Document And Entity Information
Document And Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Feb. 28, 2020 | Jun. 30, 2019 | |
Document Information Line Items | |||
Entity Registrant Name | SB FINANCIAL GROUP, INC. | ||
Document Type | 10-K | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Common Stock, Shares Outstanding | 7,810,984 | ||
Entity Public Float | $ 106,200,000 | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000767405 | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Accelerated Filer | ||
Entity Well-known Seasoned Issuer | No | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Incorporation, State or Country Code | OH | ||
Entity Interactive Data Current | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 27,064 | $ 48,363 |
Available-for-sale securities | 100,948 | 90,969 |
Loans held for sale | 7,258 | 4,445 |
Loans, net of unearned income | 825,510 | 771,883 |
Allowance for loan losses | (8,755) | (8,167) |
Premises and equipment, net | 23,385 | 22,084 |
Federal Reserve and Federal Home Loan Bank Stock, at cost | 4,648 | 4,123 |
Foreclosed assets held for sale, net | 305 | 131 |
Interest receivable | 3,106 | 2,822 |
Goodwill and other intangibles | 17,832 | 16,401 |
Cash value of life insurance | 17,221 | 16,834 |
Mortgage servicing rights | 11,017 | 11,365 |
Other assets | 9,038 | 5,575 |
Total assets | 1,038,577 | 986,828 |
Deposits | ||
Non interest bearing demand | 158,357 | 144,592 |
Interest bearing demand | 131,084 | 130,628 |
Savings | 119,359 | 104,444 |
Money market | 173,666 | 181,426 |
Time deposits | 257,753 | 241,462 |
Total deposits | 840,219 | 802,552 |
Repurchase agreements | 12,945 | 15,184 |
Federal Home Loan Bank advances | 16,000 | 16,000 |
Trust preferred securities | 10,310 | 10,310 |
Interest payable | 1,191 | 909 |
Other liabilities | 21,818 | 11,438 |
Total liabilities | 902,483 | 856,393 |
Commitments & Contingent Liabilities | ||
Shareholders’ Equity | ||
Preferred stock, no par value; authorized 200,000 shares; 2019 - 0 shares outstanding, 2018 - 14,995 shares outstanding | 13,979 | |
Common stock, no par value; authorized 10,000,000 shares; 2019 - 8,180,712 shares issued, 2018 - 6,694,598 shares issued | 54,463 | 40,485 |
Additional paid-in capital | 15,023 | 15,226 |
Retained earnings | 72,704 | 64,012 |
Accumulated other comprehensive income (loss) | 659 | (552) |
Treasury stock, at cost; (2019 - 417,785 common shares, 2018 - 191,348 common shares) | (6,755) | (2,715) |
Total shareholders’ equity | 136,094 | 130,435 |
Total liabilities and shareholders’ equity | $ 1,038,577 | $ 986,828 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parentheticals) - $ / shares shares in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Preferred stock, par value (in Dollars per share) | ||
Preferred stock, shares authorized | 200,000 | 200,000 |
Preferred stock, shares outstanding | 0 | 14,995 |
Common stock, par value (in Dollars per share) | ||
Common stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, shares issued | 8,180,712 | 6,694,598 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Loans | ||
Taxable | $ 40,529 | $ 36,268 |
Tax exempt | 300 | 154 |
Securities | ||
Taxable | 3,226 | 2,618 |
Tax exempt | 345 | 439 |
Total interest income | 44,400 | 39,479 |
Interest Expense | ||
Deposits | 8,660 | 5,314 |
Repurchase agreements & other | 82 | 37 |
Federal Home Loan Bank advance expense | 402 | 460 |
Trust preferred securities expense | 430 | 401 |
Total interest expense | 9,574 | 6,212 |
Net Interest Income | 34,826 | 33,267 |
Provision for loan losses | 800 | 600 |
Net interest income after provision for loan losses | 34,026 | 32,667 |
Noninterest Income | ||
Wealth management fees | 3,093 | 2,871 |
Customer service fees | 2,761 | 2,670 |
Gain on sale of mortgage loans & OMSR | 8,413 | 6,870 |
Mortgage loan servicing fees, net | (397) | 1,296 |
Gain on sale of non-mortgage loans | 1,255 | 1,230 |
Title insurance income | 1,120 | |
Net gain on sale of securities | 206 | 70 |
Gain (loss) on sale/disposal of assets | (5) | 35 |
Other income | 1,570 | 1,582 |
Total noninterest income | 18,016 | 16,624 |
Noninterest Expense | ||
Salaries and employee benefits | 22,064 | 20,620 |
Net occupancy expense | 2,603 | 2,397 |
Equipment expense | 2,828 | 2,889 |
Data processing fees | 1,973 | 1,811 |
Professional fees | 2,476 | 1,848 |
Marketing expense | 895 | 884 |
Telephone and communications | 466 | 495 |
Postage and delivery expense | 340 | 286 |
State, local and other taxes | 1,092 | 719 |
Employee expense | 795 | 912 |
Other expense | 1,878 | 1,986 |
Total noninterest expense | 37,410 | 34,847 |
Income before income tax | 14,632 | 14,444 |
Provision for income taxes | 2,659 | 2,806 |
Net Income | 11,973 | 11,638 |
Preferred share dividends | 950 | 975 |
Net income available to common shareholders | $ 11,023 | $ 10,663 |
Basic earnings per common share (in Dollars per share) | $ 1.71 | $ 1.72 |
Diluted earnings per common share (in Dollars per share) | $ 1.51 | $ 1.51 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Net income | $ 11,973 | $ 11,638 |
Available for sale investment securities: | ||
Gross unrealized holding gain (loss) arising in the period | 1,327 | (590) |
Related tax (expense) benefit | (279) | 124 |
Less: reclassification adjustment for gain realized in income | 206 | 70 |
Related tax expense | (43) | (15) |
Net effect on other comprehensive income | 1,211 | (411) |
Total comprehensive income | $ 13,184 | $ 11,227 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands | Preferred Stock [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | AOCI Attributable to Parent [Member] | Treasury Stock [Member] | Total |
Balance at Dec. 31, 2017 | $ 13,983 | $ 12,569 | $ 15,405 | $ 55,439 | $ (141) | $ (3,255) | $ 94,000 |
Net income | 11,638 | 11,638 | |||||
Other comprehensive income (loss) | (411) | (411) | |||||
Common stock issuance | 27,912 | 27,912 | |||||
Conversion of preferred to common | (4) | 4 | |||||
Dividends on common stock | (2,090) | (2,090) | |||||
Dividends on preferred stock | (975) | (975) | |||||
Restricted stock vesting | (257) | 257 | |||||
Stock options exercised | (200) | 392 | 192 | ||||
Repurchased stock | (109) | (109) | |||||
Stock based compensation expense | 278 | 278 | |||||
Balance at Dec. 31, 2018 | 13,979 | 40,485 | 15,226 | 64,012 | (552) | (2,715) | 130,435 |
Net income | 11,973 | 11,973 | |||||
Other comprehensive income (loss) | 1,211 | 1,211 | |||||
Conversion of preferred to common | $ (13,979) | 13,978 | (1) | ||||
Stock reissue for purchase of Peak Title | 22 | 117 | 139 | ||||
Dividends on common stock | (2,331) | (2,331) | |||||
Dividends on preferred stock | (950) | (950) | |||||
Restricted stock vesting | (321) | 321 | |||||
Stock options exercised | (321) | 572 | 251 | ||||
Repurchased stock | (5,050) | (5,050) | |||||
Stock based compensation expense | 417 | 417 | |||||
Balance at Dec. 31, 2019 | $ 54,463 | $ 15,023 | $ 72,704 | $ 659 | $ (6,755) | $ 136,094 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Dividends common stock, per share amount | $ 0.36 | $ 0.32 |
Dividends preferred stock, per share amount | $ 0.65 | $ 0.65 |
Common stock issuance, shares (in Shares) | 1,666,666 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Operating Activities | ||
Net Income | $ 11,973 | $ 11,638 |
Items not requiring (providing) cash | ||
Depreciation and amortization | 1,879 | 1,693 |
Provision for loan losses | 800 | 600 |
Expense of share-based compensation plan | 417 | 278 |
Amortization of premiums and discounts on securities | 314 | 355 |
Amortization of intangible assets | 8 | 10 |
Amortization of originated mortgage servicing rights | 2,126 | 1,230 |
Impairment of mortgage servicing rights | 1,094 | 61 |
Deferred income taxes | (279) | 324 |
Proceeds from sale of loans held for sale | 368,154 | 275,604 |
Originations of loans held for sale | (364,472) | (271,067) |
Gain from sale of loans | (9,668) | (8,100) |
Loss (gain) on sales of assets | 5 | (35) |
Net gains on sales of securities | (206) | (70) |
Changes in | ||
Interest receivable | (284) | (997) |
Other assets | (3,680) | (562) |
Interest payable & other liabilities | 10,648 | 2,888 |
Net cash provided by operating activities | 18,829 | 13,850 |
Investing Activities | ||
Purchases of available-for-sale securities | (38,455) | (29,281) |
Proceeds from maturities of available-for-sale securities | 22,527 | 18,042 |
Proceeds from sales of available-for-sale securities | 7,375 | 2,185 |
Proceeds from sales of portfolio loans | 11,265 | |
Net change in loans | (65,504) | (76,503) |
Purchase of premises, equipment | (2,043) | (1,999) |
Proceeds from sales of premises, equipment | 24 | 134 |
Purchase of bank owned life insurance | (50) | |
Purchase of Federal Reserve and Federal Home Loan Bank Stock | (525) | (375) |
Proceeds from sale of foreclosed assets | 372 | 210 |
Acquisition, net of cash acquired | (2,600) | |
Net cash used in investing activities | (67,614) | (87,587) |
Financing Activities | ||
Net increase in demand deposits, money market, interest checking & savings accounts | 21,376 | 49,308 |
Net increase in certificates of deposit | 16,291 | 23,644 |
Net increase (decrease) in securities sold under agreements to repurchase | (2,239) | 102 |
Proceeds from Federal Home Loan Bank advances | 13,000 | |
Repayment of Federal Home Loan Bank advances | (15,500) | |
Net proceeds from share-based compensation plans | 251 | 192 |
Stock repurchase plan | (5,050) | (109) |
Issuance of common shares | 139 | 27,912 |
Conversion of preferred stock | (1) | |
Dividends on common shares | (2,331) | (2,090) |
Dividends on preferred shares | (950) | (975) |
Net cash provided by financing activities | 27,486 | 95,484 |
Increase (decrease) in cash and cash equivalents | (21,299) | 21,747 |
Cash and cash equivalents, beginning of year | 48,363 | 26,616 |
Cash and cash equivalents, end of year | 27,064 | 48,363 |
Supplemental cash flow information | ||
Interest paid | 9,292 | 5,895 |
Income taxes paid | 3,084 | 1,870 |
Fair value of assets acquired - premises and equipment | 1,161 | |
Supplemental non-cash disclosure | ||
Initial recognition of right-of-use lease assets | 293 | |
Transfer of loans to loans held for sale | 11,114 | |
Transfer of loans to foreclosed assets | $ 551 | 201 |
Transfer of loans to premises and equipment | $ 670 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization, Consolidation and Presentation of Financial Statements Disclosure [Text Block] | Note 1: Organization and Summary of Significant Accounting Policies Organization and Nature of Operations SB Financial Group, Inc. (the “Company”) is a financial holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries, The State Bank and Trust Company (“State Bank”), SBFG Title, LLC dba Peak Title Agency (“SBFG Title”), SB Captive, Inc. (“SB Captive”), RFCBC, Inc. (“RFCBC”), Rurbanc Data Services, Inc. dba RDSI Banking Systems (“RDSI”), and Rurban Statutory Trust II (“RST II”). State Bank owns all the outstanding stock of Rurban Mortgage Company (“RMC”), and State Bank Insurance, LLC (“SBI”). The Company is primarily engaged in providing a full range of banking and wealth management services to individual and corporate customers primarily located in Ohio, Indiana, and Michigan. The Company is subject to competition from other financial institutions, and regulated by certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, State Bank, SBFG Title, SB Captive, RFCBC, RDSI, RMC, RST II, and SBI. All significant intercompany accounts and transactions were eliminated in consolidation. Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the 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 relate to the determination of the allowance for loan losses, loan servicing rights, and fair value of financial instruments. Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2019 and 2018, cash equivalents consisted primarily of interest-bearing and noninterest bearing demand deposit balances held by correspondent banks. At December 31, 2019, the Company’s correspondent cash accounts exceeded federally insured limits by $2.9 million. Additionally, the Company had approximately $9.5 million of cash held by the FRB and the FHLB, which is not federally insured. Securities Available-for-sale securities, which include any debt security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses are recorded, net of related income tax effects, in other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. For debt securities with fair value below carrying value when the Company does not intend to sell the debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of the debt security in earnings and the remaining portion in other comprehensive income. Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income. The Company utilizes third-party hedges to minimize the impact of interest rate risk fluctuations, and their impact is realized through noninterest income. Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, loans are placed on nonaccrual status not later than 90 days past due. Past due status is based on the contractual terms of the loan. All interest accrued, but not collected for loans that are placed on nonaccrual 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. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. 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 new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration each of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, agricultural, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. When a loan moves to nonaccrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, individual consumer and residential loans are not separately identified for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method for buildings and equipment over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases. Long-lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. Federal Reserve Bank and Federal Home Loan Bank Stock FRB and FHLB stock are required investments for institutions that are members of the FRB and FHLB systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs 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 the carrying amount or the fair value less cost to sell. Revenue and expenses from operations related to foreclosed assets and changes in the valuation allowance are included in net income or expense from foreclosed assets. Goodwill Goodwill is tested for impairment annually. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Core Deposits and Other Intangibles Intangible assets are being amortized on a straight-line basis over weighted-average periods ranging from one to fifteen years. Such assets are periodically evaluated as to the recoverability of their carrying value. Purchased software is being amortized using the straight-line method over periods ranging from one to three years. Derivatives The Company utilizes derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into interest rate lock commitments (“IRLCs”) with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with the changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while the derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance, (Accounting Standards Codification “ASC” 806-50), servicing rights from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost of service, the discount rate, the custodial earning rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. Each class of separately recognized servicing assets subsequently measured using the amortization method is evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with “Mortgage loan servicing fees, net” in the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. Share-Based Employee Compensation Plan At December 31, 2019 and 2018, the Company had a share-based employee compensation plan (see Note 17 to the Consolidated Financial Statements). 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 – 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 the maturity or the ability to unilaterally cause the holder to return specific assets. Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740). The 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 differences between the book and tax bases 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 reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions 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 term “upon examination” also includes 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. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. With a few exceptions, the Company is no longer subject to U.S. Federal, State and Local examinations by tax authorities for the years before 2016. As of December 31, 2019, the Company had no uncertain income tax positions. The Company uses the specific identification (or portfolio) method for reclassifying material stranded tax effects in Accumulated Other Consolidated Income (“AOCI”) to earnings. Treasury Shares Treasury stock is stated at cost. Cost is determined by the weighted-average cost method. Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential common shares and convertible preferred 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 solely to outstanding stock options which are determined using the treasury stock method and convertible preferred shares which are determined using the converted method. Treasury stock shares are not deemed outstanding for earnings per share calculations. Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, and unrealized and realized gains and losses in derivative financial instruments that qualify for hedge accounting. AOCI consists solely of the cumulative unrealized gains and losses on available-for-sale securities net of income tax. Revenue Recognition The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or services are provided and collectability is reasonably assured. The Company’s principal source of revenue is interest income from loans and leases and investment securities. The Company also earns noninterest income from various banking and financial services offered through State Bank. Interest income is the largest source of revenue for the Company which is primarily recognized on an accrual basis. Noninterest income is earned through a variety of financial and transaction services provided to corporate and consumer clients such as trust and wealth advisory, deposit account, debit card, mortgage banking and insurance. New and applicable accounting pronouncements: ASU No. 2018-07: Compensation – Stock Compensation (Topic 718) This ASU expands the scope of Topic 718, to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity-Based Payments to Non-Employees. The amendments in this ASU became effective for periods beginning after December 15, 2018. At this time, the Company does not have any share-based payments to nonemployees. ASU No. 2017-12: Derivatives and Hedging (Topic 815) This ASU improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The ASU also makes targeted improvements to simplify the application of the hedge accounting guidance. The amendments in this ASU became effective for fiscal years after December 15, 2018 and the Company adopted these amendments. The impact of these amendments was immaterial to the Company’s financial statements. ASU No. 2016-02: Leases (Topic 842) FASB issued ASU 2016-02, Leases. The new standard establishes a right-of-use asset model that requires a lessee to record an asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As the Company owns most of its branch locations, the impact of adoption of this ASU resulted in a $0.2 million right-of-use asset and a corresponding lease obligation liability of $0.2 million. The right-of-use asset is included in other assets and the lease obligation liability is included in other liabilities in the Company’s December 31, 2019 consolidated balance sheet. The Company has given consideration to the materiality of their leases and has determined that the additional required disclosures for leases is immaterial to the consolidated financial statements. Accounting standards not yet adopted: ASU No. 2018-13: Fair Value Measurement - Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) The updated guidance improves the disclosure requirements for fair value measurements. The ASU removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU modifies certain disclosures required by Topic 820 related to disclosure of transfers into and out of Level 3 of the fair value hierarchy; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly for investments in certain entities that calculate net asset value; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted- average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update become effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is not expected to have a material impact. ASU No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2016-13: Financial Instruments – Credit Losses (Topic 326) This ASU, which is commonly known as CECL, replaces the current GAAP incurred impairment methodology regarding credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. In December 2018, the OCC, the Federal Reserve Board, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. On November 15, 2019, the FASB delayed the effective date for certain small public companies and other private companies. As the Company is currently a smaller reporting company, the amendment will delay the effective date of ASU No. 2016-13 to the fiscal year beginning after December 15, 2022. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. The Company implemented a process to track required data by utilizing accounting software in preparation for compliance. We anticipate being fully prepared for implementation by January 1, 2023. Reclassifications: Certain reclassifications have been made to prior period financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | Note 2: Earnings Per Share Earnings per common share (“EPS”) is computed using the two-class method. Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the applicable period, excluding participating securities. Participating securities include non-vested restricted stock awards. Non-vested restricted stock awards are considered participating securities to the extent the holders of these securities receive non-forfeitable dividends at the same rate as holders of common shares. Diluted earnings per common share is computed using the weighted-average number of shares determined for the basic earnings per common share plus the convertible impact of preferred shares and the dilutive effect of stock compensation using the treasury stock method. EPS for the years ended December 31, 2019 and 2018 is computed as follows: Twelve Months Ended Dec. 31, ($ and outstanding shares in thousands - except per share data) 2019 2018 Distributed earnings allocated to common shares $ 2,331 $ 2,090 Undistributed earnings allocated to common shares 8,675 8,558 Net earnings allocated to common shares 11,006 10,648 Net earnings allocated to participating securities 17 15 Dividends on convertible preferred shares 950 975 Net Income allocated to common shares and participating securities $ 11,973 $ 11,638 Weighted average shares outstanding for basic earnings per share 6,456 6,198 Dilutive effect of stock compensation 46 61 Dilutive effect of preferred convertible shares 1,433 1,460 Weighted average shares outstanding for diluted earnings per share 7,935 7,719 Basic earnings per common share $ 1.71 $ 1.72 Diluted earnings per common share $ 1.51 $ 1.51 There were no anti-dilutive shares in 2019 or 2018. |
Available-for-Sale Securities
Available-for-Sale Securities | 12 Months Ended |
Dec. 31, 2019 | |
Securities [Abstract] | |
Available-for-Sale Securities | Note 3: Available-for-Sale Securities The amortized cost and appropriate fair values, together with gross unrealized gains and losses, of available-for-sale securities are as follows: Amortized Gross Unrealized Gross Unrealized ($ in thousands) Cost Gains Losses Fair Value December 31, 2019: U.S. Treasury and Government agencies $ 12,023 $ 181 $ (2 ) $ 12,202 Mortgage-backed securities 77,892 492 (202 ) 78,182 State and political subdivisions 10,199 366 (1 ) 10,564 Totals $ 100,114 $ 1,039 $ (205 ) $ 100,948 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value December 31, 2018: U.S. Treasury and Government agencies $ 18,597 $ 187 $ (114 ) $ 18,670 Mortgage-backed securities 61,868 114 (1,039 ) 60,943 State and political subdivisions 11,203 180 (27 ) 11,356 Totals $ 91,668 $ 481 $ (1,180 ) $ 90,969 The amortized cost and fair value of securities available-for-sale at December 31, 2019, by contractual maturity, are shown below. Expected maturities differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. Amortized Fair ($ in thousands) Cost Value Within one year $ 3,566 $ 3,571 Due after one year through five years 7,209 7,340 Due after five years through ten years 5,783 5,954 Due after ten years 5,664 5,901 22,222 22,766 Mortgage-backed securities 77,892 78,182 Totals $ 100,114 $ 100,948 The fair value of securities pledged as collateral, to secure public deposits and for other purposes, was $34.8 million at December 31, 2019, and $30.7 million at December 31, 2018. Securities delivered for repurchase agreements (not included above) were $19.5 million at December 31, 2019 and $17.9 million at December 31, 2018. Gross gains of $0.2 million was a reclassification from accumulated other comprehensive income and is included in the net gain on sales of securities for 2019. Gross gains of $0.07 million was a reclassification from accumulated other comprehensive income and is included in the net gain on sales of securities for 2018. The related tax expense for net security gains for 2019 was $0.04 million and for 2018 was $0.01 million and was a reclassification from accumulated other comprehensive income and is included in the income tax expense line in the income statement. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at December 31, 2019 and 2018, was $38.8 million and $59.0 million, respectively, which was approximately 38 percent and 65 percent, respectively, of the Company’s available-for-sale investment portfolio. Based on evaluation of available evidence, including recent changes in market interest rates, credit rating information and information obtained from regulatory filings, management believes the declines in fair value for these securities are temporary. Should the impairment of any of these securities become other than temporary, the cost basis of the investment will be reduced and the resulting loss recognized in net income in the period the other-than-temporary impairment is identified. The following tables present securities with unrealized losses at December 31, 2019 and 2018: Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury and Government agencies $ 872 $ (1 ) $ 2,598 $ (1 ) $ 3,470 $ (2 ) Mortgage-backed securities 30,692 (157 ) 4,264 (45 ) 34,956 (202 ) State and political subdivisions 339 (1 ) - - 339 (1 ) Totals $ 31,903 $ (159 ) $ 6,862 $ (46 ) $ 38,765 $ (205 ) Less than 12 Months 12 Months or Longer Total December 31, 2018 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury and Government agencies $ 1,417 $ (8 ) $ 7,870 $ (106 ) $ 9,287 $ (114 ) Mortgage-backed securities 10,613 (54 ) 37,495 (985 ) 48,108 (1,039 ) State and political subdivisions 417 (6 ) 1,159 (21 ) 1,576 (27 ) Totals $ 12,447 $ (68 ) $ 46,524 $ (1,112 ) $ 58,971 $ (1,180 ) The unrealized loss on the securities portfolio decreased by $0.98 million as of December 31, 2019, from the prior year. Management reviews these securities on a quarterly basis and has determined that no impairment exists. Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concern warrants such evaluation. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans, Notes, Trade and Other Receivables Disclosure [Text Block] | Note 4: Loans and Allowance for Loan Losses The following tables present the categories of loans at December 31, 2019 and 2018: Total Loans Nonaccrual Loans ($ in thousands) December December December December Commercial & industrial $ 151,047 $ 127,041 $ 1,772 $ 731 Commercial real estate - owner occupied 98,488 95,651 1,362 - Commercial real estate - nonowner occupied 268,294 245,140 464 218 Agricultural 50,994 52,012 - - Residential real estate 193,159 187,104 1,635 1,738 Home equity line of credit (HELOC) 48,070 47,382 249 208 Consumer 14,738 16,954 18 11 Total Loans $ 824,790 $ 771,284 $ 5,500 $ 2,906 Net deferred costs $ 720 $ 599 Total Loans, net deferred costs $ 825,510 $ 771,883 Allowance for loan losses $ (8,755 ) $ (8,167 ) The Company makes commercial, agri-business, consumer and residential loans to customers throughout its defined market area. 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 a portion of the commitments may expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Each customer’s creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Forward sale commitments are commitments to sell groups of residential mortgage loans that the Company originates or purchases as part of its mortgage banking activities. The Company commits to sell the loans at specified prices in a future period, typically within forty-five days. These commitments are acquired to reduce market risk on mortgage loans in the process of origination and mortgage loans held-for-sales since the Company is exposed to interest rate risk during the period between issuing a loan commitment and the sales of the loan into the secondary market. Listed below is a summary of loan commitments, unused lines of credit and standby letters of credit as of December 31, 2019 and 2018. ($ in thousands) 2019 2018 Loan commitments and unused lines of credit $ 187,855 $ 168,731 Standby letters of credit 2,657 2,145 Totals $ 190,512 $ 170,876 There are various contingent liabilities that are not reflected in the consolidated financial statements, including claims and legal actions arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the Company’s consolidated financial condition or results of operations. The risk characteristics of each loan portfolio segment are as follows: Commercial & Industrial and Agricultural Commercial & industrial and agricultural loans are primarily based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets, such as accounts receivable or inventory, and may include a personal guarantee. Short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. Commercial Real Estate (Owner and Nonowner Occupied) Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The characteristics of properties securing the Company’s commercial real estate portfolio are diverse, but with geographic location almost entirely in the Company’s market area. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In general, the Company avoids financing single purpose projects unless other underwriting factors are present to help mitigate risk. In addition, management tracks the level of owner-occupied commercial real estate versus non-owner-occupied loans. Construction loans are underwritten utilizing feasibility studies, independent appraisal reviews and financial analysis of the developers and property owners. Construction loans are generally based on estimates of costs and value associated with the completed project. These estimates may be inaccurate. Construction loans often involve the disbursement of substantial funds with repayment substantially dependent on the success of the ultimate project. Sources of repayment for these types of loans may be pre-committed permanent loans from approved long-term lenders, sales of developed property or an interim loan commitment from the Company until permanent financing is obtained. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential Real Estate, Home Equity Line of Credit (“HELOC”) and Consumer Residential and consumer loans consist of two segments – residential mortgage loans and personal loans. Residential mortgage loans are secured by 1-4 family residences and are generally owner-occupied, and the Company generally establishes a maximum loan-to-value ratio and requires private mortgage insurance if that ratio is exceeded. HELOCs are typically secured by a subordinate interest in 1-4 family residences, and consumer personal loans are secured by consumer personal assets, such as automobiles or recreational vehicles. Some consumer personal loans are unsecured, such as small installment loans and certain lines of credit. Repayment of these loans is primarily dependent on the personal income of the borrowers, which can be impacted by economic conditions in their market areas, such as unemployment levels. Repayment can also be impacted by changes in property values on residential properties. Risk is mitigated by the fact that these loans are of smaller individual amounts and spread over a large number of borrowers. The following tables present the balance of the allowance for loan and lease losses (“ALLL”) and the recorded investment in loans based on portfolio segment and impairment method as of December 31, 2019 and 2018: ($ in thousands) For the Twelve Months Ended Commercial & Commercial Agricultural Residential real Consumer Total Beginning balance $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Charge offs (143 ) - - (53 ) (63 ) (259 ) Recoveries 9 1 - 14 23 47 Provision 582 678 (48 ) (325 ) (87 ) 800 Ending balance $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Commercial & Commercial Agricultural Residential real Consumer Total Loans Receivable at December 31, 2019 Allowance: Ending balance: $ 511 $ 147 $ - $ 68 $ - $ 726 Ending balance: $ 1,372 $ 3,455 $ 434 $ 2,135 $ 633 $ 8,029 Totals $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Loans: Ending balance: $ 1,722 $ 1,558 $ - $ 2,274 $ 31 $ 5,585 Ending balance: $ 149,325 $ 365,224 $ 50,994 $ 190,885 $ 62,777 $ 819,205 Totals $ 151,047 $ 366,782 $ 50,994 $ 193,159 $ 62,808 $ 824,790 ($ in thousands) For the Twelve Months Ended December 31, 2018 Commercial & Commercial Agricultural Residential real Consumer Total Beginning balance $ 823 $ 3,779 $ 505 $ 2,129 $ 694 $ 7,930 Charge offs (227 ) (42 ) - (30 ) (108 ) (407 ) Recoveries 1 28 - 2 13 44 Provision 838 (842 ) (23 ) 466 161 600 Ending balance $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Commercial & Commercial Agricultural Residential Consumer Total Loans Receivable at Allowance: Ending balance: $ 61 $ - $ - $ 73 $ 4 $ 138 Ending balance: $ 1,374 $ 2,923 $ 482 $ 2,494 $ 756 $ 8,029 Totals $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Loans: Ending balance: $ 700 $ 283 $ - $ 2,111 $ 190 $ 3,284 Ending balance: $ 126,341 $ 340,508 $ 52,012 $ 184,993 $ 64,146 $ 768,000 Totals $ 127,041 $ 340,791 $ 52,012 $ 187,104 $ 64,336 $ 771,284 Credit Risk Profile The Company categorizes loans into risk categories (loan grades) based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with an outstanding balance greater than $100,000 and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a quarterly basis. The Company uses the following definitions for risk ratings: Pass (grades 1 – 4): Special Mention (grade 5): Substandard (grade 6): Doubtful (grade 7): Loss (grade 8): The following tables present the credit risk profile of the Company’s loan portfolio based on rating category as of December 31, 2019 and 2018: ($ in thousands) December 31, 2019 Commercial & Commercial real estate - Commercial real estate - nonowner occupied Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 147,667 $ 96,836 $ 265,839 $ 50,994 $ 190,438 $ 47,787 $ 14,706 $ 814,267 Special Mention (5) 597 - 543 - - - - 1,140 Substandard (6) 1,444 290 1,663 - 2,689 283 32 6,401 Doubtful (7) 1,339 1,362 249 - 32 - - 2,982 Loss (8) - - - - - - - - Total Loans $ 151,047 $ 98,488 $ 268,294 $ 50,994 $ 193,159 $ 48,070 $ 14,738 $ 824,790 December 31, 2018 Commercial & Commercial Commercial Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 123,861 $ 95,651 $ 243,188 $ 51,702 $ 184,581 $ 47,148 $ 16,854 $ 762,985 Special Mention (5) 680 - 20 310 - - - 1,010 Substandard (6) 2,305 - 1,714 - 2,488 234 100 6,841 Doubtful (7) 195 - 218 - 35 - - 448 Loss (8) - - - - - - - - Total Loans $ 127,041 $ 95,651 $ 245,140 $ 52,012 $ 187,104 $ 47,382 $ 16,954 $ 771,284 The Company evaluates the loan risk grading system definitions and allowance for loan loss methodology on an ongoing basis. The Company uses a five-year average of historical losses for the general component of the allowance for loan loss calculation. No significant changes were made to the loan risk grading system definitions and allowance for loan loss methodology during the periods presented. The following tables present the Company’s loan portfolio aging analysis as of December 31, 2019 and 2018: ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Commercial & industrial $ 64 $ - $ 312 $ 376 $ 150,671 $ 151,047 Commercial real estate - owner occupied - - - - 98,488 98,488 Commercial real estate - nonowner occupied - - 215 215 268,079 268,294 Agricultural 13 - - 13 50,981 50,994 Residential real estate 309 415 644 1,368 191,791 193,159 HELOC 166 91 56 313 47,757 48,070 Consumer 65 93 14 172 14,566 14,738 Total Loans $ 617 $ 599 $ 1,241 $ 2,457 $ 822,333 $ 824,790 December 31, 2018 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Commercial & industrial $ 120 $ - $ 661 $ 781 $ 126,260 $ 127,041 Commercial real estate - owner occupied - - - - 95,651 95,651 Commercial real estate - nonowner occupied 342 1 - 343 244,797 245,140 Agricultural - - - - 52,012 52,012 Residential real estate 2,391 824 372 3,587 183,517 187,104 HELOC 163 16 55 234 47,148 47,382 Consumer 14 63 23 100 16,854 16,954 Total Loans $ 3,030 $ 904 $ 1,111 $ 5,045 $ 766,239 $ 771,284 All loans past due 90 days are systematically placed on nonaccrual status. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable that the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming commercial loans but also include loans modified in TDRs where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The following tables present impaired loan activity for the twelve months ended December 31, 2019 and 2018: ($ in thousands) Recorded Unpaid Principal Related Average Recorded Interest Income Twelve Months Ended December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 722 $ 1,092 $ - $ 1,377 $ 114 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied 196 197 - 259 21 Agricultural - - - - - Residential real estate 1,621 1,687 - 2,001 106 HELOC 16 16 18 1 Consumer 15 15 - 19 1 With a specific allowance recorded: Commercial & industrial 1,000 1,000 511 823 49 Commercial real estate - owner occupied 1,362 1,362 147 1,362 38 Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 653 653 68 666 31 HELOC - - - - - Consumer - - - - - Totals: Commercial & industrial $ 1,722 $ 2,092 $ 511 $ 2,200 $ 163 Commercial real estate - owner occupied $ 1,362 $ 1,362 $ 147 $ 1,362 $ 38 Commercial real estate - nonowner occupied $ 196 $ 197 $ - $ 259 $ 21 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 2,274 $ 2,340 $ 68 $ 2,667 $ 137 HELOC $ 16 $ 16 $ - $ 18 $ 1 Consumer $ 15 $ 15 $ - $ 19 $ 1 ($ in thousands) Recorded Unpaid Principal Related Average Recorded Interest Income Twelve Months Ended December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 575 $ 802 $ - $ 370 $ 21 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied 283 283 - 336 21 Agricultural - - - - - Residential real estate 1,249 1,292 - 1,995 91 HELOC 20 20 - 21 1 Consumer 93 93 - 104 7 With a specific allowance recorded: Commercial & industrial 125 125 61 127 21 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 862 888 73 426 20 HELOC - - - - - Consumer 77 77 4 91 6 Totals: Commercial & industrial $ 700 $ 927 $ 61 $ 497 $ 42 Commercial real estate - owner occupied $ - $ - $ - $ - $ - Commercial real estate - nonowner occupied $ 283 $ 283 $ - $ 336 $ 21 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 2,111 $ 2,180 $ 73 $ 2,421 $ 111 HELOC $ 20 $ 20 $ - $ 21 $ 1 Consumer $ 170 $ 170 $ 4 $ 195 $ 13 Impaired loans less than $100,000 are included in groups of homogenous loans. These loans are evaluated based on delinquency status. Interest income recognized on a cash basis does not materially differ from interest income recognized on an accrual basis. Troubled Debt Restructured (TDR) Loans TDRs are modified loans where a concession was provided to a borrower experiencing financial difficulties. Loan modifications are considered TDRs when the concessions provided are not available to the borrower through either normal channels or other sources. However, not all loan modifications are TDRs. TDR Concession Types The Company’s standards relating to loan modifications consider, among other factors, minimum verified income requirements, cash flow analysis, and collateral valuations. Each potential loan modification is reviewed individually and the terms of the loan are modified to meet a borrower’s specific circumstances at a point in time. All loan modifications, including those classified as TDRs, are reviewed and approved. The types of concessions provided to borrowers include: ● Interest rate reduction: A reduction of the stated interest rate to a nonmarket rate for the remaining original life of the debt. The Company also may grant interest rate concessions for a limited timeframe on a case by case basis. ● Amortization or maturity date change beyond what the collateral supports, including a change that does any of the following: (1) Lengthens the amortization period of the amortized principal beyond market terms. This concession reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (2) Reduces the amount of loan principal to be amortized. This concession also reduces the minimum monthly payment and increases the amount of the balloon payment at the end of the term of the loan. Principal is generally not forgiven. (3) Extends the maturity date or dates of the debt beyond what the collateral supports. This concession generally applies to loans without a balloon payment at the end of the term of the loan. In addition, there may be instances where renewing loans potentially require non-market terms and would then be reclassified as TDRs. ● Other: A concession that is not categorized as one of the concessions described above. These concessions include, but are not limited to: principal forgiveness, collateral concessions, covenant concessions, and reduction of accrued interest. Principal forgiveness may result from any TDR modification of any concession type. There were no new TDRs during the period ended December 31, 2018. The following table represents new TDR activity for the twelve months ended December 31, 2019: ($ in thousands) Number of Pre-Modification Post Commercial & industrial 3 $ 763 $ 763 Total modifications 3 $ 763 $ 763 Interest Total Only Term Combination Modification Commercial & industrial $ 150 $ 613 $ - $ 763 Total modifications $ 150 $ 613 $ - $ 763 There were no TDRs modified during the past twelve months that have subsequently defaulted. |
Mortgage Banking and Servicing
Mortgage Banking and Servicing Rights | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Banking and Servicing Rights | Note 5: Mortgage Banking and Servicing Rights Mortgage loans serviced for others are not included in the accompanying balance sheets. The unpaid principal balance of mortgage loans serviced for others approximated $1.2 billion and $1.1 billion at December 31, 2019 and 2018. Contractually specified servicing fees of approximately $2.6 million and $2.6 million were included in mortgage loan servicing fees in the income statement for the years ended December 31, 2019 and 2018, respectively. The following table summarizes mortgage servicing rights capitalized and related amortization, along with activity in the related valuation allowance: ($ in thousands) 2019 2018 Carrying amount, beginning of year $ 11,365 $ 9,907 Mortgage servicing rights capitalized during the year 2,872 2,749 Mortgage servicing rights amortization during the year (2,126 ) (1,230 ) Net change in valuation allowance (1,094 ) (61 ) Carrying amount, end of year $ 11,017 $ 11,365 Valuation allowance: Beginning of year $ 212 $ 151 Increase (reduction) 1,094 61 End of year $ 1,306 $ 212 Fair value, beginning of period $ 12,672 $ 11,338 Fair value, end of period $ 11,864 $ 12,672 |
Derivative Financial Instrument
Derivative Financial Instruments | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities Disclosure [Text Block] | Note 6: Derivative Financial Instruments The Company is exposed to certain risks arising from both its business operations and economic conditions. The Company manages its exposures to a wide variety of business and operational risks primarily through management of its core business activities. The Company manages economic risks, including interest rate, liquidity and credit risk, primarily by managing the amount, sources and duration of its assets and liabilities and through the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing and duration of the Company’s known or expected cash payments principally related to certain variable-rate assets. The Company does not use derivatives for trading or speculative purposes. Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into IRLCs with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts that are entered into, economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. The table below presents the notional amount and fair value of the Company’s interest rate swaps, IRLCs and forward contracts utilized as of December 31, 2019 and 2018. December 31, 2019 December 31, 2018 ($ in thousands) Notional Fair Notional Fair Amount Value Amount Value Asset Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 82,826 $ 2,846 $ 49,927 $ 687 IRLCs 16,347 55 9,896 83 Total contracts $ 99,173 $ 2,901 $ 59,823 $ 770 Liability Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 82,826 $ (2,846 ) $ 49,927 $ (687 ) Forward contracts 22,000 (32 ) 14,500 (113 ) Total contracts $ 104,826 $ (2,878 ) $ 64,427 $ (800 ) The fair value of interest rate swaps were estimated using a discounted cash flow method that incorporates current market interest rates as of the balance sheet date. Fair values of IRLCs and forward contracts were estimated using changes in mortgage interest rates from the date the Company entered into the IRLC and the balance sheet date. The following table presents the amounts included in the consolidated statements of income for non-hedging derivative financial instruments for the twelve months ended December 31, 2019 and 2018. Amount of gain (loss) ($ in thousands) Statement of income classification 2019 2018 Interest rate swap contracts Other income $ 513 $ 146 Interest rate swap contracts Other expense (41 ) - IRLCs Gain on sale of mortgage loans & OMSR (28 ) 76 Forward contracts Gain on sale of mortgage loans & OMSR 81 (90 ) The following table shows the offsetting of financial assets and derivative assets at December 31, 2019 and 2018. ($ in thousands) Gross amounts Gross amounts Net amounts of Gross amounts not offset in the of recognized consolidated the consolidated Financial Cash collateral Net amount December 31, 2019 $ 2,901 $ 55 $ 2,846 $ - $ - $ 2,846 December 31, 2018 $ 1,272 $ 585 $ 687 $ - $ 310 $ 377 The following table shows the offsetting of financial liabilities and derivative liabilities at December 31, 2019 and 2018. ($ in thousands) Gross amounts Gross amounts Net amounts of Gross amounts not offset in the of recognized consolidated the consolidated Financial Cash collateral Net amount December 31, 2019 $ 2,901 $ 55 $ 2,846 $ - $ 3,242 $ (396 ) December 31, 2018 $ 1,272 $ 585 $ 687 $ - $ - $ 687 |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | Note 7: Premises and Equipment Major classifications of premises and equipment stated at cost were as follows at December 31: ($ in thousands) 2019 2018 Land $ 3,945 $ 3,561 Buildings and improvements 26,953 24,251 Equipment 10,786 11,995 Construction in process 128 1,098 41,812 40,905 Less accumulated depreciation (18,427 ) (18,821 ) Net premises and equipment $ 23,385 $ 22,084 |
Goodwill and Intangibles
Goodwill and Intangibles | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets Disclosure [Text Block] | Note 8: Goodwill and Intangibles On March 15, 2019, the Company purchased all of the assets of a title agency through a newly-formed, wholly-owned subsidiary, SBFG Title, LLC. This acquisition resulted in approximately $1.4 million in goodwill. The balance of goodwill as of December 31, 2019 was $17.8 million and at December 31, 2018, $16.4 million, respectively. Impairment exists when a reporting unit’s carrying value of goodwill exceeds its fair value. Goodwill is tested on the last day of the last quarter of each calendar year. At December 31, 2019, the Company’s reporting unit had positive equity and the Company elected to perform a qualitative assessment to determine if it was more likely than not that the fair value of the reporting unit exceeded its carrying value, including goodwill. The qualitative assessment indicated that it was more likely than not that the fair value of the reporting unit exceeded its carrying value, resulting in no impairment. Carrying basis and accumulated amortization of intangible assets were as follows at December 31: 2019 2018 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amount Amortization Amount Amortization Core deposits intangible $ 4,698 $ (4,692 ) $ 4,698 $ (4,688 ) Customer relationship intangible 200 (166 ) 200 (162 ) Banking intangibles $ 4,898 $ (4,858 ) $ 4,898 $ (4,850 ) Amortization expense for intangibles for the years ended December 31, 2019 and 2018 was $0.01 and $0.01 million, respectively. Estimated amortization expense for each of the following five years is immaterial. |
Interest-Bearing Deposits
Interest-Bearing Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposit Liabilities Disclosures [Text Block] | Note 9: Interest-Bearing Deposits Interest-bearing time deposits in denominations of $250,000 or more totaled $36.2 million on December 31, 2019 and $26.6 million on December 31, 2018. Certificates of deposit obtained from brokers totaled approximately $5.2 million and $13.2 million at December 31, 2019 and 2018, respectively, and mature between 2020 and 2021. At December 31, 2019, the scheduled maturities of time deposits were as follows: ($ in thousands) 2020 $ 154,391 2021 64,146 2022 26,932 2023 9,005 2024 3,097 Thereafter 182 Total $ 257,753 Included in time deposits at December 31, 2019 and 2018 were $88.3 million and $72.6 million, respectively, of deposits which were obtained through the Certificate of Deposit Account Registry Service (“CDARS”). This service allows deposit customers to maintain fully insured balances in excess of the $250,000 FDIC limit without the inconvenience of having multi-banking relationships. Under the reciprocal program that the Company is currently participating in, customers agree to allow their deposits to be placed with other participating banks in the CDARS program in insurable amounts under $250,000. In exchange, other banks in the program agree to place their deposits with the Company also in insurable amounts under $250,000. |
Short-Term Borrowings
Short-Term Borrowings | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-term Debt [Text Block] | Note 10: Short-Term Borrowings ($ in thousands) 2019 2018 Securities Sold Under Repurchase Agreements $ 12,945 $ 15,184 The Company has retail repurchase agreements to facilitate cash management transactions with commercial customers. Securing these obligations are agency securities of $4.5 and $3.1 million for 2019 and 2018, respectively, and mortgage-backed securities of $15.0 and $14.8 million for 2019 and 2018, respectively, which are held at the FHLB. This collateral has maturities from 2022 through 2044. At December 31, 2019, retail repurchase agreements totaled $12.9 million. The maximum amount of outstanding agreements at any month end during 2019 and 2018 totaled $22.7 and $18.3 million, respectively, and the monthly average of such agreements totaled $15.3 and $16.5 million, respectively. The retail repurchase agreements mature within one month. At December 31, 2019 and December 31, 2018, the Company had $41.0 million in federal funds lines, of which none were drawn. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Federal Home Loan Bank Advances, Disclosure [Text Block] | Note 11: Federal Home Loan Bank Advances The FHLB advances were secured by $165.0 million in mortgage loans at December 31, 2019. Advances, at interest rates from 1.84 to 2.93 percent, are subject to restrictions or penalties in the event of prepayment. Aggregate annual maturities of FHLB advances at December 31, 2019, were: ($ in thousands) Debt 2020 $ 8,000 2021 2,500 2022 3,000 2023 2,500 Total $ 16,000 |
Trust Preferred Securities
Trust Preferred Securities | 12 Months Ended |
Dec. 31, 2019 | |
Trust Preferred Securities [Abstract] | |
Trust Preferred Securities | Note 12: Trust Preferred Securities On September 15, 2005, RST II, a wholly-owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $1,000 per security. The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital Securities. Distributions on the Capital Securities are payable quarterly at a variable rate that is based upon the 3-month LIBOR plus 1.80 percent and are included in interest expense in the consolidated financial statements. These securities may be included in Tier 1 capital and may be prepaid at anytime without penalty (with certain limitations applicable) under current regulatory guidelines and interpretations. The balance of the Capital Securities as of December 31, 2019 and 2018 was $10.3 million, with a maturity date of September 15, 2035. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Disclosure [Text Block] | Note 13: Income Taxes The provision for income taxes includes these components: For The Year Ended ($ in thousands) 2019 2018 Taxes currently payable $ 2,938 $ 2,482 Deferred provision (279 ) 324 Income tax expense $ 2,659 $ 2,806 A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: For The Year Ended ($ in thousands) 2019 2018 Computed at the statutory rate (21%) $ 3,073 $ 3,033 Increase (decrease) resulting from Tax exempt interest (113 ) (118 ) BOLI income (71 ) (75 ) Stock compensation (45 ) (43 ) Other (185 ) 9 Actual tax expense $ 2,659 $ 2,806 The tax effects of temporary differences related to deferred taxes shown on the balance sheets are: For The Year Ended ($ in thousands) 2019 2018 Deferred tax assets Allowance for loan losses $ 1,838 $ 1,715 Net deferred loan fees 53 61 Unrealized losses on available-for-sale securities - 147 Other 659 215 2,550 2,138 Deferred tax liabilities Depreciation (1,009 ) (950 ) Mortgage servicing rights (2,378 ) (2,464 ) Unrealized gains on available-for-sale securities (175 ) - Purchase accounting adjustments (1,227 ) (1,162 ) Prepaids (447 ) (205 ) FHLB stock dividends (288 ) (288 ) (5,524 ) (5,069 ) Net deferred tax liability $ (2,974 ) $ (2,931 ) |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Comprehensive Income (Loss) Note [Text Block] | Note 14: Accumulated Other Comprehensive Income The following table presents reclassifications out of accumulated other comprehensive income related to unrealized gains and losses on available-for-sale securities for the two years ending December 31: ($ in thousands) 2019 2018 Affected Line Item in Income Statement Realized gains included in net income $ 206 $ 70 Gains on investment securities 206 70 Income before income taxes Tax effect (43 ) (15 ) Provision for income taxes Net of Tax $ 163 $ 55 Net income |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 15: Regulatory Matters As of December 31, 2019, based on its call report computations, State Bank was classified as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, State Bank must maintain capital ratios as set forth in the table below. There are no conditions or events since December 31, 2019 that management believes have changed State Bank’s capital classification. State Bank’s actual capital amounts and ratios are presented in the following table. Capital levels are presented for the State Bank only as the Company is exempt from quarterly reporting at the holding company level: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Procedures ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Tier I Capital to average assets $ 116,884 11.36 % $ 41,165 4.0 % $ 51,456 5.0 % Tier I Common equity capital to risk-weighted assets 116,884 12.46 % 42,204 4.5 % 60,962 6.5 % Tier I Capital to risk-weighted assets 116,884 12.46 % 56,273 6.0 % 75,030 8.0 % Total Risk-based capital to risk-weighted assets 125,639 13.40 % 75,030 8.0 % 93,788 10.0 % As of December 31, 2018 Tier I Capital to average assets $ 110,022 11.23 % $ 39,183 4.0 % $ 48,979 5.0 % Tier I Common equity capital to risk-weighted assets 110,022 12.57 % 39,386 4.5 % 56,890 6.5 % Tier I Capital to risk-weighted assets 110,022 12.57 % 52,514 6.0 % 70,019 8.0 % Total Risk-based capital to risk-weighted assets 118,189 13.50 % 70,019 8.0 % 87,524 10.0 % The above minimum capital requirements exclude the capital conservation buffer required to avoid limitations on capital distributions, including dividend payments and certain discretionary bonus payments to executive officers. The capital conservation buffer was phased beginning in 2015 and was fully phased in at 2.50 percent at January 1, 2019. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes as of December 31, 2019, State Bank met all capital adequacy requirements to which they are subject. |
Employee Benefits
Employee Benefits | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Compensation and Employee Benefit Plans [Text Block] | Note 16: Employee Benefits The Company has instituted a long-term incentive program, with the objective of rewarding senior management with restricted shares of the Company, in addition to the existing stock option program (see Note 17 to the Consolidated Financial Statements). The Company has a retirement savings 401(k) plan covering substantially all employees. The Company contributes a safe harbor matching contribution equal to 100% of an employees’ salary deferral amounts up to 4% of the employees’ eligible compensation. Employees are immediately vested in their voluntary contributions and in any Company safe harbor matching contributions. Any discretionary contribution made by the Company is fully vested after three years of credited service. Employer contributions charged to expense for 2019 and 2018 were $0.6 and $0.5 million, respectively. Also, the Company has Supplemental Executive Retirement Plan (“SERP”) Agreements with certain active and retired officers. The agreements provide monthly payments for up to 15 years that equal 15 percent to 25 percent of average compensation prior to retirement or death. The charges to expense for the current agreements were $0.3 and $0.3 million for 2019 and 2018, respectively. Additional life insurance is provided to certain officers through a bank-owned life insurance policy (“BOLI”). By way of a separate split-dollar agreement, the policy interests are divided between the Company and the insured’s beneficiary. The Company owns the policy cash value and a portion of the policy net death benefit, over and above the cash value assigned to the insured’s beneficiary. The cash surrender value of all life insurance policies totaled $17.2 and $16.8 million at December 31, 2019 and 2018, respectively. The Company has a noncontributory employee stock ownership plan (“ESOP”) covering substantially all employees of the Company and its subsidiaries. Voluntary contributions are made by the Company to the plan. Each eligible employee is vested based upon years of service, including prior years of service. The Company’s contributions to the account of each employee become fully vested after three years of service. Benefit expense for the value of the stock purchased is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. Allocated shares in the ESOP at December 31, 2019 and 2018, were 415,286 and 440,359, respectively. Dividends on allocated shares are recorded as dividends and charged to retained earnings. Compensation expense is recorded equal to the fair market value of the stock when contributions, which are determined annually by the Board of Directors of the Company, are made to the ESOP. ESOP expense for the years ended December 31, 2019 and 2018 was $0.0 and $0.2 million, respectively. |
Share Based Compensation Plan
Share Based Compensation Plan | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement [Text Block] | Note 17: Share Based Compensation Plan In April 2017, the shareholders approved a new share-based incentive compensation plan, the SB Financial Group, Inc. 2017 Stock Incentive Plan (the “2017 Plan”), which replaced the Company’s 2008 Stock Incentive Plan. This plan permits the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights (“SAR’s”), restricted stock, and restricted stock units (“RSU’s”) for up to 500,000 Common Shares of the Company. The 2008 Plan, which was approved by the shareholders in April 2008, permitted the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights, and restricted stock for up to 250,000 Common Shares of the Company. The 2008 and 2017 Plans are intended to advance the interests of the Company and its shareholders by offering employees, directors and advisory board members of the Company and its subsidiaries an opportunity to acquire or increase their ownership interest in the Company through grants of equity-based awards. The Plans permit equity-based awards to be used to attract, motivate, reward and retain highly competent individuals upon whose judgment, initiative, leadership and efforts are key to the success of the Company by encouraging those individuals to become shareholders of the Company. Option awards are granted with an exercise price equal to the market price of the Company’s stock at the date of grant and those option awards vest based on 5 years of continuous service and have 10-year contractual terms. The fair value of each option award was estimated on the date of grant using the Black-Scholes valuation model. No options were granted in 2019 or 2018. There was no compensation expense charged against income with respect to option awards under the Plans for 2019 or 2018. A summary of incentive stock option activity under the Company’s plans as of December 31, 2019 and changes during the year ended is presented below: Shares Weighted-Average Weighted-Average Aggregate Outstanding, beginning of year 64,000 $ 6.99 Granted - - Exercised (35,750 ) 7.00 Forfeited - - Expired - - Outstanding, end of year 28,250 $ 6.98 0.13 $ 359,058 Exercisable, end of year 28,250 $ 6.98 0.13 $ 359,058 During 2019, the 35,750 option shares exercised had a total intrinsic value of $0.4 million and the cash received from these exercised options was $0.2 million. The tax benefit from these transactions was immaterial. As of December 31, 2019, there was no unrecognized compensation cost related to incentive option share-based compensation arrangements granted under the 2008 Plan. On February 5, 2013, the Company adopted a Long Term Incentive (“LTI”) Plan. The LTI Plan awards restricted stock in the Company to certain key executives under the 2008 and 2017 Plans. These restricted stock awards vest over a four-year period and are intended to assist the Company in retention of key executives. During 2019 and 2018, the Company met certain performance targets and restricted stock awards were approved by the Board. The compensation cost charged against income for the LTI Plan was $0.4 and $0.3 million for 2019 and 2018, respectively. The total income tax benefit recognized in the income statement for share-based compensation arrangements was $0.1 and $0.1 million for 2019 and 2018, respectively. A summary of restricted stock activity under the Company’s LTI Plan as of December 31, 2019 (issued under both the 2008 and 2017 plan) and changes during the year ended is presented below: Shares Weighted-Average Nonvested, beginning of year 46,894 $ 16.31 Granted 27,590 18.06 Vested (25,010 ) 16.05 Forfeited (5,733 ) 17.53 Nonvested, end of year 43,741 $ 17.41 As of December 31, 2019, there was $0.5 million of total unrecognized compensation cost related to non-vested share-based compensation arrangements related to the restricted stock awards under the 2008 and 2017 Plan which were granted in accordance with the LTI Plan. That cost is expected to be recognized over a weighted-average period of 1.68 years. |
Preferred Stock
Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Text Block Supplement [Abstract] | |
Preferred Stock [Text Block] | Note 18: Preferred Stock On December 23, 2014, the Company completed its public offering of 1,500,000 depositary shares, each representing a 1/100th ownership interest in a 6.50 percent Noncumulative Convertible Perpetual Preferred Share, Series A (“Series A Preferred Shares”), of the Company with a liquidation preference of $1,000 per share (equivalent to $10.00 per depositary shares). The Company sold the maximum of 1,500,000 depositary shares in the offering, resulting in gross proceeds to the Company of $15.0 million. Net proceeds to the Company after all expenses related to the offering were $14.0 million. On December 26, 2019, the Company exercised its right to convert all of its Series A Preferred Shares and all of its depositary shares, representing interests in the Series A Preferred Shares, into common shares, no par value, of the Company (“Common Shares”) in accordance with the terms of the Series A Preferred Shares and depositary shares. Each outstanding Series A Preferred Share converted into the right to receive 990 Common Shares, and each outstanding depositary share converted into the right to receive 0.9908093 Common Shares based on the December 26 th The Company paid its last dividend on the depositary shares (and underlying Series A Preferred Shares) on December 15, 2019. No further dividends will be accrued, declared or paid on the depositary shares or underlying Series A Preferred Shares following the December 26, 2019 Conversion Date. |
Disclosures About Fair Value of
Disclosures About Fair Value of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures [Text Block] | Note 19: Disclosures About Fair Value of Assets and Liabilities Pursuant to ASC 820, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. A three level hierarchy exists in ASC 820 for fair value measurements based upon the inputs to the valuation of an asset or liability: Level 1: Level 2: Level 3: Following is a description of the valuation methodologies, inputs used for assets measured at fair value on a recurring basis, recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Available-for-sale securities The fair value of available-for-sale securities are determined by various valuation methodologies. Level 2 securities include U.S. government agencies, mortgage-backed securities and obligations of political and state subdivisions. Level 2 inputs do not include quoted prices for individual securities in active markets; however, they do include inputs that are either directly or indirectly observable for the individual security being valued. Such observable inputs include interest rates and yield curves at commonly quoted intervals, volatilities, prepayment speeds, credit risks and default rates. Also included are inputs derived principally from or corroborated by observable market data by correlation or other means. Interest rate contracts The fair values of interest rate contracts are based upon the estimated amount the Company would receive or pay to terminate the contracts or agreements, taking into account underlying interest rates, creditworthiness of underlying customers for credit derivatives and, when appropriate, the creditworthiness of the counterparties. Forward contracts The fair values of forward contracts on to-be-announced securities are determined using quoted prices in active markets, or benchmarked thereto (Level 1). Interest Rate Lock Commitments The fair value of IRLCs are determined using the projected sale price of individual loans based on changes in the market interest rates, projected pull-through rates (the probability that an IRLC will ultimately result in an originated loan), the reduction in the value of the applicant’s option due to the passage of time, and the remaining origination costs to be incurred based on management’s estimate of market costs (Level 3). The following table presents the fair value measurements of securities measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at December 31, 2019 and 2018: Fair Value Measurements Using: ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,202 $ - $ 12,202 $ - Mortgage-backed securities 78,182 - 78,182 - State and political subdivisions 10,564 - 10,564 - Interest rate contracts - assets 2,846 - 2,846 - Interest rate contracts - liabilities (2,846 ) - (2,846 ) - Forward contracts (32 ) (32 ) - - IRLCs 55 55 Fair Value Measurements Using: ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 18,670 $ - $ 18,670 $ - Mortgage-backed securities 60,943 - 60,943 - State and political subdivisions 11,356 - 11,356 - Interest rate contracts - assets 687 - 687 - Interest rate contracts - liabilities (687 ) - (687 ) - Forward contracts (113 ) (113 ) - - IRLCs 83 83 Level 1 - quoted prices in active markets for identical assets Level 2 - significant other observable inputs Level 3 - significant unobservable inputs The following is a description of the valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. Collateral-dependent Impaired Loans, Net of ALLL Loans for which it is probable the Company will not collect all principal and interest due according to contractual terms are measured for impairment. The estimated fair value of collateral-dependent impaired loans is based on the appraised value of the collateral, less estimated cost to sell. Collateral-dependent impaired loans are classified within Level 3 of the fair value hierarchy. This method requires obtaining independent appraisals of the collateral from a list of preapproved appraisers, which are reviewed for accuracy and consistency by the Company. The appraised values are reduced by applying a discount factor to the value based on the Company’s loan review policy. All impaired loans held by the Company were collateral dependent at December 31, 2019 and 20187. Mortgage Servicing Rights Mortgage servicing rights do not trade in an active, open market with readily observable prices. Accordingly, fair value is estimated using discounted cash flow models associated with the servicing rights and discounting the cash flows using discount market rates, prepayment speeds and default rates. The servicing portfolio has been valued using all relevant positive and negative cash flows including servicing fees, miscellaneous income and float; marginal costs of servicing; the cost of carry of advances; and foreclosure losses; and applying certain prevailing assumptions used in the marketplace. Due to the nature of the valuation inputs, mortgage servicing rights are classified within Level 3 of the hierarchy. These mortgage servicing rights are tested for impairment on a quarterly basis. The following table presents the fair value measurements of assets measured at fair value on a non-recurring basis and the level within the fair value hierarchy in which the fair value measurements fell at December 31, 2019 and 2018: ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 2,527 $ - $ - $ 2,527 Mortgage servicing rights 5,084 - - 5,084 IRLCs 55 55 ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 1,027 $ - $ - $ 1,027 Mortgage servicing rights 3,191 - - 3,191 IRLCs 83 83 Level 1 - quoted prices in active markets for identical assets Level 2 - significant other observable inputs Level 3 - significant unobservable inputs Unobservable (Level 3) Inputs The following tables present quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements at December 31, 2019 and 2018: Fair value at Valuation Range (weighted- ($ in thousands) 12/31/2019 technique Unobservable inputs average) Collateral-dependent impaired loans $ 2,527 Market comparable properties Comparability adjustments (%) 2 - 62% (28%) Mortgage servicing rights 5,084 Discounted cash flow Discount Rate 9.36 % Constant prepayment rate 10.19 % IRLCs 55 Discounted cash flow P&I earnings credit 1.78 % T&I earnings credit 1.93 % Inflation for cost of servicing 1.50 % Fair Value at Valuation Range (weighted- ($ in thousands) 12/31/2018 technique Unobservable inputs average) Collateral-dependent impaired loans $ 1,027 Market comparable properties Comparability adjustments (%) 20 - 35% (29%) Mortgage servicing rights 3,191 Discounted cash flow Discount Rate 10.30 % Constant prepayment rate 7.02 % IRLCs 83 Discounted cash flow P&I earnings credit 2.51 % T&I earnings credit 3.02 % Inflation for cost of servicing 1.50 % The mortgage servicing rights portfolio is measured for fair value by an independent third party. The valuation of the portfolio hinges on a number of quantitative factors. These factors include, but are not limited to, a discount rate applied to the cash flows, and an assumption of future principal prepayments. The prepayment assumptions are based upon the historical performance of the Company’s portfolio as well as market metrics. With the increasing interest rates during 2018, the mortgage servicing rights have increased in value. The servicing rights have had a decline in prepayments and the 0.49 percent decrease in the constant prepayment rate reflects the change in market rates. In addition, the earnings credit rates increased as did the discount rate. The following methods were used to estimate the fair value of all other financial instruments recognized in the accompanying balance sheets at amounts other than fair value. Cash and Due From Banks, Federal Reserve and Federal Home Loan Bank Stock and Interest Receivable and Payable Fair value is determined to be the carrying amount for these items (which include cash on hand, due from banks, and federal funds sold) because they represent cash or mature in 90 days or less, and do not represent unanticipated credit concerns. Loans Held for Sale The fair value of loans held for sale is based upon quoted market prices, where available, or is determined by discounting estimated cash flows using interest rates approximating the Company’s current origination rates for similar loans and adjusted to reflect the inherent credit risk. Loans The estimated fair value of loans follows the guidance in ASU 2016-01, which prescribes an “exit price” approach in estimating and disclosing fair value of financial instruments. The fair value calculation at that date discounted estimated future cash flows using rates that incorporated discounts for credit, liquidity, and marketability factors. Deposits, Repurchase Agreements & FHLB Advances Deposits include demand deposits, savings accounts and certain money market deposits. The carrying amount approximates the fair value. The estimated fair value for fixed-maturity time deposits, as well as borrowings, is based on estimates of the rate the Company could pay on similar instruments with similar terms and maturities at December 31, 2019 and 2018. Loan Commitments The fair value of commitments is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. The estimated fair values for other financial instruments and off-balance-sheet loan commitments approximate cost at December 31, 2019 and 2018 and are not considered significant to this presentation. Trust Preferred Securities The fair value for Trust Preferred Securities is estimated by discounting the cash flows using an appropriate discount rate. The following table presents estimated fair values of the Company’s financial instruments. The fair values of certain instruments were calculated by discounting expected cash flows, which involves significant judgments by management and uncertainties. Fair value is the estimated amount at which financial assets or liabilities could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. Because no market exists for these financial instruments, and because management does not intend to sell these financial instruments, the Company does not know whether the fair values shown below represent values at which the respective financial instruments could be sold individually or in the aggregate. ($ in thousands) Carrying Fair Fair value measurements using December 31, 2019 amount value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 27,064 $ 27,064 $ 27,064 $ - $ - Loans held for sale 7,258 7,419 - 7,419 - Loans, net of allowance for loan losses 816,755 804,808 - - 804,808 Federal Reserve and FHLB Bank stock, at cost 4,648 4,648 - 4,648 - Interest receivable 3,106 3,106 - 3,106 - Financial liabilities Deposits $ 840,219 $ 840,272 $ 582,466 $ 257,806 $ - Repurchase agreements 12,945 12,945 - 12,945 - FHLB advances 16,000 16,149 - 16,149 - Trust preferred securities 10,310 9,201 - 9,201 - Interest payable 1,191 1,191 - 1,191 - ($ in thousands) Carrying Fair Fair value measurements using December 31, 2018 amount value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 48,363 $ 48,363 $ 48,363 $ - $ - Loans held for sale 4,445 4,589 - 4,589 - Loans, net of allowance for loan losses 763,716 757,469 - - 757,469 Federal Reserve and FHLB Bank stock, at cost 4,123 4,123 - 4,123 - Interest receivable 2,822 2,822 - 2,822 - Financial liabilities Deposits $ 802,552 $ 799,726 $ 561,090 $ 238,636 $ - Repurchase agreements 15,184 15,184 - 15,184 - FHLB advances 16,000 15,848 - 15,848 - Trust preferred securities 10,310 10,233 - 10,233 - Interest payable 909 909 - 909 - |
Parent Company Financial Inform
Parent Company Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | Note 20: Parent Company Financial Information Presented below is condensed financial information of the parent company only: Condensed Balance Sheets ($ in thousands) 2019 2018 Assets Cash & cash equivalents $ 7,457 $ 14,038 Investment in banking subsidiaries 134,244 126,507 Investment in nonbanking subsidiaries 4,883 1,232 Other assets 192 224 Total assets $ 146,776 $ 142,001 Liabilities Trust preferred securities $ 10,000 $ 10,000 Borrowings from nonbanking subsidiaries 310 310 Other liabilities & accrued interest payable 372 1,256 Total liabilities 10,682 11,566 Stockholders’ equity 136,094 130,435 Total liabilities and stockholders’ equity $ 146,776 $ 142,001 Condensed Statements of Income ($ in thousands) 2019 2018 Dividends from subsidiaries: Banking subsidiaries $ 6,000 $ - Nonbanking subsidiaries 575 - Total income 6,575 - Expenses Interest expense 414 401 Other expense 1,773 1,327 Total expenses 2,187 1,728 Income before income tax 4,388 (1,728 ) Income tax benefit (508 ) (409 ) Income before equity in undistributed income of subsidiaries 4,896 (1,319 ) Equity in undistributed income of subsidiaries Banking subsidiaries 6,526 12,942 Nonbanking subsidiaries 551 15 Total 7,077 12,957 Net income 11,973 11,638 Preferred stock dividends 950 975 Net income available to common shareholders $ 11,023 $ 10,663 Condensed Statements of Comprehensive Income ($ in thousands) 2019 2018 Net income $ 11,973 $ 11,638 Other comprehensive income: Available-for-sale investment securities: Gross unrealized holding gain (loss) arising in the period 1,327 (590 ) Related tax (expense) benefit (279 ) 124 Less: reclassification adjustment for gain realized in income 206 70 Related tax expense (43 ) (15 ) Net effect on other comprehensive income 1,211 (411 ) Total comprehensive income $ 13,184 $ 11,227 Condensed Statements of Cash Flows ($ in thousands) 2019 2018 Operating activities Net income $ 11,973 $ 11,638 Items not requiring (providing) cash Equity in undistributed net income of subsidiaries (7,077 ) (12,957 ) Stock compensation expense 417 278 Other assets 32 44 Other liabilities (884 ) (79 ) Net cash provided by (used in) operating activities 4,461 (1,076 ) Investing activities Capital contributed to banking subsidiary - (12,500 ) Capital contributed to nonbanking subsidiary (3,100 ) - Net cash used in investing activities (3,100 ) (12,500 ) Financing activities Dividends on common shares (2,331 ) (2,090 ) Dividends on preferred shares (950 ) (975 ) Proceeds from issuance of common shares 139 27,912 Conversion of preferred shares (1 ) - Proceeds from share-based compensation plans 251 192 Repurchase of common shares (5,050 ) (109 ) Net cash provided by (used in) financing activities (7,942 ) 24,930 Net change in cash and cash equivalents (6,581 ) 11,354 Cash and cash equivalents at beginning of year 14,038 2,684 Cash and cash equivalents at end of year $ 7,457 $ 14,038 |
Quarterly Financial Information
Quarterly Financial Information | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Text Block] | Note 21: Quarterly Financial Information Quarterly Financial Information (unaudited) Years ended December 31, ($ in thousands, except per share data) 2019 December September June March Interest income $ 11,205 $ 11,546 $ 11,151 $ 10,498 Interest expense 2,609 2,488 2,319 2,158 Net interest income 8,596 9,058 8,832 8,340 Provision for loan losses 300 300 200 - Noninterest income 5,959 5,366 3,691 3,000 Noninterest expense 10,176 9,500 9,108 8,626 Income tax expense 721 862 588 488 Net income 3,358 3,762 2,627 2,226 Preferred share dividend 230 233 243 244 Net income available to common $ 3,128 $ 3,529 $ 2,384 $ 1,982 Basic earnings per common share $ 0.48 $ 0.55 $ 0.37 $ 0.31 Diluted earnings per common share $ 0.42 $ 0.48 $ 0.33 $ 0.28 Dividends per share $ 0.095 $ 0.090 $ 0.090 $ 0.085 2018 December September June March Interest income $ 10,638 $ 10,258 $ 9,732 $ 8,851 Interest expense 2,024 1,729 1,308 1,151 Net interest income 8,614 8,529 8,424 7,700 Provision for loan losses - - 300 300 Noninterest income 3,930 4,202 4,249 4,243 Noninterest expense 8,852 8,789 8,579 8,627 Income tax expense 732 824 687 563 Net income 2,960 3,118 3,107 2,453 Preferred share dividend 243 244 244 244 Net income available to common $ 2,717 $ 2,874 $ 2,863 $ 2,209 Basic earnings per common share $ 0.42 $ 0.45 $ 0.45 $ 0.40 Diluted earnings per common share $ 0.37 $ 0.39 $ 0.40 $ 0.35 Dividends per share $ 0.085 $ 0.080 $ 0.080 $ 0.075 |
Subsequent Events
Subsequent Events | 12 Months Ended |
Dec. 31, 2019 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | Note 22: Subsequent Events On February 6, 2020, the Company entered into an Agreement and Plan of Merger (the “Merger Agreement”) with Edon Bancorp, Inc. (“Edon”), The Edon State Bank Company (“Edon State Bank”), Edon’s subsidiary bank, State Bank and Trust Company (“State Bank and Trust”), the Company’s subsidiary bank, and Garden Acquisition Co. (“Merger Sub”), a wholly owned subsidiary of the Company, pursuant to which the Company will acquire Edon. Subject to the terms and conditions of the Merger Agreement, which has been approved by the boards of directors of each party, (i) Merger Sub will merge with and into Edon, with Edon surviving as a wholly-owned subsidiary of the Company (the “Merger”); (ii) immediately thereafter, Edon will liquidate and dissolve into the Company; and (iii) immediately following, Edon State Bank will merge with and into State Bank and Trust, with State Bank and Trust surviving. Under the terms of the Merger Agreement, each outstanding share of Edon common stock will be converted into the right to receive $103.50 in cash, for a transaction valued in aggregate at approximately $15.5 million. The Merger is subject to customary closing conditions, including the receipt of regulatory approvals and approval by the shareholders of Edon, and is expected to close in the second quarter of 2020. Concurrently with entering into the Merger Agreement, the Company entered into Voting Agreements with each of the directors and certain shareholders of Edon, pursuant to which such directors and shareholders agreed to vote their shares of Edon common stock in favor of the Merger. If the Merger is not consummated under specified circumstances, each party may be required to pay the other party a termination fee of $465,000. |
Accounting Policies, by Policy
Accounting Policies, by Policy (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Organization and Nature of Operations | Organization and Nature of Operations SB Financial Group, Inc. (the “Company”) is a financial holding company whose principal activity is the ownership and management of its wholly-owned subsidiaries, The State Bank and Trust Company (“State Bank”), SBFG Title, LLC dba Peak Title Agency (“SBFG Title”), SB Captive, Inc. (“SB Captive”), RFCBC, Inc. (“RFCBC”), Rurbanc Data Services, Inc. dba RDSI Banking Systems (“RDSI”), and Rurban Statutory Trust II (“RST II”). State Bank owns all the outstanding stock of Rurban Mortgage Company (“RMC”), and State Bank Insurance, LLC (“SBI”). The Company is primarily engaged in providing a full range of banking and wealth management services to individual and corporate customers primarily located in Ohio, Indiana, and Michigan. The Company is subject to competition from other financial institutions, and regulated by certain federal and state agencies and undergoes periodic examinations by those regulatory authorities. |
Principles of Consolidation | Principles of Consolidation The Consolidated Financial Statements include the accounts of the Company, State Bank, SBFG Title, SB Captive, RFCBC, RDSI, RMC, RST II, and SBI. All significant intercompany accounts and transactions were eliminated in consolidation. |
Use of Estimates | Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the 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 relate to the determination of the allowance for loan losses, loan servicing rights, and fair value of financial instruments. |
Cash Equivalents | Cash Equivalents The Company considers all liquid investments with original maturities of three months or less to be cash equivalents. At December 31, 2019 and 2018, cash equivalents consisted primarily of interest-bearing and noninterest bearing demand deposit balances held by correspondent banks. At December 31, 2019, the Company’s correspondent cash accounts exceeded federally insured limits by $2.9 million. Additionally, the Company had approximately $9.5 million of cash held by the FRB and the FHLB, which is not federally insured. |
Securities | Securities Available-for-sale securities, which include any debt security for which the Company has no immediate plan to sell but which may be sold in the future, are carried at fair value. Unrealized gains and losses are recorded, net of related income tax effects, in other comprehensive income. Amortization of premiums and accretion of discounts are recorded as interest income from securities. Realized gains and losses are recorded as net security gains (losses). Gains and losses on sales of securities are determined on the specific-identification method. For debt securities with fair value below carrying value when the Company does not intend to sell the debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, the Company recognizes the credit component of an other-than-temporary impairment of the debt security in earnings and the remaining portion in other comprehensive income. |
Mortgage Loans Held for Sale | Mortgage Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to noninterest income. Gains and losses on loan sales are recorded in noninterest income. The Company utilizes third-party hedges to minimize the impact of interest rate risk fluctuations, and their impact is realized through noninterest income. |
Loans | Loans Loans that management has the intent and ability to hold for the foreseeable future, or until maturity or payoffs, are reported at their outstanding principal balances adjusted for any charge offs, the allowance for loan losses, any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Interest income is reported on the interest method and includes amortization of net deferred loan fees and costs over the loan term. Generally, loans are placed on nonaccrual status not later than 90 days past due. Past due status is based on the contractual terms of the loan. All interest accrued, but not collected for loans that are placed on nonaccrual 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. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured. |
Allowance for Loan Losses | Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to income. Loan losses are charged against the allowance when management believes the non-collectability of a loan balance is probable. 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 new information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers non-classified loans and is based on historical charge off experience and expected loss given default derived from the Company’s internal risk rating process. Other adjustments may be made to the allowance for pools of loans after an assessment of internal or external influences on credit quality that are not fully reflected on the historical loss or risk rating data. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration each of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial, agricultural, and construction loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. When a loan moves to nonaccrual status, total unpaid interest accrued to date is reversed from income. Subsequent payments are applied to the outstanding principal balance with the interest portion of the payment recorded on the balance sheet as a contra-loan. Interest received on impaired loans may be realized once all contractual principal amounts are received or when a borrower establishes a history of six consecutive timely principal and interest payments. It is at the discretion of management to determine when a loan is placed back on accrual status upon receipt of six consecutive timely payments. Large groups of smaller balance homogenous loans are collectively evaluated for impairment. Accordingly, individual consumer and residential loans are not separately identified for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. |
Premises and Equipment | Premises and Equipment Depreciable assets are stated at cost less accumulated depreciation. Depreciation is charged to expense using the straight-line method for buildings and equipment over the estimated useful lives of the assets. Leasehold improvements are capitalized and depreciated using the straight-line method over the terms of the respective leases. |
Long-lived Asset Impairment | Long-lived Asset Impairment The Company evaluates the recoverability of the carrying value of long-lived assets whenever events or circumstances indicate the carrying amount may not be recoverable. If a long-lived asset is tested for recoverability and the undiscounted estimated future cash flows expected to result from the use and eventual disposition of the asset is less than the carrying amount of the asset, the asset’s cost is adjusted to fair value and an impairment loss is recognized as the amount by which the carrying amount of a long-lived asset exceeds its fair value. |
Federal Reserve Bank and Federal Home Loan Bank Stock | Federal Reserve Bank and Federal Home Loan Bank Stock FRB and FHLB stock are required investments for institutions that are members of the FRB and FHLB systems. The required investment in the common stock is based on a predetermined formula, carried at cost and evaluated for impairment. |
Foreclosed Assets Held for Sale | Foreclosed Assets Held for Sale Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less costs 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 the carrying amount or the fair value less cost to sell. Revenue and expenses from operations related to foreclosed assets and changes in the valuation allowance are included in net income or expense from foreclosed assets. |
Goodwill | Goodwill Goodwill is tested for impairment annually. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. |
Core Deposits and Other Intangibles | Core Deposits and Other Intangibles Intangible assets are being amortized on a straight-line basis over weighted-average periods ranging from one to fifteen years. Such assets are periodically evaluated as to the recoverability of their carrying value. Purchased software is being amortized using the straight-line method over periods ranging from one to three years. |
Derivatives | Derivatives The Company utilizes derivative financial instruments to help manage exposure to interest rate risk and the effects that changes in interest rates may have on net income and the fair value of assets and liabilities. The Company enters into interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position. Additionally, the Company enters into forward contracts for the future delivery of mortgage loans to third-party investors and enters into interest rate lock commitments (“IRLCs”) with potential borrowers to fund specific mortgage loans that will be sold into the secondary market. The forward contracts are entered into in order to economically hedge the effect of changes in interest rates resulting from the Company’s commitment to fund the loans. The IRLCs and forward contracts are not designated as accounting hedges and are recorded at fair value with the changes in fair value reflected in noninterest income on the consolidated statements of income. The fair value of derivative instruments with a positive fair value are reported in accrued income and other assets in the consolidated balance sheets, while the derivative instruments with a negative fair value are reported in accrued expenses and other liabilities in the consolidated balance sheets. For exchange-traded contracts, fair value is based on quoted market prices. For non-exchange traded contracts, fair value is based on dealer quotes, pricing models, discounted cash flow methodologies or similar techniques for which the determination of fair value may require significant management judgment or estimation. |
Mortgage Servicing Rights | Mortgage Servicing Rights Mortgage servicing assets are recognized separately when rights are acquired through purchase or through sale of financial assets. Under the servicing assets and liabilities accounting guidance, (Accounting Standards Codification “ASC” 806-50), servicing rights from the sale or securitization of loans originated by the Company are initially measured at fair value at the date of transfer. The Company subsequently measures each class of servicing asset using the amortization method. Under the amortization method, servicing rights are amortized in proportion to and over the period of estimated net servicing income. The amortized assets are assessed for impairment based on fair value at each reporting date. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost of service, the discount rate, the custodial earning rate, an inflation rate, ancillary income, prepayment speeds and default rates and losses. These variables change from quarter to quarter as market conditions and projected interest rates change, and may have an adverse impact on the value of the mortgage servicing right and may result in a reduction to noninterest income. Each class of separately recognized servicing assets subsequently measured using the amortization method is evaluated and measured for impairment. Impairment is determined by stratifying rights into tranches based on predominant characteristics, such as interest rate, loan type and investor type. Impairment is recognized through a valuation allowance for an individual tranche, to the extent that fair value is less than the carrying amount of the servicing assets for that tranche. The valuation allowance is adjusted to reflect changes in the measurement of impairment after the initial measurement of impairment. Changes in valuation allowances are reported with “Mortgage loan servicing fees, net” in the income statement. Fair value in excess of the carrying amount of servicing assets for that stratum is not recognized. Servicing fee income is recorded for fees earned for servicing loans. The fees are based on a contractual percentage of the outstanding principal or a fixed amount per loan and are recorded as income when earned. The amortization of mortgage servicing rights is netted against loan servicing fee income. |
Share-Based Employee Compensation Plan | Share-Based Employee Compensation Plan At December 31, 2019 and 2018, the Company had a share-based employee compensation plan (see Note 17 to the Consolidated Financial Statements). |
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 – 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 the maturity or the ability to unilaterally cause the holder to return specific assets. |
Income Taxes | Income Taxes The Company accounts for income taxes in accordance with income tax accounting guidance (ASC 740). The 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 differences between the book and tax bases 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 reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. Uncertain tax positions 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 term “upon examination” also includes 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. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. With a few exceptions, the Company is no longer subject to U.S. Federal, State and Local examinations by tax authorities for the years before 2016. As of December 31, 2019, the Company had no uncertain income tax positions. The Company uses the specific identification (or portfolio) method for reclassifying material stranded tax effects in Accumulated Other Consolidated Income (“AOCI”) to earnings. |
Treasury Shares | Treasury Shares Treasury stock is stated at cost. Cost is determined by the weighted-average cost method. |
Earnings Per Share | Earnings Per Share Earnings per common share is computed using the two-class method. Basic earnings per share represent income available to common shareholders divided by the weighted-average number of common shares outstanding during each period. Diluted earnings per share reflect additional potential common shares and convertible preferred 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 solely to outstanding stock options which are determined using the treasury stock method and convertible preferred shares which are determined using the converted method. Treasury stock shares are not deemed outstanding for earnings per share calculations. |
Comprehensive Income | Comprehensive Income Comprehensive income consists of net income and other comprehensive income, net of applicable income taxes. Other comprehensive income includes unrealized appreciation (depreciation) on available-for-sale securities, and unrealized and realized gains and losses in derivative financial instruments that qualify for hedge accounting. AOCI consists solely of the cumulative unrealized gains and losses on available-for-sale securities net of income tax. |
Revenue Recognition | Revenue Recognition The Company recognizes revenues as they are earned based on contractual terms, as transactions occur, or services are provided and collectability is reasonably assured. The Company’s principal source of revenue is interest income from loans and leases and investment securities. The Company also earns noninterest income from various banking and financial services offered through State Bank. Interest income is the largest source of revenue for the Company which is primarily recognized on an accrual basis. Noninterest income is earned through a variety of financial and transaction services provided to corporate and consumer clients such as trust and wealth advisory, deposit account, debit card, mortgage banking and insurance. |
New and applicable accounting pronouncements | New and applicable accounting pronouncements: ASU No. 2018-07: Compensation – Stock Compensation (Topic 718) This ASU expands the scope of Topic 718, to include share-based payments issued to nonemployees for goods or services. Consequently, the accounting for share-based payments to nonemployees and employees will be substantially aligned. This ASU supersedes Subtopic 505-50, Equity-Based Payments to Non-Employees. The amendments in this ASU became effective for periods beginning after December 15, 2018. At this time, the Company does not have any share-based payments to nonemployees. ASU No. 2017-12: Derivatives and Hedging (Topic 815) This ASU improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The ASU also makes targeted improvements to simplify the application of the hedge accounting guidance. The amendments in this ASU became effective for fiscal years after December 15, 2018 and the Company adopted these amendments. The impact of these amendments was immaterial to the Company’s financial statements. ASU No. 2016-02: Leases (Topic 842) FASB issued ASU 2016-02, Leases. The new standard establishes a right-of-use asset model that requires a lessee to record an asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. Leases will be classified as either finance or operating, with classification affecting the pattern of expense recognition in the income statement. The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. As the Company owns most of its branch locations, the impact of adoption of this ASU resulted in a $0.2 million right-of-use asset and a corresponding lease obligation liability of $0.2 million. The right-of-use asset is included in other assets and the lease obligation liability is included in other liabilities in the Company’s December 31, 2019 consolidated balance sheet. The Company has given consideration to the materiality of their leases and has determined that the additional required disclosures for leases is immaterial to the consolidated financial statements. Accounting standards not yet adopted: ASU No. 2018-13: Fair Value Measurement - Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement (Topic 820) The updated guidance improves the disclosure requirements for fair value measurements. The ASU removes certain disclosures required by Topic 820 related to transfers between Level 1 and Level 2 of the fair value hierarchy; the policy for timing of transfers between levels; and the valuation processes for Level 3 fair value measurements. The ASU modifies certain disclosures required by Topic 820 related to disclosure of transfers into and out of Level 3 of the fair value hierarchy; the requirement to disclose the timing of liquidation of an investee’s assets and the date when restrictions from redemption might lapse only if the investee has communicated the timing to the entity or announced the timing publicly for investments in certain entities that calculate net asset value; and clarification that the measurement uncertainty disclosure is to communicate information about the uncertainty in measurement as of the reporting date. The ASU adds certain disclosure requirements related to changes in unrealized gains and losses for the period included in other comprehensive income for recurring Level 3 fair value measurements held at the end of the reporting period and the range and weighted-average of significant unobservable inputs used to develop Level 3 fair value measurements. For certain unobservable inputs, an entity may disclose other quantitative information in lieu of the weighted- average if the entity determines that other quantitative information would be a more reasonable and rational method to reflect the distribution of unobservable inputs used to develop Level 3 fair value measurements. The amendments in this update become effective for fiscal years, and interim periods within those fiscal years beginning after December 15, 2019. Early adoption is permitted. The Company is currently evaluating the impact of adopting the new guidance on its consolidated financial statements, but it is not expected to have a material impact. ASU No. 2017-04: Intangibles – Goodwill and Other (Topic 350) This ASU simplifies the test for goodwill impairment. Specifically, these amendments eliminate Step 2 from the goodwill impairment test, and also eliminate the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. The amendments in this ASU are effective for annual goodwill impairment tests in fiscal years beginning after December 15, 2019, and management does not believe the changes will have a material effect on the Company’s accounting and disclosures. ASU No. 2016-13: Financial Instruments – Credit Losses (Topic 326) This ASU, which is commonly known as CECL, replaces the current GAAP incurred impairment methodology regarding credit losses with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The amendments in this update affect an entity to varying degrees depending on the credit quality of the assets held by the entity, their duration, and how the entity applies current GAAP. The adoption of ASU 2016-13 is likely to result in an increase in the allowance for loan losses as a result of changing from an “incurred loss” model, which encompasses allowances for current known and inherent losses within the portfolio, to an “expected loss” model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. Furthermore, ASU 2016-13 will necessitate that we establish an allowance for expected credit losses on debt securities. In December 2018, the OCC, the Federal Reserve Board, and the FDIC approved a final rule to address changes to credit loss accounting under GAAP, including banking organizations’ implementation of CECL. The final rule provides banking organizations the option to phase in over a three-year period the day-one adverse effects on regulatory capital that may result from the adoption of the new accounting standard. On November 15, 2019, the FASB delayed the effective date for certain small public companies and other private companies. As the Company is currently a smaller reporting company, the amendment will delay the effective date of ASU No. 2016-13 to the fiscal year beginning after December 15, 2022. While we are currently unable to reasonably estimate the impact of adopting ASU 2016-13, we expect that the impact of adoption will be significantly influenced by the composition, characteristics and quality of our loan and securities portfolios as well as the prevailing economic conditions and forecasts as of the adoption date. The Company implemented a process to track required data by utilizing accounting software in preparation for compliance. We anticipate being fully prepared for implementation by January 1, 2023. |
Reclassifications: | Reclassifications: Certain reclassifications have been made to prior period financial statements to conform to the current financial statement presentation. These reclassifications had no effect on net income. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Twelve Months Ended Dec. 31, ($ and outstanding shares in thousands - except per share data) 2019 2018 Distributed earnings allocated to common shares $ 2,331 $ 2,090 Undistributed earnings allocated to common shares 8,675 8,558 Net earnings allocated to common shares 11,006 10,648 Net earnings allocated to participating securities 17 15 Dividends on convertible preferred shares 950 975 Net Income allocated to common shares and participating securities $ 11,973 $ 11,638 Weighted average shares outstanding for basic earnings per share 6,456 6,198 Dilutive effect of stock compensation 46 61 Dilutive effect of preferred convertible shares 1,433 1,460 Weighted average shares outstanding for diluted earnings per share 7,935 7,719 Basic earnings per common share $ 1.71 $ 1.72 Diluted earnings per common share $ 1.51 $ 1.51 |
Available-for-Sale Securities (
Available-for-Sale Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | Amortized Gross Unrealized Gross Unrealized ($ in thousands) Cost Gains Losses Fair Value December 31, 2019: U.S. Treasury and Government agencies $ 12,023 $ 181 $ (2 ) $ 12,202 Mortgage-backed securities 77,892 492 (202 ) 78,182 State and political subdivisions 10,199 366 (1 ) 10,564 Totals $ 100,114 $ 1,039 $ (205 ) $ 100,948 Gross Gross Amortized Unrealized Unrealized Cost Gains Losses Fair Value December 31, 2018: U.S. Treasury and Government agencies $ 18,597 $ 187 $ (114 ) $ 18,670 Mortgage-backed securities 61,868 114 (1,039 ) 60,943 State and political subdivisions 11,203 180 (27 ) 11,356 Totals $ 91,668 $ 481 $ (1,180 ) $ 90,969 |
Investments Classified by Contractual Maturity Date [Table Text Block] | Amortized Fair ($ in thousands) Cost Value Within one year $ 3,566 $ 3,571 Due after one year through five years 7,209 7,340 Due after five years through ten years 5,783 5,954 Due after ten years 5,664 5,901 22,222 22,766 Mortgage-backed securities 77,892 78,182 Totals $ 100,114 $ 100,948 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value [Table Text Block] | Less than 12 Months 12 Months or Longer Total ($ in thousands) Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury and Government agencies $ 872 $ (1 ) $ 2,598 $ (1 ) $ 3,470 $ (2 ) Mortgage-backed securities 30,692 (157 ) 4,264 (45 ) 34,956 (202 ) State and political subdivisions 339 (1 ) - - 339 (1 ) Totals $ 31,903 $ (159 ) $ 6,862 $ (46 ) $ 38,765 $ (205 ) Less than 12 Months 12 Months or Longer Total December 31, 2018 Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized U.S. Treasury and Government agencies $ 1,417 $ (8 ) $ 7,870 $ (106 ) $ 9,287 $ (114 ) Mortgage-backed securities 10,613 (54 ) 37,495 (985 ) 48,108 (1,039 ) State and political subdivisions 417 (6 ) 1,159 (21 ) 1,576 (27 ) Totals $ 12,447 $ (68 ) $ 46,524 $ (1,112 ) $ 58,971 $ (1,180 ) |
Loans and Allowance for Loan _2
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Total Loans Nonaccrual Loans ($ in thousands) December December December December Commercial & industrial $ 151,047 $ 127,041 $ 1,772 $ 731 Commercial real estate - owner occupied 98,488 95,651 1,362 - Commercial real estate - nonowner occupied 268,294 245,140 464 218 Agricultural 50,994 52,012 - - Residential real estate 193,159 187,104 1,635 1,738 Home equity line of credit (HELOC) 48,070 47,382 249 208 Consumer 14,738 16,954 18 11 Total Loans $ 824,790 $ 771,284 $ 5,500 $ 2,906 Net deferred costs $ 720 $ 599 Total Loans, net deferred costs $ 825,510 $ 771,883 Allowance for loan losses $ (8,755 ) $ (8,167 ) |
Summary loan commitments, unused lines of credit and standby letters of credit | ($ in thousands) 2019 2018 Loan commitments and unused lines of credit $ 187,855 $ 168,731 Standby letters of credit 2,657 2,145 Totals $ 190,512 $ 170,876 |
Financing Receivable, Allowance for Credit Loss [Table Text Block] | ($ in thousands) For the Twelve Months Ended Commercial & Commercial Agricultural Residential real Consumer Total Beginning balance $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Charge offs (143 ) - - (53 ) (63 ) (259 ) Recoveries 9 1 - 14 23 47 Provision 582 678 (48 ) (325 ) (87 ) 800 Ending balance $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Commercial & Commercial Agricultural Residential real Consumer Total Loans Receivable at December 31, 2019 Allowance: Ending balance: $ 511 $ 147 $ - $ 68 $ - $ 726 Ending balance: $ 1,372 $ 3,455 $ 434 $ 2,135 $ 633 $ 8,029 Totals $ 1,883 $ 3,602 $ 434 $ 2,203 $ 633 $ 8,755 Loans: Ending balance: $ 1,722 $ 1,558 $ - $ 2,274 $ 31 $ 5,585 Ending balance: $ 149,325 $ 365,224 $ 50,994 $ 190,885 $ 62,777 $ 819,205 Totals $ 151,047 $ 366,782 $ 50,994 $ 193,159 $ 62,808 $ 824,790 ($ in thousands) For the Twelve Months Ended December 31, 2018 Commercial & Commercial Agricultural Residential real Consumer Total Beginning balance $ 823 $ 3,779 $ 505 $ 2,129 $ 694 $ 7,930 Charge offs (227 ) (42 ) - (30 ) (108 ) (407 ) Recoveries 1 28 - 2 13 44 Provision 838 (842 ) (23 ) 466 161 600 Ending balance $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Commercial & Commercial Agricultural Residential Consumer Total Loans Receivable at Allowance: Ending balance: $ 61 $ - $ - $ 73 $ 4 $ 138 Ending balance: $ 1,374 $ 2,923 $ 482 $ 2,494 $ 756 $ 8,029 Totals $ 1,435 $ 2,923 $ 482 $ 2,567 $ 760 $ 8,167 Loans: Ending balance: $ 700 $ 283 $ - $ 2,111 $ 190 $ 3,284 Ending balance: $ 126,341 $ 340,508 $ 52,012 $ 184,993 $ 64,146 $ 768,000 Totals $ 127,041 $ 340,791 $ 52,012 $ 187,104 $ 64,336 $ 771,284 |
Financing Receivable Credit Quality Indicators [Table Text Block] | ($ in thousands) December 31, 2019 Commercial & Commercial real estate - Commercial real estate - nonowner occupied Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 147,667 $ 96,836 $ 265,839 $ 50,994 $ 190,438 $ 47,787 $ 14,706 $ 814,267 Special Mention (5) 597 - 543 - - - - 1,140 Substandard (6) 1,444 290 1,663 - 2,689 283 32 6,401 Doubtful (7) 1,339 1,362 249 - 32 - - 2,982 Loss (8) - - - - - - - - Total Loans $ 151,047 $ 98,488 $ 268,294 $ 50,994 $ 193,159 $ 48,070 $ 14,738 $ 824,790 December 31, 2018 Commercial & Commercial Commercial Agricultural Residential HELOC Consumer Total Pass (1 - 4) $ 123,861 $ 95,651 $ 243,188 $ 51,702 $ 184,581 $ 47,148 $ 16,854 $ 762,985 Special Mention (5) 680 - 20 310 - - - 1,010 Substandard (6) 2,305 - 1,714 - 2,488 234 100 6,841 Doubtful (7) 195 - 218 - 35 - - 448 Loss (8) - - - - - - - - Total Loans $ 127,041 $ 95,651 $ 245,140 $ 52,012 $ 187,104 $ 47,382 $ 16,954 $ 771,284 |
Financing Receivable, Past Due [Table Text Block] | ($ in thousands) 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Commercial & industrial $ 64 $ - $ 312 $ 376 $ 150,671 $ 151,047 Commercial real estate - owner occupied - - - - 98,488 98,488 Commercial real estate - nonowner occupied - - 215 215 268,079 268,294 Agricultural 13 - - 13 50,981 50,994 Residential real estate 309 415 644 1,368 191,791 193,159 HELOC 166 91 56 313 47,757 48,070 Consumer 65 93 14 172 14,566 14,738 Total Loans $ 617 $ 599 $ 1,241 $ 2,457 $ 822,333 $ 824,790 December 31, 2018 30-59 Days 60-89 Days Greater Than Total Past Current Total Loans Commercial & industrial $ 120 $ - $ 661 $ 781 $ 126,260 $ 127,041 Commercial real estate - owner occupied - - - - 95,651 95,651 Commercial real estate - nonowner occupied 342 1 - 343 244,797 245,140 Agricultural - - - - 52,012 52,012 Residential real estate 2,391 824 372 3,587 183,517 187,104 HELOC 163 16 55 234 47,148 47,382 Consumer 14 63 23 100 16,854 16,954 Total Loans $ 3,030 $ 904 $ 1,111 $ 5,045 $ 766,239 $ 771,284 |
Impaired Financing Receivables [Table Text Block] | ($ in thousands) Recorded Unpaid Principal Related Average Recorded Interest Income Twelve Months Ended December 31, 2019 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 722 $ 1,092 $ - $ 1,377 $ 114 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied 196 197 - 259 21 Agricultural - - - - - Residential real estate 1,621 1,687 - 2,001 106 HELOC 16 16 18 1 Consumer 15 15 - 19 1 With a specific allowance recorded: Commercial & industrial 1,000 1,000 511 823 49 Commercial real estate - owner occupied 1,362 1,362 147 1,362 38 Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 653 653 68 666 31 HELOC - - - - - Consumer - - - - - Totals: Commercial & industrial $ 1,722 $ 2,092 $ 511 $ 2,200 $ 163 Commercial real estate - owner occupied $ 1,362 $ 1,362 $ 147 $ 1,362 $ 38 Commercial real estate - nonowner occupied $ 196 $ 197 $ - $ 259 $ 21 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 2,274 $ 2,340 $ 68 $ 2,667 $ 137 HELOC $ 16 $ 16 $ - $ 18 $ 1 Consumer $ 15 $ 15 $ - $ 19 $ 1 ($ in thousands) Recorded Unpaid Principal Related Average Recorded Interest Income Twelve Months Ended December 31, 2018 Investment Balance Allowance Investment Recognized With no related allowance recorded: Commercial & industrial $ 575 $ 802 $ - $ 370 $ 21 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied 283 283 - 336 21 Agricultural - - - - - Residential real estate 1,249 1,292 - 1,995 91 HELOC 20 20 - 21 1 Consumer 93 93 - 104 7 With a specific allowance recorded: Commercial & industrial 125 125 61 127 21 Commercial real estate - owner occupied - - - - - Commercial real estate - nonowner occupied - - - - - Agricultural - - - - - Residential real estate 862 888 73 426 20 HELOC - - - - - Consumer 77 77 4 91 6 Totals: Commercial & industrial $ 700 $ 927 $ 61 $ 497 $ 42 Commercial real estate - owner occupied $ - $ - $ - $ - $ - Commercial real estate - nonowner occupied $ 283 $ 283 $ - $ 336 $ 21 Agricultural $ - $ - $ - $ - $ - Residential real estate $ 2,111 $ 2,180 $ 73 $ 2,421 $ 111 HELOC $ 20 $ 20 $ - $ 21 $ 1 Consumer $ 170 $ 170 $ 4 $ 195 $ 13 |
Financing Receivable, Troubled Debt Restructuring [Table Text Block] | ($ in thousands) Number of Pre-Modification Post Commercial & industrial 3 $ 763 $ 763 Total modifications 3 $ 763 $ 763 Interest Total Only Term Combination Modification Commercial & industrial $ 150 $ 613 $ - $ 763 Total modifications $ 150 $ 613 $ - $ 763 |
Mortgage Banking and Servicin_2
Mortgage Banking and Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Servicing Rights [Abstract] | |
Servicing Asset at Amortized Cost [Table Text Block] | ($ in thousands) 2019 2018 Carrying amount, beginning of year $ 11,365 $ 9,907 Mortgage servicing rights capitalized during the year 2,872 2,749 Mortgage servicing rights amortization during the year (2,126 ) (1,230 ) Net change in valuation allowance (1,094 ) (61 ) Carrying amount, end of year $ 11,017 $ 11,365 Valuation allowance: Beginning of year $ 212 $ 151 Increase (reduction) 1,094 61 End of year $ 1,306 $ 212 Fair value, beginning of period $ 12,672 $ 11,338 Fair value, end of period $ 11,864 $ 12,672 |
Derivative Financial Instrume_2
Derivative Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments in Statement of Financial Position, Fair Value [Table Text Block] | December 31, 2019 December 31, 2018 ($ in thousands) Notional Fair Notional Fair Amount Value Amount Value Asset Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 82,826 $ 2,846 $ 49,927 $ 687 IRLCs 16,347 55 9,896 83 Total contracts $ 99,173 $ 2,901 $ 59,823 $ 770 Liability Derivatives Derivatives not designated as hedging instruments Interest rate swaps associated with loans $ 82,826 $ (2,846 ) $ 49,927 $ (687 ) Forward contracts 22,000 (32 ) 14,500 (113 ) Total contracts $ 104,826 $ (2,878 ) $ 64,427 $ (800 ) |
Condensed Financial Statements [Table Text Block] | Amount of gain (loss) ($ in thousands) Statement of income classification 2019 2018 Interest rate swap contracts Other income $ 513 $ 146 Interest rate swap contracts Other expense (41 ) - IRLCs Gain on sale of mortgage loans & OMSR (28 ) 76 Forward contracts Gain on sale of mortgage loans & OMSR 81 (90 ) |
Offsetting Assets [Table Text Block] | ($ in thousands) Gross amounts Gross amounts Net amounts of Gross amounts not offset in the of recognized consolidated the consolidated Financial Cash collateral Net amount December 31, 2019 $ 2,901 $ 55 $ 2,846 $ - $ - $ 2,846 December 31, 2018 $ 1,272 $ 585 $ 687 $ - $ 310 $ 377 |
Offsetting Liabilities [Table Text Block] | ($ in thousands) Gross amounts Gross amounts Net amounts of Gross amounts not offset in the of recognized consolidated the consolidated Financial Cash collateral Net amount December 31, 2019 $ 2,901 $ 55 $ 2,846 $ - $ 3,242 $ (396 ) December 31, 2018 $ 1,272 $ 585 $ 687 $ - $ - $ 687 |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Property, Plant and Equipment [Table Text Block] | ($ in thousands) 2019 2018 Land $ 3,945 $ 3,561 Buildings and improvements 26,953 24,251 Equipment 10,786 11,995 Construction in process 128 1,098 41,812 40,905 Less accumulated depreciation (18,427 ) (18,821 ) Net premises and equipment $ 23,385 $ 22,084 |
Goodwill and Intangibles (Table
Goodwill and Intangibles (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Finite-Lived Intangible Assets [Table Text Block] | 2019 2018 ($ in thousands) Gross Carrying Accumulated Gross Carrying Accumulated Amount Amortization Amount Amortization Core deposits intangible $ 4,698 $ (4,692 ) $ 4,698 $ (4,688 ) Customer relationship intangible 200 (166 ) 200 (162 ) Banking intangibles $ 4,898 $ (4,858 ) $ 4,898 $ (4,850 ) |
Interest-Bearing Deposits (Tabl
Interest-Bearing Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Scheduled maturities of time deposit | ($ in thousands) 2020 $ 154,391 2021 64,146 2022 26,932 2023 9,005 2024 3,097 Thereafter 182 Total $ 257,753 |
Short-Term Borrowings (Tables)
Short-Term Borrowings (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt [Table Text Block] | ($ in thousands) 2019 2018 Securities Sold Under Repurchase Agreements $ 12,945 $ 15,184 |
Federal Home Loan Bank Advanc_2
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block] | ($ in thousands) Debt 2020 $ 8,000 2021 2,500 2022 3,000 2023 2,500 Total $ 16,000 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | For The Year Ended ($ in thousands) 2019 2018 Taxes currently payable $ 2,938 $ 2,482 Deferred provision (279 ) 324 Income tax expense $ 2,659 $ 2,806 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | For The Year Ended ($ in thousands) 2019 2018 Computed at the statutory rate (21%) $ 3,073 $ 3,033 Increase (decrease) resulting from Tax exempt interest (113 ) (118 ) BOLI income (71 ) (75 ) Stock compensation (45 ) (43 ) Other (185 ) 9 Actual tax expense $ 2,659 $ 2,806 |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | For The Year Ended ($ in thousands) 2019 2018 Deferred tax assets Allowance for loan losses $ 1,838 $ 1,715 Net deferred loan fees 53 61 Unrealized losses on available-for-sale securities - 147 Other 659 215 2,550 2,138 Deferred tax liabilities Depreciation (1,009 ) (950 ) Mortgage servicing rights (2,378 ) (2,464 ) Unrealized gains on available-for-sale securities (175 ) - Purchase accounting adjustments (1,227 ) (1,162 ) Prepaids (447 ) (205 ) FHLB stock dividends (288 ) (288 ) (5,524 ) (5,069 ) Net deferred tax liability $ (2,974 ) $ (2,931 ) |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Stockholders' Equity Note [Abstract] | |
Reclassification out of Accumulated Other Comprehensive Income [Table Text Block] | ($ in thousands) 2019 2018 Affected Line Item in Income Statement Realized gains included in net income $ 206 $ 70 Gains on investment securities 206 70 Income before income taxes Tax effect (43 ) (15 ) Provision for income taxes Net of Tax $ 163 $ 55 Net income |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Regulatory Matters [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Procedures ($ in thousands) Amount Ratio Amount Ratio Amount Ratio As of December 31, 2019 Tier I Capital to average assets $ 116,884 11.36 % $ 41,165 4.0 % $ 51,456 5.0 % Tier I Common equity capital to risk-weighted assets 116,884 12.46 % 42,204 4.5 % 60,962 6.5 % Tier I Capital to risk-weighted assets 116,884 12.46 % 56,273 6.0 % 75,030 8.0 % Total Risk-based capital to risk-weighted assets 125,639 13.40 % 75,030 8.0 % 93,788 10.0 % As of December 31, 2018 Tier I Capital to average assets $ 110,022 11.23 % $ 39,183 4.0 % $ 48,979 5.0 % Tier I Common equity capital to risk-weighted assets 110,022 12.57 % 39,386 4.5 % 56,890 6.5 % Tier I Capital to risk-weighted assets 110,022 12.57 % 52,514 6.0 % 70,019 8.0 % Total Risk-based capital to risk-weighted assets 118,189 13.50 % 70,019 8.0 % 87,524 10.0 % |
Share Based Compensation Plan (
Share Based Compensation Plan (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Share-based Payment Arrangement, Option, Activity [Table Text Block] | Shares Weighted-Average Weighted-Average Aggregate Outstanding, beginning of year 64,000 $ 6.99 Granted - - Exercised (35,750 ) 7.00 Forfeited - - Expired - - Outstanding, end of year 28,250 $ 6.98 0.13 $ 359,058 Exercisable, end of year 28,250 $ 6.98 0.13 $ 359,058 |
Share-based Payment Arrangement, Restricted Stock and Restricted Stock Unit, Activity [Table Text Block] | Shares Weighted-Average Nonvested, beginning of year 46,894 $ 16.31 Granted 27,590 18.06 Vested (25,010 ) 16.05 Forfeited (5,733 ) 17.53 Nonvested, end of year 43,741 $ 17.41 |
Disclosures About Fair Value _2
Disclosures About Fair Value of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Assets Measured on Recurring Basis [Table Text Block] | Fair Value Measurements Using: ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 12,202 $ - $ 12,202 $ - Mortgage-backed securities 78,182 - 78,182 - State and political subdivisions 10,564 - 10,564 - Interest rate contracts - assets 2,846 - 2,846 - Interest rate contracts - liabilities (2,846 ) - (2,846 ) - Forward contracts (32 ) (32 ) - - IRLCs 55 55 Fair Value Measurements Using: ($ in thousands) Fair Values at (Level 1) (Level 2) (Level 3) U.S. Treasury and Government Agencies $ 18,670 $ - $ 18,670 $ - Mortgage-backed securities 60,943 - 60,943 - State and political subdivisions 11,356 - 11,356 - Interest rate contracts - assets 687 - 687 - Interest rate contracts - liabilities (687 ) - (687 ) - Forward contracts (113 ) (113 ) - - IRLCs 83 83 |
Fair Value Measurements, Nonrecurring [Table Text Block] | ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 2,527 $ - $ - $ 2,527 Mortgage servicing rights 5,084 - - 5,084 IRLCs 55 55 ($ in thousands) Fair values at (Level 1) (Level 2) (Level 3) Impaired loans $ 1,027 $ - $ - $ 1,027 Mortgage servicing rights 3,191 - - 3,191 IRLCs 83 83 |
Fair Value Measurement Inputs and Valuation Techniques [Table Text Block] | Fair value at Valuation Range (weighted- ($ in thousands) 12/31/2019 technique Unobservable inputs average) Collateral-dependent impaired loans $ 2,527 Market comparable properties Comparability adjustments (%) 2 - 62% (28%) Mortgage servicing rights 5,084 Discounted cash flow Discount Rate 9.36 % Constant prepayment rate 10.19 % IRLCs 55 Discounted cash flow P&I earnings credit 1.78 % T&I earnings credit 1.93 % Inflation for cost of servicing 1.50 % Fair Value at Valuation Range (weighted- ($ in thousands) 12/31/2018 technique Unobservable inputs average) Collateral-dependent impaired loans $ 1,027 Market comparable properties Comparability adjustments (%) 20 - 35% (29%) Mortgage servicing rights 3,191 Discounted cash flow Discount Rate 10.30 % Constant prepayment rate 7.02 % IRLCs 83 Discounted cash flow P&I earnings credit 2.51 % T&I earnings credit 3.02 % Inflation for cost of servicing 1.50 % |
Fair Value, by Balance Sheet Grouping [Table Text Block] | ($ in thousands) Carrying Fair Fair value measurements using December 31, 2019 amount value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 27,064 $ 27,064 $ 27,064 $ - $ - Loans held for sale 7,258 7,419 - 7,419 - Loans, net of allowance for loan losses 816,755 804,808 - - 804,808 Federal Reserve and FHLB Bank stock, at cost 4,648 4,648 - 4,648 - Interest receivable 3,106 3,106 - 3,106 - Financial liabilities Deposits $ 840,219 $ 840,272 $ 582,466 $ 257,806 $ - Repurchase agreements 12,945 12,945 - 12,945 - FHLB advances 16,000 16,149 - 16,149 - Trust preferred securities 10,310 9,201 - 9,201 - Interest payable 1,191 1,191 - 1,191 - ($ in thousands) Carrying Fair Fair value measurements using December 31, 2018 amount value (Level 1) (Level 2) (Level 3) Financial assets Cash and due from banks $ 48,363 $ 48,363 $ 48,363 $ - $ - Loans held for sale 4,445 4,589 - 4,589 - Loans, net of allowance for loan losses 763,716 757,469 - - 757,469 Federal Reserve and FHLB Bank stock, at cost 4,123 4,123 - 4,123 - Interest receivable 2,822 2,822 - 2,822 - Financial liabilities Deposits $ 802,552 $ 799,726 $ 561,090 $ 238,636 $ - Repurchase agreements 15,184 15,184 - 15,184 - FHLB advances 16,000 15,848 - 15,848 - Trust preferred securities 10,310 10,233 - 10,233 - Interest payable 909 909 - 909 - |
Parent Company Financial Info_2
Parent Company Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Condensed Balance Sheet [Table Text Block] | Condensed Balance Sheets ($ in thousands) 2019 2018 Assets Cash & cash equivalents $ 7,457 $ 14,038 Investment in banking subsidiaries 134,244 126,507 Investment in nonbanking subsidiaries 4,883 1,232 Other assets 192 224 Total assets $ 146,776 $ 142,001 Liabilities Trust preferred securities $ 10,000 $ 10,000 Borrowings from nonbanking subsidiaries 310 310 Other liabilities & accrued interest payable 372 1,256 Total liabilities 10,682 11,566 Stockholders’ equity 136,094 130,435 Total liabilities and stockholders’ equity $ 146,776 $ 142,001 |
Condensed Income Statement [Table Text Block] | Condensed Statements of Income ($ in thousands) 2019 2018 Dividends from subsidiaries: Banking subsidiaries $ 6,000 $ - Nonbanking subsidiaries 575 - Total income 6,575 - Expenses Interest expense 414 401 Other expense 1,773 1,327 Total expenses 2,187 1,728 Income before income tax 4,388 (1,728 ) Income tax benefit (508 ) (409 ) Income before equity in undistributed income of subsidiaries 4,896 (1,319 ) Equity in undistributed income of subsidiaries Banking subsidiaries 6,526 12,942 Nonbanking subsidiaries 551 15 Total 7,077 12,957 Net income 11,973 11,638 Preferred stock dividends 950 975 Net income available to common shareholders $ 11,023 $ 10,663 Condensed Statements of Comprehensive Income ($ in thousands) 2019 2018 Net income $ 11,973 $ 11,638 Other comprehensive income: Available-for-sale investment securities: Gross unrealized holding gain (loss) arising in the period 1,327 (590 ) Related tax (expense) benefit (279 ) 124 Less: reclassification adjustment for gain realized in income 206 70 Related tax expense (43 ) (15 ) Net effect on other comprehensive income 1,211 (411 ) Total comprehensive income $ 13,184 $ 11,227 |
Condensed Cash Flow Statement [Table Text Block] | Condensed Statements of Cash Flows ($ in thousands) 2019 2018 Operating activities Net income $ 11,973 $ 11,638 Items not requiring (providing) cash Equity in undistributed net income of subsidiaries (7,077 ) (12,957 ) Stock compensation expense 417 278 Other assets 32 44 Other liabilities (884 ) (79 ) Net cash provided by (used in) operating activities 4,461 (1,076 ) Investing activities Capital contributed to banking subsidiary - (12,500 ) Capital contributed to nonbanking subsidiary (3,100 ) - Net cash used in investing activities (3,100 ) (12,500 ) Financing activities Dividends on common shares (2,331 ) (2,090 ) Dividends on preferred shares (950 ) (975 ) Proceeds from issuance of common shares 139 27,912 Conversion of preferred shares (1 ) - Proceeds from share-based compensation plans 251 192 Repurchase of common shares (5,050 ) (109 ) Net cash provided by (used in) financing activities (7,942 ) 24,930 Net change in cash and cash equivalents (6,581 ) 11,354 Cash and cash equivalents at beginning of year 14,038 2,684 Cash and cash equivalents at end of year $ 7,457 $ 14,038 |
Quarterly Financial Informati_2
Quarterly Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Information [Table Text Block] | ($ in thousands, except per share data) 2019 December September June March Interest income $ 11,205 $ 11,546 $ 11,151 $ 10,498 Interest expense 2,609 2,488 2,319 2,158 Net interest income 8,596 9,058 8,832 8,340 Provision for loan losses 300 300 200 - Noninterest income 5,959 5,366 3,691 3,000 Noninterest expense 10,176 9,500 9,108 8,626 Income tax expense 721 862 588 488 Net income 3,358 3,762 2,627 2,226 Preferred share dividend 230 233 243 244 Net income available to common $ 3,128 $ 3,529 $ 2,384 $ 1,982 Basic earnings per common share $ 0.48 $ 0.55 $ 0.37 $ 0.31 Diluted earnings per common share $ 0.42 $ 0.48 $ 0.33 $ 0.28 Dividends per share $ 0.095 $ 0.090 $ 0.090 $ 0.085 2018 December September June March Interest income $ 10,638 $ 10,258 $ 9,732 $ 8,851 Interest expense 2,024 1,729 1,308 1,151 Net interest income 8,614 8,529 8,424 7,700 Provision for loan losses - - 300 300 Noninterest income 3,930 4,202 4,249 4,243 Noninterest expense 8,852 8,789 8,579 8,627 Income tax expense 732 824 687 563 Net income 2,960 3,118 3,107 2,453 Preferred share dividend 243 244 244 244 Net income available to common $ 2,717 $ 2,874 $ 2,863 $ 2,209 Basic earnings per common share $ 0.42 $ 0.45 $ 0.45 $ 0.40 Diluted earnings per common share $ 0.37 $ 0.39 $ 0.40 $ 0.35 Dividends per share $ 0.085 $ 0.080 $ 0.080 $ 0.075 |
Organization and Summary of S_2
Organization and Summary of Significant Accounting Policies (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |
Federal insured limit | $ 2.9 |
Cash held by the FRB and the FHLB | 9.5 |
Right of use asset | 0.2 |
Lease obligation liability | $ 0.2 |
Minimum [Member] | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |
Intangible assets, weighted-average periods | 1 year |
Software amortized period | 1 year |
Maximum [Member] | |
Organization and Summary of Significant Accounting Policies (Details) [Line Items] | |
Intangible assets, weighted-average periods | 15 years |
Software amortized period | 3 years |
Earnings Per Share (Details) -
Earnings Per Share (Details) - Summary of earnings per share - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summary of earnings per share [Abstract] | ||
Distributed earnings allocated to common shares | $ 2,331 | $ 2,090 |
Undistributed earnings allocated to common shares | 8,675 | 8,558 |
Net earnings allocated to common shares | 11,006 | 10,648 |
Net earnings allocated to participating securities | 17 | 15 |
Dividends on convertible preferred shares | 950 | 975 |
Net Income allocated to common shares and participating securities | $ 11,973 | $ 11,638 |
Weighted average shares outstanding for basic earnings per share (in Shares) | 6,456 | 6,198 |
Dilutive effect of stock compensation (in Shares) | 46 | 61 |
Dilutive effect of preferred convertible shares (in Shares) | 1,433 | 1,460 |
Weighted average shares outstanding for diluted earnings per share (in Shares) | 7,935 | 7,719 |
Basic earnings per common share (in Dollars per share) | $ 1.71 | $ 1.72 |
Diluted earnings per common share (in Dollars per share) | $ 1.51 | $ 1.51 |
Available-for-Sale Securities_2
Available-for-Sale Securities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Securities [Abstract] | ||
Fair value of securities pledged as collateral | $ 30,700 | $ 34,800 |
Securities delivered for repurchase agreements | 17,900 | 19,500 |
Gross gains realized from sales of available-for-sale securities | 200 | 70 |
Tax expense for net security gains | 10 | 40 |
Fair value investments | $ 59,000 | $ 38,800 |
Fair value as a percentage of available-for-sale investment portfolio | 65.00% | 38.00% |
Unrealized loss on the securities portfolio | $ 980 |
Available-for-Sale Securities_3
Available-for-Sale Securities (Details) - Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Available-for-Sale Securities (Details) - Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | $ 100,114 | $ 91,668 |
Gross Unrealized Gains | 1,039 | 481 |
Gross Unrealized Losses | (205) | (1,180) |
Fair Value | 100,948 | 90,969 |
US Treasury and Government [Member] | ||
Available-for-Sale Securities (Details) - Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 12,023 | 18,597 |
Gross Unrealized Gains | 181 | 187 |
Gross Unrealized Losses | (2) | (114) |
Fair Value | 12,202 | 18,670 |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-Sale Securities (Details) - Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 77,892 | 61,868 |
Gross Unrealized Gains | 492 | 114 |
Gross Unrealized Losses | (202) | (1,039) |
Fair Value | 78,182 | 60,943 |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-Sale Securities (Details) - Summary of amortized cost and fair values with gross unrealized gains and losses of available-for-sale securities [Line Items] | ||
Amortized Cost | 10,199 | 11,203 |
Gross Unrealized Gains | 366 | 180 |
Gross Unrealized Losses | (1) | (27) |
Fair Value | $ 10,564 | $ 11,356 |
Available-for-Sale Securities_4
Available-for-Sale Securities (Details) - Summary of amortized cost and fair value of securities available-for-sale by contractual maturity $ in Thousands | Dec. 31, 2019USD ($) |
Amortized Cost [Member] | |
Available-for-Sale Securities (Details) - Summary of amortized cost and fair value of securities available-for-sale by contractual maturity [Line Items] | |
Available for Sale, Amortized Cost, Within one year | $ 3,566 |
Available for Sale, Amortized Cost, Due after one year through five years | 7,209 |
Available for Sale, Amortized Cost, Due after ten years | 5,783 |
Available for Sale, Amortized Cost, Due after ten years | 5,664 |
Available for Sale, Amortized Cost | 22,222 |
Available for Sale, Amortized Cost, Mortgage-backed securities | 77,892 |
Available for Sale, Amortized Cost, Totals | 100,114 |
Fair Value [Member] | |
Available-for-Sale Securities (Details) - Summary of amortized cost and fair value of securities available-for-sale by contractual maturity [Line Items] | |
Available for Sale, Fair Value, Within one year | 3,571 |
Available for Sale, Fair Value, Due after one year through five years | 7,340 |
Available for Sale, Fair Value, Due after five years through ten years | 5,954 |
Available for Sale, Fair Value, Due after ten years | 5,901 |
Available for Sale, Fair Value | 22,766 |
Available for Sale, Fair Value, Mortgage-backed securities | 78,182 |
Available for Sale, Fair Value, Totals | $ 100,948 |
Available-for-Sale Securities_5
Available-for-Sale Securities (Details) - Summary of securities with unrealized losses - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Available-for-Sale Securities (Details) - Summary of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | $ 31,903 | $ 12,447 |
Less than 12 Months, Unrealized Losses | (159) | (68) |
12 Months or Longer, Fair Value | 6,862 | 46,524 |
12 Months or Longer, Unrealized Losses | (46) | (1,112) |
Total Fair Value | 38,765 | 58,971 |
Total Unrealized Losses | (205) | (1,180) |
US Treasury and Government [Member] | ||
Available-for-Sale Securities (Details) - Summary of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | 872 | 1,417 |
Less than 12 Months, Unrealized Losses | (1) | (8) |
12 Months or Longer, Fair Value | 2,598 | 7,870 |
12 Months or Longer, Unrealized Losses | (1) | (106) |
Total Fair Value | 3,470 | 9,287 |
Total Unrealized Losses | (2) | (114) |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-Sale Securities (Details) - Summary of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | 30,692 | 10,613 |
Less than 12 Months, Unrealized Losses | (157) | (54) |
12 Months or Longer, Fair Value | 4,264 | 37,495 |
12 Months or Longer, Unrealized Losses | (45) | (985) |
Total Fair Value | 34,956 | 48,108 |
Total Unrealized Losses | (202) | (1,039) |
US States and Political Subdivisions Debt Securities [Member] | ||
Available-for-Sale Securities (Details) - Summary of securities with unrealized losses [Line Items] | ||
Less than 12 Months, Fair Value | 339 | 417 |
Less than 12 Months, Unrealized Losses | (1) | (6) |
12 Months or Longer, Fair Value | 1,159 | |
12 Months or Longer, Unrealized Losses | (21) | |
Total Fair Value | 339 | 1,576 |
Total Unrealized Losses | $ (1) | $ (27) |
Loans and Allowance for Loan _3
Loans and Allowance for Loan Losses (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Receivables [Abstract] | |
Principal amount outstanding of loans held-in-portfolio | $ 100,000 |
Impaired loans which included in groups of homogenous loans | Impaired loans less than $100,000 are included in groups of homogenous loans. |
Loans and Allowance for Loan _4
Loans and Allowance for Loan Losses (Details) - Summary of categories of loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | $ 824,790 | $ 771,284 |
Nonaccrual Loans | 5,500 | 2,906 |
Net deferred costs | 720 | 599 |
Total Loans, net deferred costs | 825,510 | 771,883 |
Allowance for loan losses | 8,755 | 8,167 |
Commercial and Industrial Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 151,047 | 127,041 |
Nonaccrual Loans | 1,772 | 731 |
Commercial Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 98,488 | 95,651 |
Nonaccrual Loans | 1,362 | |
Commercial Real Estate - Nonowner Occupied [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 268,294 | 245,140 |
Nonaccrual Loans | 464 | 218 |
Agricultural Sector [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 50,994 | 52,012 |
Nonaccrual Loans | ||
Residential Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 193,159 | 187,104 |
Nonaccrual Loans | 1,635 | 1,738 |
Home Equity Line of Credit [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 48,070 | 47,382 |
Nonaccrual Loans | 249 | 208 |
Consumer Portfolio Segment [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Loans | 14,738 | 16,954 |
Nonaccrual Loans | $ 18 | $ 11 |
Loans and Allowance for Loan _5
Loans and Allowance for Loan Losses (Details) - Summary loan commitments, unused lines of credit and standby letters of credit - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loans and Allowance for Loan Losses (Details) - Summary loan commitments, unused lines of credit and standby letters of credit [Line Items] | ||
Letters of credit outstanding, Amount | $ 190,512 | $ 170,876 |
Unused lines of Credit [Member] | ||
Loans and Allowance for Loan Losses (Details) - Summary loan commitments, unused lines of credit and standby letters of credit [Line Items] | ||
Letters of credit outstanding, Amount | 187,855 | 168,731 |
Standby Letters of Credit [Member] | ||
Loans and Allowance for Loan Losses (Details) - Summary loan commitments, unused lines of credit and standby letters of credit [Line Items] | ||
Letters of credit outstanding, Amount | $ 2,657 | $ 2,145 |
Loans and Allowance for Loan _6
Loans and Allowance for Loan Losses (Details) - Summary of allowance for loan and lease losses and recorded investment in loans based on portfolio segment and impairment method - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | $ 8,167 | $ 2,129 |
Ending balance | 8,755 | 8,167 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 726 | 61 |
Ending balance: collectively evaluated for impairment | 8,029 | 1,374 |
Totals | 8,755 | 1,435 |
Loans: | ||
Ending balance: individually evaluated for impairment | 5,585 | 700 |
Ending balance: collectively evaluated for impairment | 819,205 | 126,341 |
Totals | 824,790 | 771,284 |
Charge offs | (259) | (30) |
Recoveries | 47 | 2 |
Provision | 800 | 466 |
Commercial and Industrial [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 1,435 | 823 |
Ending balance | 1,883 | 1,435 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 511 | |
Ending balance: collectively evaluated for impairment | 1,372 | 2,923 |
Totals | 1,883 | 2,923 |
Loans: | ||
Ending balance: individually evaluated for impairment | 1,722 | 283 |
Ending balance: collectively evaluated for impairment | 149,325 | 340,508 |
Totals | 151,047 | 340,791 |
Charge offs | (143) | (227) |
Recoveries | 9 | 1 |
Provision | 582 | 838 |
Commercial Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 2,923 | 3,779 |
Ending balance | 3,602 | 2,923 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 147 | |
Ending balance: collectively evaluated for impairment | 3,455 | 482 |
Totals | 3,602 | 482 |
Loans: | ||
Ending balance: individually evaluated for impairment | 1,558 | |
Ending balance: collectively evaluated for impairment | 365,224 | 52,012 |
Totals | 98,488 | 95,651 |
Charge offs | (42) | |
Recoveries | 1 | 28 |
Provision | 678 | (842) |
Agricultural & farmland [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 482 | 505 |
Ending balance | 434 | 482 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 73 | |
Ending balance: collectively evaluated for impairment | 434 | 2,494 |
Totals | 434 | 2,567 |
Loans: | ||
Ending balance: individually evaluated for impairment | 2,111 | |
Ending balance: collectively evaluated for impairment | 50,994 | 184,993 |
Totals | 50,994 | 187,104 |
Provision | (48) | (23) |
Residential Real Estate [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 2,567 | 694 |
Ending balance | 2,203 | 2,567 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 68 | 4 |
Ending balance: collectively evaluated for impairment | 2,135 | 756 |
Totals | 2,203 | 760 |
Loans: | ||
Ending balance: individually evaluated for impairment | 2,274 | 190 |
Ending balance: collectively evaluated for impairment | 190,885 | 64,146 |
Totals | 193,159 | 187,104 |
Charge offs | (53) | (108) |
Recoveries | 14 | 13 |
Provision | (325) | 161 |
Consumer [Member] | ||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||
Beginning balance | 760 | 7,930 |
Ending balance | 633 | 760 |
Allowance: | ||
Ending balance: individually evaluated for impairment | 138 | |
Ending balance: collectively evaluated for impairment | 633 | 8,029 |
Totals | 633 | 8,167 |
Loans: | ||
Ending balance: individually evaluated for impairment | 31 | 3,284 |
Ending balance: collectively evaluated for impairment | 62,777 | 768,000 |
Totals | 62,808 | 771,284 |
Charge offs | (63) | (407) |
Recoveries | 23 | 44 |
Provision | $ (87) | $ 600 |
Loans and Allowance for Loan _7
Loans and Allowance for Loan Losses (Details) - Summary of credit risk profile of the Company's loan portfolio based on rating category - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 824,790 | $ 771,284 |
Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 151,047 | 340,791 |
Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 98,488 | 95,651 |
Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 268,294 | 245,140 |
Agricultural Farmland Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 50,994 | 52,012 |
Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 193,159 | 187,104 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 48,070 | 47,382 |
Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,738 | 16,954 |
Pass [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 814,267 | 184,581 |
Pass [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 147,667 | 123,861 |
Pass [Member] | Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 96,836 | 95,651 |
Pass [Member] | Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 265,839 | 243,188 |
Pass [Member] | Agricultural Farmland Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 50,994 | 51,702 |
Pass [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 190,438 | |
Pass [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 47,787 | |
Pass [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,706 | |
Special Mention [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,140 | 1,010 |
Special Mention [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 597 | 680 |
Special Mention [Member] | Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Special Mention [Member] | Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 543 | 20 |
Special Mention [Member] | Agricultural Farmland Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 310 | |
Special Mention [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Substandard [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,401 | 2,488 |
Substandard [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,444 | 2,305 |
Substandard [Member] | Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 290 | |
Substandard [Member] | Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,663 | 1,714 |
Substandard [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,689 | |
Substandard [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 283 | |
Substandard [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 32 | |
Doubtful [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,982 | 35 |
Doubtful [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,339 | 195 |
Doubtful [Member] | Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,362 | |
Doubtful [Member] | Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 249 | 218 |
Doubtful [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 32 | |
Loss [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Commercial and Industrial [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Commercial real estate - owner occupied [Member ] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Agricultural Farmland Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Residential Real Estate [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | ||
Loss [Member] | Consumer Portfolio Segment [Member] | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans |
Loans and Allowance for Loan _8
Loans and Allowance for Loan Losses (Details) - Summary of loan portfolio aging analysis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 2,457 | $ 5,045 |
Current | 822,333 | 766,239 |
Total Loans Receivable | 824,790 | 771,284 |
Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 376 | 781 |
Current | 150,671 | 126,260 |
Total Loans Receivable | 151,047 | 127,041 |
Commercial Real Estate - Nonowner Occupied [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Current | 98,488 | 95,651 |
Total Loans Receivable | 268,294 | 245,140 |
Commercial real estate & construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 215 | 343 |
Current | 268,079 | 244,797 |
Total Loans Receivable | 268,294 | 245,140 |
Agricultural & farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13 | |
Current | 50,981 | 52,012 |
Total Loans Receivable | 50,994 | 187,104 |
Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,368 | 3,587 |
Current | 191,791 | 183,517 |
Total Loans Receivable | 193,159 | 187,104 |
Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 313 | 234 |
Current | 47,757 | 47,148 |
Total Loans Receivable | 48,070 | 47,382 |
Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 172 | 100 |
Current | 14,566 | 16,854 |
Total Loans Receivable | 62,808 | 771,284 |
Financial Asset, 30 to 59 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 617 | 3,030 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 64 | 120 |
Financial Asset, 30 to 59 Days Past Due [Member] | Commercial real estate & construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 342 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Agricultural & farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 13 | |
Financial Asset, 30 to 59 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 309 | 2,391 |
Financial Asset, 30 to 59 Days Past Due [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 166 | 163 |
Financial Asset, 30 to 59 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 65 | 14 |
Financial Asset, 60 to 89 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 599 | 904 |
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Commercial real estate & construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1 | |
Financial Asset, 60 to 89 Days Past Due [Member] | Agricultural & farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Financial Asset, 60 to 89 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 415 | 824 |
Financial Asset, 60 to 89 Days Past Due [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 91 | 16 |
Financial Asset, 60 to 89 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 93 | 63 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 1,241 | 1,111 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 312 | 661 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Commercial real estate & construction [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 215 | |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Agricultural & farmland [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | ||
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Residential Portfolio Segment [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 644 | 372 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Home Equity Line of Credit [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | 56 | 55 |
Financial Asset, Equal to or Greater than 90 Days Past Due [Member] | Consumer [Member] | ||
Financing Receivable, Past Due [Line Items] | ||
Total Past Due | $ 14 | $ 23 |
Loans and Allowance for Loan _9
Loans and Allowance for Loan Losses (Details) - Summary of impaired loan activity - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Commercial and Industrial Sector [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | $ 722 | $ 575 |
With no related allowance recorded, Unpaid Principal Balance | 1,092 | 802 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,377 | 370 |
With no related allowance recorded, Interest Income Recognized | 114 | 21 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 1,000 | 125 |
With a specific allowance recorded, Unpaid Principal Balance | 1,000 | 125 |
With a specific allowance recorded, Related Allowance | 511 | 61 |
With a specific allowance recorded, Average Recorded Investment | 823 | 127 |
With a specific allowance recorded, Interest Income Recognized | 49 | 21 |
Totals: | ||
Total Recorded Investment | 1,722 | 700 |
Total Unpaid Principal Balance | 2,092 | 927 |
Total Related Allowance | 511 | 61 |
Total Average Recorded Investment | 2,200 | 497 |
Total Interest Income Recognized | 163 | 42 |
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 722 | 575 |
With no related allowance recorded, Unpaid Principal Balance | 1,092 | 802 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 1,377 | 370 |
With no related allowance recorded, Interest Income Recognized | 114 | 21 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 1,000 | 125 |
With a specific allowance recorded, Unpaid Principal Balance | 1,000 | 125 |
With a specific allowance recorded, Related Allowance | 511 | 61 |
With a specific allowance recorded, Average Recorded Investment | 823 | 127 |
With a specific allowance recorded, Interest Income Recognized | 49 | 21 |
Totals: | ||
Total Recorded Investment | 1,722 | 700 |
Total Unpaid Principal Balance | 2,092 | 927 |
Total Related Allowance | 511 | 61 |
Total Average Recorded Investment | 2,200 | 497 |
Total Interest Income Recognized | 163 | 42 |
Commercial Real Estate - Nonowner Occupied [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 196 | 283 |
With no related allowance recorded, Unpaid Principal Balance | 197 | 283 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 259 | 336 |
With no related allowance recorded, Interest Income Recognized | 21 | 21 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 1,362 | |
With a specific allowance recorded, Unpaid Principal Balance | 1,362 | |
With a specific allowance recorded, Related Allowance | 147 | |
With a specific allowance recorded, Average Recorded Investment | 1,362 | |
With a specific allowance recorded, Interest Income Recognized | 38 | |
Totals: | ||
Total Recorded Investment | 196 | 283 |
Total Unpaid Principal Balance | 197 | 283 |
Total Average Recorded Investment | 259 | 336 |
Total Interest Income Recognized | 21 | 21 |
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 196 | 283 |
With no related allowance recorded, Unpaid Principal Balance | 197 | 283 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 259 | 336 |
With no related allowance recorded, Interest Income Recognized | 21 | 21 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 1,362 | |
With a specific allowance recorded, Unpaid Principal Balance | 1,362 | |
With a specific allowance recorded, Related Allowance | 147 | |
With a specific allowance recorded, Average Recorded Investment | 1,362 | |
With a specific allowance recorded, Interest Income Recognized | 38 | |
Totals: | ||
Total Recorded Investment | 196 | 283 |
Total Unpaid Principal Balance | 197 | 283 |
Total Average Recorded Investment | 259 | 336 |
Total Interest Income Recognized | 21 | 21 |
Agricultural & farmland [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | ||
With no related allowance recorded, Unpaid Principal Balance | ||
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | ||
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | ||
With a specific allowance recorded, Unpaid Principal Balance | ||
With a specific allowance recorded, Related Allowance | ||
With a specific allowance recorded, Average Recorded Investment | ||
With a specific allowance recorded, Interest Income Recognized | ||
Totals: | ||
Total Recorded Investment | ||
Total Unpaid Principal Balance | ||
Total Related Allowance | ||
Total Average Recorded Investment | ||
Total Interest Income Recognized | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | ||
With no related allowance recorded, Unpaid Principal Balance | ||
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | ||
With no related allowance recorded, Interest Income Recognized | ||
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | ||
With a specific allowance recorded, Unpaid Principal Balance | ||
With a specific allowance recorded, Related Allowance | ||
With a specific allowance recorded, Average Recorded Investment | ||
With a specific allowance recorded, Interest Income Recognized | ||
Totals: | ||
Total Recorded Investment | ||
Total Unpaid Principal Balance | ||
Total Related Allowance | ||
Total Average Recorded Investment | ||
Total Interest Income Recognized | ||
Residential Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 1,621 | 1,249 |
With no related allowance recorded, Unpaid Principal Balance | 1,687 | 1,292 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 2,001 | 1,995 |
With no related allowance recorded, Interest Income Recognized | 106 | 91 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 653 | 862 |
With a specific allowance recorded, Unpaid Principal Balance | 653 | 888 |
With a specific allowance recorded, Related Allowance | 68 | 73 |
With a specific allowance recorded, Average Recorded Investment | 666 | 426 |
With a specific allowance recorded, Interest Income Recognized | 31 | 20 |
Totals: | ||
Total Recorded Investment | 2,274 | 2,111 |
Total Unpaid Principal Balance | 2,340 | 2,180 |
Total Related Allowance | 68 | 73 |
Total Average Recorded Investment | 2,667 | 2,421 |
Total Interest Income Recognized | 137 | 111 |
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 1,621 | 1,249 |
With no related allowance recorded, Unpaid Principal Balance | 1,687 | 1,292 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 2,001 | 1,995 |
With no related allowance recorded, Interest Income Recognized | 106 | 91 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 653 | 862 |
With a specific allowance recorded, Unpaid Principal Balance | 653 | 888 |
With a specific allowance recorded, Related Allowance | 68 | 73 |
With a specific allowance recorded, Average Recorded Investment | 666 | 426 |
With a specific allowance recorded, Interest Income Recognized | 31 | 20 |
Totals: | ||
Total Recorded Investment | 2,274 | 2,111 |
Total Unpaid Principal Balance | 2,340 | 2,180 |
Total Related Allowance | 68 | 73 |
Total Average Recorded Investment | 2,667 | 2,421 |
Total Interest Income Recognized | 137 | 111 |
Home Equity Line of Credit [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 16 | 20 |
With no related allowance recorded, Unpaid Principal Balance | 16 | 20 |
With no related allowance recorded, Average Recorded Investment | 18 | 21 |
With no related allowance recorded, Interest Income Recognized | 1 | 1 |
Totals: | ||
Total Recorded Investment | 16 | 20 |
Total Unpaid Principal Balance | 16 | 20 |
Total Average Recorded Investment | 18 | 21 |
Total Interest Income Recognized | 1 | 1 |
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 16 | 20 |
With no related allowance recorded, Unpaid Principal Balance | 16 | 20 |
With no related allowance recorded, Average Recorded Investment | 18 | 21 |
With no related allowance recorded, Interest Income Recognized | 1 | 1 |
Totals: | ||
Total Recorded Investment | 16 | 20 |
Total Unpaid Principal Balance | 16 | 20 |
Total Average Recorded Investment | 18 | 21 |
Total Interest Income Recognized | 1 | 1 |
Consumer Portfolio Segment [Member] | ||
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 15 | 93 |
With no related allowance recorded, Unpaid Principal Balance | 15 | 93 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 19 | 104 |
With no related allowance recorded, Interest Income Recognized | 1 | 7 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 77 | |
With a specific allowance recorded, Unpaid Principal Balance | 77 | |
With a specific allowance recorded, Related Allowance | 4 | |
With a specific allowance recorded, Average Recorded Investment | 91 | |
With a specific allowance recorded, Interest Income Recognized | 6 | |
Totals: | ||
Total Recorded Investment | 15 | 170 |
Total Unpaid Principal Balance | 15 | 170 |
Total Related Allowance | 4 | |
Total Average Recorded Investment | 19 | 195 |
Total Interest Income Recognized | 1 | 13 |
With no related allowance recorded: | ||
With no related allowance recorded, Recorded Investment | 15 | 93 |
With no related allowance recorded, Unpaid Principal Balance | 15 | 93 |
With no related allowance recorded, Related Allowance | ||
With no related allowance recorded, Average Recorded Investment | 19 | 104 |
With no related allowance recorded, Interest Income Recognized | 1 | 7 |
With a specific allowance recorded: | ||
With a specific allowance recorded, Recorded Investment | 77 | |
With a specific allowance recorded, Unpaid Principal Balance | 77 | |
With a specific allowance recorded, Related Allowance | 4 | |
With a specific allowance recorded, Average Recorded Investment | 91 | |
With a specific allowance recorded, Interest Income Recognized | 6 | |
Totals: | ||
Total Recorded Investment | 15 | 170 |
Total Unpaid Principal Balance | 15 | 170 |
Total Related Allowance | 4 | |
Total Average Recorded Investment | 19 | 195 |
Total Interest Income Recognized | 1 | $ 13 |
Commercial Real Estate [Member] | ||
Totals: | ||
Total Recorded Investment | 1,362 | |
Total Unpaid Principal Balance | 1,362 | |
Total Related Allowance | 147 | |
Total Average Recorded Investment | 1,362 | |
Total Interest Income Recognized | 38 | |
Totals: | ||
Total Recorded Investment | 1,362 | |
Total Unpaid Principal Balance | 1,362 | |
Total Related Allowance | 147 | |
Total Average Recorded Investment | 1,362 | |
Total Interest Income Recognized | $ 38 |
Loans and Allowance for Loan_10
Loans and Allowance for Loan Losses (Details) - Schedule of TDR activity $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | 3 |
Recorded Balance | $ 763 |
Interest Only | 150 |
Term | 613 |
Combination | |
Total Modifications | $ 763 |
Commercial and Industrial [Member] | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | |
Number of Loans | 3 |
Recorded Balance | $ 763 |
Interest Only | 150 |
Term | 613 |
Combination | |
Total Modifications | $ 763 |
Mortgage Banking and Servicin_3
Mortgage Banking and Servicing Rights (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Mortgage Servicing Rights [Abstract] | ||
Unpaid principal balance of mortgage loans | $ 1.2 | $ 1.1 |
Contractually specified servicing fees | $ 2.6 | $ 2.6 |
Mortgage Banking and Servicin_4
Mortgage Banking and Servicing Rights (Details) - Summarizes mortgage servicing rights capitalized and related amortization - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Summarizes mortgage servicing rights capitalized and related amortization [Abstract] | ||
Carrying amount, beginning of year | $ 11,365 | $ 9,907 |
Mortgage servicing rights capitalized during the year | 2,872 | 2,749 |
Mortgage servicing rights amortization during the year | (2,126) | (1,230) |
Net change in valuation allowance | (1,094) | (61) |
Carrying amount, end of year | 11,017 | 11,365 |
Valuation allowance: | ||
Beginning of year | 212 | 151 |
Increase (reduction) | 1,094 | 61 |
End of year | 1,306 | 212 |
Fair value, beginning of period | 12,672 | 11,338 |
Fair value, end of period | $ 11,864 | $ 12,672 |
Derivative Financial Instrume_3
Derivative Financial Instruments (Details) - Schedule of notional amount and fair value of interest rate swaps - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative Financial Instruments (Details) - Schedule of notional amount and fair value of interest rate swaps [Line Items] | ||
Asset Derivatives, Notional Amount | $ 99,173 | $ 59,823 |
Asset Derivatives, Fair Value | 2,901 | 770 |
Liability Derivatives ,Notional Amount | 104,826 | 64,427 |
Liability Derivatives, Fair Value | (2,878) | (800) |
Interest rate swaps associated with loans [Member] | ||
Derivative Financial Instruments (Details) - Schedule of notional amount and fair value of interest rate swaps [Line Items] | ||
Asset Derivatives, Notional Amount | 82,826 | 49,927 |
Asset Derivatives, Fair Value | 2,846 | 687 |
Liability Derivatives ,Notional Amount | 82,826 | 49,927 |
Liability Derivatives, Fair Value | (2,846) | (687) |
IRLCs [Member] | ||
Derivative Financial Instruments (Details) - Schedule of notional amount and fair value of interest rate swaps [Line Items] | ||
Asset Derivatives, Notional Amount | 16,347 | 9,896 |
Asset Derivatives, Fair Value | 55 | 83 |
Forward Contracts [Member] | ||
Derivative Financial Instruments (Details) - Schedule of notional amount and fair value of interest rate swaps [Line Items] | ||
Liability Derivatives ,Notional Amount | 22,000 | 14,500 |
Liability Derivatives, Fair Value | $ (32) | $ (113) |
Derivative Financial Instrume_4
Derivative Financial Instruments (Details) - Schedule of consolidated statements of income for non-hedging derivative financial instruments - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Interest rate swap contract [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Statement of income classification | Other income | |
Amount of gain (loss) | $ 513 | $ 146 |
Interest rate swap contract [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Statement of income classification | Other expense | |
Amount of gain (loss) | $ (41) | |
IRLCs [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Statement of income classification | Gain on sale of mortgage loans & OMSR | |
Amount of gain (loss) | $ (28) | 76 |
Forward Contracts [Member] | ||
Condensed Financial Statements, Captions [Line Items] | ||
Statement of income classification | Gain on sale of mortgage loans & OMSR | |
Amount of gain (loss) | $ 81 | $ (90) |
Derivative Financial Instrume_5
Derivative Financial Instruments (Details) - Schedule of financial assets and derivative assets - Interest Rate Contract [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Assets [Line Items] | ||
Gross amounts of recognized assets | $ 2,901 | $ 1,272 |
Gross amounts offset in the consolidated balance sheet | 55 | 585 |
Net amounts of assets presented in the consolidated balance sheet | 2,846 | 687 |
Financial instruments | ||
Cash collateral received | 310 | |
Net amount | $ 2,846 | $ 377 |
Derivative Financial Instrume_6
Derivative Financial Instruments (Details) - Schedule of financial liabilities and derivative liabilities - Interest Rate Contract [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Liabilities [Line Items] | ||
Gross amounts of recognized liabilities | $ 2,901 | $ 1,272 |
Gross amounts offset in the consolidated balance sheet | 55 | 585 |
Net amounts of liabilities presented in the consolidated balance sheet | 2,846 | 687 |
Financial instruments | ||
Cash collateral pledged | 3,242 | |
Net amount | $ (396) | $ 687 |
Premises and Equipment (Details
Premises and Equipment (Details) - Summary of premises and equipment - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 41,812 | $ 40,905 |
Less accumulated depreciation | (18,427) | (18,821) |
Net premises and equipment | 23,385 | 22,084 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 3,945 | 3,561 |
Building Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 26,953 | 24,251 |
Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | 10,786 | 11,995 |
Construction in Progress [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Property, Plant and Equipment, Gross | $ 128 | $ 1,098 |
Goodwill and Intangibles (Detai
Goodwill and Intangibles (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Goodwill and Intangibles (Details) [Line Items] | ||
Amount of acquisition on goodwill | $ 1,400 | |
Goodwill | 17,800 | $ 16,400 |
Intangible amortization expense | 8 | 10 |
Core Deposits [Member] | ||
Goodwill and Intangibles (Details) [Line Items] | ||
Intangible amortization expense | $ 10 | $ 10 |
Goodwill and Intangibles (Det_2
Goodwill and Intangibles (Details) - Summary of carrying basis and accumulated amortization of recognized intangible assets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Core Deposits [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | $ 4,698 | $ 4,698 |
Accumulated Amortization | (4,692) | (4,688) |
Customer Relationships [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 200 | 200 |
Accumulated Amortization | (166) | (162) |
Banking Intangibles [Member] | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Carrying Amount | 4,898 | 4,898 |
Accumulated Amortization | $ (4,858) | $ (4,850) |
Interest-Bearing Deposits (Deta
Interest-Bearing Deposits (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Banking and Thrift [Abstract] | ||
Interest-bearing time deposits in denominations of $250,000 or more | $ 36,200,000 | $ 26,600,000 |
Certificates of deposit obtained from brokers | 5,200,000 | 13,200,000 |
Time deposits certificate of deposit account registry service | 88,300,000 | $ 72,600,000 |
Cash FDIC insured amount | 250,000 | |
Cash CDARS program insured | 250,000 | |
State bank program | $ 250,000 |
Interest-Bearing Deposits (De_2
Interest-Bearing Deposits (Details) - Scheduled maturities of time deposit - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Scheduled maturities of time deposit [Abstract] | ||
2020 | $ 154,391 | |
2021 | 64,146 | |
2022 | 26,932 | |
2023 | 9,005 | |
2024 | 3,097 | |
Thereafter | 182 | |
Total | $ 257,753 | $ 241,462 |
Short-Term Borrowings (Details)
Short-Term Borrowings (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-Term Borrowings (Details) [Line Items] | ||
Repurchase agreements securities | $ 12,945 | $ 15,184 |
Mortgage-backed Securities Held-to-maturity, Fair Value Disclosure | 15,000 | 14,800 |
Retail repurchase agreements total amount | 12,900 | |
Purchases of federal funds | 41,000 | |
Retail Repurchase Agreements [Member] | ||
Short-Term Borrowings (Details) [Line Items] | ||
Repurchase agreements securities | $ 4,500 | 3,100 |
Mortgage-backed securities maturity, basis of allocation description | This collateral has maturities from 2022 through 2044. | |
Maximum amount of outstanding agreements at any month-end | $ 22,700 | 18,300 |
Monthly average of such agreements totaled | $ 15,300 | $ 16,500 |
Short-term borrowings mature | The retail repurchase agreements mature within one month. |
Short-Term Borrowings (Detail_2
Short-Term Borrowings (Details) - Summary of short-term borrowings - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of short-term borrowings [Abstract] | ||
Securities Sold Under Repurchase Agreements | $ 12,945 | $ 15,184 |
Federal Home Loan Bank Advanc_3
Federal Home Loan Bank Advances (Details) $ in Millions | Dec. 31, 2019USD ($) |
Federal Home Loan Bank Advances (Details) [Line Items] | |
Secured by mortgage loans (in Dollars) | $ 165 |
Minimum [Member] | |
Federal Home Loan Bank Advances (Details) [Line Items] | |
Interest rate | 1.84% |
Maximum [Member] | |
Federal Home Loan Bank Advances (Details) [Line Items] | |
Interest rate | 2.93% |
Federal Home Loan Bank Advanc_4
Federal Home Loan Bank Advances (Details) - Aggregate annual maturities of federal home loan bank advances - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Aggregate annual maturities of federal home loan bank advances [Abstract] | ||
2020 | $ 8,000 | |
2021 | 2,500 | |
2022 | 3,000 | |
2023 | 2,500 | |
Total | $ 16,000 | $ 16,000 |
Trust Preferred Securities (Det
Trust Preferred Securities (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Trust Preferred Securities [Abstract] | ||
Trust preferred securities, Description | On September 15, 2005, RST II, a wholly-owned subsidiary of the Company, closed a pooled private offering of 10,000 Capital Securities with a liquidation amount of $1,000 per security. The proceeds of the offering were loaned to the Company in exchange for junior subordinated debentures with terms similar to the Capital Securities. Distributions on the Capital Securities are payable quarterly at a variable rate that is based upon the 3-month LIBOR plus 1.80 percent and are included in interest expense in the consolidated financial statements. These securities may be included in Tier 1 capital and may be prepaid at anytime without penalty (with certain limitations applicable) under current regulatory guidelines and interpretations | |
Capital Securities | $ 10.3 | $ 10.3 |
Income Taxes (Details) - Schedu
Income Taxes (Details) - Schedule of provision for income taxes - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of provision for income taxes [Abstract] | ||
Taxes currently payable | $ 2,938 | $ 2,482 |
Deferred provision | (279) | 324 |
Income tax expense | $ 2,659 | $ 2,806 |
Income Taxes (Details) - Sche_2
Income Taxes (Details) - Schedule of reconciliation of income tax expense - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of reconciliation of income tax expense [Abstract] | ||
Computed at the statutory rate (21%) | $ 3,073 | $ 3,033 |
Increase (decrease) resulting from | ||
Increase (decrease) resulting from Tax exempt interest | (113) | (118) |
BOLI income | (71) | (75) |
Stock compensation | (45) | (43) |
Other | (185) | 9 |
Actual tax expense | $ 2,659 | $ 2,806 |
Income Taxes (Details) - Sche_3
Income Taxes (Details) - Schedule of deferred tax - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets | ||
Allowance for loan losses | $ 1,838 | $ 1,715 |
Net deferred loan fees | 53 | 61 |
Unrealized losses on available-for-sale securities | 147 | |
Other | 659 | 215 |
Deferred Tax Assets, Gross | 2,550 | 2,138 |
Deferred tax liabilities | ||
Depreciation | (1,009) | (950) |
Mortgage servicing rights | (2,378) | (2,464) |
Unrealized gains on available-for-sale securities | (175) | |
Purchase accounting adjustments | (1,227) | (1,162) |
Prepaids | (447) | (205) |
FHLB stock dividends | (288) | (288) |
Deferred Tax Liabilities, Gross | (5,524) | (5,069) |
Net deferred tax liability | $ (2,974) | $ (2,931) |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Income (Details) - Schedule of reclassification out of accumulated other comprehensive income - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of reclassification out of accumulated other comprehensive income [Abstract] | ||
Realized gains included in net income | $ 206 | $ 70 |
Realized gains included in net income, Total | 206 | 70 |
Tax effect | (43) | (15) |
Net of Tax | $ 163 | $ 55 |
Regulatory Matters (Details)
Regulatory Matters (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Regulatory Matters [Abstract] | |
Capital conservation buffer percentage, description | The capital conservation buffer was phased beginning in 2015 and was fully phased in at 2.50 percent at January 1, 2019. |
Regulatory Matters (Details) -
Regulatory Matters (Details) - Summary of State Bank's actual capital amounts and ratios - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Summary of State Bank's actual capital amounts and ratios [Abstract] | ||
Tier I Capital to average assets, Actual, Amount | $ 116,884 | $ 110,022 |
Tier I Capital to average assets, Actual, Ratio | 11.36% | 11.23% |
Tier I Capital to average assets, Adequacy Purposes, Amount | $ 41,165 | $ 39,183 |
Tier I Capital to average assets, Adequacy Purposes, Ratio | 4.00% | 4.00% |
Tier I Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Amount | $ 51,456 | $ 48,979 |
Tier I Capital to average assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Ratio | 5.00% | 5.00% |
Tier I Common equity capital to risk-weighted assets, Actual, Amount | $ 116,884 | $ 110,022 |
Tier I Common equity capital to risk-weighted assets, Actual, Ratio | 12.46% | 12.57% |
Tier I Common equity capital to risk-weighted assets, Adequacy Purposes, Amount | $ 42,204 | $ 39,386 |
Tier I Common equity capital to risk-weighted assets, Adequacy Purposes, Ratio | 4.50% | 4.50% |
Tier I Common equity capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Amount | $ 60,962 | $ 56,890 |
Tier I Common equity capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Ratio | 6.50% | 6.50% |
Tier I Capital to risk-weighted assets, Actual, Amount | $ 116,884 | $ 110,022 |
Tier I Capital to risk-weighted assets, Actual, Ratio | 12.46% | 12.57% |
Tier I Capital to risk-weighted assets, Adequacy Purposes, Amount | $ 56,273 | $ 52,514 |
Tier I Capital to risk-weighted assets, Adequacy Purposes, Ratio | 6.00% | 6.00% |
Tier I Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Amount | $ 75,030 | $ 70,019 |
Tier I Capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Ratio | 8.00% | 8.00% |
Total Risk-based capital to risk-weighted assets, Actual, Amount | $ 125,639 | $ 118,189 |
Total Risk-based capital to risk-weighted assets, Actual, Ratio | 13.40% | 13.50% |
Total Risk-based capital to risk-weighted assets, Adequacy Purposes, Amount | $ 75,030 | $ 70,019 |
Total Risk-based capital to risk-weighted assets, Adequacy Purposes, Ratio | 8.00% | 8.00% |
Total Risk-based capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Amount | $ 93,788 | $ 87,524 |
Total Risk-based capital to risk-weighted assets, To Be Well Capitalized Under Prompt Corrective Action Procedures, Ratio | 10.00% | 10.00% |
Employee Benefits (Details)
Employee Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Disclosure Text Block Supplement [Abstract] | ||
Employer matching contribution, percent | 100.00% | |
Maximum employee contribution of compensation received | 4.00% | |
Contribution plan, description | Any discretionary contribution made by the Company is fully vested after three years of credited service. | |
Amount of Employer contributions charged to expense | $ 600 | $ 500 |
Description of supplemental executive retirement plan agreement with certain active and retired officers | The agreements provide monthly payments for up to 15 years that equal 15 percent to 25 percent of average compensation prior to retirement or death. | |
Employee stock ownership plan (ESOP), compensation expense | $ 300 | 300 |
Cash surrender value of all life insurance policies | $ 17,221 | $ 16,834 |
Employee stock ownership plan (ESOP), number of allocated shares (in Shares) | 415,286 | 440,359 |
Expense charged under supplemental executive retirement plan agreements | $ 0 | $ 200 |
Share Based Compensation Plan_2
Share Based Compensation Plan (Details) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Share Based Compensation Plan (Details) [Line Items] | ||
Share based compensation plan, description | The 2008 Plan, which was approved by the shareholders in April 2008, permitted the grant or award of incentive stock options, nonqualified stock options, stock appreciation rights, and restricted stock for up to 250,000 Common Shares of the Company. | |
Option exercised shares (in Shares) | 35,750 | |
Total intrinsic value | $ 0.4 | |
Cash received from exercised options | $ 0.2 | |
Share-based Payment Arrangement [Member] | ||
Share Based Compensation Plan (Details) [Line Items] | ||
SAR and common restricted stock, shares (in Shares) | 500,000 | |
Option awards vesting period | 5 years | |
Option awards contractual terms | 10 years | |
Restricted Stock [Member] | ||
Share Based Compensation Plan (Details) [Line Items] | ||
Compensation cost charged against income | $ 0.4 | $ 0.3 |
Total income tax benefit recognized in income statement for share-based compensation arrangements | $ 0.1 | 0.1 |
Total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under plan | $ 0.5 | |
Weighted-average period term | 1 year 248 days |
Share Based Compensation Plan_3
Share Based Compensation Plan (Details) - Summary of option activity under Company's plan | 12 Months Ended |
Dec. 31, 2019USD ($)$ / sharesshares | |
Summary of option activity under Company's plan [Abstract] | |
Outstanding, beginning of year | shares | 64,000 |
Weighted-Average Exercise Price, Outstanding, beginning of year | $ / shares | $ 6.99 |
Outstanding, beginning of year | shares | 28,250 |
Weighted-Average Exercise Price, Outstanding, beginning of year | $ / shares | $ 6.98 |
Weighted- Average Remaining Term, end of year | 47 days |
Aggregate Intrinsic Value, end of year | $ | $ 359,058 |
Exercisable, end of year | shares | 28,250 |
Weighted-Average Exercise Price, Exercisable, end of year | $ / shares | $ 6.98 |
Weighted-Average Remaining Term, Exercisable, end of year | 47 days |
Aggregate Intrinsic Value, Exercisable, end of year | $ | $ 359,058 |
Granted | shares | |
Weighted-Average Exercise Price, Granted | $ / shares | |
Exercised | shares | (35,750) |
Weighted-Average Exercise Price, Exercised | $ / shares | $ 7 |
Forfeited | shares | |
Weighted-Average Exercise Price, Forfeited | $ / shares | |
Expired | shares | |
Weighted-Average Exercise Price, Expired | $ / shares |
Share Based Compensation Plan_4
Share Based Compensation Plan (Details) - Summary of restricted stock activity under the Company's plan - Restricted Stock [Member] | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share Based Compensation Plan (Details) - Summary of restricted stock activity under the Company's plan [Line Items] | |
Nonvested, beginning of year | shares | 46,894 |
Weighted-Average Value per Share, beginning of year | $ / shares | $ 16.31 |
Granted | shares | 27,590 |
Weighted-Average Value per Share, Granted | $ / shares | $ 18.06 |
Vested | shares | (25,010) |
Weighted-Average Value per Share, Vested | $ / shares | $ 16.05 |
Forfeited | shares | (5,733) |
Weighted-Average Value per Share, Forfeited | $ / shares | $ 17.53 |
Nonvested, end of year | shares | 43,741 |
Weighted-Average Value per Share, Nonvested, end of year | $ / shares | $ 17.41 |
Preferred Stock (Details)
Preferred Stock (Details) - USD ($) | Dec. 23, 2014 | Dec. 23, 2014 | Dec. 31, 2019 | Dec. 26, 2018 |
Preferred Stock (Details) [Line Items] | ||||
Preferred capital offering, description | On December 23, 2014, the Company completed its public offering of 1,500,000 depositary shares, each representing a 1/100th ownership interest in a 6.50 percent Noncumulative Convertible Perpetual Preferred Share, Series A (“Series A Preferred Shares”), of the Company with a liquidation preference of $1,000 per share (equivalent to $10.00 per depositary shares). | |||
Liquidation preference per share | $ 1,000 | $ 1,000 | ||
Share price | $ 10 | $ 10 | ||
Depository shares issued, Shares | 1,500,000 | |||
Depository shares issued, Value | $ 15,000,000 | |||
Proceeds from issuance of Series A preferred stock | $ 14,000,000 | |||
Conversion of Stock, Shares Converted | 990 | |||
Conversion price | $ 0.9908093 | |||
Conversion price | $ 10.09276 | |||
Depository shares | 1,412,425 | |||
Conversion of shares | $ 1,399,443 | |||
Conversion of shares, amount | $ 18.49 | |||
Series A Preferred Stock [Member] | ||||
Preferred Stock (Details) [Line Items] | ||||
Depository shares | 1,412 |
Disclosures About Fair Value _3
Disclosures About Fair Value of Assets and Liabilities (Details) | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Servicing Rights [Member] | |
Disclosures About Fair Value of Assets and Liabilities (Details) [Line Items] | |
Interest rate on mortgage service, description | the mortgage servicing rights have increased in value. The servicing rights have had a decline in prepayments and the 0.49 percent decrease in the constant prepayment rate reflects the change in market rates. |
Disclosures About Fair Value _4
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
US Treasury and Government [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | $ 12,202 | $ 18,670 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
US Treasury and Government [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 12,202 | 18,670 |
US Treasury and Government [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Collateralized Mortgage Backed Securities [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 78,182 | 60,943 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 78,182 | 60,943 |
Collateralized Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
US States and Political Subdivisions Debt Securities [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 10,564 | 11,356 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 10,564 | 11,356 |
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Interest Rate Contract Asset [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 2,846 | 687 |
Interest Rate Contract Asset [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Interest Rate Contract Asset [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 2,846 | 687 |
Interest Rate Contract Asset [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Interest Rate Contract Liabilities [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (2,846) | (687) |
Interest Rate Contract Liabilities [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Interest Rate Contract Liabilities [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (2,846) | (687) |
Interest Rate Contract Liabilities [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Forward Contracts [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (32) | (113) |
Forward Contracts [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | (32) | (113) |
Forward Contracts [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
Forward Contracts [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
IRLCs [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | 55 | 83 |
IRLCs [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
IRLCs [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | ||
IRLCs [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Fair value measurements of securities measured at fair value on a recurring basis [Line Items] | ||
Assets, fair value, recurring | $ 55 | $ 83 |
Disclosures About Fair Value _5
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Impaired Loans [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 2,527 | $ 1,027 |
Impaired Loans [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Impaired Loans [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Impaired Loans [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 2,527 | 1,027 |
Mortgage Servicing Rights [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 5,084 | 3,191 |
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
Mortgage Servicing Rights [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 5,084 | 3,191 |
IRLCs [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | 55 | 83 |
IRLCs [Member] | Fair Value, Inputs, Level 1 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
IRLCs [Member] | Fair Value, Inputs, Level 2 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | ||
IRLCs [Member] | Fair Value, Inputs, Level 3 [Member] | ||
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of fair value measurements of assets measured at fair value on a non-recurring basis [Line Items] | ||
Assets, fair value, nonrecurring | $ 55 | $ 83 |
Disclosures About Fair Value _6
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of quantitative information about unobservable inputs used in recurring and nonrecurring - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Collateral Dependent Impaired Loans [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 2,527 | |
Valuation technique | Market comparable properties | |
Unobservable inputs | Comparability adjustments (%) | |
Collateral Dependent Impaired Loans [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 1,027 | |
Mortgage Servicing Rights [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 5,084 | |
Valuation technique | Discounted cash flow | |
Unobservable inputs | Discount Rate | |
Range (weighted average) | 10.30% | |
Mortgage Servicing Rights [Member] | Constant Prepayment Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs | Constant prepayment rate | |
Range (weighted average) | 7.02% | |
Mortgage Servicing Rights [Member] | P and I Earnings Credit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 55 | |
Valuation technique | Discounted cash flow | |
Unobservable inputs | P&I earnings credit | |
Range (weighted average) | 2.51% | |
Mortgage Servicing Rights [Member] | T and I Earnings Credit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs | T&I earnings credit | |
Range (weighted average) | 3.02% | |
Mortgage Servicing Rights [Member] | Inflation for cost of servicing [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Unobservable inputs | Inflation for cost of servicing | |
Range (weighted average) | 1.50% | |
Mortgage Servicing Rights [Member] | Maximum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 3,191 | |
Mortgage Servicing Rights [Member] | Maximum [Member] | P and I Earnings Credit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 83 | |
Mortgage Servicing Rights [Member] | Minimum [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 9.36% | |
Mortgage Servicing Rights [Member] | Minimum [Member] | Constant Prepayment Rate [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 10.19% | |
Mortgage Servicing Rights [Member] | Minimum [Member] | P and I Earnings Credit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 1.78% | |
Mortgage Servicing Rights [Member] | Minimum [Member] | T and I Earnings Credit [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 1.93% | |
Mortgage Servicing Rights [Member] | Minimum [Member] | Inflation for cost of servicing [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Range (weighted average) | 1.50% |
Disclosures About Fair Value _7
Disclosures About Fair Value of Assets and Liabilities (Details) - Summary of estimated fair values of company's financial instruments - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial assets | ||
Cash and due from banks | $ 27,064 | $ 48,363 |
Loans held for sale | 7,258 | 4,445 |
Loans, net of allowance for loan losses | 816,755 | 763,716 |
Federal Reserve and FHLB Bank stock, at cost | 4,648 | 4,123 |
Interest receivable | 3,106 | 2,822 |
Financial liabilities | ||
Deposits | 840,219 | 802,552 |
Repurchase agreements | 12,945 | 15,184 |
FHLB advances | 16,000 | 16,000 |
Trust preferred securities | 10,310 | 10,310 |
Interest payable | 1,191 | 909 |
Fair Value, Inputs, Level 1 [Member] | ||
Financial assets | ||
Cash and due from banks | 27,064 | 48,363 |
Loans held for sale | ||
Loans, net of allowance for loan losses | ||
Federal Reserve and FHLB Bank stock, at cost | ||
Interest receivable | ||
Financial liabilities | ||
Deposits | 582,466 | 561,090 |
Repurchase agreements | ||
FHLB advances | ||
Trust preferred securities | ||
Interest payable | ||
Fair Value, Inputs, Level 2 [Member] | ||
Financial assets | ||
Cash and due from banks | ||
Loans held for sale | 7,419 | 4,589 |
Loans, net of allowance for loan losses | ||
Federal Reserve and FHLB Bank stock, at cost | 4,648 | 4,123 |
Interest receivable | 3,106 | 2,822 |
Financial liabilities | ||
Deposits | 257,806 | 238,636 |
Repurchase agreements | 12,945 | 15,184 |
FHLB advances | 16,149 | 15,848 |
Trust preferred securities | 9,201 | 10,233 |
Interest payable | 1,191 | 909 |
Fair Value, Inputs, Level 3 [Member] | ||
Financial assets | ||
Cash and due from banks | ||
Loans held for sale | ||
Loans, net of allowance for loan losses | 804,808 | 757,469 |
Federal Reserve and FHLB Bank stock, at cost | ||
Interest receivable | ||
Financial liabilities | ||
Deposits | ||
Repurchase agreements | ||
FHLB advances | ||
Trust preferred securities | ||
Interest payable | ||
Estimate of Fair Value Measurement [Member] | ||
Financial assets | ||
Cash and due from banks | 27,064 | 48,363 |
Loans held for sale | 7,419 | 4,589 |
Loans, net of allowance for loan losses | 804,808 | 757,469 |
Federal Reserve and FHLB Bank stock, at cost | 4,648 | 4,123 |
Interest receivable | 3,106 | 2,822 |
Financial liabilities | ||
Deposits | 840,272 | 799,726 |
Repurchase agreements | 12,945 | 15,184 |
FHLB advances | 16,149 | 15,848 |
Trust preferred securities | 9,201 | 10,233 |
Interest payable | $ 1,191 | $ 909 |
Parent Company Financial Info_3
Parent Company Financial Information (Details) - Schedule of condensed balance sheets - Parent [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Condensed Balance Sheet Statements, Captions [Line Items] | ||
Cash & cash equivalents | $ 7,457 | $ 14,038 |
Investment in banking subsidiaries | 134,244 | 126,507 |
Investment in nonbanking subsidiaries | 4,883 | 1,232 |
Other assets | 192 | 224 |
Total assets | 146,776 | 142,001 |
Trust preferred securities | 10,000 | 10,000 |
Borrowings from nonbanking subsidiaries | 310 | 310 |
Other liabilities & accrued interest payable | 372 | 1,256 |
Total liabilities | 10,682 | 11,566 |
Stockholders' equity | 136,094 | 130,435 |
Total liabilities and stockholders' equity | $ 146,776 | $ 142,001 |
Parent Company Financial Info_4
Parent Company Financial Information (Details) - Schedule of condensed statements of income and comprehensive income - Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Income Statements, Captions [Line Items] | ||
Banking subsidiaries | $ 6,000 | |
Nonbanking subsidiaries | 575 | |
Total income | 6,575 | |
Interest expense | 414 | 401 |
Other expense | 1,773 | 1,327 |
Total expenses | 2,187 | 1,728 |
Income before income tax | 4,388 | (1,728) |
Income tax benefit | (508) | (409) |
Income before equity in undistributed income of subsidiaries | 4,896 | (1,319) |
Net income | 11,973 | 11,638 |
Preferred stock dividends | 950 | 975 |
Net income available to common shareholders | 11,023 | 10,663 |
Banking subsidiaries | 6,526 | 12,942 |
Nonbanking subsidiaries | 551 | 15 |
Total | 7,077 | 12,957 |
Gross unrealized holding gain (loss) arising in the period | 1,327 | (590) |
Related tax (expense) benefit | (279) | 124 |
Less: reclassification adjustment for gain realized in income | 206 | 70 |
Related tax expense | (43) | (15) |
Net effect on other comprehensive income | 1,211 | (411) |
Total comprehensive income | $ 13,184 | $ 11,227 |
Parent Company Financial Info_5
Parent Company Financial Information (Details) - Schedule of condensed statements of cash flows - Parent [Member] - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Condensed Cash Flow Statements, Captions [Line Items] | ||
Net income | $ 11,973 | $ 11,638 |
Equity in undistributed net income of subsidiaries | (7,077) | (12,957) |
Stock compensation expense | 417 | 278 |
Other assets | 32 | 44 |
Other liabilities | (884) | (79) |
Net cash provided by (used in) operating activities | 4,461 | (1,076) |
Capital contributed to banking subsidiary | (12,500) | |
Capital contributed to nonbanking subsidiary | (3,100) | |
Net cash used in investing activities | (3,100) | (12,500) |
Dividends on common shares | (2,331) | (2,090) |
Dividends on preferred shares | (950) | (975) |
Proceeds from issuance of common shares | 139 | 27,912 |
Conversion of preferred shares | (1) | |
Proceeds from share-based compensation plans | 251 | 192 |
Repurchase of common shares | (5,050) | (109) |
Net cash provided by (used in) financing activities | (7,942) | 24,930 |
Net change in cash and cash equivalents | (6,581) | 11,354 |
Cash and cash equivalents at beginning of year | 14,038 | 2,684 |
Cash and cash equivalents at end of year | $ 7,457 | $ 14,038 |
Quarterly Financial Informati_3
Quarterly Financial Information (Details) - Schedule of quarterly financial information - Quarter End Adjustment [Member] - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | |
Quarterly Financial Information (Details) - Schedule of quarterly financial information [Line Items] | ||||||||
Interest income | $ 11,205 | $ 11,546 | $ 11,151 | $ 10,498 | $ 10,638 | $ 10,258 | $ 9,732 | $ 8,851 |
Interest expense | 2,609 | 2,488 | 2,319 | 2,158 | 2,024 | 1,729 | 1,308 | 1,151 |
Net interest income | 8,596 | 9,058 | 8,832 | 8,340 | 8,614 | 8,529 | 8,424 | 7,700 |
Provision for loan losses | 300 | 300 | 200 | 300 | 300 | |||
Noninterest income | 5,959 | 5,366 | 3,691 | 3,000 | 3,930 | 4,202 | 4,249 | 4,243 |
Noninterest expense | 10,176 | 9,500 | 9,108 | 8,626 | 8,852 | 8,789 | 8,579 | 8,627 |
Income tax expense | 721 | 862 | 588 | 488 | 732 | 824 | 687 | 563 |
Net income | 3,358 | 3,762 | 2,627 | 2,226 | 2,960 | 3,118 | 3,107 | 2,453 |
Preferred share dividend | 230 | 233 | 243 | 244 | 243 | 244 | 244 | 244 |
Net income available to common | $ 3,128 | $ 3,529 | $ 2,384 | $ 1,982 | $ 2,717 | $ 2,874 | $ 2,863 | $ 2,209 |
Basic earnings per common share (in Dollars per share) | $ 0.48 | $ 0.55 | $ 0.37 | $ 0.31 | $ 0.42 | $ 0.45 | $ 0.45 | $ 0.40 |
Diluted earnings per common share (in Dollars per share) | 0.42 | 0.48 | 0.33 | 0.28 | 0.37 | 0.39 | 0.40 | 0.35 |
Dividends per share (in Dollars per share) | $ 0.095 | $ 0.090 | $ 0.090 | $ 0.085 | $ 0.085 | $ 0.080 | $ 0.080 | $ 0.075 |
Subsequent Events (Details)
Subsequent Events (Details) | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Subsequent Events [Abstract] | |
Right to receive cash | $ 103.50 |
Aggregate of transaction cost | 15,500,000 |
Payment of termination fee | $ 465,000 |