Document And Entity Information
Document And Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Aug. 07, 2020 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2020 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Registrant Name | UNITED BANCORP INC /OH/ | |
Entity Central Index Key | 0000731653 | |
Current Fiscal Year End Date | --12-31 | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Non-accelerated Filer | |
Trading Symbol | UBCP | |
Entity Current Reporting Status | Yes | |
Entity Common Stock, Shares Outstanding | 5,966,351 | |
Entity Emerging Growth Company | false | |
Entity Small Business | true | |
Entity Shell Company | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Assets | ||
Cash and due from banks | $ 7,785 | $ 5,697 |
Interest-bearing demand deposits | 13,862 | 9,288 |
Cash and cash equivalents | 21,647 | 14,985 |
Available-for-sale securities | 191,520 | 188,785 |
Loans, net of allowance for loan losses of $4,015 and $2,231 at June 30, 2020 and December 31, 2019, respectively | 441,886 | 439,317 |
Premises and equipment | 13,671 | 12,402 |
Federal Home Loan Bank stock | 4,432 | 4,012 |
Foreclosed assets held for sale, net | 719 | 819 |
Core deposit and other intangible assets | 1,467 | 1,542 |
Accrued interest receivable | 4,247 | 2,697 |
Bank-owned life insurance | 17,442 | 17,196 |
Other assets | 4,297 | 3,951 |
Total assets | 701,328 | 685,706 |
Deposits | ||
Demand | 384,379 | 334,380 |
Savings | 116,559 | 108,217 |
Time | 92,789 | 105,472 |
Total deposits | 593,727 | 548,069 |
Securities sold under repurchase agreements | 9,494 | 6,915 |
Federal Home Loan Bank advances | 0 | 39,800 |
Deferred federal income tax | 2,233 | 1,736 |
Subordinated debentures | 23,574 | 23,543 |
Interest payable and other liabilities | 6,315 | 5,721 |
Total liabilities | 635,343 | 625,784 |
Stockholders' Equity | ||
Preferred stock, no par value, authorized 2,000,000 shares; no shares issued | 0 | 0 |
Common stock, $1 par value; authorized 10,000,000 shares; issued 5,966,351 shares June 20, 2020 and December 31, 2019 - 5,959,351 shares; outstanding 2020 - 5,723,952; 2019 - 5,740,817 | 5,966 | 5,959 |
Additional paid-in capital | 22,845 | 22,871 |
Retained earnings | 29,479 | 27,905 |
Stock held by deferred compensation plan; 2020 - 162,806 shares, 2019 - 176,134 shares | (1,567) | (1,659) |
Unearned ESOP compensation | (84) | (228) |
Accumulated other comprehensive income | 10,334 | 5,536 |
Treasury stock, at cost 2020 - 79,593 shares, 2019 - 42,400 shares | (988) | (462) |
Total stockholders' equity | 65,985 | 59,922 |
Total liabilities and stockholders' equity | $ 701,328 | $ 685,706 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Condensed Consolidated Balance Sheets | ||
Loans, allowance for loan losses | $ 4,015 | $ 2,231 |
Preferred stock, no par value | $ 0 | $ 0 |
Preferred stock, authorized | 2,000,000 | 2,000,000 |
Preferred stock, shares issued | 0 | 0 |
Common stock, par value | $ 1 | $ 1 |
Common stock, authorized | 10,000,000 | 10,000,000 |
Common stock, issued | 5,966,351 | 5,959,351 |
Common Stock, Shares, Outstanding | 5,723,952 | 5,740,817 |
Stock held by deferred compensation plan, shares | 162,806 | 176,134 |
Treasury stock, shares | 79,593 | 42,400 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest and dividend income | ||||
Loans, including fees | $ 5,425 | $ 5,399 | $ 11,267 | $ 10,634 |
Taxable securities | 193 | 197 | 416 | 402 |
Non-taxable securities | 1,299 | 849 | 2,496 | 1,573 |
Federal funds sold | 4 | 146 | 33 | 231 |
Dividends on Federal Home Loan Bank stock and other | 28 | 57 | 56 | 123 |
Total interest and dividend income | 6,949 | 6,648 | 14,268 | 12,963 |
Deposits | ||||
Demand | 523 | 594 | 1,128 | 1,165 |
Savings | 7 | 52 | 23 | 98 |
Time | 449 | 579 | 949 | 1,088 |
Borrowings | 448 | 244 | 1,012 | 325 |
Total interest expense | 1,427 | 1,469 | 3,112 | 2,676 |
Net interest income | 5,522 | 5,179 | 11,156 | 10,287 |
Provision for loan losses | 1,408 | 120 | 1,971 | 210 |
Net interest income after provision for loan losses | 4,114 | 5,059 | 9,185 | 10,077 |
Noninterest income | ||||
Service charges on deposit accounts | 671 | 694 | 1,330 | 1,407 |
Realized gains on sales of available-for-sale securities | 1,181 | 1,250 | 0 | |
Realized gains on sales of loans | 40 | 9 | 46 | 13 |
Other income | 264 | 244 | 574 | 472 |
Total noninterest income | 2,156 | 947 | 3,200 | 1,892 |
Noninterest expense | ||||
Salaries and employee benefits | 2,296 | 2,154 | 4,642 | 4,337 |
Net occupancy and equipment expense | 609 | 567 | 1,215 | 1,117 |
Professional services | 371 | 307 | 648 | 610 |
Insurance | 112 | 111 | 230 | 222 |
Deposit insurance premiums | 46 | 60 | 90 | 112 |
Franchise and other taxes | 125 | 109 | 247 | 214 |
Advertising | 143 | 138 | 218 | 275 |
Stationery and office supplies | 26 | 28 | 52 | 70 |
Amortization of core deposit premium | 38 | 37 | 75 | 75 |
Other expenses | 813 | 661 | 1,572 | 1,302 |
Total noninterest expense | 4,579 | 4,172 | 8,989 | 8,334 |
Income before federal income taxes | 1,691 | 1,834 | 3,396 | 3,635 |
Federal income taxes | 16 | 188 | 142 | 375 |
Net income | $ 1,675 | $ 1,646 | $ 3,254 | $ 3,260 |
EARNINGS PER COMMON SHARE | ||||
Basic Earnings Per Share | $ 0.29 | $ 0.29 | $ 0.57 | $ 0.57 |
Diluted Earnings Per Share | 0.29 | 0.29 | 0.57 | 0.57 |
DIVIDENDS PER COMMON SHARE | $ 0.1425 | $ 0.135 | $ 0.285 | $ 0.2675 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Net income | $ 1,675 | $ 1,646 | $ 3,254 | $ 3,260 |
Other comprehensive income (loss), net of tax | ||||
Reclassification adjustment for realized gains on available-for-sale securities included in net income, net of taxes $248 and $263 | (933) | (987) | ||
Unrealized holding gains (losses) on securities during the period, net of tax of $816, $623, $1,538 and $1,280 for each respective period | 3,070 | 2,345 | 5,785 | 4,815 |
Comprehensive income | $ 3,812 | $ 3,991 | $ 8,052 | $ 8,075 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Condensed Consolidated Statements of Comprehensive Income | ||||
Reclassification adjustment for realized gains on available for sale securities included in net income net of taxes | $ 248 | $ 248 | $ 263 | $ 263 |
Unrealized holding gains (losses) on securities during the period, net of tax | $ 816 | $ 623 | $ 1,538 | $ 1,280 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Additional Paid-in Capital | Treasury Stock And Deferred Compensation | Shares Acquired By ESOP | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Beginning Balance at Dec. 31, 2018 | $ 5,927 | $ 22,556 | $ (1,747) | $ (404) | $ 24,321 | $ (10) | $ 50,643 |
Net income | 0 | 0 | 0 | 0 | 3,260 | 0 | 3,260 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 4,815 | 4,815 |
Cash dividends - per share | 0 | 0 | 0 | 0 | (1,579) | 0 | (1,579) |
Shares sold for deferred compensation plan | 0 | (148) | 148 | 0 | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | (416) | 0 | 0 | 0 | (416) |
Expense related to share-based compensation plans | 0 | 121 | 0 | 0 | 0 | 0 | 121 |
Restricted stock activity | 12 | (12) | 0 | 0 | 0 | 0 | 0 |
Amortization of ESOP | 0 | 0 | 0 | 136 | 0 | 0 | 136 |
Ending Balance at Jun. 30, 2019 | 5,939 | 22,517 | (2,015) | (268) | 26,002 | 4,805 | 56,980 |
Beginning Balance at Mar. 31, 2019 | 5,927 | 22,826 | (2,245) | (335) | 25,153 | 2,460 | 53,786 |
Net income | 1,646 | 1,646 | |||||
Other comprehensive income (loss) | 2,345 | 2,345 | |||||
Cash dividends - per share | (797) | (797) | |||||
Shares sold for deferred compensation plan | (379) | 379 | |||||
Repurchase of common stock | (149) | (149) | |||||
Expense related to share-based compensation plans | 82 | 82 | |||||
Restricted stock activity | 12 | (12) | |||||
Amortization of ESOP | 67 | 67 | |||||
Ending Balance at Jun. 30, 2019 | 5,939 | 22,517 | (2,015) | (268) | 26,002 | 4,805 | 56,980 |
Beginning Balance at Dec. 31, 2019 | 5,959 | 22,871 | (2,121) | (228) | 27,905 | 5,536 | 59,922 |
Net income | 0 | 0 | 0 | 0 | 3,254 | 0 | 3,254 |
Other comprehensive income (loss) | 0 | 0 | 0 | 0 | 0 | 4,798 | 4,798 |
Cash dividends - per share | 0 | 0 | 0 | 0 | (1,680) | 0 | (1,680) |
Shares purchased for deferred compensation plan | 0 | (92) | 92 | 0 | 0 | 0 | 0 |
Repurchase of common stock | 0 | 0 | (526) | 0 | 0 | 0 | (526) |
Expense related to share-based compensation plans | 0 | 73 | 0 | 0 | 0 | 0 | 73 |
Restricted stock activity | 7 | (7) | 0 | 0 | 0 | 0 | 0 |
Amortization of ESOP | 0 | 0 | 0 | 144 | 0 | 0 | 144 |
Ending Balance at Jun. 30, 2020 | 5,966 | 22,845 | (2,555) | (84) | 29,479 | 10,334 | 65,985 |
Beginning Balance at Mar. 31, 2020 | 5,969 | 22,797 | (2,510) | (149) | 28,644 | 8,197 | 62,948 |
Net income | 1,675 | 1,675 | |||||
Other comprehensive income (loss) | 2,137 | 2,137 | |||||
Cash dividends - per share | (840) | (840) | |||||
Shares purchased for deferred compensation plan | 45 | (45) | |||||
Restricted stock activity | (3) | 3 | |||||
Amortization of ESOP | 65 | 65 | |||||
Ending Balance at Jun. 30, 2020 | $ 5,966 | $ 22,845 | $ (2,555) | $ (84) | $ 29,479 | $ 10,334 | $ 65,985 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Consolidated Statements of Stockholders' Equity | ||||
Cash dividends, per share | $ 0.1425 | $ 0.135 | $ 0.285 | $ 0.2675 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Operating Activities | ||
Net income | $ 3,254 | $ 3,260 |
Items not requiring (providing) cash | ||
Accretion of premiums and discounts on securities, net | 218 | 142 |
Amortization of intangible asset | 75 | 75 |
Depreciation and amortization | 557 | 512 |
Expense related to share based compensation plans | 73 | 121 |
Expense related to ESOP | 143 | 136 |
Provision for loan losses | 1,971 | 210 |
Increase in value of bank-owned life insurance | (246) | 93 |
Gain on sale of loans | (46) | (13) |
Proceeds from sale of loans held for sale | 2,357 | 794 |
Originations of loans held for sale | (2,311) | (781) |
(Gain) loss on sale or write down of foreclosed assets | (2) | 5 |
Gain on sale of available-for-sale securities | (1,250) | 0 |
Deferred income taxes | 0 | (206) |
Amortization of debt instrument costs | 30 | 0 |
Net change in accrued interest receivable and other assets | (1,942) | (1,604) |
Net change in accrued expenses and other liabilities | (185) | 1,910 |
Net cash provided by operating activities | 2,696 | 4,654 |
Securities available for sale: | ||
Maturities, prepayments and calls | 6,178 | 6,250 |
Purchases | (21,351) | (32,174) |
Proceeds from sale of available-for-sale securities | 19,544 | 0 |
Net change in loans | (4,492) | (15,877) |
(Purchase) redemption of Federal Home Loan Bank Stock | (420) | 230 |
Purchases of premises and equipment | (1,847) | (836) |
Proceeds from sale of foreclosed and fixed assets | 123 | 86 |
Net cash used in investing activities | (2,265) | (42,321) |
Financing Activities | ||
Net change in deposits | 45,658 | 20,804 |
Net change in securities sold under repurchase agreements | 2,579 | (394) |
Net change in FHLB overnight borrowings | (39,800) | 0 |
Proceeds from issuance of subordinated debentures, net of origination fees | 0 | 19,396 |
Repayments of long-term borrowings | 0 | (105) |
Repurchase of common stock | (526) | (416) |
Cash dividends paid on common stock | (1,680) | (1,579) |
Net cash provided by financing activities | 6,231 | 37,706 |
Increase in Cash and Cash Equivalents | 6,662 | 39 |
Cash and Cash Equivalents, Beginning of Period | 14,985 | 25,253 |
Cash and Cash Equivalents, End of Period | 21,647 | 25,292 |
Supplemental Cash Flows Information | ||
Interest paid on deposits and borrowings | 1,990 | 3,691 |
Purchases of available-for-sale securities not settled | 0 | 7,187 |
Supplemental Disclosure of Non-Cash Investing and Financing Activities | ||
Transfers from loans to foreclosed assets held for sale | $ 0 | $ 30 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Summary of Significant Accounting Policies | Note 1: Summary of Significant Accounting Policies These interim financial statements are prepared without audit and reflect all adjustments which, in the opinion of management, are necessary to present fairly the financial position of United Bancorp, Inc. (“Company”) at June 30, 2020, and its results of operations and cash flows for the interim periods presented. All such adjustments are normal and recurring in nature. The accompanying condensed consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and, therefore, do not purport to contain all the necessary financial disclosures required by accounting principles generally accepted in the United States of America that might otherwise be necessary in the circumstances and should be read in conjunction with the Company’s consolidated financial statements and related notes for the year ended December 31, 2019 included in its Annual Report on Form 10-K. Reference is made to the accounting policies of the Company described in the Notes to the Consolidated Financial Statements contained in its Annual Report on Form 10-K. The results of operations for the three months and six months ended June 30, 2020, are not necessarily indicative of the results to be expected for the full year. The condensed consolidated balance sheet of the Company as of December 31, 2019 has been derived from the audited consolidated balance sheet of the Company as of that date. Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg and Tiltonsville, Ohio. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate and are not considered "sub prime" type loans. The targeted lending areas of our Bank operations encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company's branch locations. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for loan losses and fair values of financial instruments are particularly subject to change. Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1‑4 family first and junior lien mortgages to the net realizable value, less costs to sell, when the loan is 120 days past due; charge-off of unsecured open-end loans when the loan is 120 days past due; and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost- recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior five years. Management believes the five year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% - 35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,675 Less allocated earnings on non-vested restricted stock (35) Less allocated dividends on non-vested restricted stock (34) Net income allocated to common stockholders 1,606 5,466,035 Basic and diluted earnings per share $ 0.29 Three Months Ended June 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,646 Less allocated earnings on non-vested restricted stock (29) Less dividends on non-vested restricted stock (26) Net income allocated to common stockholders 1,591 5,520,259 Basic and diluted earnings per share $ 0.29 Six Months Ended June 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 3,254 Less allocated earnings on non-vested restricted stock (67) Less allocated dividends on non-vested restricted stock (69) Net income allocated to common stockholders 3,118 5,464,899 Basic and diluted earnings per share $ 0.57 Six Months Ended June 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 3,260 Less allocated earnings on non-vested restricted stock (57) Less dividends on non-vested restricted stock (49) Net income allocated to common stockholders 3,154 5,517,852 Basic and diluted earnings per share $ 0.57 Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2016. Recently Adopted Accounting Pronouncements On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). ” ASU 2016-02 is intended to improve financial reporting about leasing transactions. This ASU affects all companies and other organization that lease assets such as real estate, airplanes, and manufacturing equipment. Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) (b) Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. Right of use assets represents the Company’s right to use the underlying assets for their lease terms and lease liabilities represent the obligation to make lease payments. The Company adopted ASU 2016-02 January 1, 2019. The right of use asset and lease obligation recorded as of March 31, 2019 was approximately $126,000 and is reflected in other assets and interest payable and other liabilities, respectively on the balance sheet. The modified retrospective method was applied. Due to the immateriality of the impact, certain disclosures under ASU 842 have been omitted. Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016‑13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016‑13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016‑13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016‑13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. On October 16, 2019, FASB approved a final ASU delaying the effective date of ASU 2016-13 for small reporting companies to interim and annual periods beginning after December 15, 2022. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. The Company continues to run projections and review segmentation to ensure it is fully compliant with the amendments at adoption date. Additional work will be needed once additional guidance or clarification in the standard is given during the delay. For additional information on the allowance for loan losses, see Note 3. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2020 | |
Securities | |
Securities | Note 2: Securities The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2020: U.S. government agencies $ 32,000 $ 157 $ — $ 32,157 Subordinated notes 4,500 — (7) 4,493 State and municipal obligations 140,558 $ 14,312 — 154,870 Total debt securities $ 177,058 $ 14,469 $ (7) $ 191,520 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2019: U.S. government agencies $ 40,000 $ — $ (472) $ 39,528 Subordinated notes 4,500 36 (4) 4,532 State and municipal obligations 135,897 $ 8,993 (165) 144,725 Total debt securities $ 180,397 $ 9,029 $ (641) $ 188,785 Available-for-sale Amortized Fair Cost Value (In thousands) Within one year $ — $ — One to five years — — Five to ten year 36,500 36,650 Due after ten years 140,558 154,870 Totals $ 177,058 $ 191,520 The carrying value of securities pledged to secure public deposits and for other purpose, was $45.0 million and $46.8 million at June 30, 2020 and December 31, 2019, respectively. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. The total fair value of these investments at June 30, 2020 and December 31, 2019, was $1.9 million and $50.3 million, which represented approximately 1% and 27%, respectively, of the Company’s available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019: June 30, 2020 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US. government agencies $ — $ — $ — $ — $ — $ — Subordinated notes 1,951 $ (7) $ — $ — $ 1,951 $ (7) State and municipal obligations — $ — $ — $ — $ — $ — Total temporarily impaired securities $ 1,951 $ (7) $ — $ — $ 1,951 $ (7) December 31, 2019 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US government agencies $ 39,528 $ (472) $ — $ — $ 39,528 $ (472) Subordinated notes 996 $ (4) $ — $ — $ 996 $ (4) State and municipal obligations $ 9,831 $ (165) $ — $ — $ 9,831 $ (165) Total temporarily impaired securities $ 50,355 $ (641) $ — $ — $ 50,355 $ (641) The unrealized losses on the Company’s investments in Subordinated notes were caused primarily by interest rate changes. The contractual terms of those investments do not permit the issuer to settle the securities at a price less than the amortized cost bases of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2020 and December 31, 2019. During the six months ended June 31, 2020 the Company sold $18.5 million of State and Municipal securities for a total gain of approximately $1,181,000 and the Company also sold $8.0 million of US Government Agency bonds for a total gain of approximately $69,000. There were no sales of investment securities for the three and six months ended June 30, 2019. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2020 | |
Loans and Allowance for Loan Losses | |
Loans and Allowance for Loan Losses | Note 3: Loans and Allowance for Loan Losses Categories of loans include: June 30, December 31, 2020 2019 (In thousands) Commercial loans $ 104,653 $ 99,995 Commercial real estate 248,541 254,651 Residential real estate 83,646 77,205 Installment loans 9,061 9,697 Total gross loans 445,901 441,548 Less allowance for loan losses (4,015) (2,231) Total loans $ 441,886 $ 439,317 The risk characteristics of each loan portfolio segment are as follows: Commercial Commercial loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus nonowner-occupied loans. Residential and Installment Residential and installment loans consist of two segments - residential mortgage loans and personal loans. For residential mortgage loans that are secured by 1-4 family residences and are generally owner-occupied, the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. Home equity loans are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some installment personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that the loans are of smaller individual amounts and spread over a large number of borrowers. Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2020 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance, April 1, 2020 $ 1,055 $ 781 $ 567 $ 305 $ 2,708 Provision charged to expense 1,279 67 38 24 1,408 Losses charged off — (97) (6) (29) (132) Recoveries 10 — 1 20 31 Balance, June 30, 2020 $ 2,344 $ 751 $ 600 $ 320 $ 4,015 Balance, January 1, 2020 $ 568 $ 792 $ 572 $ 299 $ 2,231 Provision charged to expense 1,808 86 39 38 1,971 Losses charged off (42) (127) (12) (60) (241) Recoveries 10 — 1 43 54 Balance, June 30,2020 $ 2,344 $ 751 $ 600 $ 320 $ 4,015 Allocation: Ending balance: individually evaluated for impairment $ 7 $ — $ — $ — $ 7 Ending balance: collectively evaluated for impairment $ 2,337 $ 751 $ 600 $ 320 $ 4,008 Loans: Ending balance: individually evaluated for impairment $ 82 $ 587 $ 493 $ 139 $ 1,301 Ending balance: collectively evaluated for impairment $ 104,571 $ 247,954 $ 83,153 $ 8,922 $ 444,600 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2019 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance,April 1, 2019 $ 393 $ 622 $ 727 $ 341 $ 2,083 Provision charged to expense (131) 177 51 23 120 Losses charged off — — (40) (41) (81) Recoveries — — 9 11 20 Balance, June 30, 2019 $ 262 $ 799 $ 747 $ 334 $ 2,142 Balance, January 1, 2019 $ 389 $ 672 $ 519 $ 463 $ 2,043 Provision charged to expense (110) 127 258 (65) 210 Losses charged off (18) — (40) (82) (140) Recoveries 1 — 10 18 29 Balance, June 30,2019 $ 262 $ 799 $ 747 $ 334 $ 2,142 Allocation: Ending balance: individually evaluated for impairment $ 28 $ 80 $ 69 $ — $ 177 Ending balance: collectively evaluated for impairment $ 234 $ 719 $ 678 $ 334 $ 1,965 Loans: Ending balance: individually evaluated for impairment $ 1,349 $ 774 $ 431 $ — $ 2,554 Ending balance: collectively evaluated for impairment $ 101,828 $ 234,831 $ 75,814 $ 10,406 $ 422,879 The following tables show the portfolio quality indicators. June 30, 2020 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 104,566 $ 244,765 $ 83,066 $ 8,922 $ 441,319 Special Mention — 2,958 — — 2,958 Substandard 87 818 580 139 1,624 Doubtful — — — — — $ 104,653 $ 248,541 $ 83,646 $ 9,061 $ 445,901 December 31, 2019 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 99,924 $ 249,563 $ 76,611 $ 9,697 $ 435,795 Special Mention — 4,016 — — 4,016 Substandard 71 1,072 594 — 1,737 Doubtful — — — — — $ 99,995 $ 254,651 $ 77,205 $ 9,697 $ 441,548 To facilitate the monitoring of credit quality within the loan portfolio, and for purposes of analyzing historical loss rates used in the determination of the ALLL, the Company utilizes the following categories of credit grades: pass, special mention, substandard, and doubtful. The four categories, which are derived from standard regulatory rating definitions, are assigned upon initial approval of credit to borrowers and updated periodically thereafter. Pass ratings, which are assigned to those borrowers that do not have identified potential or well defined weaknesses and for which there is a high likelihood of orderly repayment, are updated periodically based on the size and credit characteristics of the borrower. All other categories are updated on at least a quarterly basis. The Company assigns a special mention rating to loans that have potential weaknesses that deserve management’s close attention. If left uncorrected, these potential weaknesses may, at some future date, result in the deterioration of the repayment prospects for the loan or the Company’s credit position. The Company assigns a substandard rating to loans that are inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged. Substandard loans have well defined weaknesses or weaknesses that could jeopardize the orderly repayment of the debt. Loans and leases in this grade also are characterized by the distinct possibility that the Company will sustain some loss if the deficiencies noted are not addressed and corrected. The Company assigns a doubtful rating to loans that have all the attributes of a substandard rating with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The possibility of loss is extremely high, but because of certain important and reasonable specific pending factors that may work to the advantage of and strengthen the credit quality of the loan or lease, its classification as an estimated loss is deferred until its more exact status may be determined. Pending factors may include a proposed merger or acquisition, liquidation proceeding, capital injection, perfecting liens on additional collateral or refinancing plans. The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the current and past year to date periods presented. Loan Portfolio Aging Analysis As of June 30, 2020 30-59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ 13 $ — $ — $ 43 $ 56 $ 104,597 $ 104,653 Commercial real estate — — — 556 556 247,985 248,541 Residential 133 229 — 980 1,342 82,304 83,646 Installment — — — — — 9,061 9,061 Total $ 146 $ 229 $ — $ 1,579 $ 1,954 $ 442,947 $ 445,901 Loan Portfolio Aging Analysis As of December 31, 2019 30‑59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ 129 $ 132 $ –– $ 30 $ 291 $ 99,704 $ 99,995 Commercial real estate –– 214 197 348 759 253,892 254,651 Residential 448 --- 29 1,074 1,551 75,654 77,205 Installment 58 1 –– --- 59 9,638 9,697 Total $ 635 $ 347 $ 226 $ 1,452 $ 2,660 $ 438,888 $ 441,548 A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310‑10‑35‑16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. Impaired Loans For the three months ended For the six months ended As of June 30, 2020 June 30, 2020 June 30, 2020 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 60 $ 60 $ — $ 66 $ — $ 66 $ 6 Commercial real estate 587 587 — 588 5 588 5 Residential 493 493 — 591 12 591 14 Installment 139 139 — 151 4 151 4 1,279 1,279 — 1,396 21 1,396 29 Loans with a specific valuation allowance: Commercial 22 22 7 24 — 24 1 Commercial real estate — — — — — — — Residential — — — — — — — Installment –– –– –– –– –– — — 22 22 7 24 — 24 1 Total: Commercial $ 82 $ 82 $ 7 $ 90 $ — $ 90 $ 7 Commercial real estate $ 587 $ 587 $ — $ 588 $ 5 $ 588 $ 5 Residential $ 493 $ 493 $ — $ 591 $ 12 $ 591 $ 14 Installment $ 139 $ 139 $ — $ 151 $ 4 $ 151 $ 4 Impaired Loans For the three months ended For the six months ended As of December 31, 2019 June 30, 2019 June 30, 2019 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 71 $ 71 $ — $ 466 $ 4 $ 465 $ 4 Commercial real estate 371 371 — 387 5 373 6 Residential 594 594 — 248 3 249 7 Installment — — — — — — — 1,036 1,036 — 1,101 12 1,087 17 Loans with a specific valuation allowance: Commercial — — — 885 11 882 11 Commercial real estate — — — 411 — 409 — Residential — — — 191 — 191 — Installment — — — — — — — — — — 1,487 11 1,482 11 Total: Commercial $ 71 $ 71 $ — $ 1,351 $ 15 $ 1,347 $ 15 Commercial real estate $ 371 $ 371 $ — $ 798 $ 5 $ 782 $ 6 Residential $ 594 $ 594 $ — $ 439 $ 3 $ 440 $ 7 Installment $ — $ — $ — $ — $ — $ — $ — Interest income recognized on a cash basis was not materiality different than interest income recognized. For the TDRs noted in the tables below, the Company extended the maturity dates and granted interest rate concessions as part of each of those loan restructurings. The loans included in the tables are considered impaired and specific loss calculations are performed on the individual loans. In conjunction with the restructuring there were no amounts charged-off. Three Months ended June 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 1 $ 23 $ 23 Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 23 $ — $ 23 Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 3 $ 106 $ 106 Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 106 $ — $ 106 Commercial real estate — — — — Residential — — — — Consumer — — — — Three Months ended June 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2019 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Recorded Recorded Number of Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2019 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — During the six months ended June 30, 2020 and 2019 troubled debt restructurings did not have an impact on the allowance for loan losses. At June 30, 2020 and 2019 and for three and six month periods then ended, there were no defaults of any troubled debt restructurings that were modified in the last 12 months. The Company generally considers TDR’s that become 90 days or more past due under the modified terms as subsequently defaulted. |
Benefit Plans
Benefit Plans | 6 Months Ended |
Jun. 30, 2020 | |
Benefit Plans | |
Benefit Plans | Note 4: Benefit Plans Pension expense includes the following: Three months ended Six months ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Service cost $ 98 $ 75 $ 196 $ 150 Interest cost 59 55 118 110 Expected return on assets (117) (102) (234) (204) Amortization of prior service cost and net loss 13 1 26 2 Pension expense $ 53 $ 29 $ 106 $ 58 |
Off-balance-sheet Activities
Off-balance-sheet Activities | 6 Months Ended |
Jun. 30, 2020 | |
Off-balance-sheet Activities | |
Off-balance-sheet Activities | Note 5: Off-balance-sheet Activities Some financial instruments, such as loan commitments, credit lines, letters of credit and overdraft protection, are issued to meet customer financing needs. These are agreements to provide credit or to support the credit of others, as long as conditions established in the contracts are met, and usually have expiration dates. Commitments may expire without being used. Off-balance-sheet risk to credit loss exists up to the face amount of these instruments, although material losses are not anticipated. The same credit policies are used to make such commitments as are used for loans, including obtaining collateral at exercise of the commitment. A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: June 30, December 31, 2020 2019 (In thousands) Commercial loans unused lines of credit $ 39,017 $ 40,538 Commitment to originate loans 48,078 38,722 Consumer open end lines of credit 51,373 38,575 Standby lines of credit 46 46 |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income | |
Accumulated Other Comprehensive Income | Note 6: Accumulated Other Comprehensive Income The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: June 30, December 31, 2020 2019 (In thousands) Net unrealized gain on securities available-for-sale $ 14,462 $ 8,389 Net unrealized loss for unfunded status of defined benefit plan liability (1,381) (1,381) 13,081 7,008 Tax effect (2,747) 1,472 Net-of-tax amount $ 10,334 $ 5,536 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Fair Value Measurements | Note 7: Fair Value Measurements The Company defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. The Company also utilizes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Quoted prices in active markets for identical assets or liabilities that the entity can access at the measurement date Level 2 Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities Level 3 Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities Following is a description of the valuation methodologies used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such instruments pursuant to the valuation hierarchy. Available-for-sale Securities Where quoted market prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. If quoted market prices are not available, then fair values are estimated by using quoted prices of securities with similar characteristics or independent asset pricing services and pricing models, the inputs of which are market-based or independently sourced market parameters, including, but not limited to, yield curves, interest rates, volatilities, prepayments, defaults, cumulative loss projections and cash flows. Such securities are classified in Level 2 of the valuation hierarchy. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) June 30, 2020 U.S. government agencies $ 32,157 $ — $ 32,157 $ — Subordinated Notes $ 4,493 $ — $ 4,493 $ — State and municipal obligations $ 154,870 $ — $ 154,870 $ — December 31, 2019 U.S. government agencies $ 39,528 $ — $ 39,528 $ — Subordinated Notes $ 4,532 $ — $ 4,532 $ — State and municipal obligations $ 144,725 $ — $ 144,725 $ — Following is a description of the valuation methodologies used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. For assets classified within Level 3 of the fair value hierarchy, the process used to develop the reported fair value is described below. Impaired Loans (Collateral Dependent) Collateral dependent impaired loans consisted primarily of loans secured by nonresidential real estate. Management has determined fair value measurements on impaired loans primarily through evaluations of appraisals performed. Due to the nature of the valuation inputs, impaired loans are classified within Level 3 of the hierarchy. The Company considers the appraisal or evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals of the collateral underlying collateral-dependent loans are obtained when the loan is determined to be collateral-dependent and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender. Appraisers are selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated cost to sell if repayment or satisfaction of the loan is dependent on the sale of the collateral. These discounts and estimates are developed by the Company’s Chief Lender by comparison to historical results. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value (based on current appraised value) at the date of foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Management has determined fair value measurements on other real estate owned primarily through evaluations of appraisals performed, and current and past offers. Due to the nature of the valuation inputs, foreclosed assets held for sale are classified within Level 3 of the hierarchy. Appraisals of foreclosed assets held for sale are obtained when the real estate is acquired and subsequently as deemed necessary by the Company’s Chief Lender. Appraisals are reviewed for accuracy and consistency by the Company’s Chief Lender and are selected from the list of approved appraisers maintained by management. The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2020 Collateral dependent impaired loans $ 15 $ — $ — $ 15 Foreclosed assets held for sale — — — — December 31, 2019 Collateral dependent impaired loans $ — $ — $ — $ — Foreclosed assets held for sale — — — — Unobservable (Level 3) Inputs The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation 6/30/20 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 15 Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale $ — Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation 12/31/19 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ — Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale — Market comparable properties Marketability discount 10% – 35% There were no significant changes in the valuation techniques used during 2020 and 2019. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain of these instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Because no market exists for certain of these financial instruments and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2020 Financial assets Cash and cash equivalents $ 21,647 $ 21,647 $ — $ — Loans, net of allowance 441,886 — — 441,835 Federal Home Loan Bank stock 4,432 — 4,432 — Accrued interest receivable 4,247 — 4,247 — Financial liabilities Deposits 593,727 — 592,466 — Short term borrowings 9,464 — 9,464 — Federal Home Loan Bank Advances — — — — Subordinated debentures 23,574 — 22,851 — Interest payable 379 — 379 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019: Financial assets Cash and cash equivalents $ 14,985 $ 14,985 $ –– $ –– Loans, net of allowance 439,317 –– –– 437,688 Federal Home Loan Bank stock 4,012 –– 4,012 –– Accrued interest receivable 2,697 –– 2,697 –– Financial liabilities Deposits 548,069 –– 548,130 –– Short term borrowings 6,915 –– 6,915 –– Federal Home Loan Bank Advances 39,800 –– 39,800 –– Subordinated debentures 23,543 –– 22,857 –– Interest payable 213 –– 213 –– The following methods and assumptions were used to estimate the fair value of each class of financial instruments. Cash and Cash Equivalents, Accrued Interest Receivable and Federal Home Loan Bank Stock The carrying amounts approximate fair value. Loans Fair values of loans and leases are estimated on an exit price basis incorporating discounts for credit, liquidity and marketability factors. Deposits Deposits include demand deposits, savings accounts, NOW accounts and certain money market deposits. The carrying amount approximates fair value. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Interest Payable The carrying amount approximates fair value. Short-term Borrowings, Federal Home Loan Bank Advances and Subordinated Debentures Rates currently available to the Company for debt with similar terms and remaining maturities are used to estimate the fair value of existing debt. Commitments to Originate Loans, Letters of Credit and Lines of Credit The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and the committed rates. The fair values of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. Fair values of commitments were not material at June 30, 2020 and December 31, 2019. |
Repurchase Agreements
Repurchase Agreements | 6 Months Ended |
Jun. 30, 2020 | |
Repurchase Agreements | |
Repurchase Agreements | Note 8: Repurchase Agreements Securities sold under agreements to repurchase (“repurchase agreements”) with customers represent funds deposited by customers, generally on an overnight basis that are collateralized by investment securities owned by the Company. At June 30, 2020 and December 31, 2019, repurchase agreement borrowings totaled $9,494,000 and $6,915,000, respectively and are included in short-term borrowings on the consolidated condensed balance sheets. All repurchase agreements are subject to term and conditions of repurchase/security agreements between the Company and the customer and are accounted for as secured borrowings and reflected in short-term borrowings. The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than 90 June 30, 2020 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 9,494 $ — $ — $ — $ 9,494 Total $ 9,494 $ — $ — $ — $ 9,494 Overnight and Greater than 90 December 31, 2019 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 6,915 $ — $ — $ — $ 6,915 Total $ 6,915 $ — $ — $ — $ 6,915 These borrowings were collateralized with U.S . government and agency securities with a carrying value of $17.7 million at June 30, 2020 and $9.4 million at December 31, 2019. Declines in the fair value would require the Company to pledge additional securities. |
Core Deposits and Other Intangi
Core Deposits and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2020 | |
Core Deposits and Other Intangible Assets | |
Core Deposits and Other Intangible Assets | Note 9: Core Deposits and Other Intangible Assets The following table shows the changes in the carrying amount of goodwill for June 30, 2020 and December 31, 2019 (in thousands): June 30, December 31, 2020 2019 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682 Intangible assets in the consolidated balance sheets at June 30, 2020 and December 31, 2019 were as follows (in thousands): Six Months Ended June 30, 2020 Year Ended December 31, 2019 Gross Net Gross Net Intangible Accumulated Intangible Intangible Accumulated Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 256 785 1,041 181 860 The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of June 30, 2020 is as follows (in thousands): 2020 $ 90 2021 181 2022 181 2023 181 2024 152 At each reporting date between annual goodwill impairment tests, the Company considers potential indicators of impairment. Given the current economic uncertainty and volatility surrounding COVID-19, the Company assessed whether the events and circumstances resulted in it being more likely than not that the fair value of any reporting unit was less than its carrying value. Impairment indicators considered comprised the condition of the economy and banking industry; government intervention and regulatory updates; the impact of recent events to financial performance and cost factors of the reporting unit; performance of the Company’s stock and other relevant events. The Company further considered the amount by which fair value exceeded book value in the most recent quantitative analysis and sensitivities performed. At the conclusion of the assessment, the Company determined that as of June 30, 2020 it was more likely than not that the fair value exceeded its carrying values. The Company will continue to monitor developments regarding the COVID-19 pandemic and measures implemented in response to the pandemic, market capitalization, overall economic conditions and any other triggering events or circumstances that may indicate an impairment of goodwill in the future. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of United Bancorp, Inc. (“United” or “the Company”) and its wholly-owned subsidiary, Unified Bank of Martins Ferry, Ohio (“the Bank”). All intercompany transactions and balances have been eliminated in consolidation. |
Nature of Operations | Nature of Operations The Company’s revenues, operating income and assets are almost exclusively derived from banking. Accordingly, all of the Company’s banking operations are considered by management to be aggregated in one reportable operating segment. Customers are mainly located in Athens, Belmont, Carroll, Fairfield, Harrison, Jefferson and Tuscarawas Counties and the surrounding localities in northeastern, east-central and southeastern Ohio and include a wide range of individuals, businesses and other organizations. Unified Bank conducts its business through its main office in Martins Ferry, Ohio and branches in Amesville, Bridgeport, Colerain, Dellroy, Dillonvale, Dover, Glouster, Jewett, Lancaster Downtown, Lancaster East, Nelsonville, New Philadelphia, Powhatan, St. Clairsville East, St. Clairsville West, Sherrodsville, Strasburg and Tiltonsville, Ohio. The Bank also operates a Loan Production Office in Wheeling, West Virginia. The Company’s primary deposit products are checking, savings, and term certificate accounts, and its primary lending products are residential mortgage, commercial, and installment loans. Substantially all loans are secured by specific items of collateral including business assets, consumer assets and real estate and are not considered "sub prime" type loans. The targeted lending areas of our Bank operations encompass four separate metropolitan areas, minimizing the risk to changes in economic conditions in the communities housing the Company's branch locations. Commercial loans are expected to be repaid from cash flow from operations of businesses. Real estate loans are secured by both residential and commercial real estate. Net interest income is affected by the relative amount of interest-earning assets and interest-bearing liabilities and the interest received or paid on these balances. The level of interest rates paid or received by the Company can be significantly influenced by a number of environmental factors, such as governmental monetary and fiscal policies, that are outside of management’s control. |
Revenue Recognition | Revenue Recognition Accounting Standards Codification ("ASC") 606, Revenue from Contracts with Customers ("ASC 606"), establishes principles for reporting information about the nature, amount, timing and uncertainty of revenue and cash flows arising from the entity’s contracts to provide goods or services to customers. The core principle requires an entity to recognize revenue to depict the transfer of goods or services to customers in an amount that reflects the consideration that it expects to be entitled to receive in exchange for those goods or services recognized as performance obligations are satisfied. The majority of our revenue-generating transactions are not subject to ASC 606, including revenue generated from financial instruments, such as our loans, investment securities, as well as revenue related to our mortgage banking activities, as these activities are subject to other GAAP discussed elsewhere within our disclosures. Descriptions of our revenue-generating activities that are within the scope of ASC 606, which are presented in our income statements as components of non-interest income are as follows: Service charges on deposit accounts - these represent general service fees for monthly account maintenance and activity- or transaction-based fees and consist of transaction-based revenue, time-based revenue (service period), item-based revenue or some other individual attribute-based revenue. Revenue is recognized when our performance obligation is completed which is generally monthly for account maintenance services or when a transaction has been completed (such as a wire transfer). Payment for such performance obligations are generally received at the time the performance obligations are satisfied. |
Use of Estimates | Use of Estimates To prepare financial statements in conformity with accounting principles generally accepted in the United States of America, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided and future results could differ. The allowance for loan losses and fair values of financial instruments are particularly subject to change. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoffs are reported at their outstanding principal balances adjusted for unearned income, charge-offs, the allowance for loan losses, any unamortized deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan. For all loan classes, the accrual of interest is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. For all loan classes, the entire balance of the loan is considered past due if the minimum payment contractually required to be paid is not received by the contractual due date. For all loan classes, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. Management’s general practice is to proactively charge down loans individually evaluated for impairment to the fair value of the underlying collateral. Consistent with regulatory guidance, charge-offs on all loan segments are taken when specific loans, or portions thereof, are considered uncollectible. The Company’s policy is to promptly charge these loans off in the period the uncollectible loss is reasonably determined. For all loan portfolio segments except residential and consumer loans, the Company promptly charges-off loans, or portions thereof, when available information confirms that specific loans are uncollectible based on information that includes, but is not limited to, (1) the deteriorating financial condition of the borrower, (2) declining collateral values, and/or (3) legal action, including bankruptcy, that impairs the borrower’s ability to adequately meet its obligations. For impaired loans that are considered to be solely collateral dependent, a partial charge-off is recorded when a loss has been confirmed by an updated appraisal or other appropriate valuation of the collateral. The Company charges-off residential and consumer loans when the Company reasonably determines the amount of the loss. The Company adheres to timeframes established by applicable regulatory guidance which provides for the charge-down of 1‑4 family first and junior lien mortgages to the net realizable value, less costs to sell, when the loan is 120 days past due; charge-off of unsecured open-end loans when the loan is 120 days past due; and charge down to the net realizable value when other secured loans are 120 days past due. Loans at these respective delinquency thresholds for which the Company can clearly document that the loan is both well-secured and in the process of collection, such that collection will occur regardless of delinquency status, need not be charged off. For all classes, all interest accrued but not collected for loans that are placed on nonaccrual or charged off are reversed against interest income. The interest on these loans is accounted for on the cash-basis or cost- recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Nonaccrual loans are returned to accrual status when, in the opinion of management, the financial position of the borrower indicates there is no longer any reasonable doubt as to the timely collection of interest or principal. The Company requires a period of satisfactory performance of not less than six months before returning a nonaccrual loan to accrual status. When cash payments are received on impaired loans in each loan class, the Company records the payment as interest income unless collection of the remaining recorded principal amount is doubtful, at which time payments are used to reduce the principal balance of the loan. Troubled debt restructured loans recognize interest income on an accrual basis at the renegotiated rate if the loan is in compliance with the modified terms, no principal reduction has been granted and the loan has demonstrated the ability to perform in accordance with the renegotiated terms for a period of at least six months. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-impaired loans and is based on historical charge-off experience by segment. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the prior five years. Management believes the five year historical loss experience methodology is appropriate in the current economic environment. Other adjustments (qualitative/environmental considerations) for each segment may be added to the allowance for each loan segment after an assessment of internal or external influences on credit quality that are not fully reflected in the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due based on the loan’s current payment status and the borrower’s financial condition including available sources of cash flows. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for non-homogenous type loans such as commercial, non-owner residential and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. For impaired loans where the Company utilizes the discounted cash flows to determine the level of impairment, the Company includes the entire change in the present value of cash flows as bad debt expense. The fair values of collateral dependent impaired loans are based on independent appraisals of the collateral. In general, the Company acquires an updated appraisal upon identification of impairment and annually thereafter for commercial, commercial real estate and multi-family loans. If the most recent appraisal is over a year old, and a new appraisal is not performed, due to lack of comparable values or other reasons, the existing appraisal is utilized and discounted generally 10% - 35% based on the age of the appraisal, condition of the subject property, and overall economic conditions. After determining the collateral value as described, the fair value is calculated based on the determined collateral value less selling expenses. The potential for outdated appraisal values is considered in our determination of the allowance for loan losses through our analysis of various trends and conditions including the local economy, trends in charge-offs and delinquencies, etc. and the related qualitative adjustments assigned by the Company. Segments of loans with similar risk characteristics are collectively evaluated for impairment based on the segment’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, the Company does not separately identify individual consumer and residential loans for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. In the course of working with borrowers, the Company may choose to restructure the contractual terms of certain loans. In this scenario, the Company attempts to work-out an alternative payment schedule with the borrower in order to optimize collectability of the loan. Any loans that are modified are reviewed by the Company to identify if a troubled debt restructuring (“TDR”) has occurred, which is when, for economic or legal reasons related to a borrower’s financial difficulties, the Company grants a concession to the borrower that it would not otherwise consider. Terms may be modified to fit the ability of the borrower to repay in line with its current financial status and the restructuring of the loan may include the transfer of assets from the borrower to satisfy the debt, a modification of loan terms, or a combination of the two. If such efforts by the Company do not result in a satisfactory arrangement, the loan is referred to legal counsel, at which time foreclosure proceedings are initiated. At any time prior to a sale of the property at foreclosure, the Company may terminate foreclosure proceedings if the borrower is able to work-out a satisfactory payment plan. It is the Company’s policy to have any restructured loans which are on nonaccrual status prior to being restructured remain on nonaccrual status until six months of satisfactory borrower performance at which time management would consider its return to accrual status. If a loan was accruing at the time of restructuring, the Company reviews the loan to determine if it is appropriate to continue the accrual of interest on the restructured loan. With regard to determination of the amount of the allowance for credit losses, trouble debt restructured loans are considered to be impaired. As a result, the determination of the amount of impaired loans for each portfolio segment within troubled debt restructurings is the same as detailed previously. |
Earnings Per Share | Earnings Per Share Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. Potential common shares that may be issued by the Company relate to outstanding stock options and restricted stock awards and are determined using the treasury stock method. Treasury stock shares, deferred compensation shares and unearned ESOP shares are not deemed outstanding for earnings per share calculations. Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,675 Less allocated earnings on non-vested restricted stock (35) Less allocated dividends on non-vested restricted stock (34) Net income allocated to common stockholders 1,606 5,466,035 Basic and diluted earnings per share $ 0.29 Three Months Ended June 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,646 Less allocated earnings on non-vested restricted stock (29) Less dividends on non-vested restricted stock (26) Net income allocated to common stockholders 1,591 5,520,259 Basic and diluted earnings per share $ 0.29 Six Months Ended June 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 3,254 Less allocated earnings on non-vested restricted stock (67) Less allocated dividends on non-vested restricted stock (69) Net income allocated to common stockholders 3,118 5,464,899 Basic and diluted earnings per share $ 0.57 Six Months Ended June 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 3,260 Less allocated earnings on non-vested restricted stock (57) Less dividends on non-vested restricted stock (49) Net income allocated to common stockholders 3,154 5,517,852 Basic and diluted earnings per share $ 0.57 |
Income Taxes | Income Taxes The Company is subject to income taxes in the U.S. federal jurisdiction, as well as various state jurisdictions. Tax regulations within each jurisdiction are subject to the interpretation of the related tax laws and regulations and require significant judgment to apply. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for the years before 2016. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements On February 25, 2016, the FASB issued ASU 2016-02 “ Leases (Topic 842). ” ASU 2016-02 is intended to improve financial reporting about leasing transactions. This ASU affects all companies and other organization that lease assets such as real estate, airplanes, and manufacturing equipment. Under the current accounting model, an organization applies a classification test to determine the accounting for the lease arrangement: (a) (b) Under the new guidance, a lessee will be required to recognize assets and liabilities for all leases with lease terms of more than 12 months. Consistent with Generally Accepted Accounting Principles (GAAP), the recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee primarily will depend on its classification as a finance or operating lease. However, unlike current GAAP—which requires only capital leases to be recognized on the balance sheet—the new ASU will require both types of leases to be recognized on the balance sheet. Right of use assets represents the Company’s right to use the underlying assets for their lease terms and lease liabilities represent the obligation to make lease payments. The Company adopted ASU 2016-02 January 1, 2019. The right of use asset and lease obligation recorded as of March 31, 2019 was approximately $126,000 and is reflected in other assets and interest payable and other liabilities, respectively on the balance sheet. The modified retrospective method was applied. Due to the immateriality of the impact, certain disclosures under ASU 842 have been omitted. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016‑13, “Financial Instruments-Credit Losses (Topic 326) - Measurement of Credit Losses on Financial Instruments.” The provisions of ASU 2016‑13 were issued to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments that are not accounted for at fair value through net income, including loans held for investment, held-to-maturity debt securities, trade and other receivables, net investment in leases and other commitments to extend credit held by a reporting entity at each reporting date. ASU 2016‑13 requires that financial assets measured at amortized cost be presented at the net amount expected to be collected, through an allowance for credit losses that is deducted from the amortized cost basis. The amendments in ASU 2016‑13 eliminate the probable incurred loss recognition in current GAAP and reflect an entity’s current estimate of all expected credit losses. The measurement of expected credit losses is based upon historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the financial assets. For purchased financial assets with a more-than-insignificant amount of credit deterioration since origination (“PCD assets”) that are measured at amortized cost, the initial allowance for credit losses is added to the purchase price rather than being reported as a credit loss expense. Subsequent changes in the allowance for credit losses on PCD assets are recognized through the statement of income as a credit loss expense. Credit losses relating to available-for-sale debt securities will be recorded through an allowance for credit losses rather than as a direct write-down to the security. On October 16, 2019, FASB approved a final ASU delaying the effective date of ASU 2016-13 for small reporting companies to interim and annual periods beginning after December 15, 2022. The Company is currently evaluating the impact of these amendments to the Company’s financial position and results of operations and currently does not know or cannot reasonably quantify the impact of the adoption of the amendments as a result of the complexity and extensive changes from the amendments. The Allowance for Loan Losses (ALL) estimate is material to the Company and given the change from an incurred loss model to a methodology that considers the credit loss over the life of the loan, there is the potential for an increase in the ALL at adoption date. The Company is anticipating a significant change in the processes and procedures to calculate the ALL, including changes in assumptions and estimates to consider expected credit losses over the life of the loan versus the current accounting practice that utilizes the incurred loss model. In addition, the current accounting policy and procedures for the other-than-temporary impairment on available-for-sale securities will be replaced with an allowance approach. The Company continues to run projections and review segmentation to ensure it is fully compliant with the amendments at adoption date. Additional work will be needed once additional guidance or clarification in the standard is given during the delay. For additional information on the allowance for loan losses, see Note 3. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Summary of Significant Accounting Policies | |
Schedule of Earnings Per Share | Earnings per share (EPS) were computed as follows: Three Months Ended June 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,675 Less allocated earnings on non-vested restricted stock (35) Less allocated dividends on non-vested restricted stock (34) Net income allocated to common stockholders 1,606 5,466,035 Basic and diluted earnings per share $ 0.29 Three Months Ended June 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 1,646 Less allocated earnings on non-vested restricted stock (29) Less dividends on non-vested restricted stock (26) Net income allocated to common stockholders 1,591 5,520,259 Basic and diluted earnings per share $ 0.29 Six Months Ended June 30, 2020 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 3,254 Less allocated earnings on non-vested restricted stock (67) Less allocated dividends on non-vested restricted stock (69) Net income allocated to common stockholders 3,118 5,464,899 Basic and diluted earnings per share $ 0.57 Six Months Ended June 30, 2019 Weighted- Per Net Average Share Income Shares Amount (In thousands) Net income $ 3,260 Less allocated earnings on non-vested restricted stock (57) Less dividends on non-vested restricted stock (49) Net income allocated to common stockholders 3,154 5,517,852 Basic and diluted earnings per share $ 0.57 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Securities | |
Schedule of Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities | The amortized cost and approximate fair values, together with gross unrealized gains and losses of securities are as follows: Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: June 30, 2020: U.S. government agencies $ 32,000 $ 157 $ — $ 32,157 Subordinated notes 4,500 — (7) 4,493 State and municipal obligations 140,558 $ 14,312 — 154,870 Total debt securities $ 177,058 $ 14,469 $ (7) $ 191,520 Gross Gross Unrealized Unrealized Amortized Cost Gains Losses Fair Value (In thousands) Available-for-sale Securities: December 31, 2019: U.S. government agencies $ 40,000 $ — $ (472) $ 39,528 Subordinated notes 4,500 36 (4) 4,532 State and municipal obligations 135,897 $ 8,993 (165) 144,725 Total debt securities $ 180,397 $ 9,029 $ (641) $ 188,785 |
Schedule of Amortized Cost and Fair Value of available-for-Sale Securities by Contractual Maturity | Available-for-sale Amortized Fair Cost Value (In thousands) Within one year $ — $ — One to five years — — Five to ten year 36,500 36,650 Due after ten years 140,558 154,870 Totals $ 177,058 $ 191,520 |
Schedule of Investments' Gross Unrealized Losses and Fair Value, aggregated by investment category and length of time | The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2020 and December 31, 2019: June 30, 2020 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US. government agencies $ — $ — $ — $ — $ — $ — Subordinated notes 1,951 $ (7) $ — $ — $ 1,951 $ (7) State and municipal obligations — $ — $ — $ — $ — $ — Total temporarily impaired securities $ 1,951 $ (7) $ — $ — $ 1,951 $ (7) December 31, 2019 Less than 12 Months 12 Months or More Total Description of Unrealized Unrealized Unrealized Securities Fair Value Losses Fair Value Losses Fair Value Losses (In thousands) US government agencies $ 39,528 $ (472) $ — $ — $ 39,528 $ (472) Subordinated notes 996 $ (4) $ — $ — $ 996 $ (4) State and municipal obligations $ 9,831 $ (165) $ — $ — $ 9,831 $ (165) Total temporarily impaired securities $ 50,355 $ (641) $ — $ — $ 50,355 $ (641) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Loans and Allowance for Loan Losses | |
Schedule of Categories of Loans | Categories of loans include: June 30, December 31, 2020 2019 (In thousands) Commercial loans $ 104,653 $ 99,995 Commercial real estate 248,541 254,651 Residential real estate 83,646 77,205 Installment loans 9,061 9,697 Total gross loans 445,901 441,548 Less allowance for loan losses (4,015) (2,231) Total loans $ 441,886 $ 439,317 |
Schedule of Allowance for Loan Losses and Recorded Investment in Loans | Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2020 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance, April 1, 2020 $ 1,055 $ 781 $ 567 $ 305 $ 2,708 Provision charged to expense 1,279 67 38 24 1,408 Losses charged off — (97) (6) (29) (132) Recoveries 10 — 1 20 31 Balance, June 30, 2020 $ 2,344 $ 751 $ 600 $ 320 $ 4,015 Balance, January 1, 2020 $ 568 $ 792 $ 572 $ 299 $ 2,231 Provision charged to expense 1,808 86 39 38 1,971 Losses charged off (42) (127) (12) (60) (241) Recoveries 10 — 1 43 54 Balance, June 30,2020 $ 2,344 $ 751 $ 600 $ 320 $ 4,015 Allocation: Ending balance: individually evaluated for impairment $ 7 $ — $ — $ — $ 7 Ending balance: collectively evaluated for impairment $ 2,337 $ 751 $ 600 $ 320 $ 4,008 Loans: Ending balance: individually evaluated for impairment $ 82 $ 587 $ 493 $ 139 $ 1,301 Ending balance: collectively evaluated for impairment $ 104,571 $ 247,954 $ 83,153 $ 8,922 $ 444,600 Allowance for Loan Losses and Recorded Investment in Loans As of and for the three and six month periods ended June 30, 2019 Commercial Commercial Real Estate Residential Installment Total Allowance for loan losses: Balance,April 1, 2019 $ 393 $ 622 $ 727 $ 341 $ 2,083 Provision charged to expense (131) 177 51 23 120 Losses charged off — — (40) (41) (81) Recoveries — — 9 11 20 Balance, June 30, 2019 $ 262 $ 799 $ 747 $ 334 $ 2,142 Balance, January 1, 2019 $ 389 $ 672 $ 519 $ 463 $ 2,043 Provision charged to expense (110) 127 258 (65) 210 Losses charged off (18) — (40) (82) (140) Recoveries 1 — 10 18 29 Balance, June 30,2019 $ 262 $ 799 $ 747 $ 334 $ 2,142 Allocation: Ending balance: individually evaluated for impairment $ 28 $ 80 $ 69 $ — $ 177 Ending balance: collectively evaluated for impairment $ 234 $ 719 $ 678 $ 334 $ 1,965 Loans: Ending balance: individually evaluated for impairment $ 1,349 $ 774 $ 431 $ — $ 2,554 Ending balance: collectively evaluated for impairment $ 101,828 $ 234,831 $ 75,814 $ 10,406 $ 422,879 |
Schedule of Portfolio Quality Indicators | The following tables show the portfolio quality indicators. June 30, 2020 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 104,566 $ 244,765 $ 83,066 $ 8,922 $ 441,319 Special Mention — 2,958 — — 2,958 Substandard 87 818 580 139 1,624 Doubtful — — — — — $ 104,653 $ 248,541 $ 83,646 $ 9,061 $ 445,901 December 31, 2019 Commercial Loan Class Commercial Real Estate Residential Installment Total (In thousands) Pass Grade $ 99,924 $ 249,563 $ 76,611 $ 9,697 $ 435,795 Special Mention — 4,016 — — 4,016 Substandard 71 1,072 594 — 1,737 Doubtful — — — — — $ 99,995 $ 254,651 $ 77,205 $ 9,697 $ 441,548 |
Schedule of Loan Portfolio Aging Analysis | The Company evaluates the loan risk grading system definitions and allowance for loan losses methodology on an ongoing basis. No significant changes were made to either during the current and past year to date periods presented. Loan Portfolio Aging Analysis As of June 30, 2020 30-59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ 13 $ — $ — $ 43 $ 56 $ 104,597 $ 104,653 Commercial real estate — — — 556 556 247,985 248,541 Residential 133 229 — 980 1,342 82,304 83,646 Installment — — — — — 9,061 9,061 Total $ 146 $ 229 $ — $ 1,579 $ 1,954 $ 442,947 $ 445,901 Loan Portfolio Aging Analysis As of December 31, 2019 30‑59 Days 60‑89 Days Greater Past Due Past Due Than 90 Total Past and and Days and Non Due and Total Loans Accruing Accruing Accruing Accrual Non Accrual Current Receivable (In thousands) Commercial $ 129 $ 132 $ –– $ 30 $ 291 $ 99,704 $ 99,995 Commercial real estate –– 214 197 348 759 253,892 254,651 Residential 448 --- 29 1,074 1,551 75,654 77,205 Installment 58 1 –– --- 59 9,638 9,697 Total $ 635 $ 347 $ 226 $ 1,452 $ 2,660 $ 438,888 $ 441,548 |
Schedule of Impaired Loans | Impaired Loans For the three months ended For the six months ended As of June 30, 2020 June 30, 2020 June 30, 2020 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 60 $ 60 $ — $ 66 $ — $ 66 $ 6 Commercial real estate 587 587 — 588 5 588 5 Residential 493 493 — 591 12 591 14 Installment 139 139 — 151 4 151 4 1,279 1,279 — 1,396 21 1,396 29 Loans with a specific valuation allowance: Commercial 22 22 7 24 — 24 1 Commercial real estate — — — — — — — Residential — — — — — — — Installment –– –– –– –– –– — — 22 22 7 24 — 24 1 Total: Commercial $ 82 $ 82 $ 7 $ 90 $ — $ 90 $ 7 Commercial real estate $ 587 $ 587 $ — $ 588 $ 5 $ 588 $ 5 Residential $ 493 $ 493 $ — $ 591 $ 12 $ 591 $ 14 Installment $ 139 $ 139 $ — $ 151 $ 4 $ 151 $ 4 Impaired Loans For the three months ended For the six months ended As of December 31, 2019 June 30, 2019 June 30, 2019 Unpaid Average Interest Average Interest Recorded Principal Specific Investment in Income Investment in Income Balance Balance Allowance Impaired Loans Recognized Impaired Loans Recognized (In thousands) Loans without a specific valuation allowance: Commercial $ 71 $ 71 $ — $ 466 $ 4 $ 465 $ 4 Commercial real estate 371 371 — 387 5 373 6 Residential 594 594 — 248 3 249 7 Installment — — — — — — — 1,036 1,036 — 1,101 12 1,087 17 Loans with a specific valuation allowance: Commercial — — — 885 11 882 11 Commercial real estate — — — 411 — 409 — Residential — — — 191 — 191 — Installment — — — — — — — — — — 1,487 11 1,482 11 Total: Commercial $ 71 $ 71 $ — $ 1,351 $ 15 $ 1,347 $ 15 Commercial real estate $ 371 $ 371 $ — $ 798 $ 5 $ 782 $ 6 Residential $ 594 $ 594 $ — $ 439 $ 3 $ 440 $ 7 Installment $ — $ — $ — $ — $ — $ — $ — |
Schedule of Troubled Debt Restructurings on Financing Receivables | Three Months ended June 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 1 $ 23 $ 23 Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 23 $ — $ 23 Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2020 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial 3 $ 106 $ 106 Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2020 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ 106 $ — $ 106 Commercial real estate — — — — Residential — — — — Consumer — — — — Three Months ended June 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Number of Recorded Recorded Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Three Months Ended June 30, 2019 Interest Total Only Term Combination Modification ( In thousands ) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — Six Months ended June 30, 2019 Pre- Modification Post-Modification Outstanding Outstanding Recorded Recorded Number of Contracts Investment Investment (In thousands) Commercial — $ — $ — Commercial real estate — — — Residential — — — Installment — — — Six Months Ended June 30, 2019 Interest Total Only Term Combination Modification (In thousands) Commercial $ — $ — $ — $ — Commercial real estate — — — — Residential — — — — Consumer — — — — |
Benefit Plans (Tables)
Benefit Plans (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Benefit Plans | |
Schedule of pension expense | Pension expense includes the following: Three months ended Six months ended June 30, June 30, 2020 2019 2020 2019 (In thousands) Service cost $ 98 $ 75 $ 196 $ 150 Interest cost 59 55 118 110 Expected return on assets (117) (102) (234) (204) Amortization of prior service cost and net loss 13 1 26 2 Pension expense $ 53 $ 29 $ 106 $ 58 |
Off-balance-sheet Activities (T
Off-balance-sheet Activities (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Off-balance-sheet Activities | |
Summary of the Notional or Contractual Amounts of Financial Instruments with Off-Balance-Sheet Risk | A summary of the notional or contractual amounts of financial instruments with off-balance-sheet risk at the indicated dates is as follows: June 30, December 31, 2020 2019 (In thousands) Commercial loans unused lines of credit $ 39,017 $ 40,538 Commitment to originate loans 48,078 38,722 Consumer open end lines of credit 51,373 38,575 Standby lines of credit 46 46 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Accumulated Other Comprehensive Income | |
Schedule of Accumulated Other Comprehensive income, included in Stockholders Equity | The components of accumulated other comprehensive income, included in stockholders’ equity, are as follows: June 30, December 31, 2020 2019 (In thousands) Net unrealized gain on securities available-for-sale $ 14,462 $ 8,389 Net unrealized loss for unfunded status of defined benefit plan liability (1,381) (1,381) 13,081 7,008 Tax effect (2,747) 1,472 Net-of-tax amount $ 10,334 $ 5,536 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Fair Value Measurements | |
Schedule of Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019: Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Assets Inputs Inputs Fair Value (Level 1) (Level 2) (Level 3) June 30, 2020 U.S. government agencies $ 32,157 $ — $ 32,157 $ — Subordinated Notes $ 4,493 $ — $ 4,493 $ — State and municipal obligations $ 154,870 $ — $ 154,870 $ — December 31, 2019 U.S. government agencies $ 39,528 $ — $ 39,528 $ — Subordinated Notes $ 4,532 $ — $ 4,532 $ — State and municipal obligations $ 144,725 $ — $ 144,725 $ — |
Schedule of Fair Value Measurements of Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis | The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a nonrecurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2020 and December 31, 2019. Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Fair Assets Inputs Inputs Value (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2020 Collateral dependent impaired loans $ 15 $ — $ — $ 15 Foreclosed assets held for sale — — — — December 31, 2019 Collateral dependent impaired loans $ — $ — $ — $ — Foreclosed assets held for sale — — — — |
Schedule of quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements | The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. Fair Value at Valuation 6/30/20 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ 15 Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale $ — Market comparable properties Marketability discount 10% – 35% Fair Value at Valuation 12/31/19 Technique Unobservable Inputs Range (In thousands) Collateral-dependent impaired loans $ — Market comparable properties Marketability discount 10% – 25% Foreclosed assets held for sale — Market comparable properties Marketability discount 10% – 35% |
Schedule of Estimated Fair Values of Company's Financial Instruments | Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) June 30, 2020 Financial assets Cash and cash equivalents $ 21,647 $ 21,647 $ — $ — Loans, net of allowance 441,886 — — 441,835 Federal Home Loan Bank stock 4,432 — 4,432 — Accrued interest receivable 4,247 — 4,247 — Financial liabilities Deposits 593,727 — 592,466 — Short term borrowings 9,464 — 9,464 — Federal Home Loan Bank Advances — — — — Subordinated debentures 23,574 — 22,851 — Interest payable 379 — 379 — Fair Value Measurements Using Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Assets Inputs Inputs Amount (Level 1) (Level 2) (Level 3) (In thousands) December 31, 2019: Financial assets Cash and cash equivalents $ 14,985 $ 14,985 $ –– $ –– Loans, net of allowance 439,317 –– –– 437,688 Federal Home Loan Bank stock 4,012 –– 4,012 –– Accrued interest receivable 2,697 –– 2,697 –– Financial liabilities Deposits 548,069 –– 548,130 –– Short term borrowings 6,915 –– 6,915 –– Federal Home Loan Bank Advances 39,800 –– 39,800 –– Subordinated debentures 23,543 –– 22,857 –– Interest payable 213 –– 213 –– |
Repurchase Agreements (Tables)
Repurchase Agreements (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Repurchase Agreements | |
Schedule of Repurchase Agreements | The following table presents the Company’s repurchase agreements accounted for as secured borrowings: Remaining Contractual Maturity of the Agreement (In thousands) Overnight and Greater than 90 June 30, 2020 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 9,494 $ — $ — $ — $ 9,494 Total $ 9,494 $ — $ — $ — $ 9,494 Overnight and Greater than 90 December 31, 2019 Continuous Up to 30 Days 30‑90 Days Days Total Repurchase Agreements U.S. government agencies $ 6,915 $ — $ — $ — $ 6,915 Total $ 6,915 $ — $ — $ — $ 6,915 |
Core Deposits and Other Intan_2
Core Deposits and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Core Deposits and Other Intangible Assets | |
Summary of changes in the carrying amount of goodwill | The following table shows the changes in the carrying amount of goodwill for June 30, 2020 and December 31, 2019 (in thousands): June 30, December 31, 2020 2019 Balance beginning of year $ 682 $ 682 Additions from acquisition — — Balance, end of period $ 682 $ 682 |
Summary of intangible assets | Intangible assets in the consolidated balance sheets at June 30, 2020 and December 31, 2019 were as follows (in thousands): Six Months Ended June 30, 2020 Year Ended December 31, 2019 Gross Net Gross Net Intangible Accumulated Intangible Intangible Accumulated Intangible Assets Amortization Assets Assets Amortization Assets Core deposit intangibles $ 1,041 256 785 1,041 181 860 |
Summary of estimated aggregate future amortization expense for each of the next five years for intangible assets remaining | The estimated aggregate future amortization expense for each of the next five years for intangible assets remaining as of June 30, 2020 is as follows (in thousands): 2020 $ 90 2021 181 2022 181 2023 181 2024 152 |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Details) | Mar. 31, 2019USD ($) |
Summary of Significant Accounting Policies | |
Operating Lease, Right-of-Use Asset | $ 126,000 |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Basic and Diluted Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Basic and Diluted | ||||
Net income | $ 1,675 | $ 1,646 | $ 3,254 | $ 3,260 |
Less allocated earnings on non-vested restricted stock | (35) | (29) | (67) | (57) |
Less allocated dividends on non-vested restricted stock | (34) | (26) | (69) | (49) |
Net income allocated to common stockholders | $ 1,606 | $ 1,591 | $ 3,118 | $ 3,154 |
Weighted Average Number of Shares Outstanding, Basic and Diluted | 5,466,035 | 5,520,259 | 5,464,899 | 5,517,852 |
Basic and diluted earnings per share | $ 0.29 | $ 0.29 | $ 0.57 | $ 0.57 |
Securities - Schedule of Amorti
Securities - Schedule of Amortized Cost and Approximate Fair Values, Together with Gross Unrealized Gains and Losses of Securities (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 177,058 | $ 180,397 |
Available-for-sale Securities, Gross Unrealized Gains | 14,469 | 9,029 |
Available-for-sale Securities, Gross Unrealized Losses | (7) | (641) |
Available-for-sale securities, Fair Value | 191,520 | 188,785 |
U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 32,000 | 40,000 |
Available-for-sale Securities, Gross Unrealized Gains | 157 | 0 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | (472) |
Available-for-sale securities, Fair Value | 32,157 | 39,528 |
Subordinated notes | ||
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 4,500 | 4,500 |
Available-for-sale Securities, Gross Unrealized Gains | 0 | 36 |
Available-for-sale Securities, Gross Unrealized Losses | (7) | (4) |
Available-for-sale securities, Fair Value | 4,493 | 4,532 |
State and municipal obligations | ||
Gain (Loss) on Investments [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 140,558 | 135,897 |
Available-for-sale Securities, Gross Unrealized Gains | 14,312 | 8,993 |
Available-for-sale Securities, Gross Unrealized Losses | 0 | (165) |
Available-for-sale securities, Fair Value | $ 154,870 | $ 144,725 |
Securities - Schedule of Amor_2
Securities - Schedule of Amortized Cost and Fair Value of available-for-Sale Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Available-for-sale, Amortized Cost | ||
Within one year | $ 0 | |
One to five years | 0 | |
Five to ten year | 36,500 | |
Due after ten years | 140,558 | |
Totals | 177,058 | $ 180,397 |
Available-for-sale, Fair Value | ||
Within one year | 0 | |
One to five years | 0 | |
Five to ten year | 36,650 | |
Due after ten years | 154,870 | |
Totals | $ 191,520 | $ 188,785 |
Securities - Schedule of Invest
Securities - Schedule of Investments' Gross Unrealized Losses and Fair Value, aggregated by investment category and length of time (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | $ 1,951 | $ 50,355 |
Less than 12 Months, Unrealized Losses | (7) | (641) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 1,951 | 50,355 |
Total, Unrealized Losses | (7) | (641) |
U.S. government agencies | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 39,528 |
Less than 12 Months, Unrealized Losses | 0 | (472) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 39,528 |
Total, Unrealized Losses | 0 | (472) |
Subordinated notes | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | 1,951 | 996 |
Less than 12 Months, Unrealized Losses | (7) | (4) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 1,951 | 996 |
Total, Unrealized Losses | (7) | (4) |
State and municipal obligations | ||
Gain (Loss) on Investments [Line Items] | ||
Less than 12 Months, Fair Value | 0 | 9,831 |
Less than 12 Months, Unrealized Losses | 0 | (165) |
12 Months or More, Fair Value | 0 | 0 |
12 Months or More, Unrealized Losses | 0 | 0 |
Total, Fair Value | 0 | 9,831 |
Total, Unrealized Losses | $ 0 | $ (165) |
Securities - Additional Informa
Securities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Schedule Of Marketable Securities [Line Items] | ||||
Debt Securities, Available-for-sale, Restricted | $ 45,000,000 | $ 46,800,000 | ||
Fair Value of Investment in debt securities | $ 1,900,000 | $ 50,300,000 | ||
Percentage of fair value of investment in debt | 1.00% | 27.00% | ||
Proceeds from sale of available-for-sale securities | $ 19,544,000 | $ 0 | ||
U.S. government agencies | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Proceeds from sale of available-for-sale securities | $ 0 | 8,000,000 | $ 0 | |
Debt Securities, Available-for-sale, Realized Gain (Loss) | 69,000 | |||
State and municipal obligations | ||||
Schedule Of Marketable Securities [Line Items] | ||||
Proceeds from sale of available-for-sale securities | 18,500,000 | |||
Debt Securities, Available-for-sale, Realized Gain (Loss) | $ 1,181,000 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses - Schedule of Categories of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Mar. 31, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 |
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | $ 445,901 | $ 441,548 | ||||
Less allowance for loan losses | (4,015) | $ (2,708) | (2,231) | $ (2,142) | $ (2,083) | $ (2,043) |
Total loans | 441,886 | 439,317 | ||||
Commercial loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 104,653 | 99,995 | ||||
Less allowance for loan losses | (2,344) | (1,055) | (568) | (262) | (393) | (389) |
Commercial real estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 248,541 | 254,651 | ||||
Less allowance for loan losses | (751) | (781) | (792) | (799) | (622) | (672) |
Residential real estate | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | 83,646 | 77,205 | ||||
Less allowance for loan losses | (600) | $ (567) | (572) | $ (747) | $ (727) | $ (519) |
Installment loans | ||||||
Accounts Notes And Loans Receivable [Line Items] | ||||||
Total gross loans | $ 9,061 | $ 9,697 |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses - Schedule of Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Allowance for loan losses: | ||||
Beginning Balance | $ 2,708 | $ 2,083 | $ 2,231 | $ 2,043 |
Provision charged to expense | 1,408 | 120 | 1,971 | 210 |
Losses charged off | (132) | (81) | (241) | (140) |
Recoveries | 31 | 20 | 54 | 29 |
Ending Balance | 4,015 | 2,142 | 4,015 | 2,142 |
Allocation: | ||||
Ending balance: individually evaluated for impairment | 7 | 177 | 7 | 177 |
Ending balance: collectively evaluated for impairment | 4,008 | 1,965 | 4,008 | 1,965 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 1,301 | 2,554 | 1,301 | 2,554 |
Ending balance: collectively evaluated for impairment | 444,600 | 422,879 | 444,600 | 422,879 |
Commercial loans | ||||
Allowance for loan losses: | ||||
Beginning Balance | 1,055 | 393 | 568 | 389 |
Provision charged to expense | 1,279 | (131) | 1,808 | (110) |
Losses charged off | 0 | 0 | (42) | (18) |
Recoveries | 10 | 0 | 10 | 1 |
Ending Balance | 2,344 | 262 | 2,344 | 262 |
Allocation: | ||||
Ending balance: individually evaluated for impairment | 7 | 28 | 7 | 28 |
Ending balance: collectively evaluated for impairment | 2,337 | 234 | 2,337 | 234 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 82 | 1,349 | 82 | 1,349 |
Ending balance: collectively evaluated for impairment | 104,571 | 101,828 | 104,571 | 101,828 |
Commercial real estate | ||||
Allowance for loan losses: | ||||
Beginning Balance | 781 | 622 | 792 | 672 |
Provision charged to expense | 67 | 177 | 86 | 127 |
Losses charged off | (97) | 0 | (127) | 0 |
Recoveries | 0 | 0 | 0 | 0 |
Ending Balance | 751 | 799 | 751 | 799 |
Allocation: | ||||
Ending balance: individually evaluated for impairment | 0 | 80 | 0 | 80 |
Ending balance: collectively evaluated for impairment | 751 | 719 | 751 | 719 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 587 | 774 | 587 | 774 |
Ending balance: collectively evaluated for impairment | 247,954 | 234,831 | 247,954 | 234,831 |
Residential real estate | ||||
Allowance for loan losses: | ||||
Beginning Balance | 567 | 727 | 572 | 519 |
Provision charged to expense | 38 | 51 | 39 | 258 |
Losses charged off | (6) | (40) | (12) | (40) |
Recoveries | 1 | 9 | 1 | 10 |
Ending Balance | 600 | 747 | 600 | 747 |
Allocation: | ||||
Ending balance: individually evaluated for impairment | 0 | 69 | 0 | 69 |
Ending balance: collectively evaluated for impairment | 600 | 678 | 600 | 678 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 493 | 431 | 493 | 431 |
Ending balance: collectively evaluated for impairment | 83,153 | 75,814 | 83,153 | 75,814 |
Installment | ||||
Allowance for loan losses: | ||||
Beginning Balance | 305 | 341 | 299 | 463 |
Provision charged to expense | 24 | 23 | 38 | (65) |
Losses charged off | (29) | (41) | (60) | (82) |
Recoveries | 20 | 11 | 43 | 18 |
Ending Balance | 320 | 334 | 320 | 334 |
Allocation: | ||||
Ending balance: individually evaluated for impairment | 0 | 0 | 0 | 0 |
Ending balance: collectively evaluated for impairment | 320 | 334 | 320 | 334 |
Loans: | ||||
Ending balance: individually evaluated for impairment | 139 | 0 | 139 | 0 |
Ending balance: collectively evaluated for impairment | $ 8,922 | $ 10,406 | $ 8,922 | $ 10,406 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses - Schedule of Portfolio Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 445,901 | $ 441,548 |
Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 104,653 | 99,995 |
Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 248,541 | 254,651 |
Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 83,646 | 77,205 |
Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 9,061 | 9,697 |
Pass Grade | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 441,319 | 435,795 |
Pass Grade | Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 104,566 | 99,924 |
Pass Grade | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 244,765 | 249,563 |
Pass Grade | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 83,066 | 76,611 |
Pass Grade | Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 8,922 | 9,697 |
Special Mention | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,958 | 4,016 |
Special Mention | Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Special Mention | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 2,958 | 4,016 |
Special Mention | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Special Mention | Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Substandard | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 1,624 | 1,737 |
Substandard | Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 87 | 71 |
Substandard | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 818 | 1,072 |
Substandard | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 580 | 594 |
Substandard | Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 139 | 0 |
Doubtful | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Doubtful | Commercial loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Doubtful | Commercial real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Doubtful | Residential real estate | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | 0 | 0 |
Doubtful | Installment loans | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Total Loans Receivable | $ 0 | $ 0 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses - Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | $ 1,579 | $ 1,452 |
Total Past Due and Non Accrual | 1,954 | 2,660 |
Current | 442,947 | 438,888 |
Total gross loans | 445,901 | 441,548 |
Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 146 | 635 |
Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 229 | 347 |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 226 |
Commercial loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 43 | 30 |
Total Past Due and Non Accrual | 56 | 291 |
Current | 104,597 | 99,704 |
Total gross loans | 104,653 | 99,995 |
Commercial loans | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 13 | 129 |
Commercial loans | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 132 |
Commercial loans | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 0 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 556 | 348 |
Total Past Due and Non Accrual | 556 | 759 |
Current | 247,985 | 253,892 |
Total gross loans | 248,541 | 254,651 |
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 0 |
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 214 |
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 197 |
Residential real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 980 | 1,074 |
Total Past Due and Non Accrual | 1,342 | 1,551 |
Current | 82,304 | 75,654 |
Total gross loans | 83,646 | 77,205 |
Residential real estate | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 133 | 448 |
Residential real estate | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 229 | 0 |
Residential real estate | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 29 |
Installment | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non Accrual | 0 | 0 |
Total Past Due and Non Accrual | 0 | 59 |
Current | 9,061 | 9,638 |
Total gross loans | 9,061 | 9,697 |
Installment | Financing Receivables, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 58 |
Installment | Financing Receivables, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | 0 | 1 |
Installment | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total Past Due and Non Accrual | $ 0 | $ 0 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses - Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | $ 1,279 | $ 1,279 | $ 1,036 | ||
Recorded balance, loans with a specific valuation allowance | 22 | 22 | 0 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 1,279 | 1,279 | 1,036 | ||
Unpaid principal balance, loans with a specific valuation allowance | 22 | 22 | 0 | ||
Specific Allowance | 7 | 7 | 0 | ||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 1,396 | $ 1,101 | 1,396 | $ 1,087 | |
Average investment in impaired loans, loans with a specific valuation allowance | 24 | 1,487 | 24 | 1,482 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 21 | 12 | 29 | 17 | |
Interest income recognized, loans with a specific valuation allowance | 0 | 11 | 1 | 11 | |
Commercial loans | |||||
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | 60 | 60 | 71 | ||
Recorded balance, loans with a specific valuation allowance | 22 | 22 | 0 | ||
Recorded balance, total | 82 | 82 | 71 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 60 | 60 | 71 | ||
Unpaid principal balance, loans with a specific valuation allowance | 22 | 22 | 0 | ||
Unpaid principal balance, total | 82 | 82 | 71 | ||
Specific Allowance | 7 | 7 | 0 | ||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 66 | 466 | 66 | 465 | |
Average investment in impaired loans, loans with a specific valuation allowance | 24 | 885 | 24 | 882 | |
Average investment in impaired loans, total | 90 | 1,351 | 90 | 1,347 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 0 | 4 | 6 | 4 | |
Interest income recognized, loans with a specific valuation allowance | 0 | 11 | 1 | 11 | |
Interest income recognized, total | 0 | 15 | 7 | 15 | |
Commercial real estate | |||||
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | 587 | 587 | 371 | ||
Recorded balance, loans with a specific valuation allowance | 0 | 0 | 0 | ||
Recorded balance, total | 587 | 587 | 371 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 587 | 587 | 371 | ||
Unpaid principal balance, loans with a specific valuation allowance | 0 | 0 | 0 | ||
Unpaid principal balance, total | 587 | 587 | 371 | ||
Specific Allowance | 0 | ||||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 588 | 387 | 588 | 373 | |
Average investment in impaired loans, loans with a specific valuation allowance | 0 | 411 | 0 | 409 | |
Average investment in impaired loans, total | 588 | 798 | 588 | 782 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 5 | 5 | 5 | 6 | |
Interest income recognized, loans with a specific valuation allowance | 0 | 0 | 0 | 0 | |
Interest income recognized, total | 5 | 5 | 5 | 6 | |
Residential real estate | |||||
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | 493 | 493 | 594 | ||
Recorded balance, loans with a specific valuation allowance | 0 | 0 | 0 | ||
Recorded balance, total | 493 | 493 | 594 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 493 | 493 | 594 | ||
Unpaid principal balance, loans with a specific valuation allowance | 0 | 0 | 0 | ||
Unpaid principal balance, total | 493 | 493 | 594 | ||
Specific Allowance | 0 | ||||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 591 | 248 | 591 | 249 | |
Average investment in impaired loans, loans with a specific valuation allowance | 0 | 191 | 0 | 191 | |
Average investment in impaired loans, total | 591 | 439 | 591 | 440 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 12 | 3 | 14 | 7 | |
Interest income recognized, loans with a specific valuation allowance | 0 | 0 | 0 | 0 | |
Interest income recognized, total | 12 | 3 | 14 | 7 | |
Installment loans | |||||
Recorded Balance | |||||
Recorded balance, loans without a specific valuation allowance | 139 | 139 | 0 | ||
Recorded balance, loans with a specific valuation allowance | 0 | 0 | 0 | ||
Recorded balance, total | 139 | 139 | 0 | ||
Unpaid Principal Balance | |||||
Unpaid principal balance, loans without a specific valuation allowance | 139 | 139 | 0 | ||
Unpaid principal balance, loans with a specific valuation allowance | 0 | 0 | 0 | ||
Unpaid principal balance, total | 139 | 139 | 0 | ||
Specific Allowance | $ 0 | ||||
Average Investment in Impaired Loans | |||||
Average investment in impaired loans, loans without a specific valuation allowance | 151 | 0 | 151 | 0 | |
Average investment in impaired loans, loans with a specific valuation allowance | 0 | 0 | 0 | 0 | |
Average investment in impaired loans, total | 151 | 0 | 151 | 0 | |
Interest Income Recognized | |||||
Interest income recognized, loans without a specific valuation allowance | 4 | 0 | 4 | 0 | |
Interest income recognized, loans with a specific valuation allowance | 0 | 0 | 0 | 0 | |
Interest income recognized, total | $ 4 | $ 0 | $ 4 | $ 0 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses - Schedule of Troubled Debt Restructurings on Financing Receivables (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2020USD ($)contract | Jun. 30, 2019USD ($)contract | |
Commercial loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 1 | 0 | 3 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 23 | $ 0 | $ 106 | $ 0 |
Post-Modification Outstanding Recorded Investment | 23 | 0 | 106 | 0 |
Interest Only | 0 | 0 | 0 | 0 |
Term | 23 | 0 | 106 | 0 |
Combination | 0 | 0 | 0 | 0 |
Total Modification | $ 23 | $ 0 | $ 106 | $ 0 |
Commercial real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 |
Interest Only | 0 | 0 | 0 | 0 |
Term | 0 | 0 | 0 | 0 |
Combination | 0 | 0 | 0 | 0 |
Total Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Residential real estate | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 |
Interest Only | 0 | 0 | 0 | 0 |
Term | 0 | 0 | 0 | 0 |
Combination | 0 | 0 | 0 | 0 |
Total Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Installment loans | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of Contracts | contract | 0 | 0 | 0 | 0 |
Pre- Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
Post-Modification Outstanding Recorded Investment | 0 | 0 | 0 | 0 |
Consumer | ||||
Financing Receivable, Modifications [Line Items] | ||||
Interest Only | 0 | 0 | 0 | 0 |
Term | 0 | 0 | 0 | 0 |
Combination | 0 | 0 | 0 | 0 |
Total Modification | $ 0 | $ 0 | $ 0 | $ 0 |
Benefit Plans - (Details)
Benefit Plans - (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Components of net periodic benefit cost | ||||
Service cost | $ 98 | $ 75 | $ 196 | $ 150 |
Interest cost | 59 | 55 | 118 | 110 |
Expected return on assets | (117) | (102) | (234) | (204) |
Amortization of prior service cost and net loss | 13 | 1 | 26 | 2 |
Net periodic benefit cost | $ 53 | $ 29 | $ 106 | $ 58 |
Off-balance-sheet Activities (D
Off-balance-sheet Activities (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Commercial loans unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 39,017 | $ 40,538 |
Commitment to originate loans | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | 48,078 | 38,722 |
Consumer open end lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | 51,373 | 38,575 |
Standby lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Fair Value Disclosure, Off-balance Sheet Risks, Face Amount, Asset | $ 46 | $ 46 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Accumulated Other Comprehensive Income | ||
Net unrealized gain on securities available-for-sale | $ 14,462 | $ 8,389 |
Net unrealized loss for unfunded status of defined benefit plan liability | (1,381) | (1,381) |
Accumulated other comprehensive income, before taxes, total | 13,081 | 7,008 |
Tax effect | (2,747) | 1,472 |
Net-of-tax amount | $ 10,334 | $ 5,536 |
Fair Value Measurements - Asset
Fair Value Measurements - Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Recurring Basis (Details) - Fair Value, Measurements, Recurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | $ 32,157 | $ 39,528 |
Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 4,493 | 4,532 |
State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 154,870 | 144,725 |
Fair Value, Inputs, Level 1 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 1 | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 1 | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 2 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 32,157 | 39,528 |
Fair Value, Inputs, Level 2 | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 4,493 | 4,532 |
Fair Value, Inputs, Level 2 | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 154,870 | 144,725 |
Fair Value, Inputs, Level 3 | U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | Subordinated notes | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | 0 | 0 |
Fair Value, Inputs, Level 3 | State and municipal obligations | ||
Fair Value, Assets and Liabilities Measured on Recurring Basis [Line Items] | ||
Fair value of asset, recurring basis | $ 0 | $ 0 |
Fair Value Measurements - Ass_2
Fair Value Measurements - Assets Recognized in Consolidated Balance Sheets Measured at Fair Value on Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | $ 15 | $ 0 |
Foreclosed assets held for sale | 0 | 0 |
Fair Value, Inputs, Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 0 | 0 |
Foreclosed assets held for sale | 0 | 0 |
Fair Value, Inputs, Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Collateral dependent impaired loans | 15 | 0 |
Foreclosed assets held for sale | $ 0 | $ 0 |
Fair Value Measurements - Quant
Fair Value Measurements - Quantitative Information About Unobservable Inputs Used in Recurring and Nonrecurring Level 3 Fair Value Measurements (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Collateral-dependent impaired loans | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 15 | $ 0 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable inputs | Marketability discount | Marketability discount |
Collateral-dependent impaired loans | Maximum | Market comparable properties [Member] | Selling costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 25.00% | 25.00% |
Collateral-dependent impaired loans | Minimum | Market comparable properties [Member] | Selling costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10.00% | 10.00% |
Foreclosed assets held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 0 | $ 0 |
Valuation Technique | Market comparable properties | Market comparable properties |
Unobservable inputs | Marketability discount | Marketability discount |
Foreclosed assets held for sale | Maximum | Market comparable properties [Member] | Selling costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 35.00% | 35.00% |
Foreclosed assets held for sale | Minimum | Market comparable properties [Member] | Selling costs [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range | 10.00% | 10.00% |
Fair Value Measurements - Estim
Fair Value Measurements - Estimated Fair Values of Company's Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Financial assets | ||
Cash and cash equivalents | $ 21,647 | $ 14,985 |
Loans, net of allowance | 441,886 | 439,317 |
Federal Home Loan Bank stock | 4,432 | 4,012 |
Accrued interest receivable | 4,247 | 2,697 |
Financial liabilities | ||
Deposits | 593,727 | 548,069 |
Short term borrowings | 9,464 | 6,915 |
Federal Home Loan Bank Advances | 0 | 39,800 |
Subordinated debentures | 23,574 | 23,543 |
Interest payable | 379 | 213 |
Fair Value, Inputs, Level 1 | ||
Financial assets | ||
Cash and cash equivalents | 21,647 | 14,985 |
Loans, net of allowance | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Short term borrowings | 0 | 0 |
Federal Home Loan Bank Advances | 0 | 0 |
Subordinated debentures | 0 | 0 |
Interest payable | 0 | 0 |
Fair Value, Inputs, Level 2 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Loans, net of allowance | 0 | 0 |
Federal Home Loan Bank stock | 4,432 | 4,012 |
Accrued interest receivable | 4,247 | 2,697 |
Financial liabilities | ||
Deposits | 592,466 | 548,130 |
Short term borrowings | 9,464 | 6,915 |
Federal Home Loan Bank Advances | 0 | 39,800 |
Subordinated debentures | 22,851 | 22,857 |
Interest payable | 379 | 213 |
Fair Value, Inputs, Level 3 | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Loans, net of allowance | 441,835 | 437,688 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Deposits | 0 | 0 |
Short term borrowings | 0 | 0 |
Federal Home Loan Bank Advances | 0 | 0 |
Subordinated debentures | 0 | 0 |
Interest payable | $ 0 | $ 0 |
Repurchase Agreements (Details)
Repurchase Agreements (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Securities Sold under Agreements to Repurchase | $ 9,494 | $ 6,915 |
Corporate securities | ||
Securities Sold under Agreements to Repurchase | 9,494 | 6,915 |
Overnight and Continuous [Member] | ||
Securities Sold under Agreements to Repurchase | 9,494 | 6,915 |
Overnight and Continuous [Member] | Corporate securities | ||
Securities Sold under Agreements to Repurchase | 9,494 | 6,915 |
Up to 30 Days [Member] | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Up to 30 Days [Member] | Corporate securities | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
30-90 Days [Member] | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
30-90 Days [Member] | Corporate securities | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Greater than 90 Days [Member] | ||
Securities Sold under Agreements to Repurchase | 0 | 0 |
Greater than 90 Days [Member] | Corporate securities | ||
Securities Sold under Agreements to Repurchase | $ 0 | $ 0 |
Repurchase Agreements - Additio
Repurchase Agreements - Additional Information (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Short-term Debt | $ 9,464 | $ 6,915 |
Repurchase Agreement Borrowings | ||
Short-term Debt | 9,494 | 6,915 |
Corporate securities | ||
Short-term Debt | $ 17,700 | $ 9,400 |
Core Deposits and Other Intan_3
Core Deposits and Other Intangible Assets (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2020 | Dec. 31, 2019 | |
Changes in the carrying amount of goodwill | ||
Balance beginning of year | $ 682 | $ 682 |
Additions from acquisition | 0 | 0 |
Balance, end of period | $ 682 | $ 682 |
Core Deposits and Other Intan_4
Core Deposits and Other Intangible Assets - Intangible assets (Details) - Core deposit intangibles - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Intangible assets | ||
Gross Intangible Assets | $ 1,041 | $ 1,041 |
Accumulated Amortization | 256 | 181 |
Net Intangible Assets | $ 785 | $ 860 |
Core Deposits and Other Intan_5
Core Deposits and Other Intangible Assets - Future amortization expense (Details) $ in Thousands | Jun. 30, 2020USD ($) |
Estimated aggregate future amortization expense | |
2020 | $ 90 |
2021 | 181 |
2022 | 181 |
2023 | 181 |
2024 | $ 152 |