Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2021 | Mar. 15, 2022 | Jun. 30, 2021 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2021 | ||
Current Fiscal Year End Date | --12-31 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Document Transition Report | false | ||
Entity File Number | 000-12896 | ||
Entity Registrant Name | OLD POINT FINANCIAL CORP | ||
Entity Central Index Key | 0000740971 | ||
Entity Incorporation, State or Country Code | VA | ||
Entity Tax Identification Number | 54-1265373 | ||
Entity Address, Address Line One | 101 East Queen Street | ||
Entity Address, City or Town | Hampton | ||
Entity Address, State or Province | VA | ||
Entity Address, Postal Zip Code | 23669 | ||
City Area Code | 757 | ||
Local Phone Number | 728-1200 | ||
Title of 12(b) Security | Common Stock, $5.00 par value | ||
Trading Symbol | OPOF | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 93,161,278 | ||
Entity Common Stock, Shares Outstanding | 5,187,293 | ||
Auditor Firm ID | 613 | ||
Auditor Name | Yount, Hyde & Barbour, P.C. | ||
Auditor Location | Richmond, Virginia |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Assets | |||
Cash and due from banks | $ 13,424 | $ 21,799 | |
Interest-bearing due from banks | 164,073 | 98,633 | |
Federal funds sold | 10,425 | 5 | |
Cash and cash equivalents | 187,922 | 120,437 | |
Securities available-for-sale, at fair value | 234,321 | 186,409 | |
Restricted securities, at cost | 1,034 | 1,367 | |
Loans held for sale | 3,287 | 14,413 | |
Loans, net | [1] | 833,661 | 826,759 |
Premises and equipment, net | 32,134 | 33,613 | |
Premises and equipment, held for sale | 871 | 0 | |
Bank-owned life insurance | 28,168 | 28,386 | |
Goodwill | 1,650 | 1,650 | |
Core deposit intangible, net | 275 | 319 | |
Other assets | 14,832 | 12,838 | |
Total assets | 1,338,155 | 1,226,191 | |
Deposits: | |||
Noninterest-bearing deposits | 421,531 | 360,602 | |
Savings deposits | 586,450 | 512,936 | |
Time deposits | 169,118 | 193,698 | |
Total deposits | 1,177,099 | 1,067,236 | |
Overnight repurchase agreements | 4,536 | 6,619 | |
Federal Reserve Bank borrowings | 480 | 28,550 | |
Long term borrowings | 29,407 | 1,350 | |
Accrued expenses and other liabilities | 5,815 | 5,291 | |
Total liabilities | 1,217,337 | 1,109,046 | |
Stockholders' equity: | |||
Common stock, $5 par value, 10,000,000 shares authorized; 5,239,707 and 5,224,019 shares outstanding (includes 38,435 and 29,576 of nonvested restricted stock, respectively) | 26,006 | 25,972 | |
Additional paid-in capital | 21,458 | 21,245 | |
Retained earnings | 71,679 | 65,859 | |
Accumulated other comprehensive income, net | 1,675 | 4,069 | |
Total stockholders' equity | 120,818 | 117,145 | |
Total liabilities and stockholders' equity | $ 1,338,155 | $ 1,226,191 | |
[1] | Net deferred loan costs totaled $1.3 million and $2.1 million at December 31, 2021 and 2020, respectively. |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - $ / shares | Dec. 31, 2021 | Dec. 31, 2020 |
Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares outstanding (in shares) | 5,239,707 | 5,224,019 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested restricted stock (in shares) | 38,435 | 29,576 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Interest and Dividend Income: | ||
Loans, including fees | $ 37,912 | $ 36,012 |
Due from banks | 230 | 267 |
Federal funds sold | 3 | 12 |
Securities: | ||
Taxable | 3,284 | 3,068 |
Tax-exempt | 753 | 516 |
Dividends and interest on all other securities | 70 | 134 |
Total interest and dividend income | 42,252 | 40,009 |
Interest Expense: | ||
Checking and savings deposits | 938 | 1,080 |
Time deposits | 1,941 | 3,337 |
Federal funds purchased, securities sold under agreements to repurchase and other borrowings | 35 | 150 |
Long term borrowings | 544 | 0 |
Federal Home Loan Bank advances | 0 | 725 |
Total interest expense | 3,458 | 5,292 |
Net interest income | 38,794 | 34,717 |
Provision for loan losses | 794 | 1,000 |
Net interest income after provision for loan losses | 38,000 | 33,717 |
Noninterest Income: | ||
Bank-owned life insurance income | 1,014 | 839 |
Mortgage banking income | 2,280 | 1,781 |
Gain on sale of available-for-sale securities, net | 0 | 264 |
Gain on sale of fixed assets | 0 | 818 |
Total noninterest income | 14,885 | 14,698 |
Noninterest Expense: | ||
Salaries and employee benefits | 25,361 | 25,512 |
Occupancy and equipment | 4,694 | 4,852 |
Data processing | 4,557 | 3,478 |
Customer development | 370 | 381 |
Professional services | 2,521 | 2,196 |
Employee professional development | 719 | 658 |
Other taxes | 794 | 661 |
ATM and other losses | 504 | 871 |
Loss on extinguishment of borrowings | 0 | 490 |
(Gain) on other real estate owned | 0 | (62) |
Loss on sale of loans | 0 | 99 |
Other operating expenses | 3,629 | 3,369 |
Total noninterest expense | 43,149 | 42,505 |
Income before income taxes | 9,736 | 5,910 |
Income tax expense | 1,296 | 521 |
Net income | $ 8,440 | $ 5,389 |
Basic Earnings per Share: | ||
Weighted average shares outstanding (in shares) | 5,238,318 | 5,216,237 |
Net income per share of common stock (in dollars per share) | $ 1.61 | $ 1.03 |
Diluted Earnings per Share: | ||
Weighted average shares outstanding (in shares) | 5,238,352 | 5,216,441 |
Net income per share of common stock (in dollars per share) | $ 1.61 | $ 1.03 |
Fiduciary and Asset Management Fees [Member] | ||
Noninterest Income: | ||
Noninterest revenue | $ 4,198 | $ 3,877 |
Service Charges on Deposit Accounts [Member] | ||
Noninterest Income: | ||
Noninterest revenue | 2,866 | 2,872 |
Other Service Charges, Commissions and Fees [Member] | ||
Noninterest Income: | ||
Noninterest revenue | 4,169 | 4,028 |
Other Operating Income [Member] | ||
Noninterest Income: | ||
Noninterest revenue | $ 358 | $ 219 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 8,440 | $ 5,389 |
Other comprehensive income (loss), net of tax | ||
Net unrealized gain (loss) on available-for-sale securities | (2,394) | 4,357 |
Reclassification for gain included in net income | 0 | (209) |
Other comprehensive income (loss), net of tax | (2,394) | 4,148 |
Comprehensive income | $ 6,046 | $ 9,537 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Total |
Beginning Balance at Dec. 31, 2019 | $ 25,901 | $ 20,959 | $ 62,975 | $ (79) | $ 109,756 |
Beginning Balance (in shares) at Dec. 31, 2019 | 5,180,105 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 5,389 | 0 | 5,389 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 4,148 | 4,148 |
Employee Stock Purchase Plan share issuance | $ 29 | 67 | 0 | 0 | 96 |
Employee Stock Purchase Plan share issuance (in shares) | 5,819 | ||||
Restricted stock vested | $ 42 | (42) | 0 | 0 | 0 |
Restricted stock vested (in shares) | 8,519 | ||||
Stock-based compensation expense | $ 0 | 261 | 0 | 0 | 261 |
Cash dividends | 0 | 0 | (2,505) | 0 | (2,505) |
Ending Balance at Dec. 31, 2020 | $ 25,972 | 21,245 | 65,859 | 4,069 | $ 117,145 |
Ending Balance (in shares) at Dec. 31, 2020 | 5,194,443 | 5,224,019 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 8,440 | 0 | $ 8,440 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (2,394) | (2,394) |
Employee Stock Purchase Plan share issuance | $ 24 | 79 | 0 | 0 | 103 |
Employee Stock Purchase Plan share issuance (in shares) | 4,908 | ||||
Common stock purchased | $ (33) | (117) | 0 | 0 | (150) |
Common stock purchased (in shares) | (6,600) | ||||
Restricted stock vested | $ 43 | (43) | 0 | 0 | 0 |
Restricted stock vested (in shares) | 8,521 | ||||
Stock-based compensation expense | $ 0 | 294 | 0 | 0 | 294 |
Cash dividends | 0 | 0 | (2,620) | 0 | (2,620) |
Ending Balance at Dec. 31, 2021 | $ 26,006 | $ 21,458 | $ 71,679 | $ 1,675 | $ 120,818 |
Ending Balance (in shares) at Dec. 31, 2021 | 5,201,272 | 5,239,707 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.50 | $ 0.48 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 8,440 | $ 5,389 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 2,091 | 2,145 |
Amortization of right of use lease asset | 347 | 380 |
Accretion related to acquisition, net | (2) | (176) |
Amortization of subordinated debt issuance costs | 60 | 0 |
Provision for loan losses | 794 | 1,000 |
Gain on sale of securities, net | 0 | (264) |
Net amortization of securities | 989 | 627 |
Decrease (increase) in loans held for sale, net | 11,126 | (13,823) |
Net (gain) loss on disposal of premises and equipment | 0 | (818) |
Net gain on write-down/sale of other real estate owned | 0 | (62) |
Income from bank owned life insurance | (1,014) | (839) |
Stock compensation expense | 294 | 261 |
Deferred tax expense (benefit) | 275 | (634) |
Decrease in other assets | (748) | (966) |
Increase (decrease) in accrued expenses and other liabilities | 524 | (855) |
Net cash provided by (used in) operating activities | 23,176 | (8,635) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of available-for-sale securities | (90,070) | (73,057) |
Proceeds from redemption (purchase) of restricted securities, net | 333 | 1,559 |
Proceeds from maturities and calls of available-for-sale securities | 11,780 | 10,747 |
Proceeds from sales of available-for-sale securities | 6,880 | 13,944 |
Paydowns on available-for-sale securities | 19,479 | 12,559 |
Net increase in loans held for investment | (7,650) | (89,588) |
Proceeds from sales of other real estate owned | 0 | 316 |
Purchases of premises and equipment | (1,514) | (924) |
Proceeds from sale of premises and equipment | 31 | 2,203 |
Net cash used in investing activities | (60,731) | (122,241) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Increase in noninterest-bearing deposits | 60,929 | 98,044 |
Increase in savings deposits | 73,514 | 113,916 |
Decrease in time deposits | (24,580) | (34,220) |
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net | (3,433) | (5,433) |
Increase in Federal Home Loan Bank advances | 0 | 25,000 |
Repayment of Federal Home Loan Bank advances | 0 | (62,000) |
Increase in Federal Reserve Bank borrowings | 0 | 37,515 |
Repayment of Federal Reserve Bank borrowings | (28,070) | (8,965) |
Increase in long term borrowings | 29,347 | 96 |
Proceeds from ESPP issuance | 103 | 0 |
Repurchase of common stock | (150) | 0 |
Cash dividends paid on common stock | (2,620) | (2,505) |
Net cash provided by financing activities | 105,040 | 161,448 |
Net increase in cash and cash equivalents | 67,485 | 30,572 |
Cash and cash equivalents at beginning of period | 120,437 | 89,865 |
Cash and cash equivalents at end of period | 187,922 | 120,437 |
Cash payments for: | ||
Interest | 3,149 | 5,528 |
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||
Unrealized (loss) gain on securities available-for-sale | (3,030) | 5,250 |
Loans transferred to other real estate owned | 0 | 254 |
Former bank property transferred from fixed assets to held for sale assets | 902 | 0 |
Right of use lease asset and liability | 0 | 1,312 |
Receivable for BOLI death benefit | $ 1,232 | $ 0 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | |
Significant Accounting Policies | NOTE 1, Significant Accounting Policies THE COMPANY Headquartered in Hampton, Virginia, Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries, The Old Point National Bank of Phoebus and Old Point Trust & Financial Services, N.A. The Bank serves individual and commercial customers, the majority of which are in Hampton Roads, Virginia. As of December 31, 2021, the Bank had 16 branch offices. During the first quarter of 2022, two PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Old Point Financial Corporation (the Company) and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). All significant intercompany balances and transactions have been eliminated in consolidation. BASIS OF PRESENTATION In preparing Consolidated Financial Statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of goodwill for impairment. The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Company. Estimates for the allowance for loan losses at December 31, 2021 include probable and estimable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there remains significant uncertainty in the probable and estimable measurement of these losses. If there are further challenges to the economic recovery, then additional provision for loan losses may be required in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Company. Depending on the severity and duration of the economic consequences of the pandemic, the Company’s goodwill may become impaired. SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK Most of the Company’s activities are with customers located within the Hampton Roads region. The types of securities that the Company invests in are included in Note 3. The types of lending that the Company engages in are included in Note 4. The Company has significant concentrations in the following industries: construction, lessors of real estate, activities related to real estate, ambulatory health care and religious organizations. The Company does not have any significant concentrations to any one customer. At December 31, 2021 and 2020, there were $460.1 million and $383.4 million, or 54.5% and 45.8%, respectively, of total loans concentrated in commercial real estate. Commercial real estate for purposes of this note includes all construction loans, loans secured by multifamily residential properties, loans secured by farmland and loans secured by nonfarm, nonresidential properties. Refer to Note 4 for further detail. CASH AND CASH EQUIVALENTS For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash and balances due from banks and federal funds sold, all of which mature within 90 days. The Bank is typically required to maintain cash reserve balances on hand or with the Federal Reserve Bank (FRB). At December 31, 2021, there was no minimum reserve requirement as a result of a rule adopted by the FRB in March 2020 eliminating the reserve requirement. INTEREST-BEARING DEPOSITS IN BANKS Interest-bearing deposits in banks mature within one year and are carried at cost. SECURITIES Certain debt securities that management has the positive intent and ability to hold until maturity are classified as held-to-maturity and recorded at amortized cost. Securities not classified as held-to-maturity, excluding equity securities with readily determinable fair values which are recorded at fair value through the income statement, are classified as available-for-sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company has no trading securities. The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company employs a systematic methodology that considers available evidence in evaluating potential impairment of its investments. In the event that the cost of an investment exceeds its fair value, the Company evaluates, among other factors, the magnitude and duration of the decline in fair value; the expected cash flows of the securities; the financial health of and business outlook for the issuer; the performance of the underlying assets for interests in securitized assets; and the Company’s intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in investment income and a new cost basis in the investment is established. RESTRICTED SECURITIES, AT COST The Company, as a member of the Federal Reserve Bank (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), is required to maintain an investment in the capital stock of both the FRB and the FHLB. The Company also has an investment in the capital stock of Community Bankers’ Bank (CBB). Based on the redemption provisions of these investments, the stocks have no quoted market value, are carried at cost and are listed as restricted securities. The Company reviews its holdings for impairment based on the ultimate recoverability of the cost basis in the FRB, FHLB, and CBB stock. LOANS HELD FOR SALE The Company records loans held for sale using the lower of cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Any changes in the application of lower of cost or market accounting of loans held for sale is recorded as a component of “Mortgage banking income” within the Company’s Consolidated Statements of Income. LOANS The Company extends loans to individual consumers and commercial customers for various purposes. Most of the Company’s loans are secured by real estate, including real estate construction loans, real estate commercial loans, and real estate mortgage loans (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit). Other loans are secured by collateral that is not real estate, which may include inventory, accounts receivable, equipment or other personal property. A substantial portion of the loan portfolio is represented by real estate mortgage loans throughout Hampton Roads. The ability of the Company’s debtors to honor their contracts is dependent in part upon the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses and any unamortized deferred fees or costs on originated 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. PAYCHECK PROTECTION PROGRAM Beginning in April 2020, the Company originated loans under the Paycheck Protection Program (PPP) of the Small Business Administration (SBA). PPP loans are fully guaranteed by the SBA, and in some cases borrowers may be eligible to obtain forgiveness of the loans, in which case loans would be repaid by the SBA. As repayment of the PPP loans is guaranteed by the SBA, the Company does not recognize a reserve for PPP loans in its allowance for loan losses. The Company received fees from the SBA of one percent to five percent of the principal amount of each loan originated under the PPP. Fees received from the SBA are recognized net of direct origination costs in interest income over the life of the related loans. Recognition of fees related to PPP loans is dependent upon the timing of ultimate repayment or forgiveness. Aggregate fees from the SBA of $4.6 million, net of direct costs, will be recognized in interest income over the life of the loans, of which $630 thousand remains unrecognized as of December 31, 2021. In 2021 and 2020, the Company recognized $3.2 million and $813 thousand in net loan fees related to PPP loans in interest income on loans in the Consolidated Statement of Income, respectively. NONACCRUALS, PAST DUES AND CHARGE-OFFS The accrual of interest on commercial loans (including construction loans and commercial loans secured and not secured by real estate) is generally discontinued at the time the loan is 90 days past due unless the credit is well-secured and in the process of collection. Consumer loans not secured by real estate and consumer real estate secured loans (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit) are generally placed on nonaccrual status when payments are 120 days past due. Past due status is based on the contractual terms of the loan agreement, and loans are considered past due when a payment of principal and/or interest is due but not paid. Regular payments not received within the payment cycle are considered to be 30, 60, or 90 or more days past due accordingly. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged off is 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 status or charged off. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months. Loans are generally fully charged off or partially charged down to the fair value of collateral securing the asset when: • Management determines the asset to be uncollectible; • Repayment is deemed to be protracted beyond reasonable time frames; • The asset has been classified as a loss by either the internal loan review process or external examiners; • The borrower has filed for bankruptcy protection and the loss becomes evident due to a lack of borrower assets; or • The loan is 120 days or more past due unless the loan is both well secured and in the process of collection. ALLOWANCE FOR LOAN LOSSES The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility 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, such as a loan that is considered a troubled debt restructuring (TDR) (discussed in detail below). These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. All loans, including consumer loans, whose terms have been modified in a TDR are also individually analyzed for estimated impairment. Impairment is measured on a loan-by-loan basis for construction loans and commercial loans (i.e., commercial mortgage loans on real estate and commercial loans not secured by real estate) 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 those loans that are classified as impaired, an allowance is established when the discounted value of expected future cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. 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. 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. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The general component covers loans that are not classified as impaired. Loans collectively evaluated for impairment are pooled, with a historical loss rate, based on migration analysis, applied to each pool, segmented by risk grade or days past due, depending on the type of loan. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and consumer loans secured by real estate (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit) for impairment disclosures, unless the terms of such loans have been modified in a TDR due to financial difficulties of the borrower. Each portfolio segment has risk characteristics as follows: • Commercial and industrial: • Real estate-construction: • Real estate-mortgage • Real estate-commercial: • Consumer loans: • Other loans: Each segment of the portfolio is pooled by risk grade or by days past due. Loans not secured by real estate and made to individuals for household, family and other personal expenditures are segmented into pools based on days past due, while all other loans, including loans to consumers that are secured by real estate, are segmented by risk grades. A historical loss percentage is then calculated by migration analysis and applied to each pool. The migration analysis applied to all pools is able to track the risk grading and historical performance of individual loans throughout a number of periods set by management, which provides management with information regarding trends (or migrations) in a particular loan segment. At December 31, 2021 and 2020 management used eight twelve-quarter migration periods. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. These additional qualitative factors include: economic conditions (including uncertainties associated with the COVID-19 pandemic), trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal and regulatory environment. Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either purchased credit-impaired (PCI) or purchased performing. PCI loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality On an annual basis, the estimate of cash flows expected to be collected on PCI loans is evaluated. Estimates of cash flows for PCI loans require significant judgment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses resulting in an increase to the allowance for loan losses. Subsequent significant increases in cash flows may result in a reversal of post-acquisition provision for loan losses or a transfer from nonaccretable difference to accretable yield that increases interest income over the remaining life of the loan, or pool(s) of loans. Disposals of loans, which may include sale of loans to third parties, receipt of payments in full or in part from the borrower or foreclosure of the collateral, result in removal of the loan from the PCI loan portfolio at its carrying amount. The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing loans. A provision for loan losses may be required for any deterioration in these loans in future periods. TROUBLED DEBT RESTRUCTURINGS In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management grants a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty before their loans reach nonaccrual status and works with them to grant appropriate concessions, if necessary, and modify their loans to more affordable terms. These modified terms could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. TRANSFERS OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership); (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. OTHER REAL ESTATE OWNED (OREO) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell 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. Revenue and expenses from operations and changes in the valuation allowance (direct write-downs) are included in gain on other real estate owned on the Consolidated Statements of Income. BANK-OWNED LIFE INSURANCE The Company owns insurance on the lives of a certain group of key employees. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and the increase in cash surrender value is recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit payment. Any excess in the amount received over the recorded cash surrender value would be recorded as other operating income on the Consolidated Statements of Income. PREMISES AND EQUIPMENT Land is carried at cost. Buildings and equipment are stated at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Buildings and equipment are depreciated over their estimated useful lives ranging from 3 to 39 years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold improvement, whichever is less. Software is amortized over its estimated useful life ranging from 3 to 5 years. OFF-BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial letters of credit and lines of credit. Such financial instruments are recorded when they are funded. STOCK COMPENSATION PLANS Stock compensation accounting guidance (FASB ASC 718, “Compensation -- Stock Compensation”) requires that the compensation cost related to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black Scholes model is used to estimate the fair value of the stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. REVENUE RECOGNITION: INCOME TAXES The Company accounts for income taxes in accordance with income tax accounting guidance (FASB ASC 740, “Income Taxes”). The Company adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the difference between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more-likely-than-not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of both positive and negative evidence available, it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. No uncertain tax positions were recorded in 2021 or 2020. EARNINGS PER COMMON SHARE Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the 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 shares to be issued as part of the employee stock purchase plan and are determined using the treasury stock method. Nonvested restricted stock shares are included in the calculation of basic earnings per share due to their rights to voting and dividends. TRUST ASSETS AND INCOME Securities and other property held by Trust in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying Consolidated Financial Statements. ADVERTISING EXPENSES Advertising expenses are expensed as incurred. Advertising expense for the years ended 2021 and 2020 was $217 thousand and $230 thousand, respectively. COMPREHENSIVE INCOME Comprehensive income consists of net income and other comprehensive income, net of tax. Other comprehensive income, net of tax includes unrealized gains and losses on securities available-for-sale which is also recognized a separate component of equity. FAIR VALUE OF FINANCIAL INSTRUMENTS Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11, ASU No. 2020-02, and ASU No. 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The new standard will be effective for the Company beginning on January 1, 2023. The amendments of ASC 326, upon adoption, will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard being recorded as an adjustment to opening retained earnings in the period of adoption. The Company has established a committee to oversee the adoption of ASC 326. The Company has engaged a vendor to assist in modeling expected lifetime losses under ASC 326, gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard, performed procedures to validate the historical loan loss data to ensure its suitability and reliability for purposes of developing an estimate of expected credit losses under ASC 326, and is continuing to develop and refine an approach to estimating the allowance for credit losses. The adoption of ASC 326 will result in significant changes to the Company’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in total equity and regulatory capital of the Bank, differences in the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Company has not yet determined an estimate of the effect of these changes. The adoption of the standard will also result in significant changes in the Company’s internal control over financial reporting related to the allowance for credit losses. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company’s financial position, results of operations or cash flows. |
Restrictions on Cash and Amount
Restrictions on Cash and Amounts Due from Banks | 12 Months Ended |
Dec. 31, 2021 | |
Restrictions on Cash and Amounts Due from Banks [Abstract] | |
Restrictions on Cash and Amounts Due from Banks | NOTE 2, Restrictions on Cash and Amounts Due from Banks The Company is subject to reserve balance requirements determined by applying the reserve ratios specified in the FRB’s Regulation D. At December 31, 2021 and 2020, the Company had no balance requirements on any of its accounts. The Company had approximately $3.9 million and $9.8 million in deposits in financial institutions in excess of amounts insured by the FDIC at December 31, 2021 and December 31, 2020, respectively. |
Securities Portfolio
Securities Portfolio | 12 Months Ended |
Dec. 31, 2021 | |
Securities Portfolio [Abstract] | |
Securities Portfolio | NOTE 3, Securities Portfolio The amortized cost and fair value, with gross unrealized gains and losses, of securities available-for-sale were: December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value U.S. Treasury securities $ 15,052 $ - $ (148 ) $ 14,904 Obligations of U.S. Government agencies 38,651 75 (168 ) 38,558 Obligations of state and political subdivisions 64,132 1,948 (277 ) 65,803 Mortgage-backed securities 88,511 1,348 (801 ) 89,058 Money market investments 2,413 - - 2,413 Corporate bonds and other securities 23,441 261 (117 ) 23,585 $ 232,200 $ 3,632 $ (1,511 ) $ 234,321 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value U.S. Treasury securities $ 6,980 $ 63 $ - $ 7,043 Obligations of U.S. Government agencies 36,858 35 (197 ) 36,696 Obligations of state and political subdivisions 43,517 2,478 - 45,995 Mortgage-backed securities 70,866 2,759 (124 ) 73,501 Money market investments 4,743 - - 4,743 Corporate bonds and other securities 18,295 158 (22 ) 18,431 $ 181,259 $ 5,493 $ (343 ) $ 186,409 Securities with a fair value of $59.3 million and $69.4 million at December 31, 2021 and 2020, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, FHLB advances and for other purposes required or permitted by law. At December 31, 2021, the Company held no securities of any single issuer (excluding U.S. Government agencies) with a book value that exceeded 10 percent of stockholders’ equity. The amortized cost and fair value of securities by contractual maturity are shown below. December 31, 2021 Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 200 $ 195 Due after one year through five years 13,045 13,341 Due after five through ten years 69,739 70,559 Due after ten years 146,803 147,813 Other securities, restricted 2,413 2,413 $ 232,200 $ 234,321 The following table provides information about securities sold in the years ended December 31: Year Ended December 31, (Dollars in thousands) 2021 2020 Securities Available-for-sale Realized gains on sales of securities $ - $ 265 Realized losses on sales of securities - (1 ) Net realized gain $ - $ 264 OTHER-THAN-TEMPORARILY IMPAIRED SECURITIES Management assesses whether the Company intends to sell or it is more-likely-than-not that the Company will be required to sell a security before recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of the amortized cost basis, the Company separates the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of expected future cash flows is due to factors that are not credit related and is recognized in accumulated other comprehensive income on the consolidated balance sheets. The present value of expected future cash flows is determined using the best-estimate cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best-estimate cash flows vary depending on the type of security. The asset-backed securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds, and structural support, including subordination and guarantees. The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other than temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial position and access to capital of the issuer, including the current and future impact of any specific events and (d) for fixed maturity securities, the Company’s intent to sell a security or whether it is more-likely-than-not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in value. The Company did not record impairment charges through income on securities for the years ended December 31, 2021 and 2020. The following tables show the number of securities with unrealized losses, the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated: December 31, 2021 Less than 12 months 12 months or more Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value Losses Value U.S. Treasury securities $ 148 $ 14,904 $ - $ - $ 148 $ 14,904 Obligations of U.S. Government agencies 131 19,181 37 5,042 168 24,223 Obligations of state and political subdivisions 277 20,673 - - 277 20,673 Mortgage-backed securities 608 35,882 193 6,450 801 42,332 Corporate bonds and other securities 117 9,833 - - 117 9,833 Total securities available-for-sale $ 1,281 $ 100,473 $ 230 $ 11,492 $ 1,511 $ 111,965 December 31, 2020 Less than 12 months 12 months or more Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value Losses Value Obligations of U.S. Government agencies $ 8 $ 2,810 $ 189 $ 17,191 $ 197 $ 20,001 Mortgage-backed securities 118 14,291 6 1,285 124 15,576 Corporate bonds and other securities 22 5,977 - - 22 5,977 Total securities available-for-sale $ 148 $ 23,078 $ 195 $ 18,476 $ 343 $ 41,554 Certain investments within the Company’s portfolio had unrealized losses at December 31, 2021 and December 31, 2020, as shown in the tables above. The unrealized losses were primarily driven by changes in market interest rates. The Company purchases only highly-rated securities, including U.S. government agencies and mortgage-backed securities guaranteed by government-sponsored entities. The municipal and corporate securities portfolios are reviewed regularly to ensure that ratings of individual securities have not deteriorated below the threshold established by the Company’s policy. Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the investments before recovery of their amortized cost basis, which may be at maturity, the Company does not consider the investments to be other-than-temporarily impaired at December 31, 2021 or December 31, 2020. As of December 31, 2021, there were 9 individual available-for-sale securities with a total fair value of $11.5 million that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $230 thousand and consisted of government agency obligations and mortgage-backed securities. As of December 31, 2020, there were 12 individual available-for-sale securities with a fair value totaling $18.5 million that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $195 thousand and consisted of government agency obligations and mortgage-backed securities. The Company has determined that these securities are temporarily impaired at December 31, 2021 and 2020 for the reasons set out below: Mortgage-backed securities. Obligations of state and political subdivisions. Corporate bonds. Restricted Stock The restricted stock category is comprised of FHLB, Federal Reserve Bank, and CBB stock. These stocks are classified as restricted securities because their ownership is restricted to certain types of entities and the securities lack a market. Therefore, these investments are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock until its value is recovered. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | NOTE 4. Loans and Allowance for Loan Losses The following is a summary of the balances in each class of the Company’s loan portfolio as of the dates indicated: (dollars in thousands) December 31, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 130,776 $ 122,800 Commercial - owner occupied 198,413 153,955 Commercial - non-owner occupied 184,190 162,896 Multifamily 19,050 22,812 Construction 58,440 43,732 Second mortgages 7,877 11,178 Equity lines of credit 48,665 50,746 Total mortgage loans on real estate 647,411 568,119 Commercial and industrial loans 68,690 141,746 Consumer automobile loans 85,023 80,390 Other consumer loans 33,418 37,978 Other (1) 8,984 8,067 Total loans, net of deferred fees 843,526 836,300 Less: Allowance for loan losses 9,865 9,541 Loans, net of allowance and deferred fees (2) $ 833,661 $ 826,759 (1) Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $304 thousand and $271 thousand at December 31, 2021 and 2020, respectively. (2) Net deferred loan costs totaled $1.3 million and $2.1 million at December 31, 2021 and 2020, respectively. ACQUIRED LOANS The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets are as follows: (dollars in thousands) December 31, 2021 December 31, 2020 Outstanding principal balance $ 5,087 $ 8,671 Carrying amount 5,087 8,602 The Company did not have any outstanding principal balance or related carrying amount of purchased credit-impaired loans as of December 31, 2021 and 2020, respectively. The following table presents changes in the accretable yield on purchased credit impaired loans, for which the Company applies FASB ASC 310-30: (dollars in thousands) December 31, 2021 December 31, 2020 Balance at January 1 $ - $ 72 Accretion - (156 ) Other changes, net - 84 Balance at end of period $ - $ - CREDIT QUALITY INFORMATION The Company uses internally-assigned risk grades to estimate the capability of borrowers to repay the contractual obligations of their loan agreements as scheduled or at all. The Company’s internal risk grade system is based on experiences with similarly graded loans. Credit risk grades are updated at least quarterly as additional information becomes available, at which time management analyzes the resulting scores to track loan performance. The Company’s internally assigned risk grades are as follows: • Pass: • Other Assets Especially Mentioned (OAEM): • Substandard: • Doubtful: • Loss: The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated: Credit Quality Information As of December 31, 2021 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 130,584 $ - $ 192 $ - $ 130,776 Commercial - owner occupied 195,512 788 2,113 - 198,413 Commercial - non-owner occupied 183,093 434 663 - 184,190 Multifamily 19,050 - - - 19,050 Construction 57,224 218 998 - 58,440 Second mortgages 7,877 - - - 7,877 Equity lines of credit 48,665 - - - 48,665 Total mortgage loans on real estate $ 642,005 $ 1,440 $ 3,966 $ - $ 647,411 Commercial and industrial loans 68,261 - 429 - 68,690 Consumer automobile loans 85,002 - 21 - 85,023 Other consumer loans 33,418 - - - 33,418 Other 8,984 - - - 8,984 Total $ 837,670 $ 1,440 $ 4,416 $ - $ 843,526 Credit Quality Information As of December 31, 2020 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 122,621 $ - $ 179 $ - $ 122,800 Commercial - owner occupied 148,738 2,462 2,755 - 153,955 Commercial - non-owner occupied 162,148 748 - - 162,896 Multifamily 22,812 - - - 22,812 Construction 42,734 998 - - 43,732 Second mortgages 11,178 - - - 11,178 Equity lines of credit 50,746 - - - 50,746 Total mortgage loans on real estate $ 560,977 $ 4,208 $ 2,934 $ - $ 568,119 Commercial and industrial loans 141,391 355 - - 141,746 Consumer automobile loans 79,997 - 393 - 80,390 Other consumer loans 37,978 - - - 37,978 Other 8,067 - - - 8,067 Total $ 828,410 $ 4,563 $ 3,327 $ - $ 836,300 As of December 31, 2021 and 2020 the Company did not have any loans internally classified as Loss or Doubtful. AGE ANALYSIS OF PAST DUE LOANS BY CLASS All classes of loans are considered past due if the required principal and interest payments have not been received as of the date such payments were due. Interest and fees continue to accrue on past due loans until the date the loan is placed in nonaccrual status, if applicable. The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection. Age Analysis of Past Due Loans as of December 31, 2021 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 120 $ - $ - $ 191 $ 130,465 $ 130,776 Commercial - owner occupied - - - - 198,413 198,413 Commercial - non-owner occupied - - - 113 184,077 184,190 Multifamily - - - - 19,050 19,050 Construction - - - - 58,440 58,440 Second mortgages 24 - - - 7,853 7,877 Equity lines of credit 51 - - - 48,614 48,665 Total mortgage loans on real estate $ 195 $ - $ - $ 304 $ 646,912 $ 647,411 Commercial and industrial loans 37 - 169 174 68,310 68,690 Consumer automobile loans 814 118 296 - 83,795 85,023 Other consumer loans 1,284 439 550 - 31,145 33,418 Other 31 3 10 - 8,940 8,984 Total $ 2,361 $ 560 $ 1,025 $ 478 $ 839,102 $ 843,526 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. In the table above, the past due totals include small business and student loans with principal and interest amounts that are 97 - 100% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.4 million at December 31, 2021. Age Analysis of Past Due Loans as of December 31, 2020 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 478 $ 164 $ - $ 311 $ 121,847 $ 122,800 Commercial - owner occupied - - - 903 153,052 153,955 Commercial - non-owner occupied - - - - 162,896 162,896 Multifamily - - - - 22,812 22,812 Construction - 88 - - 43,644 43,732 Second mortgages 41 - - - 11,137 11,178 Equity lines of credit - - - - 50,746 50,746 Total mortgage loans on real estate $ 519 $ 252 $ - $ 1,214 $ 566,134 $ 568,119 Commercial and industrial loans 753 - - - 140,993 141,746 Consumer automobile loans 1,159 190 196 - 78,845 80,390 Other consumer loans 1,120 555 548 - 35,755 37,978 Other 24 3 - - 8,040 8,067 Total $ 3,575 $ 1,000 $ 744 $ 1,214 $ 829,767 $ 836,300 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. In the table above, the past due totals include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.2 million at December 31, 2020. NONACCRUAL LOANS The Company generally places commercial loans (including construction loans and commercial loans secured and not secured by real estate) in nonaccrual status when the full and timely collection of interest or principal becomes uncertain, part of the principal balance has been charged off and no restructuring has occurred or the loan reaches 90 days past due, unless the credit is well-secured and in the process of collection. Under regulatory rules, consumer loans, which are loans to individuals for household, family and other personal expenditures, and consumer loans secured by real estate (including residential 1 - 4 family mortgages, second mortgages, and equity lines of credit) are not required to be placed in nonaccrual status. Although consumer loans and consumer loans secured by real estate are not required to be placed in nonaccrual status, the Company may elect to place these loans in nonaccrual status, if necessary to avoid a material overstatement of interest income. Generally, consumer loans secured by real estate are placed in nonaccrual status only when payments are 120 days past due. Generally, consumer loans not secured by real estate are placed in nonaccrual status only when part of the principal has been charged off. If a charge-off has not occurred sooner for other reasons, a consumer loan not secured by real estate will generally be placed in nonaccrual status when payments are 120 days past due. These loans are charged off or written down to the net realizable value of the collateral when deemed uncollectible, when classified as a “loss,” when repayment is unreasonably protracted, when bankruptcy has been initiated, or when the loan is 120 days or more past due unless the credit is well-secured and in the process of collection. When management places a loan in nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and the loan is accounted for by the cash basis or cost recovery method, until it qualifies for return to accrual status or is charged off. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months. The following table presents loans in nonaccrual status by class of loan as of the dates indicated: (dollars in thousands) December 31, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 191 $ 311 Commercial - owner occupied - 903 Commercial - non-owner occupied 113 - Total mortgage loans on real estate 304 1,214 Commercial and industrial loans 174 - Consumer loans - - Total $ 478 $ 1,214 The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented: Years Ended December 31, (dollars in thousand) 2021 2020 Interest income that would have been recorded under original loan terms $ 11 $ 45 Actual interest income recorded for the period 2 34 Reduction in interest income on nonaccrual loans $ 9 $ 11 TROUBLED DEBT RESTRUCTURINGS The Company’s loan portfolio may include certain loans classified as TDRs, where economic concessions have been granted to borrowers who are experiencing financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The Company defines a TDR as nonperforming if the TDR is in nonaccrual status or is 90 days or more past due and still accruing interest at the report date. When the Company modifies a loan, management evaluates any possible impairment as discussed further below under Impaired Loans. There were no new TDRs in 2021. There were three TDRs in 2020; however as of December 31, 2020, two were sold and the remaining credit was determined to no longer be classified as a TDR because the borrower was not in financial distress. At December 31, 2021 and 2020, the Company had no outstanding commitments to disburse additional funds on any TDR. There were no loans secured by residential 1 - 4 family real estate that were in the process of foreclosure at December 31, 2021 and 2020, respectively. In the years ended December 31, 2021 and 2020 there were no defaulting TDRs where the default occurred within twelve months of restructuring. The Company considers a TDR in default when any of the following occurs: the loan, as restructured, becomes 90 days or more past due; the loan is moved to nonaccrual status following the restructure; the loan is restructured again under terms that would qualify it as a TDR if it were not already so classified; or any portion of the loan is charged off. All TDRs are factored into the determination of the allowance for loan losses and included in the impaired loan analysis, as discussed below. The Company made loan modifications under the CARES Act, enacted on March 27, 2020, and subsequently amended by the Consolidated Appropriations Act 2021, which provided that certain loan modifications that were (1) related to COVID- 19 and (2) for loans that were not more than 30 days past due as of December 31, 2019 are not required to be designated as TDRs. At December 31, 2021, the Company had no loan modifications under the CARES Act compared to $7.4 million as of December 31, 2020. IMPAIRED LOANS 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. Impaired loans include nonperforming loans and loans modified in a TDR. When management identifies a loan as impaired, the impairment is measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole or remaining source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs, when foreclosure is probable, instead of the discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is in nonaccrual status, all payments are applied to principal under the cost recovery method. For financial statement purposes, the recorded investment in the loan is the actual principal balance reduced by payments that would otherwise have been applied to interest. When reporting information on these loans to the applicable customers, the unpaid principal balance is reported as if payments were applied to principal and interest under the original terms of the loan agreements. Therefore, the unpaid principal balance reported to the customer would be higher than the recorded investment in the loan for financial statement purposes. When the ultimate collectability of the total principal of the impaired loan is not in doubt and the loan is in nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans, exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances. For the Year Ended As of December 31, 2021 December 31, 2021 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 353 $ 25 $ 300 $ 30 $ 328 $ 7 Commercial 610 178 413 8 601 1 Construction 80 79 - - 80 4 Second mortgages 127 - 125 3 126 5 Total mortgage loans on real estate 1,170 282 838 41 1,135 17 Commercial and industrial loans 188 - 174 87 181 17 Other consumer loans 9 7 - - 8 - Total $ 1,367 $ 289 $ 1,012 $ 128 $ 1,324 $ 34 For the Year Ended As of December 31, 2020 December 31, 2020 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 474 $ 366 $ 87 $ 1 $ 458 $ 10 Commercial 3,490 1,306 121 1 2,559 46 Construction 83 - 83 - 84 5 Second mortgages 133 - 133 9 134 5 Total mortgage loans on real estate 4,180 1,672 424 11 3,235 66 Commercial and industrial loans 6 6 - - 7 - Other consumer loans 14 14 - - 15 1 Total $ 4,200 $ 1,692 $ 424 $ 11 $ 3,257 $ 67 ALLOWANCE FOR LOAN LOSSES Loans are either individually evaluated for impairment or pooled with like loans and collectively evaluated for impairment. Also, various qualitative factors are applied to each segment of the loan portfolio. The allowance for loan losses is the accumulation of these components. Management’s estimate is based on certain observable, historical data and other factors that management believes are most reflective of the underlying credit losses being estimated. Management provides an allocated component of the allowance for loans that are individually evaluated for impairment. An allocated allowance is established when the discounted value of expected future cash flows from the impaired loan (or the collateral value or observable market price of the impaired loan) is lower than the carrying value of that loan. This allocation represents the sum of management’s estimated losses on each loan. Loans collectively evaluated for impairment are pooled, with a historical loss rate, based on migration analysis, applied to each pool, segmented by risk grade or days past due, depending on the type of loan. Based on credit risk assessments and management’s analysis of qualitative factors (including uncertainties associated with the COVID-19 pandemic), additional loss factors are applied to loan balances. These additional qualitative factors include: economic conditions, trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal and regulatory environment. Given the timing of the outbreak in the United States of the COVID- 19 pandemic combined with government stimulus actions for both individuals and small businesses, management does not believe that the Company’s performance in relation to credit quality during 2021 and 2020 was significantly impacted. The COVID- 19 pandemic represents an unprecedented challenge to the global economy in general and the financial services sector in particular. It is impossible for the Company to accurately predict the impact that the pandemic will have on the Company’s primary market and the overall extent to which it will affect the Company’s financial condition and results of operations. Based on capital levels, stress testing indications, prudent underwriting policies, watch credit processes, and loan concentration diversification, the Company currently expects to be able to manage the economic risks and uncertainties associated with the pandemic which may include additional increases in the provision for loan losses. ALLOWANCE FOR LOAN LOSSES BY SEGMENT The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS For the Year ended December 31, 2021 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Charge-offs (27 ) - (14 ) - (800 ) (278 ) - (1,119 ) Recoveries 41 - 76 44 390 98 - 649 Provision for loan losses 19 120 (232 ) 309 470 241 (133 ) 794 Ending Balance $ 683 $ 459 $ 2,390 $ 4,787 $ 1,362 $ 184 $ - $ 9,865 Individually evaluated for impairment $ 87 $ - $ 33 $ 8 $ - $ - $ - $ 128 Collectively evaluated for impairment 596 459 2,357 4,779 1,362 184 - 9,737 Ending Balance $ 683 $ 459 $ 2,390 $ 4,787 $ 1,362 $ 184 $ - $ 9,865 Loans Balances: Individually evaluated for impairment 174 79 450 591 7 - - 1,301 Collectively evaluated for impairment 68,516 58,361 205,918 382,012 118,434 8,984 - 842,225 Ending Balance $ 68,690 $ 58,440 $ 206,368 $ 382,603 $ 118,441 $ 8,984 $ - $ 843,526 For the Year ended December 31, 2020 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 1,244 $ 258 $ 2,505 $ 3,663 $ 1,694 $ 296 $ - $ 9,660 Charge-offs (25) - (149 ) (654 ) (822 ) (355 ) - (2,005 ) Recoveries 47 10 69 317 377 66 - 886 Provision for loan losses (616 ) 71 135 1,108 53 116 133 1,000 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Individually evaluated for impairment $ - $ - $ 10 $ 1 $ - $ - $ - $ 11 Collectively evaluated for impairment 650 339 2,550 4,433 1,302 123 133 9,530 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Loans Balances: Individually evaluated for impairment 6 83 586 1,427 14 - - 2,116 Collectively evaluated for impairment 141,740 43,649 206,950 315,424 118,354 8,067 - 834,184 Ending Balance $ 141,746 $ 43,732 $ 207,536 $ 316,851 $ 118,368 $ 8,067 $ - $ 836,300 (1) The real estate – mortgage segment included residential 1-4 family, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. |
Other Real Estate Owned (OREO)
Other Real Estate Owned (OREO) | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate Owned (OREO) [Abstract] | |
Other Real Estate Owned (OREO) | NOTE 5, Other Real Estate Owned (OREO) The Company holds certain parcels of real estate due to completed foreclosure proceedings on defaulted loans. An analysis of the balance in OREO is as follows: Years Ended December 31, (dollars in thousands) 2021 2020 Balance at beginning of year $ - $ - Transfers to OREO due to foreclosure - 254 Properties sold - (254 ) Balance at end of year $ - $ - OREO is presented net of a valuation allowance for losses. As the fair values of OREO change, adjustments are made to the recorded investment in the properties through the valuation allowance to ensure that all properties are recorded at the lower of cost or fair value. Properties written down in previous periods can be written back up if a current property valuation warrants the change, though never above the original cost of the property. Expenses applicable to OREO include the following: Years Ended December 31, (dollars in thousands) 2021 2020 Net gain on sales of real estate $ - $ 62 Operating expenses, net of income (1) - (20 ) Total Income $ - $ 42 (1) Included in other operating income and other operating expense on the Consolidated Statements of Income. |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | NOTE 6, Premises and Equipment Premises and equipment consisted of the following at December 31: Years Ended December 31, (dollars in thousands) 2021 2020 Land $ 7,270 $ 7,709 Buildings 36,418 37,530 Construction in process 279 239 Leashold improvements 867 867 Furniture, fixtures and equipment 21,991 21,235 66,825 67,580 Less accumulated depreciation and amortization 34,691 33,967 Balance at end of year $ 32,134 $ 33,613 Depreciation expense was $2.1 million for each of the years ended December 31, 2021 and 2020. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Leases | NOTE 7. Leases On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the optional transition method provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The right-of-use asset and lease liability are included in other assets other liabilities Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease if the rate implicit in the lease is unattainable. Right-of-use assets represent the Company’s right to use the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor. The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that would impact dividends or require incurring additional financial obligations. The following tables present information about the Company’s leases: (dollars in thousands) December 31, 2021 Lease liabilities $ 1,041 Right-of-use assets $ 1,017 Weighted average remaining lease term 3.64 years Weighted average discount rate 1.73 % Years Ended December 31, Lease cost 2021 2020 Operating lease cost $ 347 $ 380 Total lease cost $ 347 $ 380 Cash paid for amounts included in the measurement of lease liabilities $ 351 $ 377 A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: Lease payments due As of Twelve months ending December 31, 2022 $ 339 Twelve months ending December 31, 2023 248 Twelve months ending December 31, 2024 240 Twelve months ending December 31, 2025 193 Thereafter 70 Total undiscounted cash flows $ 1,090 Discount (49 ) Lease liabilities $ 1,041 The aggregate rental expense of premises and equipment was $470 thousand and $415 thousand for years ended December 31, 2021 and 2020, respectively. |
Low-Income Housing Tax Credits
Low-Income Housing Tax Credits | 12 Months Ended |
Dec. 31, 2021 | |
Low-Income Housing Tax Credits [Abstract] | |
Low-Income Housing Tax Credits | NOTE 8, Low-Income Housing Tax Credits The Company was invested in four separate housing equity funds at both December 31, 2021 and December 31, 2020. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of Virginia, develop and implement strategies to maintain projects as low-income housing, deliver Federal Low Income Housing Credits to investors, allocate tax losses and other possible tax benefits to investors, and preserve and protect project assets. The investments in these funds were recorded as other assets on the consolidated balance sheets and were $1.9 million and $2.3 million at December 31, 2021 and December 31, 2020, respectively. The expected terms of these investments and the related tax benefits run through 2033. There were no additional committed capital calls as of December 31, 2021 compared to $18 thousand at December 31, 2020. Additional committed capital calls are recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheets. During the years ended December 31, 2021 and 2020, the Company recognized amortization expense of $410 thousand and $688 thousand, respectively, which was included within noninterest expense on the Consolidated Statements of Income. The table below summarizes the tax credits and other tax benefits recognized by the Company and related to these investments, as of the periods indicated: Years Ended December 31, 2021 2020 Tax credits and other benefits Amortization of operating losses $ 410 $ 688 Tax benefit of operating losses* 86 144 Tax credits 361 419 Total tax benefits $ 447 $ 563 * Computed using a 21% tax rate. |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Deposits | NOTE 9, Deposits The aggregate amount of time deposits in denominations of $250 thousand or more at December 31, 2021 and 2020 was $39.9 million and $45.4 million, respectively. As of December 31, 2021, no single customer relationship exceeded 5 percent of total deposits. At December 31, 2021 the scheduled maturities of time deposits (in thousands) are as follows: (dollars in thousands) 2022 $ 99,749 2023 39,040 2024 15,095 2025 7,680 2026 7,554 Balance at end of year $ 169,118 |
Borrowings
Borrowings | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings [Abstract] | |
Borrowings | NOTE 10, Borrowings Short-Term Borrowings The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings. Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within one The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At December 31, 2021 and 2020 the remaining credit available from these lines totaled $115.0 million and $100.0 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $391.3 million and $374.7 million as of December 31, 2021 and December 31, 2020, respectively. The following table presents total short-term borrowings as of the dates indicated (dollars in thousands): (dollar in thousands) December 31, 2021 December 31, 2020 Overnight repurchase agreements $ 4,536 $ 6,619 Total short-term borrowings $ 4,536 $ 6,619 Maximum month-end outstanding balance $ 12,239 $ 9,080 Average outstanding balance during the period $ 7,293 $ 21,092 Average interest rate (year-to-date) 0.10 % 0.19 % Average interest rate at end of period 0.10 % 0.10 % Long-Term Borrowings At December 31, 2021 and 2020, the Company had $480 thousand and $28.6 million, respectively, outstanding in long-term FRB borrowings under PPPLF which all mature in April, 2022 The Company also obtained a loan maturing on April 1, 2023 from a correspondent bank during the second quarter of 2018 to provide partial funding for the Citizens acquisition. The terms of the loan include a LIBOR based interest rate that adjusts monthly and quarterly principal curtailments. At December 31, 2020, the outstanding balance was $1.4 million, and the then-current interest rate was 2.61%. The Company elected to pay the loan in full during the first quarter of 2021. On July 14, 2021, the Company completed the issuance of $29.4 million, net of issuance costs, or $30.0 million in aggregate principal amount of subordinated notes (the Notes) due in 2031 |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation [Abstract] | |
Share-Based Compensation | NOTE 11, Share-Based Compensation The Company has adopted an employee stock purchase plan and offers share-based compensation through its equity compensation plan. Share-based compensation arrangements may include stock options, restricted and unrestricted stock awards, restricted stock units, performance units and stock appreciation rights. Accounting standards require all share-based payments to employees to be valued using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period. The Company accounts for forfeitures during the vesting period as they occur. The 2016 Incentive Stock Plan (the Incentive Stock Plan) permits the issuance of up to 300,000 shares of common stock for awards to key employees and non-employee directors of the Company and its subsidiaries in the form of stock options, restricted stock, restricted stock units, stock appreciation rights, stock awards and performance units. As of December 31, 2021, only restricted stock had been granted under the Incentive Stock Plan. Restricted stock activity for the year ended December 31, 2021 is summarized below. Weighted Average Grant Date Shares Fair Value Nonvested, January 1, 2021 29,576 $ 18.46 Issued 18,048 22.35 Vested (8,521 ) 17.50 Forfeited (668 ) 18.89 Nonvested, December 31, 2021 38,435 $ 20.49 The weighted average period over which nonvested awards are expected to be recognized in compensation expense is 1.51 years. The fair value of restricted stock granted during the year ended December 31, 2021 and 2020 was $403 thousand and $298 thousand, respectively. The remaining unrecognized compensation expense for nonvested restricted stock shares totaled $351 thousand as of December 31, 2021 and $254 thousand as of December 31, 2020. Stock-based compensation expense was $294 thousand and $261 thousand for the years ended December 31, 2021 and 2020, respectively. Under the Company’s Employee Stock Purchase Plan (ESPP), substantially all employees of the Company and its subsidiaries can authorize a specific payroll deduction from their base compensation for the periodic purchase of the Company’s common stock. Shares of stock are issued quarterly at a discount to the market price of the Company’s stock on the day of purchase, which can range from 0-15% and for 2021 and 2020 was set at 5%. Total stock purchases under the ESPP amounted to 4,908 shares during 2021 and 5,819 shares during 2020. At December 31, 2021, the Company had 227,543 remaining shares reserved for issuance under the ESPP. |
Stockholders' Equity and Earnin
Stockholders' Equity and Earnings per Common Share | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity and Earnings Per Common Share [Abstract] | |
Stockholders' Equity and Earnings Per Common Share | NOTE 12, Stockholders’ Equity and Earnings per Common Share STOCKHOLDERS’ EQUITY—ACCUMULATED OTHER COMPREHENSIVE INCOME The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated: (dollars in thousands) Years Ended December 31, Affected Line Item on 2021 2020 Consolidated Statement of Income Available-for-sale securities Realized gains on sales of securities $ - $ 264 Gain on sale of available-for-sale securities, net Tax effect - 55 Income tax expense $ - $ 209 The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated: (dollars in thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Accumulated Other Comprehensive Income Year Ended December 31, 2021 Balance at beginning of period $ 4,069 $ 4,069 Net other comprehensive loss (2,394 ) (2,394 ) Balance at end of period $ 1,675 $ 1,675 Year Ended December 31, 2020 Balance at beginning of period $ (79 ) $ (79 ) Net other comprehensive income 4,148 4,148 Balance at end of period $ 4,069 $ 4,069 The following table presents the change in each component of accumulated other comprehensive income, net of tax on a pre-tax and after-tax basis for the periods indicated. Years Ended December 31, 2021 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (3,030 ) $ (636 ) $ (2,394 ) Total change in accumulated other comprehensive income, net $ (3,030 ) $ (636 ) $ (2,394 ) Years Ended December 31, 2020 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 5,514 $ 1,157 $ 4,357 Reclassification adjustment for gains recognized in income (264 ) (55 ) (209 ) Total change in accumulated other comprehensive income, net $ 5,250 $ 1,102 $ 4,148 EARNINGS PER COMMON SHARE Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to the ESPP. The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2021 and 2020: (dollars in thousands except per share data) Net Income Available to Common Shareholders (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount Year Ended December 31, 2021 Net income, basic $ 8,440 5,238 $ 1.61 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 8,440 5,238 $ 1.61 Year Ended December 31, 2020 Net income, basic $ 5,389 5,216 $ 1.03 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 5,389 5,216 $ 1.03 The Company had no antidilutive shares in 2021 or 2020. Non-vested restricted common shares, which carry all rights and privileges of a common share with respect to the stock, including the right to vote, were included in the basic and diluted per common share calculations. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | NOTE 13, Related Party Transactions In the ordinary course of business, the Company has granted loans to principal stockholders, executive officers and directors and their affiliates. These loans were made on substantially the same terms and conditions, including interest rates, collateral and repayment terms, as those prevailing at the same time for comparable transactions with unrelated persons, and, in the opinion of management and the Company’s board of directors, do not involve more than normal risk or present other unfavorable features. None of the principal stockholders, executive officers or directors had direct or indirect loans exceeding 10 percent of stockholders’ equity at December 31, 2021. Annual activity consisted of the following: (dollars in thousands) 2021 2020 Balance, beginning of year $ 4,220 $ 3,910 Additions 1,822 3,531 Reductions (4,153 ) (3,221 ) Balance, end of year $ 1,889 $ 4,220 Deposits from related parties held by the Company at December 31, 2021 and 2020 amounted to $19.8 million and $17.2 million, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Income Taxes | NOTE 14, Income Taxes The components of income tax expense for the current and prior year-ends are as follows: (dollars in thousands) 2021 2020 Current income tax expense $ 1,021 $ 1,155 Deferred income tax expense (benefit) 275 (634 ) Reported income tax expense $ 1,296 $ 521 A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods follows: Years Ended December 31, (dollars in thousands) 2021 2020 Expected tax expense $ 2,045 $ 1,241 Interest expense on tax-exempt assets 3 5 Low-income housing tax credit (361 ) (413 ) Tax-exempt interest, net (195 ) (147 ) Bank-owned life insurance (213 ) (176 ) Other, net 17 11 Reported tax expense $ 1,296 $ 521 The effective tax rates for 2021 and 2020 were 13.3% and 8.8%, respectively. The components of the net deferred tax asset, included in other assets, are as follows: (dollars in thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,072 $ 2,017 Nonaccrual loans 10 9 Acquisition accounting 5 14 Net operating losses 609 643 Investments in pass-through entities 267 224 Bank owned life insurance benefit 72 68 Securities available-for-sale - - Stock awards 116 97 Deferred compensation 314 397 Deferred loan fees and costs 270 443 Other 66 55 $ 3,801 $ 3,967 Deferred tax liabilities: Premises and equipment $ 481 $ 363 Acquisition accounting 58 67 Deferred loan fees and costs - - Securities available-for-sale 445 1,081 984 1,511 Net deferred tax assets $ 2,817 $ 2,456 The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. With few exceptions, the Company is no longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2018. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Commitments and Contingencies | NOTE 15, Commitments and Contingencies CREDIT-RELATED FINANCIAL INSTRUMENTS The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business in order to meet the financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in making such commitments as it does for on-balance-sheet instruments. The following financial instruments whose contract amounts represent credit risk were outstanding at: December 31, (dollars in thousands) 2021 2020 Commitments to extend credit: Home equity lines of credit $ 71,751 $ 66,999 Commercial real estate, construction and development loans committed but not funded 42,683 20,258 Other lines of credit (principally commercial) 52,695 64,329 Total $ 167,129 $ 151,586 Letters of credit $ 3,617 $ 4,841 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extensions of credit is based on management’s credit evaluation of the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties. Unfunded commitments under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future extensions of credit to existing customers. These lines of credit are not collateralized and usually do not contain a specified maturity date, and ultimately may or may not be drawn upon to the total extent to which the Company is committed. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year, with the exception of four letters of credit which expire in 2023 LEGAL CONTINGENCIES Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on the Company’s Consolidated Financial Statements. |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | |
Fair Value Measurements | NOTE 16, Fair Value Measurements DETERMINATION OF FAIR VALUE The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” topics of FASB ASU No. 2010-06 and FASB ASU No. 2011-04, and FASB ASU No. 2016-01, the fair value of a financial instrument is the price that would be received in the sale of an asset or transfer of a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. The fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous market for the asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value can be a reasonable point within a range that is most representative of fair value under current market conditions. In estimating the fair value of assets and liabilities, the Company relies mainly on two models. The first model, used by the Company’s bond accounting service provider, determines the fair value of securities. Securities are priced based on an evaluation of observable market data, including benchmark yield curves, reported trades, broker/dealer quotes, and issuer spreads. Pricing is also impacted by credit information about the issuer, perceived market movements, and current news events impacting the individual sectors. The second source is a third party vendor the Company utilizes to provide fair value exit pricing for loans and interest bearing deposits in accordance with guidance. In accordance with ASC 820, “Fair Value Measurements and Disclosures,” the Company groups its financial assets and financial liabilities generally measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value. Level 1 – Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities. Level 2 – Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on 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 asset or liability. Level 3 – Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation. An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS Debt securities with readily determinable fair values that are classified as “available-for-sale” are recorded at fair value, with unrealized gains and losses excluded from earnings and reported in other comprehensive income. Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Currently, all of the Company’s available-for-sale securities are considered to be Level 2 securities. The following tables present the balances of certain assets measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurements at December 31, 2021 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Balance Assets: Available-for-sale securities U.S. Treasury securities $ 14,904 $ - $ 14,904 $ - Obligations of U.S. Government agencies 38,558 - 38,558 - Obligations of state and political subdivisions 65,803 - 65,803 - Mortgage-backed securities 89,058 - 89,058 - Money market investments 2,413 - 2,413 - Corporate bonds and other securities 23,585 - 23,585 - Total available-for-sale securities 234,321 - 234,321 - Derivatives Interest rate lock 43 - 43 - Interest rate swap on loans 181 - 181 - Total assets $ 234,545 $ - $ 234,545 $ - Liabilities: Derivatives Interest rate swap on loans 181 - 181 - Total liabilities $ 181 $ - $ 181 $ - Fair Value Measurements at December 31, 2020 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Balance Available-for-sale securities U.S. Treasury securities $ 7,043 $ - $ 7,043 $ - Obligations of U.S. Government agencies 36,696 - 36,696 - Obligations of state and political subdivisions 45,995 - 45,995 - Mortgage-backed securities 73,501 - 73,501 - Money market investments 4,743 - 4,743 - Corporate bonds and other securities 18,431 - 18,431 - Total available-for-sale securities $ 186,409 $ - $ 186,409 $ - ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS Under certain circumstances, adjustments are made to the fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. Impaired loans 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. The measurement of fair value and loss associated with impaired loans can be based on the observable market price of the loan, the fair value of the collateral securing the loan, or the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate rather than at a market rate. Collateral may be in the form of real estate or business assets including equipment, inventory, and accounts receivable, with the vast majority of the collateral in real estate. The value of real estate collateral is determined utilizing an income, market, or cost valuation approach based on an appraisal conducted by an independent, licensed appraiser outside of the Company. In the case of loans with lower balances, the Company may obtain a real estate evaluation instead of an appraisal. Evaluations utilize many of the same techniques as appraisals, and are typically performed by independent appraisers. Once received, appraisals and evaluations are reviewed by trained staff independent of the lending function to verify consistency and reasonability. Appraisals and evaluations are based on significant unobservable inputs, including but not limited to: adjustments made to comparable properties, judgments about the condition of the subject property, the availability and suitability of comparable properties, capitalization rates, projected income of the subject or comparable properties, vacancy rates, projected depreciation rates, and the state of the local and regional economy. The Company may also elect to make additional reductions in the collateral value based on management’s best judgment, which represents another source of unobservable inputs. Because of the subjective nature of collateral valuation, impaired loans are considered Level 3. Impaired loans may be secured by collateral other than real estate. The value of business equipment is based upon an outside appraisal if deemed significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement balances or aging reports (Level 3). If a loan is not collateral-dependent, its impairment may be measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate. Because the loan is discounted at its effective rate of interest, rather than at a market rate, the loan is not considered to be held at fair value and is not included in the tables below. Collateral-dependent impaired loans allocated to the allowance for loan losses are measured at fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as part of the provision for loan losses on the Consolidated Statements of Income. Other Real Estate Owned (OREO) Loans are transferred to OREO when the collateral securing them is foreclosed on. The measurement of loss associated with OREO is based on the fair value of the collateral compared to the unpaid loan balance and anticipated costs to sell the property. If there is a contract for the sale of a property, and management reasonably believes the transaction will be consummated in accordance with the terms of the contract, fair value is based on the sale price in that contract (Level 1). If management has recent information about the sale of identical properties, such as when selling multiple condominium units on the same property, the remaining units would be valued based on the observed market data (Level 2). Lacking either a contract or such recent data, management would obtain an appraisal or evaluation of the value of the collateral as discussed above under Impaired Loans (Level 3). After the asset has been booked, a new appraisal or evaluation is obtained when management has reason to believe the fair value of the property may have changed and no later than two years after the last appraisal or evaluation was received. Any fair value adjustments to OREO below the original book value are recorded in the period incurred and expensed against current earnings. Loans Held For Sale Loans held for sale are carried at the lower of cost or fair value. These loans currently consist of residential loans originated for sale in the secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2). Gains and losses on the sale of loans are reported on a separate line item on the Company’s Consolidated Statements of Income. The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate. These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below. Carrying Value at December 31, 2021 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired loans Commercial loans $ 87 $ - $ - $ 87 Total $ 87 $ - $ - $ 87 Loans Loans held for sale $ 3,287 $ - $ 3,287 $ - Carrying Value at December 31, 2020 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Loans Loans held for sale $ 14,413 $ - $ 14,413 $ - The Company did not have any Level 3 Fair Value Measurements at December 31, 2020. The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2021: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at December 31, 2021 Valuation Techniques Unobservable Input Range (Weighted Average) Impaired loans Commercial loans $ 87 Market comparables Selling costs 0.00% - 8.00% (7.00 %) FASB ASC 825, “Financial Instruments,” requires disclosure about fair value of financial instruments and excludes certain financial instruments and all non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company’s assets. The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December 31, 2021 and December 31, 2020. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between origination of the instrument and its expected realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only to the respective issuing government-supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. Fair values for December 31, 2021 and 2020 are estimated under the exit price notion in accordance with ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities.” The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments as of the dates indicated are as follows: Fair Value Measurements at December 31, 2021 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 187,922 $ 187,922 $ - $ - Securities available-for-sale 234,321 - 234,321 - Restricted securities 1,034 - 1,034 - Loans held for sale 3,287 - 3,287 - Loans, net of allowances for loan losses 833,661 - - 834,693 Derivatives Interest rate lock 43 - 43 - Interest rate swap on loans 181 - 181 - Bank owned life insurance 28,168 - 28,168 - Accrued interest receivable 3,339 - 3,339 - Liabilities Deposits $ 1,177,099 $ - $ 1,179,631 $ - Overnight repurchase agreements 4,536 - 4,536 - Federal Reserve Bank borrowings 480 - 480 - Long term borrowings 29,407 - 29,657 - Derivatives Interest rate swap on loans 181 - 181 - Accrued interest payable 693 - 693 - Fair Value Measurements at December 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 120,437 $ 120,437 $ - $ - Securities available-for-sale 186,409 - 186,409 - Restricted securities 1,367 - 1,367 - Loans held for sale 14,413 - 14,413 - Loans, net of allowances for loan losses 826,759 - - 825,963 Bank owned life insurance 28,386 - 28,386 - Accrued interest receivable 3,613 - 3,613 - Liabilities Deposits $ 1,067,236 $ - $ 1,070,236 $ - Overnight repurchase agreements 6,619 - 6,619 - Federal Reserve Bank borrowings 28,550 - 28,550 - Other borrowings 1,350 - 1,350 - Accrued interest payable 384 - 384 - |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | NOTE 17, Regulatory Matters The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can cause certain mandatory and possibly additional discretionary actions to be initiated by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Federal banking regulations also impose regulatory capital requirements on bank holding companies. Under the small bank holding company policy statement of the FRB, which applies to certain bank holding companies with consolidated total assets of less than $3 billion, the Company is not subject to regulatory capital requirements. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of total, Tier 1, and common equity tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. The terms Tier 1 and common equity tier 1 capital, risk-weighted assets and average assets, as used in this note, are as defined in the applicable regulations. Management believes, as of December 31, 2021 and 2020, that the Company and the Bank meet all capital adequacy requirements to which they are subject. On September 17, 2019 the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy for qualifying community banking organizations, CBLRF as required by the EGRRCPA. The CBLRF is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework. In order to qualify for the CBLR framework, a community banking organization must have a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading assets and liabilities. The CBLRF was available for banks to begin using in their March 31, 2020, Call Report. The Bank did not opt into the CBLR framework. As of December 31, 2021, the most recent notification from the Comptroller categorized the Bank as well-capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, common equity tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no conditions or events since the notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the table below. 2021 2020 Regulatory Regulatory Minimums December 31, 2021 Minimums December 31, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets 4.500 % 12.57 % 4.500 % 11.69 % Tier 1 Capital to Risk-Weighted Assets 6.000 % 12.57 % 6.000 % 11.69 % Tier 1 Leverage to Average Assets 4.000 % 9.09 % 4.000 % 8.56 % Total Capital to Risk-Weighted Assets 8.000 % 13.61 % 8.000 % 12.77 % Capital Conservation Buffer 2.500 % 5.61 % 2.500 % 4.77 % Risk-Weighted Assets (in thousands) $ 952,218 $ 890,091 The approval of the Comptroller is required if the total of all dividends declared by a national bank in any calendar year exceeds the bank’s net profits for that year combined with its retained net profits for the preceding two calendar years. Under this formula, the Bank and Trust can distribute as dividends to the Company in 2022, without approval of the Comptroller, $8.3 million plus an additional amount equal to the Bank’s and Trust’s retained net profits for 2022 up to the date of any dividend declaration. |
Segment Reporting
Segment Reporting | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Segment Reporting | NOTE 18, Segment Reporting The Company operates in a decentralized fashion in three principal business segments: the Bank, the Trust, and the Company (for purposes of this Note). Revenues from the Bank’s operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts. Trust’s operating revenues consist principally of income from fiduciary and asset management fees. The Parent’s revenues are mainly interest and dividends received from the Bank and Trust companies. The Company has no other segments. The Company’s reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies. Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended December 31 follows: Year Ended December 31, 2021 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 42,226 $ 26 $ 9,643 $ (9,643 ) $ 42,252 Income from fiduciary activities - 4,198 - - 4,198 Other income 9,681 1,067 201 (262 ) 10,687 Total operating income 51,907 5,291 9,844 (9,905 ) 57,137 Expenses Interest expense 2,909 - 549 - 3,458 Provision for loan losses 794 - - - 794 Salaries and employee benefits 21,682 3,012 667 - 25,361 Other expenses 16,412 1,131 507 (262 ) 17,788 Total operating expenses 41,797 4,143 1,723 (262 ) 47,401 Income before taxes 10,110 1,148 8,121 (9,643 ) 9,736 Income tax expense (benefit) 1,372 243 (319 ) - 1,296 Net income $ 8,738 $ 905 $ 8,440 $ (9,643 ) $ 8,440 Capital expenditures $ 1,473 $ 41 $ - $ - $ 1,514 Total assets $ 1,330,337 $ 7,227 $ 150,943 $ (150,352 ) $ 1,338,155 Year Ended December 31, 2020 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 39,966 $ 43 $ 6,069 $ (6,069 ) $ 40,009 Income from fiduciary activities - 3,877 - - 3,877 Other income 9,899 983 200 (261 ) 10,821 Total operating income 49,865 4,903 6,269 (6,330 ) 54,707 Expenses Interest expense 5,237 - 55 - 5,292 Provision for loan losses 1,000 - - - 1,000 Salaries and employee benefits 21,652 3,191 669 - 25,512 Other expenses 15,840 1,078 336 (261 ) 16,993 Total operating expenses 43,729 4,269 1,060 (261 ) 48,797 Income before taxes 6,136 634 5,209 (6,069 ) 5,910 Income tax expense (benefit) 565 136 (180 ) - 521 Net income $ 5,571 $ 498 $ 5,389 $ (6,069 ) $ 5,389 Capital expenditures $ 901 $ 23 $ - $ - $ 924 Total assets $ 1,218,766 $ 6,957 $ 118,558 $ (118,090 ) $ 1,226,191 The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates performance based on profit or loss from operations before income taxes not including nonrecurring gains or losses. Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers. These transactions are eliminated to reach consolidated totals. The Company operates in one geographical area and does not have a single external customer from which it derives 10 percent or more of its revenues. |
Condensed Financial Statements
Condensed Financial Statements of Parent Company | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements of Parent Company [Abstract] | |
Condensed Financial Statements of Parent Company | NOTE 19, Condensed Financial Statements of Parent Company Financial information pertaining to Old Point Financial Corporation (parent company only) is as follows: Balance Sheets December 31, (dollars in thousands) 2021 2020 Assets Cash and cash equivalents $ 20,012 $ 1,203 Securities available-for-sale - - Investment in common stock of subsidiaries 130,123 116,848 Other assets 808 507 Total assets $ 150,943 $ 118,558 Liabilities and Stockholders’ Equity Other borrowings $ 29,407 $ 1,350 Other liability 718 63 Common stock 26,006 25,972 Additional paid-in capital 21,458 21,245 Retained earnings 71,679 65,859 Accumulated other comprehensive income (loss) 1,675 4,069 Total liabilities and stockholders’ equity $ 150,943 $ 118,558 Statements of Income Years Ended December 31, (dollars in thousands) 2021 2020 Income: Dividends from subsidiary $ 3,975 $ 3,425 Other income 201 200 Total income 4,176 3,625 Expenses: Salary and benefits 667 669 Subordinated debt 549 - Legal expenses 274 108 Service fees 146 135 Other operating expenses 87 148 Total expenses 1,723 1,060 Income before income taxes and equity in undistributed net income of subsidiaries 2,453 2,565 Income tax benefit (319 ) (180 ) 2,772 2,745 Equity in undistributed net income of subsidiaries 5,668 2,644 Net income $ 8,440 $ 5,389 Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2021 2020 Cash flows from operating activities: Net income $ 8,440 $ 5,389 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (5,668 ) (2,644 ) Amortization of subordinated debt issuance costs 60 - Stock compensation expense 32 55 (Decrease) increase in other assets (40 ) 8 Increase in other liabilities 655 5 Net cash provided by operating activities 3,479 2,813 Cash flows from investing activities: Cash distributed to subsidiary (10,000 ) - Net cash used in investing activities (10,000 ) - Cash flows from financing activities: Proceeds from sale of stock 103 96 Proceeds from borrowings 29,347 - Repayment of borrowings (1,350 ) (600 ) Repurchase and retirement of common stock (150 ) - Cash dividends paid on common stock (2,620 ) (2,505 ) Net cash provided by (used in) financing activities 25,330 (3,009 ) Net increase (decrease) in cash and cash equivalents 18,809 (196 ) Cash and cash equivalents at beginning of year 1,203 1,399 Cash and cash equivalents at end of year $ 20,012 $ 1,203 |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2021 | |
Significant Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Old Point Financial Corporation (the Company) and its wholly-owned subsidiaries, The Old Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). All significant intercompany balances and transactions have been eliminated in consolidation. |
BASIS OF PRESENTATION | BASIS OF PRESENTATION In preparing Consolidated Financial Statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of goodwill for impairment. The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the Company. Estimates for the allowance for loan losses at December 31, 2021 include probable and estimable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there remains significant uncertainty in the probable and estimable measurement of these losses. If there are further challenges to the economic recovery, then additional provision for loan losses may be required in future periods. It is unknown how long these conditions will last and what the ultimate financial impact will be to the Company. Depending on the severity and duration of the economic consequences of the pandemic, the Company’s goodwill may become impaired. |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK | SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK Most of the Company’s activities are with customers located within the Hampton Roads region. The types of securities that the Company invests in are included in Note 3. The types of lending that the Company engages in are included in Note 4. The Company has significant concentrations in the following industries: construction, lessors of real estate, activities related to real estate, ambulatory health care and religious organizations. The Company does not have any significant concentrations to any one customer. At December 31, 2021 and 2020, there were $460.1 million and $383.4 million, or 54.5% and 45.8%, respectively, of total loans concentrated in commercial real estate. Commercial real estate for purposes of this note includes all construction loans, loans secured by multifamily residential properties, loans secured by farmland and loans secured by nonfarm, nonresidential properties. Refer to Note 4 for further detail. |
CASH AND CASH EQUIVALENTS | CASH AND CASH EQUIVALENTS For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash and balances due from banks and federal funds sold, all of which mature within 90 days. The Bank is typically required to maintain cash reserve balances on hand or with the Federal Reserve Bank (FRB). At December 31, 2021, there was no minimum reserve requirement as a result of a rule adopted by the FRB in March 2020 eliminating the reserve requirement. |
INTEREST-BEARING DEPOSITS IN BANKS | INTEREST-BEARING DEPOSITS IN BANKS Interest-bearing deposits in banks mature within one year and are carried at cost. |
SECURITIES | SECURITIES Certain debt securities that management has the positive intent and ability to hold until maturity are classified as held-to-maturity and recorded at amortized cost. Securities not classified as held-to-maturity, excluding equity securities with readily determinable fair values which are recorded at fair value through the income statement, are classified as available-for-sale and recorded at fair value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company has no trading securities. The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. The Company employs a systematic methodology that considers available evidence in evaluating potential impairment of its investments. In the event that the cost of an investment exceeds its fair value, the Company evaluates, among other factors, the magnitude and duration of the decline in fair value; the expected cash flows of the securities; the financial health of and business outlook for the issuer; the performance of the underlying assets for interests in securitized assets; and the Company’s intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in investment income and a new cost basis in the investment is established. |
RESTRICTED SECURITIES, AT COST | RESTRICTED SECURITIES, AT COST The Company, as a member of the Federal Reserve Bank (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), is required to maintain an investment in the capital stock of both the FRB and the FHLB. The Company also has an investment in the capital stock of Community Bankers’ Bank (CBB). Based on the redemption provisions of these investments, the stocks have no quoted market value, are carried at cost and are listed as restricted securities. The Company reviews its holdings for impairment based on the ultimate recoverability of the cost basis in the FRB, FHLB, and CBB stock. |
LOANS HELD FOR SALE | LOANS HELD FOR SALE The Company records loans held for sale using the lower of cost or fair value. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Any changes in the application of lower of cost or market accounting of loans held for sale is recorded as a component of “Mortgage banking income” within the Company’s Consolidated Statements of Income. |
LOANS | LOANS The Company extends loans to individual consumers and commercial customers for various purposes. Most of the Company’s loans are secured by real estate, including real estate construction loans, real estate commercial loans, and real estate mortgage loans (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit). Other loans are secured by collateral that is not real estate, which may include inventory, accounts receivable, equipment or other personal property. A substantial portion of the loan portfolio is represented by real estate mortgage loans throughout Hampton Roads. The ability of the Company’s debtors to honor their contracts is dependent in part upon the real estate and general economic conditions in this area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses and any unamortized deferred fees or costs on originated 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. |
PAYCHECK PROTECTION PROGRAM | PAYCHECK PROTECTION PROGRAM Beginning in April 2020, the Company originated loans under the Paycheck Protection Program (PPP) of the Small Business Administration (SBA). PPP loans are fully guaranteed by the SBA, and in some cases borrowers may be eligible to obtain forgiveness of the loans, in which case loans would be repaid by the SBA. As repayment of the PPP loans is guaranteed by the SBA, the Company does not recognize a reserve for PPP loans in its allowance for loan losses. The Company received fees from the SBA of one percent to five percent of the principal amount of each loan originated under the PPP. Fees received from the SBA are recognized net of direct origination costs in interest income over the life of the related loans. Recognition of fees related to PPP loans is dependent upon the timing of ultimate repayment or forgiveness. Aggregate fees from the SBA of $4.6 million, net of direct costs, will be recognized in interest income over the life of the loans, of which $630 thousand remains unrecognized as of December 31, 2021. In 2021 and 2020, the Company recognized $3.2 million and $813 thousand in net loan fees related to PPP loans in interest income on loans in the Consolidated Statement of Income, respectively. |
NONACCRUALS, PAST DUES AND CHARGE-OFFS | NONACCRUALS, PAST DUES AND CHARGE-OFFS The accrual of interest on commercial loans (including construction loans and commercial loans secured and not secured by real estate) is generally discontinued at the time the loan is 90 days past due unless the credit is well-secured and in the process of collection. Consumer loans not secured by real estate and consumer real estate secured loans (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit) are generally placed on nonaccrual status when payments are 120 days past due. Past due status is based on the contractual terms of the loan agreement, and loans are considered past due when a payment of principal and/or interest is due but not paid. Regular payments not received within the payment cycle are considered to be 30, 60, or 90 or more days past due accordingly. In all cases, loans are placed on nonaccrual status or charged off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual status or charged off is 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 status or charged off. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months. Loans are generally fully charged off or partially charged down to the fair value of collateral securing the asset when: • Management determines the asset to be uncollectible; • Repayment is deemed to be protracted beyond reasonable time frames; • The asset has been classified as a loss by either the internal loan review process or external examiners; • The borrower has filed for bankruptcy protection and the loss becomes evident due to a lack of borrower assets; or • The loan is 120 days or more past due unless the loan is both well secured and in the process of collection. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility 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, such as a loan that is considered a troubled debt restructuring (TDR) (discussed in detail below). These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. All loans, including consumer loans, whose terms have been modified in a TDR are also individually analyzed for estimated impairment. Impairment is measured on a loan-by-loan basis for construction loans and commercial loans (i.e., commercial mortgage loans on real estate and commercial loans not secured by real estate) 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 those loans that are classified as impaired, an allowance is established when the discounted value of expected future cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. 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. 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. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. The general component covers loans that are not classified as impaired. Loans collectively evaluated for impairment are pooled, with a historical loss rate, based on migration analysis, applied to each pool, segmented by risk grade or days past due, depending on the type of loan. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and consumer loans secured by real estate (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit) for impairment disclosures, unless the terms of such loans have been modified in a TDR due to financial difficulties of the borrower. Each portfolio segment has risk characteristics as follows: • Commercial and industrial: • Real estate-construction: • Real estate-mortgage • Real estate-commercial: • Consumer loans: • Other loans: Each segment of the portfolio is pooled by risk grade or by days past due. Loans not secured by real estate and made to individuals for household, family and other personal expenditures are segmented into pools based on days past due, while all other loans, including loans to consumers that are secured by real estate, are segmented by risk grades. A historical loss percentage is then calculated by migration analysis and applied to each pool. The migration analysis applied to all pools is able to track the risk grading and historical performance of individual loans throughout a number of periods set by management, which provides management with information regarding trends (or migrations) in a particular loan segment. At December 31, 2021 and 2020 management used eight twelve-quarter migration periods. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. These additional qualitative factors include: economic conditions (including uncertainties associated with the COVID-19 pandemic), trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal and regulatory environment. Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either purchased credit-impaired (PCI) or purchased performing. PCI loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality On an annual basis, the estimate of cash flows expected to be collected on PCI loans is evaluated. Estimates of cash flows for PCI loans require significant judgment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses resulting in an increase to the allowance for loan losses. Subsequent significant increases in cash flows may result in a reversal of post-acquisition provision for loan losses or a transfer from nonaccretable difference to accretable yield that increases interest income over the remaining life of the loan, or pool(s) of loans. Disposals of loans, which may include sale of loans to third parties, receipt of payments in full or in part from the borrower or foreclosure of the collateral, result in removal of the loan from the PCI loan portfolio at its carrying amount. The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan losses established at the acquisition date for purchased performing loans. A provision for loan losses may be required for any deterioration in these loans in future periods. |
TROUBLED DEBT RESTRUCTURINGS | TROUBLED DEBT RESTRUCTURINGS In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management grants a concession for other than an insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty before their loans reach nonaccrual status and works with them to grant appropriate concessions, if necessary, and modify their loans to more affordable terms. These modified terms could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the restructuring as noted above for impaired loans. |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership); (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or the ability to unilaterally cause the holder to return specific assets. |
OTHER REAL ESTATE OWNED (OREO) | OTHER REAL ESTATE OWNED (OREO) Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell 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. Revenue and expenses from operations and changes in the valuation allowance (direct write-downs) are included in gain on other real estate owned on the Consolidated Statements of Income. |
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE The Company owns insurance on the lives of a certain group of key employees. The cash surrender value of these policies is included as an asset on the consolidated balance sheets, and the increase in cash surrender value is recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a death benefit payment. Any excess in the amount received over the recorded cash surrender value would be recorded as other operating income on the Consolidated Statements of Income. |
PREMISES AND EQUIPMENT | PREMISES AND EQUIPMENT Land is carried at cost. Buildings and equipment are stated at cost, less accumulated depreciation and amortization computed on the straight-line method over the estimated useful lives of the assets. Buildings and equipment are depreciated over their estimated useful lives ranging from 3 to 39 years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold improvement, whichever is less. Software is amortized over its estimated useful life ranging from 3 to 5 years. |
OFF-BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS | OFF-BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial letters of credit and lines of credit. Such financial instruments are recorded when they are funded. |
STOCK COMPENSATION PLANS | STOCK COMPENSATION PLANS Stock compensation accounting guidance (FASB ASC 718, “Compensation -- Stock Compensation”) requires that the compensation cost related to share-based payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans. The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black Scholes model is used to estimate the fair value of the stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. |
REVENUE RECOGNITION | REVENUE RECOGNITION: |
INCOME TAXES | INCOME TAXES The Company accounts for income taxes in accordance with income tax accounting guidance (FASB ASC 740, “Income Taxes”). The Company adopted the accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions. Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability or balance sheet method. Under this method, the net deferred tax asset or liability is based on the tax effects of the difference between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more-likely-than-not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of both positive and negative evidence available, it is more-likely-than-not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. No uncertain tax positions were recorded in 2021 or 2020. |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during the 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 shares to be issued as part of the employee stock purchase plan and are determined using the treasury stock method. Nonvested restricted stock shares are included in the calculation of basic earnings per share due to their rights to voting and dividends. |
TRUST ASSETS AND INCOME | TRUST ASSETS AND INCOME Securities and other property held by Trust in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying Consolidated Financial Statements. |
ADVERTISING EXPENSES | ADVERTISING EXPENSES Advertising expenses are expensed as incurred. Advertising expense for the years ended 2021 and 2020 was $217 thousand and $230 thousand, respectively. |
COMPREHENSIVE INCOME | COMPREHENSIVE INCOME Comprehensive income consists of net income and other comprehensive income, net of tax. Other comprehensive income, net of tax includes unrealized gains and losses on securities available-for-sale which is also recognized a separate component of equity. |
FAIR VALUE OF FINANCIAL INSTRUMENTS | FAIR VALUE OF FINANCIAL INSTRUMENTS Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates. |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11, ASU No. 2020-02, and ASU No. 2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The new standard will be effective for the Company beginning on January 1, 2023. The amendments of ASC 326, upon adoption, will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard being recorded as an adjustment to opening retained earnings in the period of adoption. The Company has established a committee to oversee the adoption of ASC 326. The Company has engaged a vendor to assist in modeling expected lifetime losses under ASC 326, gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard, performed procedures to validate the historical loan loss data to ensure its suitability and reliability for purposes of developing an estimate of expected credit losses under ASC 326, and is continuing to develop and refine an approach to estimating the allowance for credit losses. The adoption of ASC 326 will result in significant changes to the Company’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in total equity and regulatory capital of the Bank, differences in the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Company has not yet determined an estimate of the effect of these changes. The adoption of the standard will also result in significant changes in the Company’s internal control over financial reporting related to the allowance for credit losses. Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on the Company’s financial position, results of operations or cash flows. |
Securities Portfolio (Tables)
Securities Portfolio (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Securities Portfolio [Abstract] | |
Amortized Cost and Fair Value, with Gross Unrealized Gains and Losses of Securities Available-for-Sale | The amortized cost and fair value, with gross unrealized gains and losses, of securities available-for-sale were: December 31, 2021 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value U.S. Treasury securities $ 15,052 $ - $ (148 ) $ 14,904 Obligations of U.S. Government agencies 38,651 75 (168 ) 38,558 Obligations of state and political subdivisions 64,132 1,948 (277 ) 65,803 Mortgage-backed securities 88,511 1,348 (801 ) 89,058 Money market investments 2,413 - - 2,413 Corporate bonds and other securities 23,441 261 (117 ) 23,585 $ 232,200 $ 3,632 $ (1,511 ) $ 234,321 December 31, 2020 Gross Gross Amortized Unrealized Unrealized Fair (Dollars in thousands) Cost Gains (Losses) Value U.S. Treasury securities $ 6,980 $ 63 $ - $ 7,043 Obligations of U.S. Government agencies 36,858 35 (197 ) 36,696 Obligations of state and political subdivisions 43,517 2,478 - 45,995 Mortgage-backed securities 70,866 2,759 (124 ) 73,501 Money market investments 4,743 - - 4,743 Corporate bonds and other securities 18,295 158 (22 ) 18,431 $ 181,259 $ 5,493 $ (343 ) $ 186,409 |
Amortized Cost and Fair Value of Securities by Contractual Maturity | The amortized cost and fair value of securities by contractual maturity are shown below. December 31, 2021 Amortized Fair (Dollars in thousands) Cost Value Due in one year or less $ 200 $ 195 Due after one year through five years 13,045 13,341 Due after five through ten years 69,739 70,559 Due after ten years 146,803 147,813 Other securities, restricted 2,413 2,413 $ 232,200 $ 234,321 |
Net Realized Gains and (Losses) on Sale of Investments | The following table provides information about securities sold in the years ended December 31: Year Ended December 31, (Dollars in thousands) 2021 2020 Securities Available-for-sale Realized gains on sales of securities $ - $ 265 Realized losses on sales of securities - (1 ) Net realized gain $ - $ 264 |
Available-for-Sale Securities, Continuous Unrealized Loss Position | The following tables show the number of securities with unrealized losses, the gross unrealized losses and fair value of the Company’s investments with unrealized losses that are deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated: December 31, 2021 Less than 12 months 12 months or more Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value Losses Value U.S. Treasury securities $ 148 $ 14,904 $ - $ - $ 148 $ 14,904 Obligations of U.S. Government agencies 131 19,181 37 5,042 168 24,223 Obligations of state and political subdivisions 277 20,673 - - 277 20,673 Mortgage-backed securities 608 35,882 193 6,450 801 42,332 Corporate bonds and other securities 117 9,833 - - 117 9,833 Total securities available-for-sale $ 1,281 $ 100,473 $ 230 $ 11,492 $ 1,511 $ 111,965 December 31, 2020 Less than 12 months 12 months or more Total Gross Gross Gross Unrealized Fair Unrealized Fair Unrealized Fair (Dollars in thousands) Losses Value Losses Value Losses Value Obligations of U.S. Government agencies $ 8 $ 2,810 $ 189 $ 17,191 $ 197 $ 20,001 Mortgage-backed securities 118 14,291 6 1,285 124 15,576 Corporate bonds and other securities 22 5,977 - - 22 5,977 Total securities available-for-sale $ 148 $ 23,078 $ 195 $ 18,476 $ 343 $ 41,554 |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Loans and Allowance for Loan Losses [Abstract] | |
Outstanding Loans By Segment Type | The following is a summary of the balances in each class of the Company’s loan portfolio as of the dates indicated: (dollars in thousands) December 31, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 130,776 $ 122,800 Commercial - owner occupied 198,413 153,955 Commercial - non-owner occupied 184,190 162,896 Multifamily 19,050 22,812 Construction 58,440 43,732 Second mortgages 7,877 11,178 Equity lines of credit 48,665 50,746 Total mortgage loans on real estate 647,411 568,119 Commercial and industrial loans 68,690 141,746 Consumer automobile loans 85,023 80,390 Other consumer loans 33,418 37,978 Other (1) 8,984 8,067 Total loans, net of deferred fees 843,526 836,300 Less: Allowance for loan losses 9,865 9,541 Loans, net of allowance and deferred fees (2) $ 833,661 $ 826,759 (1) Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $304 thousand and $271 thousand at December 31, 2021 and 2020, respectively. (2) Net deferred loan costs totaled $1.3 million and $2.1 million at December 31, 2021 and 2020, respectively. |
Acquired Loans | The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets are as follows: (dollars in thousands) December 31, 2021 December 31, 2020 Outstanding principal balance $ 5,087 $ 8,671 Carrying amount 5,087 8,602 The Company did not have any outstanding principal balance or related carrying amount of purchased credit-impaired loans as of December 31, 2021 and 2020, respectively. The following table presents changes in the accretable yield on purchased credit impaired loans, for which the Company applies FASB ASC 310-30: (dollars in thousands) December 31, 2021 December 31, 2020 Balance at January 1 $ - $ 72 Accretion - (156 ) Other changes, net - 84 Balance at end of period $ - $ - |
Credit Quality Information | The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated: Credit Quality Information As of December 31, 2021 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 130,584 $ - $ 192 $ - $ 130,776 Commercial - owner occupied 195,512 788 2,113 - 198,413 Commercial - non-owner occupied 183,093 434 663 - 184,190 Multifamily 19,050 - - - 19,050 Construction 57,224 218 998 - 58,440 Second mortgages 7,877 - - - 7,877 Equity lines of credit 48,665 - - - 48,665 Total mortgage loans on real estate $ 642,005 $ 1,440 $ 3,966 $ - $ 647,411 Commercial and industrial loans 68,261 - 429 - 68,690 Consumer automobile loans 85,002 - 21 - 85,023 Other consumer loans 33,418 - - - 33,418 Other 8,984 - - - 8,984 Total $ 837,670 $ 1,440 $ 4,416 $ - $ 843,526 Credit Quality Information As of December 31, 2020 (dollars in thousands) Pass OAEM Substandard Doubtful Total Mortgage loans on real estate: Residential 1-4 family $ 122,621 $ - $ 179 $ - $ 122,800 Commercial - owner occupied 148,738 2,462 2,755 - 153,955 Commercial - non-owner occupied 162,148 748 - - 162,896 Multifamily 22,812 - - - 22,812 Construction 42,734 998 - - 43,732 Second mortgages 11,178 - - - 11,178 Equity lines of credit 50,746 - - - 50,746 Total mortgage loans on real estate $ 560,977 $ 4,208 $ 2,934 $ - $ 568,119 Commercial and industrial loans 141,391 355 - - 141,746 Consumer automobile loans 79,997 - 393 - 80,390 Other consumer loans 37,978 - - - 37,978 Other 8,067 - - - 8,067 Total $ 828,410 $ 4,563 $ 3,327 $ - $ 836,300 |
Past Due Loans | The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection. Age Analysis of Past Due Loans as of December 31, 2021 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 120 $ - $ - $ 191 $ 130,465 $ 130,776 Commercial - owner occupied - - - - 198,413 198,413 Commercial - non-owner occupied - - - 113 184,077 184,190 Multifamily - - - - 19,050 19,050 Construction - - - - 58,440 58,440 Second mortgages 24 - - - 7,853 7,877 Equity lines of credit 51 - - - 48,614 48,665 Total mortgage loans on real estate $ 195 $ - $ - $ 304 $ 646,912 $ 647,411 Commercial and industrial loans 37 - 169 174 68,310 68,690 Consumer automobile loans 814 118 296 - 83,795 85,023 Other consumer loans 1,284 439 550 - 31,145 33,418 Other 31 3 10 - 8,940 8,984 Total $ 2,361 $ 560 $ 1,025 $ 478 $ 839,102 $ 843,526 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. In the table above, the past due totals include small business and student loans with principal and interest amounts that are 97 - 100% guaranteed by the federal government. The past due principal portion of these guaranteed loans totaled $1.4 million at December 31, 2021. Age Analysis of Past Due Loans as of December 31, 2020 (dollars in thousands) 30 - 59 Days Past Due 60 - 89 Days Past Due 90 or More Days Past Due and still Accruing Nonaccrual (2) Total Current Loans (1) Total Mortgage loans on real estate: Residential 1-4 family $ 478 $ 164 $ - $ 311 $ 121,847 $ 122,800 Commercial - owner occupied - - - 903 153,052 153,955 Commercial - non-owner occupied - - - - 162,896 162,896 Multifamily - - - - 22,812 22,812 Construction - 88 - - 43,644 43,732 Second mortgages 41 - - - 11,137 11,178 Equity lines of credit - - - - 50,746 50,746 Total mortgage loans on real estate $ 519 $ 252 $ - $ 1,214 $ 566,134 $ 568,119 Commercial and industrial loans 753 - - - 140,993 141,746 Consumer automobile loans 1,159 190 196 - 78,845 80,390 Other consumer loans 1,120 555 548 - 35,755 37,978 Other 24 3 - - 8,040 8,067 Total $ 3,575 $ 1,000 $ 744 $ 1,214 $ 829,767 $ 836,300 (1) For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. (2) For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. |
Nonaccrual Loans | The following table presents loans in nonaccrual status by class of loan as of the dates indicated: (dollars in thousands) December 31, 2021 December 31, 2020 Mortgage loans on real estate: Residential 1-4 family $ 191 $ 311 Commercial - owner occupied - 903 Commercial - non-owner occupied 113 - Total mortgage loans on real estate 304 1,214 Commercial and industrial loans 174 - Consumer loans - - Total $ 478 $ 1,214 |
Interest Income to be Earned under the Original Terms | The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the Company on nonaccrual loans for the periods presented: Years Ended December 31, (dollars in thousand) 2021 2020 Interest income that would have been recorded under original loan terms $ 11 $ 45 Actual interest income recorded for the period 2 34 Reduction in interest income on nonaccrual loans $ 9 $ 11 |
Impaired Loans by Class | The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans, exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for the periods presented. The average balances are calculated based on daily average balances. For the Year Ended As of December 31, 2021 December 31, 2021 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 353 $ 25 $ 300 $ 30 $ 328 $ 7 Commercial 610 178 413 8 601 1 Construction 80 79 - - 80 4 Second mortgages 127 - 125 3 126 5 Total mortgage loans on real estate 1,170 282 838 41 1,135 17 Commercial and industrial loans 188 - 174 87 181 17 Other consumer loans 9 7 - - 8 - Total $ 1,367 $ 289 $ 1,012 $ 128 $ 1,324 $ 34 For the Year Ended As of December 31, 2020 December 31, 2020 (Dollars in thousands) Unpaid Principal Balance Without Valuation Allowance With Valuation Allowance Associated Allowance Average Recorded Investment Interest Income Recognized Mortgage loans on real estate: Residential 1-4 family $ 474 $ 366 $ 87 $ 1 $ 458 $ 10 Commercial 3,490 1,306 121 1 2,559 46 Construction 83 - 83 - 84 5 Second mortgages 133 - 133 9 134 5 Total mortgage loans on real estate 4,180 1,672 424 11 3,235 66 Commercial and industrial loans 6 6 - - 7 - Other consumer loans 14 14 - - 15 1 Total $ 4,200 $ 1,692 $ 424 $ 11 $ 3,257 $ 67 |
Allowance for Loan Losses by Segment | The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories. ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS For the Year ended December 31, 2021 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Charge-offs (27 ) - (14 ) - (800 ) (278 ) - (1,119 ) Recoveries 41 - 76 44 390 98 - 649 Provision for loan losses 19 120 (232 ) 309 470 241 (133 ) 794 Ending Balance $ 683 $ 459 $ 2,390 $ 4,787 $ 1,362 $ 184 $ - $ 9,865 Individually evaluated for impairment $ 87 $ - $ 33 $ 8 $ - $ - $ - $ 128 Collectively evaluated for impairment 596 459 2,357 4,779 1,362 184 - 9,737 Ending Balance $ 683 $ 459 $ 2,390 $ 4,787 $ 1,362 $ 184 $ - $ 9,865 Loans Balances: Individually evaluated for impairment 174 79 450 591 7 - - 1,301 Collectively evaluated for impairment 68,516 58,361 205,918 382,012 118,434 8,984 - 842,225 Ending Balance $ 68,690 $ 58,440 $ 206,368 $ 382,603 $ 118,441 $ 8,984 $ - $ 843,526 For the Year ended December 31, 2020 (Dollars in thousands) Commercial and Industrial Real Estate Construction Real Estate - Mortgage (1) Real Estate - Commercial Consumer (2) Other Unallocated Total Allowance for loan losses: Balance, beginning $ 1,244 $ 258 $ 2,505 $ 3,663 $ 1,694 $ 296 $ - $ 9,660 Charge-offs (25) - (149 ) (654 ) (822 ) (355 ) - (2,005 ) Recoveries 47 10 69 317 377 66 - 886 Provision for loan losses (616 ) 71 135 1,108 53 116 133 1,000 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Individually evaluated for impairment $ - $ - $ 10 $ 1 $ - $ - $ - $ 11 Collectively evaluated for impairment 650 339 2,550 4,433 1,302 123 133 9,530 Ending Balance $ 650 $ 339 $ 2,560 $ 4,434 $ 1,302 $ 123 $ 133 $ 9,541 Loans Balances: Individually evaluated for impairment 6 83 586 1,427 14 - - 2,116 Collectively evaluated for impairment 141,740 43,649 206,950 315,424 118,354 8,067 - 834,184 Ending Balance $ 141,746 $ 43,732 $ 207,536 $ 316,851 $ 118,368 $ 8,067 $ - $ 836,300 (1) The real estate – mortgage segment included residential 1-4 family, second mortgages and equity lines of credit. (2) The consumer segment includes consumer automobile loans. |
Other Real Estate Owned (OREO)
Other Real Estate Owned (OREO) (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Other Real Estate Owned (OREO) [Abstract] | |
Analysis of the Balance in Foreclosed Assets | The Company holds certain parcels of real estate due to completed foreclosure proceedings on defaulted loans. An analysis of the balance in OREO is as follows: Years Ended December 31, (dollars in thousands) 2021 2020 Balance at beginning of year $ - $ - Transfers to OREO due to foreclosure - 254 Properties sold - (254 ) Balance at end of year $ - $ - |
Expenses Applicable to Foreclosed Assets | Expenses applicable to OREO include the following: Years Ended December 31, (dollars in thousands) 2021 2020 Net gain on sales of real estate $ - $ 62 Operating expenses, net of income (1) - (20 ) Total Income $ - $ 42 (1) Included in other operating income and other operating expense on the Consolidated Statements of Income. |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Premises and Equipment [Abstract] | |
Premises and Equipment | Premises and equipment consisted of the following at December 31: Years Ended December 31, (dollars in thousands) 2021 2020 Land $ 7,270 $ 7,709 Buildings 36,418 37,530 Construction in process 279 239 Leashold improvements 867 867 Furniture, fixtures and equipment 21,991 21,235 66,825 67,580 Less accumulated depreciation and amortization 34,691 33,967 Balance at end of year $ 32,134 $ 33,613 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Leases [Abstract] | |
Information about Leases | The following tables present information about the Company’s leases: (dollars in thousands) December 31, 2021 Lease liabilities $ 1,041 Right-of-use assets $ 1,017 Weighted average remaining lease term 3.64 years Weighted average discount rate 1.73 % |
Lease Cost | Years Ended December 31, Lease cost 2021 2020 Operating lease cost $ 347 $ 380 Total lease cost $ 347 $ 380 Cash paid for amounts included in the measurement of lease liabilities $ 351 $ 377 |
Maturity of Operating Lease Liabilities | A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows: Lease payments due As of Twelve months ending December 31, 2022 $ 339 Twelve months ending December 31, 2023 248 Twelve months ending December 31, 2024 240 Twelve months ending December 31, 2025 193 Thereafter 70 Total undiscounted cash flows $ 1,090 Discount (49 ) Lease liabilities $ 1,041 |
Low-Income Housing Tax Credits
Low-Income Housing Tax Credits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Low-Income Housing Tax Credits [Abstract] | |
Tax Credits and Other Tax Benefits Recognized Related to Investments | The table below summarizes the tax credits and other tax benefits recognized by the Company and related to these investments, as of the periods indicated: Years Ended December 31, 2021 2020 Tax credits and other benefits Amortization of operating losses $ 410 $ 688 Tax benefit of operating losses* 86 144 Tax credits 361 419 Total tax benefits $ 447 $ 563 * Computed using a 21% tax rate. |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Deposits [Abstract] | |
Maturities of Time Deposits | At December 31, 2021 the scheduled maturities of time deposits (in thousands) are as follows: (dollars in thousands) 2022 $ 99,749 2023 39,040 2024 15,095 2025 7,680 2026 7,554 Balance at end of year $ 169,118 |
Borrowings (Tables)
Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Borrowings [Abstract] | |
Short-term Borrowings | The following table presents total short-term borrowings as of the dates indicated (dollars in thousands): (dollar in thousands) December 31, 2021 December 31, 2020 Overnight repurchase agreements $ 4,536 $ 6,619 Total short-term borrowings $ 4,536 $ 6,619 Maximum month-end outstanding balance $ 12,239 $ 9,080 Average outstanding balance during the period $ 7,293 $ 21,092 Average interest rate (year-to-date) 0.10 % 0.19 % Average interest rate at end of period 0.10 % 0.10 % |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Share-Based Compensation [Abstract] | |
Restricted Stock Activity | Restricted stock activity for the year ended December 31, 2021 is summarized below. Weighted Average Grant Date Shares Fair Value Nonvested, January 1, 2021 29,576 $ 18.46 Issued 18,048 22.35 Vested (8,521 ) 17.50 Forfeited (668 ) 18.89 Nonvested, December 31, 2021 38,435 $ 20.49 |
Stockholders' Equity and Earn_2
Stockholders' Equity and Earnings per Common Share (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Stockholders' Equity and Earnings Per Common Share [Abstract] | |
Amounts Reclassified Out of Accumulated Other Comprehensive Loss, by Category | The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated: (dollars in thousands) Years Ended December 31, Affected Line Item on 2021 2020 Consolidated Statement of Income Available-for-sale securities Realized gains on sales of securities $ - $ 264 Gain on sale of available-for-sale securities, net Tax effect - 55 Income tax expense $ - $ 209 |
Changes in Accumulated Other Comprehensive Loss, by Category | The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated: (dollars in thousands) Unrealized Gains (Losses) on Available-for-Sale Securities Accumulated Other Comprehensive Income Year Ended December 31, 2021 Balance at beginning of period $ 4,069 $ 4,069 Net other comprehensive loss (2,394 ) (2,394 ) Balance at end of period $ 1,675 $ 1,675 Year Ended December 31, 2020 Balance at beginning of period $ (79 ) $ (79 ) Net other comprehensive income 4,148 4,148 Balance at end of period $ 4,069 $ 4,069 |
Component of Accumulated Other Comprehensive Income on Pre-Tax and After-Tax | The following table presents the change in each component of accumulated other comprehensive income, net of tax on a pre-tax and after-tax basis for the periods indicated. Years Ended December 31, 2021 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized losses on available-for-sale securities: Unrealized holding losses arising during the period $ (3,030 ) $ (636 ) $ (2,394 ) Total change in accumulated other comprehensive income, net $ (3,030 ) $ (636 ) $ (2,394 ) Years Ended December 31, 2020 (dollars in thousands) Pretax Tax Net-of-Tax Unrealized gains on available-for-sale securities: Unrealized holding gains arising during the period $ 5,514 $ 1,157 $ 4,357 Reclassification adjustment for gains recognized in income (264 ) (55 ) (209 ) Total change in accumulated other comprehensive income, net $ 5,250 $ 1,102 $ 4,148 |
Computation of Earnings Per Share | The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2021 and 2020: (dollars in thousands except per share data) Net Income Available to Common Shareholders (Numerator) Weighted Average Common Shares (Denominator) Per Share Amount Year Ended December 31, 2021 Net income, basic $ 8,440 5,238 $ 1.61 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 8,440 5,238 $ 1.61 Year Ended December 31, 2020 Net income, basic $ 5,389 5,216 $ 1.03 Potentially dilutive common shares - employee stock purchase program - - - Diluted $ 5,389 5,216 $ 1.03 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Annual Activity | Annual activity consisted of the following: (dollars in thousands) 2021 2020 Balance, beginning of year $ 4,220 $ 3,910 Additions 1,822 3,531 Reductions (4,153 ) (3,221 ) Balance, end of year $ 1,889 $ 4,220 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Income Taxes [Abstract] | |
Components of Income Tax Expense | The components of income tax expense for the current and prior year-ends are as follows: (dollars in thousands) 2021 2020 Current income tax expense $ 1,021 $ 1,155 Deferred income tax expense (benefit) 275 (634 ) Reported income tax expense $ 1,296 $ 521 |
Reconciliation of Federal Income Tax Expense | A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods follows: Years Ended December 31, (dollars in thousands) 2021 2020 Expected tax expense $ 2,045 $ 1,241 Interest expense on tax-exempt assets 3 5 Low-income housing tax credit (361 ) (413 ) Tax-exempt interest, net (195 ) (147 ) Bank-owned life insurance (213 ) (176 ) Other, net 17 11 Reported tax expense $ 1,296 $ 521 |
Components of Net Deferred Tax Asset | The components of the net deferred tax asset, included in other assets, are as follows: (dollars in thousands) 2021 2020 Deferred tax assets: Allowance for loan losses $ 2,072 $ 2,017 Nonaccrual loans 10 9 Acquisition accounting 5 14 Net operating losses 609 643 Investments in pass-through entities 267 224 Bank owned life insurance benefit 72 68 Securities available-for-sale - - Stock awards 116 97 Deferred compensation 314 397 Deferred loan fees and costs 270 443 Other 66 55 $ 3,801 $ 3,967 Deferred tax liabilities: Premises and equipment $ 481 $ 363 Acquisition accounting 58 67 Deferred loan fees and costs - - Securities available-for-sale 445 1,081 984 1,511 Net deferred tax assets $ 2,817 $ 2,456 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Commitments and Contingencies [Abstract] | |
Financial Instruments whose Contract Amounts Represent Credit Risk | The following financial instruments whose contract amounts represent credit risk were outstanding at: December 31, (dollars in thousands) 2021 2020 Commitments to extend credit: Home equity lines of credit $ 71,751 $ 66,999 Commercial real estate, construction and development loans committed but not funded 42,683 20,258 Other lines of credit (principally commercial) 52,695 64,329 Total $ 167,129 $ 151,586 Letters of credit $ 3,617 $ 4,841 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Fair Value Measurements [Abstract] | |
Assets Measured at Fair Value on Recurring Basis | The following tables present the balances of certain assets measured at fair value on a recurring basis as of the dates indicated: Fair Value Measurements at December 31, 2021 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Balance Assets: Available-for-sale securities U.S. Treasury securities $ 14,904 $ - $ 14,904 $ - Obligations of U.S. Government agencies 38,558 - 38,558 - Obligations of state and political subdivisions 65,803 - 65,803 - Mortgage-backed securities 89,058 - 89,058 - Money market investments 2,413 - 2,413 - Corporate bonds and other securities 23,585 - 23,585 - Total available-for-sale securities 234,321 - 234,321 - Derivatives Interest rate lock 43 - 43 - Interest rate swap on loans 181 - 181 - Total assets $ 234,545 $ - $ 234,545 $ - Liabilities: Derivatives Interest rate swap on loans 181 - 181 - Total liabilities $ 181 $ - $ 181 $ - Fair Value Measurements at December 31, 2020 Using Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Balance Available-for-sale securities U.S. Treasury securities $ 7,043 $ - $ 7,043 $ - Obligations of U.S. Government agencies 36,696 - 36,696 - Obligations of state and political subdivisions 45,995 - 45,995 - Mortgage-backed securities 73,501 - 73,501 - Money market investments 4,743 - 4,743 - Corporate bonds and other securities 18,431 - 18,431 - Total available-for-sale securities $ 186,409 $ - $ 186,409 $ - |
Assets Measured at Fair Value on Nonrecurring Basis | The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded. Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate. These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below. Carrying Value at December 31, 2021 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Impaired loans Commercial loans $ 87 $ - $ - $ 87 Total $ 87 $ - $ - $ 87 Loans Loans held for sale $ 3,287 $ - $ 3,287 $ - Carrying Value at December 31, 2020 (dollars in thousands) Fair Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Loans Loans held for sale $ 14,413 $ - $ 14,413 $ - |
Fair Value Inputs, Assets, Quantitative Information | The Company did not have any Level 3 Fair Value Measurements at December 31, 2020. The following table displays quantitative information about Level 3 Fair Value Measurements as of December 31, 2021: Quantitative Information About Level 3 Fair Value Measurements (dollars in thousands) Fair Value at December 31, 2021 Valuation Techniques Unobservable Input Range (Weighted Average) Impaired loans Commercial loans $ 87 Market comparables Selling costs 0.00% - 8.00% (7.00 %) |
Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments | The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments as of the dates indicated are as follows: Fair Value Measurements at December 31, 2021 Using Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 187,922 $ 187,922 $ - $ - Securities available-for-sale 234,321 - 234,321 - Restricted securities 1,034 - 1,034 - Loans held for sale 3,287 - 3,287 - Loans, net of allowances for loan losses 833,661 - - 834,693 Derivatives Interest rate lock 43 - 43 - Interest rate swap on loans 181 - 181 - Bank owned life insurance 28,168 - 28,168 - Accrued interest receivable 3,339 - 3,339 - Liabilities Deposits $ 1,177,099 $ - $ 1,179,631 $ - Overnight repurchase agreements 4,536 - 4,536 - Federal Reserve Bank borrowings 480 - 480 - Long term borrowings 29,407 - 29,657 - Derivatives Interest rate swap on loans 181 - 181 - Accrued interest payable 693 - 693 - Fair Value Measurements at December 31, 2020 Using (dollars in thousands) Carrying Value Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Assets Cash and cash equivalents $ 120,437 $ 120,437 $ - $ - Securities available-for-sale 186,409 - 186,409 - Restricted securities 1,367 - 1,367 - Loans held for sale 14,413 - 14,413 - Loans, net of allowances for loan losses 826,759 - - 825,963 Bank owned life insurance 28,386 - 28,386 - Accrued interest receivable 3,613 - 3,613 - Liabilities Deposits $ 1,067,236 $ - $ 1,070,236 $ - Overnight repurchase agreements 6,619 - 6,619 - Federal Reserve Bank borrowings 28,550 - 28,550 - Other borrowings 1,350 - 1,350 - Accrued interest payable 384 - 384 - |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Regulatory Matters [Abstract] | |
Actual and Required Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the table below. 2021 2020 Regulatory Regulatory Minimums December 31, 2021 Minimums December 31, 2020 Common Equity Tier 1 Capital to Risk-Weighted Assets 4.500 % 12.57 % 4.500 % 11.69 % Tier 1 Capital to Risk-Weighted Assets 6.000 % 12.57 % 6.000 % 11.69 % Tier 1 Leverage to Average Assets 4.000 % 9.09 % 4.000 % 8.56 % Total Capital to Risk-Weighted Assets 8.000 % 13.61 % 8.000 % 12.77 % Capital Conservation Buffer 2.500 % 5.61 % 2.500 % 4.77 % Risk-Weighted Assets (in thousands) $ 952,218 $ 890,091 |
Segment Reporting (Tables)
Segment Reporting (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Segment Reporting [Abstract] | |
Reconciliation of Assets and Revenues from Segment to Consolidated | Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended December 31 follows: Year Ended December 31, 2021 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 42,226 $ 26 $ 9,643 $ (9,643 ) $ 42,252 Income from fiduciary activities - 4,198 - - 4,198 Other income 9,681 1,067 201 (262 ) 10,687 Total operating income 51,907 5,291 9,844 (9,905 ) 57,137 Expenses Interest expense 2,909 - 549 - 3,458 Provision for loan losses 794 - - - 794 Salaries and employee benefits 21,682 3,012 667 - 25,361 Other expenses 16,412 1,131 507 (262 ) 17,788 Total operating expenses 41,797 4,143 1,723 (262 ) 47,401 Income before taxes 10,110 1,148 8,121 (9,643 ) 9,736 Income tax expense (benefit) 1,372 243 (319 ) - 1,296 Net income $ 8,738 $ 905 $ 8,440 $ (9,643 ) $ 8,440 Capital expenditures $ 1,473 $ 41 $ - $ - $ 1,514 Total assets $ 1,330,337 $ 7,227 $ 150,943 $ (150,352 ) $ 1,338,155 Year Ended December 31, 2020 (dollars in thousands) Bank Trust Unconsolidated Parent Eliminations Consolidated Revenues Interest and dividend income $ 39,966 $ 43 $ 6,069 $ (6,069 ) $ 40,009 Income from fiduciary activities - 3,877 - - 3,877 Other income 9,899 983 200 (261 ) 10,821 Total operating income 49,865 4,903 6,269 (6,330 ) 54,707 Expenses Interest expense 5,237 - 55 - 5,292 Provision for loan losses 1,000 - - - 1,000 Salaries and employee benefits 21,652 3,191 669 - 25,512 Other expenses 15,840 1,078 336 (261 ) 16,993 Total operating expenses 43,729 4,269 1,060 (261 ) 48,797 Income before taxes 6,136 634 5,209 (6,069 ) 5,910 Income tax expense (benefit) 565 136 (180 ) - 521 Net income $ 5,571 $ 498 $ 5,389 $ (6,069 ) $ 5,389 Capital expenditures $ 901 $ 23 $ - $ - $ 924 Total assets $ 1,218,766 $ 6,957 $ 118,558 $ (118,090 ) $ 1,226,191 |
Condensed Financial Statement_2
Condensed Financial Statements of Parent Company (Tables) | 12 Months Ended |
Dec. 31, 2021 | |
Condensed Financial Statements of Parent Company [Abstract] | |
Balance Sheets | Financial information pertaining to Old Point Financial Corporation (parent company only) is as follows: Balance Sheets December 31, (dollars in thousands) 2021 2020 Assets Cash and cash equivalents $ 20,012 $ 1,203 Securities available-for-sale - - Investment in common stock of subsidiaries 130,123 116,848 Other assets 808 507 Total assets $ 150,943 $ 118,558 Liabilities and Stockholders’ Equity Other borrowings $ 29,407 $ 1,350 Other liability 718 63 Common stock 26,006 25,972 Additional paid-in capital 21,458 21,245 Retained earnings 71,679 65,859 Accumulated other comprehensive income (loss) 1,675 4,069 Total liabilities and stockholders’ equity $ 150,943 $ 118,558 |
Statements of Income | Statements of Income Years Ended December 31, (dollars in thousands) 2021 2020 Income: Dividends from subsidiary $ 3,975 $ 3,425 Other income 201 200 Total income 4,176 3,625 Expenses: Salary and benefits 667 669 Subordinated debt 549 - Legal expenses 274 108 Service fees 146 135 Other operating expenses 87 148 Total expenses 1,723 1,060 Income before income taxes and equity in undistributed net income of subsidiaries 2,453 2,565 Income tax benefit (319 ) (180 ) 2,772 2,745 Equity in undistributed net income of subsidiaries 5,668 2,644 Net income $ 8,440 $ 5,389 |
Statements of Cash Flows | Statements of Cash Flows Years Ended December 31, (dollars in thousands) 2021 2020 Cash flows from operating activities: Net income $ 8,440 $ 5,389 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed net income of subsidiaries (5,668 ) (2,644 ) Amortization of subordinated debt issuance costs 60 - Stock compensation expense 32 55 (Decrease) increase in other assets (40 ) 8 Increase in other liabilities 655 5 Net cash provided by operating activities 3,479 2,813 Cash flows from investing activities: Cash distributed to subsidiary (10,000 ) - Net cash used in investing activities (10,000 ) - Cash flows from financing activities: Proceeds from sale of stock 103 96 Proceeds from borrowings 29,347 - Repayment of borrowings (1,350 ) (600 ) Repurchase and retirement of common stock (150 ) - Cash dividends paid on common stock (2,620 ) (2,505 ) Net cash provided by (used in) financing activities 25,330 (3,009 ) Net increase (decrease) in cash and cash equivalents 18,809 (196 ) Cash and cash equivalents at beginning of year 1,203 1,399 Cash and cash equivalents at end of year $ 20,012 $ 1,203 |
Significant Accounting Polici_3
Significant Accounting Policies, The Company (Details) | Dec. 31, 2021SubsidiaryBranch |
THE COMPANY [Abstract] | |
Number of subsidiaries | Subsidiary | 2 |
Number of branch offices | 16 |
Number of closed branches | 2 |
Significant Accounting Polici_4
Significant Accounting Policies, Significant Group Concentrations of Credit Risk (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK [Abstract] | ||
Total loans, net of deferred fees | $ 843,526 | $ 836,300 |
Commercial Real Estate [Member] | Lender Concentration Risk [Member] | Commercial Real Estate and Other Customers [Member] | ||
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK [Abstract] | ||
Total loans, net of deferred fees | $ 460,100 | $ 383,400 |
Percentage of concentration risk | 54.50% | 45.80% |
Significant Accounting Polici_5
Significant Accounting Policies, Interest-bearing Deposits in Banks (Details) | 12 Months Ended |
Dec. 31, 2021 | |
INTEREST-BEARING DEPOSITS IN BANKS [Abstract] | |
Maturity period of interest bearing deposits | 1 year |
Significant Accounting Polici_6
Significant Accounting Policies, Paycheck Protection Program (Details) - PPP Loans [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
PAYCHECK PROTECTION PROGRAM [Abstract] | ||
Aggregate fees from SBA, net of direct cost | $ 4,600 | |
Unrecognized fee amount | 630 | |
Recognized fee amount | $ 3,200 | $ 813 |
Minimum [Member] | ||
PAYCHECK PROTECTION PROGRAM [Abstract] | ||
Percentage of fee received from Small Business Administration (SBA) | 1.00% | |
Maximum [Member] | ||
PAYCHECK PROTECTION PROGRAM [Abstract] | ||
Percentage of fee received from Small Business Administration (SBA) | 5.00% |
Significant Accounting Polici_7
Significant Accounting Policies, Allowance for Loan Losses (Details) | Dec. 31, 2021qtrPeriod | Dec. 31, 2020qtrPeriod |
ALLOWANCE FOR LOAN LOSSES [Abstract] | ||
Number of migration periods | Period | 8 | 8 |
Number of quarters remains on migration period | qtr | 12 | 12 |
Significant Accounting Polici_8
Significant Accounting Policies, Premises and Equipment (Details) | 12 Months Ended |
Dec. 31, 2021 | |
Buildings and Equipment [Member] | Minimum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 3 years |
Buildings and Equipment [Member] | Maximum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 39 years |
Software [Member] | Minimum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 3 years |
Software [Member] | Maximum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 5 years |
Significant Accounting Polici_9
Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
INCOME TAXES [Abstract] | ||
Uncertain tax positions | $ 0 | $ 0 |
Significant Accounting Polic_10
Significant Accounting Policies, Advertising Expenses (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
ADVERTISING EXPENSE [Abstract] | ||
Advertising expense | $ 217 | $ 230 |
Restrictions on Cash and Amou_2
Restrictions on Cash and Amounts Due from Banks (Details) - USD ($) $ in Millions | Dec. 31, 2021 | Dec. 31, 2020 |
Restrictions on Cash and Amounts Due from Banks [Abstract] | ||
Required reserve balances | $ 0 | $ 0 |
Amount of deposits at financial institutions in excess of cash FDIC insured amount | $ 3.9 | $ 9.8 |
Securities Portfolio (Details)
Securities Portfolio (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Security | Dec. 31, 2020USD ($)Security | |
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 232,200 | $ 181,259 |
Gross unrealized gains | 3,632 | 5,493 |
Gross unrealized (losses) | (1,511) | (343) |
Fair value | $ 234,321 | 186,409 |
Number of securities exceeding ten percent of stockholders' equity | Security | 0 | |
Impairment charges recorded through income on securities | $ 0 | 0 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Due in one year or less | 200 | |
Due after one year through five years | 13,045 | |
Due after five through ten years | 69,739 | |
Due after ten years | 146,803 | |
Other securities, restricted | 2,413 | |
Total securities | 232,200 | 181,259 |
Available-for-Sale, Fair Value [Abstract] | ||
Due in one year or less | 195 | |
Due after one year through five years | 13,341 | |
Due after five through ten years | 70,559 | |
Due after ten years | 147,813 | |
Other securities, restricted | 2,413 | |
Total securities | 234,321 | 186,409 |
Securities Available-for-sale [Abstract] | ||
Realized gains on sales of securities | 0 | 265 |
Realized losses on sales of securities | 0 | (1) |
Net realized gain | 0 | 264 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 1,281 | 148 |
More Than Twelve Months | 230 | 195 |
Total | 1,511 | 343 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 100,473 | 23,078 |
More Than Twelve Months | 11,492 | 18,476 |
Total | 111,965 | 41,554 |
Collateral Pledged [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Securities pledged as collateral | 59,300 | 69,400 |
U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 15,052 | 6,980 |
Gross unrealized gains | 0 | 63 |
Gross unrealized (losses) | (148) | 0 |
Fair value | 14,904 | 7,043 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 15,052 | 6,980 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 14,904 | 7,043 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 148 | |
More Than Twelve Months | 0 | |
Total | 148 | |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 14,904 | |
More Than Twelve Months | 0 | |
Total | 14,904 | |
Obligations of US Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 38,651 | 36,858 |
Gross unrealized gains | 75 | 35 |
Gross unrealized (losses) | (168) | (197) |
Fair value | 38,558 | 36,696 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 38,651 | 36,858 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 38,558 | 36,696 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 131 | 8 |
More Than Twelve Months | 37 | 189 |
Total | 168 | 197 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 19,181 | 2,810 |
More Than Twelve Months | 5,042 | 17,191 |
Total | 24,223 | 20,001 |
Obligations of State and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 64,132 | 43,517 |
Gross unrealized gains | 1,948 | 2,478 |
Gross unrealized (losses) | (277) | 0 |
Fair value | 65,803 | 45,995 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 64,132 | 43,517 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 65,803 | 45,995 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 277 | |
More Than Twelve Months | 0 | |
Total | 277 | |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 20,673 | |
More Than Twelve Months | 0 | |
Total | 20,673 | |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 88,511 | 70,866 |
Gross unrealized gains | 1,348 | 2,759 |
Gross unrealized (losses) | (801) | (124) |
Fair value | 89,058 | 73,501 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 88,511 | 70,866 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 89,058 | 73,501 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 608 | 118 |
More Than Twelve Months | 193 | 6 |
Total | 801 | 124 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 35,882 | 14,291 |
More Than Twelve Months | 6,450 | 1,285 |
Total | 42,332 | 15,576 |
Money Market Investments [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 2,413 | 4,743 |
Gross unrealized gains | 0 | 0 |
Gross unrealized (losses) | 0 | 0 |
Fair value | 2,413 | 4,743 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 2,413 | 4,743 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 2,413 | 4,743 |
Corporate Bonds and Other Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 23,441 | 18,295 |
Gross unrealized gains | 261 | 158 |
Gross unrealized (losses) | (117) | (22) |
Fair value | 23,585 | 18,431 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 23,441 | 18,295 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 23,585 | 18,431 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 117 | 22 |
More Than Twelve Months | 0 | 0 |
Total | 117 | 22 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 9,833 | 5,977 |
More Than Twelve Months | 0 | 0 |
Total | 9,833 | 5,977 |
Government Agency Obligations and Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Gross unrealized (losses) | (230) | (195) |
Fair value | 11,500 | 18,500 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | $ 11,500 | $ 18,500 |
Securities Available-for-Sale, Number of Securities [Abstract] | ||
Number of Securities | Security | 9 | 12 |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses, Outstanding Loans By Segment Type (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | $ 843,526 | $ 836,300 | |
Less: Allowance for loan losses | 9,865 | 9,541 | |
Loans, net of allowance and deferred fees | [1] | 833,661 | 826,759 |
Overdrawn accounts, excluding internal use accounts | 304 | 271 | |
Net deferred loan costs | 1,300 | 2,100 | |
Mortgage Loans on Real Estate [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 647,411 | 568,119 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 130,776 | 122,800 | |
Mortgage Loans on Real Estate [Member] | Commercial Real Estate [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 382,603 | 316,851 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 198,413 | 153,955 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 184,190 | 162,896 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 19,050 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 58,440 | 43,732 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 7,877 | 11,178 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 48,665 | 50,746 | |
Commercial [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 68,690 | 141,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 68,690 | 141,746 | |
Consumer [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | [2] | 118,441 | 118,368 |
Consumer [Member] | Consumer Automobile Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 85,023 | 80,390 | |
Consumer [Member] | Other Consumer Loans [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | 33,418 | 37,978 | |
Other [Member] | |||
Allowance for Doubtful Accounts Receivable [Roll Forward] | |||
Total loans, net of deferred fees | [3] | $ 8,984 | $ 8,067 |
[1] | Net deferred loan costs totaled $1.3 million and $2.1 million at December 31, 2021 and 2020, respectively. | ||
[2] | The consumer segment includes consumer automobile loans. | ||
[3] | Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $304 thousand and $271 thousand at December 31, 2021 and 2020, respectively. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses, Acquired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Acquired Loans Included in Consolidated Balance Sheet [Abstract] | ||
Outstanding principal balance | $ 5,087 | $ 8,671 |
Carrying amount | 5,087 | 8,602 |
Acquired Loans Accounted for Under FASB ASC 310-30 [Abstract] | ||
Outstanding principal balance | 0 | 0 |
Carrying amount | 0 | 0 |
Acquired Loans Accounted for under FASB ASC 310-30 Changes in Accretable Yield [Roll Forward] | ||
Balance at beginning of period | 0 | 72 |
Accretion | 0 | (156) |
Other changes, net | 0 | 84 |
Balance at end of period | $ 0 | $ 0 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses, Credit Quality (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | |||
Gross loans receivable | $ 843,526 | $ 836,300 | |
Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 837,670 | 828,410 | |
OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 1,440 | 4,563 | |
Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 4,416 | 3,327 | |
Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 647,411 | 568,119 | |
Mortgage Loans on Real Estate [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 642,005 | 560,977 | |
Mortgage Loans on Real Estate [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 1,440 | 4,208 | |
Mortgage Loans on Real Estate [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 3,966 | 2,934 | |
Mortgage Loans on Real Estate [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 130,776 | 122,800 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 130,584 | 122,621 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 192 | 179 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial Real Estate [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 382,603 | 316,851 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 198,413 | 153,955 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 195,512 | 148,738 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 788 | 2,462 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 2,113 | 2,755 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 184,190 | 162,896 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 183,093 | 162,148 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 434 | 748 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 663 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 19,050 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 19,050 | 22,812 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 58,440 | 43,732 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 57,224 | 42,734 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 218 | 998 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 998 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 7,877 | 11,178 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 7,877 | 11,178 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 48,665 | 50,746 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 48,665 | 50,746 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Commercial [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 68,690 | 141,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 68,690 | 141,746 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 68,261 | 141,391 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 355 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 429 | 0 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Consumer [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | [1] | 118,441 | 118,368 |
Consumer [Member] | Consumer Automobile Loans [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 85,023 | 80,390 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 85,002 | 79,997 | |
Consumer [Member] | Consumer Automobile Loans [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 21 | 393 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Consumer [Member] | Other Consumer Loans [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 33,418 | 37,978 | |
Consumer [Member] | Other Consumer Loans [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 33,418 | 37,978 | |
Consumer [Member] | Other Consumer Loans [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Consumer [Member] | Other Consumer Loans [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Consumer [Member] | Other Consumer Loans [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Other [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | [2] | 8,984 | 8,067 |
Other [Member] | Pass [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 8,984 | 8,067 | |
Other [Member] | OAEM [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Other [Member] | Substandard [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | 0 | 0 | |
Other [Member] | Doubtful [Member] | |||
Receivables [Abstract] | |||
Gross loans receivable | $ 0 | $ 0 | |
[1] | The consumer segment includes consumer automobile loans. | ||
[2] | Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $304 thousand and $271 thousand at December 31, 2021 and 2020, respectively. |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses, Past Due (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Loans, Aging [Abstract] | |||
Total Loans | $ 843,526 | $ 836,300 | |
Nonaccrual | [1] | 478 | 1,214 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 478 | 1,214 |
Interest income that would have been recorded under original loan terms [Abstract] | |||
Interest income that would have been recorded under original loan terms | 11 | 45 | |
Actual interest income recorded for the period | 2 | 34 | |
Reduction in interest income on non accrual loans | 9 | 11 | |
30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 2,361 | 3,575 | |
60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 560 | 1,000 | |
90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 1,025 | 744 | |
Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 839,102 | 829,767 |
Commercial and Industrial Loans [Member] | |||
Loans, Aging [Abstract] | |||
Nonaccrual | 174 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | 174 | 0 | |
Guaranteed Student Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | $ 1,400 | $ 1,200 | |
Guaranteed Student Loans [Member] | Minimum [Member] | |||
Loans, Aging [Abstract] | |||
Percentage of student loans guaranteed by federal government | 97.00% | 97.00% | |
Guaranteed Student Loans [Member] | Maximum [Member] | |||
Loans, Aging [Abstract] | |||
Percentage of student loans guaranteed by federal government | 100.00% | 98.00% | |
Guaranteed Student Loans [Member] | 90 or More Days Past Due [Member] | Minimum [Member] | |||
Loans, Aging [Abstract] | |||
Percentage of student loans guaranteed by federal government | 97.00% | 97.00% | |
Guaranteed Student Loans [Member] | 90 or More Days Past Due [Member] | Maximum [Member] | |||
Loans, Aging [Abstract] | |||
Percentage of student loans guaranteed by federal government | 100.00% | 98.00% | |
Mortgage Loans on Real Estate [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | $ 647,411 | $ 568,119 | |
Nonaccrual | [1] | 304 | 1,214 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 304 | 1,214 |
Mortgage Loans on Real Estate [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 195 | 519 | |
Mortgage Loans on Real Estate [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 252 | |
Mortgage Loans on Real Estate [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 646,912 | 566,134 |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 130,776 | 122,800 | |
Nonaccrual | [1] | 191 | 311 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 191 | 311 |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 120 | 478 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 164 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 130,465 | 121,847 |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 198,413 | 153,955 | |
Nonaccrual | [1] | 0 | 903 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 903 |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 198,413 | 153,052 |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 184,190 | 162,896 | |
Nonaccrual | [1] | 113 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 113 | 0 |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 184,077 | 162,896 |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 19,050 | 22,812 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 19,050 | 22,812 |
Mortgage Loans on Real Estate [Member] | Construction [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 58,440 | 43,732 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Mortgage Loans on Real Estate [Member] | Construction [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 88 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Construction [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 58,440 | 43,644 |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 7,877 | 11,178 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 24 | 41 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 7,853 | 11,137 |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 48,665 | 50,746 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 51 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 48,614 | 50,746 |
Commercial [Member] | Commercial and Industrial Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 68,690 | 141,746 | |
Nonaccrual | [1] | 174 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 174 | 0 |
Commercial [Member] | Commercial and Industrial Loans [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 37 | 753 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 0 | 0 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 169 | 0 | |
Commercial [Member] | Commercial and Industrial Loans [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 68,310 | 140,993 |
Consumer [Member] | |||
Loans, Aging [Abstract] | |||
Nonaccrual | 0 | 0 | |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | 0 | 0 | |
Consumer [Member] | Consumer Automobile Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 85,023 | 80,390 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Consumer [Member] | Consumer Automobile Loans [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 814 | 1,159 | |
Consumer [Member] | Consumer Automobile Loans [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 118 | 190 | |
Consumer [Member] | Consumer Automobile Loans [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 296 | 196 | |
Consumer [Member] | Consumer Automobile Loans [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 83,795 | 78,845 |
Consumer [Member] | Other Consumer Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 33,418 | 37,978 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Consumer [Member] | Other Consumer Loans [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 1,284 | 1,120 | |
Consumer [Member] | Other Consumer Loans [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 439 | 555 | |
Consumer [Member] | Other Consumer Loans [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 550 | 548 | |
Consumer [Member] | Other Consumer Loans [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | 31,145 | 35,755 |
Other [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 8,984 | 8,067 | |
Nonaccrual | [1] | 0 | 0 |
Loans in nonaccrual status by class of loan [Abstract] | |||
Loans in nonaccrual status | [1] | 0 | 0 |
Other [Member] | 30 to 59 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 31 | 24 | |
Other [Member] | 60 to 89 Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 3 | 3 | |
Other [Member] | 90 or More Days Past Due [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | 10 | 0 | |
Other [Member] | Current Loans [Member] | |||
Loans, Aging [Abstract] | |||
Total Loans | [2] | $ 8,940 | $ 8,040 |
[1] | For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column. | ||
[2] | For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due. |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses, Troubled Debt Restructuring (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Contract | Dec. 31, 2020USD ($)ContractModification | |
Receivables [Abstract] | ||
Number of Modifications | Contract | 0 | 3 |
Number of modifications sold | Modification | 2 | |
Outstanding commitments on TDR's | $ 0 | $ 0 |
Defaulting TDR's within twelve months of restructuring | 0 | 0 |
Residential 1-4 Family [Member] | ||
Receivables [Abstract] | ||
Loans in process for foreclosure | 0 | 0 |
COVID-19 [Member] | ||
COVID-19 [Abstract] | ||
Loan modifications | $ 0 | $ 7,400 |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Receivables [Abstract] | ||
Unpaid Principal Balance | $ 1,367 | $ 4,200 |
Recorded Investment, Without Valuation Allowance | 289 | 1,692 |
Recorded Investment, With Valuation Allowance | 1,012 | 424 |
Associated Allowance | 128 | 11 |
Average Recorded Investment | 1,324 | 3,257 |
Interest Income Recognized | 34 | 67 |
Mortgage Loans on Real Estate [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 1,170 | 4,180 |
Recorded Investment, Without Valuation Allowance | 282 | 1,672 |
Recorded Investment, With Valuation Allowance | 838 | 424 |
Associated Allowance | 41 | 11 |
Average Recorded Investment | 1,135 | 3,235 |
Interest Income Recognized | 17 | 66 |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 353 | 474 |
Recorded Investment, Without Valuation Allowance | 25 | 366 |
Recorded Investment, With Valuation Allowance | 300 | 87 |
Associated Allowance | 30 | 1 |
Average Recorded Investment | 328 | 458 |
Interest Income Recognized | 7 | 10 |
Mortgage Loans on Real Estate [Member] | Commercial [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 610 | 3,490 |
Recorded Investment, Without Valuation Allowance | 178 | 1,306 |
Recorded Investment, With Valuation Allowance | 413 | 121 |
Associated Allowance | 8 | 1 |
Average Recorded Investment | 601 | 2,559 |
Interest Income Recognized | 1 | 46 |
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 80 | 83 |
Recorded Investment, Without Valuation Allowance | 79 | 0 |
Recorded Investment, With Valuation Allowance | 0 | 83 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 80 | 84 |
Interest Income Recognized | 4 | 5 |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 127 | 133 |
Recorded Investment, Without Valuation Allowance | 0 | 0 |
Recorded Investment, With Valuation Allowance | 125 | 133 |
Associated Allowance | 3 | 9 |
Average Recorded Investment | 126 | 134 |
Interest Income Recognized | 5 | 5 |
Commercial [Member] | Commercial and Industrial Loans [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 188 | 6 |
Recorded Investment, Without Valuation Allowance | 0 | 6 |
Recorded Investment, With Valuation Allowance | 174 | 0 |
Associated Allowance | 87 | 0 |
Average Recorded Investment | 181 | 7 |
Interest Income Recognized | 17 | 0 |
Consumer [Member] | Other Consumer Loans [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 9 | 14 |
Recorded Investment, Without Valuation Allowance | 7 | 14 |
Recorded Investment, With Valuation Allowance | 0 | 0 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 8 | 15 |
Interest Income Recognized | $ 0 | $ 1 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses, Activity In Period (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | $ 9,541 | $ 9,660 | |
Charge-offs | (1,119) | (2,005) | |
Recoveries | 649 | 886 | |
Provision for loan losses | 794 | 1,000 | |
Ending balance | 9,865 | 9,541 | |
Individually evaluated for impairment | 128 | 11 | |
Collectively evaluated for impairment | 9,737 | 9,530 | |
Ending balance | 9,865 | 9,541 | |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | 1,301 | 2,116 | |
Collectively evaluated for impairment | 842,225 | 834,184 | |
Ending balance | 843,526 | 836,300 | |
Commercial and Industrial [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | 650 | 1,244 | |
Charge-offs | (27) | (25) | |
Recoveries | 41 | 47 | |
Provision for loan losses | 19 | (616) | |
Ending balance | 683 | 650 | |
Individually evaluated for impairment | 87 | 0 | |
Collectively evaluated for impairment | 596 | 650 | |
Ending balance | 683 | 650 | |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | 174 | 6 | |
Collectively evaluated for impairment | 68,516 | 141,740 | |
Ending balance | 68,690 | 141,746 | |
Real Estate [Member] | |||
Loans Balances [Abstract] | |||
Ending balance | 647,411 | 568,119 | |
Real Estate [Member] | Construction [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | 339 | 258 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 10 | |
Provision for loan losses | 120 | 71 | |
Ending balance | 459 | 339 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 459 | 339 | |
Ending balance | 459 | 339 | |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | 79 | 83 | |
Collectively evaluated for impairment | 58,361 | 43,649 | |
Ending balance | 58,440 | 43,732 | |
Real Estate [Member] | Mortgage [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | [1] | 2,560 | 2,505 |
Charge-offs | [1] | (14) | (149) |
Recoveries | [1] | 76 | 69 |
Provision for loan losses | [1] | (232) | 135 |
Ending balance | [1] | 2,390 | 2,560 |
Individually evaluated for impairment | [1] | 33 | 10 |
Collectively evaluated for impairment | [1] | 2,357 | 2,550 |
Ending balance | [1] | 2,390 | 2,560 |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | [1] | 450 | 586 |
Collectively evaluated for impairment | [1] | 205,918 | 206,950 |
Ending balance | [1] | 206,368 | 207,536 |
Real Estate [Member] | Commercial [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | 4,434 | 3,663 | |
Charge-offs | 0 | (654) | |
Recoveries | 44 | 317 | |
Provision for loan losses | 309 | 1,108 | |
Ending balance | 4,787 | 4,434 | |
Individually evaluated for impairment | 8 | 1 | |
Collectively evaluated for impairment | 4,779 | 4,433 | |
Ending balance | 4,787 | 4,434 | |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | 591 | 1,427 | |
Collectively evaluated for impairment | 382,012 | 315,424 | |
Ending balance | 382,603 | 316,851 | |
Consumer [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | [2] | 1,302 | 1,694 |
Charge-offs | [2] | (800) | (822) |
Recoveries | [2] | 390 | 377 |
Provision for loan losses | [2] | 470 | 53 |
Ending balance | [2] | 1,362 | 1,302 |
Individually evaluated for impairment | [2] | 0 | 0 |
Collectively evaluated for impairment | [2] | 1,362 | 1,302 |
Ending balance | [2] | 1,362 | 1,302 |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | [2] | 7 | 14 |
Collectively evaluated for impairment | [2] | 118,434 | 118,354 |
Ending balance | [2] | 118,441 | 118,368 |
Other [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | 123 | 296 | |
Charge-offs | (278) | (355) | |
Recoveries | 98 | 66 | |
Provision for loan losses | 241 | 116 | |
Ending balance | 184 | 123 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 184 | 123 | |
Ending balance | 184 | 123 | |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 8,984 | 8,067 | |
Ending balance | [3] | 8,984 | 8,067 |
Unallocated [Member] | |||
Allowance for loan losses by segment [Roll Forward] | |||
Beginning Balance | 133 | 0 | |
Charge-offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Provision for loan losses | (133) | 133 | |
Ending balance | 0 | 133 | |
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 133 | |
Ending balance | 0 | 133 | |
Loans Balances [Abstract] | |||
Individually evaluated for impairment | 0 | 0 | |
Collectively evaluated for impairment | 0 | 0 | |
Ending balance | $ 0 | $ 0 | |
[1] | The real estate – mortgage segment included residential 1-4 family, second mortgages and equity lines of credit. | ||
[2] | The consumer segment includes consumer automobile loans. | ||
[3] | Overdrawn accounts are reclassified as loans and included in the Other catergory in the table above. Overdrawn deposit accounts, excluding internal use accounts, totaled $304 thousand and $271 thousand at December 31, 2021 and 2020, respectively. |
Other Real Estate Owned (OREO_2
Other Real Estate Owned (OREO) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021 | Dec. 31, 2020 | ||
Analysis of balance in OREO [Roll Forward] | |||
Balance at beginning of year | $ 0 | $ 0 | |
Transfers to OREO due to foreclosure | 0 | 254 | |
Properties sold | 0 | (254) | |
Balance at end of year | 0 | 0 | |
Expenses applicable to OREOs [Abstract] | |||
Net gain on sales of real estate | 0 | 62 | |
Operating expenses, net of income | [1] | 0 | (20) |
Total Income | $ 0 | $ 42 | |
[1] | Included in other operating income and other operating expense on the Consolidated Statements of Income. |
Premises and Equipment (Details
Premises and Equipment (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | $ 66,825 | $ 67,580 |
Less accumulated depreciation and amortization | 34,691 | 33,967 |
Balance at end of year | 32,134 | 33,613 |
Depreciation expense | 2,091 | 2,145 |
Land [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 7,270 | 7,709 |
Buildings [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 36,418 | 37,530 |
Construction in Progress [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 279 | 239 |
Leasehold Improvements [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 867 | 867 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | $ 21,991 | $ 21,235 |
Leases, Adoption ASU No. 2016-0
Leases, Adoption ASU No. 2016-02 (Details) | 12 Months Ended |
Dec. 31, 2021Lease | |
Assets and Liabilities, Lessee [Abstract] | |
Number of new leases | 0 |
Number of leases extended | 0 |
Leases, Long-term Lease Agreeme
Leases, Long-term Lease Agreements Calssified as Operating Leases (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Information about Leases [Abstract] | ||
Lease liabilities | $ 1,041 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |
Right-of-use asset | $ 1,017 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | |
Weighted average remaining lease term | 3 years 7 months 20 days | |
Weighted average discount rate | 1.73% | |
Lease cost [Abstract] | ||
Operating lease cost | $ 347 | $ 380 |
Total lease cost | 347 | 380 |
Cash paid for amounts included in the measurement of lease liabilities | 351 | 377 |
Lease payments due [Abstract] | ||
Twelve months ending December 31, 2022 | 339 | |
Twelve months ending December 31, 2023 | 248 | |
Twelve months ending December 31, 2024 | 240 | |
Twelve months ending December 31, 2025 | 193 | |
Thereafter | 70 | |
Total undiscounted cash flows | 1,090 | |
Discount | (49) | |
Lease liabilities | 1,041 | |
Rental expense of premises and equipment | $ 470 | $ 415 |
Low-Income Housing Tax Credit_2
Low-Income Housing Tax Credits (Details) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2021USD ($)Fund | Dec. 31, 2020USD ($)Fund | ||
Low-Income Housing Tax Credits [Abstract] | |||
Number of housing equity funds | Fund | 4 | 4 | |
Low-income housing investment | $ 1,900 | $ 2,300 | |
Additional committed capital calls expected | 0 | 18 | |
Amortization expense | 410 | 688 | |
Tax credits and other benefits [Abstract] | |||
Amortization of operating losses | 410 | 688 | |
Tax benefit of operating losses | [1] | 86 | 144 |
Tax credits | 361 | 419 | |
Total tax benefit | $ 447 | $ 563 | |
Effective income tax rate | 21.00% | ||
[1] | Computed using a 21% tax rate. |
Deposits (Details)
Deposits (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)Customer | Dec. 31, 2020USD ($) | |
Deposits [Abstract] | ||
Time deposits threshold | $ 250 | |
Aggregate amount of time deposits in denominations of $250 thousand or more | $ 39,900 | $ 45,400 |
Number of single customer relationships that exceeded deposit limit | Customer | 0 | |
Percentage of total deposits | 5.00% | |
Maturities of time deposits [Abstract] | ||
2022 | $ 99,749 | |
2023 | 39,040 | |
2024 | 15,095 | |
2025 | 7,680 | |
2026 | 7,554 | |
Balance at end of year | $ 169,118 | $ 193,698 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | Jul. 14, 2021 | Dec. 31, 2021 | Dec. 31, 2020 |
Borrowings and FHLB Advances [Abstract] | |||
Available federal funds lines | $ 115,000 | $ 100,000 | |
Available credit with FHLB | 391,300 | 374,700 | |
Short-Term Borrowings [Abstract] | |||
Overnight repurchase agreements | 4,536 | 6,619 | |
Total short-term borrowings | 4,536 | 6,619 | |
Maximum month-end outstanding balance | 12,239 | 9,080 | |
Average outstanding balance during the period | $ 7,293 | $ 21,092 | |
Average interest rate (year-to-date) | 0.10% | 0.19% | |
Average interest rate at end of period | 0.10% | 0.10% | |
Long-Term Borrowings [Abstract] | |||
Federal Reserve Bank borrowings | $ 480 | $ 28,550 | |
Maximum [Member] | |||
Borrowings and FHLB Advances [Abstract] | |||
Overnight repurchase agreements maturity period | 4 days | ||
Minimum [Member] | |||
Borrowings and FHLB Advances [Abstract] | |||
Overnight repurchase agreements maturity period | 1 day | ||
Paycheck Protection Program Liquidity Facility [Member] | |||
Long-Term Borrowings [Abstract] | |||
Federal Reserve Bank borrowings | $ 480 | $ 28,600 | |
Loan maturity date | Apr. 30, 2022 | ||
Interest rate | 0.35% | ||
Citizens Acquisition [Member] | |||
Long-Term Borrowings [Abstract] | |||
Loan maturity date | Apr. 1, 2023 | ||
Long term borrowings, net of issuance costs | $ 1,400 | ||
Interest rate | 2.61% | ||
The Notes [Member] | Subordinated Debt [Member] | |||
Long-Term Borrowings [Abstract] | |||
Loan maturity date | Dec. 31, 2031 | ||
Long term borrowings, net of issuance costs | $ 29,400 | ||
Interest rate | 3.50% | ||
Principal amount | $ 30,000 | ||
Fixed interest rate, period | 5 years | ||
The Notes [Member] | Subordinated Debt [Member] | SOFR [Member] | |||
Long-Term Borrowings [Abstract] | |||
Term of variable rate | 3 months | ||
Debt instrument, variable rate | 2.86% |
Share-Based Compensation (Detai
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Weighted Average Grant Date Fair Value [Abstract] | ||
Stock-based compensation expense | $ 294 | $ 261 |
Restricted Stock [Member] | ||
Shares [Roll Forward] | ||
Nonvested balance at beginning of period (in shares) | 29,576 | |
Issued (in shares) | 18,048 | |
Vested (in shares) | (8,521) | |
Forfeited (in shares) | (668) | |
Nonvested balance at end of period (in shares) | 38,435 | 29,576 |
Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested balance at beginning of period (in dollars per share) | $ 18.46 | |
Issued (in dollars per share) | 22.35 | |
Vested (in dollars per share) | 17.50 | |
Forfeited (in dollars per share) | 18.89 | |
Nonvested balance at end of period (in dollars per share) | $ 20.49 | $ 18.46 |
Weighted-average remaining vesting period for recognition | 1 year 6 months 3 days | |
Fair value of restricted stock granted | $ 403 | $ 298 |
Unrecognized stock-based compensation expense | $ 351 | $ 254 |
2016 Stock Incentive Plan [Member] | ||
Stock option plan activity [Abstract] | ||
Shares available for grant (in shares) | 300,000 | |
ESPP [Member] | ||
Weighted Average Grant Date Fair Value [Abstract] | ||
Discount from market price at date of purchase | 5.00% | |
Total stock purchases under the plan (in shares) | 4,908 | 5,819 |
Shares reserved for issuance (in shares) | 227,543 | |
ESPP [Member] | Minimum [Member] | ||
Weighted Average Grant Date Fair Value [Abstract] | ||
Discount from market price at date of purchase | 0.00% | |
ESPP [Member] | Maximum [Member] | ||
Weighted Average Grant Date Fair Value [Abstract] | ||
Discount from market price at date of purchase | 15.00% |
Stockholders' Equity and Earn_3
Stockholders' Equity and Earnings per Common Share, Amounts Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Available-for-sale securities [Abstract] | ||
Realized gains on sales of securities | $ 0 | $ 264 |
Tax effect | 0 | 55 |
Total | $ 0 | $ 209 |
Stockholders' Equity and Earn_4
Stockholders' Equity and Earnings per Common Share, Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Stockholders Equity Note [Abstract] | ||
Beginning Balance | $ 117,145 | $ 109,756 |
Ending Balance | 120,818 | 117,145 |
Other comprehensive income, pretax [Abstract] | ||
Unrealized holding gains (losses) arising during the period, pretax | (3,030) | 5,514 |
Reclassification adjustment for gains recognized in income, pretax | 0 | (264) |
Total change in accumulated other comprehensive income, net, pretax | (3,030) | 5,250 |
Other Comprehensive Income, Tax Effect [Abstract] | ||
Unrealized holding gains (losses) arising during the period, tax effect | (636) | 1,157 |
Reclassification adjustment for gains recognized in income, tax effect | 0 | (55) |
Total change in accumulated other comprehensive income, net, tax effect | (636) | 1,102 |
Other Comprehensive Income, Net of Tax [Abstract] | ||
Unrealized holding gains (losses) arising during the period, net of tax | (2,394) | 4,357 |
Reclassification adjustment for gains recognized in income, net of tax | 0 | (209) |
Other comprehensive income (loss), net of tax | (2,394) | 4,148 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Stockholders Equity Note [Abstract] | ||
Beginning Balance | 4,069 | (79) |
Net other comprehensive income (loss) | (2,394) | 4,148 |
Ending Balance | 1,675 | 4,069 |
Accumulated Other Comprehensive Income [Member] | ||
Stockholders Equity Note [Abstract] | ||
Beginning Balance | 4,069 | (79) |
Net other comprehensive income (loss) | (2,394) | 4,148 |
Ending Balance | 1,675 | 4,069 |
Other Comprehensive Income, Net of Tax [Abstract] | ||
Other comprehensive income (loss), net of tax | $ (2,394) | $ 4,148 |
Stockholders' Equity and Earn_5
Stockholders' Equity and Earnings per Common Share, Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Computation of earnings per share [Abstract] | ||
Net Income Available to Common Stockholders, Basic | $ 8,440 | $ 5,389 |
Net Income Available to Common Stockholders, Diluted | $ 8,440 | $ 5,389 |
Weighted Average Common Shares, Basic (in shares) | 5,238,318 | 5,216,237 |
Potentially dilutive common shares - employee stock purchase program (in shares) | 0 | 0 |
Weighted Average Common Shares, Diluted (in shares) | 5,238,352 | 5,216,441 |
Earnings Per Share, Basic (in dollars per share) | $ 1.61 | $ 1.03 |
Earnings Per Share, Diluted (in dollars per share) | $ 1.61 | $ 1.03 |
Stock Options [Member] | ||
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Related Party Transactions [Abstract] | ||
Direct or indirect loans to principal shareholders, executive officers or directors, maximum | 10.00% | |
Schedule of Annual activity [Roll Forward] | ||
Balance, beginning of year | $ 4,220 | $ 3,910 |
Additions | 1,822 | 3,531 |
Reductions | (4,153) | (3,221) |
Balance, end of year | 1,889 | 4,220 |
Deposits from related parties | $ 19,800 | $ 17,200 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Components of income tax expense [Abstract] | ||
Current income tax expense | $ 1,021 | $ 1,155 |
Deferred income tax expense (benefit) | 275 | (634) |
Reported tax expense | 1,296 | 521 |
Reconciliation of expected federal income tax expense [Abstract] | ||
Expected tax expense | 2,045 | 1,241 |
Interest expense on tax-exempt assets | 3 | 5 |
Low-income housing tax credit | (361) | (413) |
Tax-exempt interest, net | (195) | (147) |
Bank-owned life insurance | (213) | (176) |
Other, net | 17 | 11 |
Reported tax expense | $ 1,296 | $ 521 |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Effective tax rate | 13.30% | 8.80% |
Deferred tax assets [Abstract] | ||
Allowance for loan losses | $ 2,072 | $ 2,017 |
Nonaccrual loans | 10 | 9 |
Acquisition accounting | 5 | 14 |
Net operating losses | 609 | 643 |
Investments in pass-through entities | 267 | 224 |
Bank owned life insurance benefit | 72 | 68 |
Securities available-for-sale | 0 | 0 |
Stock awards | 116 | 97 |
Deferred compensation | 314 | 397 |
Deferred loan fees and costs | 270 | 443 |
Other | 66 | 55 |
Total | 3,801 | 3,967 |
Deferred tax liabilities [Abstract] | ||
Premises and equipment | 481 | 363 |
Acquisition accounting | 58 | 67 |
Deferred loan fees and costs | 0 | 0 |
Securities available-for-sale | 445 | 1,081 |
Total | 984 | 1,511 |
Net deferred tax assets | $ 2,817 | $ 2,456 |
Commitments and Contingencies_2
Commitments and Contingencies (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)LetterofCredit | Dec. 31, 2020USD ($) | |
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | $ 167,129 | $ 151,586 |
Home Equity Lines of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 71,751 | 66,999 |
Commercial Real Estate, Construction and Development Loans Committed but not Funded [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 42,683 | 20,258 |
Other Lines of Credit (Principally Commercial) [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 52,695 | 64,329 |
Letters of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | $ 3,617 | $ 4,841 |
Standby Letters of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Typical expiration period | 1 year | |
Standby Letter of Credit Expires in Year 2023 [Member] | ||
Commitments to extend credit [Abstract] | ||
Number of letters with expiration period greater than one year | LetterofCredit | 4 | |
Expiration date of letters with expiration period greater than one year | Dec. 31, 2023 |
Fair Value Measurements, Recurr
Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Securities available-for-sale | $ 234,321 | $ 186,409 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 833,661 | 826,759 |
Loans held for sale | 3,287 | 14,413 |
U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 14,904 | 7,043 |
Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 38,558 | 36,696 |
Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 65,803 | 45,995 |
Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 89,058 | 73,501 |
Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 2,413 | 4,743 |
Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 234,321 | 186,409 |
Derivatives [Abstract] | ||
Total assets | 234,545 | |
Derivative [Abstract] | ||
Total liabilities | 181 | |
Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 14,904 | 7,043 |
Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 38,558 | 36,696 |
Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 65,803 | 45,995 |
Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 89,058 | 73,501 |
Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 2,413 | 4,743 |
Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 23,585 | 18,431 |
Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 87 | |
Loans held for sale | 3,287 | 14,413 |
Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 87 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Loans held for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivatives [Abstract] | ||
Total assets | 0 | |
Derivative [Abstract] | ||
Total liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Loans held for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 234,321 | 186,409 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Loans held for sale | 3,287 | 14,413 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 234,321 | 186,409 |
Derivatives [Abstract] | ||
Total assets | 234,545 | |
Derivative [Abstract] | ||
Total liabilities | 181 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 14,904 | 7,043 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 38,558 | 36,696 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 65,803 | 45,995 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 89,058 | 73,501 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 2,413 | 4,743 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 23,585 | 18,431 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Loans held for sale | 3,287 | 14,413 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 834,693 | 825,963 |
Loans held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivatives [Abstract] | ||
Total assets | 0 | |
Derivative [Abstract] | ||
Total liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 87 | |
Loans held for sale | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | $ 87 |
Fair Value Measurements, Quanti
Fair Value Measurements, Quantitative Information (Details) - Commercial Loan [Member] - Market Comparables [Member] $ in Thousands | Dec. 31, 2021USD ($) |
Selling Costs [Member] | Minimum [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Measurement Input | 0 |
Selling Costs [Member] | Maximum [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Measurement Input | 0.0800 |
Selling Costs [Member] | Weighted Average [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Measurement Input | 0.0700 |
Fair Value, Nonrecurring [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Fair Value | $ 87 |
Fair Value Measurements, Estima
Fair Value Measurements, Estimated Fair Value and Related Carrying or Notional Amounts (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 187,922 | $ 120,437 |
Securities available-for-sale, at fair value | 234,321 | 186,409 |
Restricted securities | 1,034 | 1,367 |
Loans held for sale | 3,287 | 14,413 |
Loans, net of allowances for loan losses | 833,661 | 826,759 |
Derivatives [Abstract] | ||
Bank owned life insurance | 28,168 | 28,386 |
Accrued interest receivable | 3,339 | 3,613 |
Liabilities [Abstract] | ||
Deposits | 1,177,099 | 1,067,236 |
Overnight repurchase agreements | 4,536 | 6,619 |
Federal Reserve Bank borrowings | 480 | |
Federal Reserve Bank borrowings | 28,550 | |
Long term borrowings | 29,407 | 1,350 |
Derivative [Abstract] | ||
Accrued interest payable | 693 | 384 |
Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 43 | |
Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 181 | |
Derivative [Abstract] | ||
Derivative liabilities | 181 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 187,922 | 120,437 |
Securities available-for-sale, at fair value | 0 | 0 |
Restricted securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowances for loan losses | 0 | 0 |
Derivatives [Abstract] | ||
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Overnight repurchase agreements | 0 | 0 |
Federal Reserve Bank borrowings | 0 | |
Federal Reserve Bank borrowings | 0 | |
Long term borrowings | 0 | 0 |
Derivative [Abstract] | ||
Accrued interest payable | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Derivative [Abstract] | ||
Derivative liabilities | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 234,321 | 186,409 |
Restricted securities | 1,034 | 1,367 |
Loans held for sale | 3,287 | 14,413 |
Loans, net of allowances for loan losses | 0 | 0 |
Derivatives [Abstract] | ||
Bank owned life insurance | 28,168 | 28,386 |
Accrued interest receivable | 3,339 | 3,613 |
Liabilities [Abstract] | ||
Deposits | 1,179,631 | 1,070,236 |
Overnight repurchase agreements | 4,536 | 6,619 |
Federal Reserve Bank borrowings | 480 | |
Federal Reserve Bank borrowings | 28,550 | |
Long term borrowings | 29,657 | 1,350 |
Derivative [Abstract] | ||
Accrued interest payable | 693 | 384 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 43 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 181 | |
Derivative [Abstract] | ||
Derivative liabilities | 181 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 0 | 0 |
Restricted securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowances for loan losses | 834,693 | 825,963 |
Derivatives [Abstract] | ||
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Overnight repurchase agreements | 0 | 0 |
Federal Reserve Bank borrowings | 0 | |
Federal Reserve Bank borrowings | 0 | |
Long term borrowings | 0 | 0 |
Derivative [Abstract] | ||
Accrued interest payable | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Derivative [Abstract] | ||
Derivative liabilities | $ 0 |
Regulatory Matters (Details)
Regulatory Matters (Details) $ in Thousands | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) |
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Regulatory Minimums | 0.04500 | 0.04500 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Ratio | 0.1257 | 0.1169 |
Tier 1 Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Tier 1 Capital to Risk-Weighted Assets, Regulatory Minimums | 0.06000 | 0.06000 |
Tier 1 Capital to Risk-Weighted Assets, Ratio | 0.1257 | 0.1169 |
Tier 1 Capital to Average Assets, Ratio [Abstract] | ||
Tier 1 Leverage to Average Assets, Regulatory Minimums | 0.04000 | 0.04000 |
Tier 1 Leverage to Average Assets, Ratio | 0.0909 | 0.0856 |
Total Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Total Capital to Risk-Weighted Assets, Regulatory Minimums | 0.08000 | 0.08000 |
Total Capital to Risk-Weighted Assets, Ratio | 0.1361 | 0.1277 |
Capital Conservation Buffer, Ratio [Abstract] | ||
Capital Conservation Buffer, Regulatory Minimums | 0.02500 | 0.02500 |
Capital Conservation Buffer, Ratio | 0.0561 | 0.0477 |
Risk Weighted Assets | $ 952,218 | $ 890,091 |
Amount available for dividend distribution without prior approval from regulatory agency | $ 8,300 |
Segment Reporting (Details)
Segment Reporting (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021USD ($)AreaSegment | Dec. 31, 2020USD ($) | |
Revenues [Abstract] | ||
Interest and dividend income | $ 42,252 | $ 40,009 |
Total operating income | 57,137 | 54,707 |
Expenses [Abstract] | ||
Interest expense | 3,458 | 5,292 |
Provision for loan losses | 794 | 1,000 |
Salaries and employee benefits | 25,361 | 25,512 |
Other expenses | 17,788 | 16,993 |
Total operating expenses | 47,401 | 48,797 |
Income before income taxes | 9,736 | 5,910 |
Income tax expense (benefit) | 1,296 | 521 |
Net income | 8,440 | 5,389 |
Capital expenditures | 1,514 | 924 |
Total assets | $ 1,338,155 | 1,226,191 |
Number of principal business segments | Segment | 3 | |
Number of geographical areas in which an entity operates | Area | 1 | |
Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | $ 4,198 | 3,877 |
Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 10,687 | 10,821 |
Operating Segments [Member] | Bank [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | 42,226 | 39,966 |
Total operating income | 51,907 | 49,865 |
Expenses [Abstract] | ||
Interest expense | 2,909 | 5,237 |
Provision for loan losses | 794 | 1,000 |
Salaries and employee benefits | 21,682 | 21,652 |
Other expenses | 16,412 | 15,840 |
Total operating expenses | 41,797 | 43,729 |
Income before income taxes | 10,110 | 6,136 |
Income tax expense (benefit) | 1,372 | 565 |
Net income | 8,738 | 5,571 |
Capital expenditures | 1,473 | 901 |
Total assets | 1,330,337 | 1,218,766 |
Operating Segments [Member] | Bank [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 0 | 0 |
Operating Segments [Member] | Bank [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 9,681 | 9,899 |
Operating Segments [Member] | Trust [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | 26 | 43 |
Total operating income | 5,291 | 4,903 |
Expenses [Abstract] | ||
Interest expense | 0 | 0 |
Provision for loan losses | 0 | 0 |
Salaries and employee benefits | 3,012 | 3,191 |
Other expenses | 1,131 | 1,078 |
Total operating expenses | 4,143 | 4,269 |
Income before income taxes | 1,148 | 634 |
Income tax expense (benefit) | 243 | 136 |
Net income | 905 | 498 |
Capital expenditures | 41 | 23 |
Total assets | 7,227 | 6,957 |
Operating Segments [Member] | Trust [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 4,198 | 3,877 |
Operating Segments [Member] | Trust [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 1,067 | 983 |
Operating Segments [Member] | Parent [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | 9,643 | 6,069 |
Total operating income | 9,844 | 6,269 |
Expenses [Abstract] | ||
Interest expense | 549 | 55 |
Provision for loan losses | 0 | 0 |
Salaries and employee benefits | 667 | 669 |
Other expenses | 507 | 336 |
Total operating expenses | 1,723 | 1,060 |
Income before income taxes | 8,121 | 5,209 |
Income tax expense (benefit) | (319) | (180) |
Net income | 8,440 | 5,389 |
Capital expenditures | 0 | 0 |
Total assets | 150,943 | 118,558 |
Operating Segments [Member] | Parent [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 0 | 0 |
Operating Segments [Member] | Parent [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 201 | 200 |
Eliminations [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | (9,643) | (6,069) |
Total operating income | (9,905) | (6,330) |
Expenses [Abstract] | ||
Interest expense | 0 | 0 |
Provision for loan losses | 0 | 0 |
Salaries and employee benefits | 0 | 0 |
Other expenses | (262) | (261) |
Total operating expenses | (262) | (261) |
Income before income taxes | (9,643) | (6,069) |
Income tax expense (benefit) | 0 | 0 |
Net income | (9,643) | (6,069) |
Capital expenditures | 0 | 0 |
Total assets | (150,352) | (118,090) |
Eliminations [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 0 | 0 |
Eliminations [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | $ (262) | $ (261) |
Condensed Financial Statement_3
Condensed Financial Statements of Parent Company, Balance Sheets (Details) - USD ($) $ in Thousands | Dec. 31, 2021 | Dec. 31, 2020 |
Assets [Abstract] | ||
Cash and cash equivalents | $ 187,922 | $ 120,437 |
Securities available-for-sale | 234,321 | 186,409 |
Other assets | 14,832 | 12,838 |
Total assets | 1,338,155 | 1,226,191 |
Liabilities and Stockholders' Equity [Abstract] | ||
Long term borrowings | 29,407 | 1,350 |
Other liability | 5,815 | 5,291 |
Common stock | 26,006 | 25,972 |
Additional paid-in capital | 21,458 | 21,245 |
Retained earnings | 71,679 | 65,859 |
Accumulated other comprehensive income (loss) | 1,675 | 4,069 |
Total liabilities and stockholders' equity | 1,338,155 | 1,226,191 |
Parent Company [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 20,012 | 1,203 |
Securities available-for-sale | 0 | 0 |
Investment in common stock of subsidiaries | 130,123 | 116,848 |
Other assets | 808 | 507 |
Total assets | 150,943 | 118,558 |
Liabilities and Stockholders' Equity [Abstract] | ||
Long term borrowings | 29,407 | 1,350 |
Other liability | 718 | 63 |
Common stock | 26,006 | 25,972 |
Additional paid-in capital | 21,458 | 21,245 |
Retained earnings | 71,679 | 65,859 |
Accumulated other comprehensive income (loss) | 1,675 | 4,069 |
Total liabilities and stockholders' equity | $ 150,943 | $ 118,558 |
Condensed Financial Statement_4
Condensed Financial Statements of Parent Company, Statements of Income (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Income [Abstract] | ||
Other income | $ 70 | $ 134 |
Total interest and dividend income | 42,252 | 40,009 |
Expenses [Abstract] | ||
Salary and benefits | 25,361 | 25,512 |
Legal expenses | 2,521 | 2,196 |
Other operating expenses | 3,629 | 3,369 |
Total noninterest expense | 43,149 | 42,505 |
Income before income taxes | 9,736 | 5,910 |
Income tax benefit | 1,296 | 521 |
Net income | 8,440 | 5,389 |
Parent Company [Member] | ||
Income [Abstract] | ||
Dividends from subsidiary | 3,975 | 3,425 |
Other income | 201 | 200 |
Total interest and dividend income | 4,176 | 3,625 |
Expenses [Abstract] | ||
Salary and benefits | 667 | 669 |
Subordinated debt | 549 | 0 |
Legal expenses | 274 | 108 |
Service fees | 146 | 135 |
Other operating expenses | 87 | 148 |
Total noninterest expense | 1,723 | 1,060 |
Income before income taxes | 2,453 | 2,565 |
Income tax benefit | (319) | (180) |
Net income before equity in undistributed net income of subsidiaries | 2,772 | 2,745 |
Equity in undistributed net income of subsidiaries | 5,668 | 2,644 |
Net income | $ 8,440 | $ 5,389 |
Condensed Financial Statement_5
Condensed Financial Statements of Parent Company, Statements of Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2021 | Dec. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 8,440 | $ 5,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of subordinated debt issuance costs | 60 | 0 |
Stock compensation expense | 294 | 261 |
(Decrease) increase in other assets | (748) | (966) |
Net cash provided by (used in) operating activities | 23,176 | (8,635) |
Cash flows from investing activities: | ||
Net cash used in investing activities | (60,731) | (122,241) |
Cash flows from financing activities: | ||
Repurchase and retirement of common stock | (150) | 0 |
Cash dividends paid on common stock | (2,620) | (2,505) |
Net cash provided by financing activities | 105,040 | 161,448 |
Net increase in cash and cash equivalents | 67,485 | 30,572 |
Cash and cash equivalents at beginning of period | 120,437 | 89,865 |
Cash and cash equivalents at end of period | 187,922 | 120,437 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 8,440 | 5,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed net income of subsidiaries | (5,668) | (2,644) |
Amortization of subordinated debt issuance costs | 60 | 0 |
Stock compensation expense | 32 | 55 |
(Decrease) increase in other assets | (40) | 8 |
Increase in other liabilities | 655 | 5 |
Net cash provided by (used in) operating activities | 3,479 | 2,813 |
Cash flows from investing activities: | ||
Cash distributed to subsidiary | (10,000) | 0 |
Net cash used in investing activities | (10,000) | 0 |
Cash flows from financing activities: | ||
Proceeds from sale of stock | 103 | 96 |
Proceeds from borrowings | 29,347 | 0 |
Repayment of borrowings | (1,350) | (600) |
Repurchase and retirement of common stock | (150) | 0 |
Cash dividends paid on common stock | (2,620) | (2,505) |
Net cash provided by financing activities | 25,330 | (3,009) |
Net increase in cash and cash equivalents | 18,809 | (196) |
Cash and cash equivalents at beginning of period | 1,203 | 1,399 |
Cash and cash equivalents at end of period | $ 20,012 | $ 1,203 |