Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Dec. 31, 2022 | Feb. 28, 2023 | Jun. 30, 2022 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Document Period End Date | Dec. 31, 2022 | ||
Current Fiscal Year End Date | --12-31 | ||
Entity File Number | 001-15985 | ||
Entity Registrant Name | UNION BANKSHARES, INC. | ||
Entity Incorporation, State or Country Code | VT | ||
Entity Tax Identification Number | 03-0283552 | ||
Entity Address, Address Line One | P.O. BOX 667 | ||
Entity Address, Address Line Two | 20 LOWER MAIN STREET | ||
Entity Address, City or Town | MORRISVILLE | ||
Entity Address, State or Province | VT | ||
Entity Address, Postal Zip Code | 05661-0667 | ||
City Area Code | 802 | ||
Local Phone Number | 888-6600 | ||
Title of 12(b) Security | Common Stock, $2.00 par value | ||
Trading Symbol | UNB | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 104,500,623 | ||
Entity Common Stock, Shares Outstanding | 4,509,425 | ||
Documents Incorporated by Reference | Specifically designated portions of the following documents are incorporated by reference in the indicated Part of this Annual Report on Form 10-K: | ||
Entity Central Index Key | 0000706863 | ||
Document Fiscal Year Focus | 2022 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
Audit Information
Audit Information | 12 Months Ended |
Dec. 31, 2022 | |
Auditor Information [Abstract] | |
Auditor Name | Berry Dunn McNeil & Parker, LLC |
Auditor Location | Manchester, New Hampshire |
Auditor Firm ID | 136 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 4,504 | $ 4,659 |
Federal funds sold and overnight deposits | 33,381 | 61,263 |
Cash and cash equivalents | 37,885 | 65,922 |
Interest bearing deposits in banks | 16,428 | 13,196 |
Investment securities available-for-sale | 250,267 | 267,819 |
Other investments | 1,264 | 1,132 |
Total investments | 251,531 | 268,951 |
Loans held for sale | 1,178 | 13,829 |
Loans | 958,157 | 787,050 |
Allowance for loan losses | (8,339) | (8,336) |
Net deferred loan costs | 1,336 | 705 |
Net loans | 951,154 | 779,419 |
Premises and equipment, net | 20,479 | 21,615 |
Company-owned life insurance | 18,518 | 18,764 |
Other assets | 39,316 | 23,677 |
Total assets | 1,336,489 | 1,205,373 |
Deposits | ||
Noninterest bearing | 286,145 | 264,888 |
Interest bearing | 762,722 | 723,479 |
Time | 153,045 | 106,715 |
Total deposits | 1,201,912 | 1,095,082 |
Borrowed funds | 50,000 | 0 |
Subordinated notes | 16,205 | 16,171 |
Accrued interest and other liabilities | 13,152 | 9,779 |
Total liabilities | 1,281,269 | 1,121,032 |
Commitments and Contingencies (Notes 9, 15, 16, 18, 19 and 22) | ||
Stockholders’ Equity | ||
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,982,523 shares issued at December 31, 2022 and 4,967,093 shares issued at December 31, 2021 | 9,965 | 9,934 |
Additional-paid-in capital | 2,225 | 1,769 |
Retained earnings | 84,669 | 78,350 |
Treasury stock at cost; 473,936 shares at December 31, 2022 and 473,438 shares at December 31, 2021 | (4,220) | (4,160) |
Accumulated other comprehensive loss | (37,419) | (1,552) |
Total stockholders' equity | 55,220 | 84,341 |
Total liabilities and stockholders' equity | $ 1,336,489 | $ 1,205,373 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 31, 2022 | Dec. 31, 2021 |
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 2 | $ 2 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 4,982,523 | 4,967,093 |
Treasury stock, shares (in shares) | 473,936 | 473,438 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Interest and dividend income | ||
Interest and fees on loans | $ 38,358 | $ 36,261 |
Interest on debt securities: | ||
Taxable | 4,217 | 2,129 |
Tax exempt | 913 | 626 |
Dividends | 28 | 18 |
Interest on federal funds sold and overnight deposits | 245 | 100 |
Interest on interest bearing deposits in banks | 187 | 139 |
Total interest and dividend income | 43,948 | 39,273 |
Interest expense | ||
Interest on deposits | 3,522 | 3,147 |
Interest on short-term borrowed funds | 433 | 0 |
Interest on long-term borrowed funds | 0 | 219 |
Interest on subordinated notes | 569 | 199 |
Total interest expense | 4,524 | 3,565 |
Net interest income | 39,424 | 35,708 |
Provision for loan losses | 0 | 0 |
Net interest income after provision for loan losses | 39,424 | 35,708 |
Noninterest income | ||
Trust income | 838 | 808 |
Service fees | 6,859 | 6,516 |
Net gains on sales of investment securities available-for-sale | 31 | 0 |
Net gains on sales of loans held for sale | 1,004 | 4,956 |
Net loss on other investments | (60) | (21) |
Other income | 315 | 704 |
Total noninterest income | 8,987 | 12,963 |
Noninterest expenses | ||
Salaries and wages | 14,083 | 14,448 |
Employee benefits | 5,030 | 4,593 |
Occupancy expense, net | 1,913 | 1,890 |
Equipment expense | 3,692 | 3,447 |
Other expenses | 8,446 | 8,477 |
Total noninterest expenses | 33,164 | 32,855 |
Income before provision for income taxes | 15,247 | 15,816 |
Provision for income taxes | 2,632 | 2,646 |
Net income | $ 12,615 | $ 13,170 |
Basic earnings per common share (in usd per share) | $ 2.81 | $ 2.94 |
Diluted earnings per common share (in usd per share) | 2.79 | 2.92 |
Dividends per common share (in usd per share) | $ 1.40 | $ 1.32 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 12,615 | $ 13,170 |
Investment securities available-for-sale: | ||
Net unrealized holding losses arising during the year on investment securities available-for-sale | (35,842) | (4,188) |
Reclassification adjustment for net gains on investment securities available-for-sale realized in net income | (25) | 0 |
Total other comprehensive loss | (35,867) | (4,188) |
Total comprehensive (loss) income | $ (23,252) | $ 8,982 |
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 income (loss) |
Beginning balance (in shares) at Dec. 31, 2020 | 4,480,100 | |||||
Beginning balance at Dec. 31, 2020 | $ 80,867 | $ 9,910 | $ 1,393 | $ 71,097 | $ (4,169) | $ 2,636 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 13,170 | 13,170 | ||||
Other comprehensive income (loss) | (4,188) | (4,188) | ||||
Dividend reinvestment plan (in shares) | 1,291 | |||||
Dividend reinvestment plan | 40 | 29 | 11 | |||
Cash dividends declared | (5,917) | (5,917) | ||||
Stock based compensation expense (in shares) | 9,361 | |||||
Stock based compensation expense | 299 | $ 18 | 281 | |||
Exercise of stock options (in shares) | 3,000 | |||||
Exercise of stock options | 72 | $ 6 | 66 | |||
Purchase of treasury stock (in shares) | (97) | |||||
Purchase of treasury stock | (2) | (2) | ||||
Ending balance (in shares) at Dec. 31, 2021 | 4,493,655 | |||||
Ending balance at Dec. 31, 2021 | 84,341 | $ 9,934 | 1,769 | 78,350 | (4,160) | (1,552) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Net income | 12,615 | 12,615 | ||||
Other comprehensive income (loss) | (35,867) | (35,867) | ||||
Dividend reinvestment plan (in shares) | 2,153 | |||||
Dividend reinvestment plan | 60 | 41 | 19 | |||
Cash dividends declared | (6,296) | (6,296) | ||||
Stock based compensation expense (in shares) | 15,429 | |||||
Stock based compensation expense | 446 | $ 31 | 415 | |||
Purchase of treasury stock (in shares) | (2,650) | |||||
Purchase of treasury stock | (79) | (79) | ||||
Ending balance (in shares) at Dec. 31, 2022 | 4,508,587 | |||||
Ending balance at Dec. 31, 2022 | $ 55,220 | $ 9,965 | $ 2,225 | $ 84,669 | $ (4,220) | $ (37,419) |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 3 Months Ended | 12 Months Ended | ||
Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends per common share (in usd per share) | $ 0.35 | $ 0.35 | $ 1.40 | $ 1.32 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Cash Flows From Operating Activities | ||
Net income | $ 12,615 | $ 13,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation | 1,801 | 1,825 |
Deferred income tax (benefit) provision | (270) | 371 |
Net amortization of premiums on investment securities | 630 | 579 |
Equity in losses of limited partnerships | 1,138 | 1,011 |
Stock based compensation expense | 446 | 299 |
Net increase in unamortized loan costs | (631) | (851) |
Proceeds from sales of loans held for sale | 78,976 | 221,773 |
Origination of loans held for sale | (65,321) | (198,458) |
Net gains on sales of loans held for sale | (1,004) | (4,956) |
Net losses on disposals of premises and equipment | 0 | 108 |
Net gains on sales of investment securities available-for-sale | (31) | 0 |
Net gains on sales of other real estate owned | 0 | (13) |
Net losses on other investments | 60 | 21 |
(Increase) decrease in accrued interest receivable | (916) | 881 |
Amortization of core deposit intangible | 0 | 71 |
Amortization of debt issuance costs | 34 | 11 |
Increase in other assets | (225) | (5,831) |
Increase (decrease) in other liabilities | 1,729 | (821) |
Net cash provided by operating activities | 29,031 | 29,190 |
Interest bearing deposits in banks | ||
Proceeds from maturities and redemptions | 7,968 | 6,972 |
Purchases | (11,200) | (7,469) |
Investment securities available-for-sale | ||
Proceeds from sales | 6,827 | 8,717 |
Proceeds from maturities, calls and paydowns | 23,509 | 28,196 |
Purchases | (58,784) | (204,848) |
Net purchases of other investments | (192) | (106) |
Net increase in nonmarketable stock | (1,652) | (14) |
Net increase in loans | (171,111) | (15,931) |
Recoveries of loans charged off | 7 | 68 |
Net purchases of premises and equipment | (665) | (3,509) |
Investments in limited partnerships | (2,290) | (2,194) |
Proceeds from sales of other real estate owned | 0 | 110 |
Net cash used in investing activities | (207,583) | (190,008) |
Cash Flows From Financing Activities | ||
Repayment of long-term borrowings | 0 | (7,164) |
Net increase in short-term borrowings outstanding | 50,000 | 0 |
Net increase in noninterest bearing deposits | 21,257 | 49,643 |
Net increase in interest bearing deposits | 39,243 | 86,110 |
Net increase (decrease) in time deposits | 46,330 | (34,973) |
Proceeds from issuance of subordinated notes | 0 | 16,500 |
Debt issuance costs incurred with issuance of subordinated notes | 0 | (340) |
Exercise of stock options | 0 | 72 |
Purchase of treasury stock | (79) | (2) |
Dividends paid | (6,236) | (5,877) |
Net cash provided by financing activities | 150,515 | 103,969 |
Net decrease in cash and cash equivalents | (28,037) | (56,849) |
Cash and cash equivalents | ||
Beginning of year | 65,922 | 122,771 |
End of year | 37,885 | 65,922 |
Supplemental Disclosures of Cash Flow Information | ||
Interest paid | 4,394 | 3,449 |
Income taxes paid | 950 | 1,850 |
Supplemental Schedule of Noncash Investing and Financing Activities | ||
Other real estate acquired in settlement of loans | 0 | 47 |
Investment in limited partnerships acquired by capital contributions payable | 3,494 | 1,264 |
Right-of-use operating lease assets obtained in exchange for operating lease liabilities | 641 | 0 |
Dividends paid on Common Stock: | ||
Dividends declared | 6,296 | 5,917 |
Dividends reinvested | (60) | (40) |
Dividends paid | $ 6,236 | $ 5,877 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Significant Accounting Policies Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and its Subsidiary (together, 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 stockholders’ 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 2021 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 HTM: Held-to-maturity ALCO: Asset Liability Management Committee HUD: U.S. Department of Housing and Urban Development ALL: Allowance for loan losses ICS: Insured Cash Sweeps of the IntraFi Network ASC: Accounting Standards Codification IRS: Internal Revenue Service ASU: Accounting Standards Update MBS: Mortgage-backed security BHCA: Bank Holding Company Act of 1956 MPF: Mortgage Partnership Finance Program Board: Board of Directors MSRs: Mortgage Servicing rights bp or bps: Basis point(s) NASDAQ: NASDAQ Global Security Market Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OAO: Other assets owned CARES Act: Coronavirus Aid, Relief and Economic Security Act OCI: Other comprehensive income (loss) CDARS: Certificate of Deposit Accounts Registry Service of the IntraFi Network OFAC: U.S. Office of Foreign Assets Control CECL: Current Expected Credit Loss 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 PPP: Paycheck Protection Program COVID-19: Novel Coronavirus PPPLF: PPP Liquidity Facility of the FRB 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 Unit 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 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2014 Equity Plan: 2014 Equity Incentive Plan, as amended GAAP: Generally accepted accounting principles in the United States 2020 Plan: 2020 Amended and Restated Nonqualified Excess Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 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 Wealth 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, resulting in exposure to volatility with each state's real estate market. Additionally, the ability of borrowers 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. Wealth management operations Assets held by Union's Wealth 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 and 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 and charged 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 are 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. Loans originated under the PPP are also included in this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • 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 management's estimate of 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. 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 as noninterest income up to, but not in excess of, the prior impairment. 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 statements 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 amounting to $2.2 million, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition. 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. 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 $2.7 million and $1.1 million at December 31, 2022 and 2021, 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 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 10.) Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statements of income. Earnings per common share Basic EPS is calculated 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. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potential dilutive common shares outstanding during the period. (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. (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. (See Notes 18 and 19.) Such financial instruments are recorded in the financial statements when they become fixed and certain. Comprehensive (loss) income 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, are not reflected in the consolidated statements 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 sheets (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 assets through an agreement to repurchase them before their maturity. Stock Based Compensation Under the Company's 2014 Equity Plan, as amended and approved by the stockholders in May 2022, 150,000 shares of the Company’s common stock 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. Stock based compensation awards are measured at the fair value of the stock at the grant date and recognized as expense over the period in which they vest. (See Note 16.) Segment Reporting Operating segments are the components of an entity for which separate financial information is ava |
Restrictions on Cash and Cash E
Restrictions on Cash and Cash Equivalents | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Restrictions on Cash and Cash Equivalents | 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: 2022 2021 (Dollars in thousands) Noninterest bearing accounts $ 691 $ 336 Federal Reserve Bank of Boston 33,336 61,047 FHLB of Boston 187 692 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. |
Interest Bearing Deposits in Ba
Interest Bearing Deposits in Banks | 12 Months Ended |
Dec. 31, 2022 | |
Interest Bearing Deposits in Banks [Abstract] | |
Interest Bearing Deposits in Banks | Interest Bearing Deposits in BanksInterest 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, 2022, the Company held $16.4 million in certificates with rates ranging from 0.40% to 5.06% and various maturity dates through 2026, with $7.7 million scheduled to mature in 2023. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Investment securities as of the balance sheet dates consisted of the following: December 31, 2022 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 45,090 $ — $ (5,845) $ 39,245 Agency MBS 198,478 104 (34,150) 164,432 State and political subdivisions 47,722 281 (7,537) 40,466 Corporate 6,343 — (219) 6,124 Total $ 297,633 $ 385 $ (47,751) $ 250,267 December 31, 2021 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 37,176 $ 55 $ (593) $ 36,638 Agency MBS 181,216 574 (3,540) 178,250 State and political subdivisions 44,068 1,293 (107) 45,254 Corporate 7,323 381 (27) 7,677 Total $ 269,783 $ 2,303 $ (4,267) $ 267,819 At December 31, 2022 and 2021, there were no investment securities HTM. Investment securities AFS with a carrying amount of $433 thousand and $608 thousand were pledged as collateral for public unit deposits or for other purposes as required or permitted by law at December 31, 2022 and 2021, respectively. 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, 2022 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 4 $ 8,000 $ (533) 31 $ 31,103 $ (5,312) 35 $ 39,103 $ (5,845) Agency MBS 31 24,306 (2,192) 62 134,297 (31,958) 93 158,603 (34,150) State and political 39 15,457 (1,846) 27 18,613 (5,691) 66 34,070 (7,537) Corporate 10 4,719 (124) 3 1,405 (95) 13 6,124 (219) Total 84 $ 52,482 $ (4,695) 123 $ 185,418 $ (43,056) 207 $ 237,900 $ (47,751) December 31, 2021 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 18 $ 29,754 $ (464) 14 $ 3,885 $ (129) 32 $ 33,639 $ (593) Agency MBS 41 130,742 (2,252) 17 32,955 (1,288) 58 163,697 (3,540) State and political 17 17,483 (107) — — — 17 17,483 (107) Corporate 2 985 (15) 1 488 (12) 3 1,473 (27) Total 78 $ 178,964 $ (2,838) 32 $ 37,328 $ (1,429) 110 $ 216,292 $ (4,267) The Company has the ability to hold the investment securities that had unrealized losses at December 31, 2022 for the foreseeable future. The decline in fair value is the result of market conditions and not attributable to credit quality in the investment securities and no declines were deemed by management to be OTT at December 31, 2022 or 2021. The following table presents the proceeds from sales and calls resulting in gross gains and gross losses from the disposition of AFS securities: For the Years Ended December 31, 2022 2021 (Dollars in thousands) Proceeds from sales $ 6,827 $ 8,717 Proceeds from calls 502 789 Gross gains 81 58 Gross losses (50) (58) Net gains $ 31 $ — The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2022, were as follows: Amortized Fair Available-for-sale (Dollars in thousands) Due in one year or less $ 5 $ 5 Due from one to five years 22,961 20,827 Due from five to ten years 27,043 23,806 Due after ten years 49,146 41,197 99,155 85,835 Agency MBS 198,478 164,432 Total $ 297,633 $ 250,267 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, 2022 | |
Transfers and Servicing [Abstract] | |
Loans Held for Sale and Loan Servicing | Loans Held for Sale and Loan ServicingAt December 31, 2022 and 2021, 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 $660.7 million and $659.3 million at December 31, 2022 and 2021, respectively. Loans sold consisted of the following during the years ended December 31: 2022 2021 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 77,972 $ 1,004 $ 216,817 $ 4,956 There were no obligations to repurchase loans for any amount at December 31, 2022, but there were contractual risk sharing commitments on certain sold loans totaling $415 thousand as of such date. (See Note 19.) The Company generally retains the servicing rights on loans sold. At December 31, 2022 and 2021, the unamortized balance of servicing rights on loans sold with servicing retained was $2.0 million and $2.5 million, respectively, and is included in Other assets. The estimated fair value of these servicing rights was in excess of their carrying value at December 31, 2022 and 2021, and therefore no impairment reserve was necessary. The 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, 2022 2021 (Dollars in thousands) Capitalization of servicing rights $ 480 $ 1,454 Amortization of servicing rights 945 1,211 Net capitalization of servicing rights $ (465) $ 243 |
Loans
Loans | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Loans | Loans The composition of Net loans at December 31, was as follows: 2022 2021 (Dollars in thousands) Residential real estate $ 352,433 $ 246,827 Construction real estate 96,620 65,149 Commercial real estate 377,947 344,816 Commercial 40,973 49,788 Consumer 2,204 2,376 Municipal 87,980 78,094 Gross loans 958,157 787,050 Allowance for loan losses (8,339) (8,336) Net deferred loan costs 1,336 705 Net loans $ 951,154 $ 779,419 There were 4 and 154 PPP loans totaling $205 thousand and $13.6 million classified as commercial loans as of December 31, 2022 and 2021, respectively. As of December 31, 2022 and 2021, there were PPP deferred loan origination fees of $7 thousand and $558 thousand, respectively, remaining to be amortized into interest income over the lives of the respective loans. PPP loan origination fees of $551 thousand and $2.8 million were recognized in earnings during the years ended December 31, 2022 and 2021, respectively. Qualifying residential first mortgage loans and certain commercial real estate loans with a carrying value of $272.9 million and $224.4 million were pledged as collateral for borrowings from the FHLB under a blanket lien at December 31, 2022 and 2021, respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2022 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 350,341 $ 1,724 $ 79 $ 186 $ 103 $ 352,433 Construction real estate 96,085 529 — — 6 96,620 Commercial real estate 375,311 515 19 — 2,102 377,947 Commercial 40,806 7 160 — — 40,973 Consumer 2,197 7 — — — 2,204 Municipal 87,980 — — — — 87,980 Total $ 952,720 $ 2,782 $ 258 $ 186 $ 2,211 $ 958,157 December 31, 2021 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 245,169 $ 1,328 $ 130 $ 53 $ 147 $ 246,827 Construction real estate 64,939 72 — — 138 65,149 Commercial real estate 340,209 242 — — 4,365 344,816 Commercial 49,699 36 8 45 — 49,788 Consumer 2,376 — — — — 2,376 Municipal 78,094 — — — — 78,094 Total $ 780,486 $ 1,678 $ 138 $ 98 $ 4,650 $ 787,050 There was one residential real estate loan totaling $28 thousand in process of foreclosure at December 31, 2022 and no loans in process of foreclosure at December 31, 2021. Aggregate interest not recognized on nonaccrual loans was $59 thousand and $504 thousand for the years ended December 31, 2022 and 2021, respectively. |
Allowance for Loan Losses and C
Allowance for Loan Losses and Credit Quality | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality Changes in the ALL, by class of loans, were as follows for the years ended: December 31, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2021 $ 2,068 $ 837 $ 4,122 $ 275 $ 11 $ 86 $ 937 $ 8,336 Provision (credit) for loan 349 195 (187) 25 (3) 9 (388) — Recoveries of amounts — — — 2 5 — — 7 2,417 1,032 3,935 302 13 95 549 8,343 Amounts charged off — — — (1) (3) — — (4) Balance, December 31, 2022 $ 2,417 $ 1,032 $ 3,935 $ 301 $ 10 $ 95 $ 549 $ 8,339 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2020 $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 Provision (credit) for loan 226 74 (77) (183) (3) (128) 91 — Recoveries of amounts 66 — — — 2 — — 68 2,068 837 4,122 275 14 86 937 8,339 Amounts charged off — — — — (3) — — (3) Balance, December 31, 2021 $ 2,068 $ 837 $ 4,122 $ 275 $ 11 $ 86 $ 937 $ 8,336 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, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 21 $ — $ 9 $ — $ — $ — $ — $ 30 Collectively evaluated 2,396 1,032 3,926 301 10 95 549 8,309 Total allocated $ 2,417 $ 1,032 $ 3,935 $ 301 $ 10 $ 95 $ 549 $ 8,339 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 26 $ — $ 20 $ — $ — $ — $ — $ 46 Collectively evaluated 2,042 837 4,102 275 11 86 937 8,290 Total allocated $ 2,068 $ 837 $ 4,122 $ 275 $ 11 $ 86 $ 937 $ 8,336 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, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,473 $ 58 $ 7,933 $ 7 $ — $ — $ 9,471 Collectively evaluated 350,960 96,562 370,014 40,966 2,204 87,980 948,686 Total $ 352,433 $ 96,620 $ 377,947 $ 40,973 $ 2,204 $ 87,980 $ 958,157 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,750 $ 198 $ 4,819 $ 9 $ — $ — $ 6,776 Collectively evaluated 245,077 64,951 339,997 49,779 2,376 78,094 780,274 Total $ 246,827 $ 65,149 $ 344,816 $ 49,788 $ 2,376 $ 78,094 $ 787,050 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, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 328,885 $ 47,356 $ 258,175 $ 36,338 $ 2,197 $ 87,980 $ 760,931 Satisfactory/Monitor 21,429 49,206 111,077 4,368 7 — 186,087 Substandard 2,119 58 8,695 267 — — 11,139 Total $ 352,433 $ 96,620 $ 377,947 $ 40,973 $ 2,204 $ 87,980 $ 958,157 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 227,684 $ 39,135 $ 191,902 $ 45,407 $ 2,371 $ 78,094 $ 584,593 Satisfactory/Monitor 16,820 25,816 147,645 4,301 5 — 194,587 Substandard 2,323 198 5,269 80 — — 7,870 Total $ 246,827 $ 65,149 $ 344,816 $ 49,788 $ 2,376 $ 78,094 $ 787,050 The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2022 and 2021: December 31, 2022 For The Year Ended December 31, 2022 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 190 $ 200 $ 21 Commercial real estate 2,068 2,068 9 With an allowance recorded 2,258 2,268 30 Residential real estate 1,283 1,787 — Construction real estate 58 83 — Commercial real estate 5,865 6,403 — Commercial 7 7 — With no allowance recorded 7,213 8,280 — Residential real estate 1,473 1,987 21 $ 1,570 $ 101 Construction real estate 58 83 — 116 27 Commercial real estate 7,933 8,471 9 5,822 185 Commercial 7 7 — 8 1 Total $ 9,471 $ 10,548 $ 30 $ 7,516 $ 314 December 31, 2021 For The Year Ended December 31, 2021 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 199 $ 209 $ 26 Commercial real estate 1,591 1,764 20 With an allowance recorded 1,790 1,973 46 Residential real estate 1,551 2,043 — Construction real estate 198 218 — Commercial real estate 3,228 3,274 — Commercial 9 9 — With no allowance recorded 4,986 5,544 — Residential real estate 1,750 2,252 26 $ 1,749 $ 197 Construction real estate 198 218 — 205 4 Commercial real estate 4,819 5,038 20 4,552 217 Commercial 9 9 — 82 9 Total $ 6,776 $ 7,517 $ 46 $ 6,588 $ 427 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2022 and 2021 totaling $341 thousand and $423 thousand, respectively. The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2022 December 31, 2021 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 25 $ 1,473 29 $ 1,750 Construction real estate 2 58 2 81 Commercial real estate 1 172 3 375 Commercial 1 7 1 9 Total 29 $ 1,710 35 $ 2,215 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. There was no new TDR activity for the year ended December 31, 2022. The following table provides new TDRs for the year ended December 31, 2021: New TDRs During the Year Ended December 31,2021 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 2 $ 445 $ 445 There were no TDR loans modified within the previous twelve months that had subsequently defaulted during the years ended December 31, 2022 or 2021 . TDR loans are considered defaulted at 90 days past due. At December 31, 2022 and 2021, 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, 2022 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment | Premises and Equipment The major classes of premises and equipment and accumulated depreciation at December 31, were as follows: 2022 2021 (Dollars in thousands) Land and land improvements $ 4,466 $ 4,466 Building and improvements 20,432 20,412 Furniture and equipment 11,636 11,310 Construction in progress and deposits on equipment 361 122 36,895 36,310 Less accumulated depreciation (16,416) (14,695) $ 20,479 $ 21,615 Depreciation included in Occupancy and Equipment expenses amounted to $1.8 million for the years ended December 31, 2022 and 2021. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Leases | LeasesAs of December 31, 2022, the Company had operating real estate leases for two branch locations, one loan production office, land upon which a branch location was constructed and two ATM locations. The lease agreements have maturity dates ranging from October 2023 to September 2047. As of December 31, 2022, the weighted average remaining life of the lease term for the operating leases was 20.38 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 lease at adoption of the ASU or the date the lease became effective. As of December 31, 2022, the weighted average discount rate for operating leases was 3.55%. The right-of-use assets and lease liabilities related to operating leases were as follows at December 31: 2022 2021 (Dollars in thousands) Right-of-use assets included in Other assets $ 2,152 $ 1,612 Lease liabilities included in Accrued interest and other liabilities 2,255 1,690 Total estimated rental commitments for operating leases were as follows as of December 31, 2022: (Dollars in thousands) 2023 $ 168 2024 157 2025 159 2026 161 2027 168 Thereafter 2,520 Total $ 3,333 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, 2022 (Dollars in thousands) Undiscounted cash flows $ 3,333 Discount effect of cash flows (1,078) Lease liabilities $ 2,255 Operating lease costs, included in Occupancy expense, net in the consolidated statements of income were $206 thousand and $195 thousand for the years ended December 31, 2022 and 2021, respectively. Occupancy expense is shown in the consolidated statements of income, net of rental income of $273 thousand and $251 thousand for the years ended December 31, 2022 and 2021, respectively. |
Investment in Real Estate Limit
Investment in Real Estate Limited Partnerships | 12 Months Ended |
Dec. 31, 2022 | |
Investment In Real Estate Limited Partnerships [Abstract] | |
Investment in Real Estate Limited Partnerships | 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 Vermont and New Hampshire. The following is a summary of investments in real estate limited partnerships at December 31: 2022 2021 (Dollars in thousands) Carrying values of investments carried at equity included in Other assets $ 11,009 $ 7,572 Capital contribution payable included in Accrued interest and other liabilities 3,442 1,158 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, 2022 2021 (Dollars in thousands) Provision for undistributed net losses of limited partnership investments $ 1,138 $ 1,011 Federal income tax credits related to limited partnership investments (1,110) (1,057) Net effect on Provision for income taxes $ 28 $ (46) |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Deposits | Deposits The following is a summary of interest bearing deposits at December 31: 2022 2021 (Dollars in thousands) Interest bearing checking accounts $ 329,785 $ 281,638 Savings and money market accounts 432,937 441,841 Time deposits, $250,000 and over 26,357 16,223 Other time deposits 126,688 90,492 $ 915,767 $ 830,194 Included in other time deposits are brokered deposits of $33.0 million at December 31, 2022. There were no brokered deposits at December 31, 2021. Reciprocal deposits of $221.6 million and $168.9 million at December 31, 2022 and 2021, respectively, are included in deposit balances in the consolidated balance sheets. The following is a summary of time deposits by maturity at December 31, 2022: (Dollars in thousands) 2023 $ 100,935 2024 42,513 2025 5,327 2026 2,099 2027 2,171 $ 153,045 |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | Borrowed Funds The Company's borrowed funds consisted of borrowings from the FHLB of $50.0 million at a weighted average rate of 4.41% at December 31, 2022 and there were no borrowed funds at December 31, 2021. 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, 2022, pledged loans with a carrying value of $272.9 million provided a gross borrowing capacity of $170.4 million at the FHLB, less outstanding borrowings and other credit subject to collateralization of $93.5 million, resulting in remaining year-end available borrowing capacity of $76.9 million. At December 31, 2021, pledged loans with a carrying value of $224.4 million provided a gross borrowing capacity of $138.7 million at the FHLB, less outstanding borrowings and other credit subject to collateralization of $22.0 million, resulting in remaining year-end available borrowing capacity of $116.7 million. Under a separate agreement with the FHLB, 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 $42.5 million and $37.5 million were utilized as collateral for these deposits at December 31, 2022 and 2021, respectively. Total fees paid by the Company in connection with the issuance of these letters of credit were $34 thousand and $45 thousand for the years ended December 31, 2022 and 2021, respectively. Union also maintains an IDEAL Way Line of Credit with the FHLB. The total line available was $551 thousand as of December 31, 2022 and 2021. |
Subordinated Notes
Subordinated Notes | 12 Months Ended |
Dec. 31, 2022 | |
Debt Disclosure [Abstract] | |
Subordinated Notes | Subordinated Notes In August 2021, the Company completed the private placement of $16.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 (the "Notes") to certain qualified institutional buyers and accredited investors. The Notes initially bear interest, payable semi-annually, at the rate of 3.25% per annum, until September 1, 2026. From and including September 1, 2026, the interest rate applicable to the outstanding principal amount due will reset quarterly to the then current three-month secured overnight financing rate (SOFR) plus 263 basis points. The Company may, at its option, beginning with the interest payment date of September 1, 2026, but not generally prior thereto, and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part. The Notes have been structured to qualify as Tier 2 capital instruments for the Company under bank regulatory guidelines. The Company used the proceeds to provide additional capital support to the Company's wholly-owned subsidiary, Union Bank, to support growth and for other general corporate purposes. The unamortized issuance costs of the Notes were $295 thousand and $329 thousand at December 31, 2022 and 2021, respectively. The Company recorded $34 thousand and $11 thousand of issuance costs in interest expense for the year ended December 31, 2022 and 2021, respectively. The Notes are presented net of unamortized issuance costs in the consolidated balance sheets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of the provision for income taxes for the years ended December 31, were as follows: 2022 2021 (Dollars in thousands) Current federal tax provision $ 2,734 $ 2,149 Current state tax provision 168 126 Deferred tax (benefit) provision (270) 371 $ 2,632 $ 2,646 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: 2022 2021 (Dollars in thousands) Computed “expected” tax expense $ 3,202 $ 3,321 State taxes 133 100 Tax exempt interest (479) (446) Increase in cash surrender value of COLI (107) (65) Tax credits (1,140) (1,093) Equity in losses of limited partnerships 965 842 Non-deductible expenses 37 24 Other 21 (37) $ 2,632 $ 2,646 Listed below are the significant components of the net deferred tax asset at December 31: 2022 2021 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,891 $ 1,813 Deferred compensation 345 308 Origination fees 2 121 Loans held for sale 5 56 Core deposit intangible 88 109 Limited partnership investments 15 — Unrealized loss on investment securities available-for-sale 9,947 412 Other 92 74 Total deferred tax asset 12,385 2,893 Components of the deferred tax liability Depreciation (1,226) (1,397) Mortgage servicing rights (461) (543) Limited partnership investments — (136) Goodwill (389) (341) Prepaid expenses (190) (162) Total deferred tax liability (2,266) (2,579) Net deferred tax asset $ 10,119 $ 314 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, 2022 will be realized and therefore no valuation allowance is warranted. The net deferred income tax asset is included in Other assets in the consolidated balance sheets at December 31, 2022 and 2021, 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, 2022 or 2021. 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 any taxing authority, the Company's tax years ended December 31, 2019 through 2021 are open to examination under applicable statutes of limitation. The 2022 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, 2022 | |
Retirement Benefits [Abstract] | |
Employee Benefit Plans | 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, which are matched by Union equal to 50% of the first 6% of the compensation contributed. All employees meeting service requirements are eligible to participate in the 401(k) 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 401(k) plan for all eligible participants in an amount equal to 3% of eligible earnings of each eligible participant. Additionally, in 2022 and 2021 a discretionary profit-sharing contribution was made to the 401(k) plan in an amount equal to 3% percent of each employee's eligible earnings, as defined by the 401(k) plan. The following table summarizes employer contributions for the years ended December 31, 2022 and 2021: 2022 2021 (Dollars in thousands) Employer matching $ 323 $ 320 Profit sharing 361 367 Safe harbor 401 395 Total $ 1,085 $ 1,082 Nonqualified Deferred Compensation Plans: The Company and Union have two nonqualified deferred compensation plans for directors and certain key officers, referred to in this Note as the 2008 Plan and the 2020 Plan. The Company accrued an expense of $7 thousand in 2022 and 2021 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 $253 thousand and $292 thousand at December 31, 2022 and 2021, 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 $433 thousand and $1.1 million at December 31, 2022 and 2021, respectively, and are included in Company-owned life insurance in the Company's consolidated balance sheets. The 2020 Plan, which amended and restated an earlier plan adopted in 2006, 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. Although the Plan did not originally allow for employer contributions, the Board subsequently determined that employer contributions may be appropriate in certain circumstances and accordingly amended and restated the plan effective February 1, 2020 to permit such contributions. 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 2020 Plan is unfunded, representing general unsecured obligations of the Company of $1.3 million and $1.1 million as of December 31, 2022 and 2021, respectively, and are included in Accrued interest and other liabilities in the consolidated balance sheets, including employer contributions of $39 thousand and $24 thousand accrued as of December 31, 2022 and 2021, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Stock Based Compensation | Stock Based Compensation The Company's stock-based compensation plan is the Union Bankshares, Inc. 2014 Equity Incentive Plan, as amended in May 2022. Under the 2014 Equity Plan, 150,000 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, 2022, the only outstanding grants under the plan consisted of RSUs, as described in the table below. 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 2022 and 2021, 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 respective Award Plan Summaries as of December 31, 2022: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2021 Award 17,685 $ 26.73 1,745 2022 Award 15,705 31.99 7,822 Total 33,390 9,567 Unrecognized compensation expense related to the unvested RSUs was $297 thousand and $317 thousand, as of December 31, 2022 and 2021, respectively. On May 18, 2022, the Company's board of directors, as a component of total director compensation, granted an aggregate of 1,323 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 in May 2023, 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. Director compensation expense related to this award is estimated to be $38 thousand of which $22 thousand has been recorded for the year ended December 31, 2022. Stock options. The following summarizes information regarding the proceeds received by the Company from the exercise of incentive stock options during the year ended December 31, 2021: 2021 (Dollars in thousands, except per share data) Proceeds received $ 72 Number of shares exercised 3,000 Weighted average price per share $ 24.00 Total intrinsic value of options exercised $ 27 There were no options issued under the 2014 Equity Plan during the years ended December 31, 2022 or 2021 and no compensation cost relating to options charged to income in 2022 or 2021. There were no stock options outstanding under the 2014 Equity Plan as of December 31, 2022 or 2021. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings Per Share The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the years ended December 31, 2022 and 2021: 2022 2021 (Dollars in thousands, except per share data) Net income $ 12,615 $ 13,170 Weighted average common shares outstanding for basic EPS 4,496,169 4,483,791 Dilutive effect of stock-based awards (1) 18,055 25,157 Weighted-average common and potential common shares for diluted EPS 4,514,224 4,508,948 Earnings per common share: Basic EPS $ 2.81 $ 2.94 Diluted EPS $ 2.79 $ 2.92 ____________________ (1) Dilutive effect of stock based awards represents the effect of the assumed exercise of stock options and vesting of restricted stock units. Unvested awards do not have dividend or dividend equivalent rights. |
Financial Instruments With Off-
Financial Instruments With Off-Balance-Sheet Risk | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Financial Instruments With Off-Balance-Sheet Risk | 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, 2022 and 2021, the Company had binding loan commitments to sell residential mortgage loans at fixed rates totaling $904 thousand and $2.7 million, respectively. The fair value adjustment 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 2022 2021 (Dollars in thousands) Commitments to originate loans $ 39,217 $ 48,910 Unused lines of credit 185,539 168,442 Standby and commercial letters of credit 1,762 2,158 Credit card arrangements 241 170 MPF credit enhancement obligation, net (See Note 19) 396 428 Commitment to purchase investment in a real estate limited partnership 3,000 4,574 Total $ 230,155 $ 224,682 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 creditworthiness 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, 2022 and 2021. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 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. The Company had sold $33.9 million and $33.5 million in loans through the MPF program since inception of its participation in the program, with an outstanding principal balance of $9.1 million and $9.5 million as of December 31, 2022 and 2021, respectively. The volume of loans sold to the MPF program and the corresponding Credit Enhancement Obligation are closely monitored by management. As of December 31, 2022 and 2021, the notional amount of the maximum contingent contractual liability related to this program was $415 thousand and $447 thousand, respectively, of which $19 thousand had been recorded as a reserve through accrued interest and other liabilities at December 31, 2022 and 2021. 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, 2022 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement | 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 : Certain U.S. Treasury notes have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of 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, 2022 and 2021, segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Quoted Prices in Active Markets for Significant Other Observable Inputs Significant December 31, 2022: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 39,245 $ 2,551 $ 36,694 $ — Agency MBS 164,432 — 164,432 — State and political subdivisions 40,466 — 40,466 — Corporate 6,124 — 6,124 — Total debt securities $ 250,267 $ 2,551 $ 247,716 $ — Other investments: Mutual funds $ 1,264 $ 1,264 $ — $ — December 31, 2021: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 36,638 $ 2,875 $ 33,763 $ — Agency MBS 178,250 — 178,250 — State and political subdivisions 45,254 — 45,254 — Corporate 7,677 — 7,677 — Total debt securities $ 267,819 $ 2,875 $ 264,944 $ — Other investments: Mutual funds $ 1,132 $ 1,132 $ — $ — There were no transfers in or out of Levels 1 and 2 during the years ended December 31, 2022 and 2021, 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, 2022 or 2021. 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, 2022 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 37,885 $ 37,885 $ 37,885 $ — $ — Interest bearing deposits in banks 16,428 16,428 — 16,428 — Investment securities 251,531 251,531 3,815 247,716 — Loans held for sale 1,178 1,202 — 1,202 — Loans, net Residential real estate 350,507 319,066 — — 319,066 Construction real estate 95,723 94,231 — — 94,231 Commercial real estate 373,990 358,897 — — 358,897 Commercial 40,729 38,588 — — 38,588 Consumer 2,197 2,161 — — 2,161 Municipal 88,008 86,306 — — 86,306 Accrued interest receivable 4,163 4,163 — 1,014 3,149 Nonmarketable equity securities 2,816 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 286,145 286,145 286,145 — — Interest bearing 762,722 762,722 762,722 — — Time 153,045 149,166 — 149,166 — Short-term borrowed funds 50,000 49,997 — 49,997 — Subordinated notes 16,205 14,037 — 14,037 — Accrued interest payable 354 354 — 354 — December 31, 2021 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 65,922 $ 65,922 $ 65,922 $ — $ — Interest bearing deposits in banks 13,196 13,196 — 13,196 — Investment securities 268,951 268,951 4,007 264,944 — Loans held for sale 13,829 14,088 — 14,088 — Loans, net Residential real estate 244,980 246,573 — — 246,573 Construction real estate 64,370 64,539 — — 64,539 Commercial real estate 340,066 341,451 — — 341,451 Commercial 49,558 48,682 — — 48,682 Consumer 2,367 2,350 — — 2,350 Municipal 78,078 78,748 — — 78,748 Accrued interest receivable 3,248 3,248 — 734 2,514 Nonmarketable equity securities 1,164 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 264,888 264,888 264,888 — — Interest bearing 723,479 723,479 723,479 — — Time 106,715 106,588 — 106,588 — Subordinated notes 16,171 16,179 — 16,179 — Accrued interest payable 225 225 — 225 — 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, 2022 | |
Related Party Transactions [Abstract] | |
Transactions with Related Parties | Transactions with Related Parties The Company has had, and is 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). In the opinion of management, these transactions were made on the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with unrelated parties and 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: 2022 2021 (Dollars in thousands) Balance, January 1, $ 1,146 $ 731 New loans and advances on lines 1,032 2,050 Repayments (957) (1,635) Other, net (929) — Balance, December 31, $ 292 $ 1,146 Balance available on lines of credit or loan commitments $ 133 $ 571 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, 2022 or 2021. Deposit accounts of related parties were $1.0 million and $2.2 million at December 31, 2022 and 2021, respectively. Union's Wealth Management Group also had invested $139 thousand and $204 thousand in certificates of deposit with Union at December 31, 2022 and 2021, respectively. |
Regulatory Capital Requirements
Regulatory Capital Requirements | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Regulatory Capital Requirements | 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. Beginning with the March 31, 2020 regulatory capital calculation, 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 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, 2022, the Tier I leverage ratio was 6.66% and 7.84% for the Company and Union, respectively. The Company and Union's risk-based capital ratios exceeded regulatory guidelines at December 31, 2022 and 2021, and, specifically, Union was "well capitalized" under Prompt Corrective Action provisions for each period. There were no conditions or events known to management that occurred subsequent to December 31, 2022 and prior to the publication of these financial statements that would change the Company's or Union'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 To Be Well As of December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 114,959 13.98 % $ 65,785 8.00 % N/A N/A Tier 1 capital to risk weighted assets 90,415 11.00 % 49,317 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 90,415 11.00 % 36,988 4.50 % N/A N/A Tier 1 capital to average assets 90,415 6.66 % 54,303 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 114,618 13.95 % $ 65,731 8.00 % $ 82,163 10.00 % Tier 1 capital to risk weighted assets 106,279 12.94 % 49,279 6.00 % 65,706 8.00 % Common Equity Tier 1 to risk weighted assets 106,279 12.94 % 36,959 4.50 % 53,386 6.50 % Tier 1 capital to average assets 106,279 7.84 % 54,224 4.00 % 67,780 5.00 % Actual For Capital To be Well As of December 31, 2021 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 108,175 15.39 % $ 56,231 8.00 % N/A N/A Tier 1 capital to risk weighted assets 83,668 11.90 % 42,186 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 83,668 11.90 % 31,639 4.50 % N/A N/A Tier 1 capital to average assets 83,668 7.12 % 47,004 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 107,480 15.31 % $ 56,162 8.00 % $ 70,202 10.00 % Tier 1 capital to risk weighted assets 99,144 14.12 % 42,129 6.00 % 56,172 8.00 % Common Equity Tier 1 to risk weighted assets 99,144 14.12 % 31,597 4.50 % 45,640 6.50 % Tier 1 capital to average assets 99,144 8.44 % 46,988 4.00 % 58,735 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, 2022 | |
Class of Stock Disclosures [Abstract] | |
Treasury Stock | 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 2023 and will expire on December 31, 2023 unless reauthorized. The Company repurchased 2,650 shares, at a total cost of $79 thousand, under this program during 2022, while 97 shares, at a total cost of $2 thousand were repurchased under the program during 2021. Since inception, the Company had repurchased 20,440 shares of its common stock as of December 31, 2022, at prices ranging from $17.86 to $48.82 per share and at a total cost of $553 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, 2022, 7,583 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, 2022 | |
Stockholders' Equity Note [Abstract] | |
Other Comprehensive Income | Other Comprehensive Loss The components of Accumulated OCI, net of tax, at December 31 were: 2022 2021 (Dollars in thousands) Net unrealized loss on investment securities AFS $ (37,419) $ (1,552) The following table discloses the tax effects allocated to each component of OCI for the years ended: December 31, 2022 December 31, 2021 Before-Tax Amount Tax Benefit/ Expense Net-of-Tax Amount Before-Tax Amount Tax Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities AFS: Net unrealized holding losses arising during the year on investment securities AFS $ (45,370) $ 9,528 $ (35,842) $ (5,300) $ 1,112 $ (4,188) Reclassification adjustment for net gains on investment securities AFS realized in net income (31) 6 (25) — — — Total other comprehensive loss $ (45,401) $ 9,534 $ (35,867) $ (5,300) $ 1,112 $ (4,188) The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31: Reclassification Adjustment Description 2022 2021 Affected Line Item in (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities AFS $ (31) $ — Net gains on sales of investment securities available-for-sale Tax expense 6 — Provision for income taxes Total reclassifications $ (25) $ — Net income |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Events occurring subsequent to December 31, 2022 have been evaluated as to their potential impact on the consolidated financial statements. On January 18, 2023, the Board of Directors declared a cash dividend of $0.36 per share for the quarter, an increase of 2.9% from the cash dividend of $0.35 paid in recent prior quarters. The dividend is payable February 2, 2023 to shareholders of record as of January 28, 2023. |
Condensed Financial Information
Condensed Financial Information (Parent Company Only) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information (Parent Company Only) | 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, 2022 and 2021 2022 2021 (Dollars in thousands) ASSETS Cash $ 156 $ 342 Other investments 75 73 Investment in subsidiary - Union 71,083 99,817 Other assets 644 837 Total assets $ 71,958 $ 101,069 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Subordinated notes $ 16,205 $ 16,171 Accrued interest and other liabilities 533 557 Total liabilities 16,738 16,728 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,982,523 shares issued at December 31, 2022 and 4,967,093 shares issued at December 31, 2021 9,965 9,934 Additional paid-in capital 2,225 1,769 Retained earnings 84,669 78,350 Treasury stock at cost; 473,936 shares at December 31, 2022 and 473,438 shares at December 31, 2021 (4,220) (4,160) Accumulated other comprehensive loss (37,419) (1,552) Total stockholders' equity 55,220 84,341 Total liabilities and stockholders' equity $ 71,958 $ 101,069 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, 2022 and 2021 2022 2021 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 6,850 $ 5,400 Other income 20 26 Total revenues 6,870 5,426 Expenses Interest on subordinated notes 569 200 Administrative and other 544 600 Total expenses 1,113 800 Income before applicable income tax benefit and equity in undistributed 5,757 4,626 Applicable income tax benefit (233) (164) Income before equity in undistributed net income of subsidiary 5,990 4,790 Equity in undistributed net income - Union 6,625 8,380 Net income $ 12,615 $ 13,170 UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2022 and 2021 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 12,615 $ 13,170 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (6,625) (8,380) Net losses (gains) on other investments 10 (6) Amortization of debt issuance costs 34 11 Decrease in other assets 193 32 (Decrease) increase in other liabilities (86) 76 Net cash provided by operating activities 6,141 4,903 CASH FLOWS FROM INVESTING ACTIVITIES Investment in Union — (15,000) Purchases of other investments (12) (7) Net cash used in investing activities (12) (15,007) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of subordinated notes — 16,500 Debt issuance costs incurred with issuance of subordinated notes — (340) Dividends paid (6,236) (5,877) Issuance of common stock — 72 Purchase of treasury stock (79) (2) Net cash (used in) provided by financing activities (6,315) 10,353 Net (decrease) increase in cash (186) 249 Cash, beginning of year 342 93 Cash, end of year $ 156 $ 342 Supplemental Disclosures of Cash Flow Information Interest paid $ 578 $ 12 Dividends paid on Common Stock: Dividends declared $ 6,296 $ 5,917 Dividends reinvested (60) (40) $ 6,236 $ 5,877 |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | Quarterly Financial Data (Unaudited) A summary of consolidated financial data for each of the four quarters of 2022 and 2021 is presented below: Quarters in 2022 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 9,726 $ 10,404 $ 11,463 $ 12,355 Interest expense 763 733 1,023 2,005 Net interest income 8,963 9,671 10,440 10,350 Noninterest income 2,055 2,165 2,467 2,300 Noninterest expenses 8,114 8,295 8,366 8,389 Net income 2,482 2,931 3,758 3,444 Basic earnings per common share $ 0.55 $ 0.65 $ 0.84 $ 0.77 Diluted earnings per common share $ 0.55 $ 0.65 $ 0.83 $ 0.76 Quarters in 2021 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 9,500 $ 9,898 $ 9,852 $ 10,023 Interest expense 1,101 979 706 779 Net interest income 8,399 8,919 9,146 9,244 Provision (credit) for loan losses 150 75 — (225) Noninterest income 2,621 3,139 4,201 3,002 Noninterest expenses 7,453 8,389 8,548 8,465 Net income 2,876 2,991 3,925 3,378 Basic earnings per common share $ 0.64 $ 0.67 $ 0.87 $ 0.76 Diluted earnings per common share $ 0.64 $ 0.66 $ 0.87 $ 0.75 |
Other Noninterest Income and Ot
Other Noninterest Income and Other Noninterest Expense | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Other Noninterest Income and Other Noninterest Expenses | Other Noninterest Income and Other Noninterest Expenses There are no components of other noninterest income that were in excess of one percent of total revenues for the years ended December 31, 2022 and 2021. The components of other noninterest expenses which are in excess of one percent of total revenues for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 Expenses (Dollars in thousands) Vermont franchise tax $ 1,087 $ 968 Professional fees 877 922 ATM network and debit card expense 980 898 FDIC insurance assessment 622 644 Advertising and public relations 617 530 Director and advisory board fees 519 524 Other expenses 3,744 3,991 Total other expenses $ 8,446 $ 8,477 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Basis of financial statement presentation | Basis of financial statement presentation The accounting and reporting policies of Union Bankshares, Inc. and its Subsidiary (together, 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 stockholders’ 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 2021 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 HTM: Held-to-maturity ALCO: Asset Liability Management Committee HUD: U.S. Department of Housing and Urban Development ALL: Allowance for loan losses ICS: Insured Cash Sweeps of the IntraFi Network ASC: Accounting Standards Codification IRS: Internal Revenue Service ASU: Accounting Standards Update MBS: Mortgage-backed security BHCA: Bank Holding Company Act of 1956 MPF: Mortgage Partnership Finance Program Board: Board of Directors MSRs: Mortgage Servicing rights bp or bps: Basis point(s) NASDAQ: NASDAQ Global Security Market Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OAO: Other assets owned CARES Act: Coronavirus Aid, Relief and Economic Security Act OCI: Other comprehensive income (loss) CDARS: Certificate of Deposit Accounts Registry Service of the IntraFi Network OFAC: U.S. Office of Foreign Assets Control CECL: Current Expected Credit Loss 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 PPP: Paycheck Protection Program COVID-19: Novel Coronavirus PPPLF: PPP Liquidity Facility of the FRB 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 Unit 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 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2014 Equity Plan: 2014 Equity Incentive Plan, as amended GAAP: Generally accepted accounting principles in the United States 2020 Plan: 2020 Amended and Restated Nonqualified Excess Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 |
Nature of operations | 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 Wealth Management Group, an unincorporated division of Union. |
Significant concentration of credit risk | 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, resulting in exposure to volatility with each state's real estate market. Additionally, the ability of borrowers 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 | 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 | 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. |
Wealth management operations | Wealth management operations Assets held by Union's Wealth 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 | 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 | 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 and 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 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 and charged to income. |
Loans | 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 credit losses | 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 are 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. Loans originated under the PPP are also included in this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. • 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 management's estimate of 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. |
Mortgage Banking | 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 as noninterest income up to, but not in excess of, the prior impairment. |
Premises and equipment | 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 statements 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 Intangible assets include goodwill amounting to $2.2 million, which represents the excess of the purchase price over the fair value of net assets acquired in the 2011 Branch Acquisition. 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 |
Federal Home Loan Bank stock | Federal Home Loan Bank stockAs 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. |
Company-owned life insurance | 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 | Investment in real estate limited partnershipsThe 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 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. |
Advertising costs | Advertising costs The Company expenses advertising costs as incurred and they are included in Other expenses in the Company's consolidated statements of income. |
Earnings per common share | Earnings per common shareBasic EPS is calculated 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. Diluted EPS is calculated after adjusting the denominator of the basic EPS calculation for the effect of all potential dilutive common shares outstanding during the period. |
Income taxes | Income taxesThe 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. |
Off-balance-sheet financial instruments | 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. (See Notes 18 and 19.) Such financial instruments are recorded in the financial statements when they become fixed and certain. |
Comprehensive (loss) income | Comprehensive (loss) income 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, are not reflected in the consolidated statements 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 sheets (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 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 | Stock Based CompensationUnder the Company's 2014 Equity Plan, as amended and approved by the stockholders in May 2022, 150,000 shares of the Company’s common stock 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. Stock based compensation awards are measured at the fair value of the stock at the grant date and recognized as expense over the period in which they vest. |
Segment Reporting | Segment Reporting Operating segments are the components of an entity for which separate financial information is available and evaluated regularly by management in order to allocate resources and assess performance. Management 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 | Recent accounting pronouncements (Unaudited) In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments . Under this guidance, which will replace the 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 guidance in the ASU, 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. CECL also applies to certain off-balance sheet credit exposures, such as loan commitments, standby letters of credit, financial guarantees and other similar commitments. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was to become effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was 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 Company did not choose to early adopt the ASU. As the Company is a smaller reporting company, the ASU will become effective for the Company beginning with the 2023 fiscal year. The Company established a CECL implementation team and developed a transition project plan. The Company has substantially completed the development of its CECL process and is currently working to finalize its internal CECL policy and internal control framework. A software package utilized for the current calculation of the allowance for loan losses will also be utilized for the Company's CECL calculation beginning in the first quarter of 2023. The Company will primarily utilize a discounted cash flow model to estimate the allowance for loan losses. This model contains assumptions to calculate credit losses over the estimated life of financial assets and will include the impact of forecasted economic conditions. To estimate the reserve liability for off-balance sheet credit exposures, which are primarily unfunded loan commitments, the Company will apply certain assumptions, including, but not limited to, a funding assumption. The Company has conducted parallel calculations as of December 31, 2022 under the existing incurred loss model and the CECL model. Upon adoption of the ASU in the first quarter of 2023, the Company anticipates that it will result in an immaterial impact to its consolidated financial statements, as well as the Company's and Union's regulatory capital ratios. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting , and has issued subsequent amendments thereto, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2024. The transition away from LIBOR is not expected to have a material impact on the Company's consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which eliminates the accounting guidance for TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires disclosure of current period charge offs by year of origination for loans and leases. ASU No. 2022-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. ASU No. 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Accounting Policies [Abstract] | |
Schedule of Acronyms, Abbreviations and Capitalized Terms | 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 HTM: Held-to-maturity ALCO: Asset Liability Management Committee HUD: U.S. Department of Housing and Urban Development ALL: Allowance for loan losses ICS: Insured Cash Sweeps of the IntraFi Network ASC: Accounting Standards Codification IRS: Internal Revenue Service ASU: Accounting Standards Update MBS: Mortgage-backed security BHCA: Bank Holding Company Act of 1956 MPF: Mortgage Partnership Finance Program Board: Board of Directors MSRs: Mortgage Servicing rights bp or bps: Basis point(s) NASDAQ: NASDAQ Global Security Market Branch Acquisition: The acquisition of three New Hampshire branches in May 2011 OAO: Other assets owned CARES Act: Coronavirus Aid, Relief and Economic Security Act OCI: Other comprehensive income (loss) CDARS: Certificate of Deposit Accounts Registry Service of the IntraFi Network OFAC: U.S. Office of Foreign Assets Control CECL: Current Expected Credit Loss 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 PPP: Paycheck Protection Program COVID-19: Novel Coronavirus PPPLF: PPP Liquidity Facility of the FRB 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 Unit 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 2008 Plan: 2008 Amended and Restated Nonqualified Deferred Compensation Plan FHLMC/Freddie Mac: Federal Home Loan Mortgage Corporation 2014 Equity Plan: 2014 Equity Incentive Plan, as amended GAAP: Generally accepted accounting principles in the United States 2020 Plan: 2020 Amended and Restated Nonqualified Excess Plan GLBA: Gramm-Leach-Bliley Financial Modernization Act of 1999 |
Restrictions on Cash and Cash_2
Restrictions on Cash and Cash Equivalents (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Cash and Cash Equivalents [Abstract] | |
Schedule of 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: 2022 2021 (Dollars in thousands) Noninterest bearing accounts $ 691 $ 336 Federal Reserve Bank of Boston 33,336 61,047 FHLB of Boston 187 692 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Debt Securities, Available-for-sale | Investment securities as of the balance sheet dates consisted of the following: December 31, 2022 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 45,090 $ — $ (5,845) $ 39,245 Agency MBS 198,478 104 (34,150) 164,432 State and political subdivisions 47,722 281 (7,537) 40,466 Corporate 6,343 — (219) 6,124 Total $ 297,633 $ 385 $ (47,751) $ 250,267 December 31, 2021 Amortized Gross Gross Fair Available-for-sale (Dollars in thousands) Debt securities: U.S. Government-sponsored enterprises $ 37,176 $ 55 $ (593) $ 36,638 Agency MBS 181,216 574 (3,540) 178,250 State and political subdivisions 44,068 1,293 (107) 45,254 Corporate 7,323 381 (27) 7,677 Total $ 269,783 $ 2,303 $ (4,267) $ 267,819 |
Schedule of Unrealized Loss on Investments | 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, 2022 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 4 $ 8,000 $ (533) 31 $ 31,103 $ (5,312) 35 $ 39,103 $ (5,845) Agency MBS 31 24,306 (2,192) 62 134,297 (31,958) 93 158,603 (34,150) State and political 39 15,457 (1,846) 27 18,613 (5,691) 66 34,070 (7,537) Corporate 10 4,719 (124) 3 1,405 (95) 13 6,124 (219) Total 84 $ 52,482 $ (4,695) 123 $ 185,418 $ (43,056) 207 $ 237,900 $ (47,751) December 31, 2021 Less Than 12 Months 12 Months and Over Total Number of Securities Fair Gross Number of Securities Fair Gross Number of Securities Fair Gross (Dollars in thousands) Debt securities: U.S. Government- 18 $ 29,754 $ (464) 14 $ 3,885 $ (129) 32 $ 33,639 $ (593) Agency MBS 41 130,742 (2,252) 17 32,955 (1,288) 58 163,697 (3,540) State and political 17 17,483 (107) — — — 17 17,483 (107) Corporate 2 985 (15) 1 488 (12) 3 1,473 (27) Total 78 $ 178,964 $ (2,838) 32 $ 37,328 $ (1,429) 110 $ 216,292 $ (4,267) |
Schedule of Realized Gain (Loss) | The following table presents the proceeds from sales and calls resulting in gross gains and gross losses from the disposition of AFS securities: For the Years Ended December 31, 2022 2021 (Dollars in thousands) Proceeds from sales $ 6,827 $ 8,717 Proceeds from calls 502 789 Gross gains 81 58 Gross losses (50) (58) Net gains $ 31 $ — |
Schedule of Investments Classified by Contractual Maturity Date | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of December 31, 2022, were as follows: Amortized Fair Available-for-sale (Dollars in thousands) Due in one year or less $ 5 $ 5 Due from one to five years 22,961 20,827 Due from five to ten years 27,043 23,806 Due after ten years 49,146 41,197 99,155 85,835 Agency MBS 198,478 164,432 Total $ 297,633 $ 250,267 |
Loans Held for Sale and Loan _2
Loans Held for Sale and Loan Servicing (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Transfers and Servicing [Abstract] | |
Schedule of Loans Sold During the Period | Loans sold consisted of the following during the years ended December 31: 2022 2021 Loans Sold Net Gains on Sale Loans Sold Net Gains on Sale (Dollars in thousands) Residential loans $ 77,972 $ 1,004 $ 216,817 $ 4,956 |
Schedule of Capitalization and Amortization of Loan Servicing Rights | The following table presents the capitalization and amortization of loan servicing rights: For The Years Ended December 31, 2022 2021 (Dollars in thousands) Capitalization of servicing rights $ 480 $ 1,454 Amortization of servicing rights 945 1,211 Net capitalization of servicing rights $ (465) $ 243 |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Receivables [Abstract] | |
Schedule of Composition of Net Loans | The composition of Net loans at December 31, was as follows: 2022 2021 (Dollars in thousands) Residential real estate $ 352,433 $ 246,827 Construction real estate 96,620 65,149 Commercial real estate 377,947 344,816 Commercial 40,973 49,788 Consumer 2,204 2,376 Municipal 87,980 78,094 Gross loans 958,157 787,050 Allowance for loan losses (8,339) (8,336) Net deferred loan costs 1,336 705 Net loans $ 951,154 $ 779,419 |
Schedule of Financing Receivable Past Due and Non Accrual Loans | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows: December 31, 2022 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 350,341 $ 1,724 $ 79 $ 186 $ 103 $ 352,433 Construction real estate 96,085 529 — — 6 96,620 Commercial real estate 375,311 515 19 — 2,102 377,947 Commercial 40,806 7 160 — — 40,973 Consumer 2,197 7 — — — 2,204 Municipal 87,980 — — — — 87,980 Total $ 952,720 $ 2,782 $ 258 $ 186 $ 2,211 $ 958,157 December 31, 2021 Current 30-59 Days 60-89 Days 90 Days and over and accruing Nonaccrual Total (Dollars in thousands) Residential real estate $ 245,169 $ 1,328 $ 130 $ 53 $ 147 $ 246,827 Construction real estate 64,939 72 — — 138 65,149 Commercial real estate 340,209 242 — — 4,365 344,816 Commercial 49,699 36 8 45 — 49,788 Consumer 2,376 — — — — 2,376 Municipal 78,094 — — — — 78,094 Total $ 780,486 $ 1,678 $ 138 $ 98 $ 4,650 $ 787,050 |
Allowance for Loan Losses and_2
Allowance for Loan Losses and Credit Quality (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Credit Loss [Abstract] | |
Schedule of Financing Receivable, Allowance for Credit Loss | Changes in the ALL, by class of loans, were as follows for the years ended: December 31, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2021 $ 2,068 $ 837 $ 4,122 $ 275 $ 11 $ 86 $ 937 $ 8,336 Provision (credit) for loan 349 195 (187) 25 (3) 9 (388) — Recoveries of amounts — — — 2 5 — — 7 2,417 1,032 3,935 302 13 95 549 8,343 Amounts charged off — — — (1) (3) — — (4) Balance, December 31, 2022 $ 2,417 $ 1,032 $ 3,935 $ 301 $ 10 $ 95 $ 549 $ 8,339 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Balance, December 31, 2020 $ 1,776 $ 763 $ 4,199 $ 458 $ 15 $ 214 $ 846 $ 8,271 Provision (credit) for loan 226 74 (77) (183) (3) (128) 91 — Recoveries of amounts 66 — — — 2 — — 68 2,068 837 4,122 275 14 86 937 8,339 Amounts charged off — — — — (3) — — (3) Balance, December 31, 2021 $ 2,068 $ 837 $ 4,122 $ 275 $ 11 $ 86 $ 937 $ 8,336 |
Schedule of Allocation of Allowance for Loan Losses by Impairment Methodology | 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, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 21 $ — $ 9 $ — $ — $ — $ — $ 30 Collectively evaluated 2,396 1,032 3,926 301 10 95 549 8,309 Total allocated $ 2,417 $ 1,032 $ 3,935 $ 301 $ 10 $ 95 $ 549 $ 8,339 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Unallocated Total (Dollars in thousands) Individually evaluated $ 26 $ — $ 20 $ — $ — $ — $ — $ 46 Collectively evaluated 2,042 837 4,102 275 11 86 937 8,290 Total allocated $ 2,068 $ 837 $ 4,122 $ 275 $ 11 $ 86 $ 937 $ 8,336 |
Schedule of Allocation of Investment in Loans by Impairment Methodology | 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, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,473 $ 58 $ 7,933 $ 7 $ — $ — $ 9,471 Collectively evaluated 350,960 96,562 370,014 40,966 2,204 87,980 948,686 Total $ 352,433 $ 96,620 $ 377,947 $ 40,973 $ 2,204 $ 87,980 $ 958,157 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Individually evaluated $ 1,750 $ 198 $ 4,819 $ 9 $ — $ — $ 6,776 Collectively evaluated 245,077 64,951 339,997 49,779 2,376 78,094 780,274 Total $ 246,827 $ 65,149 $ 344,816 $ 49,788 $ 2,376 $ 78,094 $ 787,050 |
Schedule of Financing Receivable Credit Quality Indicators | 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, 2022 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 328,885 $ 47,356 $ 258,175 $ 36,338 $ 2,197 $ 87,980 $ 760,931 Satisfactory/Monitor 21,429 49,206 111,077 4,368 7 — 186,087 Substandard 2,119 58 8,695 267 — — 11,139 Total $ 352,433 $ 96,620 $ 377,947 $ 40,973 $ 2,204 $ 87,980 $ 958,157 December 31, 2021 Residential Real Estate Construction Real Estate Commercial Real Estate Commercial Consumer Municipal Total (Dollars in thousands) Pass $ 227,684 $ 39,135 $ 191,902 $ 45,407 $ 2,371 $ 78,094 $ 584,593 Satisfactory/Monitor 16,820 25,816 147,645 4,301 5 — 194,587 Substandard 2,323 198 5,269 80 — — 7,870 Total $ 246,827 $ 65,149 $ 344,816 $ 49,788 $ 2,376 $ 78,094 $ 787,050 |
Schedule of Impaired Financing Receivables | The following tables provide information with respect to impaired loans by class of loan as of and for the years ended December 31, 2022 and 2021: December 31, 2022 For The Year Ended December 31, 2022 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 190 $ 200 $ 21 Commercial real estate 2,068 2,068 9 With an allowance recorded 2,258 2,268 30 Residential real estate 1,283 1,787 — Construction real estate 58 83 — Commercial real estate 5,865 6,403 — Commercial 7 7 — With no allowance recorded 7,213 8,280 — Residential real estate 1,473 1,987 21 $ 1,570 $ 101 Construction real estate 58 83 — 116 27 Commercial real estate 7,933 8,471 9 5,822 185 Commercial 7 7 — 8 1 Total $ 9,471 $ 10,548 $ 30 $ 7,516 $ 314 December 31, 2021 For The Year Ended December 31, 2021 Recorded Investment Principal Balance Related Allowance Average Recorded Investment Interest Income Recognized (Dollars in thousands) Residential real estate $ 199 $ 209 $ 26 Commercial real estate 1,591 1,764 20 With an allowance recorded 1,790 1,973 46 Residential real estate 1,551 2,043 — Construction real estate 198 218 — Commercial real estate 3,228 3,274 — Commercial 9 9 — With no allowance recorded 4,986 5,544 — Residential real estate 1,750 2,252 26 $ 1,749 $ 197 Construction real estate 198 218 — 205 4 Commercial real estate 4,819 5,038 20 4,552 217 Commercial 9 9 — 82 9 Total $ 6,776 $ 7,517 $ 46 $ 6,588 $ 427 ____________________ (1) Does not reflect government guaranties on impaired loans as of December 31, 2022 and 2021 totaling $341 thousand and $423 thousand, respectively. |
Schedule of Financing Receivable, Troubled Debt Restructuring | The following is a summary of TDR loans by class of loan as of the balance sheet dates: December 31, 2022 December 31, 2021 Number of Loans Principal Balance Number of Loans Principal Balance (Dollars in thousands) Residential real estate 25 $ 1,473 29 $ 1,750 Construction real estate 2 58 2 81 Commercial real estate 1 172 3 375 Commercial 1 7 1 9 Total 29 $ 1,710 35 $ 2,215 |
Schedule of New Troubled Debt Restructurings on Financing Receivables | There was no new TDR activity for the year ended December 31, 2022. The following table provides new TDRs for the year ended December 31, 2021: New TDRs During the Year Ended December 31,2021 Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment (Dollars in thousands) Residential real estate 2 $ 445 $ 445 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Class of Premises and Equipment | The major classes of premises and equipment and accumulated depreciation at December 31, were as follows: 2022 2021 (Dollars in thousands) Land and land improvements $ 4,466 $ 4,466 Building and improvements 20,432 20,412 Furniture and equipment 11,636 11,310 Construction in progress and deposits on equipment 361 122 36,895 36,310 Less accumulated depreciation (16,416) (14,695) $ 20,479 $ 21,615 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Leases [Abstract] | |
Schedule of Supplemental Lease Information | The right-of-use assets and lease liabilities related to operating leases were as follows at December 31: 2022 2021 (Dollars in thousands) Right-of-use assets included in Other assets $ 2,152 $ 1,612 Lease liabilities included in Accrued interest and other liabilities 2,255 1,690 |
Schedule of Lease Maturity | Total estimated rental commitments for operating leases were as follows as of December 31, 2022: (Dollars in thousands) 2023 $ 168 2024 157 2025 159 2026 161 2027 168 Thereafter 2,520 Total $ 3,333 |
Schedule of Lease Liability Reconciliation | 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, 2022 (Dollars in thousands) Undiscounted cash flows $ 3,333 Discount effect of cash flows (1,078) Lease liabilities $ 2,255 |
Investment in Real Estate Lim_2
Investment in Real Estate Limited Partnerships (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Investment In Real Estate Limited Partnerships [Abstract] | |
Schedule of Investments in Real Estate Limited Partnerships | The following is a summary of investments in real estate limited partnerships at December 31: 2022 2021 (Dollars in thousands) Carrying values of investments carried at equity included in Other assets $ 11,009 $ 7,572 Capital contribution payable included in Accrued interest and other liabilities 3,442 1,158 |
Schedule of Investment in Real Estate Limited Partnerships Income Tax Impact | 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, 2022 2021 (Dollars in thousands) Provision for undistributed net losses of limited partnership investments $ 1,138 $ 1,011 Federal income tax credits related to limited partnership investments (1,110) (1,057) Net effect on Provision for income taxes $ 28 $ (46) |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Deposits [Abstract] | |
Schedule of Interest Bearing Deposits | The following is a summary of interest bearing deposits at December 31: 2022 2021 (Dollars in thousands) Interest bearing checking accounts $ 329,785 $ 281,638 Savings and money market accounts 432,937 441,841 Time deposits, $250,000 and over 26,357 16,223 Other time deposits 126,688 90,492 $ 915,767 $ 830,194 |
Schedule of Time Deposits by Maturity | The following is a summary of time deposits by maturity at December 31, 2022: (Dollars in thousands) 2023 $ 100,935 2024 42,513 2025 5,327 2026 2,099 2027 2,171 $ 153,045 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of the Provision for Income Taxes | The components of the provision for income taxes for the years ended December 31, were as follows: 2022 2021 (Dollars in thousands) Current federal tax provision $ 2,734 $ 2,149 Current state tax provision 168 126 Deferred tax (benefit) provision (270) 371 $ 2,632 $ 2,646 |
Schedule of Effective Income Tax Rate Reconciliation | 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: 2022 2021 (Dollars in thousands) Computed “expected” tax expense $ 3,202 $ 3,321 State taxes 133 100 Tax exempt interest (479) (446) Increase in cash surrender value of COLI (107) (65) Tax credits (1,140) (1,093) Equity in losses of limited partnerships 965 842 Non-deductible expenses 37 24 Other 21 (37) $ 2,632 $ 2,646 |
Schedule of Deferred Tax Assets and Liabilities | Listed below are the significant components of the net deferred tax asset at December 31: 2022 2021 (Dollars in thousands) Components of the deferred tax asset Bad debts $ 1,891 $ 1,813 Deferred compensation 345 308 Origination fees 2 121 Loans held for sale 5 56 Core deposit intangible 88 109 Limited partnership investments 15 — Unrealized loss on investment securities available-for-sale 9,947 412 Other 92 74 Total deferred tax asset 12,385 2,893 Components of the deferred tax liability Depreciation (1,226) (1,397) Mortgage servicing rights (461) (543) Limited partnership investments — (136) Goodwill (389) (341) Prepaid expenses (190) (162) Total deferred tax liability (2,266) (2,579) Net deferred tax asset $ 10,119 $ 314 |
Employee Benefit Plans (Tables)
Employee Benefit Plans (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Retirement Benefits [Abstract] | |
Schedule of Costs of Retirement Plans | The following table summarizes employer contributions for the years ended December 31, 2022 and 2021: 2022 2021 (Dollars in thousands) Employer matching $ 323 $ 320 Profit sharing 361 367 Safe harbor 401 395 Total $ 1,085 $ 1,082 |
Stock Based Compensation (Table
Stock Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Share Based Compensation, Summary of RSUs | The following table presents a summary of RSUs from the respective Award Plan Summaries as of December 31, 2022: Number of RSUs Granted Weighted-Average Grant Date Fair Value Number of Unvested RSUs 2021 Award 17,685 $ 26.73 1,745 2022 Award 15,705 31.99 7,822 Total 33,390 9,567 |
Schedule of Cash Proceeds Received from Share Based Payment Awards | The following summarizes information regarding the proceeds received by the Company from the exercise of incentive stock options during the year ended December 31, 2021: 2021 (Dollars in thousands, except per share data) Proceeds received $ 72 Number of shares exercised 3,000 Weighted average price per share $ 24.00 Total intrinsic value of options exercised $ 27 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Reconciliation of Basic EPS and Diluted EPS | The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the years ended December 31, 2022 and 2021: 2022 2021 (Dollars in thousands, except per share data) Net income $ 12,615 $ 13,170 Weighted average common shares outstanding for basic EPS 4,496,169 4,483,791 Dilutive effect of stock-based awards (1) 18,055 25,157 Weighted-average common and potential common shares for diluted EPS 4,514,224 4,508,948 Earnings per common share: Basic EPS $ 2.81 $ 2.94 Diluted EPS $ 2.79 $ 2.92 ____________________ (1) Dilutive effect of stock based awards represents the effect of the assumed exercise of stock options and vesting of restricted stock units. Unvested awards do not have dividend or dividend equivalent rights. |
Financial Instruments With Of_2
Financial Instruments With Off-Balance-Sheet Risk (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | |
Schedule of Contractual Amount of Financial Instruments with Credit Risk | The following table shows financial instruments outstanding whose contract amount represents credit risk at December 31: Contract or 2022 2021 (Dollars in thousands) Commitments to originate loans $ 39,217 $ 48,910 Unused lines of credit 185,539 168,442 Standby and commercial letters of credit 1,762 2,158 Credit card arrangements 241 170 MPF credit enhancement obligation, net (See Note 19) 396 428 Commitment to purchase investment in a real estate limited partnership 3,000 4,574 Total $ 230,155 $ 224,682 |
Fair Value Measurement (Tables)
Fair Value Measurement (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Assets Measured at Fair Value on Recurring Basis | Assets measured at fair value on a recurring basis at December 31, 2022 and 2021, segregated by fair value hierarchy level, are summarized below: Fair Value Measurement Fair Quoted Prices in Active Markets for Significant Other Observable Inputs Significant December 31, 2022: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 39,245 $ 2,551 $ 36,694 $ — Agency MBS 164,432 — 164,432 — State and political subdivisions 40,466 — 40,466 — Corporate 6,124 — 6,124 — Total debt securities $ 250,267 $ 2,551 $ 247,716 $ — Other investments: Mutual funds $ 1,264 $ 1,264 $ — $ — December 31, 2021: (Dollars in thousands) Investment securities available-for-sale Debt securities: U.S. Government-sponsored enterprises $ 36,638 $ 2,875 $ 33,763 $ — Agency MBS 178,250 — 178,250 — State and political subdivisions 45,254 — 45,254 — Corporate 7,677 — 7,677 — Total debt securities $ 267,819 $ 2,875 $ 264,944 $ — Other investments: Mutual funds $ 1,132 $ 1,132 $ — $ — |
Schedule of Fair Values and Carrying Amounts, Significant Financial Instruments | 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, 2022 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 37,885 $ 37,885 $ 37,885 $ — $ — Interest bearing deposits in banks 16,428 16,428 — 16,428 — Investment securities 251,531 251,531 3,815 247,716 — Loans held for sale 1,178 1,202 — 1,202 — Loans, net Residential real estate 350,507 319,066 — — 319,066 Construction real estate 95,723 94,231 — — 94,231 Commercial real estate 373,990 358,897 — — 358,897 Commercial 40,729 38,588 — — 38,588 Consumer 2,197 2,161 — — 2,161 Municipal 88,008 86,306 — — 86,306 Accrued interest receivable 4,163 4,163 — 1,014 3,149 Nonmarketable equity securities 2,816 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 286,145 286,145 286,145 — — Interest bearing 762,722 762,722 762,722 — — Time 153,045 149,166 — 149,166 — Short-term borrowed funds 50,000 49,997 — 49,997 — Subordinated notes 16,205 14,037 — 14,037 — Accrued interest payable 354 354 — 354 — December 31, 2021 Fair Value Measurement Carrying Estimated Fair Quoted Prices Significant Significant (Dollars in thousands) Financial assets Cash and cash equivalents $ 65,922 $ 65,922 $ 65,922 $ — $ — Interest bearing deposits in banks 13,196 13,196 — 13,196 — Investment securities 268,951 268,951 4,007 264,944 — Loans held for sale 13,829 14,088 — 14,088 — Loans, net Residential real estate 244,980 246,573 — — 246,573 Construction real estate 64,370 64,539 — — 64,539 Commercial real estate 340,066 341,451 — — 341,451 Commercial 49,558 48,682 — — 48,682 Consumer 2,367 2,350 — — 2,350 Municipal 78,078 78,748 — — 78,748 Accrued interest receivable 3,248 3,248 — 734 2,514 Nonmarketable equity securities 1,164 N/A N/A N/A N/A Financial liabilities Deposits Noninterest bearing 264,888 264,888 264,888 — — Interest bearing 723,479 723,479 723,479 — — Time 106,715 106,588 — 106,588 — Subordinated notes 16,171 16,179 — 16,179 — Accrued interest payable 225 225 — 225 — |
Transactions with Related Par_2
Transactions with Related Parties (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Related Party Transactions [Abstract] | |
Schedule of Loan Transactions with Related Parties | Aggregate loan transactions with related parties for the years ended December 31 were as follows: 2022 2021 (Dollars in thousands) Balance, January 1, $ 1,146 $ 731 New loans and advances on lines 1,032 2,050 Repayments (957) (1,635) Other, net (929) — Balance, December 31, $ 292 $ 1,146 Balance available on lines of credit or loan commitments $ 133 $ 571 |
Regulatory Capital Requiremen_2
Regulatory Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Broker-Dealer, Net Capital Requirement, SEC Regulation [Abstract] | |
Schedule of Regulatory Capital Amounts and Ratios | The Company and Union's risk-based capital ratios exceeded regulatory guidelines at December 31, 2022 and 2021, and, specifically, Union was "well capitalized" under Prompt Corrective Action provisions for each period. There were no conditions or events known to management that occurred subsequent to December 31, 2022 and prior to the publication of these financial statements that would change the Company's or Union'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 To Be Well As of December 31, 2022 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 114,959 13.98 % $ 65,785 8.00 % N/A N/A Tier 1 capital to risk weighted assets 90,415 11.00 % 49,317 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 90,415 11.00 % 36,988 4.50 % N/A N/A Tier 1 capital to average assets 90,415 6.66 % 54,303 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 114,618 13.95 % $ 65,731 8.00 % $ 82,163 10.00 % Tier 1 capital to risk weighted assets 106,279 12.94 % 49,279 6.00 % 65,706 8.00 % Common Equity Tier 1 to risk weighted assets 106,279 12.94 % 36,959 4.50 % 53,386 6.50 % Tier 1 capital to average assets 106,279 7.84 % 54,224 4.00 % 67,780 5.00 % Actual For Capital To be Well As of December 31, 2021 Amount Ratio Amount Ratio Amount Ratio Company: (Dollars in thousands) Total capital to risk weighted assets $ 108,175 15.39 % $ 56,231 8.00 % N/A N/A Tier 1 capital to risk weighted assets 83,668 11.90 % 42,186 6.00 % N/A N/A Common Equity Tier 1 to risk weighted assets 83,668 11.90 % 31,639 4.50 % N/A N/A Tier 1 capital to average assets 83,668 7.12 % 47,004 4.00 % N/A N/A Union: Total capital to risk weighted assets $ 107,480 15.31 % $ 56,162 8.00 % $ 70,202 10.00 % Tier 1 capital to risk weighted assets 99,144 14.12 % 42,129 6.00 % 56,172 8.00 % Common Equity Tier 1 to risk weighted assets 99,144 14.12 % 31,597 4.50 % 45,640 6.50 % Tier 1 capital to average assets 99,144 8.44 % 46,988 4.00 % 58,735 5.00 % |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Stockholders' Equity Note [Abstract] | |
Schedule of Accumulated OCI | The components of Accumulated OCI, net of tax, at December 31 were: 2022 2021 (Dollars in thousands) Net unrealized loss on investment securities AFS $ (37,419) $ (1,552) |
Schedule of Tax Effects Allocated to Each Component of OCI | The following table discloses the tax effects allocated to each component of OCI for the years ended: December 31, 2022 December 31, 2021 Before-Tax Amount Tax Benefit/ Expense Net-of-Tax Amount Before-Tax Amount Tax Benefit Net-of-Tax Amount (Dollars in thousands) Investment securities AFS: Net unrealized holding losses arising during the year on investment securities AFS $ (45,370) $ 9,528 $ (35,842) $ (5,300) $ 1,112 $ (4,188) Reclassification adjustment for net gains on investment securities AFS realized in net income (31) 6 (25) — — — Total other comprehensive loss $ (45,401) $ 9,534 $ (35,867) $ (5,300) $ 1,112 $ (4,188) |
Schedule of Reclassification Adjustments from OCI | The following table discloses information concerning the reclassification adjustments from OCI for the years ended December 31: Reclassification Adjustment Description 2022 2021 Affected Line Item in (Dollars in thousands) Investment securities available-for-sale: Net gains on investment securities AFS $ (31) $ — Net gains on sales of investment securities available-for-sale Tax expense 6 — Provision for income taxes Total reclassifications $ (25) $ — Net income |
Condensed Financial Informati_2
Condensed Financial Information (Parent Company Only) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Balance Sheets | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED BALANCE SHEETS December 31, 2022 and 2021 2022 2021 (Dollars in thousands) ASSETS Cash $ 156 $ 342 Other investments 75 73 Investment in subsidiary - Union 71,083 99,817 Other assets 644 837 Total assets $ 71,958 $ 101,069 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Subordinated notes $ 16,205 $ 16,171 Accrued interest and other liabilities 533 557 Total liabilities 16,738 16,728 STOCKHOLDERS' EQUITY Common stock, $2.00 par value; 7,500,000 shares authorized; 4,982,523 shares issued at December 31, 2022 and 4,967,093 shares issued at December 31, 2021 9,965 9,934 Additional paid-in capital 2,225 1,769 Retained earnings 84,669 78,350 Treasury stock at cost; 473,936 shares at December 31, 2022 and 473,438 shares at December 31, 2021 (4,220) (4,160) Accumulated other comprehensive loss (37,419) (1,552) Total stockholders' equity 55,220 84,341 Total liabilities and stockholders' equity $ 71,958 $ 101,069 |
Schedule of Condensed Statements of Income | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF INCOME Years Ended December 31, 2022 and 2021 2022 2021 Revenues (Dollars in thousands) Dividends - bank subsidiary - Union $ 6,850 $ 5,400 Other income 20 26 Total revenues 6,870 5,426 Expenses Interest on subordinated notes 569 200 Administrative and other 544 600 Total expenses 1,113 800 Income before applicable income tax benefit and equity in undistributed 5,757 4,626 Applicable income tax benefit (233) (164) Income before equity in undistributed net income of subsidiary 5,990 4,790 Equity in undistributed net income - Union 6,625 8,380 Net income $ 12,615 $ 13,170 |
Schedule of Condensed Statements of Cash Flows | UNION BANKSHARES, INC. (PARENT COMPANY ONLY) CONDENSED STATEMENTS OF CASH FLOWS Years Ended December 31, 2022 and 2021 2022 2021 CASH FLOWS FROM OPERATING ACTIVITIES (Dollars in thousands) Net income $ 12,615 $ 13,170 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of Union (6,625) (8,380) Net losses (gains) on other investments 10 (6) Amortization of debt issuance costs 34 11 Decrease in other assets 193 32 (Decrease) increase in other liabilities (86) 76 Net cash provided by operating activities 6,141 4,903 CASH FLOWS FROM INVESTING ACTIVITIES Investment in Union — (15,000) Purchases of other investments (12) (7) Net cash used in investing activities (12) (15,007) CASH FLOWS FROM FINANCING ACTIVITIES Proceeds from issuance of subordinated notes — 16,500 Debt issuance costs incurred with issuance of subordinated notes — (340) Dividends paid (6,236) (5,877) Issuance of common stock — 72 Purchase of treasury stock (79) (2) Net cash (used in) provided by financing activities (6,315) 10,353 Net (decrease) increase in cash (186) 249 Cash, beginning of year 342 93 Cash, end of year $ 156 $ 342 Supplemental Disclosures of Cash Flow Information Interest paid $ 578 $ 12 Dividends paid on Common Stock: Dividends declared $ 6,296 $ 5,917 Dividends reinvested (60) (40) $ 6,236 $ 5,877 |
Quarterly Financial Data (Una_2
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Data (Unaudited) | A summary of consolidated financial data for each of the four quarters of 2022 and 2021 is presented below: Quarters in 2022 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 9,726 $ 10,404 $ 11,463 $ 12,355 Interest expense 763 733 1,023 2,005 Net interest income 8,963 9,671 10,440 10,350 Noninterest income 2,055 2,165 2,467 2,300 Noninterest expenses 8,114 8,295 8,366 8,389 Net income 2,482 2,931 3,758 3,444 Basic earnings per common share $ 0.55 $ 0.65 $ 0.84 $ 0.77 Diluted earnings per common share $ 0.55 $ 0.65 $ 0.83 $ 0.76 Quarters in 2021 Ended March 31, June 30, Sept. 30, Dec 31, (Dollars in thousands, except per share data) Interest and dividend income $ 9,500 $ 9,898 $ 9,852 $ 10,023 Interest expense 1,101 979 706 779 Net interest income 8,399 8,919 9,146 9,244 Provision (credit) for loan losses 150 75 — (225) Noninterest income 2,621 3,139 4,201 3,002 Noninterest expenses 7,453 8,389 8,548 8,465 Net income 2,876 2,991 3,925 3,378 Basic earnings per common share $ 0.64 $ 0.67 $ 0.87 $ 0.76 Diluted earnings per common share $ 0.64 $ 0.66 $ 0.87 $ 0.75 |
Other Noninterest Income and _2
Other Noninterest Income and Other Noninterest Expense (Tables) | 12 Months Ended |
Dec. 31, 2022 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Noninterest Income and Other Noninterest Expenses | The components of other noninterest expenses which are in excess of one percent of total revenues for the years ended December 31, 2022 and 2021 were as follows: 2022 2021 Expenses (Dollars in thousands) Vermont franchise tax $ 1,087 $ 968 Professional fees 877 922 ATM network and debit card expense 980 898 FDIC insurance assessment 622 644 Advertising and public relations 617 530 Director and advisory board fees 519 524 Other expenses 3,744 3,991 Total other expenses $ 8,446 $ 8,477 |
Significant Accounting Polici_4
Significant Accounting Policies (Details) $ in Millions | 12 Months Ended | ||
Dec. 31, 2022 USD ($) segment shares | May 31, 2022 shares | Dec. 31, 2021 USD ($) | |
Accounting Policies [Abstract] | |||
Intangible assets include goodwill | $ 2.2 | ||
Class of Stock [Line Items] | |||
Federal home loan bank stock | $ 2.7 | $ 1.1 | |
COLI limit, percentage | 15% | ||
Number of reportable segments | segment | 1 | ||
2014 Equity Plan | |||
Class of Stock [Line Items] | |||
Shares authorized for equity awards (in shares) | shares | 150,000 | 150,000 |
Restrictions on Cash and Cash_3
Restrictions on Cash and Cash Equivalents (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Noninterest bearing accounts | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured cash accounts | $ 691 | $ 336 |
Federal Reserve Bank of Boston | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured cash accounts | 33,336 | 61,047 |
FHLB of Boston | ||
Cash and Cash Equivalents [Line Items] | ||
Uninsured cash accounts | $ 187 | $ 692 |
Restrictions on Cash and Cash_4
Restrictions on Cash and Cash Equivalents - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Cash and Cash Equivalents [Abstract] | ||
Federal reserve contracted clearing balance | $ 0 | $ 0 |
Interest Bearing Deposits in _2
Interest Bearing Deposits in Banks (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Interest Bearing Deposits in Banks [Abstract] | ||
Interest bearing deposits in banks | $ 16,428 | $ 13,196 |
Interest bearing deposits in banks, interest rate, ranging from | 0.40% | |
Interest bearing deposits in banks, interest rate, ranging to | 5.06% | |
Interest bearing deposits in banks scheduled to mature in 2023 | $ 7,700 |
Investment Securities - Schedul
Investment Securities - Schedule of Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Available-for-sale | ||
Amortized Cost | $ 297,633 | $ 269,783 |
Gross Unrealized Gains | 385 | 2,303 |
Gross Unrealized Losses | (47,751) | (4,267) |
Fair Value | 250,267 | 267,819 |
U.S. Government-sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 45,090 | 37,176 |
Gross Unrealized Gains | 0 | 55 |
Gross Unrealized Losses | (5,845) | (593) |
Fair Value | 39,245 | 36,638 |
Agency MBS | ||
Available-for-sale | ||
Amortized Cost | 198,478 | 181,216 |
Gross Unrealized Gains | 104 | 574 |
Gross Unrealized Losses | (34,150) | (3,540) |
Fair Value | 164,432 | 178,250 |
State and political subdivisions | ||
Available-for-sale | ||
Amortized Cost | 47,722 | 44,068 |
Gross Unrealized Gains | 281 | 1,293 |
Gross Unrealized Losses | (7,537) | (107) |
Fair Value | 40,466 | 45,254 |
Corporate | ||
Available-for-sale | ||
Amortized Cost | 6,343 | 7,323 |
Gross Unrealized Gains | 0 | 381 |
Gross Unrealized Losses | (219) | (27) |
Fair Value | $ 6,124 | $ 7,677 |
Investment Securities - Narrati
Investment Securities - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Variable Interest Entity [Line Items] | ||
Investment securities HTM | $ 0 | $ 0 |
Other than temporary declines in investment securities | 0 | 0 |
Asset Pledged as Collateral without Right | ||
Variable Interest Entity [Line Items] | ||
Investment securities pledged as collateral | $ 433 | $ 608 |
Investment Securities - Sched_2
Investment Securities - Schedule of Unrealized Loss on Investments (Details) $ in Thousands | Dec. 31, 2022 USD ($) security | Dec. 31, 2021 USD ($) security |
Less Than 12 Months | ||
Number of Securities | security | 84 | 78 |
Fair Value | $ 52,482 | $ 178,964 |
Gross Unrealized Loss | $ (4,695) | $ (2,838) |
12 Months and Over | ||
Number of Securities | security | 123 | 32 |
Fair Value | $ 185,418 | $ 37,328 |
Gross Unrealized Loss | $ (43,056) | $ (1,429) |
Total | ||
Number of Securities | security | 207 | 110 |
Fair Value | $ 237,900 | $ 216,292 |
Gross Unrealized Loss | $ (47,751) | $ (4,267) |
U.S. Government-sponsored enterprises | ||
Less Than 12 Months | ||
Number of Securities | security | 4 | 18 |
Fair Value | $ 8,000 | $ 29,754 |
Gross Unrealized Loss | $ (533) | $ (464) |
12 Months and Over | ||
Number of Securities | security | 31 | 14 |
Fair Value | $ 31,103 | $ 3,885 |
Gross Unrealized Loss | $ (5,312) | $ (129) |
Total | ||
Number of Securities | security | 35 | 32 |
Fair Value | $ 39,103 | $ 33,639 |
Gross Unrealized Loss | $ (5,845) | $ (593) |
Agency MBS | ||
Less Than 12 Months | ||
Number of Securities | security | 31 | 41 |
Fair Value | $ 24,306 | $ 130,742 |
Gross Unrealized Loss | $ (2,192) | $ (2,252) |
12 Months and Over | ||
Number of Securities | security | 62 | 17 |
Fair Value | $ 134,297 | $ 32,955 |
Gross Unrealized Loss | $ (31,958) | $ (1,288) |
Total | ||
Number of Securities | security | 93 | 58 |
Fair Value | $ 158,603 | $ 163,697 |
Gross Unrealized Loss | $ (34,150) | $ (3,540) |
State and political subdivisions | ||
Less Than 12 Months | ||
Number of Securities | security | 39 | 17 |
Fair Value | $ 15,457 | $ 17,483 |
Gross Unrealized Loss | $ (1,846) | $ (107) |
12 Months and Over | ||
Number of Securities | security | 27 | 0 |
Fair Value | $ 18,613 | $ 0 |
Gross Unrealized Loss | $ (5,691) | $ 0 |
Total | ||
Number of Securities | security | 66 | 17 |
Fair Value | $ 34,070 | $ 17,483 |
Gross Unrealized Loss | $ (7,537) | $ (107) |
Corporate | ||
Less Than 12 Months | ||
Number of Securities | security | 10 | 2 |
Fair Value | $ 4,719 | $ 985 |
Gross Unrealized Loss | $ (124) | $ (15) |
12 Months and Over | ||
Number of Securities | security | 3 | 1 |
Fair Value | $ 1,405 | $ 488 |
Gross Unrealized Loss | $ (95) | $ (12) |
Total | ||
Number of Securities | security | 13 | 3 |
Fair Value | $ 6,124 | $ 1,473 |
Gross Unrealized Loss | $ (219) | $ (27) |
Investment Securities - Sched_3
Investment Securities - Schedule of Realized Gain (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investments, Debt and Equity Securities [Abstract] | ||
Proceeds from sales | $ 6,827 | $ 8,717 |
Proceeds from calls | 502 | 789 |
Gross gains | 81 | 58 |
Gross losses | (50) | (58) |
Net gains | $ 31 | $ 0 |
Investment Securities - Sched_4
Investment Securities - Schedule of Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year or less | $ 5 | |
Due from one to five years | 22,961 | |
Due from five to ten years | 27,043 | |
Due after ten years | 49,146 | |
Debt securities with single maturity date, amortized cost | 99,155 | |
Agency MBS | 198,478 | |
Total | 297,633 | |
Fair Value | ||
Due in one year or less | 5 | |
Due from one to five years | 20,827 | |
Due from five to ten years | 23,806 | |
Due after ten years | 41,197 | |
Debt securities with single maturity date, fair value | 85,835 | |
Agency MBS | 164,432 | |
Total debt securities | $ 250,267 | $ 267,819 |
Loans Held for Sale and Loan _3
Loans Held for Sale and Loan Servicing - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Servicing Assets at Fair Value [Line Items] | ||
Unpaid principal balance of loans serviced for others | $ 660,700 | $ 659,300 |
Loan servicing rights, unamortized balance | 2,000 | 2,500 |
Loan servicing rights, valuation allowance | 0 | 0 |
Credit Enhancement Obligation | ||
Servicing Assets at Fair Value [Line Items] | ||
Contractual risk sharing commitments, maximum liability | $ 415 | $ 447 |
Loans Held for Sale and Loan _4
Loans Held for Sale and Loan Servicing - Schedule of Loans Sold During the Period (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Net Gains on Sale | $ 1,004 | $ 4,956 |
Residential loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans Sold | 77,972 | 216,817 |
Net Gains on Sale | $ 1,004 | $ 4,956 |
Loans Held for Sale and Loan _5
Loans Held for Sale and Loan Servicing - Schedule of Capitalization and Amortization of Loan Servicing Rights (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Transfers and Servicing [Abstract] | ||
Capitalization of servicing rights | $ 480 | $ 1,454 |
Amortization of servicing rights | 945 | 1,211 |
Net capitalization of servicing rights | $ (465) | $ 243 |
Loans - Schedule of Composition
Loans - Schedule of Composition of Net Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | $ 958,157 | $ 787,050 | |
Allowance for loan losses | (8,339) | (8,336) | $ (8,271) |
Net deferred loan costs | 1,336 | 705 | |
Net loans | 951,154 | 779,419 | |
Residential real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 352,433 | 246,827 | |
Allowance for loan losses | (2,417) | (2,068) | (1,776) |
Construction real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 96,620 | 65,149 | |
Allowance for loan losses | (1,032) | (837) | (763) |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 377,947 | 344,816 | |
Allowance for loan losses | (3,935) | (4,122) | (4,199) |
Commercial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 40,973 | 49,788 | |
Allowance for loan losses | (301) | (275) | (458) |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 2,204 | 2,376 | |
Allowance for loan losses | (10) | (11) | (15) |
Municipal | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross loans | 87,980 | 78,094 | |
Allowance for loan losses | $ (95) | $ (86) | $ (214) |
Loans - Narrative (Details)
Loans - Narrative (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan | |
Variable Interest Entity [Line Items] | ||
Number of PPP loans | loan | 4 | 154 |
PPP loans, outstanding amount | $ 205 | $ 13,600 |
PPP loans, origination fee | 7 | 558 |
PPP loans, origination fee recognized | 551 | 2,800 |
Gross loans | $ 958,157 | $ 787,050 |
Number of residential real estate loans in process of foreclosure | loan | 1 | 0 |
Recorded investment in residential real estate loans in process of foreclosure | $ 28 | |
Aggregate interest on nonaccrual loans not recognized | 59 | $ 504 |
Asset Pledged as Collateral without Right | ||
Variable Interest Entity [Line Items] | ||
Gross loans | $ 272,900 | $ 224,400 |
Loans - Schedule of Financing R
Loans - Schedule of Financing Receivable Past Due and Non Accrual Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Gross loans | $ 958,157 | $ 787,050 |
Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 952,720 | 780,486 |
30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 2,782 | 1,678 |
60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 258 | 138 |
90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 186 | 98 |
Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 2,211 | 4,650 |
Residential real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 352,433 | 246,827 |
Residential real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 350,341 | 245,169 |
Residential real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 1,724 | 1,328 |
Residential real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 79 | 130 |
Residential real estate | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 186 | 53 |
Residential real estate | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 103 | 147 |
Construction real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 96,620 | 65,149 |
Construction real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 96,085 | 64,939 |
Construction real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 529 | 72 |
Construction real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Construction real estate | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Construction real estate | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 6 | 138 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 377,947 | 344,816 |
Commercial real estate | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 375,311 | 340,209 |
Commercial real estate | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 515 | 242 |
Commercial real estate | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 19 | 0 |
Commercial real estate | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Commercial real estate | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 2,102 | 4,365 |
Commercial | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 40,973 | 49,788 |
Commercial | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 40,806 | 49,699 |
Commercial | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 7 | 36 |
Commercial | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 160 | 8 |
Commercial | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 45 |
Commercial | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 2,204 | 2,376 |
Consumer | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 2,197 | 2,376 |
Consumer | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 7 | 0 |
Consumer | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Consumer | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Municipal | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 87,980 | 78,094 |
Municipal | Current | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 87,980 | 78,094 |
Municipal | 30-59 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Municipal | 60-89 Days | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Municipal | 90 Days and over and accruing | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | 0 | 0 |
Municipal | Nonaccrual | ||
Financing Receivable, Past Due [Line Items] | ||
Gross loans | $ 0 | $ 0 |
Allowance for Loan Losses and_3
Allowance for Loan Losses and Credit Quality - Schedule of Allowance for Loan Losses, by Class of Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | $ 8,336 | $ 8,271 |
Provision (credit) for loan losses | 0 | 0 |
Recoveries of amounts charged off | 7 | 68 |
Balance, before amounts charged off | 8,343 | 8,339 |
Amounts charged off | (4) | (3) |
Balance, end of year | 8,339 | 8,336 |
Residential Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 2,068 | 1,776 |
Provision (credit) for loan losses | 349 | 226 |
Recoveries of amounts charged off | 0 | 66 |
Balance, before amounts charged off | 2,417 | 2,068 |
Amounts charged off | 0 | 0 |
Balance, end of year | 2,417 | 2,068 |
Construction Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 837 | 763 |
Provision (credit) for loan losses | 195 | 74 |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 1,032 | 837 |
Amounts charged off | 0 | 0 |
Balance, end of year | 1,032 | 837 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 4,122 | 4,199 |
Provision (credit) for loan losses | (187) | (77) |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 3,935 | 4,122 |
Amounts charged off | 0 | 0 |
Balance, end of year | 3,935 | 4,122 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 275 | 458 |
Provision (credit) for loan losses | 25 | (183) |
Recoveries of amounts charged off | 2 | 0 |
Balance, before amounts charged off | 302 | 275 |
Amounts charged off | (1) | 0 |
Balance, end of year | 301 | 275 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 11 | 15 |
Provision (credit) for loan losses | (3) | (3) |
Recoveries of amounts charged off | 5 | 2 |
Balance, before amounts charged off | 13 | 14 |
Amounts charged off | (3) | (3) |
Balance, end of year | 10 | 11 |
Municipal | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 86 | 214 |
Provision (credit) for loan losses | 9 | (128) |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 95 | 86 |
Amounts charged off | 0 | 0 |
Balance, end of year | 95 | 86 |
Unallocated | ||
Financing Receivable, Allowance for Credit Loss [Roll Forward] | ||
Balance, beginning of year | 937 | 846 |
Provision (credit) for loan losses | (388) | 91 |
Recoveries of amounts charged off | 0 | 0 |
Balance, before amounts charged off | 549 | 937 |
Amounts charged off | 0 | 0 |
Balance, end of year | $ 549 | $ 937 |
Allowance for Loan Losses and_4
Allowance for Loan Losses and Credit Quality - Schedule of Allocation of the Allowance for Loan Losses (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | $ 30 | $ 46 | |
Collectively evaluated for impairment | 8,309 | 8,290 | |
Total allocated | 8,339 | 8,336 | $ 8,271 |
Residential Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 21 | 26 | |
Collectively evaluated for impairment | 2,396 | 2,042 | |
Total allocated | 2,417 | 2,068 | 1,776 |
Construction Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 1,032 | 837 | |
Total allocated | 1,032 | 837 | 763 |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 9 | 20 | |
Collectively evaluated for impairment | 3,926 | 4,102 | |
Total allocated | 3,935 | 4,122 | 4,199 |
Commercial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 301 | 275 | |
Total allocated | 301 | 275 | 458 |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 10 | 11 | |
Total allocated | 10 | 11 | 15 |
Municipal | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 95 | 86 | |
Total allocated | 95 | 86 | 214 |
Unallocated | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 549 | 937 | |
Total allocated | $ 549 | $ 937 | $ 846 |
Allowance for Loan Losses and_5
Allowance for Loan Losses and Credit Quality - Schedule of Allocation of Investment in Loans, by Impairment Methodology (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | $ 9,471 | $ 6,776 |
Collectively evaluated for impairment | 948,686 | 780,274 |
Total | 958,157 | 787,050 |
Residential Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 1,473 | 1,750 |
Collectively evaluated for impairment | 350,960 | 245,077 |
Total | 352,433 | 246,827 |
Construction Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 58 | 198 |
Collectively evaluated for impairment | 96,562 | 64,951 |
Total | 96,620 | 65,149 |
Commercial Real Estate | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 7,933 | 4,819 |
Collectively evaluated for impairment | 370,014 | 339,997 |
Total | 377,947 | 344,816 |
Commercial | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 7 | 9 |
Collectively evaluated for impairment | 40,966 | 49,779 |
Total | 40,973 | 49,788 |
Consumer | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 2,204 | 2,376 |
Total | 2,204 | 2,376 |
Municipal | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Individually evaluated for impairment | 0 | 0 |
Collectively evaluated for impairment | 87,980 | 78,094 |
Total | $ 87,980 | $ 78,094 |
Allowance for Loan Losses and_6
Allowance for Loan Losses and Credit Quality - Schedule of Loan Ratings by Class (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 958,157 | $ 787,050 |
Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 760,931 | 584,593 |
Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 186,087 | 194,587 |
Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 11,139 | 7,870 |
Residential Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 352,433 | 246,827 |
Residential Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 328,885 | 227,684 |
Residential Real Estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 21,429 | 16,820 |
Residential Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,119 | 2,323 |
Construction Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 96,620 | 65,149 |
Construction Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 47,356 | 39,135 |
Construction Real Estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 49,206 | 25,816 |
Construction Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 58 | 198 |
Commercial Real Estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 377,947 | 344,816 |
Commercial Real Estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 258,175 | 191,902 |
Commercial Real Estate | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 111,077 | 147,645 |
Commercial Real Estate | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 8,695 | 5,269 |
Commercial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 40,973 | 49,788 |
Commercial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 36,338 | 45,407 |
Commercial | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 4,368 | 4,301 |
Commercial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 267 | 80 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,204 | 2,376 |
Consumer | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 2,197 | 2,371 |
Consumer | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 7 | 5 |
Consumer | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Municipal | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 87,980 | 78,094 |
Municipal | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 87,980 | 78,094 |
Municipal | Satisfactory/Monitor | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | 0 | 0 |
Municipal | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Gross loans | $ 0 | $ 0 |
Allowance for Loan Losses and_7
Allowance for Loan Losses and Credit Quality - Schedule of Impaired Loans by Class (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Financing Receivable, Impaired [Line Items] | ||
Recorded investment | $ 2,258 | $ 1,790 |
Principal Balance | 2,268 | 1,973 |
Related Allowance | 30 | 46 |
With no allowance recorded, recorded investment | 7,213 | 4,986 |
With no allowance recorded, principal balance | 8,280 | 5,544 |
Total, recorded investment | 9,471 | 6,776 |
Total, principal balance | 10,548 | 7,517 |
Average Recorded Investment | 7,516 | 6,588 |
Interest Income Recognized | 314 | 427 |
Guarantees on impaired loans | 341 | 423 |
Residential real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment | 190 | 199 |
Principal Balance | 200 | 209 |
Related Allowance | 21 | 26 |
With no allowance recorded, recorded investment | 1,283 | 1,551 |
With no allowance recorded, principal balance | 1,787 | 2,043 |
Total, recorded investment | 1,473 | 1,750 |
Total, principal balance | 1,987 | 2,252 |
Average Recorded Investment | 1,570 | 1,749 |
Interest Income Recognized | 101 | 197 |
Construction real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance | 0 | 0 |
With no allowance recorded, recorded investment | 58 | 198 |
With no allowance recorded, principal balance | 83 | 218 |
Total, recorded investment | 58 | 198 |
Total, principal balance | 83 | 218 |
Average Recorded Investment | 116 | 205 |
Interest Income Recognized | 27 | 4 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded investment | 2,068 | 1,591 |
Principal Balance | 2,068 | 1,764 |
Related Allowance | 9 | 20 |
With no allowance recorded, recorded investment | 5,865 | 3,228 |
With no allowance recorded, principal balance | 6,403 | 3,274 |
Total, recorded investment | 7,933 | 4,819 |
Total, principal balance | 8,471 | 5,038 |
Average Recorded Investment | 5,822 | 4,552 |
Interest Income Recognized | 185 | 217 |
Commercial | ||
Financing Receivable, Impaired [Line Items] | ||
Related Allowance | 0 | 0 |
With no allowance recorded, recorded investment | 7 | 9 |
With no allowance recorded, principal balance | 7 | 9 |
Total, recorded investment | 7 | 9 |
Total, principal balance | 7 | 9 |
Average Recorded Investment | 8 | 82 |
Interest Income Recognized | $ 1 | $ 9 |
Allowance for Loan Losses and_8
Allowance for Loan Losses and Credit Quality - Schedule of Troubled Debt Restructured Loans (Details) $ in Thousands | Dec. 31, 2022 USD ($) loan | Dec. 31, 2021 USD ($) loan |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 29 | 35 |
Principal Balance | $ | $ 1,710 | $ 2,215 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 25 | 29 |
Principal Balance | $ | $ 1,473 | $ 1,750 |
Construction real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Principal Balance | $ | $ 58 | $ 81 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 3 |
Principal Balance | $ | $ 172 | $ 375 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Principal Balance | $ | $ 7 | $ 9 |
Allowance for Loan Losses and_9
Allowance for Loan Losses and Credit Quality - Schedule of New Troubled Debt Restructure Loans (Details) - Residential real estate $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Contracts | contract | 2 |
Pre-Modification Outstanding Recorded Investment | $ 445 |
Post-Modification Outstanding Recorded Investment | $ 445 |
Allowance for Loan Losses an_10
Allowance for Loan Losses and Credit Quality - Narrative (Details) - loan | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Credit Loss [Abstract] | ||
Number of TDR loans modified within the previous twelve months that had subsequently defaulted | 0 | 0 |
Premises and Equipment - Schedu
Premises and Equipment - Schedule of Class of Premises and Equipment (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 36,895 | $ 36,310 |
Less accumulated depreciation | (16,416) | (14,695) |
Premises and equipment, net | 20,479 | 21,615 |
Land and land improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 4,466 | 4,466 |
Building and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 20,432 | 20,412 |
Furniture and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | 11,636 | 11,310 |
Construction in progress and deposits on equipment | ||
Property, Plant and Equipment [Line Items] | ||
Total cost | $ 361 | $ 122 |
Premises and Equipment - Narrat
Premises and Equipment - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Property, Plant and Equipment [Abstract] | ||
Depreciation | $ 1,801 | $ 1,825 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Leases [Abstract] | ||
Weighted average remaining operating lease term | 20 years 4 months 17 days | |
Weighted average operating lease discount rate | 3.55% | |
Operating lease cost | $ 206 | $ 195 |
Rental income | $ 273 | $ 251 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Right-of-use Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Right-of-use assets included in Other assets | $ 2,152 | $ 1,612 |
Lease liabilities included in Accrued interest and other liabilities | $ 2,255 | $ 1,690 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Accrued Liabilities and Other Liabilities | Accrued Liabilities and Other Liabilities |
Leases - Schedule of Lease Matu
Leases - Schedule of Lease Maturity (Details) $ in Thousands | Dec. 31, 2022 USD ($) |
Leases [Abstract] | |
2023 | $ 168 |
2024 | 157 |
2025 | 159 |
2026 | 161 |
2027 | 168 |
Thereafter | 2,520 |
Undiscounted cash flows | $ 3,333 |
Leases - Schedule of Lease Liab
Leases - Schedule of Lease Liability Reconciliation (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Leases [Abstract] | ||
Undiscounted cash flows | $ 3,333 | |
Discount effect of cash flows | (1,078) | |
Lease liabilities | $ 2,255 | $ 1,690 |
Investment in Real Estate Lim_3
Investment in Real Estate Limited Partnerships - Schedule of Investments in Real Estate Limited Partnerships (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Investment In Real Estate Limited Partnerships [Abstract] | ||
Carrying values of investments carried at equity included in Other assets | $ 11,009 | $ 7,572 |
Capital contribution payable included in Accrued interest and other liabilities | $ 3,442 | $ 1,158 |
Investment in Real Estate Lim_4
Investment in Real Estate Limited Partnerships - Schedule of Investment in Real Estate Limited Partnerships Income Tax Impact (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Investment In Real Estate Limited Partnerships [Abstract] | ||
Provision for undistributed net losses of limited partnership investments | $ 1,138 | $ 1,011 |
Federal income tax credits related to limited partnership investments | (1,110) | (1,057) |
Net effect on Provision for income taxes | $ 28 | $ (46) |
Deposits - Schedule of Interest
Deposits - Schedule of Interest Bearing Deposits (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Interest bearing checking accounts | $ 329,785 | $ 281,638 |
Savings and money market accounts | 432,937 | 441,841 |
Time deposits, $250,000 and over | 26,357 | 16,223 |
Other time deposits | 126,688 | 90,492 |
Total interest-bearing deposits | $ 915,767 | $ 830,194 |
Deposits - Narrative (Details)
Deposits - Narrative (Details) - USD ($) $ in Millions | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
Brokered deposits | $ 33 | $ 0 |
Reciprocal deposits | $ 221.6 | $ 168.9 |
Deposits - Schedule of Time Dep
Deposits - Schedule of Time Deposits by Maturity (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Deposits [Abstract] | ||
2023 | $ 100,935 | |
2024 | 42,513 | |
2025 | 5,327 | |
2026 | 2,099 | |
2027 | 2,171 | |
Total time deposits | $ 153,045 | $ 106,715 |
Borrowed Funds (Details)
Borrowed Funds (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Borrowed Funds Narrative Data [Line Items] | ||
Borrowed funds | $ 50,000,000 | $ 0 |
FHLB borrowings interest rate | 4.41% | |
FHLB borrowing capacity, loans pledged | $ 272,900,000 | 224,400,000 |
FHLB borrowing capacity, maximum available | 170,400,000 | 138,700,000 |
FHLB borrowings and other credit subject to collateralization | 93,500,000 | 22,000,000 |
FHLB borrowing capacity, unused and available | 76,900,000 | 116,700,000 |
FHLB letters of credit, collateral for deposits | 42,500,000 | 37,500,000 |
FHLB letters of credit, fees paid | 34,000 | 45,000 |
Remaining borrowing capacity | 551,000 | 551,000 |
Union | ||
Borrowed Funds Narrative Data [Line Items] | ||
Correspondent banks line of credit, maximum available | 15,000,000 | |
Company | ||
Borrowed Funds Narrative Data [Line Items] | ||
Correspondent banks line of credit, amount outstanding | 0 | $ 0 |
Correspondent banks line of credit, maximum available | $ 5,000,000 |
Subordinated Notes (Details)
Subordinated Notes (Details) - USD ($) | 12 Months Ended | ||
Aug. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Debt Instrument [Line Items] | |||
Unamortized debt issuance costs | $ 295,000 | $ 329,000 | |
Amortization of debt issuance costs | $ 34,000 | $ 11,000 | |
Subordinated Notes Due 2031 | Subordinated Debt | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 16,500,000 | ||
Interest rate | 3.25% | ||
Subordinated Notes Due 2031 | Subordinated Debt | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | |||
Debt Instrument [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 2.63% |
Income Taxes - Schedule of Comp
Income Taxes - Schedule of Components of the Provision for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Current federal tax provision | $ 2,734 | $ 2,149 |
Current state tax provision | 168 | 126 |
Deferred tax (benefit) provision | (270) | 371 |
Provision for income taxes | $ 2,632 | $ 2,646 |
Income Taxes - Schedule of Effe
Income Taxes - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Income Tax Disclosure [Abstract] | ||
Computed “expected” tax expense | $ 3,202 | $ 3,321 |
State taxes | 133 | 100 |
Tax exempt interest | (479) | (446) |
Increase in cash surrender value of COLI | (107) | (65) |
Tax credits | (1,140) | (1,093) |
Equity in losses of limited partnerships | 965 | 842 |
Non-deductible expenses | 37 | 24 |
Other | 21 | (37) |
Provision for income taxes | $ 2,632 | $ 2,646 |
Income Taxes - Schedule of Co_2
Income Taxes - Schedule of Components of the Net Deferred Tax Asset (Liability) (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Components of the deferred tax asset | ||
Bad debts | $ 1,891 | $ 1,813 |
Deferred compensation | 345 | 308 |
Origination fees | 2 | 121 |
Loans held for sale | 5 | 56 |
Core deposit intangible | 88 | 109 |
Limited partnership investments | 15 | 0 |
Unrealized loss on investment securities available-for-sale | 9,947 | 412 |
Other | 92 | 74 |
Total deferred tax asset | 12,385 | 2,893 |
Components of the deferred tax liability | ||
Depreciation | (1,226) | (1,397) |
Mortgage servicing rights | (461) | (543) |
Limited partnership investments | 0 | (136) |
Goodwill | (389) | (341) |
Prepaid expenses | (190) | (162) |
Total deferred tax liability | (2,266) | (2,579) |
Net deferred tax asset | $ 10,119 | $ 314 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) | Dec. 31, 2022 USD ($) |
Income Tax Disclosure [Abstract] | |
Deferred tax assets, valuation allowance | $ 0 |
Employee Benefit Plans - Narrat
Employee Benefit Plans - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Employee Benefit Plan Disclosure [Line Items] | ||
Employer matching contribution, percent of match | 50% | |
Contribution vesting period | 3 years | |
Employer discretionary contribution percentage | 3% | 3% |
Deferred compensation expense | $ 7 | $ 7 |
Deferred compensation accrued benefit liability | 253 | 292 |
Cash surrender value of life insurance policies purchased to fund the deferred compensation plan | 433 | 1,100 |
General unsecured obligation of unfunded deferred compensation plan | 1,300 | 1,100 |
Employer contributions | $ 39 | $ 24 |
Minimum | ||
Employee Benefit Plan Disclosure [Line Items] | ||
Employer non-discretionary contribution percentage | 3% | |
Maximum | ||
Employee Benefit Plan Disclosure [Line Items] | ||
Maximum contribution percentage for employer match | 6% |
Employee Benefit Plans - Schedu
Employee Benefit Plans - Schedule of Costs of Retirement Plans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Retirement Benefits [Abstract] | ||
Employer matching | $ 323 | $ 320 |
Profit sharing | 361 | 367 |
Safe harbor | 401 | 395 |
Total | $ 1,085 | $ 1,082 |
Stock Based Compensation - Narr
Stock Based Compensation - Narrative (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2022 | Dec. 31, 2021 | May 31, 2022 | May 18, 2022 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 446,000 | $ 299,000 | ||
2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Shares authorized for equity awards (in shares) | 150,000 | 150,000 | ||
Stock options granted (in shares) | 0 | 0 | ||
Stock options outstanding (in shares) | 0 | 0 | ||
Restricted Stock Units (RSUs) | 2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares common stock upon satisfaction of applicable vesting conditions (in shares) | 1 | |||
Restricted Stock Units (RSUs) | 2014 Equity Plan | Director | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares common stock upon satisfaction of applicable vesting conditions (in shares) | 1 | |||
Unrecognized compensation expense, unvested RSUs | $ 38,000 | |||
Shared granted to non-employee directors (in shares) | 1,323 | |||
Compensation expense | $ 22,000 | |||
Time-Based Restricted Stock Units | 2021 Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of RSUs | 50% | |||
Time-Based Restricted Stock Units | 2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of RSUs | 50% | 50% | ||
Vesting period | 3 years | 3 years | ||
Performance Shares | 2021 Award | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of RSUs | 50% | |||
Performance Shares | 2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Percentage of RSUs | 50% | 50% | ||
Vesting period | 2 years | 2 years | ||
Stock Options | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Stock based compensation expense | $ 0 | $ 0 | ||
Share-based Payment Arrangement, Tranche One | Time-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Share-based Payment Arrangement, Tranche One | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50% | |||
Share-based Payment Arrangement, Tranche Two | Time-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Share-based Payment Arrangement, Tranche Two | Performance Shares | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 50% | |||
Share-based Payment Arrangement, Tranche Three | Time-Based Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Vesting percentage | 33.33% | |||
Executive Employee | Restricted Stock Units (RSUs) | 2014 Equity Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Unrecognized compensation expense, unvested RSUs | $ 297,000 | $ 317,000 |
Stock Based Compensation - Sche
Stock Based Compensation - Schedule of Restricted Stock Units Granted and Unvested (Details) - 2014 Equity Plan - Restricted Stock Units (RSUs) - Executive Employee | 12 Months Ended |
Dec. 31, 2022 $ / shares shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted (in shares) | 33,390 |
Number of Unvested RSUs (in shares) | 9,567 |
2021 Award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted (in shares) | 17,685 |
Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | $ 26.73 |
Number of Unvested RSUs (in shares) | 1,745 |
2022 Award | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of RSUs Granted (in shares) | 15,705 |
Weighted-Average Grant Date Fair Value (in usd per share) | $ / shares | $ 31.99 |
Number of Unvested RSUs (in shares) | 7,822 |
Stock Based Compensation - Sc_2
Stock Based Compensation - Schedule of Stock Option Plan Proceeds from the Exercise of Options (Details) $ / shares in Units, $ in Thousands | 12 Months Ended |
Dec. 31, 2021 USD ($) $ / shares shares | |
Share-Based Payment Arrangement [Abstract] | |
Proceeds received | $ 72 |
Number of shares exercised (in shares) | shares | 3,000 |
Weighted average price per share (in usd per share) | $ / shares | $ 24 |
Total intrinsic value of options exercised | $ 27 |
Earnings Per Share - Schedule o
Earnings Per Share - Schedule of Reconciliation of Basic EPS and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Earnings Per Share [Abstract] | ||||||||||
Net income | $ 3,444 | $ 3,758 | $ 2,931 | $ 2,482 | $ 3,378 | $ 3,925 | $ 2,991 | $ 2,876 | $ 12,615 | $ 13,170 |
Weighted average common shares outstanding for basic EPS (in shares) | 4,496,169 | 4,483,791 | ||||||||
Dilutive effect of stock-based awards (in shares) | 18,055 | 25,157 | ||||||||
Weighted-average common and potential common shares for diluted EPS (in shares) | 4,514,224 | 4,508,948 | ||||||||
Earnings per common share: | ||||||||||
Basic EPS (in usd per share) | $ 0.77 | $ 0.84 | $ 0.65 | $ 0.55 | $ 0.76 | $ 0.87 | $ 0.67 | $ 0.64 | $ 2.81 | $ 2.94 |
Diluted EPS (in usd per share) | $ 0.76 | $ 0.83 | $ 0.65 | $ 0.55 | $ 0.75 | $ 0.87 | $ 0.66 | $ 0.64 | $ 2.79 | $ 2.92 |
Financial Instruments With Of_3
Financial Instruments With Off-Balance-Sheet Risk - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Financial Instruments With Off-Balance-Sheet Risk [Abstract] | ||
Commitment to sell residential mortgage loans | $ 904 | $ 2,700 |
Financial Instruments With Of_4
Financial Instruments With Off-Balance-Sheet Risk - Schedule of Contractual Amount of Financial Instruments with Credit Risk (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 230,155 | $ 224,682 |
Commitments to originate loans | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 39,217 | 48,910 |
Unused lines of credit | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 185,539 | 168,442 |
Standby and commercial letters of credit | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 1,762 | 2,158 |
Credit card arrangements | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 241 | 170 |
MPF credit enhancement obligation, net (See Note 19) | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | 396 | 428 |
Commitment to purchase investment in a real estate limited partnership | ||
Concentration Risk [Line Items] | ||
Contract or Notional Amount | $ 3,000 | $ 4,574 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Loss Contingencies [Line Items] | ||
Total loans sold through the MPF program since inceptions into the program | $ 33,900 | $ 33,500 |
Outstanding principal balance | 9,100 | 9,500 |
Credit Enhancement Obligation | ||
Loss Contingencies [Line Items] | ||
Contractual risk sharing commitments, maximum liability | 415 | 447 |
Reserve for contingent contractual liability, amount accrued | $ 19 | $ 19 |
Fair Value Measurement - Schedu
Fair Value Measurement - Schedule of Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 250,267 | $ 267,819 |
U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 39,245 | 36,638 |
Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 164,432 | 178,250 |
State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 40,466 | 45,254 |
Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,124 | 7,677 |
Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | 1,264 | 1,132 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,551 | 2,875 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 2,551 | 2,875 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | 1,264 | 1,132 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 247,716 | 264,944 |
Significant Other Observable Inputs (Level 2) | U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 36,694 | 33,763 |
Significant Other Observable Inputs (Level 2) | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 164,432 | 178,250 |
Significant Other Observable Inputs (Level 2) | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 40,466 | 45,254 |
Significant Other Observable Inputs (Level 2) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 6,124 | 7,677 |
Significant Other Observable Inputs (Level 2) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | U.S. Government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Agency MBS | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | State and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Corporate | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Mutual funds | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Mutual funds | $ 0 | $ 0 |
Fair Value Measurement - Sche_2
Fair Value Measurement - Schedule of Fair Values and Carrying Amounts, Significant Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Interest bearing deposits in banks | $ 16,428 | $ 13,196 |
Loans held for sale | 1,178 | 13,829 |
Deposits | ||
Noninterest bearing | 286,145 | 264,888 |
Interest bearing | 762,722 | 723,479 |
Time | 153,045 | 106,715 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 37,885 | 65,922 |
Interest bearing deposits in banks | 0 | 0 |
Investment securities | 3,815 | 4,007 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Deposits | ||
Noninterest bearing | 286,145 | 264,888 |
Interest bearing | 762,722 | 723,479 |
Time | 0 | 0 |
Short-term borrowed funds | 0 | |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Residential real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing deposits in banks | 16,428 | 13,196 |
Investment securities | 247,716 | 264,944 |
Loans held for sale | 1,202 | 14,088 |
Accrued interest receivable | 1,014 | 734 |
Deposits | ||
Noninterest bearing | 0 | 0 |
Interest bearing | 0 | 0 |
Time | 149,166 | 106,588 |
Short-term borrowed funds | 49,997 | |
Subordinated notes | 14,037 | 16,179 |
Accrued interest payable | 354 | 225 |
Significant Other Observable Inputs (Level 2) | Residential real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 0 | 0 |
Significant Unobservable Inputs (Level 3) | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 0 | 0 |
Interest bearing deposits in banks | 0 | 0 |
Investment securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Accrued interest receivable | 3,149 | 2,514 |
Deposits | ||
Noninterest bearing | 0 | 0 |
Interest bearing | 0 | 0 |
Time | 0 | 0 |
Short-term borrowed funds | 0 | |
Subordinated notes | 0 | 0 |
Accrued interest payable | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Residential real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 319,066 | 246,573 |
Significant Unobservable Inputs (Level 3) | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 94,231 | 64,539 |
Significant Unobservable Inputs (Level 3) | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 358,897 | 341,451 |
Significant Unobservable Inputs (Level 3) | Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 38,588 | 48,682 |
Significant Unobservable Inputs (Level 3) | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 2,161 | 2,350 |
Significant Unobservable Inputs (Level 3) | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 86,306 | 78,748 |
Carrying Amount | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 37,885 | 65,922 |
Interest bearing deposits in banks | 16,428 | 13,196 |
Investment securities | 251,531 | 268,951 |
Loans held for sale | 1,178 | 13,829 |
Accrued interest receivable | 4,163 | 3,248 |
Nonmarketable equity securities | 2,816 | 1,164 |
Deposits | ||
Noninterest bearing | 286,145 | 264,888 |
Interest bearing | 762,722 | 723,479 |
Time | 153,045 | 106,715 |
Short-term borrowed funds | 50,000 | |
Subordinated notes | 16,205 | 16,171 |
Accrued interest payable | 354 | 225 |
Carrying Amount | Residential real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 350,507 | 244,980 |
Carrying Amount | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 95,723 | 64,370 |
Carrying Amount | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 373,990 | 340,066 |
Carrying Amount | Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 40,729 | 49,558 |
Carrying Amount | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 2,197 | 2,367 |
Carrying Amount | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 88,008 | 78,078 |
Estimated Fair Value | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cash and cash equivalents | 37,885 | 65,922 |
Interest bearing deposits in banks | 16,428 | 13,196 |
Investment securities | 251,531 | 268,951 |
Loans held for sale | 1,202 | 14,088 |
Accrued interest receivable | 4,163 | 3,248 |
Deposits | ||
Noninterest bearing | 286,145 | 264,888 |
Interest bearing | 762,722 | 723,479 |
Time | 149,166 | 106,588 |
Short-term borrowed funds | 49,997 | |
Subordinated notes | 14,037 | 16,179 |
Accrued interest payable | 354 | 225 |
Estimated Fair Value | Residential real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 319,066 | 246,573 |
Estimated Fair Value | Construction real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 94,231 | 64,539 |
Estimated Fair Value | Commercial real estate | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 358,897 | 341,451 |
Estimated Fair Value | Commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 38,588 | 48,682 |
Estimated Fair Value | Consumer | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | 2,161 | 2,350 |
Estimated Fair Value | Municipal | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Loans, net | $ 86,306 | $ 78,748 |
Transactions with Related Par_3
Transactions with Related Parties - Schedule of Loan Transactions with Related Parties (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Loans and Leases Receivable, Related Parties [Roll Forward] | ||
Beginning balance | $ 1,146 | $ 731 |
New loans and advances on lines | 1,032 | 2,050 |
Repayments | (957) | (1,635) |
Other, net | (929) | 0 |
Ending balance | 292 | 1,146 |
Balance available on lines of credit or loan commitments | $ 133 | $ 571 |
Transactions with Related Par_4
Transactions with Related Parties - Narrative (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Related Party Transactions [Abstract] | ||
Deposit accounts with related parties | $ 1,000 | $ 2,200 |
Union's asset management group investment in union certificates of deposit | $ 139 | $ 204 |
Regulatory Capital Requiremen_3
Regulatory Capital Requirements - Narrative (Details) | Dec. 31, 2022 | Dec. 31, 2021 |
Parent Company | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets, actual | 0.0666 | 0.0712 |
Union | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 capital to average assets, actual | 0.0784 | 0.0844 |
Regulatory Capital Requiremen_4
Regulatory Capital Requirements - Schedule of Regulatory Capital Amounts and Ratios (Details) $ in Thousands | Dec. 31, 2022 USD ($) | Dec. 31, 2021 USD ($) |
Company | ||
Total capital to risk weighted assets | ||
Total capital to risk weighted assets, actual | $ 114,959 | $ 108,175 |
Total capital to risk weighted assets, actual, ratio | 0.1398 | 0.1539 |
Total capital to risk weighted assets, for capital adequacy purposes | $ 65,785 | $ 56,231 |
Total capital to risk weighted assets, for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Tier 1 capital to risk weighted assets | ||
Tier 1 capital to risk weighted assets, actual | $ 90,415 | $ 83,668 |
Tier 1 capital to risk weighted assets, actual, ratio | 0.1100 | 0.1190 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | $ 49,317 | $ 42,186 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Common Equity Tier 1 to risk weighted assets | ||
Common Equity Tier 1 to risk weighted assets, actual | $ 90,415 | $ 83,668 |
Common Equity Tier 1 to risk weighted assets, actual, ratio | 0.1100 | 0.1190 |
Common Equity Tier 1 to risk weighted assets, for capital adequacy purposes | $ 36,988 | $ 31,639 |
Common Equity Tier 1 to risk weighted assets, for capital adequacy purposes, ratio | 4.50% | 4.50% |
Tier 1 capital to average assets | ||
Tier 1 capital to average assets, actual | $ 90,415 | $ 83,668 |
Tier 1 capital to average assets, actual, ratio | 0.0666 | 0.0712 |
Tier 1 capital to average assets, for capital adequacy purposes | $ 54,303 | $ 47,004 |
Tier 1 capital to average assets, for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Union | ||
Total capital to risk weighted assets | ||
Total capital to risk weighted assets, actual | $ 114,618 | $ 107,480 |
Total capital to risk weighted assets, actual, ratio | 0.1395 | 0.1531 |
Total capital to risk weighted assets, for capital adequacy purposes | $ 65,731 | $ 56,162 |
Total capital to risk weighted assets, for capital adequacy purposes, ratio | 0.0800 | 0.0800 |
Total capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | $ 82,163 | $ 70,202 |
Total capital to risk weighted assets, to be well capitalized under prompt corrective action provisions, ratio | 0.1000 | 0.1000 |
Tier 1 capital to risk weighted assets | ||
Tier 1 capital to risk weighted assets, actual | $ 106,279 | $ 99,144 |
Tier 1 capital to risk weighted assets, actual, ratio | 0.1294 | 0.1412 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes | $ 49,279 | $ 42,129 |
Tier 1 capital to risk weighted assets, for capital adequacy purposes, ratio | 0.0600 | 0.0600 |
Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions | $ 65,706 | $ 56,172 |
Tier 1 capital to risk weighted assets, to be well capitalized under prompt corrective action provisions, ratio | 0.0800 | 0.0800 |
Common Equity Tier 1 to risk weighted assets | ||
Common Equity Tier 1 to risk weighted assets, actual | $ 106,279 | $ 99,144 |
Common Equity Tier 1 to risk weighted assets, actual, ratio | 0.1294 | 0.1412 |
Common Equity Tier 1 to risk weighted assets, for capital adequacy purposes | $ 36,959 | $ 31,597 |
Common Equity Tier 1 to risk weighted assets, for capital adequacy purposes, ratio | 4.50% | 4.50% |
Common Equity Tier 1 to risk weighted assets, to be well capitalized under prompt corrective action provisions | $ 53,386 | $ 45,640 |
Common Equity Tier 1 to risk weighted assets, to be well capitalized under prompt corrective action provisions, ratio | 6.50% | 6.50% |
Tier 1 capital to average assets | ||
Tier 1 capital to average assets, actual | $ 106,279 | $ 99,144 |
Tier 1 capital to average assets, actual, ratio | 0.0784 | 0.0844 |
Tier 1 capital to average assets, for capital adequacy purposes | $ 54,224 | $ 46,988 |
Tier 1 capital to average assets, for capital adequacy purposes, ratio | 0.0400 | 0.0400 |
Tier 1 capital to average assets, to be well capitalized under prompt corrective action provisions | $ 67,780 | $ 58,735 |
Tier 1 capital to average assets, to be well capitalized under prompt corrective action provisions, ratio | 0.0500 | 0.0500 |
Treasury Stock (Details)
Treasury Stock (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Equity, Class of Treasury Stock [Line Items] | ||
Number of shares authorized to be repurchased per quarter (in shares) | 2,500 | |
Purchase of treasury stock | $ 79 | $ 2 |
Number of shares of common stock repurchased since inception of stock repurchase program (in shares) | 20,440 | |
Cost per share of common stock repurchased since inception of stock repurchase program, low (in usd per share) | $ 17.86 | |
Cost per share of common stock repurchased since inception of stock repurchase program, high (in usd per share) | $ 48.82 | |
Total cost of common stock repurchased since inception of stock repurchase program | $ 553 | |
Number of shares of common stock reserved for issuance and sale under the DRIP (in shares) | 200,000 | |
Common Stock | ||
Equity, Class of Treasury Stock [Line Items] | ||
Purchase of treasury stock (in shares) | 2,650 | 97 |
Shares issued under the DRIP (in shares) | 7,583 |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Components of Accumulated OCI (Details) - USD ($) $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 |
Stockholders' Equity Note [Abstract] | ||
Net unrealized loss on investment securities AFS | $ (37,419) | $ (1,552) |
Other Comprehensive Income - _2
Other Comprehensive Income - Schedule of Tax Effects Allocated to Each Component of OCI (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Before-Tax Amount | ||
Net unrealized holding losses arising during the year on investment securities AFS | $ (45,370) | $ (5,300) |
Reclassification adjustment for net gains on investment securities AFS realized in net income | (31) | 0 |
Total other comprehensive loss | (45,401) | (5,300) |
Tax Benefit/ Expense | ||
Net unrealized holding losses arising during the year on investment securities AFS | 9,528 | 1,112 |
Reclassification adjustment for net gains on investment securities AFS realized in net income | 6 | 0 |
Total other comprehensive loss | 9,534 | 1,112 |
Net-of-Tax Amount | ||
Net unrealized holding losses arising during the year on investment securities available-for-sale | (35,842) | (4,188) |
Reclassification adjustment for net gains on investment securities AFS realized in net income | (25) | 0 |
Total other comprehensive loss | $ (35,867) | $ (4,188) |
Other Comprehensive Income - _3
Other Comprehensive Income - Schedule of Reclassification Adjustments from OCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Net gains on investment securities AFS | $ (15,247) | $ (15,816) | ||||||||
Provision for income taxes | 2,632 | 2,646 | ||||||||
Net income | $ (3,444) | $ (3,758) | $ (2,931) | $ (2,482) | $ (3,378) | $ (3,925) | $ (2,991) | $ (2,876) | (12,615) | (13,170) |
Reclassification Out of Accumulated Other Comprehensive Income | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||||||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||||||||
Net gains on investment securities AFS | (31) | 0 | ||||||||
Provision for income taxes | 6 | 0 | ||||||||
Net income | $ (25) | $ 0 |
Subsequent Events (Details)
Subsequent Events (Details) - $ / shares | 3 Months Ended | 12 Months Ended | |||
Jan. 18, 2023 | Sep. 30, 2022 | Jun. 30, 2022 | Dec. 31, 2022 | Dec. 31, 2021 | |
Subsequent Event [Line Items] | |||||
Dividends per common share (in usd per share) | $ 0.35 | $ 0.35 | $ 1.40 | $ 1.32 | |
Subsequent Event | |||||
Subsequent Event [Line Items] | |||||
Dividends per common share (in usd per share) | $ 0.36 | ||||
Increase in cash dividend, percentage | 2.90% |
Condensed Financial Informati_3
Condensed Financial Information (Parent Company Only) - Schedule of Condensed Balance Sheets (Details) - USD ($) $ / shares in Units, $ in Thousands | Dec. 31, 2022 | Dec. 31, 2021 | Dec. 31, 2020 |
ASSETS | |||
Other assets | $ 39,316 | $ 23,677 | |
Total assets | 1,336,489 | 1,205,373 | |
LIABILITIES | |||
Subordinated notes | 16,205 | 16,171 | |
Total liabilities | $ 1,281,269 | $ 1,121,032 | |
STOCKHOLDERS' EQUITY | |||
Common stock, par value (in usd per share) | $ 2 | $ 2 | |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | |
Common stock, shares issued (in shares) | 4,982,523 | 4,967,093 | |
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,982,523 shares issued at December 31, 2022 and 4,967,093 shares issued at December 31, 2021 | $ 9,965 | $ 9,934 | |
Additional paid-in capital | 2,225 | 1,769 | |
Retained earnings | $ 84,669 | $ 78,350 | |
Treasury stock, shares (in shares) | 473,936 | 473,438 | |
Treasury stock at cost; 473,936 shares at December 31, 2022 and 473,438 shares at December 31, 2021 | $ (4,220) | $ (4,160) | |
Accumulated other comprehensive loss | (37,419) | (1,552) | |
Total stockholders' equity | 55,220 | 84,341 | $ 80,867 |
Total liabilities and stockholders' equity | 1,336,489 | 1,205,373 | |
Parent Company | |||
ASSETS | |||
Cash | 156 | 342 | |
Other investments | 75 | 73 | |
Investment in subsidiary - Union | 71,083 | 99,817 | |
Other assets | 644 | 837 | |
Total assets | 71,958 | 101,069 | |
LIABILITIES | |||
Subordinated notes | 16,205 | 16,171 | |
Accrued interest and other liabilities | 533 | 557 | |
Total liabilities | $ 16,738 | $ 16,728 | |
STOCKHOLDERS' EQUITY | |||
Common stock, par value (in usd per share) | $ 2 | $ 2 | |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 | |
Common stock, shares issued (in shares) | 4,982,523 | 4,967,093 | |
Common stock, $2.00 par value; 7,500,000 shares authorized; 4,982,523 shares issued at December 31, 2022 and 4,967,093 shares issued at December 31, 2021 | $ 9,965 | $ 9,934 | |
Additional paid-in capital | 2,225 | 1,769 | |
Retained earnings | $ 84,669 | $ 78,350 | |
Treasury stock, shares (in shares) | 473,936 | 473,438 | |
Treasury stock at cost; 473,936 shares at December 31, 2022 and 473,438 shares at December 31, 2021 | $ (4,220) | $ (4,160) | |
Accumulated other comprehensive loss | (37,419) | (1,552) | |
Total stockholders' equity | 55,220 | 84,341 | |
Total liabilities and stockholders' equity | $ 71,958 | $ 101,069 |
Condensed Financial Informati_4
Condensed Financial Information (Parent Company Only) - Schedule of Condensed Statements of Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses | ||||||||||
Interest on subordinated notes | $ 569 | $ 199 | ||||||||
Administrative and other | 8,446 | 8,477 | ||||||||
Applicable income tax benefit | 2,632 | 2,646 | ||||||||
Net income | $ 3,444 | $ 3,758 | $ 2,931 | $ 2,482 | $ 3,378 | $ 3,925 | $ 2,991 | $ 2,876 | 12,615 | 13,170 |
Parent Company | ||||||||||
Revenues | ||||||||||
Dividends - bank subsidiary - Union | 6,850 | 5,400 | ||||||||
Other income | 20 | 26 | ||||||||
Total revenues | 6,870 | 5,426 | ||||||||
Expenses | ||||||||||
Interest on subordinated notes | 569 | 200 | ||||||||
Administrative and other | 544 | 600 | ||||||||
Total expenses | 1,113 | 800 | ||||||||
Income before applicable income tax benefit and equity in undistributed net income of subsidiary | 5,757 | 4,626 | ||||||||
Applicable income tax benefit | (233) | (164) | ||||||||
Income before equity in undistributed net income of subsidiary | 5,990 | 4,790 | ||||||||
Equity in undistributed net income - Union | 6,625 | 8,380 | ||||||||
Net income | $ 12,615 | $ 13,170 |
Condensed Financial Informati_5
Condensed Financial Information (Parent Company Only) - Schedule of Condensed Statements of Cash Flows (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | $ 3,444 | $ 3,758 | $ 2,931 | $ 2,482 | $ 3,378 | $ 3,925 | $ 2,991 | $ 2,876 | $ 12,615 | $ 13,170 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Net losses on other investments | 60 | 21 | ||||||||
Amortization of debt issuance costs | 34 | 11 | ||||||||
Decrease in other assets | (225) | (5,831) | ||||||||
Net cash provided by operating activities | 29,031 | 29,190 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Net cash used in investing activities | (207,583) | (190,008) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Proceeds from issuance of subordinated notes | 0 | 16,500 | ||||||||
Debt issuance costs incurred with issuance of subordinated notes | 0 | (340) | ||||||||
Dividends paid | (6,236) | (5,877) | ||||||||
Purchase of treasury stock | (79) | (2) | ||||||||
Net cash provided by financing activities | 150,515 | 103,969 | ||||||||
Beginning of year | 65,922 | 122,771 | 65,922 | 122,771 | ||||||
End of year | 37,885 | 65,922 | 37,885 | 65,922 | ||||||
Dividends paid on Common Stock: | ||||||||||
Dividends declared | 6,296 | 5,917 | ||||||||
Dividends reinvested | (60) | (40) | ||||||||
Dividends paid | 6,236 | 5,877 | ||||||||
Parent Company | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net income | 12,615 | 13,170 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | ||||||||||
Equity in undistributed net income of Union | (6,625) | (8,380) | ||||||||
Net losses on other investments | 10 | (6) | ||||||||
Amortization of debt issuance costs | 34 | 11 | ||||||||
Decrease in other assets | 193 | 32 | ||||||||
(Decrease) increase in other liabilities | (86) | 76 | ||||||||
Net cash provided by operating activities | 6,141 | 4,903 | ||||||||
CASH FLOWS FROM INVESTING ACTIVITIES | ||||||||||
Investment in Union | 0 | (15,000) | ||||||||
Purchases of other investments | (12) | (7) | ||||||||
Net cash used in investing activities | (12) | (15,007) | ||||||||
CASH FLOWS FROM FINANCING ACTIVITIES | ||||||||||
Proceeds from issuance of subordinated notes | 0 | 16,500 | ||||||||
Debt issuance costs incurred with issuance of subordinated notes | 0 | (340) | ||||||||
Dividends paid | (6,236) | (5,877) | ||||||||
Issuance of common stock | 0 | 72 | ||||||||
Purchase of treasury stock | (79) | (2) | ||||||||
Net cash provided by financing activities | (6,315) | 10,353 | ||||||||
Net (decrease) increase in cash | (186) | 249 | ||||||||
Beginning of year | $ 342 | $ 93 | 342 | 93 | ||||||
End of year | $ 156 | $ 342 | 156 | 342 | ||||||
Supplemental Disclosures of Cash Flow Information | ||||||||||
Interest paid | 578 | 12 | ||||||||
Dividends paid on Common Stock: | ||||||||||
Dividends declared | 6,296 | 5,917 | ||||||||
Dividends reinvested | (60) | (40) | ||||||||
Dividends paid | $ 6,236 | $ 5,877 |
Quarterly Financial Data (Una_3
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Dec. 31, 2022 | Sep. 30, 2022 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Sep. 30, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2022 | Dec. 31, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | ||||||||||
Interest and dividend income | $ 12,355 | $ 11,463 | $ 10,404 | $ 9,726 | $ 10,023 | $ 9,852 | $ 9,898 | $ 9,500 | $ 43,948 | $ 39,273 |
Interest expense | 2,005 | 1,023 | 733 | 763 | 779 | 706 | 979 | 1,101 | 4,524 | 3,565 |
Net interest income | 10,350 | 10,440 | 9,671 | 8,963 | 9,244 | 9,146 | 8,919 | 8,399 | 39,424 | 35,708 |
Provision (credit) for loan losses | (225) | 0 | 75 | 150 | ||||||
Noninterest income | 2,300 | 2,467 | 2,165 | 2,055 | 3,002 | 4,201 | 3,139 | 2,621 | 8,987 | 12,963 |
Noninterest expenses | 8,389 | 8,366 | 8,295 | 8,114 | 8,465 | 8,548 | 8,389 | 7,453 | 33,164 | 32,855 |
Net income | $ 3,444 | $ 3,758 | $ 2,931 | $ 2,482 | $ 3,378 | $ 3,925 | $ 2,991 | $ 2,876 | $ 12,615 | $ 13,170 |
Basic earnings per common share (in usd per share) | $ 0.77 | $ 0.84 | $ 0.65 | $ 0.55 | $ 0.76 | $ 0.87 | $ 0.67 | $ 0.64 | $ 2.81 | $ 2.94 |
Diluted earnings per common share (in usd per share) | $ 0.76 | $ 0.83 | $ 0.65 | $ 0.55 | $ 0.75 | $ 0.87 | $ 0.66 | $ 0.64 | $ 2.79 | $ 2.92 |
Other Noninterest Income and _3
Other Noninterest Income and Other Noninterest Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2022 | Dec. 31, 2021 | |
Expenses | ||
Vermont franchise tax | $ 1,087 | $ 968 |
Professional fees | 877 | 922 |
ATM network and debit card expense | 980 | 898 |
FDIC insurance assessment | 622 | 644 |
Advertising and public relations | 617 | 530 |
Director and advisory board fees | 519 | 524 |
Other expenses | 3,744 | 3,991 |
Total other expenses | $ 8,446 | $ 8,477 |