement. The stock is nonmarketable, and is redeemable by the FHLB at par value. Also, there is the possibility of future capital calls by the FHLB on member banks to ensure compliance with its capital plan. FHLB stock is reported in Other assets at its par value of $2.5 million and $2.3 million at December 31, 2019 and 2018 , respectively. Company-owned life insurance COLI represents life insurance on the lives of certain current or former directors or employees who have provided positive consent allowing the Company to be the beneficiary of such policies. The Company utilizes COLI as tax-efficient funding for certain benefit obligations to its employees and directors, including obligations under one of the Company's nonqualified deferred compensation plans. (See Note 15.) The Company is the primary beneficiary of the insurance policies. Increases in the cash value of the policies, as well as any gain on insurance proceeds received, are recorded in Other income, and are not currently subject to income taxes. COLI is recorded at the cash value of the policies, less any applicable cash surrender charges (of which there are currently none). The Company reviews the financial strength of the insurance carriers prior to the purchase of COLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed annually and COLI with any individual carrier is limited by Company policy to 15% of the sum of Tier 1 Capital and allowable Tier 2 capital. Investment in real estate limited partnerships The Company has purchased various limited partnership interests in affordable housing partnerships. These partnerships were established to acquire, own and rent residential housing for elderly, low or moderate income residents in northern Vermont or in New Hampshire. GAAP permits an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. There were no impairment losses during the year resulting from the forfeiture or ineligibility of tax credits related to qualified affordable housing project investments. (See Note 11.) Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statement of income. Earnings per common share Earnings per common share for the period are computed based on the weighted average number of shares of common stock issued during the period, including DRIP shares issuable upon reinvestment of dividends, retroactively adjusted for stock splits and stock dividends, if any, and reduced for shares held in treasury. (See Note 17.) Income taxes The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on taxable income. The Company recognizes income taxes under the asset and liability method. This involves estimating the Company's actual current tax exposure as well as assessing temporary differences resulting from differing treatment of items, such as timing of the deduction of expenses, for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are netted and included in Other assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company must also assess the likelihood that any deferred tax assets will be recovered from future taxable income and to the extent that recovery is not likely, a valuation allowance must be established. A change in enacted federal income tax rates for future periods requires revaluation of deferred taxes. Significant management judgment is required in determining the provision for income taxes and valuation of deferred tax assets and liabilities. (See Note 14.) Off-balance-sheet financial instruments In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to originate credit, unused lines of credit including commitments under credit card arrangements, commitments to purchase investment securities, commitments to invest in real estate limited partnerships, commercial letters of credit, standby letters of credit and risk-sharing commitments on certain sold loans. Such financial instruments are recorded in the financial statements when they become fixed and certain. Comprehensive income (loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on debt securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statement of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheet (Accumulated OCI) (See Note 24). OCI, along with net income, comprises the Company's total comprehensive income or loss. Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Cash and Cash Equivalents Disclosure [Text Block] | Restrictions on Cash and Cash Equivalents The nature of the Company's business requires that it maintain amounts due from correspondent banks which, at times, may exceed federally insured limits. The balances in these accounts at December 31, were as follows: 2019 2018 (Dollars in thousands) Noninterest bearing accounts $ 365 $ 266 Federal Reserve Bank of Boston 45,638 32,077 FHLB of Boston 1,125 1,374 No losses have been experienced in these accounts and the Company believes it is not exposed to any significant risk with respect to the accounts. The Company had no requirement to maintain contracted clearing balances at December 31, 2019 or 2018 . Balances at the Federal Reserve Bank of Boston and a portion of the funds at the FHLB are classified as overnight deposits as they earn interest. The Company is required to maintain vault cash or noninterest bearing reserve balances with Federal Reserve Bank of Boston. Total reserve balances required at December 31, 2019 and 2018 were $1.8 million and $1.0 million , respectively, which were both satisfied by vault cash. |
Interest Bearing Deposits In Ba
Interest Bearing Deposits In Banks | 12 Months Ended |
Dec. 31, 2019 | |
Interest Bearing Deposits in Banks [Abstract] | |
Investment in interest bearing deposits in banks [Text Block] | Interest Bearing Deposits in Banks Interest bearing deposits in banks consist of certificates of deposit purchased from various financial institutions. Deposits at each institution are generally maintained at or below the FDIC insurable limit of $250 thousand. As of December 31, 2019 , the Company held certificates with rates ranging from 1.75% to 3.55% and various maturity dates through 2028, with $1.7 million scheduled to mature in 2020 . |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block] | Investment Securities Investment securities as of the balance sheet dates consisted of the following: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,349 $ 19 $ (76 ) $ 6,292 Agency MBS 45,503 602 (81 ) 46,024 State and political subdivisions 26,489 515 (39 ) 26,965 Corporate 7,804 378 (70 ) 8,112 Total $ 86,145 $ 1,514 $ (266 ) $ 87,393 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,528 $ 1 $ (208 ) $ 6,321 Agency MBS 36,851 84 (683 ) 36,252 State and political subdivisions 23,527 130 (486 ) 23,171 Corporate 7,792 18 (149 ) 7,661 Total $ 74,698 $ 233 $ (1,526 ) $ 73,405 There were no investment securities HTM at December 31, 2019 or December 31, 2018 . There were no investment securities pledged as collateral at December 31, 2019 . At December 31, 2018 , investment securities AFS with a carrying amount of $2.5 million were pledged as collateral for public deposits and for other purposes as required or permitted by law. Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2019 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 4 $ 2,376 $ (22 ) 8 $ 2,772 $ (54 ) 12 $ 5,148 $ (76 ) Agency MBS 8 6,193 (38 ) 8 4,861 (43 ) 16 11,054 (81 ) State and political subdivisions 9 3,813 (38 ) 1 304 (1 ) 10 4,117 (39 ) Corporate — — — 3 1,430 (70 ) 3 1,430 (70 ) Total 21 $ 12,382 $ (98 ) 20 $ 9,367 $ (168 ) 41 $ 21,749 $ (266 ) December 31, 2018 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 2 $ 1,184 $ (11 ) 12 $ 4,854 $ (197 ) 14 $ 6,038 $ (208 ) Agency MBS 5 3,516 (21 ) 40 26,198 (662 ) 45 29,714 (683 ) State and political subdivisions 4 1,301 (16 ) 36 15,067 (470 ) 40 16,368 (486 ) Corporate 5 2,424 (12 ) 5 2,285 (137 ) 10 4,709 (149 ) Total 16 $ 8,425 $ (60 ) 93 $ 48,404 $ (1,466 ) 109 $ 56,829 $ (1,526 ) The Company has the ability to hold the investment securities that had unrealized losses at December 31, 2019 for the foreseeable future and no declines were deemed by management to be OTT. The following table presents the proceeds, gross gains and gross losses from sales of AFS securities: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Proceeds $ 10,335 $ 1,060 Gross gains 62 10 Gross losses (37 ) — Net gains $ 25 $ 10 The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2019 , were as follows: Amortized Cost Fair Value Available-for-sale (Dollars in thousands) Due in one year or less $ 680 $ 688 Due from one to five years 3,767 3,923 Due from five to ten years 16,655 17,019 Due after ten years 19,540 19,739 40,642 41,369 Agency MBS 45,503 46,024 Total $ 86,145 $ 87,393 Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities may differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and not included in the contractual maturity categories in the above maturity summary. |
Loans Held for Sale and Loan Se
Loans Held for Sale and Loan Servicing | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | Loans Held for Sale and Loan Servicing At December 31, 2019 and 2018 , loans held for sale consisted of conventional residential mortgages originated for subsequent sale, with an estimated fair value in excess of their carrying value. Therefore, no valuation reserve was necessary for loans held for sale as of the balance sheet dates. Commercial and residential mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of commercial and residential mortgage loans serviced for others was $579.9 million and $534.2 million at December 31, 2019 and 2018 , respectively. Loans sold consisted of the following during the years ended December 31: 2019 2018 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 157,952 $ 2,867 $ 116,710 $ 1,847 Commercial loans 315 28 — — Total $ 158,267 $ 2,895 $ 116,710 $ 1,847 There were no obligations to repurchase loans for any amount at December 31, 2019 , but there were contractual risk sharing commitments on certain sold loans totaling $705 thousand as of such date. The Company generally retains the servicing rights on loans sold. At December 31, 2019 and 2018 , the unamortized balance of servicing rights on loans sold with servicing retained was $1.7 million and is included in Other assets. The estimated fair value of these servicing rights was in excess of their carrying value at December 31, 2019 and 2018 , and therefore no impairment reserve was necessary. The net capitalization and amortization of MSRs is included in Other income. The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Capitalization of servicing rights $ 862 $ 697 Amortization of servicing rights 812 720 Net capitalization (amortization) of servicing rights $ 50 $ (23 ) |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivables [Text Block] | Loans The composition of Net loans at December 31, was as follows: 2019 2018 (Dollars in thousands) Residential real estate $ 192,125 $ 187,320 Construction real estate 69,617 55,322 Commercial real estate 289,883 276,500 Commercial 47,699 47,228 Consumer 3,562 3,241 Municipal 67,358 72,850 Gross loans 670,244 642,461 Allowance for loan losses (6,122 ) (5,739 ) Net deferred loan costs 1,043 938 Net loans $ 665,165 $ 637,660 Qualifying residential first mortgage loans and certain commercial real estate loans with a carrying value of $207.7 million and $167.7 million were pledged as collateral for borrowings from the FHLB under a blanket lien at December 31, 2019 and 2018 , respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2019 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 187,022 $ 2,716 $ 1,304 $ 811 $ 272 $ 192,125 Construction real estate 68,731 470 19 368 29 69,617 Commercial real estate 286,795 940 150 — 1,998 289,883 Commercial 47,673 — 5 — 21 47,699 Consumer 3,532 21 6 — 3 3,562 Municipal 67,358 — — — — 67,358 Total $ 661,111 $ 4,147 $ 1,484 $ 1,179 $ 2,323 $ 670,244 December 31, 2018 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 183,624 $ 1,984 $ 696 $ 422 $ 594 $ 187,320 Construction real estate 52,807 1,451 1,023 — 41 55,322 Commercial real estate 273,778 1,703 153 718 148 276,500 Commercial 47,163 24 8 — 33 47,228 Consumer 3,215 21 5 — — 3,241 Municipal 72,789 61 — — — 72,850 Total $ 633,376 $ 5,244 $ 1,885 $ 1,140 $ 816 $ 642,461 There were two residential real estate loans totaling $64 thousand in process of foreclosure at December 31, 2019 and three residential real estate loans totaling $255 thousand and one commercial real estate loan totaling $146 thousand in process of foreclosure at December 31, 2018 . Aggregate interest not recognized on nonaccrual loans was $271 thousand and $338 thousand for the years ended December 31, 2019 and 2018 , respectively. |
Allowance for loan losses and c
Allowance for loan losses and credit quality | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Allowance for Credit Losses [Text Block] | Allowance for Loan Losses and Credit Quality Changes in the ALL, by class of loans, were as follows for the years ended : December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2018 $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 Provision (credit) for loan losses 150 157 305 239 7 (6 ) (77 ) 775 Recoveries of amounts charged off 5 — — 1 4 — — 10 1,523 774 3,238 594 34 76 285 6,524 Amounts charged off (131 ) — (60 ) (200 ) (11 ) — — (402 ) Balance, December 31, 2019 $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2017 $ 1,361 $ 488 $ 2,707 $ 395 $ 30 $ 64 $ 363 $ 5,408 Provision (credit) for loan losses 118 128 228 (38 ) (3 ) 18 (1 ) 450 Recoveries of amounts charged off 20 1 — — 17 — — 38 1,499 617 2,935 357 44 82 362 5,896 Amounts charged off (131 ) — (2 ) (3 ) (21 ) — — (157 ) Balance, December 31, 2018 $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 39 $ — $ 149 $ 8 $ — $ — $ — $ 196 Collectively evaluated for impairment 1,353 774 3,029 386 23 76 285 5,926 Total allocated $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 47 $ — $ 9 $ 10 $ — $ — $ — $ 66 Collectively evaluated for impairment 1,321 617 2,924 344 23 82 362 5,673 Total allocated $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 Despite the allocation shown in the tables above, the ALL is general in nature and is available to absorb losses from any class of loan. The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,515 $ 223 $ 3,204 $ 299 $ — $ — $ 5,241 Collectively evaluated for impairment 190,610 69,394 286,679 47,400 3,562 67,358 665,003 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,678 $ 119 $ 2,276 $ 352 $ — $ — $ 4,425 Collectively evaluated for impairment 185,642 55,203 274,224 46,876 3,241 72,850 638,036 Total $ 187,320 $ 55,322 $ 276,500 $ 47,228 $ 3,241 $ 72,850 $ 642,461 Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4/M Rating - Satisfactory/Monitor Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list. 5-7 Rating - Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate. The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates: December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 174,798 $ 47,326 $ 168,654 $ 35,625 $ 3,499 $ 67,358 $ 497,260 Satisfactory/Monitor 14,520 21,819 117,004 10,974 57 — 164,374 Substandard 2,807 472 4,225 1,100 6 — 8,610 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 170,416 $ 41,141 $ 174,802 $ 34,303 $ 3,209 $ 72,850 $ 496,721 Satisfactory/Monitor 14,008 14,053 98,327 12,150 31 — 138,569 Substandard 2,896 128 3,371 775 1 — 7,171 Total $ 187,320 $ 55,322 $ 276,500 $ 47,228 $ 3,241 $ 72,850 $ 642,461 The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2019 and 2018 : December 31, 2019 For The Year Ended December 31, 2019 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 218 $ 228 $ 39 Commercial real estate 1,762 1,783 149 Commercial 11 12 8 With an allowance recorded 1,991 2,023 196 Residential real estate 1,297 1,832 — Construction real estate 223 241 — Commercial real estate 1,442 1,539 — Commercial 288 290 — With no allowance recorded 3,250 3,902 — Residential real estate 1,515 2,060 39 $ 1,625 $ 149 Construction real estate 223 241 — 159 4 Commercial real estate 3,204 3,322 149 2,382 110 Commercial 299 302 8 322 23 Total $ 5,241 $ 5,925 $ 196 $ 4,488 $ 286 December 31, 2018 For The Year Ended December 31, 2018 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 228 $ 238 $ 47 Commercial real estate 193 193 9 Commercial 12 13 10 With an allowance recorded 433 444 66 Residential real estate 1,450 2,039 — Construction real estate 119 135 — Commercial real estate 2,083 2,174 — Commercial 340 340 — With no allowance recorded 3,992 4,688 — Residential real estate 1,678 2,277 47 $ 1,730 $ 65 Construction real estate 119 135 — 88 4 Commercial real estate 2,276 2,367 9 1,699 77 Commercial 352 353 10 367 29 Total $ 4,425 $ 5,132 $ 66 $ 3,884 $ 175 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2019 and 2018 totaling $587 thousand and $641 thousand , respectively. The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2019 December 31, 2018 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 25 $ 1,515 27 $ 1,678 Construction real estate 2 100 2 119 Commercial real estate 8 966 9 1,172 Commercial 5 290 4 340 Total 40 $ 2,871 42 $ 3,309 The TDR loans above represent loan modifications in which a concession was provided to the borrower, including due date extensions, maturity date extensions, interest rate reductions or the forgiveness of accrued interest. Troubled loans that are restructured and meet established thresholds are classified as impaired and a specific reserve amount is allocated to the ALL on the basis of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The following table provides new TDR activity by class of loan for the years ended December 31, 2019 and 2018 : New TDRs During the New TDRs During the Year Ended December 31, 2019 Year Ended December 31, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 1 $ 77 $ 79 3 $ 190 $ 193 Construction real estate — — — 1 44 44 Commercial real estate — — — 1 204 204 Commercial 1 15 15 2 31 31 At December 31, 2019 , there was one residential TDR loan with a recorded investment balance of $79 thousand that had been modified within the previous twelve months that defaulted during the year then ended. At December 31, 2018 , there were no TDR loans modified within the previous twelve months that had subsequently defaulted during the year then ended. TDR loans are considered defaulted at 90 days past due. At December 31, 2019 and 2018 , the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Premises and Equipment The major classes of premises and equipment and accumulated depreciation at December 31 , were as follows: 2019 2018 (Dollars in thousands) Land and land improvements $ 3,922 $ 3,260 Building and improvements 18,490 14,760 Furniture and equipment 10,402 9,053 Construction in progress and deposits on equipment 91 809 32,905 27,882 Less accumulated depreciation (11,982 ) (11,809 ) $ 20,923 $ 16,073 Depreciation included in Occupancy and Equipment expenses amounted to $1.6 million and $1.2 million for the years ended December 31, 2019 and 2018 , respectively. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lessee, Operating Leases [Text Block] | Leases Effective January 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842). As of December 31, 2019 , the Company had operating real estate leases for three branch locations, one loan production office, land upon which a new branch location was constructed and two ATM locations. During 2019 interim reporting periods, the lease related to the land upon which a new branch location was constructed had been classified as a finance lease based on information available at the time the lease was recorded. An analysis of this lease at December 31, 2019 , resulted in a methodology change to classify the lease as an operating lease. The lease agreements have maturity dates ranging from July 2020 to September 2047. As of December 31, 2019 , the weighted average remaining life of the lease term for the operating leases was 23.03 years. The discount rate used in determining the lease liability for each individual lease was the FHLB fixed advance rate as of January 2019 that corresponded to the remaining lease term for each of these leases at adoption of the ASU. As of December 31, 2019 , the weighted average discount rate for operating leases was 3.84% . The operating lease right-of-use assets, included in Other assets on the consolidated balance sheet, were $1.86 million , and the operating lease liabilities, included in Accrued interest and other liabilities on the consolidated balance sheet, were $1.89 million as of December 31, 2019 . Operating lease costs, included in Occupancy expenses, net on the consolidated statements of income were $215 thousand for the year ended December 31, 2019 . Total estimated rental commitments for operating leases were as follows as of December 31, 2019 : (Dollars in thousands) 2020 $ 183 2021 171 2022 125 2023 114 2024 110 Thereafter 2,332 Total $ 3,035 A reconciliation of the operating lease undiscounted cash flows in the maturity analysis above and the operating lease liability recognized in the consolidated balance sheet is shown below: December 31, 2019 (Dollars in thousands) Undiscounted cash flows $ 3,035 Discount effect of cash flows (1,141 ) Lease liabilities $ 1,894 Rent expense for year ended December 31, 2018 was $180 thousand . Occupancy expense is shown in the consolidated statements of income, net of rental income of $232 thousand and $225 thousand for the years ended December 31, 2019 and 2018 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Goodwill and Other Intangible Assets As a result of the 2011 Branch Acquisition, the Company recorded goodwill amounting to $2.2 million . The goodwill is not amortizable. Goodwill is evaluated for impairment annually, in accordance with current authoritative accounting guidance. Management assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company, in total, is less than its carrying amount. Management is not aware of any such events or circumstances that would cause it to conclude that the fair value of the Company is less than its carrying amount. The Company also recorded $1.7 million of acquired identifiable intangible assets in connection with the 2011 Branch Acquisition, representing the core deposit intangible which is subject to straight-line amortization over the estimated 10 year average life of the acquired core deposit base, absent any future impairment. Management will evaluate the core deposit intangible for impairment if conditions warrant. Amortization expense for the core deposit intangible was $171 thousand for 2019 and 2018 . The amortization expense is included in Other expenses in the consolidated statements of income and is deductible for tax purposes. As of December 31, 2019 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2020 $ 171 2021 71 Total $ 242 |
Investment in Real Estate Limit
Investment in Real Estate Limited Partnerships | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Real Estate Limited Partnerships [Abstract] | |
Investment in real estate limited partnerships [Text Block] | Investment in Real Estate Limited Partnerships The Company has purchased from time to time various interests in limited partnerships established to acquire, own and rent residential housing for elderly, low or moderate income individuals in northern Vermont and New Hampshire. The carrying values of investments carried at equity were $4.4 million and $4.0 million at December 31, 2019 and 2018 , respectively. The capital contribution payable related to these investments was $493 thousand and $1.3 million at December 31, 2019 and 2018 , respectively. The following table presents the net impact on the Provision for income taxes related to investments carried at equity: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Provision for undistributed net losses of limited partnership investments $ 745 $ 591 Federal income tax credits related to limited partnership investments (803 ) (656 ) Net effect on Provision for income taxes $ (58 ) $ (65 ) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Deposits The following is a summary of interest bearing deposits at December 31 : 2019 2018 (Dollars in thousands) Interest bearing checking accounts $ 173,406 $ 157,847 Savings and money market accounts 285,534 286,875 Time deposits, $100,000 and over 73,048 64,474 Other time deposits 75,605 64,603 $ 607,593 $ 573,799 Included in time deposits are brokered deposits of $12.0 million and $16.0 million at December 31, 2019 and 2018 , respectively. Reciprocal deposits of $127.3 million and $114.2 million at December 31, 2019 and 2018 , respectively, are included in deposit balances in the consolidated balance sheets. The following is a summary of time deposits by maturity at December 31, 2019 : (Dollars in thousands) 2020 $ 105,832 2021 28,365 2022 8,136 2023 3,340 2024 2,980 $ 148,653 Time deposits of $24.4 million and $13.6 million equal or exceed the FDIC insurance limit of $250 thousand at December 31, 2019 and 2018 , respectively. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Debt Disclosure [Text Block] | Borrowed Funds Borrowed funds included option advance borrowings from the FHLB of $47.2 million and $27.5 million at December 31, 2019 and 2018 , respectively. The FHLB option advance borrowings are a mix of straight bullets, balloons and amortizers with contractual maturities through 2023. All of the FHLB borrowings had interest rates ranging from 0.00% to 3.09% at December 31, 2019 and 0.00% to 2.59% at December 31, 2018 . The weighted average interest rates on the borrowings were 2.01% and 1.84% at December 31, 2019 and 2018 , respectively. The contractual payments due for FHLB option advance borrowings, as of December 31, 2019 , were as follows: (Dollars in thousands) 2020 $ 47,000 2021 164 $ 47,164 The Company has established both overnight and longer term lines of credit with the FHLB. These borrowings are secured by a blanket lien on qualified collateral consisting of loans with first mortgages secured by one-to-four family properties and certain commercial real estate loans. At December 31, 2019 , pledged loans with a carrying value of $207.7 million provided a borrowing capacity of $127.5 million at the FHLB, less outstanding borrowings and other credit subject to collateralization of $61.7 million , resulting in remaining year-end borrowing capacity of $65.8 million . At December 31, 2018 , pledged loans with a carrying value of $167.7 million provided a borrowing capacity of $100.1 million at the FHLB, less outstanding borrowings and other credit subject to collateralization of $45.6 million , resulting in remaining year-end borrowing capacity of $54.5 million . A separate agreement has been established with the FHLB under which the Company has the authority, up to its available borrowing capacity, to collateralize public unit deposits with letters of credit issued by the FHLB. FHLB letters of credit in the amount of $24.8 million and $17.3 million were utilized as collateral for these deposits at December 31, 2019 and 2018 , respectively. Total fees paid by the Company in connection with the issuance of these letters of credit were $27 thousand and $28 thousand for the years ended December 31, 2019 and 2018 , respectively. In addition to its borrowing arrangements with the FHLB, Union maintains a preapproved Federal Funds line of credit with a correspondent bank totaling $15.0 million . Interest on these borrowings is payable daily and charged at the federal funds rate at the time of the borrowing. There were no outstanding borrowings on the Federal Funds purchase line at December 31, 2019 or 2018 . In addition to the funding sources available to Union, the Company established a $5.0 million revolving line of credit with a correspondent bank during the third quarter of 2019 . There were no outstanding borrowings on the line at December 31, 2019 . There were no secured customer repurchase agreement sweeps at December 31, 2019 and $370 thousand at December 31, 2018 , collateralized by U.S. Government-sponsored enterprise securities with a carrying value as of such date of $1.7 million . The average daily balance of these repurchase agreement sweeps was $551 thousand during 2018 , with a weighted average interest rate of 0.26% . The maximum borrowings outstanding on these agreements during 2018 was $3.5 million . These repurchase agreements mature the next business day and carried a weighted average interest rate of 0.20% at December 31, 2018 . |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Income Taxes The components of the provision for income taxes for the years ended December 31 , were as follows: 2019 2018 (Dollars in thousands) Current federal tax provision $ 1,351 $ 1,695 Current state tax provision 41 86 Deferred tax provision (benefit) 438 (508 ) $ 1,830 $ 1,273 The termination of Union’s Defined Benefit Pension Plan resulted in a deferred tax benefit and a reduction in the provision for income taxes of $900 thousand with the settlement of all assets and liabilities under the Plan for the year ended December 31, 2018 . As a result of the 2017 Tax Act, the federal tax rate decreased from 34% to 21% effective January 1, 2018. The deferred tax provision and provision for income taxes shown above were impacted by a one-time charge of $32 thousand for the year ended December 31, 2018 for the revaluation of the Company's deferred tax assets to reflect the 21% tax rate for future periods. The total provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 21% primarily due to the following for the years ended December 31 : 2019 2018 (Dollars in thousands) Computed “expected” tax expense $ 2,620 $ 1,752 State taxes 32 68 Tax exempt interest (513 ) (413 ) Increase in cash surrender value of COLI (59 ) (103 ) Tax credits (857 ) (684 ) Equity in losses of limited partnerships 640 528 Non-deductible expenses 46 36 True-up adjustment for effect of enacted tax law changes — 32 Other (79 ) 57 $ 1,830 $ 1,273 Listed below are the significant components of the net deferred tax (liability) asset at December 31 : 2019 2018 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,329 $ 1,244 Deferred compensation 227 205 Core deposit intangible 106 94 Unrealized loss on investment securities available-for-sale — 272 Other 69 38 Total deferred tax asset 1,731 1,853 Components of the deferred tax liability Depreciation (1,402 ) (913 ) Mortgage servicing rights (371 ) (360 ) Limited partnership investments (50 ) (16 ) Unrealized gain on investment securities available-for-sale (262 ) — Goodwill (276 ) (244 ) Prepaid expenses (136 ) (114 ) Total deferred tax liability (2,497 ) (1,647 ) Net deferred tax (liability) asset $ (766 ) $ 206 Deferred tax assets are recognized subject to management's judgment that it is more likely than not that the deferred tax asset will be realized. Based on the temporary taxable items, historical taxable income and estimates of future taxable income, the Company believes that it is more likely than not that the deferred tax assets at December 31, 2019 will be realized and therefore no valuation allowance is warranted. The net deferred income tax liability is included in Accrued interest and other liabilities and the net deferred income tax asset is included in Other assets in the consolidated balance sheets at December 31, 2019 and 2018 , respectively. Based on management's evaluation, management has concluded that there were no significant uncertain tax positions requiring recognition in the Company's financial statements at December 31, 2019 and 2018 . The Company is subject to income tax at the federal level and in the state of New Hampshire. Although the Company is not currently the subject of an examination by taxing authorities, the Company's tax years ended December 31, 2016 through 2018 are open to examination under the applicable statute of limitations. The 2019 tax return has not yet been filed. The Company may from time to time be assessed interest and/or penalties by federal or state tax jurisdictions, although any such assessments historically have been minimal and immaterial to the Company's financial results. In the event that the Company receives an assessment for interest and/or penalties, it will be classified in the financial statements as Other expenses. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | Employee Benefit Plans 401(k) Plan: Union maintains a tax-qualified defined contribution 401(k) plan under which employees may elect to make tax deferred contributions of up to the IRS maximum from their annual salary. All employees meeting service requirements are eligible to participate in the plan. Union may make employer matching and profit-sharing contributions to the 401(k) plan at the discretion of the Board. Company contributions are fully vested after three years of service. The 401(k) plan includes "Safe Harbor" provisions requiring annual nondiscretionary minimum contributions to the plan for all eligible participants in an amount equal to 3% of eligible earnings of each eligible participant. Additionally, in 2019 and 2018 a discretionary profit-sharing contribution was made to the plan in an amount equal to 3% percent of each employee's eligible earnings, as defined by the plan. The following table summarizes employer contributions for the years ended December 31, 2019 and 2018 : 2019 2018 (Dollars in thousands) Employer matching $ 270 $ 236 Profit sharing 280 279 Safe harbor 336 304 Total $ 886 $ 819 Nonqualified Deferred Compensation Plans: The Company and Union have two nonqualified deferred compensation plans for directors and certain key officers. The Company accrued an expense of $8 thousand and $7 thousand in 2019 and 2018 , respectively, under the 2008 Plan. The benefit obligations under the 2008 Plan represent general unsecured obligations of the Company and no assets are segregated for such payments. However, the Company and Union have purchased life insurance contracts on the lives of each participant in order to recoup the funding costs of these benefits. The benefits accrued under the 2008 Plan aggregated $359 thousand and $388 thousand at December 31, 2019 and 2018 , respectively, and are included in Accrued interest and other liabilities. The cash surrender value of the life insurance policies purchased to recoup the funding costs under the 2008 Plan aggregated $1.0 million and $974 thousand at December 31, 2019 and 2018 , respectively, and are included in Company-owned life insurance in the Company's consolidated balance sheets. The 2006 Plan was adopted for directors and certain key officers. The 2006 Plan is a non-qualified defined contribution plan that provides a means by which participants may elect to defer receipt of current compensation from the Company or its subsidiary in order to provide retirement or other benefits as selected in the individual adoption agreements. Participants may select among designated reference investments consisting of investment funds, with the performance of the participant's account mirroring the selected reference investment. Distributions are made only upon a qualifying distribution event, which may include a separation from service, death, disability or unforeseeable emergency, or upon a date specified in the participant's deferral election form. The 2006 Plan is intended to comply with the provisions of Section 409A of the Internal Revenue Code. The 2006 Plan is unfunded, representing a general unsecured obligation of the Company of $699 thousand and $558 thousand as of December 31, 2019 and 2018 , respectively. Defined Benefit Pension Plan: The Company terminated its Defined Benefit Pension Plan during the fourth quarter of 2018 . The settlement of all assets and liabilities under the Plan was completed by December 31, 2018 . Participants were provided distribution options to either purchase an annuity, take a lump-sum cash payment, or do a direct rollover into a qualifying retirement plan. Net periodic pension expense for 2018 included a settlement loss in the amount of $4.0 million , resulting in total pension expense of $4.6 million . This expense was partially offset by a reduction in the provision for income taxes of $900 thousand as a result of the settlement of the Plan's assets and liabilities. The Company no longer has any remaining defined benefit pension plan obligations and thus no periodic pension expense related to the Plan. The following table sets forth the Plan's obligations and funded status at December 31, 2018 : (Dollars in thousands) Change in projected benefit obligation Projected benefit obligation at beginning of year $ 20,832 Interest cost 599 Settlement gain (326 ) Actuarial gain (2,667 ) Benefits paid (712 ) Settlement payments (17,726 ) Projected benefit obligation at end of year — Change in fair value of plan assets Fair value of plan assets at beginning of year 18,499 Actual loss on plan assets (717 ) Administrative expenses (194 ) Employer contributions 850 Benefits paid (712 ) Settlement payments (17,726 ) Fair value of plan assets at end of year — Net liability for pension benefits $ — There was no accumulated benefit obligation at December 31, 2018 . The impact of the Plan activity for 2018 on OCI is detailed in Note 24. Net periodic pension cost for 2018 consisted of the following components: (Dollars in thousands) Interest cost on projected benefit obligation $ 599 Expected return on plan assets (531 ) Amortization of net actuarial loss 502 Net periodic pension cost $ 570 Recognized settlement loss 4,061 Total net periodic pension cost $ 4,631 Weighted average assumptions used to determine net periodic pension cost for the year ended December 31, 2018 were a discount rate and expected long-term rate of return on plan assets of 3.52% and no rate of compensation increase for 2018 . |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Stock Based Compensation The Company's current stock-based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan. Under the 2014 Equity Plan, 50,000 shares of the Company’s common stock are available for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of December 31, 2019 , there were outstanding grants under the plan of RSUs and incentive stock options. RSUs. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. For each of the awards granted in 2019 , 2018 , and 2017 , 50% of the RSUs awarded were in the form of Time-Based RSUs, which vest over three years, approximately one-third per year on the anniversary of the earned date; and 50% of the RSUs awarded were in the form of Performance-Based RSUs, which are subject to both performance and time based vesting conditions, with vesting of awards over two years, approximately one-half per year on the anniversary of the earned date. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table presents a summary of RSUs from the 2017, 2018, and 2019 Award Plan Summaries as of December 31, 2019: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2017 Award 3,225 $ 52.95 433 2018 Award 3,734 47.75 2,120 2019 Award 10,143 36.26 10,143 Total 17,102 12,696 Unrecognized compensation expense related to the unvested RSUs was $492 thousand and $297 thousand , as of December 31, 2019 and 2018 respectively. On May 15, 2019, the Company's board of directors, as a component of total director compensation, granted an aggregate of 1,185 RSUs to the Company's non-employee directors. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The RSUs will vest on May 19, 2020, subject to continued board service through the vesting date, other than in the case of the director's death or disability. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. Unrecognized director compensation expense related to the unvested RSUs as of December 31, 2019 was $18 thousand . Incentive stock options. The 2014 Equity Plan replaced the Company's 2008 ISO Plan. There were no options granted in 2019 or 2018 under the 2014 Equity Plan. As of December 31, 2019 , 4,500 incentive stock options under the 2014 Equity Plan and 1,000 incentive stock options granted under the 2008 ISO Plan remained outstanding and exercisable. The exercise price of outstanding options under both plans is equal to the market price of the stock at the date of grant; therefore, the intrinsic value of the options at the date of the grant is $0 . All outstanding options have a one year requisite service period, vest after one year, and have a seven year contractual term. There was no compensation cost charged against income for stock options issued under the plans for 2019 or 2018 . The following summarizes the stock option activity under the 2014 Equity Plan for the year ended December 31, 2019 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2019 4,500 $ 24.00 Exercised — — Forfeited/expired — — Outstanding at December 31, 2019 4,500 $ 24.00 1.96 $ 55 Exercisable at December 31, 2019 4,500 $ 24.00 1.96 $ 55 The following summarizes the stock option activity under the 2008 ISO Plan for the year ended December 31, 2019 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2019 3,000 $ 22.00 Exercised (2,000 ) $ 22.00 Forfeited/expired — — Outstanding at December 31, 2019 1,000 $ 22.00 0.96 $ 14 Exercisable at December 31, 2019 1,000 $ 22.00 0.96 $ 14 The following summarizes information regarding the proceeds received by the Company from the exercise of stock options during 2019 : 2019 (Dollars in thousands, except per share data) Proceeds received $ 44 Number of shares exercised 2,000 Weighted average price per share $ 22.00 Total intrinsic value of options exercised $ 30 There were no stock options exercised during 2018 . As of December 31, 2019 , there was no unrecognized compensation cost as all options under both plans were fully vested and exercisable. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Earnings Per Share The following table presents the reconciliation of the calculation of basic earnings per share for the years ended December 31, 2019 and 2018 : 2019 2018 (Dollars in thousands, except per share data) Net income $ 10,648 $ 7,072 Weighted average common shares outstanding 4,468,336 4,465,675 Basic earnings per share $ 2.38 $ 1.58 Basic earnings per share were computed by dividing net income by the weighted average number of shares outstanding during the year. There were incentive stock options with respect to 5,500 shares and 7,500 shares outstanding at December 31, 2019 and 2018 , respectively, and unvested RSUs totaling 13,881 and 6,043 at December 31, 2019 and 2018 , respectively, excluded from the computation of diluted earnings per share since dilution resulting from these stock options and the vesting of RSUs is immaterial. |
Financial Instruments With Off-
Financial Instruments With Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Off-Balance Sheet Risk [Text Block] | Financial Instruments With Off-Balance-Sheet Risk The Company is a party to financial instruments with off-balance-sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit, standby letters of credit, interest rate caps and floors written on adjustable-rate loans, commitments to participate in or sell loans, commitments to buy or sell securities, guarantees on certain sold loans and risk-sharing commitments on certain sold loans under the MPF program with the FHLB. At December 31, 2019 and 2018 , the Company had binding loan commitments to sell residential mortgage loans at fixed rates totaling $7.1 million and $2.7 million , respectively. The fair value of these commitments is not material to the Company's financial statements. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The contract or notional amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments and the potential impact on the Company's future financial position, financial performance and cash flow. The Company's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual notional amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance-sheet instruments. For interest rate caps and floors embedded in adjustable-rate loans, the contract or notional amounts do not represent exposure to credit loss. The Company controls the risk of interest rate cap agreements through credit approvals, limits and monitoring procedures. Interest rate caps and floors on adjustable rate loans permit the Company to manage its interest rate risk and cash flow risk on these loans within parameters established by Company policy. The Company generally requires collateral or other security to support financial instruments with credit risk. The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31 : Contract or Notional Amount 2019 2018 (Dollars in thousands) Commitments to originate loans $ 35,689 $ 22,673 Unused lines of credit 103,623 109,457 Standby and commercial letters of credit 2,308 2,308 Credit card arrangements 311 259 MPF credit enhancement obligation, net (See Note 19) 687 684 Commitment for purchase of Jericho branch property — 1,220 Commitment for construction of Williston branch — 3,208 Commitment to purchase investment in a real estate limited partnership 3,000 — Total $ 145,618 $ 139,809 Commitments to extend credit are agreements to lend to a customer at either a fixed or variable interest rate as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates within 90 days of the commitment. Unused lines of credit are generally renewable at least annually except for home equity lines which usually have a specified draw period followed by a specified repayment period. Unused lines may have other termination clauses and may require payment of a fee. Since many of the commitments and lines are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer's credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon issuance of a commitment to extend credit is based on management's credit evaluation of the customer. Collateral held varies but may include real estate, accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are issued to support the customer's private borrowing arrangements or guarantee the customer's contractual performance on behalf of a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers and the Company evaluates each customer's creditworthiness on a case-by-case basis. The fair value of standby letters of credit has not been included in the Company's consolidated balance sheet for either year as the fair value is immaterial. The Company did not hold or issue derivative instruments or hedging instruments during the years ended December 31, 2019 and 2018 . |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | Commitments and Contingencies Contingent Liabilities: The Company sells 1-4 family residential mortgage loans under the MPF program with FHLB (See Note 18). Under this program, the Company shares in the credit risk of each mortgage loan, while receiving fee income in return. The Company is responsible for a Credit Enhancement Obligation based on the credit quality of these loans. FHLB funds a First Loss Account based on the Company's outstanding MPF mortgage loan balances. This creates a laddered approach to sharing in any losses. In the event of default, homeowner's equity and private mortgage insurance, if any, are the first sources of repayment; the FHLB First Loss Account funds are then utilized, followed by the member's Credit Enhancement Obligation, with the balance the responsibility of FHLB. These loans meet specific underwriting standards of the FHLB. As of December 31, 2019 , the Company had sold $30.8 million in loans through the MPF program since inception of its participation in the program, with an outstanding principal balance of $13.0 million as of such date. The volume of loans sold to the MPF program and the corresponding credit obligation are closely monitored by management. As of December 31, 2019 and 2018 , the notional amount of the maximum contingent contractual liability related to this program was $705 thousand and $702 thousand , respectively, of which $18 thousand had been recorded as a reserve through Accrued interest and other liabilities at December 31, 2019 and 2018 . Legal Contingencies: In the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial statements. |
Fair Value Measurement
Fair Value Measurement | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Fair Value Measurement The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS : The Company’s AFS investment securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds : Mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. Assets measured at fair value on a recurring basis at December 31, 2019 and 2018 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,292 $ — $ 6,292 $ — Agency MBS 46,024 — 46,024 — State and political subdivisions 26,965 — 26,965 — Corporate 8,112 — 8,112 — Total debt securities $ 87,393 $ — $ 87,393 $ — Other investments: Mutual funds $ 690 $ 690 $ — $ — December 31, 2018: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,321 $ — $ 6,321 $ — Agency MBS 36,252 — 36,252 — State and political subdivisions 23,171 — 23,171 — Corporate 7,661 — 7,661 — Total debt securities $ 73,405 $ — $ 73,405 $ — Other investments: Mutual funds $ 556 $ 556 $ — $ — There were no transfers in or out of Levels 1 and 2 during the years ended December 31, 2019 and 2018 , nor were there any Level 3 assets at any time during those periods. Certain other assets and liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis in periods after initial recognition, such as collateral-dependent impaired loans and MSRs, were not considered material at December 31, 2019 or 2018 . The Company has not elected to apply the fair value method to any financial assets or liabilities other than those situations where other accounting pronouncements require fair value measurements. FASB ASC Topic 825 , Financial Instruments, requires disclosure of the estimated fair value of financial instruments. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Management’s estimates and assumptions are inherently subjective and involve uncertainties and matters of significant judgment. Changes in assumptions could dramatically affect the estimated fair values. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments may be excluded from disclosure requirements. Thus, the aggregate fair value amounts presented may not necessarily represent the actual underlying fair value of such instruments of the Company. As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: December 31, 2019 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 51,134 $ 51,134 $ 51,134 $ — $ — Interest bearing deposits in banks 6,565 6,671 — 6,671 — Investment securities 88,083 88,083 690 87,393 — Loans held for sale 7,442 7,587 — 7,587 — Loans, net Residential real estate 191,032 192,955 — — 192,955 Construction real estate 68,951 68,381 — — 68,381 Commercial real estate 286,871 288,931 — — 288,931 Commercial 47,379 45,872 — — 45,872 Consumer 3,545 3,483 — — 3,483 Municipal 67,387 67,103 — — 67,103 Accrued interest receivable 2,702 2,702 — 435 2,267 Nonmarketable equity securities 2,607 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 136,434 136,434 136,434 — — Interest bearing 458,940 458,940 458,940 — — Time 148,653 148,542 — 148,542 — Borrowed funds Short-term 40,000 40,000 40,000 — — Long-term 7,164 7,416 — 7,416 — Accrued interest payable 673 673 — 673 — December 31, 2018 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 37,289 $ 37,289 $ 37,289 $ — $ — Interest bearing deposits in banks 9,300 9,177 — 9,177 — Investment securities 73,961 73,961 556 73,405 — Loans held for sale 2,899 2,954 — 2,954 — Loans, net Residential real estate 186,225 183,836 — — 183,836 Construction real estate 54,786 54,694 — — 54,694 Commercial real estate 273,609 272,187 — — 272,187 Commercial 46,943 45,713 — — 45,713 Consumer 3,223 3,193 — — 3,193 Municipal 72,874 72,689 — — 72,689 Accrued interest receivable 2,812 2,812 — 423 2,389 Nonmarketable equity securities 2,376 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 132,971 132,971 132,971 — — Interest bearing 444,722 444,722 444,722 — — Time 129,077 127,554 — 127,554 — Borrowed funds Short-term 370 370 370 — — Long-term 27,451 27,374 — 27,374 — Accrued interest payable 203 203 — 203 — The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. |
Transactions with Related Parti
Transactions with Related Parties | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | Transactions with Related Parties The Company has had, and may be expected to have in the future, banking transactions in the ordinary course of business with principal stockholders, directors, principal officers, their immediate families and affiliated companies in which they are principal stockholders (commonly referred to as related parties), all of which have been, in the opinion of management, on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and which do not represent more than the normal risk of collectability or present other unfavorable features. Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2019 2018 (Dollars in thousands) Balance, January 1, $ 749 $ 961 New loans and advances on lines 1,045 827 Repayments (690 ) (1,039 ) Other, net 196 — Balance, December 31, $ 1,300 $ 749 Balance available on lines of credit or loan commitments $ 1,153 $ 693 There were no loans to related parties that were past due, in nonaccrual status or that had been restructured to provide a reduction or deferral of interest or principal because of deterioration in the financial position of the borrower, or that were considered classified at December 31, 2019 or 2018 . Deposit accounts with related parties were $1.3 million and $1.2 million at December 31, 2019 and 2018 , respectively. Union's Asset Management Group also invested $348 thousand and $397 thousand in certificates of deposit with Union at December 31, 2019 and 2018 , respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | Regulatory Capital Requirements The Company (on a consolidated basis) and Union are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the Company's and Union's financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Union must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company's and Union's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Under the current guidelines, banking organizations must have a minimum total risk-based capital ratio of 8.0%, a minimum Tier I risk-based capital ratio of 6.0%, a minimum common equity Tier I risk-based capital ratio of 4.5%, and a minimum leverage ratio of 4.0% in order to be "adequately capitalized." In addition to these requirements, banking organizations must maintain a 2.5% capital conservation buffer consisting of common Tier I equity, increasing the minimum required total risk-based capital, Tier I risk-based and common equity Tier I capital to risk-weighted assets they must maintain to avoid limits on capital distributions and certain bonus payments to executive officers and similar employees. The Economic Growth, Regulatory Relief and Consumer Protection Act of 2018 directed the federal banking regulators to adopt rules providing for a simplified regulatory capital framework for qualifying community banking organizations. In September 2019, the banking regulators finalized a rule that introduced the community bank leverage ratio (CBLR) framework as an optional simplified measure of capital adequacy for qualifying institutions. A banking organization with a Tier I leverage ratio greater than 9.0%, less than $10 billion in average consolidated assets, and limited amounts of off-balance sheet exposures and trading assets and liabilities may opt into the CBLR framework and will be deemed "well capitalized" and will not be required to report or calculate risk-based capital. A qualifying community bank may utilize the CBLR framework beginning with the March 31, 2020 regulatory capital calculation. A community banking organization that does not meet the requirements for use of the simplified CBLR framework will continue to calculate its regulatory capital ratios under existing guidelines. As of December 31, 2019 , the Tier I leverage ratio was 8.09% and 8.06% for the Company and Union, respectively. The Company and Bank's risk-based capital ratios exceeded regulatory guidelines at December 31, 2019 and December 31, 2018 , and, specifically, the Bank was "well capitalized" under Prompt Corrective Action provisions for each period. There were no conditions or events that occurred subsequent to December 31, 2019 that would change the Company or Bank's regulatory capital categorization. Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 74,510 13.02 % $ 45,782 8.00 % N/A N/A Tier 1 capital to risk weighted assets 68,388 11.95 % 34,337 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 68,388 11.95 % 25,753 4.50 % N/A N/A Tier 1 capital to average assets 68,388 8.09 % 33,814 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 74,167 12.98 % $ 45,712 8.00 % $ 57,139 10.00 % Tier 1 capital to risk weighted assets 68,045 11.91 % 34,280 6.00 % 45,706 8.00 % Common Equity Tier 1 to risk weighted assets 68,045 11.91 % 25,710 4.50 % 37,136 6.50 % Tier 1 capital to average assets 68,045 8.06 % 33,769 4.00 % 42,212 5.00 % Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 68,616 12.86 % $ 42,685 8.00 % N/A N/A Tier 1 capital to risk weighted assets 62,877 11.78 % 32,026 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 62,877 11.78 % 24,019 4.50 % N/A N/A Tier 1 capital to average assets 62,877 8.03 % 31,321 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 68,305 12.82 % $ 42,624 8.00 % $ 53,280 10.00 % Tier 1 capital to risk weighted assets 62,566 11.75 % 31,949 6.00 % 42,598 8.00 % Common Equity Tier 1 to risk weighted assets 62,566 11.75 % 23,961 4.50 % 34,611 6.50 % Tier 1 capital to average assets 62,566 8.00 % 31,283 4.00 % 39,104 5.00 % Dividends paid by Union are the primary source of funds available to the Company for payment of dividends to its stockholders. Union is subject to certain requirements imposed by federal banking laws and regulations, which among other things, establish minimum levels of capital and restrict the amount of dividends that may be distributed by Union to the Company. |
Treasury Stock
Treasury Stock | 12 Months Ended |
Dec. 31, 2019 | |
Class of Stock Disclosures [Abstract] | |
Treasury Stock [Text Block] | Treasury Stock The basis for the carrying value of the Company's treasury stock is the purchase price of the shares at the time of purchase. The Company maintains a limited stock repurchase plan which authorizes the repurchase of up to 2,500 shares of its common stock each calendar quarter in open market purchases or privately negotiated transactions, as management may deem advisable and as market conditions may warrant. The repurchase authorization for a calendar quarter expires at the end of that quarter to the extent it has not been exercised, and is not carried forward into future quarters. The quarterly repurchase program, which was initially adopted in 2010, was most recently reauthorized in January 2020 and will expire on December 31, 2020 unless reauthorized. The Company repurchased 300 shares under this program, at a total cost of $13 thousand during 2019 , while 2,209 shares, at a total cost of $107 thousand were repurchased under the program during 2018 . Since inception, the Company had repurchased 17,693 shares of its common stock as of December 31, 2019 , at prices ranging from $17.86 to $48.82 per share and at a total cost of $472 thousand . The Company maintains a Dividend Reinvestment and Stock Purchase Plan (DRIP) whereby registered stockholders may elect to reinvest cash dividends and optional cash contributions to purchase additional shares of the Company's common stock. The Company has reserved 200,000 shares of its common stock for issuance and sale under the DRIP. As of December 31, 2019 , 2,503 shares of stock had been issued from treasury stock under the DRIP, since inception of the Plan in 2016. |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Other Comprehensive Income The components of Accumulated OCI, net of tax, at December 31 were: 2019 2018 (Dollars in thousands) Net unrealized gain (loss) on investment securities available-for-sale $ 986 $ (1,023 ) The following table discloses the tax effects allocated to each component of OCI for the years ended : December 31, 2019 December 31, 2018 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale $ 2,568 $ (539 ) $ 2,029 $ (905 ) $ 191 $ (714 ) Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (25 ) 5 (20 ) (10 ) 2 (8 ) Total 2,543 (534 ) 2,009 (915 ) 193 (722 ) Defined benefit pension plan: Net actuarial gain arising during the year — — — 1,546 (325 ) 1,221 Reclassification adjustment for amortization of net actuarial loss realized in net income — — — 502 (105 ) 397 Reclassification adjustment for recognized settlement loss — — — 4,022 (845 ) 3,177 Total — — — 6,070 (1,275 ) 4,795 Total other comprehensive income $ 2,543 $ (534 ) $ 2,009 $ 5,155 $ (1,082 ) $ 4,073 The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31 : Reclassification Adjustment Description 2019 2018 Affected Line Item in Consolidated Statements of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (25 ) $ (10 ) Net gains on sales of investment securities available-for-sale Tax benefit 5 2 Provision for income taxes (20 ) (8 ) Net income Defined benefit pension plan: Net actuarial loss — 502 Pension expense Recognized settlement loss — 4,022 Pension expense — 4,524 Income before provision for income taxes Tax expense — (950 ) Provision for income taxes — 3,574 Net income Total reclassifications $ (20 ) $ 3,566 Net income |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Subsequent Events Events occurring subsequent to December 31, 2019 have been evaluated as to their potential impact on the consolidated financial statements. On January 15, 2020 , the Board of Directors declared a cash dividend of $0.32 per share for the quarter, an increase of 3.2% from the cash dividend of $0.31 paid in recent prior quarters. The dividend is payable February 6, 2020 to shareholders of record as of January 27, 2020 . |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Condensed Financial Information (Parent Company Only) The following condensed financial statements are for Union Bankshares, Inc. (Parent Company Only), and should be read in conjunction with the consolidated financial statements of Union Bankshares, Inc. and Subsidiary. UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2019 and 2018 2019 2018 (Dollars in thousands) ASSETS Cash $ 46 $ 48 Other investments 27 67 Investment in subsidiary - Union 71,500 64,180 Other assets 712 767 Total assets $ 72,285 $ 65,062 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Other liabilities $ 442 $ 571 Total liabilities 442 571 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,948,245 shares 9,897 9,888 Additional paid-in capital 1,124 894 Retained earnings 64,019 58,911 Treasury stock at cost; 476,268 shares at December 31, 2019 and 477,011 shares (4,183 ) (4,179 ) Accumulated other comprehensive income (loss) 986 (1,023 ) Total stockholders' equity 71,843 64,491 Total liabilities and stockholders' equity $ 72,285 $ 65,062 The investment in subsidiary is carried under the equity method of accounting. The investment in subsidiary and cash, which is on deposit with Union, have been eliminated in consolidation. UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2019 and 2018 2019 2018 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 5,925 $ 5,625 Other income 24 254 Total revenues 5,949 5,879 Expenses Interest 16 18 Administrative and other 536 419 Total expenses 552 437 Income before applicable income tax benefit and equity in undistributed net income of subsidiary 5,397 5,442 Applicable income tax benefit (113 ) (89 ) Income before equity in undistributed net income of subsidiary 5,510 5,531 Equity in undistributed net income - Union 5,138 1,541 Net income $ 10,648 $ 7,072 UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2019 and 2018 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 10,648 $ 7,072 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (5,138 ) (1,541 ) Decrease (increase) in other assets 55 (205 ) Decrease in other liabilities (137 ) (233 ) Net cash provided by operating activities 5,428 5,093 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of other investments 47 44 Purchases of other investments (7 ) (12 ) Proceeds of Company-owned life insurance death benefit — 281 Net cash provided by investing activities 40 313 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (5,501 ) (5,328 ) Issuance of common stock 44 — Purchase of treasury stock (13 ) (107 ) Net cash used in financing activities (5,470 ) (5,435 ) Net decrease in cash (2 ) (29 ) Cash, beginning of year 48 77 Cash, end of year $ 46 $ 48 Supplemental Disclosures of Cash Flow Information Interest paid $ 16 $ 18 Dividends paid on Common Stock: Dividends declared $ 5,540 $ 5,358 Dividends reinvested (39 ) (30 ) $ 5,501 $ 5,328 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Quarterly Financial Data (Unaudited) A summary of consolidated financial data for each of the four quarters of 2019 and 2018 is presented below: Quarters in 2019 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 8,654 $ 8,923 $ 9,131 $ 9,294 Interest expense 1,230 1,401 1,497 1,488 Net interest income 7,424 7,522 7,634 7,806 Provision for loan losses 50 150 150 425 Noninterest income 2,170 2,452 2,732 2,969 Noninterest expenses 6,513 6,807 7,001 7,135 Net income 2,621 2,530 2,738 2,759 Earnings per common share $ 0.59 $ 0.56 $ 0.62 $ 0.61 Quarters in 2018 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 7,571 $ 7,943 $ 8,095 $ 8,571 Interest expense 647 731 1,086 1,117 Net interest income 6,924 7,212 7,009 7,454 Provision for loan losses — 150 150 150 Noninterest income 2,471 2,152 2,452 2,398 Noninterest expenses 6,124 6,306 6,525 10,322 Net income 2,747 2,450 2,311 (436 ) Earnings per common share $ 0.62 $ 0.54 $ 0.52 $ (0.10 ) |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | Other Noninterest Income and Other Noninterest Expenses The components of other noninterest income and other noninterest expenses for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 Income (Dollars in thousands) Income from life insurance $ 281 $ 488 Other income 322 226 Total other income $ 603 $ 714 Expenses ATM network and debit card expense $ 790 $ 690 Advertising and public relations 555 456 Vermont franchise tax 678 620 Professional fees 701 625 Director and advisory board fees 502 450 Other expenses 3,934 3,823 Total other expenses $ 7,160 $ 6,664 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Basis of financial statement presentation [Policy Text Block] | Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and the Subsidiary (the Company) are in conformity with GAAP and general practices within the banking industry. The following is a description of the more significant policies. The consolidated financial statements include the accounts of Union Bankshares, Inc., and its wholly owned subsidiary, Union Bank, headquartered in Morrisville, Vermont. All significant intercompany transactions and balances have been eliminated. The Company utilizes the accrual method of accounting for financial reporting purposes. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its audited consolidated statements of income, comprehensive income, cash flows and changes in stockholder’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this Annual Report on Form 10-K, as permitted for smaller reporting companies. Certain amounts in the 2018 consolidated financial statements have been reclassified to conform to the current year presentation. The acronyms, abbreviations and capitalized terms identified below are used throughout this Annual Report on Form 10-K, including Parts I, II and III. The following is provided to aid the reader and provide a reference page when reviewing this Annual Report: AFS: Available-for-sale ICS: Insured Cash Sweeps of the Promontory Interfinancial Network ALCO: Asset Liability Management Committee IRS: Internal Revenue Service ALL: Allowance for loan losses MBS: Mortgage-backed security ASC: Accounting Standards Codification MPF: Mortgage Partnership Finance Program ASU: Accounting Standards Update MSRs: Mortgage Servicing rights BHCA: Bank Holding Company Act of 1956 NASDAQ: NASDAQ Global Security Market Board: Board of Directors OAO: Other assets owned bp or bps: Basis point(s) OCI: Other comprehensive income (loss) Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OFAC: U.S. Office of Foreign Assets Control CDARS: Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network OREO: Other real estate owned CFPB: Consumer Financial Protection Bureau OTTI: Other-than-temporary impairment COLI: Company-Owned Life Insurance OTT: Other-than-temporary Company: Union Bankshares, Inc. and Subsidiary Plan: The Union Bank Pension Plan DFR: Vermont Department of Financial Regulation RD: USDA Rural Development Dodd-Frank Act: The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 RSU: Restricted Stock Units DRIP: Dividend Reinvestment and Stock Purchase Plan SBA: U.S. Small Business Administration EPS: Earnings per share SEC: U.S. Securities and Exchange Commission FASB: Financial Accounting Standards Board SOX Act: Sarbanes Oxley Act of 2002 FDIC: Federal Deposit Insurance Corporation Tax Act: Tax Cut and Jobs Act FDICIA: The Federal Deposit Insurance Corporation Improvement Act of 1991 TDR: Troubled-debt restructuring FHA: U.S. Federal Housing Administration Union: Union Bank, the sole subsidiary of Union Bankshares, Inc FHLB: Federal Home Loan Bank of Boston USDA: U.S. Department of Agriculture FRB: Federal Reserve Board VA: U.S. Veterans Administration Fannie Mae: Federal National Mortgage Association 2006 Plan: Executive Nonqualified Excess Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan GAAP: Generally accepted accounting principles in the United States 2008 ISO Plan: 2008 Incentive Stock Option Plan of the Company GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 2014 Equity Plan: 2014 Equity Incentive Plan HTM: Held-to-maturity 2017 Tax Act: Tax Cuts and Jobs Act of 2017 HUD: U.S. Department of Housing and Urban Development |
Nature of operations [Policy Text Block] | Nature of operations The Company provides a variety of financial services to individuals, municipalities, commercial businesses and nonprofit customers through its branches, ATMs, telebanking, mobile and internet banking systems in northern Vermont and New Hampshire. This market area encompasses primarily retail consumers, small businesses, municipalities, agricultural producers and the tourism industry. The Company's primary deposit products are checking accounts, savings accounts, money market accounts, certificates of deposit and individual retirement accounts and its primary lending products are commercial, real estate, municipal and consumer loans. The Company also offers fiduciary and asset management services through its Asset Management Group, an unincorporated division of Union. |
Significant concentration of credit risk [Policy Text Block] | Significant concentration of credit risk The Company grants loans primarily to customers in Vermont and New Hampshire. Although it has a diversified loan portfolio, a large portion of the Company's loans are secured by commercial or residential real estate located in Vermont and New Hampshire and is subject to volatility with each state's real estate market. Additionally, the borrower's ability to repay loans is highly dependent upon other economic factors throughout Vermont and New Hampshire. The Company typically requires the principals of any commercial borrower to obligate themselves personally on the loan. |
Use of estimates in preparation of consolidated financial statements [Policy Text Block] | Use of estimates in preparation of consolidated financial statements The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ materially from those estimates. Material estimates that are particularly susceptible to significant change in the near term and involve inherent uncertainties relate to the determination of the ALL on loans, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, valuation of deferred tax assets, and asset impairment judgments, including OTTI of investment securities. These estimates involve a significant degree of complexity and subjectivity and the amount of the change that is reasonably possible, should any of these estimates prove inaccurate, cannot be estimated. |
Presentation of cash flows [Policy Text Block] | Presentation of cash flows For purposes of presentation in the consolidated statements of cash flows, cash and cash equivalents includes cash on hand, amounts due from banks (including cash items in process of clearing), federal funds sold (generally purchased and sold for one day periods) and overnight deposits. |
Asset management operations [Policy Text Block] | Asset management operations Assets held by Union's Asset Management Group in a fiduciary or agency capacity, other than trust cash on deposit with Union, are not included in these consolidated financial statements because they are not assets of Union or the Company. |
Fair value measurement [Policy Text Block] | Fair value measurement The Company utilizes FASB ASC Topic 820, Fair Value Measurement , as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument's level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: • Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; • Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; and • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). |
Investment securities [Policy Text Block] | Investment securities Debt securities the Company has the positive intent and ability to hold to maturity are classified as HTM and reported at amortized cost. Debt securities not classified as either HTM or trading are classified as AFS. Investments classified as AFS are reported at fair value. Debt securities purchased and held primarily for resale in the near future are classified as trading securities and are reported at fair value with unrealized gains and losses included in earnings. The Company does not generally hold any securities classified as trading. Accretion of discounts and amortization of premiums arising at acquisition on investment securities are included in income using the effective interest method over the life of the securities to the call date. Unrealized gains and losses on investment securities AFS are excluded from earnings and reported in Accumulated OCI, net of tax and reclassification adjustment, as a separate component of stockholders' equity. The specific identification method is used to determine realized gains and losses on sales of AFS or trading securities. The Company evaluates all debt securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists . A debt security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of an OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statement of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether an OTTI exists and the period over which the security is expected to recover: • The length of time, and extent to which, the fair value has been less than the amortized cost; • Adverse conditions specifically related to the security, industry, or geographic area; • The historical and implied volatility of the fair value of the security; • The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; • Failure of the issuer of the security to make scheduled interest or principal payments; • Any changes to the rating of the security by a rating agency; • Recoveries or additional declines in fair value subsequent to the balance sheet date; and • The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. |
Loans held for sale [Policy Text Block] | Loans held for sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. The estimated fair value of loans held for sale is based on current price quotes that determine the amount that the loans could be sold for in the secondary market. Loans transferred from held for sale to portfolio are transferred at the lower of cost or fair value in the aggregate. Sales are normally made without recourse. Gains and losses on the disposition of loans held for sale are determined on the specific identification basis. Net unrealized losses are recognized through a valuation allowance by charges to income. |
Loans [Policy Text Block] | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. |
Allowance for loan losses [Policy Text Block] | Allowance for loan losses The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Management has established the threshold for individual impairment evaluation for commercial loans with balances greater than $500 thousand, based on an evaluation of the Company's historical loss experience on substandard commercial loans. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: • Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. • Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. • Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on credit quality of this segment. • Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. • Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. |
Other real estate owned [Policy Text Block] | Other real estate owned Real estate properties acquired through or in lieu of loan foreclosure are to be sold and are initially recorded based on an independent appraisal or a broker price opinion at the estimated fair value less estimated selling costs at the date of acquisition, establishing a new carrying basis. Thereafter, valuations are periodically performed by management, and the real estate is carried in Other assets at the lower of carrying amount or fair value, less estimated cost to sell. Costs of significant property improvements are capitalized, if deemed recoverable, whereas revenue and expenses from operations and changes in valuation are charged to Other expenses in the Company's consolidated statements of income. There were no OREO properties at December 31, 2019 or 2018 . |
Mortgage Banking [Policy Text Block] | Mortgage Banking Residential real estate mortgages are originated by the Company both for its portfolio and for sale into the secondary market. The transfer of these financial assets is accounted for as a sale when control over the asset has been surrendered. Control is deemed to be surrendered when (i) the asset has been isolated from the Company, (ii) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred asset, and (iii) the Company does not maintain effective control over the transferred asset through an agreement to repurchase it before its maturity. The Company records the gain on sale of the financial asset within net gains on sales of loans held for sale, net in the consolidated statements of income. Servicing assets are recognized as separate assets when servicing rights are acquired through the sale of residential mortgage loans with servicing rights retained. Capitalized servicing rights, which are reported in other assets on the consolidated statements of condition, are initially recorded at fair value and are amortized in proportion to, and over the period of, the estimated future servicing of the underlying mortgages (typically, the contractual life of the mortgage). The amortization of mortgage servicing rights is recorded as a reduction of loan servicing fee income within noninterest income on the consolidated statements of income. Servicing assets are evaluated for impairment regularly based upon the fair value of the rights as compared to amortized cost. Impairment is determined by stratifying rights by predominant characteristics, such as interest rates and terms. Fair value is determined using prices for similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Impairment of the servicing assets is recognized through a valuation allowance to the extent that fair value is less than the capitalized amount. If it is later determined that all or a portion of the impairment no longer exists, a reduction of the allowance may be recorded increasing income, but not below zero. Servicing fee income is recorded for fees earned for servicing loans for investors. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income within noninterest income in the consolidated statements of income when earned. |
Premises and equipment [Policy Text Block] | Premises and equipment Premises and equipment are stated at cost, less accumulated depreciation. Depreciation is computed principally by the straight line method over the estimated useful lives of the assets. The cost of assets sold or otherwise disposed of and the related accumulated depreciation are eliminated from the accounts and the resulting gains or losses are reflected in the consolidated statement of income. Maintenance and repairs are charged to current expense as incurred and the costs of major renovations and betterments are capitalized. Construction in progress is stated at cost, which includes the cost of construction and other direct costs attributable to the construction. No provision for depreciation is made on construction in progress until such time as the relevant assets are completed and put into use. |
Intangible assets [Policy Text Block] | Intangible assets Intangible assets include goodwill, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition, as well as a core deposit intangible related to the deposits acquired (see Note 10). The core deposit intangible is amortized on a straight line basis over the estimated average life of the acquired core deposit base of 10 years. The Company evaluates the valuation and amortization of the core deposit intangible if events occur that could result in possible impairment. With respect to goodwill, in accordance with current authoritative guidance, the Company assesses qualitative factors to determine whether the existence of events or circumstances leads to a determination that it is more likely than not that the fair value of the Company is less than its carrying amount, which could result in goodwill impairment. |
Federal Home Loan Bank stock [Policy Text Block] | Federal Home Loan Bank stock As a member of the FHLB, Union is required to invest in $100 par value stock of the FHLB in an amount to satisfy unpaid principal balances on qualifying loans, plus an amount to satisfy an activity based requirement. The stock is nonmarketable, and is redeemable by the FHLB at par value. Also, there is the possibility of future capital calls by the FHLB on member banks to ensure compliance with its capital plan. FHLB stock is reported in Other assets at its par value of $2.5 million and $2.3 million at December 31, 2019 and 2018 , respectively. |
Company-owned life insurance [Policy Text Block] | Company-owned life insurance COLI represents life insurance on the lives of certain current or former directors or employees who have provided positive consent allowing the Company to be the beneficiary of such policies. The Company utilizes COLI as tax-efficient funding for certain benefit obligations to its employees and directors, including obligations under one of the Company's nonqualified deferred compensation plans. (See Note 15.) The Company is the primary beneficiary of the insurance policies. Increases in the cash value of the policies, as well as any gain on insurance proceeds received, are recorded in Other income, and are not currently subject to income taxes. COLI is recorded at the cash value of the policies, less any applicable cash surrender charges (of which there are currently none). The Company reviews the financial strength of the insurance carriers prior to the purchase of COLI to ensure minimum credit ratings of at least investment grade. The financial strength of the carriers is reviewed annually and COLI with any individual carrier is limited by Company policy to 15% of the sum of Tier 1 Capital and allowable Tier 2 capital. |
Investment in real estate limited partnerships [Policy Text Block] | Investment in real estate limited partnerships The Company has purchased various limited partnership interests in affordable housing partnerships. These partnerships were established to acquire, own and rent residential housing for elderly, low or moderate income residents in northern Vermont or in New Hampshire. GAAP permits an entity to amortize the initial cost of the investment in proportion to the amount of the tax credits and other tax benefits received and recognize the net investment performance in the income statement as a component of income tax expense. There were no impairment losses during the year resulting from the forfeiture or ineligibility of tax credits related to qualified affordable housing project investments. (See Note 11.) |
Advertising costs [Policy Text Block] | Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statement of income. |
Earnings per common share [Policy Text Block] | Earnings per common share Earnings per common share for the period are computed based on the weighted average number of shares of common stock issued during the period, including DRIP shares issuable upon reinvestment of dividends, retroactively adjusted for stock splits and stock dividends, if any, and reduced for shares held in treasury. (See Note 17.) |
Income taxes [Policy Text Block] | Income taxes The Company prepares its federal income tax return on a consolidated basis. Federal income taxes are allocated to members of the consolidated group based on taxable income. The Company recognizes income taxes under the asset and liability method. This involves estimating the Company's actual current tax exposure as well as assessing temporary differences resulting from differing treatment of items, such as timing of the deduction of expenses, for tax and GAAP purposes. These differences result in deferred tax assets and liabilities, which are netted and included in Other assets. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The Company must also assess the likelihood that any deferred tax assets will be recovered from future taxable income and to the extent that recovery is not likely, a valuation allowance must be established. A change in enacted federal income tax rates for future periods requires revaluation of deferred taxes. Significant management judgment is required in determining the provision for income taxes and valuation of deferred tax assets and liabilities. (See Note 14.) |
Off-balance-sheet financial instruments [Policy Text Block] | Off-balance-sheet financial instruments In the ordinary course of business, the Company is a party to off-balance-sheet financial instruments consisting of commitments to originate credit, unused lines of credit including commitments under credit card arrangements, commitments to purchase investment securities, commitments to invest in real estate limited partnerships, commercial letters of credit, standby letters of credit and risk-sharing commitments on certain sold loans. Such financial instruments are recorded in the financial statements when they become fixed and certain. |
Comprehensive income (loss) [Policy Text Block] | Comprehensive income (loss) Accounting principles generally require that recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on debt securities AFS that are not OTTI and the unfunded liability for the defined benefit pension plan, are not reflected in the consolidated statement of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheet (Accumulated OCI) (See Note 24). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Transfers of financial assets [Policy Text Block] | Transfers of financial assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Company, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Stock Based Compensation [Policy Text Block] | Stock Based Compensation Under the Company's 2014 Equity Plan approved by the stockholders, 50,000 shares of the Company’s common stock (including approximately 25,000 unused shares from the 2008 ISO Plan) were authorized for equity awards of incentive stock options, nonqualified stock options, restricted stock and restricted stock units to eligible officers and (except for awards of incentive stock options) nonemployee directors. (See Note 16.) |
Segment Reporting [Policy Text Block] | Segment Reporting Operating segments are the components of an entity for which separate financial information is available and evaluated regularly by the chief operating decision-maker in order to allocate resources and assess performance. The Company's chief operating decision-maker assesses consolidated financial results to make operating and strategic decisions, assess performance, and allocate resources. Therefore, the Company has determined that its business is conducted in one reportable segment and represents the consolidated financial statements of the Company. |
Recent accounting pronouncements [Policy Text Block] | Recent accounting pronouncements The Company adopted ASU No. 2016-02, Leases (Topic 842) as of January 1, 2019. The ASU was issued to increase transparency and comparability among organizations by recognizing lease assets and liabilities (including operating leases) on the balance sheet and disclosing key information about leasing arrangements. Previous lease accounting did not require the inclusion of operating leases in the balance sheet. The ASU did not significantly change lease accounting requirements applicable to lessors and did not significantly impact the consolidated financial statements in relation to contracts whereby the Company acts as a lessor. Implementation of the guidance resulted in the recording of right-of-use assets and lease liabilities on the consolidated balance sheet, but did not have a material impact on the Company's consolidated statements of income. See Note 9 for additional disclosures relating to the Company's lease assets and liabilities. The Company adopted ASU No. 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities as of January 1, 2019 . The ASU was issued to make certain specific improvements to hedge accounting to better align hedge accounting with risk management activities, eliminate the separate measurement and recording of hedge ineffectiveness, improve presentation and disclosure, and other simplifications. Adoption of the ASU did not have a material effect on the Company's consolidated financial statements. The Company also adopted ASU No. 2017-08, Premium Amortization on Purchased Callable Debt Securities as of January 1, 2019. This ASU shortens the amortization period for the premium on certain purchased callable debt securities to the earliest call date. Previously, many entities amortized the premium over the contractual life of the security. The ASU did not change the accounting for purchased callable debt securities held at a discount; the discount continues to be accreted to maturity. The guidance calls for a modified retrospective transition approach under which a cumulative-effect adjustment will be made to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. The Company's past practice aligns with the ASU therefore there was no impact on the Company's consolidated financial statements. In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under the new guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The new guidance, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, t h e ASU i s effec ti ve for fisca l years be g inn i n g aft er De c ember 15, 2019, in c lu d ing in teri m p e rio ds w i t hin t ho se fiscal years. Early adoption is permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. In October 2019, the FASB approved amendments to delay the effective date of the ASU to fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. The final ASU was issued in November 2019. As the Company is a smaller reporting company, the delay is applicable to the Company and the Company does not intend to early adopt the ASU at this time. The Company has established a CECL implementation team and developed a transition project plan. The Company has entered into an agreement with a software provider, historical data has been compiled and training on utilizing the software for the existing incurred loss model has been completed. The Company continues the collection of historical data and training is ongoing surrounding CECL implementation and methodologies, including the running of parallel calculations. This will facilitate the eventual implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In January 2017, the FASB issued ASU No. 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment . The ASU was issued to reduce the cost and complexity of the goodwill impairment test. To simplify the subsequent measurement of goodwill, step two of the goodwill impairment test was eliminated. Instead, a company will recognize an impairment of goodwill should the carrying value of a reporting unit exceed its fair value (i.e. step one). The ASU will be effective for the Company on January 1, 2020 and will be applied prospectively. The Company does not expect that adoption of the ASU will have a material impact on the Company's consolidated financial statements. In August 2018, the FASB issued ASU No. 2018-13, Fair Value Measurement (Topic 820), Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement . This guidance, which is a part of the FASB’s disclosure framework project to improve disclosure effectiveness, eliminates certain disclosure requirements for fair value measurements regarding the amount of and reasons for transfers between Level 1 and Level 2 of the fair value hierarchy, an entity’s policy for the timing of transfers between levels of the fair value hierarchy and an entity’s valuation processes for Level 3 fair value measurements. This guidance also adds new disclosure requirements for public entities regarding changes in unrealized gains and losses for the period included in OCI for recurring Level 3 fair value measurements of instruments held at the end of the reporting period, and the range and weighted average of significant unobservable inputs used to develop recurring and nonrecurring Level 3 fair value measurements, including how the weighted average is calculated. In addition, this guidance modifies certain requirements regarding the disclosure of transfers into and out of Level 3 of the fair value hierarchy, purchases and issuances of Level 3 assets and liabilities, and information about the measurement uncertainty of Level 3 fair value measurements as of the reporting date. This update will be effective for the Company on January 1, 2020. The Company does not expect that adoption of the ASU will have a material impact on the Company’s consolidated financial statements. |
Restrictions on Cash and Cash_2
Restrictions on Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of Cash and Cash Equivalents [Table Text Block] | The nature of the Company's business requires that it maintain amounts due from correspondent banks which, at times, may exceed federally insured limits. The balances in these accounts at December 31, were as follows: 2019 2018 (Dollars in thousands) Noninterest bearing accounts $ 365 $ 266 Federal Reserve Bank of Boston 45,638 32,077 FHLB of Boston 1,125 1,374 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | Investment securities as of the balance sheet dates consisted of the following: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,349 $ 19 $ (76 ) $ 6,292 Agency MBS 45,503 602 (81 ) 46,024 State and political subdivisions 26,489 515 (39 ) 26,965 Corporate 7,804 378 (70 ) 8,112 Total $ 86,145 $ 1,514 $ (266 ) $ 87,393 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (Dollars in thousands) Available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,528 $ 1 $ (208 ) $ 6,321 Agency MBS 36,851 84 (683 ) 36,252 State and political subdivisions 23,527 130 (486 ) 23,171 Corporate 7,792 18 (149 ) 7,661 Total $ 74,698 $ 233 $ (1,526 ) $ 73,405 |
Schedule of Unrealized Loss on Investments [Table Text Block] | Information pertaining to all investment securities with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows: December 31, 2019 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 4 $ 2,376 $ (22 ) 8 $ 2,772 $ (54 ) 12 $ 5,148 $ (76 ) Agency MBS 8 6,193 (38 ) 8 4,861 (43 ) 16 11,054 (81 ) State and political subdivisions 9 3,813 (38 ) 1 304 (1 ) 10 4,117 (39 ) Corporate — — — 3 1,430 (70 ) 3 1,430 (70 ) Total 21 $ 12,382 $ (98 ) 20 $ 9,367 $ (168 ) 41 $ 21,749 $ (266 ) December 31, 2018 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss Number of Securities Fair Value Gross Unrealized Loss (Dollars in thousands) Debt securities: U.S. Government- sponsored enterprises 2 $ 1,184 $ (11 ) 12 $ 4,854 $ (197 ) 14 $ 6,038 $ (208 ) Agency MBS 5 3,516 (21 ) 40 26,198 (662 ) 45 29,714 (683 ) State and political subdivisions 4 1,301 (16 ) 36 15,067 (470 ) 40 16,368 (486 ) Corporate 5 2,424 (12 ) 5 2,285 (137 ) 10 4,709 (149 ) Total 16 $ 8,425 $ (60 ) 93 $ 48,404 $ (1,466 ) 109 $ 56,829 $ (1,526 ) |
Schedule of Realized Gain (Loss) [Table Text Block] | The following table presents the proceeds, gross gains and gross losses from sales of AFS securities: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Proceeds $ 10,335 $ 1,060 Gross gains 62 10 Gross losses (37 ) — Net gains $ 25 $ 10 |
Investments Classified by Contractual Maturity Date [Table Text Block] | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2019 , were as follows: Amortized Cost Fair Value Available-for-sale (Dollars in thousands) Due in one year or less $ 680 $ 688 Due from one to five years 3,767 3,923 Due from five to ten years 16,655 17,019 Due after ten years 19,540 19,739 40,642 41,369 Agency MBS 45,503 46,024 Total $ 86,145 $ 87,393 |
Loans Held for Sale and Loan _2
Loans Held for Sale and Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Transfers and Servicing [Abstract] | |
Loans sold during the period [Table Text Block] | Loans sold consisted of the following during the years ended December 31: 2019 2018 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 157,952 $ 2,867 $ 116,710 $ 1,847 Commercial loans 315 28 — — Total $ 158,267 $ 2,895 $ 116,710 $ 1,847 |
Capitalization and amortization of loan servicing rights [Table Text Block] | The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Capitalization of servicing rights $ 862 $ 697 Amortization of servicing rights 812 720 Net capitalization (amortization) of servicing rights $ 50 $ (23 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | The composition of Net loans at December 31, was as follows: 2019 2018 (Dollars in thousands) Residential real estate $ 192,125 $ 187,320 Construction real estate 69,617 55,322 Commercial real estate 289,883 276,500 Commercial 47,699 47,228 Consumer 3,562 3,241 Municipal 67,358 72,850 Gross loans 670,244 642,461 Allowance for loan losses (6,122 ) (5,739 ) Net deferred loan costs 1,043 938 Net loans $ 665,165 $ 637,660 |
Financing Receivable, Past Due [Table Text Block] | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2019 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 187,022 $ 2,716 $ 1,304 $ 811 $ 272 $ 192,125 Construction real estate 68,731 470 19 368 29 69,617 Commercial real estate 286,795 940 150 — 1,998 289,883 Commercial 47,673 — 5 — 21 47,699 Consumer 3,532 21 6 — 3 3,562 Municipal 67,358 — — — — 67,358 Total $ 661,111 $ 4,147 $ 1,484 $ 1,179 $ 2,323 $ 670,244 December 31, 2018 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 183,624 $ 1,984 $ 696 $ 422 $ 594 $ 187,320 Construction real estate 52,807 1,451 1,023 — 41 55,322 Commercial real estate 273,778 1,703 153 718 148 276,500 Commercial 47,163 24 8 — 33 47,228 Consumer 3,215 21 5 — — 3,241 Municipal 72,789 61 — — — 72,850 Total $ 633,376 $ 5,244 $ 1,885 $ 1,140 $ 816 $ 642,461 |
Allowance for loan losses and_2
Allowance for loan losses and credit quality (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | Changes in the ALL, by class of loans, were as follows for the years ended : December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2018 $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 Provision (credit) for loan losses 150 157 305 239 7 (6 ) (77 ) 775 Recoveries of amounts charged off 5 — — 1 4 — — 10 1,523 774 3,238 594 34 76 285 6,524 Amounts charged off (131 ) — (60 ) (200 ) (11 ) — — (402 ) Balance, December 31, 2019 $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2017 $ 1,361 $ 488 $ 2,707 $ 395 $ 30 $ 64 $ 363 $ 5,408 Provision (credit) for loan losses 118 128 228 (38 ) (3 ) 18 (1 ) 450 Recoveries of amounts charged off 20 1 — — 17 — — 38 1,499 617 2,935 357 44 82 362 5,896 Amounts charged off (131 ) — (2 ) (3 ) (21 ) — — (157 ) Balance, December 31, 2018 $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 |
Allocation of Allowance for Loan Losses by Impairment Methodology [Table Text Block] | The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 39 $ — $ 149 $ 8 $ — $ — $ — $ 196 Collectively evaluated for impairment 1,353 774 3,029 386 23 76 285 5,926 Total allocated $ 1,392 $ 774 $ 3,178 $ 394 $ 23 $ 76 $ 285 $ 6,122 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated for impairment $ 47 $ — $ 9 $ 10 $ — $ — $ — $ 66 Collectively evaluated for impairment 1,321 617 2,924 344 23 82 362 5,673 Total allocated $ 1,368 $ 617 $ 2,933 $ 354 $ 23 $ 82 $ 362 $ 5,739 |
Allocation of Investment in Loans by Impairment Methodology [Table Text Block] | The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows: December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,515 $ 223 $ 3,204 $ 299 $ — $ — $ 5,241 Collectively evaluated for impairment 190,610 69,394 286,679 47,400 3,562 67,358 665,003 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated for impairment $ 1,678 $ 119 $ 2,276 $ 352 $ — $ — $ 4,425 Collectively evaluated for impairment 185,642 55,203 274,224 46,876 3,241 72,850 638,036 Total $ 187,320 $ 55,322 $ 276,500 $ 47,228 $ 3,241 $ 72,850 $ 642,461 |
Financing Receivable Credit Quality Indicators [Table Text Block] | The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates: December 31, 2019 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 174,798 $ 47,326 $ 168,654 $ 35,625 $ 3,499 $ 67,358 $ 497,260 Satisfactory/Monitor 14,520 21,819 117,004 10,974 57 — 164,374 Substandard 2,807 472 4,225 1,100 6 — 8,610 Total $ 192,125 $ 69,617 $ 289,883 $ 47,699 $ 3,562 $ 67,358 $ 670,244 December 31, 2018 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 170,416 $ 41,141 $ 174,802 $ 34,303 $ 3,209 $ 72,850 $ 496,721 Satisfactory/Monitor 14,008 14,053 98,327 12,150 31 — 138,569 Substandard 2,896 128 3,371 775 1 — 7,171 Total $ 187,320 $ 55,322 $ 276,500 $ 47,228 $ 3,241 $ 72,850 $ 642,461 |
Impaired Financing Receivables [Table Text Block] | The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2019 and 2018 : December 31, 2019 For The Year Ended December 31, 2019 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 218 $ 228 $ 39 Commercial real estate 1,762 1,783 149 Commercial 11 12 8 With an allowance recorded 1,991 2,023 196 Residential real estate 1,297 1,832 — Construction real estate 223 241 — Commercial real estate 1,442 1,539 — Commercial 288 290 — With no allowance recorded 3,250 3,902 — Residential real estate 1,515 2,060 39 $ 1,625 $ 149 Construction real estate 223 241 — 159 4 Commercial real estate 3,204 3,322 149 2,382 110 Commercial 299 302 8 322 23 Total $ 5,241 $ 5,925 $ 196 $ 4,488 $ 286 December 31, 2018 For The Year Ended December 31, 2018 Recorded Investment (1) Principal Balance (1) Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 228 $ 238 $ 47 Commercial real estate 193 193 9 Commercial 12 13 10 With an allowance recorded 433 444 66 Residential real estate 1,450 2,039 — Construction real estate 119 135 — Commercial real estate 2,083 2,174 — Commercial 340 340 — With no allowance recorded 3,992 4,688 — Residential real estate 1,678 2,277 47 $ 1,730 $ 65 Construction real estate 119 135 — 88 4 Commercial real estate 2,276 2,367 9 1,699 77 Commercial 352 353 10 367 29 Total $ 4,425 $ 5,132 $ 66 $ 3,884 $ 175 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2019 and 2018 totaling $587 thousand and $641 thousand , respectively. |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2019 December 31, 2018 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 25 $ 1,515 27 $ 1,678 Construction real estate 2 100 2 119 Commercial real estate 8 966 9 1,172 Commercial 5 290 4 340 Total 40 $ 2,871 42 $ 3,309 |
New Troubled Debt Restructurings on Financing Receivables [Table Text Block] | The following table provides new TDR activity by class of loan for the years ended December 31, 2019 and 2018 : New TDRs During the New TDRs During the Year Ended December 31, 2019 Year Ended December 31, 2018 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 1 $ 77 $ 79 3 $ 190 $ 193 Construction real estate — — — 1 44 44 Commercial real estate — — — 1 204 204 Commercial 1 15 15 2 31 31 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Class of Premises and Equipment [Table Text Block] | The major classes of premises and equipment and accumulated depreciation at December 31 , were as follows: 2019 2018 (Dollars in thousands) Land and land improvements $ 3,922 $ 3,260 Building and improvements 18,490 14,760 Furniture and equipment 10,402 9,053 Construction in progress and deposits on equipment 91 809 32,905 27,882 Less accumulated depreciation (11,982 ) (11,809 ) $ 20,923 $ 16,073 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Lease Maturity [Table Text Block] | Total estimated rental commitments for operating leases were as follows as of December 31, 2019 : (Dollars in thousands) 2020 $ 183 2021 171 2022 125 2023 114 2024 110 Thereafter 2,332 Total $ 3,035 |
Lease Liability Reconciliation [Table Text Block] | A reconciliation of the operating lease undiscounted cash flows in the maturity analysis above and the operating lease liability recognized in the consolidated balance sheet is shown below: December 31, 2019 (Dollars in thousands) Undiscounted cash flows $ 3,035 Discount effect of cash flows (1,141 ) Lease liabilities $ 1,894 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Core Deposit Intangible Amortization [Table Text Block] | As of December 31, 2019 , the remaining amortization expense related to the core deposit intangible, absent any future impairment, is expected to be as follows: (Dollars in thousands) 2020 $ 171 2021 71 Total $ 242 |
Investment in Real Estate Lim_2
Investment in Real Estate Limited Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investment in Real Estate Limited Partnerships [Abstract] | |
Investment in Real Estate Limited Partnerships Income Tax Impact [Table Text Block] | The following table presents the net impact on the Provision for income taxes related to investments carried at equity: For The Years Ended December 31, 2019 2018 (Dollars in thousands) Provision for undistributed net losses of limited partnership investments $ 745 $ 591 Federal income tax credits related to limited partnership investments (803 ) (656 ) Net effect on Provision for income taxes $ (58 ) $ (65 ) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Deposits [Abstract] | |
Interest Bearing Deposits [Table Text Block] | The following is a summary of interest bearing deposits at December 31 : 2019 2018 (Dollars in thousands) Interest bearing checking accounts $ 173,406 $ 157,847 Savings and money market accounts 285,534 286,875 Time deposits, $100,000 and over 73,048 64,474 Other time deposits 75,605 64,603 $ 607,593 $ 573,799 |
Time Deposits by Maturity [Table Text Block] | The following is a summary of time deposits by maturity at December 31, 2019 : (Dollars in thousands) 2020 $ 105,832 2021 28,365 2022 8,136 2023 3,340 2024 2,980 $ 148,653 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Maturities of Long-term Debt [Table Text Block] | The contractual payments due for FHLB option advance borrowings, as of December 31, 2019 , were as follows: (Dollars in thousands) 2020 $ 47,000 2021 164 $ 47,164 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Components of the provision for income taxes [Table Text Block] | The components of the provision for income taxes for the years ended December 31 , were as follows: 2019 2018 (Dollars in thousands) Current federal tax provision $ 1,351 $ 1,695 Current state tax provision 41 86 Deferred tax provision (benefit) 438 (508 ) $ 1,830 $ 1,273 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | The total provision for income taxes differs from the amounts computed at the statutory federal income tax rate of 21% primarily due to the following for the years ended December 31 : 2019 2018 (Dollars in thousands) Computed “expected” tax expense $ 2,620 $ 1,752 State taxes 32 68 Tax exempt interest (513 ) (413 ) Increase in cash surrender value of COLI (59 ) (103 ) Tax credits (857 ) (684 ) Equity in losses of limited partnerships 640 528 Non-deductible expenses 46 36 True-up adjustment for effect of enacted tax law changes — 32 Other (79 ) 57 $ 1,830 $ 1,273 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Listed below are the significant components of the net deferred tax (liability) asset at December 31 : 2019 2018 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,329 $ 1,244 Deferred compensation 227 205 Core deposit intangible 106 94 Unrealized loss on investment securities available-for-sale — 272 Other 69 38 Total deferred tax asset 1,731 1,853 Components of the deferred tax liability Depreciation (1,402 ) (913 ) Mortgage servicing rights (371 ) (360 ) Limited partnership investments (50 ) (16 ) Unrealized gain on investment securities available-for-sale (262 ) — Goodwill (276 ) (244 ) Prepaid expenses (136 ) (114 ) Total deferred tax liability (2,497 ) (1,647 ) Net deferred tax (liability) asset $ (766 ) $ 206 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Schedule of Costs of Retirement Plans [Table Text Block] | The following table summarizes employer contributions for the years ended December 31, 2019 and 2018 : 2019 2018 (Dollars in thousands) Employer matching $ 270 $ 236 Profit sharing 280 279 Safe harbor 336 304 Total $ 886 $ 819 |
Schedule of Defined Benefit Plans Disclosures [Table Text Block] | The following table sets forth the Plan's obligations and funded status at December 31, 2018 : (Dollars in thousands) Change in projected benefit obligation Projected benefit obligation at beginning of year $ 20,832 Interest cost 599 Settlement gain (326 ) Actuarial gain (2,667 ) Benefits paid (712 ) Settlement payments (17,726 ) Projected benefit obligation at end of year — Change in fair value of plan assets Fair value of plan assets at beginning of year 18,499 Actual loss on plan assets (717 ) Administrative expenses (194 ) Employer contributions 850 Benefits paid (712 ) Settlement payments (17,726 ) Fair value of plan assets at end of year — Net liability for pension benefits $ — |
Schedule of Net Benefit Costs [Table Text Block] | Net periodic pension cost for 2018 consisted of the following components: (Dollars in thousands) Interest cost on projected benefit obligation $ 599 Expected return on plan assets (531 ) Amortization of net actuarial loss 502 Net periodic pension cost $ 570 Recognized settlement loss 4,061 Total net periodic pension cost $ 4,631 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Share-based Compensation, Summary of RSUs [Table Text Block] | The following table presents a summary of RSUs from the 2017, 2018, and 2019 Award Plan Summaries as of December 31, 2019: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2017 Award 3,225 $ 52.95 433 2018 Award 3,734 47.75 2,120 2019 Award 10,143 36.26 10,143 Total 17,102 12,696 |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | The following summarizes the stock option activity under the 2014 Equity Plan for the year ended December 31, 2019 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2019 4,500 $ 24.00 Exercised — — Forfeited/expired — — Outstanding at December 31, 2019 4,500 $ 24.00 1.96 $ 55 Exercisable at December 31, 2019 4,500 $ 24.00 1.96 $ 55 The following summarizes the stock option activity under the 2008 ISO Plan for the year ended December 31, 2019 : Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Period End Aggregate Intrinsic Value (Dollars in thousands, except per share data) Outstanding at January 1, 2019 3,000 $ 22.00 Exercised (2,000 ) $ 22.00 Forfeited/expired — — Outstanding at December 31, 2019 1,000 $ 22.00 0.96 $ 14 Exercisable at December 31, 2019 1,000 $ 22.00 0.96 $ 14 |
Schedule of Cash Proceeds Received from Share-based Payment Awards [Table Text Block] | The following summarizes information regarding the proceeds received by the Company from the exercise of stock options during 2019 : 2019 (Dollars in thousands, except per share data) Proceeds received $ 44 Number of shares exercised 2,000 Weighted average price per share $ 22.00 Total intrinsic value of options exercised $ 30 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic, by Common Class, Including Two Class Method [Table Text Block] | The following table presents the reconciliation of the calculation of basic earnings per share for the years ended December 31, 2019 and 2018 : 2019 2018 (Dollars in thousands, except per share data) Net income $ 10,648 $ 7,072 Weighted average common shares outstanding 4,468,336 4,465,675 Basic earnings per share $ 2.38 $ 1.58 |
Financial Instruments With Of_2
Financial Instruments With Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Contractual Amount of Financial Instruments with Credit Risk [Table Text Block] | The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31 : Contract or Notional Amount 2019 2018 (Dollars in thousands) Commitments to originate loans $ 35,689 $ 22,673 Unused lines of credit 103,623 109,457 Standby and commercial letters of credit 2,308 2,308 Credit card arrangements 311 259 MPF credit enhancement obligation, net (See Note 19) 687 684 Commitment for purchase of Jericho branch property — 1,220 Commitment for construction of Williston branch — 3,208 Commitment to purchase investment in a real estate limited partnership 3,000 — Total $ 145,618 $ 139,809 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Assets measured at fair value on a recurring basis at December 31, 2019 and 2018 , segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) December 31, 2019: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,292 $ — $ 6,292 $ — Agency MBS 46,024 — 46,024 — State and political subdivisions 26,965 — 26,965 — Corporate 8,112 — 8,112 — Total debt securities $ 87,393 $ — $ 87,393 $ — Other investments: Mutual funds $ 690 $ 690 $ — $ — December 31, 2018: Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 6,321 $ — $ 6,321 $ — Agency MBS 36,252 — 36,252 — State and political subdivisions 23,171 — 23,171 — Corporate 7,661 — 7,661 — Total debt securities $ 73,405 $ — $ 73,405 $ — Other investments: Mutual funds $ 556 $ 556 $ — $ — |
Fair Value, by Balance Sheet Grouping [Table Text Block] | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows: December 31, 2019 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 51,134 $ 51,134 $ 51,134 $ — $ — Interest bearing deposits in banks 6,565 6,671 — 6,671 — Investment securities 88,083 88,083 690 87,393 — Loans held for sale 7,442 7,587 — 7,587 — Loans, net Residential real estate 191,032 192,955 — — 192,955 Construction real estate 68,951 68,381 — — 68,381 Commercial real estate 286,871 288,931 — — 288,931 Commercial 47,379 45,872 — — 45,872 Consumer 3,545 3,483 — — 3,483 Municipal 67,387 67,103 — — 67,103 Accrued interest receivable 2,702 2,702 — 435 2,267 Nonmarketable equity securities 2,607 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 136,434 136,434 136,434 — — Interest bearing 458,940 458,940 458,940 — — Time 148,653 148,542 — 148,542 — Borrowed funds Short-term 40,000 40,000 40,000 — — Long-term 7,164 7,416 — 7,416 — Accrued interest payable 673 673 — 673 — December 31, 2018 Fair Value Measurement Carrying Amount Estimated Fair Value Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (Dollars in thousands) Financial assets Cash and cash equivalents $ 37,289 $ 37,289 $ 37,289 $ — $ — Interest bearing deposits in banks 9,300 9,177 — 9,177 — Investment securities 73,961 73,961 556 73,405 — Loans held for sale 2,899 2,954 — 2,954 — Loans, net Residential real estate 186,225 183,836 — — 183,836 Construction real estate 54,786 54,694 — — 54,694 Commercial real estate 273,609 272,187 — — 272,187 Commercial 46,943 45,713 — — 45,713 Consumer 3,223 3,193 — — 3,193 Municipal 72,874 72,689 — — 72,689 Accrued interest receivable 2,812 2,812 — 423 2,389 Nonmarketable equity securities 2,376 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 132,971 132,971 132,971 — — Interest bearing 444,722 444,722 444,722 — — Time 129,077 127,554 — 127,554 — Borrowed funds Short-term 370 370 370 — — Long-term 27,451 27,374 — 27,374 — Accrued interest payable 203 203 — 203 — |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2019 2018 (Dollars in thousands) Balance, January 1, $ 749 $ 961 New loans and advances on lines 1,045 827 Repayments (690 ) (1,039 ) Other, net 196 — Balance, December 31, $ 1,300 $ 749 Balance available on lines of credit or loan commitments $ 1,153 $ 693 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Union's and the Company's regulatory capital amounts and ratios as of the balance sheet dates are presented in the following tables: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2019 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 74,510 13.02 % $ 45,782 8.00 % N/A N/A Tier 1 capital to risk weighted assets 68,388 11.95 % 34,337 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 68,388 11.95 % 25,753 4.50 % N/A N/A Tier 1 capital to average assets 68,388 8.09 % 33,814 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 74,167 12.98 % $ 45,712 8.00 % $ 57,139 10.00 % Tier 1 capital to risk weighted assets 68,045 11.91 % 34,280 6.00 % 45,706 8.00 % Common Equity Tier 1 to risk weighted assets 68,045 11.91 % 25,710 4.50 % 37,136 6.50 % Tier 1 capital to average assets 68,045 8.06 % 33,769 4.00 % 42,212 5.00 % Actual For Capital Adequacy Purposes To be Well Capitalized Under Prompt Corrective Action Provisions As of December 31, 2018 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 68,616 12.86 % $ 42,685 8.00 % N/A N/A Tier 1 capital to risk weighted assets 62,877 11.78 % 32,026 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 62,877 11.78 % 24,019 4.50 % N/A N/A Tier 1 capital to average assets 62,877 8.03 % 31,321 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 68,305 12.82 % $ 42,624 8.00 % $ 53,280 10.00 % Tier 1 capital to risk weighted assets 62,566 11.75 % 31,949 6.00 % 42,598 8.00 % Common Equity Tier 1 to risk weighted assets 62,566 11.75 % 23,961 4.50 % 34,611 6.50 % Tier 1 capital to average assets 62,566 8.00 % 31,283 4.00 % 39,104 5.00 % |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated OCI [Table Text Block] | The components of Accumulated OCI, net of tax, at December 31 were: 2019 2018 (Dollars in thousands) Net unrealized gain (loss) on investment securities available-for-sale $ 986 $ (1,023 ) |
Schedule of Comprehensive Income (Loss) [Table Text Block] | The following table discloses the tax effects allocated to each component of OCI for the years ended : December 31, 2019 December 31, 2018 Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount Before-Tax Amount Tax (Expense) or Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities available-for-sale: Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale $ 2,568 $ (539 ) $ 2,029 $ (905 ) $ 191 $ (714 ) Reclassification adjustment for net gains on investment securities available-for-sale realized in net income (25 ) 5 (20 ) (10 ) 2 (8 ) Total 2,543 (534 ) 2,009 (915 ) 193 (722 ) Defined benefit pension plan: Net actuarial gain arising during the year — — — 1,546 (325 ) 1,221 Reclassification adjustment for amortization of net actuarial loss realized in net income — — — 502 (105 ) 397 Reclassification adjustment for recognized settlement loss — — — 4,022 (845 ) 3,177 Total — — — 6,070 (1,275 ) 4,795 Total other comprehensive income $ 2,543 $ (534 ) $ 2,009 $ 5,155 $ (1,082 ) $ 4,073 |
Schedule of Comprehensive Income Reclassification Adjustments [Table Text Block] | The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31 : Reclassification Adjustment Description 2019 2018 Affected Line Item in Consolidated Statements of Income (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities available-for-sale $ (25 ) $ (10 ) Net gains on sales of investment securities available-for-sale Tax benefit 5 2 Provision for income taxes (20 ) (8 ) Net income Defined benefit pension plan: Net actuarial loss — 502 Pension expense Recognized settlement loss — 4,022 Pension expense — 4,524 Income before provision for income taxes Tax expense — (950 ) Provision for income taxes — 3,574 Net income Total reclassifications $ (20 ) $ 3,566 Net income |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2019 and 2018 2019 2018 (Dollars in thousands) ASSETS Cash $ 46 $ 48 Other investments 27 67 Investment in subsidiary - Union 71,500 64,180 Other assets 712 767 Total assets $ 72,285 $ 65,062 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Other liabilities $ 442 $ 571 Total liabilities 442 571 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,948,245 shares 9,897 9,888 Additional paid-in capital 1,124 894 Retained earnings 64,019 58,911 Treasury stock at cost; 476,268 shares at December 31, 2019 and 477,011 shares (4,183 ) (4,179 ) Accumulated other comprehensive income (loss) 986 (1,023 ) Total stockholders' equity 71,843 64,491 Total liabilities and stockholders' equity $ 72,285 $ 65,062 |
Schedule of Condensed Income Statement [Table Text Block] | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2019 and 2018 2019 2018 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 5,925 $ 5,625 Other income 24 254 Total revenues 5,949 5,879 Expenses Interest 16 18 Administrative and other 536 419 Total expenses 552 437 Income before applicable income tax benefit and equity in undistributed net income of subsidiary 5,397 5,442 Applicable income tax benefit (113 ) (89 ) Income before equity in undistributed net income of subsidiary 5,510 5,531 Equity in undistributed net income - Union 5,138 1,541 Net income $ 10,648 $ 7,072 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2019 and 2018 2019 2018 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 10,648 $ 7,072 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (5,138 ) (1,541 ) Decrease (increase) in other assets 55 (205 ) Decrease in other liabilities (137 ) (233 ) Net cash provided by operating activities 5,428 5,093 CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from sale of other investments 47 44 Purchases of other investments (7 ) (12 ) Proceeds of Company-owned life insurance death benefit — 281 Net cash provided by investing activities 40 313 CASH FLOWS FROM FINANCING ACTIVITIES Dividends paid (5,501 ) (5,328 ) Issuance of common stock 44 — Purchase of treasury stock (13 ) (107 ) Net cash used in financing activities (5,470 ) (5,435 ) Net decrease in cash (2 ) (29 ) Cash, beginning of year 48 77 Cash, end of year $ 46 $ 48 Supplemental Disclosures of Cash Flow Information Interest paid $ 16 $ 18 Dividends paid on Common Stock: Dividends declared $ 5,540 $ 5,358 Dividends reinvested (39 ) (30 ) $ 5,501 $ 5,328 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | A summary of consolidated financial data for each of the four quarters of 2019 and 2018 is presented below: Quarters in 2019 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 8,654 $ 8,923 $ 9,131 $ 9,294 Interest expense 1,230 1,401 1,497 1,488 Net interest income 7,424 7,522 7,634 7,806 Provision for loan losses 50 150 150 425 Noninterest income 2,170 2,452 2,732 2,969 Noninterest expenses 6,513 6,807 7,001 7,135 Net income 2,621 2,530 2,738 2,759 Earnings per common share $ 0.59 $ 0.56 $ 0.62 $ 0.61 Quarters in 2018 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 7,571 $ 7,943 $ 8,095 $ 8,571 Interest expense 647 731 1,086 1,117 Net interest income 6,924 7,212 7,009 7,454 Provision for loan losses — 150 150 150 Noninterest income 2,471 2,152 2,452 2,398 Noninterest expenses 6,124 6,306 6,525 10,322 Net income 2,747 2,450 2,311 (436 ) Earnings per common share $ 0.62 $ 0.54 $ 0.52 $ (0.10 ) |
Other Noninterest Income and _2
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Income and Other Noninterest Expenses [Table Text Block] | The components of other noninterest income and other noninterest expenses for the years ended December 31, 2019 and 2018 were as follows: 2019 2018 Income (Dollars in thousands) Income from life insurance $ 281 $ 488 Other income 322 226 Total other income $ 603 $ 714 Expenses ATM network and debit card expense $ 790 $ 690 Advertising and public relations 555 456 Vermont franchise tax 678 620 Professional fees 701 625 Director and advisory board fees 502 450 Other expenses 3,934 3,823 Total other expenses $ 7,160 $ 6,664 |
Significant Accounting Polici_3
Significant Accounting Policies Narrative Data (Details) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 |
Significant Accounting Policies [Line Items] | ||
Other real estate owned | $ 0 | $ 0 |
Federal Home Loan Bank stock | $ 2,500,000 | $ 2,300,000 |
2014 Equity Plan [Member] | ||
Significant Accounting Policies [Line Items] | ||
Shares authorized for equity awards | 50,000 | |
2008 ISO Plan [Member] | ||
Significant Accounting Policies [Line Items] | ||
Unused shares from 2008 ISO Plan | 25,000 |
Restrictions on Cash and Cash_3
Restrictions on Cash and Cash Equivalents Schedule (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Noninterest Bearing Accounts [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured Cash Accounts | $ 365 | $ 266 |
Federal Reserve Bank of Boston [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured Cash Accounts | 45,638 | 32,077 |
FHLB of Boston [Member] | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured Cash Accounts | $ 1,125 | $ 1,374 |
Restrictions on Cash and Cash_4
Restrictions on Cash and Cash Equivalents Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Cash and Cash Equivalents [Line Items] | ||
Federal reserve contracted clearing balance | $ 0 | $ 0 |
Federal reserve balance requirement | $ 1,800 | $ 1,000 |
Interest Bearing Deposits In _2
Interest Bearing Deposits In Banks Narrative Data (Details) $ in Millions | Dec. 31, 2019USD ($)Rate |
Cash and Cash Equivalents [Line Items] | |
Interest bearing deposits in banks, interest rate, ranging from | 1.75% |
Interest bearing deposits in banks, interest rate, ranging to | 3.55% |
Interest bearing deposits in banks scheduled to mature in 2020 | $ | $ 1.7 |
Available-for-sale securities (
Available-for-sale securities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale | ||
Amortized Cost | $ 86,145 | $ 74,698 |
Gross Unrealized Gains | 1,514 | 233 |
Gross Unrealized Losses | (266) | (1,526) |
Fair Value | 87,393 | 73,405 |
U.S. Government-sponsored enterprises [Member] | ||
Available-for-sale | ||
Amortized Cost | 6,349 | 6,528 |
Gross Unrealized Gains | 19 | 1 |
Gross Unrealized Losses | (76) | (208) |
Fair Value | 6,292 | 6,321 |
Agency MBS [Member] | ||
Available-for-sale | ||
Amortized Cost | 45,503 | 36,851 |
Gross Unrealized Gains | 602 | 84 |
Gross Unrealized Losses | (81) | (683) |
Fair Value | 46,024 | 36,252 |
State and political subdivisions [Member] | ||
Available-for-sale | ||
Amortized Cost | 26,489 | 23,527 |
Gross Unrealized Gains | 515 | 130 |
Gross Unrealized Losses | (39) | (486) |
Fair Value | 26,965 | 23,171 |
Corporate [Member] | ||
Available-for-sale | ||
Amortized Cost | 7,804 | 7,792 |
Gross Unrealized Gains | 378 | 18 |
Gross Unrealized Losses | (70) | (149) |
Fair Value | $ 8,112 | $ 7,661 |
Investment Securities Schedule
Investment Securities Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Dec. 31, 2019USD ($)Securities | Dec. 31, 2018USD ($)Securities |
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 21 | 16 |
Less than 12 Months, Fair Value | $ 12,382 | $ 8,425 |
Less than 12 Months, Gross Unrealized Losses | $ (98) | $ (60) |
12 Months and over, Number of Securities | Securities | 20 | 93 |
12 Months and Over, Fair Value | $ 9,367 | $ 48,404 |
12 Months and Over, Gross Unrealized Losses | $ (168) | $ (1,466) |
Total, Number of Securities | Securities | 41 | 109 |
Total, Fair Value | $ 21,749 | $ 56,829 |
Total, Gross Unrealized Losses | $ (266) | $ (1,526) |
U.S. Government-sponsored enterprises [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 4 | 2 |
Less than 12 Months, Fair Value | $ 2,376 | $ 1,184 |
Less than 12 Months, Gross Unrealized Losses | $ (22) | $ (11) |
12 Months and over, Number of Securities | Securities | 8 | 12 |
12 Months and Over, Fair Value | $ 2,772 | $ 4,854 |
12 Months and Over, Gross Unrealized Losses | $ (54) | $ (197) |
Total, Number of Securities | Securities | 12 | 14 |
Total, Fair Value | $ 5,148 | $ 6,038 |
Total, Gross Unrealized Losses | $ (76) | $ (208) |
Agency MBS [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 8 | 5 |
Less than 12 Months, Fair Value | $ 6,193 | $ 3,516 |
Less than 12 Months, Gross Unrealized Losses | $ (38) | $ (21) |
12 Months and over, Number of Securities | Securities | 8 | 40 |
12 Months and Over, Fair Value | $ 4,861 | $ 26,198 |
12 Months and Over, Gross Unrealized Losses | $ (43) | $ (662) |
Total, Number of Securities | Securities | 16 | 45 |
Total, Fair Value | $ 11,054 | $ 29,714 |
Total, Gross Unrealized Losses | $ (81) | $ (683) |
State and political subdivisions [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 9 | 4 |
Less than 12 Months, Fair Value | $ 3,813 | $ 1,301 |
Less than 12 Months, Gross Unrealized Losses | $ (38) | $ (16) |
12 Months and over, Number of Securities | Securities | 1 | 36 |
12 Months and Over, Fair Value | $ 304 | $ 15,067 |
12 Months and Over, Gross Unrealized Losses | $ (1) | $ (470) |
Total, Number of Securities | Securities | 10 | 40 |
Total, Fair Value | $ 4,117 | $ 16,368 |
Total, Gross Unrealized Losses | $ (39) | $ (486) |
Corporate [Member] | ||
Investment Securities | ||
Less than 12 Months, Number of Securities | Securities | 0 | 5 |
Less than 12 Months, Fair Value | $ 0 | $ 2,424 |
Less than 12 Months, Gross Unrealized Losses | $ 0 | $ (12) |
12 Months and over, Number of Securities | Securities | 3 | 5 |
12 Months and Over, Fair Value | $ 1,430 | $ 2,285 |
12 Months and Over, Gross Unrealized Losses | $ (70) | $ (137) |
Total, Number of Securities | Securities | 3 | 10 |
Total, Fair Value | $ 1,430 | $ 4,709 |
Total, Gross Unrealized Losses | $ (70) | $ (149) |
Investment Securities Schedul_2
Investment Securities Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Gain (Loss) on Securities [Line Items] | ||
Proceeds | $ 10,335 | $ 1,060 |
Gross gains | 62 | 10 |
Gross losses | (37) | 0 |
Net gains | $ 25 | $ 10 |
Investment Securities Debt Secu
Investment Securities Debt Securities by Contactual Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-sale | ||
Due in one year or less, Amortized Cost | $ 680 | |
Due from one to five years, Amortized Cost | 3,767 | |
Due from five to ten years, Amortized Cost | 16,655 | |
Due after ten years, Amortized Cost | 19,540 | |
Debt securities with single maturity date, Amortized Cost | 40,642 | |
Agency MBS, Amortized Cost | 45,503 | |
Total debt securities available-for-sale, Amortized Cost | 86,145 | $ 74,698 |
Due in one year or less, Fair Value | 688 | |
Due from one to five years, Fair Value | 3,923 | |
Due from five to ten years, Fair Value | 17,019 | |
Due after ten years, Fair Value | 19,739 | |
Debt securities with single maturity date, Fair Value | 41,369 | |
Agency MBS, Fair Value | 46,024 | |
Total debt securities available-for-sale, Fair Value | $ 87,393 | $ 73,405 |
Investment Securities Narrative
Investment Securities Narrative Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Investment Securities | ||
Investment securities HTM | $ 0 | $ 0 |
Investment securities pledged as collateral | 0 | $ 2,500,000 |
Other than temporary declines in available-for-sale securities | $ 0 |
Loans Held for Sale and Loan _3
Loans Held for Sale and Loan Servicing Loans sold during the period (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans sold | $ 158,267 | $ 116,710 |
Net gains on sale | 2,895 | 1,847 |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans sold | 157,952 | 116,710 |
Net gains on sale | 2,867 | 1,847 |
Commercial [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans sold | 315 | 0 |
Net gains on sale | $ 28 | $ 0 |
Loans Held for Sale and Loan _4
Loans Held for Sale and Loan Servicing Capitalization and amortization of loan servicing costs (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Servicing Asset at Amortized Cost [Line Items] | ||
Capitalization of servicing rights | $ 862 | $ 697 |
Amortization of servicing rights | 812 | 720 |
Net capitalization (amortization) of servicing rights | $ 50 | $ (23) |
Loans Held for Sale and Loan _5
Loans Held for Sale and Loan Servicing Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance of loans serviced for others | $ 579,900 | $ 534,200 |
Loan servicing rights, unamortized balance | 1,700 | 1,700 |
Loan servicing rights, valuation allowance | 0 | 0 |
Credit Enhancement Obligation [Member] | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual risk sharing commitments, maximum liability | $ 705 | $ 702 |
Loans Composition of Net Loans
Loans Composition of Net Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 670,244 | $ 642,461 | |
Allowance for loan losses | (6,122) | (5,739) | $ (5,408) |
Net deferred loan costs | 1,043 | 938 | |
Net loans | 665,165 | 637,660 | |
Residential Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 192,125 | 187,320 | |
Allowance for loan losses | (1,392) | (1,368) | (1,361) |
Construction Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 69,617 | 55,322 | |
Allowance for loan losses | (774) | (617) | (488) |
Commercial Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 289,883 | 276,500 | |
Allowance for loan losses | (3,178) | (2,933) | (2,707) |
Commercial [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 47,699 | 47,228 | |
Allowance for loan losses | (394) | (354) | (395) |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 3,562 | 3,241 | |
Allowance for loan losses | (23) | (23) | (30) |
Municipal [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 67,358 | 72,850 | |
Allowance for loan losses | $ (76) | $ (82) | $ (64) |
Loans Past Due Loans (Details)
Loans Past Due Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | $ 661,111 | $ 633,376 |
Loans, Nonaccrual | 2,323 | 816 |
Loans | 670,244 | 642,461 |
30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 4,147 | 5,244 |
60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 1,484 | 1,885 |
90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 1,179 | 1,140 |
Residential Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 187,022 | 183,624 |
Loans, Nonaccrual | 272 | 594 |
Loans | 192,125 | 187,320 |
Residential Real Estate [Member] | 30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 2,716 | 1,984 |
Residential Real Estate [Member] | 60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 1,304 | 696 |
Residential Real Estate [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 811 | 422 |
Construction Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 68,731 | 52,807 |
Loans, Nonaccrual | 29 | 41 |
Loans | 69,617 | 55,322 |
Construction Real Estate [Member] | 30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 470 | 1,451 |
Construction Real Estate [Member] | 60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 19 | 1,023 |
Construction Real Estate [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 368 | 0 |
Commercial Real Estate [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 286,795 | 273,778 |
Loans, Nonaccrual | 1,998 | 148 |
Loans | 289,883 | 276,500 |
Commercial Real Estate [Member] | 30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 940 | 1,703 |
Commercial Real Estate [Member] | 60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 150 | 153 |
Commercial Real Estate [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 718 |
Commercial [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 47,673 | 47,163 |
Loans, Nonaccrual | 21 | 33 |
Loans | 47,699 | 47,228 |
Commercial [Member] | 30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 24 |
Commercial [Member] | 60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 5 | 8 |
Commercial [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 3,532 | 3,215 |
Loans, Nonaccrual | 3 | 0 |
Loans | 3,562 | 3,241 |
Consumer [Member] | 30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 21 | 21 |
Consumer [Member] | 60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 6 | 5 |
Consumer [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Current | 67,358 | 72,789 |
Loans, Nonaccrual | 0 | 0 |
Loans | 67,358 | 72,850 |
Municipal [Member] | 30-59 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 61 |
Municipal [Member] | 60-89 Days [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | 0 | 0 |
Municipal [Member] | 90 Days and over and accruing [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Loans, Past Due | $ 0 | $ 0 |
Loans Narrative Data (Details)
Loans Narrative Data (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loans | Dec. 31, 2018USD ($)loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans pledged as collateral | $ 207,700 | $ 167,700 |
Number of residential real estate loans in process of foreclosure | loans | 2 | 3 |
Recorded investment in residential real estate loans in process of foreclosure | $ 64 | $ 255 |
Number of commercial real estate loans in process of foreclosure | loans | 1 | |
Recorded investment in commercial real estate loans in process of foreclosure | $ 146 | |
Interest on Nonaccrual Loans not recognized | $ 271 | $ 338 |
Allowance for loan losses and_3
Allowance for loan losses and credit quality Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | $ 5,739 | $ 5,408 | $ 5,739 | $ 5,408 | ||||||
Provision (credit) for loan losses | $ 425 | $ 150 | $ 150 | 50 | $ 150 | $ 150 | $ 150 | 0 | 775 | 450 |
Recoveries of amounts charged off | 10 | 38 | ||||||||
Balance, before amounts charged off | 6,524 | 5,896 | ||||||||
Amounts charged off | (402) | (157) | ||||||||
Balance, end of year | 6,122 | 5,739 | 6,122 | 5,739 | ||||||
Residential Real Estate [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | 1,368 | 1,361 | 1,368 | 1,361 | ||||||
Provision (credit) for loan losses | 150 | 118 | ||||||||
Recoveries of amounts charged off | 5 | 20 | ||||||||
Balance, before amounts charged off | 1,523 | 1,499 | ||||||||
Amounts charged off | (131) | (131) | ||||||||
Balance, end of year | 1,392 | 1,368 | 1,392 | 1,368 | ||||||
Construction Real Estate [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | 617 | 488 | 617 | 488 | ||||||
Provision (credit) for loan losses | 157 | 128 | ||||||||
Recoveries of amounts charged off | 0 | 1 | ||||||||
Balance, before amounts charged off | 774 | 617 | ||||||||
Amounts charged off | 0 | 0 | ||||||||
Balance, end of year | 774 | 617 | 774 | 617 | ||||||
Commercial Real Estate [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | 2,933 | 2,707 | 2,933 | 2,707 | ||||||
Provision (credit) for loan losses | 305 | 228 | ||||||||
Recoveries of amounts charged off | 0 | 0 | ||||||||
Balance, before amounts charged off | 3,238 | 2,935 | ||||||||
Amounts charged off | (60) | (2) | ||||||||
Balance, end of year | 3,178 | 2,933 | 3,178 | 2,933 | ||||||
Commercial [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | 354 | 395 | 354 | 395 | ||||||
Provision (credit) for loan losses | 239 | (38) | ||||||||
Recoveries of amounts charged off | 1 | 0 | ||||||||
Balance, before amounts charged off | 594 | 357 | ||||||||
Amounts charged off | (200) | (3) | ||||||||
Balance, end of year | 394 | 354 | 394 | 354 | ||||||
Consumer [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | 23 | 30 | 23 | 30 | ||||||
Provision (credit) for loan losses | 7 | (3) | ||||||||
Recoveries of amounts charged off | 4 | 17 | ||||||||
Balance, before amounts charged off | 34 | 44 | ||||||||
Amounts charged off | (11) | (21) | ||||||||
Balance, end of year | 23 | 23 | 23 | 23 | ||||||
Municipal [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | 82 | 64 | 82 | 64 | ||||||
Provision (credit) for loan losses | (6) | 18 | ||||||||
Recoveries of amounts charged off | 0 | 0 | ||||||||
Balance, before amounts charged off | 76 | 82 | ||||||||
Amounts charged off | 0 | 0 | ||||||||
Balance, end of year | 76 | 82 | 76 | 82 | ||||||
Unallocated [Member] | ||||||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||||||
Balance, beginning of year | $ 362 | $ 363 | 362 | 363 | ||||||
Provision (credit) for loan losses | (77) | (1) | ||||||||
Recoveries of amounts charged off | 0 | 0 | ||||||||
Balance, before amounts charged off | 285 | 362 | ||||||||
Amounts charged off | 0 | 0 | ||||||||
Balance, end of year | $ 285 | $ 362 | $ 285 | $ 362 |
Allowance for loan losses and_4
Allowance for loan losses and credit quality Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | $ 196 | $ 66 | |
Collectively evaluated for impairment | 5,926 | 5,673 | |
Total allocated | 6,122 | 5,739 | $ 5,408 |
Residential Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 39 | 47 | |
Collectively evaluated for impairment | 1,353 | 1,321 | |
Total allocated | 1,392 | 1,368 | 1,361 |
Construction Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 774 | 617 | |
Total allocated | 774 | 617 | 488 |
Commercial Real Estate [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 149 | 9 | |
Collectively evaluated for impairment | 3,029 | 2,924 | |
Total allocated | 3,178 | 2,933 | 2,707 |
Commercial [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 8 | 10 | |
Collectively evaluated for impairment | 386 | 344 | |
Total allocated | 394 | 354 | 395 |
Consumer [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 23 | 23 | |
Total allocated | 23 | 23 | 30 |
Municipal [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 76 | 82 | |
Total allocated | 76 | 82 | 64 |
Unallocated [Member] | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 285 | 362 | |
Total allocated | $ 285 | $ 362 | $ 363 |
Allowance for loan losses and_5
Allowance for loan losses and credit quality Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 5,241 | $ 4,425 |
Collectively evaluated for impairment | 665,003 | 638,036 |
Total | 670,244 | 642,461 |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 1,515 | 1,678 |
Collectively evaluated for impairment | 190,610 | 185,642 |
Total | 192,125 | 187,320 |
Construction Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 223 | 119 |
Collectively evaluated for impairment | 69,394 | 55,203 |
Total | 69,617 | 55,322 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 3,204 | 2,276 |
Collectively evaluated for impairment | 286,679 | 274,224 |
Total | 289,883 | 276,500 |
Commercial [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 299 | 352 |
Collectively evaluated for impairment | 47,400 | 46,876 |
Total | 47,699 | 47,228 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 3,562 | 3,241 |
Total | 3,562 | 3,241 |
Municipal [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 67,358 | 72,850 |
Total | $ 67,358 | $ 72,850 |
Allowance for loan losses and_6
Allowance for loan losses and credit quality Loan Ratings by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 670,244 | $ 642,461 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 497,260 | 496,721 |
Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 164,374 | 138,569 |
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 8,610 | 7,171 |
Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 192,125 | 187,320 |
Residential Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 174,798 | 170,416 |
Residential Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 14,520 | 14,008 |
Residential Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 2,807 | 2,896 |
Construction Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 69,617 | 55,322 |
Construction Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 47,326 | 41,141 |
Construction Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 21,819 | 14,053 |
Construction Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 472 | 128 |
Commercial Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 289,883 | 276,500 |
Commercial Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 168,654 | 174,802 |
Commercial Real Estate [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 117,004 | 98,327 |
Commercial Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 4,225 | 3,371 |
Commercial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 47,699 | 47,228 |
Commercial [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 35,625 | 34,303 |
Commercial [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 10,974 | 12,150 |
Commercial [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 1,100 | 775 |
Consumer [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,562 | 3,241 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 3,499 | 3,209 |
Consumer [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 57 | 31 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 6 | 1 |
Municipal [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 67,358 | 72,850 |
Municipal [Member] | Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 67,358 | 72,850 |
Municipal [Member] | Satisfactory/Monitor [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | 0 | 0 |
Municipal [Member] | Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Loans | $ 0 | $ 0 |
Allowance for loan losses and_7
Allowance for loan losses and credit quality Impaired Loans by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | ||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, Recorded Investment | $ 1,991 | $ 433 | |
With an allowance recorded, Principal Balance | 2,023 | 444 | |
Related Allowance | 196 | 66 | |
With no allowance recorded, Recorded Investment | [1] | 3,250 | 3,992 |
With no allowance recorded, Principal Balance | [1] | 3,902 | 4,688 |
Total, Recorded Investment | [1] | 5,241 | 4,425 |
Total, Principal Balance | [1] | 5,925 | 5,132 |
Total, Average Recorded Investment | 4,488 | 3,884 | |
Total, Interest Income Recognized | 286 | 175 | |
Government Guarantees on Impaired Loans | 587 | 641 | |
Residential Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, Recorded Investment | 218 | 228 | |
With an allowance recorded, Principal Balance | 228 | 238 | |
Related Allowance | 39 | 47 | |
With no allowance recorded, Recorded Investment | [1] | 1,297 | 1,450 |
With no allowance recorded, Principal Balance | [1] | 1,832 | 2,039 |
Total, Recorded Investment | [1] | 1,515 | 1,678 |
Total, Principal Balance | [1] | 2,060 | 2,277 |
Total, Average Recorded Investment | 1,625 | 1,730 | |
Total, Interest Income Recognized | 149 | 65 | |
Construction Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Related Allowance | 0 | 0 | |
With no allowance recorded, Recorded Investment | 223 | 119 | |
With no allowance recorded, Principal Balance | 241 | 135 | |
Total, Recorded Investment | 223 | 119 | |
Total, Principal Balance | 241 | 135 | |
Total, Average Recorded Investment | 159 | 88 | |
Total, Interest Income Recognized | 4 | 4 | |
Commercial Real Estate [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, Recorded Investment | 1,762 | 193 | |
With an allowance recorded, Principal Balance | 1,783 | 193 | |
Related Allowance | 149 | 9 | |
With no allowance recorded, Recorded Investment | [1] | 1,442 | 2,083 |
With no allowance recorded, Principal Balance | [1] | 1,539 | 2,174 |
Total, Recorded Investment | [1] | 3,204 | 2,276 |
Total, Principal Balance | [1] | 3,322 | 2,367 |
Total, Average Recorded Investment | 2,382 | 1,699 | |
Total, Interest Income Recognized | 110 | 77 | |
Commercial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
With an allowance recorded, Recorded Investment | 11 | 12 | |
With an allowance recorded, Principal Balance | 12 | 13 | |
Related Allowance | 8 | 10 | |
With no allowance recorded, Recorded Investment | [1] | 288 | 340 |
With no allowance recorded, Principal Balance | [1] | 290 | 340 |
Total, Recorded Investment | [1] | 299 | 352 |
Total, Principal Balance | [1] | 302 | 353 |
Total, Average Recorded Investment | 322 | 367 | |
Total, Interest Income Recognized | $ 23 | $ 29 | |
[1] | Does not reflect government guaranties on impaired loans as of December 31, 2019 and 2018 totaling $587 thousand and $641 thousand, respectively. |
Allowance for loan losses and_8
Allowance for loan losses and credit quality Troubled Debt Restructured Loans (Details) $ in Thousands | Dec. 31, 2019USD ($)loans | Dec. 31, 2018USD ($)loans |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 40 | 42 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 2,871 | $ 3,309 |
Residential Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 25 | 27 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 1,515 | $ 1,678 |
Construction Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 2 | 2 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 100 | $ 119 |
Commercial Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 8 | 9 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 966 | $ 1,172 |
Commercial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Troubled Debt Restructured Loans, Number of Loans | loans | 5 | 4 |
Troubled Debt Restructured Loans, Principal Balance | $ | $ 290 | $ 340 |
Allowance for loan losses and_9
Allowance for loan losses and credit quality New Troubled Debt Restructure Loans (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loans | Dec. 31, 2018USD ($)loans | |
Residential Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
New Troubled Debt Restructured Loans, Number of Loans | loans | 1 | 3 |
New Troubled Debt Restructured Loans, Pre-Modification Recorded Investment | $ 77 | $ 190 |
New Troubled Debt Restructured Loans, Post-Modification Recorded Investment | $ 79 | $ 193 |
Construction Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
New Troubled Debt Restructured Loans, Number of Loans | loans | 0 | 1 |
New Troubled Debt Restructured Loans, Pre-Modification Recorded Investment | $ 0 | $ 44 |
New Troubled Debt Restructured Loans, Post-Modification Recorded Investment | $ 0 | $ 44 |
Commercial Real Estate [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
New Troubled Debt Restructured Loans, Number of Loans | loans | 0 | 1 |
New Troubled Debt Restructured Loans, Pre-Modification Recorded Investment | $ 0 | $ 204 |
New Troubled Debt Restructured Loans, Post-Modification Recorded Investment | $ 0 | $ 204 |
Commercial [Member] | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
New Troubled Debt Restructured Loans, Number of Loans | loans | 1 | 2 |
New Troubled Debt Restructured Loans, Pre-Modification Recorded Investment | $ 15 | $ 31 |
New Troubled Debt Restructured Loans, Post-Modification Recorded Investment | $ 15 | $ 31 |
Allowance for loan losses an_10
Allowance for loan losses and credit quality Narrative Data (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)loans | Dec. 31, 2018loans | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Resturctured Loans, Number to Subsequently Default | 0 | |
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Troubled Debt Resturctured Loans, Number to Subsequently Default | 1 | |
Troubled Debt Restructured Loans to Subsequently Default, Principal Balance | $ | $ 79 |
Premises and Equipment Class of
Premises and Equipment Class of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 32,905 | $ 27,882 |
Less accumulated depreciation | (11,982) | (11,809) |
Premises and equipment, net | 20,923 | 16,073 |
Land and land improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 3,922 | 3,260 |
Building and improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 18,490 | 14,760 |
Furniture and equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 10,402 | 9,053 |
Construction in progress and deposits on equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 91 | $ 809 |
Premises and Equipment Narrativ
Premises and Equipment Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Property, Plant and Equipment [Line Items] | ||
Depreciation | $ 1,567 | $ 1,216 |
Lease Maturity (Details)
Lease Maturity (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
2020 | $ 183 |
2021 | 171 |
2022 | 125 |
2023 | 114 |
2024 | 110 |
Thereafter | 2,332 |
Undiscounted cash flows | $ 3,035 |
Lease Liability Reconciliation
Lease Liability Reconciliation (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Lessee, Lease, Description [Line Items] | |
Undiscounted cash flows | $ 3,035 |
Discount effect of cash flows | (1,141) |
Lease liabilities | $ 1,894 |
Leases Narrative Data (Details)
Leases Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Lessee, Lease, Description [Line Items] | ||
Weighted average remaining operating lease term | 23 years 11 days | |
Weighted average operating lease discount rate | 3.84% | |
Operating lease right-of-use assets | $ 1,860 | |
Operating lease liabilities | 1,894 | |
Operating lease costs | 215 | |
Rent Expense | $ 180 | |
Rental income | $ 232 | $ 225 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets Core Deposit Intangible Amortization (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Finite-Lived Intangible Assets [Line Items] | |
2020 | $ 171 |
2021 | 71 |
Total | $ 242 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | May 27, 2011 | |
Goodwill And Intangible Assets [Line Items] | |||
Goodwill at Acquisition | $ 2,200 | ||
Core Deposit Intangible at Acquisition | $ 1,700 | ||
Amortization of core deposit intangible | $ 171 | $ 171 |
Investment in Real Estate Lim_3
Investment in Real Estate Limited Partnerships Income Tax Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Equity Method Investments [Line Items] | ||
Provision for undistributed net losses of limited partnership investments | $ 745 | $ 591 |
Federal income tax credits related to limited partnership investments | (803) | (656) |
Net effect on Provision for income taxes | $ (58) | $ (65) |
Investment in Real Estate Lim_4
Investment in Real Estate Limited Partnerships Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment Holdings [Line Items] | ||
Investment in real estate limited partnerships | $ 4,400 | $ 4,000 |
Capital contributions payable for real estate limited partnership investments | $ 493 | $ 1,300 |
Deposits Interest Bearing Depos
Deposits Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest Bearing Deposits [Line Items] | ||
Interest bearing checking accounts | $ 173,406 | $ 157,847 |
Savings and money market accounts | 285,534 | 286,875 |
Time deposits, $100,000 and over | 73,048 | 64,474 |
Other time deposits | 75,605 | 64,603 |
Total interest-bearing deposits | $ 607,593 | $ 573,799 |
Deposits Time Deposits by Matur
Deposits Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Time Deposits, by Maturity [Line Items] | ||
2020 | $ 105,832 | |
2021 | 28,365 | |
2022 | 8,136 | |
2023 | 3,340 | |
2024 | 2,980 | |
Total Time deposits | $ 148,653 | $ 129,077 |
Deposits Narrative Data (Detail
Deposits Narrative Data (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Deposits [Abstract] | ||
Brokered deposits | $ 12 | $ 16 |
Reciprocal deposits | 127.3 | 114.2 |
Time deposits, $250,000 or more | $ 24.4 | $ 13.6 |
Borrowed Funds Contractual Paym
Borrowed Funds Contractual Payments Due for FHLB Borrowings (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
2020 | $ 47,000 | |
2021 | 164 | |
Total | $ 47,164 | $ 27,500 |
Borrowed Funds Narrative Data (
Borrowed Funds Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Borrowed Funds Narrative Data [Line Items] | ||
Option advance borrowings from the FHLB | $ 47,164 | $ 27,500 |
FHLB borrowing capacity, loans pledged | 207,700 | 167,700 |
FHLB borrowing capacity, maximum available | 127,500 | 100,100 |
FHLB borrowings and other credit subject to collateralization | 61,700 | 45,600 |
FHLB borrowing capacity, unused and available | 65,800 | 54,500 |
FHLB Letters of Credit, collateral for deposits | 24,800 | 17,300 |
FHLB Letters of Credit, fees paid | 27 | 28 |
Secured customer repurchase agreement sweeps | 0 | 370 |
Securities pledged for customer repurchase agreement sweeps | 1,700 | |
Repurchase agreement sweeps, average daily balance | $ 551 | |
Repurchase agreement sweeps, weighted average interest rate for the year | 0.26% | |
Repurchase agreement sweeps, maximum borrowings outstanding during the year | $ 3,500 | |
Repurchase agreement sweeps, weighted average interest rate at year end | 0.20% | |
Union [Member] | ||
Borrowed Funds Narrative Data [Line Items] | ||
Correspondent banks line of credit, maximum available | 15,000 | |
Correspondent banks line of credit, amount outstanding | 0 | $ 0 |
Company [Member] | ||
Borrowed Funds Narrative Data [Line Items] | ||
Correspondent banks line of credit, maximum available | 5,000 | |
Correspondent banks line of credit, amount outstanding | $ 0 | |
Interest rate, low range [Member] | ||
Borrowed Funds Narrative Data [Line Items] | ||
FHLB borrowings interest rate | 0.00% | 0.00% |
Interest rate, high range [Member] | ||
Borrowed Funds Narrative Data [Line Items] | ||
FHLB borrowings interest rate | 3.09% | 2.59% |
Weighted average interest rate [Member] | ||
Borrowed Funds Narrative Data [Line Items] | ||
FHLB borrowings interest rate | 2.01% | 1.84% |
Income Taxes Components of the
Income Taxes Components of the provision for income taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Components of the provision for income taxes [Line Items] | ||
Current tax provision | $ 1,351 | $ 1,695 |
Current state tax provision | 41 | 86 |
Deferred tax provision (benefit) | 438 | (508) |
Provision for income taxes | $ 1,830 | $ 1,273 |
Income Taxes Schedule of effect
Income Taxes Schedule of effective income tax rate reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Effective Income Tax Rate Reconciliation [Line Items] | ||
Statutory federal income tax rate | 21.00% | 21.00% |
Computed expected tax expense | $ 2,620 | $ 1,752 |
State taxes | 32 | 68 |
Tax exempt Interest | (513) | (413) |
Increase in cash surrender value of COLI | (59) | (103) |
Tax credits | (857) | (684) |
Equity in losses of limited partnerships | 640 | 528 |
Non-deductible expenses | 46 | 36 |
True-up adjustment for effect of enacted tax law changes | 0 | 32 |
Other | (79) | 57 |
Provision for income taxes | $ 1,830 | $ 1,273 |
Income Taxes Components of th_2
Income Taxes Components of the net deferred tax asset (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Components of the net deferred tax asset [Line Items] | ||
Bad debts | $ 1,329 | $ 1,244 |
Deferred compensation | 227 | 205 |
Core deposit intangible | 106 | 94 |
Unrealized loss on investment securities available-for-sale | 0 | 272 |
Other | 69 | 38 |
Total deferred tax asset | 1,731 | 1,853 |
Depreciation | (1,402) | (913) |
Mortgage servicing rights | (371) | (360) |
Limited partnership investments | (50) | (16) |
Unrealized gain on investment securities available-for-sale | (262) | 0 |
Goodwill | (276) | (244) |
Prepaid expenses | (136) | (114) |
Total deferred tax liability | (2,497) | (1,647) |
Net deferred tax (liability) asset | $ (766) | |
Net deferred tax (liability) asset | $ 206 |
Income Taxes Narrative Data (De
Income Taxes Narrative Data (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income Tax Disclosure [Abstract] | ||
Reduction in provision for income taxes from settlement of Plan assets and liabilities | $ 900,000 | |
Adjustment for effect of enacted tax law changes | $ 0 | $ 32,000 |
Deferred tax assets, valuation allowance | $ 0 |
Employee Benefit Plans Employer
Employee Benefit Plans Employer 401(k) Contributions (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits Disclosure [Line Items] | ||
Employer matching | $ 270 | $ 236 |
Profit sharing | 280 | 279 |
Safe harbor | 336 | 304 |
Total | $ 886 | $ 819 |
Employee Benefit Plans Defined
Employee Benefit Plans Defined benefit pension plan obligations and funded status (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan, Change in Benefit Obligation [Roll Forward] | |
Projected benefit obligation at beginning of year | $ 20,832 |
Interest cost | 599 |
Settlement gain | (326) |
Actuarial gain | (2,667) |
Benefits paid | (712) |
Settlement payments | (17,726) |
Projected benefit obligation at end of year | 0 |
Defined Benefit Plan, Change in Fair Value of Plan Assets [Roll Forward] | |
Fair value of plan assets at beginning of year | 18,499 |
Actuarial loss on plan assets | (717) |
Administration expenses | (194) |
Employer contributions | 850 |
Benefits paid | (712) |
Settlement payments | (17,726) |
Fair value of plan assets at end of year | 0 |
Net liability for pension benefits | $ 0 |
Employee Benefit Plans Net Peri
Employee Benefit Plans Net Periodic Pension (Benefit) Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2018USD ($) | |
Defined Benefit Plan Disclosure [Line Items] | |
Interest cost on projected benefit obligation | $ 599 |
Expected return on plan assets | (531) |
Amortization of net actuarial loss | 502 |
Net periodic pension cost | 570 |
Recognized settlement loss | 4,061 |
Total net periodic pension cost | $ 4,631 |
Employee Benefit Plans Narrativ
Employee Benefit Plans Narrative Data (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Deferred Compensation Arrangements [Abstract] | ||
Deferred compensation expense | $ 8 | $ 7 |
Deferred compensation accrued benefit liability | 359 | 388 |
Cash surrender value of life insurance policies purchased to fund the deferred compensation plan | 1,000 | 974 |
General unsecured obligation of unfunded deferred compensation plan | 699 | 558 |
Defined Benefit Plan Disclosure [Line Items] | ||
Settlement loss in net periodic pension expense | 4,000 | |
Total pension expense | $ 0 | 4,631 |
Reduction in provision for income taxes from settlement of Plan assets and liabilities | 900 | |
Accumulated benefit obligation | $ 0 | |
Weighted average assumptions, net periodic benefit cost, discount rate | 3.52% | |
Weighted average assumptions, net periodic benefit cost, expected long-term rate of return on plan assets | 3.52% | |
Weighted average assumptions, net periodic benefit cost, rate of compensation increase | 0.00% |
Stock Based Compensation Restri
Stock Based Compensation Restricted Stock Units Granted and Unvested (Details) - Restricted Stock Units (RSUs) [Member] - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of Unvested RSUs | 13,881 | 6,043 |
2014 Equity Plan [Member] | Executive Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 17,102 | |
Number of Unvested RSUs | 12,696 | |
2014 Equity Plan [Member] | 2017 Award [Member] | Executive Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 3,225 | |
Weighted-Average Grant Date Fair Value | $ 52.95 | |
Number of Unvested RSUs | 433 | |
2014 Equity Plan [Member] | 2018 Award [Member] | Executive Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 3,734 | |
Weighted-Average Grant Date Fair Value | $ 47.75 | |
Number of Unvested RSUs | 2,120 | |
2014 Equity Plan [Member] | 2019 Award [Member] | Executive Employee [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of RSUs Granted | 10,143 | |
Weighted-Average Grant Date Fair Value | $ 36.26 | |
Number of Unvested RSUs | 10,143 |
Stock Option Plan Stock Option
Stock Option Plan Stock Option Activity (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Shares [Roll Forward] | |
Outstanding at January 1, 2019 | 7,500 |
Exercised | (2,000) |
Outstanding at December 31, 2019 | 5,500 |
Weighted Average Exercise Price [Roll Forward] | |
Exercised | $ / shares | $ 22 |
2014 Equity Plan [Member] | |
Shares [Roll Forward] | |
Outstanding at January 1, 2019 | 4,500 |
Exercised | 0 |
Forfeited/expired | 0 |
Outstanding at December 31, 2019 | 4,500 |
Exercisable at December 31, 2019 | 4,500 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at January 1, 2019 | $ / shares | $ 24 |
Exercised | $ / shares | 0 |
Forfeited/expired | $ / shares | 0 |
Outstanding at December 31, 2019 | $ / shares | 24 |
Exercisable at December 31, 2019 | $ / shares | $ 24 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at December 31, 2019 | 1 year 11 months 16 days |
Exercisable at December 31, 2019 | 1 year 11 months 16 days |
Period End Aggregate Intrinsic Value [Abstract] | |
Outstanding at December 31, 2019 | $ | $ 55 |
Exercisable at December 31, 2019 | $ | $ 55 |
2008 ISO Plan [Member] | |
Shares [Roll Forward] | |
Outstanding at January 1, 2019 | 3,000 |
Exercised | (2,000) |
Forfeited/expired | 0 |
Outstanding at December 31, 2019 | 1,000 |
Exercisable at December 31, 2019 | 1,000 |
Weighted Average Exercise Price [Roll Forward] | |
Outstanding at January 1, 2019 | $ / shares | $ 22 |
Exercised | $ / shares | 22 |
Forfeited/expired | $ / shares | 0 |
Outstanding at December 31, 2019 | $ / shares | 22 |
Exercisable at December 31, 2019 | $ / shares | $ 22 |
Weighted Average Remaining Contractual Term [Abstract] | |
Outstanding at December 31, 2019 | 11 months 16 days |
Exercisable at December 31, 2019 | 11 months 16 days |
Period End Aggregate Intrinsic Value [Abstract] | |
Outstanding at December 31, 2019 | $ | $ 14 |
Exercisable at December 31, 2019 | $ | $ 14 |
Stock Based Compensation Stock
Stock Based Compensation Stock Option Plan Proceeds from the Exercise of Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Proceeds received | $ 44 | $ 0 |
Number of shares exercised | 2,000 | |
Weighted average price per share | $ 22 | |
Total intrinsic value of options exercised | $ 30 |
Stock Option Plan Narrative Dat
Stock Option Plan Narrative Data (Details) - USD ($) | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 5,500 | 7,500 | |
Stock based compensation expense | $ 165,000 | $ 120,000 | |
Exercise of stock options | 44,000 | $ 0 | |
Unrecognized compensation cost related to unvested stock option grants | $ 0 | ||
2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares authorized for equity awards | 50,000 | ||
Stock options granted | 0 | 0 | |
Stock options outstanding | 4,500 | 4,500 | |
Stock options exercisable | 4,500 | ||
2008 ISO Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock options outstanding | 1,000 | 3,000 | |
Stock options exercisable | 1,000 | ||
Restricted Stock Units (RSUs) [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of Unvested RSUs | 13,881 | 6,043 | |
Stock Options [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Intrinsic value at grant date of stock options | $ 0 | ||
Requisite service period | 1 year | ||
Vesting period | 1 year | ||
Contractual term | 7 years | ||
Stock based compensation expense | $ 0 | $ 0 | |
Time-Based [Member] | Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Performance-Based [Member] | Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 2 years | ||
Executive Employee [Member] | Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, unvested RSUs | $ 492,000 | $ 297,000 | |
Number of Unvested RSUs | 12,696 | ||
Nonemployee Director [Member] | Restricted Stock Units (RSUs) [Member] | 2014 Equity Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense, unvested RSUs | $ 18,000 | ||
Number of Unvested RSUs | 1,185 |
Earnings Per Share Schedule of
Earnings Per Share Schedule of Earnings Per Share, Basic (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items] | ||||||||||
Net income | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ (436) | $ 2,311 | $ 2,450 | $ 2,747 | $ 10,648 | $ 7,072 |
Weighted average common shares outstanding | 4,468,336 | 4,465,675 | ||||||||
Basic earnings per share | $ 0.61 | $ 0.62 | $ 0.56 | $ 0.59 | $ (0.10) | $ 0.52 | $ 0.54 | $ 0.62 | $ 2.38 | $ 1.58 |
Earnings Per Share Narrative Da
Earnings Per Share Narrative Data (Details) - shares | Dec. 31, 2019 | Dec. 31, 2018 |
Earnings Per Share [Abstract] | ||
Stock options outstanding | 5,500 | 7,500 |
Restricted Stock Units (RSUs) [Member] | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of Unvested RSUs | 13,881 | 6,043 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance-Sheet Risk Contractual Amount of Financial Instruments with Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 145,618 | $ 139,809 |
Commitment to originate loans [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 35,689 | 22,673 |
Unused lines of credit [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 103,623 | 109,457 |
Standby and commercial letters of credit [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 2,308 | 2,308 |
Credit card arrangement [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 311 | 259 |
MPF credit enhancement obligation, net (See Note 18) (See Note 18) | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 687 | 684 |
Commitment for purchase of Jericho branch property [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 0 | 1,220 |
Commitment for construction of Williston branch [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 0 | 3,208 |
Commitment to purchase investment in a real estate limited partnership [Member] | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 3,000 | $ 0 |
Financial Instruments With Of_4
Financial Instruments With Off-Balance-Sheet Risk Narrative Data (Details) - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Supply Commitment [Line Items] | ||
Commitment to sell residential mortgage loans | $ 7.1 | $ 2.7 |
Commitments and Contingencies N
Commitments and Contingencies Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Unpaid principal balance of loans serviced for others | $ 579,900 | $ 534,200 |
Credit Enhancement Obligation [Member] | ||
Loss Contingencies [Line Items] | ||
Contractual risk sharing commitments, maximum liability | 705 | 702 |
Reserve for contingent contractual liability, amount accrued | 18 | $ 18 |
Federal Home Loan Bank MPF Program [Member] | ||
Loss Contingencies [Line Items] | ||
Total loans sold through the MPF program since inceptions into the program | 30,800 | |
Unpaid principal balance of loans serviced for others | $ 13,000 |
Fair Value Measurement, Assets
Fair Value Measurement, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 87,393 | $ 73,405 |
Other investments, mutual funds | 690 | 556 |
U.S. Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,292 | 6,321 |
Agency MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 46,024 | 36,252 |
State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 26,965 | 23,171 |
Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 8,112 | 7,661 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Other investments, mutual funds | 690 | 556 |
Significant Other Observable Inputs (Level 2) [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 87,393 | 73,405 |
Significant Other Observable Inputs (Level 2) [Member] | U.S. Government-sponsored enterprises [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 6,292 | 6,321 |
Significant Other Observable Inputs (Level 2) [Member] | Agency MBS [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 46,024 | 36,252 |
Significant Other Observable Inputs (Level 2) [Member] | State and political subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | 26,965 | 23,171 |
Significant Other Observable Inputs (Level 2) [Member] | Corporate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Investment securities available-for-sale | $ 8,112 | $ 7,661 |
Fair Value Measurement, by Bala
Fair Value Measurement, by Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | $ 51,134 | $ 37,289 | $ 38,508 |
Interest bearing deposits in banks | 6,565 | 9,300 | |
Investment securities | 88,083 | 73,961 | |
Loans held for sale | 7,442 | 2,899 | |
Loans, Net | 670,244 | 642,461 | |
Deposits | |||
Noninterest bearing | 136,434 | 132,971 | |
Interest bearing | 458,940 | 444,722 | |
Time | 148,653 | 129,077 | |
Residential Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 192,125 | 187,320 | |
Construction Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 69,617 | 55,322 | |
Commercial Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 289,883 | 276,500 | |
Commercial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 47,699 | 47,228 | |
Consumer [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 3,562 | 3,241 | |
Municipal [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 67,358 | 72,850 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 51,134 | 37,289 | |
Investment securities | 690 | 556 | |
Deposits | |||
Noninterest bearing | 136,434 | 132,971 | |
Interest bearing | 458,940 | 444,722 | |
Borrowed funds | |||
Short-term, Fair Value | 40,000 | 370 | |
Significant Other Observable Inputs (Level 2) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Interest bearing deposits in banks | 6,671 | 9,177 | |
Investment securities | 87,393 | 73,405 | |
Loans held for sale | 7,587 | 2,954 | |
Accrued interest receivable | 435 | 423 | |
Deposits | |||
Time | 148,542 | 127,554 | |
Borrowed funds | |||
Long-term, Fair Value | 7,416 | 27,374 | |
Accrued interest payable | 673 | 203 | |
Significant Unobservable Inputs (Level 3) [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Accrued interest receivable | 2,267 | 2,389 | |
Significant Unobservable Inputs (Level 3) [Member] | Residential Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 192,955 | 183,836 | |
Significant Unobservable Inputs (Level 3) [Member] | Construction Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 68,381 | 54,694 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 288,931 | 272,187 | |
Significant Unobservable Inputs (Level 3) [Member] | Commercial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 45,872 | 45,713 | |
Significant Unobservable Inputs (Level 3) [Member] | Consumer [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 3,483 | 3,193 | |
Significant Unobservable Inputs (Level 3) [Member] | Municipal [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 67,103 | 72,689 | |
Carrying Amount [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 51,134 | 37,289 | |
Interest bearing deposits in banks | 6,565 | 9,300 | |
Investment securities | 88,083 | 73,961 | |
Loans held for sale | 7,442 | 2,899 | |
Accrued interest receivable | 2,702 | 2,812 | |
Nonmarketable equity securities | 2,607 | 2,376 | |
Deposits | |||
Noninterest bearing | 136,434 | 132,971 | |
Interest bearing | 458,940 | 444,722 | |
Time | 148,653 | 129,077 | |
Borrowed funds | |||
Short-term | 40,000 | 370 | |
Long-term | 7,164 | 27,451 | |
Accrued interest payable | 673 | 203 | |
Carrying Amount [Member] | Residential Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 191,032 | 186,225 | |
Carrying Amount [Member] | Construction Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 68,951 | 54,786 | |
Carrying Amount [Member] | Commercial Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 286,871 | 273,609 | |
Carrying Amount [Member] | Commercial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 47,379 | 46,943 | |
Carrying Amount [Member] | Consumer [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 3,545 | 3,223 | |
Carrying Amount [Member] | Municipal [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Net | 67,387 | 72,874 | |
Estimated Fair Value [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and cash equivalents | 51,134 | 37,289 | |
Interest bearing deposits in banks | 6,671 | 9,177 | |
Investment securities | 88,083 | 73,961 | |
Loans held for sale | 7,587 | 2,954 | |
Accrued interest receivable | 2,702 | 2,812 | |
Deposits | |||
Noninterest bearing | 136,434 | 132,971 | |
Interest bearing | 458,940 | 444,722 | |
Time | 148,542 | 127,554 | |
Borrowed funds | |||
Short-term, Fair Value | 40,000 | 370 | |
Long-term, Fair Value | 7,416 | 27,374 | |
Accrued interest payable | 673 | 203 | |
Estimated Fair Value [Member] | Residential Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 192,955 | 183,836 | |
Estimated Fair Value [Member] | Construction Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 68,381 | 54,694 | |
Estimated Fair Value [Member] | Commercial Real Estate [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 288,931 | 272,187 | |
Estimated Fair Value [Member] | Commercial [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 45,872 | 45,713 | |
Estimated Fair Value [Member] | Consumer [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | 3,483 | 3,193 | |
Estimated Fair Value [Member] | Municipal [Member] | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Loans, Fair Value | $ 67,103 | $ 72,689 |
Transactions with Related Par_3
Transactions with Related Parties Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Balance, January 1, | $ 749 | $ 961 |
New loans and advances on lines | 1,045 | 827 |
Repayments | (690) | (1,039) |
Other, net | 196 | 0 |
Balance, December 31, | 1,300 | 749 |
Balance available on lines of credit or loan commitments | $ 1,153 | $ 693 |
Transactions with Related Par_4
Transactions with Related Parties Narrative Data (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Related Party Transaction [Line Items] | ||
Deposit accounts with related parties | $ 1,300 | $ 1,200 |
Union's Asset Management Group investment in Union certificates of deposit | $ 348 | $ 397 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Company [Member] | ||
Total capital to risk weighted assets | ||
Total capital, actual | $ 74,510 | $ 68,616 |
Total capital to risk weighted assets, actual | 13.02% | 12.86% |
Total capital, for capital adequacy purposes | $ 45,782 | $ 42,685 |
Total capital to risk weighted assets, for capital adequacy purposes | 8.00% | 8.00% |
Tier I capital to risk weighted assets | ||
Tier 1 capital, actual | $ 68,388 | $ 62,877 |
Tier 1 capital to risk weighted assets, actual | 11.95% | 11.78% |
Tier 1 capital, for capital adequacy purposes | $ 34,337 | $ 32,026 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | 6.00% | 6.00% |
Common Equity Tier 1 to risk weighted assets [Abstract] | ||
Common Equity Tier 1 capital, actual | $ 68,388 | $ 62,877 |
Common Equity Tier 1 capital to risk weighted assets, actual | 11.95% | 11.78% |
Common Equity Tier 1 capital, for capital adequacy purposes | $ 25,753 | $ 24,019 |
Common Equity Tier 1 capital to risk weighted assets, for capital adequacy purposes | 4.50% | 4.50% |
Tier I capital to average assets | ||
Tier 1 capital, actual | $ 68,388 | $ 62,877 |
Tier 1 capital to average assets, actual | 8.09% | 8.03% |
Tier 1 capital, for capital adequacy purposes | $ 33,814 | $ 31,321 |
Tier 1 capital to average assets, for capital adequacy purposes | 4.00% | 4.00% |
Union [Member] | ||
Total capital to risk weighted assets | ||
Total capital, actual | $ 74,167 | $ 68,305 |
Total capital to risk weighted assets, actual | 12.98% | 12.82% |
Total capital, for capital adequacy purposes | $ 45,712 | $ 42,624 |
Total capital to risk weighted assets, for capital adequacy purposes | 8.00% | 8.00% |
Total capital, to be well capitalized under prompt corrective action provisions | $ 57,139 | $ 53,280 |
Total capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 10.00% | 10.00% |
Tier I capital to risk weighted assets | ||
Tier 1 capital, actual | $ 68,045 | $ 62,566 |
Tier 1 capital to risk weighted assets, actual | 11.91% | 11.75% |
Tier 1 capital, for capital adequacy purposes | $ 34,280 | $ 31,949 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | 6.00% | 6.00% |
Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 45,706 | $ 42,598 |
Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 8.00% | 8.00% |
Common Equity Tier 1 to risk weighted assets [Abstract] | ||
Common Equity Tier 1 capital, actual | $ 68,045 | $ 62,566 |
Common Equity Tier 1 capital to risk weighted assets, actual | 11.91% | 11.75% |
Common Equity Tier 1 capital, for capital adequacy purposes | $ 25,710 | $ 23,961 |
Common Equity Tier 1 capital to risk weighted assets, for capital adequacy purposes | 4.50% | 4.50% |
Common Equity Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 37,136 | $ 34,611 |
Common Equity Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | 6.50% | 6.50% |
Tier I capital to average assets | ||
Tier 1 capital, actual | $ 68,045 | $ 62,566 |
Tier 1 capital to average assets, actual | 8.06% | 8.00% |
Tier 1 capital, for capital adequacy purposes | $ 33,769 | $ 31,283 |
Tier 1 capital to average assets, for capital adequacy purposes | 4.00% | 4.00% |
Tier 1 capital, to be well capitalized under prompt corrective action provisions | $ 42,212 | $ 39,104 |
Tier 1 capital to average assets, to be well capitalized under prompt corrective action provisions | 5.00% | 5.00% |
Treasury Stock Narrative Data (
Treasury Stock Narrative Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares authorized to be repurchased per quarter | 2,500 | |
Purchase of treasury stock, cost | $ 13 | $ 107 |
Number of shares of common stock repurchased since inception of stock repurchase program | 17,693 | |
Cost per share of common stock repurchased since inception of stock repurchase program, low | $ 17.86 | |
Cost per share of common stock repurchased since inception of stock repurchase program, high | $ 48.82 | |
Total cost of common stock repurchased since inception of stock repurchase program | $ 472 | |
Number of shares of common stock reserved for issuance and sale under the DRIP | 200,000 | |
Common Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Purchase of treasury stock, shares | 300 | 2,209 |
Shares issued under the DRIP | 2,503 | |
Treasury Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Purchase of treasury stock, cost | $ 13 | $ 107 |
Other Comprehensive Income Comp
Other Comprehensive Income Components of Accumulated OCI (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Net unrealized gain (loss) on investment securities available-for-sale | $ 986 | $ (1,023) |
Other Comprehensive Income Tax
Other Comprehensive Income Tax Effects Allocated to Each Component of Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Other Comprehensive Income, before Tax [Abstract] | ||
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale, Before-Tax Amount | $ 2,568 | $ (905) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Before-Tax Amount | (25) | (10) |
Total Investment securities available-for-sale, Before-Tax Amount | 2,543 | (915) |
Net actuarial gain arising during the year, Before-Tax Amount | 0 | 1,546 |
Reclassification adjustment for amortization of net actuarial loss realized in net income, Before-Tax Amount | 0 | 502 |
Reclassification adjustment for recognized settlement loss, Before-Tax Amount | 0 | 4,022 |
Total Defined benefit pension plan, Before-Tax Amount | 0 | 6,070 |
Total other comprehensive loss, Before-Tax Amount | 2,543 | 5,155 |
Other Comprehensive Income, Tax [Abstract] | ||
Net unrealized holding gains (losses) arising during the period on investment securities available-for-sale, Tax | (539) | 191 |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income, Tax | 5 | 2 |
Total Investment securities available-for-sale, Tax | (534) | 193 |
Net actuarial gain arising during the year, Tax | 0 | (325) |
Reclassification adjustment for amortization of net actuarial loss realized in net income, Tax | 0 | (105) |
Reclassification adjustment for recognized settlement loss, Tax | 0 | (845) |
Total Defined benefit pension plan, Tax | 0 | (1,275) |
Total other comprehensive loss, Tax | (534) | (1,082) |
Net unrealized holding gains (losses) arising during the year on investment securities available-for-sale | 2,029 | (714) |
Reclassification adjustments for net gains on investment securities available-for-sale realized in net income | (20) | (8) |
Total | 2,009 | (722) |
Net actuarial gain arising during the year | 0 | 1,221 |
Reclassification adjustment for amortization of net actuarial loss realized in net income | 0 | 397 |
Reclassification adjustment for recognized settlement loss | 0 | 3,177 |
Total | 0 | 4,795 |
Total other comprehensive loss | $ 2,009 | $ 4,073 |
Other Comprehensive Income Recl
Other Comprehensive Income Reclassification Adjustments from Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net gains on investment securities available-for-sale | $ (25) | $ (10) |
Tax benefit | 5 | 2 |
Reclassification adjustments for investment securities available-for-sale | (20) | (8) |
Net actuarial loss | 0 | 502 |
Recognized settlement loss | 0 | 4,022 |
Reclassification adjustment for defined benefit pension plan, Before-Tax Amount | 0 | 4,524 |
Tax expense | 0 | (950) |
Reclassification adjustment for defined benefit pension plan, after Tax | 0 | 3,574 |
Total reclassifications | $ (20) | $ 3,566 |
Subsequent Events Narrative Dat
Subsequent Events Narrative Data (Details) - Dividend Declared [Member] | 12 Months Ended |
Dec. 31, 2019$ / shares | |
Subsequent Event [Line Items] | |
Date declared, cash dividend | Jan. 15, 2020 |
Cash dividend declared, per share | $ 0.32 |
Payable date, cash dividend | Feb. 6, 2020 |
Date of record, cash dividend declared | Jan. 27, 2020 |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) Condensed Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
ASSETS | |||
Other investments | $ 690 | $ 556 | |
Other assets | 19,055 | 16,892 | |
Total assets | 872,912 | 805,337 | |
LIABILITIES | |||
Other liabilities | 9,878 | 6,255 | |
Total liabilities | 801,069 | 740,846 | |
STOCKHOLDERS' EQUITY | |||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,948,245 shares issued at December 31, 2019 and 4,943,690 shares issued at December 31, 2018 | 9,897 | 9,888 | |
Additional-paid-in capital | 1,124 | 894 | |
Retained earnings | 64,019 | 58,911 | |
Treasury stock at cost; 476,268 shares at December 31, 2019 and 477,011 shares at December 31, 2018 | (4,183) | (4,179) | |
Accumulated other comprehensive income (loss) | 986 | (1,023) | |
Total stockholders' equity | 71,843 | 64,491 | $ 58,661 |
Total liabilities and stockholders' equity | 872,912 | 805,337 | |
Parent Company [Member] | |||
ASSETS | |||
Cash | 46 | 48 | $ 77 |
Other investments | 27 | 67 | |
Investment in subsidiary - Union | 71,500 | 64,180 | |
Other assets | 712 | 767 | |
Total assets | 72,285 | 65,062 | |
LIABILITIES | |||
Other liabilities | 442 | 571 | |
Total liabilities | 442 | 571 | |
STOCKHOLDERS' EQUITY | |||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,948,245 shares issued at December 31, 2019 and 4,943,690 shares issued at December 31, 2018 | 9,897 | 9,888 | |
Additional-paid-in capital | 1,124 | 894 | |
Retained earnings | 64,019 | 58,911 | |
Treasury stock at cost; 476,268 shares at December 31, 2019 and 477,011 shares at December 31, 2018 | (4,183) | (4,179) | |
Accumulated other comprehensive income (loss) | 986 | (1,023) | |
Total stockholders' equity | 71,843 | 64,491 | |
Total liabilities and stockholders' equity | $ 72,285 | $ 65,062 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Expenses | ||||||||||
Administrative and other | $ 7,160 | $ 6,664 | ||||||||
Applicable income tax benefit | 1,830 | 1,273 | ||||||||
Net income | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ (436) | $ 2,311 | $ 2,450 | $ 2,747 | 10,648 | 7,072 |
Parent Company [Member] | ||||||||||
Revenues | ||||||||||
Dividends - bank subsidiary - Union | 5,925 | 5,625 | ||||||||
Other income | 24 | 254 | ||||||||
Total revenues | 5,949 | 5,879 | ||||||||
Expenses | ||||||||||
Interest | 16 | 18 | ||||||||
Administrative and other | 536 | 419 | ||||||||
Total expenses | 552 | 437 | ||||||||
Income before applicable income tax benefit and equity in undistributed net income of subsidiary | 5,397 | 5,442 | ||||||||
Applicable income tax benefit | (113) | (89) | ||||||||
Income before equity in undistributed net income of subsidiary | 5,510 | 5,531 | ||||||||
Equity in undistributed net income - Union | 5,138 | 1,541 | ||||||||
Net income | $ 10,648 | $ 7,072 |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ (436) | $ 2,311 | $ 2,450 | $ 2,747 | $ 10,648 | $ 7,072 |
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
Decrease (increase) in other assets | (110) | (685) | ||||||||
Net cash provided by operating activities | 11,776 | 16,761 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Proceeds from sales of other investments | 46 | 44 | ||||||||
Purchases of other investments | (180) | (79) | ||||||||
Proceeds of Company-owned life insurance death benefit | 0 | 307 | ||||||||
Net cash provided by investing activities | (49,061) | (67,981) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Dividends paid | (5,501) | (5,328) | ||||||||
Issuance of common stock | 44 | 0 | ||||||||
Purchase of treasury stock | (13) | (107) | ||||||||
Net cash used in financing activities | 51,130 | 50,001 | ||||||||
Net decrease in cash | 13,845 | (1,219) | ||||||||
Dividends paid on Common Stock [Abstract] | ||||||||||
Dividends declared | 5,540 | 5,358 | ||||||||
Dividends reinvested | (39) | (30) | ||||||||
Dividends paid on Common Stock | 5,501 | 5,328 | ||||||||
Parent Company [Member] | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | 10,648 | 7,072 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
Equity in undistributed net income of Union | (5,138) | (1,541) | ||||||||
Decrease (increase) in other assets | 55 | (205) | ||||||||
Decrease in other liabilities | (137) | (233) | ||||||||
Net cash provided by operating activities | 5,428 | 5,093 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Proceeds from sales of other investments | 47 | 44 | ||||||||
Purchases of other investments | (7) | (12) | ||||||||
Proceeds of Company-owned life insurance death benefit | 0 | 281 | ||||||||
Net cash provided by investing activities | 40 | 313 | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Dividends paid | (5,501) | (5,328) | ||||||||
Issuance of common stock | 44 | 0 | ||||||||
Purchase of treasury stock | (13) | (107) | ||||||||
Net cash used in financing activities | (5,470) | (5,435) | ||||||||
Net decrease in cash | (2) | (29) | ||||||||
CASH | ||||||||||
Beginning of year | $ 48 | $ 77 | 48 | 77 | ||||||
End of year | $ 46 | $ 48 | 46 | 48 | ||||||
Supplemental Disclosures of Cash Flow Information | ||||||||||
Interest paid | 16 | 18 | ||||||||
Dividends paid on Common Stock [Abstract] | ||||||||||
Dividends declared | 5,540 | 5,358 | ||||||||
Dividends reinvested | (39) | (30) | ||||||||
Dividends paid on Common Stock | $ 5,501 | $ 5,328 |
Quarterly Financial Data (Detai
Quarterly Financial Data (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | |
Quarterly Financial Data [Line Items] | ||||||||||
Interest and dividend income | $ 9,294 | $ 9,131 | $ 8,923 | $ 8,654 | $ 8,571 | $ 8,095 | $ 7,943 | $ 7,571 | $ 36,002 | $ 32,180 |
Interest expense | 1,488 | 1,497 | 1,401 | 1,230 | 1,117 | 1,086 | 731 | 647 | 5,616 | 3,581 |
Net interest income | 7,806 | 7,634 | 7,522 | 7,424 | 7,454 | 7,009 | 7,212 | 6,924 | 30,386 | 28,599 |
Provision for loan losses | 425 | 150 | 150 | 50 | 150 | 150 | 150 | 0 | 775 | 450 |
Noninterest income | 2,969 | 2,732 | 2,452 | 2,170 | 2,398 | 2,452 | 2,152 | 2,471 | 10,323 | 9,473 |
Noninterest expenses | 7,135 | 7,001 | 6,807 | 6,513 | 10,322 | 6,525 | 6,306 | 6,124 | 27,456 | 29,277 |
Net income | $ 2,759 | $ 2,738 | $ 2,530 | $ 2,621 | $ (436) | $ 2,311 | $ 2,450 | $ 2,747 | $ 10,648 | $ 7,072 |
Earnings per common share | $ 0.61 | $ 0.62 | $ 0.56 | $ 0.59 | $ (0.10) | $ 0.52 | $ 0.54 | $ 0.62 | $ 2.38 | $ 1.58 |
Other Noninterest Income and _3
Other Noninterest Income and Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Income | ||
Income from life insurance | $ 281 | $ 488 |
Other income | 322 | 226 |
Total other income | 603 | 714 |
Expenses | ||
ATM network and debit card expense | 790 | 690 |
Advertising and public relations | 555 | 456 |
Vermont franchise tax | 678 | 620 |
Professional fees | 701 | 625 |
Director and advisory board fees | 502 | 450 |
Other expenses | 3,934 | 3,823 |
Total other expenses | $ 7,160 | $ 6,664 |