Document and Entity Information
Document and Entity Information - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 02, 2020 | Jun. 30, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | UWHARRIE CAPITAL CORP | ||
Entity Central Index Key | 0000898171 | ||
Entity Interactive Data Current | Yes | ||
Trading Symbol | UWHR | ||
Current Fiscal Year End Date | --12-31 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Non-accelerated Filer | ||
Entity Small Business | true | ||
Entity Emerging Growth Company | false | ||
Title of 12(b) Security | COMMON STOCK, PAR VALUE $1.25 PER SHARE | ||
Security Exchange Name | NASDAQ | ||
Entity File Number | 000-22062 | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 56-1814206 | ||
Entity Address, Address Line One | 132 NORTH FIRST STREET | ||
Entity Address, City or Town | ALBEMARLE | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 28001 | ||
City Area Code | 704 | ||
Local Phone Number | 983-6181 | ||
Document Annual Report | true | ||
Document Transition Report | false | ||
Documents Incorporated by Reference | Portions of the Registrant’s 2019 Annual Report to Shareholders are incorporated by reference into Part II of this report. Portions of the Registrant’s definitive Proxy Statement for the 2020 Annual Meeting of Shareholders are incorporated by reference into Part III of this report. | ||
Entity Shell Company | false | ||
Entity Common Stock, Shares Outstanding | 7,095,920 | ||
Entity Public Float | $ 33,633,344 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
ASSETS | ||
Cash and due from banks | $ 7,520 | $ 4,473 |
Interest-earning deposits with banks | 147,678 | 113,461 |
Securities available for sale, at fair value | 88,524 | 91,299 |
Securities held to maturity (fair value $13,499 and $10,750, respectively) | 13,428 | 10,837 |
Loans held for sale | 2,946 | 4,800 |
Loans: | ||
Loans held for investment | 357,950 | 369,970 |
Less allowance for loan losses | (1,981) | (2,374) |
Net loans held for investment | 355,969 | 367,596 |
Premises and equipment, net | 17,062 | 14,800 |
Interest receivable | 1,666 | 1,763 |
Restricted stock | 1,144 | 1,094 |
Bank owned life insurance | 8,796 | 8,671 |
Other real estate owned | 494 | 1,047 |
Prepaid assets | 714 | 558 |
Other assets | 10,852 | 11,905 |
Total assets | 656,793 | 632,304 |
Deposits: | ||
Demand noninterest-bearing | 150,283 | 129,714 |
Interest checking and money market accounts | 263,136 | 324,391 |
Savings deposits | 57,136 | 54,784 |
Time deposits, $250,000 and over | 55,682 | 7,920 |
Other time deposits | 59,641 | 50,092 |
Total deposits | 585,878 | 566,901 |
Short-term borrowed funds | 626 | 1,190 |
Long-term debt | 9,992 | 9,974 |
Interest payable | 55 | 16 |
Other liabilities | 11,384 | 9,048 |
Total liabilities | 607,935 | 587,129 |
Off balance sheet items, commitments and contingencies (Note 13) | ||
SHAREHOLDERS’ EQUITY | ||
Common stock, $1.25 par value: 20,000,000 shares authorized; shares issued and outstanding 7,095,920 and 7,126,541, respectively | 8,870 | 8,908 |
Additional paid-in capital | 12,784 | 12,885 |
Undivided profits | 16,226 | 14,421 |
Accumulated other comprehensive income (loss) | 323 | (1,694) |
Total Uwharrie Capital shareholders’ equity | 38,203 | 34,520 |
Noncontrolling interest | 10,655 | 10,655 |
Total shareholders’ equity | 48,858 | 45,175 |
Total liabilities and shareholders’ equity | $ 656,793 | $ 632,304 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Statement Of Financial Position [Abstract] | ||
Securities held for sale, fair value | $ 13,499 | $ 10,750 |
Common stock, par value | $ 1.25 | $ 1.25 |
Common stock, shares authorized | 20,000,000 | 20,000,000 |
Common stock, shares issued | 7,095,920 | 7,126,541 |
Common stock, shares outstanding | 7,095,920 | 7,126,541 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Loans, including fees | $ 18,977,000 | $ 18,205,000 | $ 16,569,000 |
Investment securities | |||
US Treasury | 131,000 | 45,000 | 28,000 |
US Government agencies and corporations | 1,490,000 | 1,405,000 | 1,507,000 |
State and political subdivisions non-taxable | 408,000 | 434,000 | 439,000 |
State and political subdivisions taxable | 59,000 | 47,000 | 47,000 |
Interest-earning deposits with banks and federal funds sold | 2,702,000 | 1,737,000 | 750,000 |
Total interest income | 23,767,000 | 21,873,000 | 19,340,000 |
Interest Expense | |||
Interest checking and money market accounts | 1,435,000 | 948,000 | 413,000 |
Savings deposits | 102,000 | 91,000 | 49,000 |
Time deposits $250,000 and over | 830,000 | 69,000 | 67,000 |
Other time deposits | 620,000 | 204,000 | 185,000 |
Short-term borrowed funds | 15,000 | 16,000 | 16,000 |
Long-term debt | 563,000 | 554,000 | 547,000 |
Total interest expense | 3,565,000 | 1,882,000 | 1,277,000 |
Net interest income | 20,202,000 | 19,991,000 | 18,063,000 |
Provision for (recovery of) loan losses | (588,000) | 90,000 | (236,000) |
Net interest income after provision for (recovery of) loan losses | 20,790,000 | 19,901,000 | 18,299,000 |
Noninterest Income | |||
Service charges on deposit accounts | 1,348,000 | 1,220,000 | 1,169,000 |
Gain (loss) on sale of securities (includes reclassification of $35, $0 and $14 from accumulated comprehensive income in 2019, 2018 and 2017, respectively) | (35,000) | (14,000) | |
Income from mortgage loan sales | 3,835,000 | 2,980,000 | 3,345,000 |
Other income | 344,000 | 810,000 | 595,000 |
Total noninterest income | 9,005,000 | 8,279,000 | 8,425,000 |
Noninterest Expense | |||
Salaries and employee benefits | 17,122,000 | 16,180,000 | 14,710,000 |
Net occupancy expense | 1,693,000 | 1,616,000 | 1,261,000 |
Equipment expense | 720,000 | 734,000 | 597,000 |
Data processing costs | 706,000 | 923,000 | 1,000,000 |
Loan cost | 359,000 | 306,000 | 356,000 |
Foreclosed real estate expense | 300,000 | 45,000 | 293,000 |
Professional fees and services | 929,000 | 1,058,000 | 723,000 |
Marketing and donations | 758,000 | 786,000 | 977,000 |
Electronic banking expense | 424,000 | 401,000 | 362,000 |
Software amortization and maintenance | 925,000 | 924,000 | 787,000 |
FDIC insurance | 132,000 | 234,000 | 229,000 |
Other noninterest expense | 1,869,000 | 1,917,000 | 2,009,000 |
Total noninterest expense | 25,937,000 | 25,124,000 | 23,304,000 |
Income before income taxes | 3,858,000 | 3,056,000 | 3,420,000 |
Income taxes (includes reclassification of ($7), $0 and ($4) from accumulated other comprehensive income, respectively) | 771,000 | 579,000 | 1,809,000 |
Net income | 3,087,000 | 2,477,000 | 1,611,000 |
Less: Net income attributable to noncontrolling interest | (564,000) | (570,000) | (592,000) |
Net income attributable to Uwharrie Capital Corp and common shareholders | $ 2,523,000 | $ 1,907,000 | $ 1,019,000 |
Net income per common share | |||
Basic | $ 0.35 | $ 0.26 | $ 0.14 |
Diluted | $ 0.35 | $ 0.26 | $ 0.14 |
Weighted average common shares outstanding | |||
Basic | 7,199,262 | 7,229,333 | 7,427,036 |
Diluted | 7,199,262 | 7,229,333 | 7,427,804 |
Other Services and Commissions [Member] | |||
Noninterest Income | |||
Noninterest income fees | $ 2,687,000 | $ 2,621,000 | $ 2,674,000 |
Interchange and Card Transaction Fees, Net [Member] | |||
Noninterest Income | |||
Noninterest income fees | $ 826,000 | $ 648,000 | $ 656,000 |
Consolidated Statements of In_2
Consolidated Statements of Income (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Statement [Abstract] | |||
Reclassification from accumulated other comprehensive income | $ 35 | $ 0 | $ 14 |
Tax effect on amount reclassified from accumulated other comprehensive income | $ (7) | $ 0 | $ (4) |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net Income | $ 3,087 | $ 2,477 | $ 1,611 |
Other comprehensive income (loss): | |||
Unrealized gains (losses) on available for sale securities | 2,584 | (758) | 696 |
Related tax effect | (595) | 171 | (340) |
Reclassification of losses recognized in net income | 35 | 0 | 14 |
Related tax effect | (7) | 0 | (4) |
Total other comprehensive income (loss) | 2,017 | (587) | 366 |
Comprehensive income | 5,104 | 1,890 | 1,977 |
Less: Comprehensive income attributable to noncontrolling interest | (564) | (570) | (592) |
Comprehensive income attributable to Uwharrie Capital Corp | $ 4,540 | $ 1,320 | $ 1,385 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Shareholders' Equity - USD ($) $ in Thousands | Total | Number of Common Shares Issued [Member] | Common Stock [Member] | Additional Paid-in Capital [Member] | Undivided Profits [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Noncontrolling Interest [Member] |
Beginning balance at Dec. 31, 2015 | $ 43,314 | ||||||
Net Income | 2,211 | ||||||
Ending balance at Dec. 31, 2016 | 43,525 | $ 8,813 | $ 12,540 | $ 12,867 | $ (1,318) | $ 10,623 | |
Ending balance, shares at Dec. 31, 2016 | 7,050,315 | ||||||
Net Income | 1,611 | 1,019 | 592 | ||||
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | 155 | 155 | (155) | ||||
Repurchase of common stock | $ (391) | (95) | (296) | ||||
Repurchase of common stock, shares | (75,709) | (75,709) | |||||
2% stock dividend | 173 | 580 | (753) | ||||
2% stock dividend, shares | 138,247 | ||||||
Cash paid – fractional shares | $ (6) | (6) | |||||
Stock options exercised, shares | 0 | ||||||
Other comprehensive income | $ 366 | 366 | |||||
Record preferred stock dividend series B (noncontrolling interest) | (416) | (416) | |||||
Record preferred stock dividend series C (noncontrolling interest) | (149) | (149) | |||||
Ending balance at Dec. 31, 2017 | 44,540 | 8,891 | 12,824 | 13,282 | (1,107) | 10,650 | |
Ending balance, shares at Dec. 31, 2017 | 7,112,853 | ||||||
Net Income | 2,477 | 1,907 | 570 | ||||
Repurchase of common stock | $ (747) | (173) | (574) | ||||
Repurchase of common stock, shares | (138,629) | (138,629) | |||||
2% stock dividend | 174 | 586 | (760) | ||||
2% stock dividend, shares | 138,939 | ||||||
Cash paid – fractional shares | $ (8) | (8) | |||||
Stock options exercised | $ 65 | 16 | 49 | ||||
Stock options exercised, shares | 13,378 | 13,378 | |||||
Other comprehensive income | $ (587) | (587) | |||||
Record preferred stock dividend series B (noncontrolling interest) | (417) | (417) | |||||
Record preferred stock dividend series C (noncontrolling interest) | (148) | (148) | |||||
Ending balance at Dec. 31, 2018 | 45,175 | 8,908 | 12,885 | 14,421 | (1,694) | 10,655 | |
Ending balance, shares at Dec. 31, 2018 | 7,126,541 | ||||||
Net Income | 3,087 | 2,523 | 564 | ||||
Repurchase of common stock | $ (850) | (211) | (639) | ||||
Repurchase of common stock, shares | (168,683) | (168,683) | |||||
2% stock dividend | 173 | 538 | (711) | ||||
2% stock dividend, shares | 138,062 | ||||||
Cash paid – fractional shares | $ (7) | (7) | |||||
Stock options exercised, shares | 0 | ||||||
Other comprehensive income | $ 2,017 | 2,017 | |||||
Record preferred stock dividend series B (noncontrolling interest) | (416) | (416) | |||||
Record preferred stock dividend series C (noncontrolling interest) | (148) | (148) | |||||
Ending balance at Dec. 31, 2019 | $ 48,858 | $ 8,870 | $ 12,784 | $ 16,226 | $ 323 | $ 10,655 | |
Ending balance, shares at Dec. 31, 2019 | 7,095,920 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Shareholders' Equity (Parenthetical) | Dec. 31, 2019 | Dec. 31, 2018 | Nov. 12, 2018 | Dec. 31, 2017 |
Statement Of Stockholders Equity [Abstract] | ||||
Stock dividend, percentage | 2.00% | 2.00% | 2.00% | 2.00% |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities | |||
Net Income | $ 3,087 | $ 2,477 | $ 1,611 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation | 1,074 | 1,067 | 857 |
Net amortization of security premiums/discounts AFS | 555 | 767 | 850 |
Net amortization of security premiums/discounts HTM | 139 | 146 | 147 |
Net amortization of loan servicing rights | 831 | 663 | 733 |
Impairment of foreclosed real estate | 237 | (12) | 85 |
(Recovery) provision for loan losses | (588) | 90 | (236) |
Deferred income taxes | 15 | (39) | 691 |
Net realized loss on sales / calls available for sale securities | 35 | 14 | |
Proceeds from sales of loans held for sale | 126,011 | 96,718 | 97,360 |
Origination of loans held for sale | (124,973) | (97,764) | (96,684) |
(Gain) loss on sale of premises, equipment and other assets | (6) | 4 | |
Increase in cash surrender value of life insurance | (125) | (125) | (124) |
(Gain) loss on sales of foreclosed real estate | 40 | (11) | (35) |
(Increase) decrease in prepaid assets | (156) | 228 | 40 |
Net change in interest receivable | 97 | (54) | (80) |
Net change in other assets | 421 | (422) | (602) |
Net change in interest payable | 39 | (132) | (3) |
Net change in other liabilities | (6) | 397 | 1,129 |
Net cash provided by operating activities | 6,727 | 3,998 | 5,753 |
Cash flows from investing activities | |||
Proceeds from sales, maturities, calls and paydowns of securities available for sale | 27,270 | 7,853 | 16,185 |
Proceeds from sales, maturities, calls and paydowns of securities held to maturity | 270 | 475 | 385 |
Purchase of securities available for sale | (22,466) | (4,934) | (6,338) |
Purchase of securities held to maturity | (3,000) | ||
Net (increase) decrease in loans | 12,034 | (13,433) | (15,416) |
Purchases of life insurance investment | (1,525) | ||
Proceeds from sale of premises, equipment and other assets | 189 | 4 | |
Purchase of premises and equipment | (1,263) | (829) | (1,730) |
Proceeds from sales of foreclosed real estate | 543 | 1,533 | 2,138 |
Net change in restricted stock | (50) | (27) | (15) |
Net cash provided by (used in) investing activities | 13,527 | (9,358) | (6,316) |
Cash flows from financing activities | |||
Net increase in deposit accounts | 18,977 | 54,273 | 26,909 |
Net decrease in short-term borrowed funds | (564) | (562) | (410) |
Proceeds from long-term debt | 9,992 | 440 | |
Repayment of long-term debt | (9,974) | (512) | |
Repurchase of common stock, net | (850) | (747) | (391) |
Stock option exercise | 65 | ||
Dividends on preferred stock | (564) | (570) | (592) |
Cash paid for fractional shares | (7) | (8) | (6) |
Net cash provided by financing activities | 17,010 | 52,891 | 24,998 |
Increase in cash and cash equivalents | 37,264 | 47,531 | 24,435 |
Cash and cash equivalents, beginning of year | 117,934 | 70,403 | 45,968 |
Cash and cash equivalents, end of year | 155,198 | 117,934 | 70,403 |
Supplemental disclosures of cash flow information | |||
Interest paid | 3,526 | 2,014 | 1,280 |
Income taxes paid | 933 | 503 | 852 |
Supplemental schedule of non-cash activities | |||
Net change in fair value of securities available for sale, net of tax | 2,017 | (587) | 366 |
Initial ROU asset for leased properties | 2,256 | ||
Initial lease liability for leased properties | 2,308 | ||
Loans transferred to foreclosed real estate | 267 | 160 | 361 |
Company financed OREO | (70) | (356) | |
Mortgage servicing rights capitalized | $ 684 | $ 313 | $ 586 |
Significant Accounting Policies
Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Significant Accounting Policies | Note 1 - Significant Accounting Policies Nature of Business Uwharrie Capital Corp (the “Company”) was incorporated under North Carolina law for the purpose of becoming the holding company for Bank of Stanly (“Stanly”). On July 1, 1993, Stanly became a wholly-owned subsidiary of the Company through a one-for-one exchange of the common stock of Stanly for common stock of the Company. On September 1, 2013, Bank of Stanly changed its name to Uwharrie Bank (“Uwharrie” or the “Bank”). Uwharrie was incorporated on September 28, 1983, under the laws of the State of North Carolina and began operations on January 26, 1984 in Albemarle, North Carolina. Deposits with Uwharrie are insured by the Federal Deposit Insurance Corporation (“FDIC”). Uwharrie is under regulation of the Federal Reserve, the FDIC and the North Carolina Commissioner of Banks. In North Carolina, Uwharrie has ten branch locations that provide a wide range of deposit accounts, commercial, consumer, home equity and residential mortgage loans, safe deposit boxes and automated banking. In 1987, Uwharrie established a wholly-owned subsidiary, BOS Agency, Inc. (“BOS Agency”), which engages in insurance product sales. In 1989, Uwharrie established a second wholly-owned subsidiary, BOS Financial Corporation, for the purpose of conducting business as a “broker dealer” in securities. During 1993, BOS Financial Corporation changed its name to The Strategic Alliance Corporation (“Strategic Alliance”) and was registered as a “broker dealer” and is regulated by the Financial Industry Regulatory Authority (“FINRA”). The Company formed a new subsidiary, Strategic Investment Advisors, Inc. (“SIA”), during 1998 to provide investment advisory and asset management services. This subsidiary is registered as an investment advisor with the Securities and Exchange Commission. During 2015, SIA changed its name to Uwharrie Investment Advisors, Inc. (“UIA”). On January 19, 2000, the Company completed its acquisition of Anson BanCorp, Inc. and its subsidiary, Anson Savings Bank. The savings bank retained its North Carolina savings bank charter and became a wholly-owned subsidiary of Uwharrie Capital Corp as Anson Bank & Trust Company (“Anson”), operating out of its main office branch in Wadesboro. Anson was consolidated into Uwharrie Bank effective September 1, 2013. On August 4, 2000, Uwharrie acquired another subsidiary, Gateway Mortgage, Inc. (“Gateway”), a mortgage origination company. This company is currently inactive and does not affect the Company’s consolidated financial statements. On April 10, 2003, the Company capitalized a new wholly-owned subsidiary bank, Cabarrus Bank & Trust Company (“Cabarrus”), located in Concord, North Carolina. As of that date, Cabarrus purchased two branch offices located in Cabarrus County from Uwharrie to begin its operation. Cabarrus operated as a commercial bank and provided a full range of banking services. Cabarrus was consolidated into Uwharrie Bank effective September 1, 2013. On April 7, 2004 Uwharrie Mortgage, Inc. was established as a subsidiary of the Company to serve in the capacity of trustee and substitute trustee under deeds of trust. Principles of Consolidation The consolidated financial statements include the accounts of the Company, Uwharrie, UIA and Uwharrie’s subsidiaries, BOS Agency and Strategic Alliance. All significant intercompany transactions and balances have been eliminated in consolidation. Use of Estimates The preparation of financial statements, in conformity with accounting principles generally accepted in the United States of America (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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. Note 1 - Significant Accounting Policies (Continued) Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-earning deposits with banks.” Investment Securities Available for Sale Investment securities available for sale consist of United States Treasuries, United States Government agencies, Government Sponsored Enterprise (GSE) mortgage backed securities and collateralized mortgage obligations (CMOs), corporate bonds and state and political subdivision bonds. Unrealized holding gains and losses on available for sale securities are reported as a net amount in other comprehensive income, net of income taxes. Gains and losses on the sale of available for sale securities are determined using the specific identification method and recorded on a trade basis. Declines in the fair value of individual available for sale securities below their cost that are other than temporary would result in write-downs of the individual securities, to their fair value. Such write-downs would be included in earnings as realized losses to the extent the losses are associated with the credit quality of the issuer. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the period to maturity. Investment Securities Held to Maturity Investment securities held to maturity consist of United States Government agencies, corporate bonds and state and political subdivision bonds. The Company has both the intent and ability to hold the securities to maturity. These securities are reported at amortized cost. Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Loans The Company divides the loans it originates into two segments, commercial and noncommercial loans. Commercial loans are broken down into the following classes: commercial loans, real estate commercial loans and other real estate construction loans. Noncommercial loans are divided into the following classes: real estate 1-4 family construction, real estate 1-4 family residential loans, home equity loans, consumer loans and other loans. The ability of the Company’s borrowers to honor their contracts is largely dependent upon the real estate and general economic conditions in the Company’s market area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The exception to this policy is credit card loans that remain in accrual status 90 days or more until they are paid current or charged off. 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 impaired loans is accounted for on a cash basis 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. Generally, a minimum of six months of sustained performance is required. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses. The provision for loan losses is expensed to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Note 1 - Significant Accounting Policies (Continued) The Company has different specific risks identified within the loan segments. Specific risks within the commercial loan segment arise with borrowers that are experiencing diminished operating cash flows, depreciated collateral values or prolonged sales and rental absorption periods. Concentrations within the portfolio, if unmanaged, pose additional risk. Occasionally, the Company will purchase participation loans from other institutions. If these loans are not independently underwritten by the Bank, they could carry additional risk. Generally, owner-occupied commercial real estate loans carry less risk than non-owner occupied. Specific risks within the non-commercial portfolio tend to be tied to economic factors including high unemployment and decreased real estate values. Risk to the Company is greater as home values deteriorate more rapidly than amortization in a loan, leaving little to no equity in properties, especially in junior lien positions. Concentration in the portfolio, such as home equity lines of credit, could pose additional risk if not appropriately managed. The allowance for loan losses is evaluated both individually and collectively by loan class on a regular basis by management. Loans are collectively evaluated 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. Individually evaluated loans are based upon discounted cash flows or the underlying value of the collateral. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In addition, regulatory examiners may require the Company to recognize adjustments to the allowance for loan losses based on their judgment about information available to them at the time of their assessment. 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 all of the circumstances surrounding the loan and the borrower, including the length of the delay, amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial 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. Homogeneous loans are collectively evaluated by loan class for impairment. However, once a loan is deemed impaired, it will be evaluated individually for specific impairment. Troubled debt restructure loans (TDRs) are modifications of a loan when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. TDRs are considered to be impaired loans and are individually evaluated for impairment. The portion of the Company’s allowance for loan loss model related to general reserves captures the mean loss of individual loans within the loan portfolio and adds additional loss based on economic uncertainty and volatility. Specifically, the Company calculates probable losses on loans by computing a probability of loss and multiplying that by a loss given default derived from historical experience, thus deriving the estimated loss scenario by FDIC call report codes. Together, these components, as well as a reserve for qualitative factors based on management’s discretion of economic conditions and portfolio concentrations, form the basis of the allowance model. The loans that are impaired and included in the specific reserve are excluded from these calculations. Loan Servicing Rights The Company capitalizes mortgage and Small Business Administration (SBA) loan servicing rights when loans are sold and the loan servicing is retained. The amortization of servicing rights is realized over the estimated period that net servicing revenues are expected to be received. These projections are based on the amount and timing of estimated future cash flows. The amortization of servicing rights is recognized in the statement of income as an offset to other noninterest income. Servicing assets are periodically evaluated for impairment based upon their fair value. Fair value is based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance and charged to other expense. 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, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Note 1 - Significant Accounting Policies (Continued) Foreclosed Real Estate Real estate properties acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell upon foreclosure, establishing a new cost basis. Annually, valuations are performed and the foreclosed property is adjusted to the lower of cost or fair value of the properties, less costs to sell. Any write-down at the time of transfer to foreclosed properties is charged to the allowance for loan losses. Subsequent write-downs are charged to noninterest expense, and costs related to the improvement of the property are capitalized if the fair value less cost to sell will allow it. If not, these costs are expensed also. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Additions and major replacements or betterments which extend the useful lives of premises and equipment are capitalized. Maintenance, repairs and minor improvements are expensed as incurred. Depreciation is computed principally by the straight-line method over estimated useful lives, except in the case of leasehold improvements, which are amortized over the term of the leases, if shorter. Useful lives range from five to seven years for furniture, fixtures and equipment, to ten to thirty-nine years for leasehold improvements and buildings, respectively. Upon retirement or other disposition of the assets, the cost and the related accumulated depreciation are removed from the accounts and any gains or losses are reflected in income. ROU assets that are recognized at the initial adoption of a lease arrangement are included in premises and equipment. More information regarding ROU assets can be found in Note 8 (Leases). Restricted Stock As a requirement for membership, the Bank invests in the stock of the Federal Home Loan Bank of Atlanta (“FHLB”) and Federal Reserve Bank (“FRB”). These investments are carried at cost. Due to the redemption provisions of these investments, the Company estimated that fair value approximates cost and that this investment was not impaired. Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period). Accounting Standards Codification (ASC) 718 also requires measurement of the cost of employee services received in exchange for an award based on the grant-date fair value of the award. As of December 31, 2019 and December 31, 2018, there are no outstanding awards. Income Taxes The Company and its subsidiaries file a consolidated federal income tax return and separate North Carolina income tax returns. The provision for income taxes in the accompanying consolidated financial statements is provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold. The tax returns for the Company are subject to audit for the 2016 fiscal year and thereafter. It is the Company’s policy to recognize interest and penalties associated with uncertain tax positions as components of other expenses in the income statement; however, if interest becomes a material amount, it would be reclassified as interest expense. There were no interest or penalties accrued during the years ended December 31, 2019, 2018 and 2017. Leases Operating leases in which we are the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheet. We do not currently have any significant finance leases in which we are the lessee. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating Note 1 - Significant Accounting Policies (Continued) lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for the lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in the net occupancy expense in the consolidated statement of income Note 1 - Significant Accounting Policies (Continued) Revenue Recognition Under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when the performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and the related costs to provide our services on a net basis in our financial statements. These transactions primarily relate to insurance and brokerage commissions and fees derived from our customers' use of various interchange and ATM/debit card/credit card networks. Fair Value of Financial Instruments ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which those assets or liabilities are sold and considers assumptions that market participants would use when pricing those assets or liabilities. Fair values determined using Level 1 inputs rely on active and observable markets to price identical assets or liabilities. In situations where identical assets and liabilities are not traded in active markets, fair values may be determined based on Level 2 inputs, which exist when observable data exists for similar assets and liabilities. Fair values for assets and liabilities for which identical or similar assets and liabilities are not actively traded in observable markets are based on Level 3 inputs, which are considered to be unobservable. Among the Company’s assets and liabilities, investment securities available for sale are reported at their fair values on a recurring basis. Certain other assets are adjusted to their fair value on a nonrecurring basis, including other real estate owned, impaired loans, loans held for sale, which are carried at the lower of cost or market; and loan servicing rights, where fair value is determined using similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Deposits, short-term borrowings and long-term obligations are not reported at fair value. Note 1 - Significant Accounting Policies (Continued) Prices for US Treasury securities are readily available in the active markets in which those securities are traded, and the resulting fair values are shown in the “Level 1 input” column. Prices for government agency securities, mortgage-backed securities and for state, county and municipal securities are obtained for similar securities, and the resulting fair values are shown in the “Level 2 input” column. Prices for all other non-marketable investments are determined based on various assumptions that are not observable. The fair values for these investment securities are shown in the “Level 3 input” column. Non-marketable investment securities, which are carried at their purchase price, include those that may only be redeemed by the issuer. The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment by using one of several methods including collateral value, fair value of similar debt or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the present value of the expected repayments or fair value of collateral exceed the recorded investments in such loans. The Company typically bases the fair value of the collateral on appraised values which the Company considers Level 3 valuations. Foreclosed assets are adjusted to fair value upon transfer of the loans to other real estate owned. Real estate acquired in settlement of loans is recorded initially at the estimated fair value of the property less estimated selling costs at the date of foreclosure. The initial recorded value may be subsequently reduced by additional allowances, which are charged to earnings if the estimated fair value of the property less estimated selling costs declines below the initial recorded value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company typically bases the fair value of the collateral on appraised values which the Company considers Level 3 valuations. Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate, based on secondary market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. These loans are recorded in Level 2. Note 1 - Significant Accounting Policies (Continued) Comprehensive Income The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale. The following table presents the changes in accumulated other comprehensive income for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (dollars in thousands) Beginning Balance $ (1,694 ) $ (1,107 ) $ (1,318 ) Accumulated Other comprehensive income (loss) before reclassifications, net of ($595), $171 and ($185) tax effect, respectively 1,989 (587 ) 356 Amounts reclassified from accumulated other comprehensive income, net of ($7), $0, and ($4) tax effect, respectively 28 — 10 Net current-period other comprehensive loss 2,017 (587 ) 366 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect — — (155 ) Ending Balance $ 323 $ (1,694 ) $ (1,107 ) Earnings per Common Share The Company had no stock options outstanding at December 31, 2019 or December 31, 2018. Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. On November 12, 2019, the Company’s Board of Directors declared a 2% stock dividend payable on December 9, 2019 to shareholders of record on November 25, 2019. All information presented in the accompanying consolidated financial statements regarding earnings per share and weighted average number of shares outstanding has been computed giving effect to this stock dividend. The computation of weighted average shares used in the calculation of basic and dilutive earnings per share is summarized below: 2019 2018 2017 Weighted average number of common shares used in computing basic net income per common share 7,199,262 7,229,333 7,427,036 Effect of dilutive stock options — — 768 Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share 7,199,262 7,229,333 7,427,804 Note 1 - Significant Accounting Policies (Continued) Noncontrolling Interest In January 2013 the Company’s subsidiary banks issued a total of $7.9 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B. The preferred stock qualified as Tier 1 capital at each bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. This capital is presented as noncontrolling interest in the consolidated balance sheets. Dividends declared on this preferred stock are presented as earnings allocated to the noncontrolling interest in the consolidated statements of income. Effective September 1, 2013, the Fixed Rate Noncumulative Perpetual Preferred Stock, Series B was rolled into one issue under Uwharrie Bank in connection with the consolidation and name change. During 2013, the Company’s subsidiary bank, Uwharrie Bank, raised $2.8 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C. The preferred stock qualifies as Tier 1 capital at the bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. Recent Accounting Pronouncements ASU 2016-02, “Leases, Topic 842” was adopted January 1, 2019. This ASU increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between previous standards and this ASU is the requirement for lessees to recognize on their balance sheet all lease contracts with lease terms greater than 12 months, including operating leases. Both a ROU asset, representing the right to use the leased asset, and a lease liability, representing the contractual obligation, are required to be recognized on the balance sheet of the lessee at lease commencement. Further, this ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance. The impact of the new standard increased assets by $1.9 million and liabilities by $2.0 million, from the year ended December 31, 2018 to the year ended December 31, 2019. We currently have three properties that we operate with a lease term greater than one year. ASU 2014-09. “Revenue from Contracts with Customers (Topic 606)” was adopted as of January 1, 2018. ASU 2014-09 requires |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Investment Securities | Note 2 - Investment Securities Carrying amounts and fair values of securities available for sale and held to maturity are summarized below: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities available for sale U.S. Treasury $ 4,976 $ 36 $ — $ 5,012 U.S. Government agencies 25,869 18 201 25,686 GSE - Mortgage-backed securities and CMO’s 38,305 413 142 38,576 State and political subdivisions 13,937 329 45 14,221 Corporate bonds 5,018 11 — 5,029 Total securities available for sale $ 88,105 $ 807 $ 388 $ 88,524 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities held to maturity U.S. Government agencies $ 578 $ 5 $ — $ 583 State and political subdivisions 6,826 62 — 6,888 Corporate bonds 6,024 5 1 6,028 Total securities held to maturity $ 13,428 $ 72 $ 1 $ 13,499 Note 2 - Investment Securities (Continued) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities available for sale U.S. Treasury $ 4,944 $ 11 $ — $ 4,955 U.S. Government agencies 52,935 47 1,066 51,916 GSE - Mortgage-backed securities and CMO’s 17,217 — 515 16,702 State and political subdivisions 13,373 5 423 12,955 Corporate bonds 5,030 6 265 4,771 Total securities available for sale $ 93,499 $ 69 $ 2,269 $ 91,299 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities held to maturity U.S. Government agencies $ 855 $ — $ 12 $ 843 State and political subdivisions 6,877 6 61 6,822 Corporate bonds 3,105 — 20 3,085 Total securities held to maturity $ 10,837 $ 6 $ 93 $ 10,750 At both December 31, 2019 and December 31, 2018, the Company owned Federal Reserve Bank stock reported at cost of $509,000. Also, at December 31, 2019 and December 31, 2018, the Company owned Federal Home Loan Bank (“FHLB”) stock of $635,000 and $585,000, respectively. The investments in Federal Reserve stock and FHLB stock are required investments related to the Company’s membership in, and borrowings with, these banks and classified as restricted stock on the consolidated balance sheet. These investments are carried at cost since there is no ready market and redemption has historically been made at par value. The Company estimated the fair value approximated cost and that these investments were not impaired at December 31, 2019. Results from sales of securities available for sale for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (dollars in thousands) Gross proceeds from sales $ 3,351 $ — $ 8,918 Realized gains from sales $ — $ — $ — Realized losses from sales (35 ) — (14 ) Net realized gains (losses) $ (35 ) $ — $ (14 ) At December 31, 2019 and 2018 securities available for sale with a carrying amount of $65.3 million and $71.5 million, respectively, were pledged as collateral on public deposits and for other purposes as required or permitted by law. Note 2 - Investment Securities (Continued) The following tables show the gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2019 and December 31, 2018. We believe these unrealized losses on investment securities are a result of a volatile market and fluctuations in market prices due to a rise in interest rates, which will adjust if rates decline. Management does not believe these fluctuations are a reflection of the credit quality of the investments. At December 31, 2019, the unrealized losses on available for sale securities less than twelve months related to three government agency bonds, six government sponsored enterprise (GSE) mortgage backed securities and one state and political subdivision bond. The Company had four government agency bonds and nine GSE mortgage backed securities that had been in a loss position twelve months or more at December 31, 2019. At December 31, 2018, the unrealized losses on held to maturity securities less than twelve months related to one corporate bond. At December 31, 2018, the unrealized loss on available for sale securities less than twelve months related to four government agency bonds, one GSE mortgage backed security and one corporate bond. The Company had sixteen government agency bonds, sixteen GSE mortgage backed securities, one corporate bond and eight state and political subdivision bonds that had been in a loss position for more than twelve months at December 31, 2018. The unrealized losses on held to maturity securities related to two corporate bonds and two state and political subdivision bonds. December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Securities available for sale temporary impairment U.S. Gov’t agencies 11,956 55 9,704 146 21,660 201 GSE-Mortgage-backed securities and CMO’s 17,613 61 7,431 81 25,044 142 State and political 1,694 45 — — 1,694 45 Total securities available for sale $ 31,263 $ 161 $ 17,135 $ 227 $ 48,398 $ 388 December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Held to maturity temporary impairment Corporate bonds 1,502 1 — — 1,502 1 Total securities held to maturity $ 1,502 $ 1 $ — $ — $ 1,502 $ 1 December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Securities available for sale temporary impairment U.S. Gov’t agencies 1,924 29 47,814 1,037 49,738 1,066 GSE-Mortgage-backed securities and CMO’s 526 6 15,602 509 16,128 515 State and political — — 11,109 423 11,109 423 Corporate bonds 1,989 224 1,971 41 3,960 265 Total securities available for sale $ 4,439 $ 259 $ 76,496 $ 2,010 $ 80,935 $ 2,269 Note 2 - Investment Securities (Continued) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Held to maturity temporary impairment U.S. Gov’t agencies $ — $ — $ 843 $ 12 $ 843 $ 12 State and political 755 6 5,157 55 5,912 61 Corporate bonds 3,085 20 — — 3,085 20 Total securities held to maturity $ 3,840 $ 26 $ 6,000 $ 67 $ 9,840 $ 93 Declines in the fair value of the investment portfolio are believed by management to be temporary in nature. When evaluating an investment for other-than-temporary impairment, management considers, among other things, the length of time and the extent to which the fair value has been in a loss position, the financial condition of the issuer and the intent and the ability of the Company to hold the investment until the loss position is recovered. Any unrealized losses were largely due to increases in market interest rates over the yields available at the time of purchase. The fair value is expected to recover as the bonds approach their maturity date or market yields for such investments decline. Management does not believe any of the securities are impaired due to reasons of credit quality, but that the losses are temporary in nature. At December 31, 2019, the Company does not intend to sell and is not likely to be required to sell the available for sale securities that were in a loss position prior to full recovery. The following tables show contractual maturities of the investment portfolio as of December 31, 2019: Amortized Cost Estimated Fair Value (dollars in thousands) Securities available for sale Due within one year $ 7,784 $ 7,827 Due after one but within five years 22,502 22,496 Due after five but within ten years 8,310 8,163 Due after ten years 11,204 11,462 Mortgage backed securities 38,305 38,576 $ 88,105 $ 88,524 Amortized Cost Estimated Fair Value (dollars in thousands) Securities held to maturity Due within one year $ 4,525 $ 4,530 Due after one but within five years 4,975 5,040 Due after five but within ten years 3,928 3,929 $ 13,428 $ 13,499 The mortgage-backed securities are shown separately as they are not due at a single maturity date. |
Loans Held for Investment
Loans Held for Investment | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans Held for Investment | Note 3 – Loans Held for Investment The composition of net loans held for investment by class as of December 31, 2019 and 2018 is as follows: 2019 2018 (dollars in thousands) Commercial Commercial $ 59,075 $ 57,176 Real estate - commercial 130,998 130,634 Other real estate construction loans 23,043 31,141 Noncommercial Real estate 1-4 family construction 7,600 7,805 Real estate - residential 71,370 76,564 Home equity 51,216 52,541 Consumer loans 12,957 12,159 Other loans 1,939 2,110 358,198 370,130 Less: Allowance for loan losses (1,981 ) (2,374 ) Deferred loan fees, net (248 ) (160 ) Loans held for investment, net $ 355,969 $ 367,596 Although the Bank’s loan portfolio is diversified, there is a concentration of mortgage real estate loans, primarily 1 to 4 family residential and construction mortgage loans and home equity loans, which represent 36.34% of total loans. Additionally, there is a concentration in commercial loans secured primarily by real estate, shopping center locations, commercial land development, commercial buildings, equipment, and general commercial loans that represent 59.50% of total loans. There is not a concentration of a particular type of credit in this group of commercial loans. Total recorded investment in impaired loans, which consisted of nonaccrual loans and other loans identified by management as impaired, totaled $6.8 million and $4.5 million at December 31, 2019 and 2018, respectively. There were no loans 90 days past due and still accruing at December 31, 2019 or at December 31, 2018. Restructured loans at December 31, 2019 and December 31, 2018 totaled $3.9 million and $3.5 million, respectively, and are included in the impaired loan total. The carrying value of foreclosed properties held as other real estate was $494,000 and $1.0 million at December 31, 2019 and 2018, respectively. The Company had $130,000 in foreclosed residential real estate and $387,000 of residential real estate in process of foreclosure at December 31, 2019. The Company had loans of $166.9 million and $187.6 million pledged to borrowings at Federal Home Loan Bank and the Federal Reserve Bank at December 31, 2019 and 2018, respectively. The Company’s loan policies are written to address loan-to-value ratios and collateralization methods with respect to each lending category. Consideration is given to the economic and credit risk of lending areas and customers associated with each category. |
Allowance for Loan Losses
Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Loan Losses | Note 4 - Allowance for Loan Losses During the second quarter of 2019, the Company transitioned its in-house incurred loss allowance for loan loss model to an external vendor incurred loss model that is CECL-ready. The overall financial impact related to switching models is considered immaterial. As a result of the change in models, there has been a change in the methodology for establishing the allowance for loan losses, as described below. Default in the allowance for loan loss model is now considered 90 days past due, whereas default was defined as a charge-off event in the previous model. This increases the probabilities of default for the Company, but reduces the loss given default ratio in the portfolio. Probabilities of default are now more representative of the Company’s customers. Previously, an analysis was performed with a sample of North Carolina consumers to calculate the probabilities of default by credit score. In the new model, the Company is able to track probabilities of default based on historical information of loans in the portfolio. This is the largest impact of the model transition, resulting in an immaterial recovery of provision for loan losses. The qualitative factors used in the model include adjustment to historical rates for the impact of the recession in the last business cycle, current volatility in the market, and management’s analysis of local economic factors and industry-specific outlooks. Changes in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 are presented below (the “other” category represents a one-time impact of re-classification for unfunded commitments’ allowance from the allowance for loan losses to an unfunded commitment liability): Commercial 2019 2018 2017 (dollars in thousands) Balance, beginning of year $ 1,334 $ 1,401 $ 1,404 Provision (recovery) charged to operations (571 ) 132 (72 ) Charge-offs (11 ) (245 ) (31 ) Recoveries 367 46 100 Net (charge-offs) recoveries 356 (199 ) 69 Other (32 ) — — Balance, end of year $ 1,087 $ 1,334 $ 1,401 Note 4 - Allowance for Loan Losses (Continued) Non-Commercial 2019 2018 2017 (dollars in thousands) Balance, beginning of year $ 1,040 $ 1,057 $ 1,303 Provision (recovery) charged to operations (17 ) (42 ) (164 ) Charge-offs (149 ) (81 ) (177 ) Recoveries 74 106 95 Net (charge-offs) recoveries (75 ) 25 (82 ) Other (54 ) — — Balance, end of year $ 894 $ 1,040 $ 1,057 Total 2019 2018 2017 (dollars in thousands) Balance, beginning of year $ 2,374 $ 2,458 $ 2,707 Provision (recovery) charged to operations (588 ) 90 (236 ) Charge-offs (160 ) (326 ) (208 ) Recoveries 441 152 195 Net (charge-offs) recoveries 281 (174 ) (13 ) Other (86 ) — — Balance, end of year $ 1,981 $ 2,374 $ 2,458 The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at December 31, 2019 and 2018: December 31, 2019 Individually Evaluated Collectively Evaluated Total Reserve Loans Reserve Loans Reserve Loans (dollars in thousands) Commercial $ 32 $ 3,660 $ 1,055 $ 209,456 $ 1,087 $ 213,116 Non-Commercial 109 3,175 785 141,659 894 144,834 Total $ 141 $ 6,835 $ 1,840 $ 351,115 $ 1,981 $ 357,950 December 31, 2018 Individually Evaluated Collectively Evaluated Total Reserve Loans Reserve Loans Reserve Loans (dollars in thousands) Commercial $ 42 $ 1,359 $ 1,292 $ 217,592 $ 1,334 $ 218,951 Non-Commercial 112 3,119 928 147,900 1,040 151,019 Total $ 154 $ 4,478 $ 2,220 $ 365,492 $ 2,374 $ 369,970 Note 4 - Allowance for Loan Losses (Continued) Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following tables summarize the past due information of the loan portfolio by class: December 31, 2019 Loans 30-89 Days Past Due Loans 90 Days or More Past due and Non - Accrual Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due (dollars in thousands) Commercial $ 190 $ — $ 190 $ 58,885 $ 59,075 $ — Real estate - commercial — 2,088 2,088 128,910 130,998 — Other real estate construction 14 0 14 23,029 23,043 — Real estate construction — — — 7,600 7,600 — Real estate - residential 326 752 1,078 70,044 71,122 — Home equity 57 82 139 51,077 51,216 — Consumer loan 27 — 27 12,930 12,957 — Other loans — — — 1,939 1,939 — Total $ 614 $ 2,922 $ 3,536 $ 354,414 $ 357,950 $ — December 31, 2018 Loans 30-89 Days Past Due Loans 90 Days or More Past due and Non - Accrual Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due (dollars in thousands) Commercial $ 54 $ — $ 54 $ 57,122 $ 57,176 $ — Real estate - commercial — 273 273 130,361 130,634 — Other real estate construction — 47 47 31,094 31,141 — Real estate construction — — — 7,805 7,805 — Real estate - residential 890 606 1,496 74,908 76,404 — Home equity 100 118 218 52,323 52,541 — Consumer loan 86 — 86 12,073 12,159 — Other loans — — — 2,110 2,110 — Total $ 1,130 $ 1,044 $ 2,174 $ 367,796 $ 369,970 $ — Once a loan becomes 90 days past due, the loan is automatically transferred to a nonaccrual status. The exception to this policy is credit card loans that remain in accrual status 90 days or more until they are paid current or charged off. Note 4 - Allowance for Loan Losses (Continued) The composition of nonaccrual loans by class as of December 31, 2019 and 2018 is as follows: 2019 2018 (dollars in thousands) Commercial $ — $ — Real estate - commercial 2,088 273 Other real estate construction — 47 Real estate 1 – 4 family construction — — Real estate – residential 752 606 Home equity 82 118 Consumer loans — — Other loans — — $ 2,922 $ 1,044 Loans that are in nonaccrual status or 90 days past due and still accruing are considered to be nonperforming. Nonperforming loans were $2.9 million at December 31, 2019 and $1.0 million at December 31, 2018. Management uses a risk-grading program to facilitate the evaluation of probable inherent loan losses and to measure the adequacy of the allowance for loan losses. In this program, risk grades are initially assigned by the loan officers and reviewed and monitored by the lenders and credit administration on an ongoing basis. The program has eight risk grades summarized in five categories as follows: Pass : Loans that are pass grade credits include loans that are fundamentally sound and risk factors are reasonable and acceptable. They generally conform to policy with only minor exceptions and any major exceptions are clearly mitigated by other economic factors. Watch : Loans that are watch credits include loans on management’s watch list where a risk concern may be anticipated in the near future. Substandard : Loans that are considered substandard are loans that are inadequately protected by current sound net worth, paying capacity of the obligor or the value of the collateral pledged. All nonaccrual loans are graded as substandard. Doubtful: Loans that are considered to be doubtful have all weaknesses inherent in loans classified substandard, plus the added characteristic that the weaknesses make the collection or liquidation in full on the basis of current existing facts, conditions and values highly questionable and improbable. Loss: Loans that are considered to be a loss are considered to be uncollectible and of such little value that their continuance as bankable assets is not warranted. The tables below summarize risk grades of the loan portfolio by class as of December 31, 2019 and 2018: December 31, 2019 Pass Watch Sub- standard Doubtful Total (dollars in thousands) Commercial $ 56,151 $ 2,921 $ 3 $ — $ 59,075 Real estate - commercial 126,498 1,194 3,306 — 130,998 Other real estate construction 21,253 1,477 313 — 23,043 Real estate 1 - 4 family construction 7,600 — — — 7,600 Real estate - residential 67,647 2,464 1,011 — 71,122 Home equity 50,255 879 82 — 51,216 Consumer loans 12,877 79 1 — 12,957 Other loans 1,939 — — — 1,939 Total $ 344,220 $ 9,014 $ 4,716 $ — $ 357,950 Note 4 - Allowance for Loan Losses (Continued) December 31, 2018 Pass Watch Sub- standard Doubtful Total (dollars in thousands) Commercial $ 55,883 $ 1,284 $ 9 $ — $ 57,176 Real estate - commercial 127,592 1,518 1,524 — 130,634 Other real estate construction 28,711 2,070 360 — 31,141 Real estate 1 - 4 family construction 7,805 — — — 7,805 Real estate - residential 69,900 5,470 1,034 — 76,404 Home equity 52,028 395 118 — 52,541 Consumer loans 12,085 73 1 — 12,159 Other loans 2,110 — — — 2,110 Total $ 356,114 $ 10,810 $ 3,046 $ — $ 369,970 The following tables show the breakdown between performing and nonperforming loans by class as of December 31, 2019 and 2018: December 31, 2019 Performing Non- Performing Total (dollars in thousands) Commercial $ 59,075 $ — $ 59,075 Real estate - commercial 128,910 2,088 130,998 Other real estate construction 23,043 — 23,043 Real estate 1 – 4 family construction 7,600 — 7,600 Real estate – residential 70,370 752 71,122 Home equity 51,134 82 51,216 Consumer loans 12,957 — 12,957 Other loans 1,939 — 1,939 Total $ 355,028 $ 2,922 $ 357,950 December 31, 2018 Performing Non- Performing Total (dollars in thousands) Commercial $ 57,176 $ — $ 57,176 Real estate - commercial 130,361 273 130,634 Other real estate construction 31,094 47 31,141 Real estate 1 – 4 family construction 7,805 — 7,805 Real estate – residential 75,798 606 76,404 Home equity 52,423 118 52,541 Consumer loans 12,159 — 12,159 Other loans 2,110 — 2,110 Total $ 368,926 $ 1,044 $ 369,970 Note 4 - Allowance for Loan Losses (Continued) Loans are considered impaired when, based on current information and events it is probable the Company will be unable to collect all amounts due in accordance with the original contractual terms of the loan agreement. If a loan is deemed impaired, a valuation analysis is performed and a specific reserve is allocated if necessary. The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class as of December 31, 2019, 2018, and 2017: As of December 31, 2019 Year Ended December 31, 2019 Recorded Recorded Unpaid Investment Investment Average Principal With No With Related Recorded Interest Balance Allowance Allowance Allowance Investment Income (dollars in thousands) Commercial $ 4 $ — $ 4 $ — $ 6 $ — Real estate - commercial 3,612 1,923 1,689 29 2,273 145 Other real estate construction 44 — 44 3 64 3 Real estate 1 -4 family construction — — — — — — Real estate - residential 3,070 987 2,083 99 3,010 159 Home equity 82 13 69 10 116 5 Consumer loans 23 — 23 — 27 2 Total $ 6,835 $ 2,923 $ 3,912 $ 141 $ 5,496 $ 314 Year Ended As of December 31, 2018 December 31, 2018 Recorded Recorded Unpaid Investment Investment Average Principal With No With Related Recorded Interest Balance Allowance Allowance Allowance Investment Income (dollars in thousands) Commercial $ 7 $ — $ 7 $ — $ 32 $ — Real estate - commercial 1,258 93 1,165 38 1,503 51 Other real estate construction 632 47 47 4 132 3 Real estate 1 -4 family construction — — — — — — Real estate - residential 3,005 901 2,104 110 3,505 145 Home equity 83 51 32 1 54 3 Consumer loans 31 — 31 1 40 3 Total $ 5,016 $ 1,092 $ 3,386 $ 154 $ 5,266 $ 205 Year Ended As of December 31, 2017 December 31, 2017 Recorded Recorded Unpaid Investment Investment Average Principal With No With Related Recorded Interest Balance Allowance Allowance Allowance Investment Income (dollars in thousands) Commercial $ 44 $ 10 $ 34 $ 10 $ 25 $ 2 Real estate - commercial 1,593 1,305 288 9 1,650 72 Other real estate construction 689 101 50 3 208 5 Real estate 1 -4 family construction — — — — 3 — Real estate - residential 3,701 1,319 2,382 171 3,762 179 Home equity 35 22 13 1 66 1 Consumer loans 45 45 — — 53 4 Total $ 6,107 $ 2,802 $ 2,767 $ 194 $ 5,767 $ 263 |
Troubled Debt Restructures
Troubled Debt Restructures | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Troubled Debt Restructures | Note 5 – Troubled Debt Restructures A modification of a loan constitutes a troubled debt restructuring (“TDR”) when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. The Company offers various types of concessions when modifying loans to troubled borrowers, however, forgiveness of principal is rarely granted. Concessions offered are term extensions, capitalizing accrued interest, reducing interest rates to below current market rates or a combination of any of these. Combinations from time to time may include allowing a customer to be placed on interest-only payments. The presentations below in the “other” category are TDRs with a combination of concessions. At the time of a TDR, additional collateral or a guarantor may be requested. Loans modified as TDRs are typically already on nonaccrual status and in some cases, partial chargeoffs may have already been taken against the outstanding loan balance. The Company classifies TDR loans as impaired loans and evaluates the need for an allowance for loan loss on a loan-by-loan basis. An allowance is based on either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price or the estimated fair value of the underlying collateral less any selling costs, if the loan is deemed to be collateral dependent. For the twelve months ended December 31, 2019, 2018 and 2017, the following table presents a breakdown of the types of concessions made by loan class: Year Ended December 31, 2019 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded of Contracts Investment Investment (dollars in thousands) Extend payment terms: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential — — — Home equity — — — Consumer loans — — — Other loans — — — — $ — $ — Other: Commercial 1 $ 50 $ 4 Real estate - commercial 1 1,629 838 Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential 3 261 219 Home equity — — — Consumer loans — — — Other loans — — — 5 $ 1,940 $ 1,061 Total 5 $ 1,940 $ 1,061 Note 5 – Troubled Debt Restructures (Continued) Year Ended December 31, 2018 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded of Contracts Investment Investment (dollars in thousands) Extend payment terms: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential — — — Home equity — — — Consumer loans — — — Other loans — — — — $ — $ — Other: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential 6 434 387 Home equity — — — Consumer loans — — — Other loans — — — 6 $ 434 $ 387 Total 6 $ 434 $ 387 Year Ended December 31, 2017 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded of Contracts Investment Investment (dollars in thousands) Extend payment terms: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential — — — Home equity — — — Consumer loans — — — Other loans — — — — $ — $ — Other: Commercial 1 $ 12 $ 10 Real estate - commercial 2 178 173 Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential 6 708 675 Home equity — — — Consumer loans 1 9 5 Other loans — — — 10 $ 907 $ 863 Total 10 $ 907 $ 863 Note 5 – Troubled Debt Restructures (Continued) During the twelve months ended December 31, 2019, there was one TDR for which there was a payment default. There was one payment default in 2018 and one payment default on a TDR in 2017. The outstanding balance of TDRs at December 31, 2019 is $3.94 million with $3.91 million still accruing compared to an outstanding balance at December 31, 2018 of $3.5 million with $3.4 million still accruing. A default on a troubled debt restructure is defined as being past due 90 days or being out of compliance with the modification agreement. As previously mentioned, the Company considers TDRs to be impaired loans and has $117,000 in the allowance for loan loss as of December 31, 2019, as a direct result of these TDRs. At December 31, 2018 and 2017 there was $144,000 and $171,000 in the allowance for loan loss related to TDRs, respectively. The following table presents the successes and failures of the types of modifications within the previous twelve months as of December 31, 2019, 2018 and 2017: Paid In Full Paying as restructured Converted to nonaccrual Foreclosure/ Default Number of Recorded Number of Recorded Number of Recorded Number of Recorded Loans Investments Loans Investments Loans Investments Loans Investments (dollars in thousands) December 31, 2019 Extended payment terms — $ — — $ — — $ — — $ — Other 1 37 5 1,940 — — — — Total 1 $ 37 5 $ 1,940 — $ — — $ — Paid In Full Paying as restructured Converted to nonaccrual Foreclosure/ Default Number of Recorded Number of Recorded Number of Recorded Number of Recorded Loans Investments Loans Investments Loans Investments Loans Investments (dollars in thousands) December 31, 2018 Extended payment terms — $ — — $ — — $ — — $ — Other 8 1,056 6 434 — — 1 242 Total 8 $ 1,056 6 $ 434 — $ — 1 $ 242 Paid In Full Paying as restructured Converted to nonaccrual Foreclosure/ Default Number of Recorded Number of Recorded Number of Recorded Number of Recorded Loans Investments Loans Investments Loans Investments Loans Investments (dollars in thousands) December 31, 2017 Extended payment terms — $ — — $ — — $ — — $ — Other 6 217 10 863 — — 1 15 Total 6 $ 217 10 $ 863 — $ — 1 $ 15 |
Loan Servicing Assets
Loan Servicing Assets | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking [Abstract] | |
Loan Servicing Assets | Note 6 – Loan Servicing Assets The principal balance of loans serviced for others are not included in the accompanying consolidated balance sheets. The unpaid principal balances of mortgage and other loans serviced for others were approximately $419.4 million and $418.6 million at December 31, 2019 and 2018, respectively. The carrying value of capitalized servicing rights, net of valuation allowances, is included in other assets. A summary of loan servicing rights follows: 2019 2018 2017 (dollars in thousands) Beginning of year servicing rights: $ 1,850 $ 2,125 $ 2,271 Amounts capitalized 694 388 587 Amortization (821 ) (663 ) (733 ) Impairment — — — End of year $ 1,723 $ 1,850 $ 2,125 Note 6 – Loan Servicing Assets (Continued) Amortization expense is estimated as follows: Year ending December 31, (dollars in thousands) 2020 $ 406 2021 352 2022 298 2023 243 2024 188 Thereafter 236 Total $ 1,723 The amortization does not anticipate or pro-forma loan prepayments. The fair value of mortgage servicing rights was $3.1 million and $3.5 million at December 31, 2019 and 2018, respectively. The key assumptions used to value mortgage servicing rights were as follows: 2019 2018 Weighted average remaining life 261 months 259 months Weighted average discount rate 12 % 12 % Weighted average coupon 4.04 % 4.02 % Weighted average prepayment speed 182 % 132 % |
Premises and Equipment
Premises and Equipment | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Premises and Equipment | Note 7 - Premises and Equipment The major classes of premises and equipment and the total accumulated depreciation at December 31, 2019 and 2018 are listed below: 2019 2018 (dollars in thousands) Land $ 3,192 $ 3,215 Building and improvements 15,783 15,150 ROU assets 1,945 — Furniture and equipment 8,518 8,808 Total fixed assets 29,438 27,173 Less accumulated depreciation 12,376 12,373 Net fixed assets $ 17,062 $ 14,800 Depreciation expense was $1.1 million for the year ended December 31, 2019 compared to $1.1 million and $857,000 for the comparable periods of 2018 and 2017, respectively, and is included in net occupancy expense. ROU assets are discussed further in Note 8 – Leases. |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Leases | Note 8 – Leases Our leases relate to three office locations, two of which are branch locations, with remaining terms of two to ten years. Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. As these extension options are not generally considered reasonably certain of exercise, they are not included in the lease term. As of December 31, 2019, operating lease ROU assets were $1.9 million and the lease liability was $2.0 million. The table below depicts information related to the Company’s leases: Twelve Months Ended December 31, 2019 (in thousands except percent and period data) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 357 ROU assets obtained in exchange for new operating lease liabilities 1,945 Weighted-average remaining lease term - operating leases, in years 7.6 Weighted-average discount rate - operating leases 2.9% Total rental expense related to the operating leases was $371,327, $339,782, and $155,757 for the years ended December 31, 2019, 2018 and 2017, respectively, and is included in net occupancy expense. A table detailing the lease expense associated with the aforementioned properties is below. December 31, (dollars in thousands) 2020 $ 381 2021 347 2022 225 2023 229 2024 233 Thereafter 846 Total lease payments 2,261 Less: Interest (249 ) Present value of lease liabilities $ 2,012 Lease Commitments Disclosure at December 31, 2018 Prior to Adoption of ASU 2016-02 Operating leases for 2018 and 2017 were accounted for under ASC 840, Leases. December 31, (dollars in thousands) 2019 $ 345 2020 345 2021 306 2022 189 2023 189 Thereafter 812 Total 2,186 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Deposits | Note 9 - Deposits The composition of deposits at December 31, 2019 and 2018 is as follows: 2019 2018 Amount Percentage of Total Amount Percentage of Total (dollars in thousands) Demand noninterest-bearing $ 150,283 26 % $ 129,714 23 % Interest checking and money market 263,136 45 % 324,391 57 % Savings 57,136 10 % 54,784 10 % Time deposits $250,000 and over 55,682 9 % 7,920 1 % Other time deposits 59,641 10 % 50,092 9 % Total $ 585,878 100 % $ 566,901 100 % The maturities of fixed-rate time deposits at December 31, 2019 are reflected in the table below: Time Deposits Other Year ending December 31, $250,000 and Over Time Deposits (dollars in thousands) 2020 53,866 39,650 2021 1,507 15,522 2022 309 2,977 2023 — 610 2024 — 882 Thereafter — — Total $ 55,682 $ 59,641 |
Short-Term Borrowed Funds
Short-Term Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Short-Term Borrowed Funds | Note 10 - Short-Term Borrowed Funds The following tables set forth certain information regarding the amounts, year-end weighted average rates, average balances, weighted average rate, and maximum month-end balances for short-term borrowed funds, at and during 2019 and 2018: 2019 2018 Amount Rate Amount Rate (dollars in thousands) At year-end Master notes and other short-term borrowing $ 626 0.89 % $ 1,190 1.49 % Notes payable — — — — Short-term line of credit — — — — $ 626 0.89 % $ 1,190 1.49 % 2019 2018 Amount Rate Amount Rate (dollars in thousands) Average for the year Federal funds purchased $ 2 3.04 % $ 2 2.92 % Master notes and other short-term borrowing 904 1.61 % 1,638 1.00 % Notes payable — — — — Short-term line of credit — — — — $ 906 1.62 % $ 1,640 1.00 % Note 10 - Short-Term Borrowed Funds (Continued) 2019 2018 (dollars in thousands) Maximum month-end balance Federal funds purchased — — Master notes and other short-term borrowing 1,486 2,006 Master notes and other secured borrowings represent an overnight investment in commercial paper issued by the Company to customers of its subsidiary bank, where an agreement is in place. The subsidiary bank has combined available lines of credit for federal funds and Federal Reserve discount window availability in the amount of $47.2 million at December 31, 2019. |
Long-Term Debt
Long-Term Debt | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Long-Term Debt | Note 11 - Long-Term Debt The Company has a line of credit with the Federal Home Loan Bank secured by qualifying first lien and second mortgage loans and commercial real estate loans with eligible collateral value of $98.0 million with remaining availability of $56.0 million at December 31, 2019. There were no long-term advances under this line at December 31, 2019 or at December 31, 2018. The subsidiary bank also has standby letters of credit issued by the Federal Home Loan Bank to be used as collateral for public funds deposits. The aggregate amount of the letters of credit was $42.0 million at December 31, 2019. During the third quarter of 2019, the Company conducted a private placement offering of fixed rate junior subordinated debt securities at $1,000 per security with a required minimum investment of $50,000. The offering raised $10.0 million, of which the entire $10.0 million was outstanding at December 31, 2019. These securities have a final maturity date of September 30, 2029 and may be redeemed by the Company after September 30, 2024. The junior subordinated debt pays interest quarterly at an annual fixed rate of 5.25%. All proceeds of this private placement qualify and are included in the calculation of Tier 2 capital. Once the final maturity drops under five years, the Company must impose a twenty percent annual reduction per year of the amount of the proceeds from the sale of these securities that are eligible to be counted as Tier 2 capital. The Company will have a twenty percent reduction beginning at September 30, 2024. As of December 31, 2019, the scheduled maturities of these long-term borrowings are as follows: Year ending December 31, (dollars in thousands) 2020 $ — 2021 — 2022 — 2023 — 2024 — Thereafter 9,992 Total $ 9,992 |
Income Tax Matters
Income Tax Matters | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Tax Matters | Note 12 - Income Tax Matters The significant components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are summarized as follows: 2019 2018 2017 (dollars in thousands) Current tax expense: Federal $ 662 $ 524 $ 1,022 State 94 94 96 Total 756 618 1,118 Deferred tax expense: Federal 26 (47 ) 680 State (11 ) 8 11 Total 15 (39 ) 691 Net provision for income taxes $ 771 $ 579 $ 1,809 The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized below: 2019 2018 2017 (dollars in thousands) Tax computed at the statutory federal rate $ 810 $ 642 $ 1,163 Increases (decrease) resulting from: Tax exempt interest, net (133 ) (143 ) (238 ) State income taxes, net of federal benefit 65 80 71 Revalue of deferred tax assets — — 812 Other 29 — 1 Provision for income taxes $ 771 $ 579 $ 1,809 Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. Significant components of deferred taxes at December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (dollars in thousands) Deferred tax assets relating to: Allowance for loan losses $ 478 $ 545 $ 569 Deferred compensation 1,078 1,012 936 Other 89 104 173 Lease liability 462 — — Net unrealized loss on securities available for sale — 505 335 Total deferred tax assets 2,107 2,166 2,013 Deferred tax liabilities relating to: Net unrealized gain on securities available for sale (96 ) — — Premises and equipment (184 ) (159 ) (213 ) Deferred loans fees and costs (159 ) (163 ) (148 ) Loan servicing (92 ) (99 ) (116 ) ROU asset (447 ) — — Total deferred tax liabilities (978 ) (421 ) (477 ) Net recorded deferred tax asset $ 1,129 $ 1,745 $ 1,536 The net deferred tax asset is included in other assets on the accompanying consolidated balance sheets. The Tax Cut and Jobs Act, or the Tax Act, was enacted on December 22, 2017. The SEC issued Staff Accounting Bulletin No. 118 to address uncertainty in applying ASC Topic 740 in the reporting period in which the Tax Act was enacted. The Tax Act included a reduction to the corporate income tax rate from 35 percent to 21 percent effective January 1, 2018. Tax expense was increased in the fourth quarter of 2017 by a provisional $806,000 to reflect the Tax Act changes. This increase includes $155,000 tax expense related to the revaluation of the deferred tax asset for items charged to AOCI. The revaluation of deferred tax assets related to items charged to AOCI was a component of 2017 income tax expense and recognized in continuing operations as required by ASC Topic 740. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Note 13 - Commitments and Contingencies Financial Instruments with Off-Balance Sheet Risk The subsidiary bank is party to financial instruments with off-balance sheet risks in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit, lines of credit and standby letters of credit. These instruments involve elements of credit risk in excess of amounts recognized in the accompanying financial statements. The subsidiary bank’s risk of loss with the unfunded loans and lines of credit or standby letters of credit is represented by the contractual amount of these instruments. The Bank uses the same credit policies in making commitments under such instruments as it does for on-balance sheet instruments. The amount of collateral obtained, if any, is based on management’s credit evaluation of the borrower. Collateral held varies, but may include accounts receivable, inventory, real estate and time deposits with financial institutions. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. Credit card commitments are unsecured. As of December 31, 2019 and 2018, outstanding financial instruments whose contract amounts represent credit risk were as follows: 2019 2018 (dollars in thousands) Commitments to extend credit $ 134,241 $ 110,329 Credit card commitments 11,650 10,611 Standby letters of credit 1,213 933 $ 147,104 $ 121,873 Contingencies In the normal course of business, the Company is involved in various legal proceedings. In the opinion of management, any liability resulting from such proceedings would not have a material adverse effect on the consolidated financial statements. Financial Instruments with Concentration of Credit Risk The subsidiary bank makes commercial, agricultural, real estate mortgage, home equity and consumer loans primarily in Stanly, Anson, Cabarrus and Mecklenburg counties. A substantial portion of the Company’s customers’ ability to honor their contracts is dependent on the economy in these counties. Although the Company’s composition of loans is diversified, there is some concentration of mortgage real estate loans, primarily 1-to-4 family residential mortgage loans and in commercial loans secured primarily by real estate, shopping center locations, commercial land development, commercial buildings and equipment in the total portfolio. The Bank’s policy is to abide by real estate loan-to-value margin limits corresponding to guidelines issued by the federal supervisory agencies on March 19, 1993. The Bank’s lending policy for all loans requires that they be supported by sufficient cash flows at the time of origination. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 14 - Related Party Transactions The Company has granted loans to certain directors and executive officers and their related interests. Such loans are made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other borrowers and, in management’s opinion, do not involve more than the normal risk of collectability. All loans to directors and executive officers or their related interests are submitted to the Board of Directors for approval. A summary of loans to directors, executive officers and their related interests follows: 2019 2018 (dollars in thousands) Balance, at beginning of the year $ 9,284 $ 8,692 Disbursements during the year 4,833 1,902 Collections during the year (3,822 ) (1,310 ) Balance, at end of the year $ 10,295 $ 9,284 At December 31, 2019, the Company had approved, but unused lines of credit, totaling $1.3 million to executive officers and directors, and their related interests, compared to $3.9 million at December 31, 2018. In addition, at December 31, 2019, the Company had $12.7 million of deposits for executive officers and directors, and their related interest compared to $10.6 million at December 31, 2018. In addition to deposits and loans, certain directors have been issued the subordinated debt of the Company. The amount of related interest in the Company’s subordinated debt in 2019 is $1.1 million compared to $795,000 at December 31, 2018. During 2017, the Company’s broker-dealer subsidiary (The Strategic Alliance Corp) brokered a private placement offering in the amount of $4.1 million, producing revenue in 2017 of $202,250. Certain officers and directors of the Bank were involved with the transaction as investors in the private placement. |
Shareholders' Equity and Regula
Shareholders' Equity and Regulatory Matters | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Shareholders' Equity and Regulatory Matters | Note 15 – Shareholders’ Equity and Regulatory Matters The Company and its banking subsidiary are subject to certain requirements imposed by state and federal banking statutes and regulations. These requirements, among other things, establish minimum levels of capital, restrict the amount of dividends that may be distributed, and require that reserves on deposit liabilities be maintained in the form of vault cash or deposits with the Federal Reserve Bank. For the reserve maintenance period in effect at December 31, 2019, the subsidiary bank was required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank in the aggregate amount of $4.9 million as reserves on deposit liabilities. The Company and its subsidiary bank are subject to federal regulatory risk-based capital guidelines for banks and bank holding companies. Each must meet specific capital guidelines that involve quantitative measures of assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices which measure Total Capital, Tier 1 Capital and Common Equity Tier 1 Capital to risk-weighted assets and Tier 1 Capital to average assets. In 2013, bank regulatory agencies approved regulatory capital guidelines (“Basel III”) aimed at strengthening existing capital requirements for banking organizations. The rules include a common equity Tier 1 capital to risk-weighted assets minimum ratio of 4.50%, a minimum ratio of Tier 1 capital to risk-weighted assets of 6.00%, require a minimum ratio of total capital to risk-weighted assets of 8.00%, and require a minimum Tier 1 leverage ratio of 4.00%. A capital conservation buffer, comprised of common equity Tier 1 capital, was also established above the regulatory minimum capital requirements. This capital conservation buffer will be phased in beginning January 1, 2016 at 0.625% of risk-weighted assets and increase each subsequent year by an additional 0.625% until reaching its final level of 2.50% on January 1, 2019. Strict eligibility criteria for regulatory capital instruments were also implemented under the rules. The rules also revise the definition and calculation of Tier 1 capital, total capital, and risk-weighted assets. The phase-in period for the rules became effective for the Company and its subsidiary bank on January 1, 2015, with full compliance of all the rules’ requirements phased in over a multi-year schedule, becoming fully phased-in on January 1, 2019. As of December 31, 2019, the Company and its subsidiary bank continue to exceed minimum capital standards and remain well-capitalized under the capital adequacy rules. Quantitative measures established by regulation to ensure capital adequacy and the Company’s consolidated capital ratios are set forth in the table below. The Company expects to meet or exceed these minimums without altering current operations or strategy. Minimum to Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Requirement Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total Capital to Risk Weighted Assets: Consolidated $ 60,509 14.1 % $ 34,387 8.0 % $ 42,984 10.0 % Uwharrie Bank 58,082 13.6 % 34,098 8.0 % 42,622 10.0 % Tier 1 Capital to Risk Weighted Assets: Consolidated 48,536 11.3 % 25,790 6.0 % 34,387 8.0 % Uwharrie Bank 56,101 13.2 % 25,573 6.0 % 34,098 8.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: Consolidated 37,881 8.8 % 19,343 4.5 % 27,940 6.5 % Uwharrie Bank 45,446 10.7 % 19,180 4.5 % 27,704 6.5 % Tier 1 Capital to Average Assets: Consolidated 48,536 7.4 % 26,336 4.0 % 32,920 5.0 % Uwharrie Bank 56,101 8.5 % 26,249 4.0 % 32,812 5.0 % Note 15 – Shareholders’ Equity and Regulatory Matters (Continued) Minimum to Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Requirement Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Total Capital to Risk Weighted Assets: Consolidated $ 58,777 14.0 % $ 33,660 8.0 % $ 42,076 10.0 % Uwharrie Bank 57,765 13.8 % 33,460 8.0 % 41,826 10.0 % Tier 1 Capital to Risk Weighted Assets: Consolidated 46,869 11.1 % 25,245 6.0 % 33,660 8.0 % Uwharrie Bank 55,391 13.2 % 25,095 6.0 % 33,460 8.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: Consolidated 36,214 8.6 % 18,934 4.5 % 27,349 6.5 % Uwharrie Bank 44,736 10.7 % 18,821 4.5 % 27,187 6.5 % Tier 1 Capital to Average Assets: Consolidated 46,869 7.4 % 25,347 4.0 % 31,683 5.0 % Uwharrie Bank 55,391 8.8 % 25,254 4.0 % 31,567 5.0 % As of December 31, 2019, the most recent notification from the Federal Deposit Insurance Corporation categorized the Company’s subsidiary bank as being well capitalized under the regulatory framework for prompt corrective action. There have been no conditions or events since such notification that management believes would have changed the categorization. In January 2013, the Company’s subsidiary bank issued $7.9 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B. The preferred stock qualifies as Tier 1 capital at the subsidiary bank and pays dividends at a rate of 5.30%. The offering raised $7.9 million less issuance costs of $113,000. During 2013, the Company’s subsidiary bank raised $2.8 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C. The preferred stock qualifies as Tier 1 capital at the bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. The offering raised $2.8 million in new capital less total issuance costs of $23,000. The total net amount of capital raised from Fixed Rate Noncumulative Perpetual Preferred Stock, Series B and Series C issued at the subsidiary bank level is presented as noncontrolling interest in the consolidated balance sheets. During the third quarter of 2019, the Company conducted a private placement offering of fixed rate junior subordinated debt securities at $1,000 per security with a required minimum investment of $50,000. The offering raised $10.0 million, of which the entire $10.0 million was outstanding at December 31, 2019. These securities have a final maturity date of September 30, 2029 and may be redeemed by the Company after September 30, 2024. The junior subordinated debt pays interest quarterly at an annual fixed rate of 5.25%. All proceeds of this private placement qualify and are included in the calculation of Tier 2 capital. Once the final maturity drops under five years, the Company must impose a twenty percent annual reduction per year of the amount of the proceeds from the sale of these securities that are eligible to be counted as Tier 2 capital. The Company will have a twenty percent reduction beginning at September 30, 2024. All of the Company’s aforementioned investment in its subsidiary bank qualifies for Tier 1 capital treatment for the bank and is included as such in its year end capital ratios. Note 15 – Shareholders’ Equity and Regulatory Matters (Continued) Stock Repurchase Program On February 21, 1995, the Company’s Board of Directors authorized and approved a Stock Repurchase Program, to be reaffirmed annually, pursuant to which the Company may repurchase shares of the Company’s common stock for the primary purpose of providing liquidity to its shareholders. During 2019, the Company repurchased 168,683 shares of outstanding common stock and repurchased 138,629 and 75,709 shares of outstanding common stock during 2018 and 2017, respectively. |
Stock Based Compensation
Stock Based Compensation | 12 Months Ended |
Dec. 31, 2019 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Based Compensation | Note 16 - Stock Based Compensation During 2006, the Company adopted the 2006 Incentive Stock Option Plan (“SOP II”) and the Employee Stock Purchase Plan (“SPP II”), under which options to purchase shares of the Company’s common stock may be granted to officers and eligible employees. Options granted under the SOP II are exercisable in established increments according to vesting schedules, generally three to five years, and will expire if not exercised within ten years of the date of grant. Options granted under the SPP II are fully vested at the date of grant and expire if not exercised within two years of the grant date. At December 31, 2019, both the SOP II plan and the SPP II plan had expired with no options outstanding. As of December 31, 2019, there was no unrecognized compensation cost related to non-vested share-based compensation arrangements granted under all of the Company’s stock benefit plans. There were 13,378 options exercised in 2018 at a weighted average exercise price of $4.93. There were no options exercised in 2019 or 2017. |
Employee and Director Benefit P
Employee and Director Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Postemployment Benefits [Abstract] | |
Employee and Director Benefit Plans | Note 17 - Employee and Director Benefit Plans Employees’ 401(k) Retirement Plan The Company has established an associate tax deferred savings plan under Section 401(k) of the Internal Revenue Code of 1986. All associates are eligible to make elective deferrals on the first day of the calendar month coincident or next following the date the associate attains the age of 18 and completes thirty days of eligibility service. Employees are 100% vested in the plan once they enroll. The Company’s annual contribution to the plan was $446,228 in 2019, $428,162 in 2018 and $361,936 in 2017, determined as follows: • The Company will contribute a safe harbor matching contribution in an amount equal to: (i) 100% of the matched employee contributions that are not in excess of 3% of compensation, plus (ii) 50% of the amount of the matched employee contributions that exceed 3% of compensation, but do not exceed 5% of compensation. • A discretionary contribution, subject to approval by the Board of Directors, limited to an amount not to exceed the maximum amount deductible for income tax purposes. Note 17 - Employee and Director Benefit Plans (Continued) Supplemental Executive Retirement Plan The Company has implemented a non-qualifying deferred compensation plan for certain executive officers. Certain of the plan benefits will accrue and vest during the period of employment and will be paid in fixed monthly benefit payments for up to ten years upon separation from service. The plan also provides for payment of death benefits and for payment of disability benefits in the event the officer becomes permanently disabled prior to separation from service. Effective December 31, 2008, this plan was amended and restated to comply with Section 409A of the Internal Revenue Code. The participants’ account liability balances as of December 31, 2008 could be transferred into a trust fund, where investments will be participant-directed. The plan is structured as a defined contribution plan and the Company’s expected annual funding contribution for the participants has been calculated through the participant’s expected retirement date. Under terms of the agreement, the Company has reserved the absolute right, at its sole discretion, to either fund or refrain from funding the plan. The plan also provides for payment of death benefits and for payment of disability benefits in the event the officer becomes permanently disabled prior to separation from service. The plans assets are maintained in a rabbi trust and are recorded at fair value with the corresponding liability adjusted to the same fair value. During each year of 2019, 2018 and 2017, $336,800 was expensed for benefits provided under the plans. The liability accrued for deferred compensation under the plan amounted to $4.7 million and $4.4 million at December 31, 2019 and 2018, respectively. Note 17 - Employee and Director Benefit Plans (Continued) Split-Dollar Life Insurance The Company has entered into Life Insurance Endorsement Method Split-Dollar Agreements with certain officers. Under these agreements, upon death of the officer, the Company first recovers the cash surrender value of the contract and then shares the remaining death benefits from insurance contracts, which are written with different carriers, with the designated beneficiaries of the officers. The death benefit to the officers’ beneficiaries is a multiple of base salary at the time of the agreements. The Company, as owner of the policies, retains an interest in the life insurance proceeds and a 100% interest in the cash surrender value of the policies. During 2019, 2018, and 2017, the expense associated with these policies was $13,107, $1,846, and $10,533 respectively. The liability associated with the split-dollar life insurance policies is $786,000 and $773,000 at December 31, 2019 and 2018, respectively. Stock Grant Plan During 2015, the Company adopted the 2015 Stock Grant Plan (“SGP”), under which the Company, at its discretion, may choose to make grants or awards of Uwharrie Capital Corp common stock (the “Common Stock”) to employees, directors or independent contractors of the Company or its subsidiaries as an alternate form of compensation or as a performance bonus. Shares of Common Stock to be used for Stock Grants under this Plan will be outstanding shares purchased by a revocable trust formed by the Company (the “Trust”). Participants will be 100% vested in the shares purchased on their behalf as soon as the Trust’s purchase is completed. The Company recognizes expense for the value of the shares at the time they are purchased by the Trust. During 2019 there were 14,400 shares granted at an expense of $72,000 compared to 8,926 shares granted at an expense of $50,000 in 2018 and 8,734 shares granted at an expense of $50,000 in 2017. |
Fair Values of Financial Instru
Fair Values of Financial Instruments and Interest Rate Risk | 12 Months Ended |
Dec. 31, 2019 | |
Investments All Other Investments [Abstract] | |
Fair Values of Financial Instruments and Interest Rate Risk | Note 18 - Fair Values of Financial Instruments and Interest Rate Risk ASC 825, “Disclosures about Fair Value of Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those that are not measured and reported at fair value on a recurring basis or non-recurring basis. The fair value estimates presented at December 31, 2019 and December 31, 2018, are based on relevant market information and information about the financial instruments. Fair value estimates are intended to represent the price an asset could be sold at or the price a liability could be settled for. However, given there is no active market or observable market transactions for many of the Company’s financial instruments, the Company has made estimates of many of these fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values. The estimated fair values disclosed in the following table do not represent market values of all assets and liabilities of the Company and should not be interpreted to represent the underlying value of the Company. The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of December 31, 2019 and December 31, 2018: Carrying Estimated December 31, 2019 Value Fair Value Level 1 Level 2 Level 3 (dollars in thousands) FINANCIAL ASSETS Cash and cash equivalents $ 155,198 $ 117,938 $ 115,693 $ 2,245 $ — Securities available for sale 88,524 88,524 5,012 83,512 — Securities held to maturity 13,428 13,499 — 10,499 3,000 Loans held for investment, net 355,969 354,269 — — 354,269 Loans held for sale 2,946 2,946 — 2,946 — Restricted stock 1,144 1,144 1,144 — — Loan servicing rights 1,723 3,228 — 3,228 — Accrued interest receivable 1,666 1,666 — — 1,666 FINANCIAL LIABILITIES Deposits $ 585,878 567,130 $ — $ 567,130 $ — Short-term borrowings 626 626 — 626 — Long-term debt 9,992 10,180 — — 10,180 Accrued interest payable 55 55 — — 55 Note 18 - Fair Values of Financial Instruments and Interest Rate Risk (Continued) Carrying Estimated December 31, 2018 Value Fair Value Level 1 Level 2 Level 3 (dollars in thousands) FINANCIAL ASSETS Cash and cash equivalents $ 117,934 $ 117,901 $ 115,693 $ 2,208 $ — Securities available for sale 91,299 91,299 4,955 86,344 — Securities held to maturity 10,837 10,750 — 10,750 — Loans held for investment, net 367,596 364,636 — — 364,636 Loans held for sale 4,800 4,800 — 4,800 — Restricted stock 1,094 1,094 1,094 — — Mortgage servicing rights 1,850 3,455 — 3,455 — Accrued interest receivable 1,763 1,763 — — 1,763 FINANCIAL LIABILITIES Deposits $ 566,901 $ 521,508 $ — $ 521,508 $ — Short-term borrowings 1,190 1,190 — 1,190 — Long-term debt 9,974 10,086 — — 10,086 Accrued interest payable 16 16 — — 16 At December 31, 2019, the subsidiary bank had outstanding standby letters of credit and commitments to extend credit. These off-balance sheet financial instruments are generally exercisable at the market rate prevailing at the date the underlying transaction will be completed. The fair value is not material. See Note 13. Note 18 - Fair Values of Financial Instruments and Interest Rate Risk (Continued) The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018: December 31, 2019 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: US Treasury $ 5,012 $ 5,012 $ — $ — US Government 25,686 — 25,686 — Mortgage-backed securities and CMO’s 38,576 — 38,576 — State and political subdivisions 14,221 — 14,221 — Corporate bonds 5,029 — 5,029 — Total assets at fair value $ 88,524 $ 5,012 $ 83,512 $ — Total liabilities at fair value $ — $ — $ — $ — December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: US Treasury $ 4,955 $ 4,955 $ — $ — US Government 51,916 — 51,916 — Mortgage-backed securities and CMO’s 16,702 — 16,702 — State and political subdivisions 12,955 — 12,955 — Corporate bonds 4,771 — 4,771 — Total assets at fair value $ 91,299 $ 4,955 $ 86,344 $ — Total liabilities at fair value $ — $ — $ — $ — The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets re-measured at fair value during the period are included in the table below as of December 31, 2019 and December 31, 2018: December 31, 2019 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans $ 3,771 $ — $ — $ 3,771 Other real estate owned 364 — — 364 Total assets at fair value $ 4,135 $ — $ — $ 4,135 Total liabilities at fair value $ — $ — $ — $ — December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans $ 3,279 $ — $ — $ 3,279 Other real estate owned 951 — — 951 Total assets at fair value $ 4,230 $ — $ — $ 4,230 Total liabilities at fair value $ — $ — $ — $ — Quantitative Information about Level 3 Fair Value Measurements Note 18 - Fair Values of Financial Instruments and Interest Rate Risk (Continued) General December 31, 2019 Valuation Technique Unobservable Input Range Nonrecurring measurements: Impaired loans Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 25% Discounted cash flows Discount rates 4%-8.75% OREO Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 10% General December 31, 2018 Valuation Technique Unobservable Input Range Nonrecurring measurements: Impaired loans Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 25% Discounted cash flows Discount rates 4%-8.75% OREO Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 10% At December 31, 2019 and 2018, impaired loans were being evaluated with discounted expected cash flows for performing TDRs and discounted appraisals were being used on collateral dependent loans. |
Parent Company Financial Data
Parent Company Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Parent Company Financial Data | Note 19 - Parent Company Financial Data The following is a summary of the condensed financial statements of Uwharrie Capital Corp: Condensed Balance Sheets December 31, 2019 2018 (dollars in thousands) Assets Cash and demand deposits $ 526 $ 287 Interest-earning deposits 1,589 1,256 Investments in: Bank subsidiaries 45,770 43,042 Nonbank subsidiaries 381 450 Other assets 2,073 1,638 Total assets $ 50,339 $ 46,673 Liabilities and shareholders’ equity Master notes $ 626 $ 1,190 Short term debt — — Long term debt 9,992 9,974 Other liabilities 1,518 989 Total liabilities 12,136 12,153 Shareholders’ equity 38,203 34,520 Total liabilities and shareholders’ equity $ 50,339 $ 46,673 Note 19 - Parent Company Financial Data (Continued) Condensed Statements of Income 2019 2018 2017 (dollars in thousands) Equity in undistributed earnings (loss) of subsidiaries $ 1,206 $ 2,026 $ 745 Dividends received from subsidiaries 2,750 1,150 1,500 Interest income 15 17 6 Other income 41 80 93 Interest expense (577 ) (571 ) (564 ) Other operating expense (578 ) (410 ) (436 ) Income tax benefit 230 185 267 Net income $ 3,087 $ 2,477 $ 1,611 Consolidated net income $ 3,087 $ 2,477 $ 1,611 Less: Net income attributable to noncontrolling interest (564 ) (570 ) (592 ) Net income attributable to Uwharrie Capital Corp 2,523 1,907 1,019 Net income available to common shareholders $ 2,523 $ 1,907 $ 1,019 Net income per common share Basic $ 0.36 $ 0.26 $ 0.14 Diluted $ 0.36 $ 0.26 $ 0.14 Weighted average shares outstanding Basic 7,066,880 7,229,333 7,427,036 Diluted 7,066,880 7,229,333 7,427,804 Condensed Statements of Cash Flows 2019 2018 2017 (dollars in thousands) Cash flows from operating activities Net income $ 3,087 $ 2,477 $ 1,611 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (earnings) loss of subsidiaries (1,206 ) (2,026 ) (745 ) Increase in other assets (435 ) (198 ) (124 ) Increase in other liabilities 528 220 267 Net cash provided by operating activities 1,974 473 1,009 Cash flows from financing activities Decrease in master notes (564 ) (562 ) (410 ) Decrease in short-term debt — — (500 ) Increase (decrease) in long-term debt (440 ) 440 — Net increase in subordinated debentures 458 — — Net increase in investment in subsidiaries — (250 ) — Net proceeds from issuance of common stock - stock options — 65 — Repurchase of common stock, net (850 ) (747 ) (391 ) Cash paid for fractional shares (7 ) (7 ) (7 ) Other, net 1 — — Net cash used by financing activities (1,402 ) (1,061 ) (1,308 ) Net decrease in cash and cash equivalents 572 (588 ) (299 ) Cash and cash equivalents at beginning of year 1,543 2,131 2,430 Cash and cash equivalents at end of year $ 2,115 $ 1,543 $ 2,131 |
Selected Financial Data
Selected Financial Data | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Financial Data | Selected Financial Data (dollars in thousands except ratios, per share and shares outstanding information) 2019 2018 2017 2016 2015 Summary of Operations Interest income $ 23,767 $ 21,873 $ 19,340 $ 18,046 $ 17,847 Interest expense 3,565 1,882 1,277 1,310 1,733 Net interest income 20,202 19,991 18,063 16,736 16,114 Provision for (recovery of) loan losses (588 ) 90 (236 ) (88 ) (620 ) Noninterest income 9,005 8,279 8,425 9,357 7,712 Noninterest expense 25,937 25,124 23,304 23,075 21,633 Income taxes 771 579 1,809 895 806 Net income $ 3,087 $ 2,477 $ 1,611 $ 2,211 $ 2,007 Less: Net income attributable to noncontrolling interest (564 ) (570 ) (592 ) (593 ) (592 ) Less: Dividends on preferred stock $ — $ — $ — $ — $ — Net Income (loss) available to common shareholders $ 2,523 $ 1,907 $ 1,019 $ 1,618 $ 1,415 Per Common Share Net income – basic (1) $ 0.35 $ 0.26 $ 0.14 $ 0.21 $ 0.19 Net income (loss) – diluted (1) 0.35 0.26 0.14 0.21 0.19 Book value (1) 5.38 4.75 4.58 4.40 4.33 Weighted Average Shares Outstanding: Basic (1) 7,199,262 7,229,333 7,427,036 7,531,360 7,634,024 Diluted (1) 7,199,262 7,229,333 7,427,804 7,531,470 7,634,024 Ratios Return on average assets 0.48 % 0.40 % 0.28 % 0.41 % 0.38 % Return on average equity 6.43 % 5.57 % 3.62 % 4.99 % 4.65 % Average equity to average assets 7.43 % 7.26 % 7.78 % 8.29 % 8.27 % Selected Year-end Balances Assets $ 656,793 $ 632,304 $ 577,253 $ 548,230 $ 532,202 Loans held for investment 357,950 369,970 356,871 341,829 320,132 Securities 101,952 102,136 107,201 117,889 100,500 Deposits 585,878 566,901 512,628 485,719 467,733 Borrowed funds 10,618 11,164 11,286 12,208 15,305 Shareholders’ equity 48,858 45,175 44,540 43,525 43,314 Selected Average Balances Assets $ 645,681 $ 612,403 $ 572,630 $ 534,296 $ 521,699 Loans held for investment 369,540 369,419 348,980 334,317 316,485 Securities 100,775 103,223 113,025 107,396 112,348 Deposits 575,480 548,296 509,352 470,921 458,655 Borrowed funds 10,956 11,284 11,679 12,898 14,432 Shareholders’ equity 47,993 44,468 44,542 44,283 43,123 (1) Net income per share, book value per share, weighted average shares outstanding and shares outstanding at year-end for years 2018 through 2015 have been adjusted to reflect the 2% stock dividends in 2019, 2018, 2017 and 2016. |
Significant Accounting Polici_2
Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Significant Accounting Policies [Line Items] | |
Nature of Business | Nature of Business Uwharrie Capital Corp (the “Company”) was incorporated under North Carolina law for the purpose of becoming the holding company for Bank of Stanly (“Stanly”). On July 1, 1993, Stanly became a wholly-owned subsidiary of the Company through a one-for-one exchange of the common stock of Stanly for common stock of the Company. On September 1, 2013, Bank of Stanly changed its name to Uwharrie Bank (“Uwharrie” or the “Bank”). Uwharrie was incorporated on September 28, 1983, under the laws of the State of North Carolina and began operations on January 26, 1984 in Albemarle, North Carolina. Deposits with Uwharrie are insured by the Federal Deposit Insurance Corporation (“FDIC”). Uwharrie is under regulation of the Federal Reserve, the FDIC and the North Carolina Commissioner of Banks. In North Carolina, Uwharrie has ten branch locations that provide a wide range of deposit accounts, commercial, consumer, home equity and residential mortgage loans, safe deposit boxes and automated banking. In 1987, Uwharrie established a wholly-owned subsidiary, BOS Agency, Inc. (“BOS Agency”), which engages in insurance product sales. In 1989, Uwharrie established a second wholly-owned subsidiary, BOS Financial Corporation, for the purpose of conducting business as a “broker dealer” in securities. During 1993, BOS Financial Corporation changed its name to The Strategic Alliance Corporation (“Strategic Alliance”) and was registered as a “broker dealer” and is regulated by the Financial Industry Regulatory Authority (“FINRA”). The Company formed a new subsidiary, Strategic Investment Advisors, Inc. (“SIA”), during 1998 to provide investment advisory and asset management services. This subsidiary is registered as an investment advisor with the Securities and Exchange Commission. During 2015, SIA changed its name to Uwharrie Investment Advisors, Inc. (“UIA”). On January 19, 2000, the Company completed its acquisition of Anson BanCorp, Inc. and its subsidiary, Anson Savings Bank. The savings bank retained its North Carolina savings bank charter and became a wholly-owned subsidiary of Uwharrie Capital Corp as Anson Bank & Trust Company (“Anson”), operating out of its main office branch in Wadesboro. Anson was consolidated into Uwharrie Bank effective September 1, 2013. On August 4, 2000, Uwharrie acquired another subsidiary, Gateway Mortgage, Inc. (“Gateway”), a mortgage origination company. This company is currently inactive and does not affect the Company’s consolidated financial statements. On April 10, 2003, the Company capitalized a new wholly-owned subsidiary bank, Cabarrus Bank & Trust Company (“Cabarrus”), located in Concord, North Carolina. As of that date, Cabarrus purchased two branch offices located in Cabarrus County from Uwharrie to begin its operation. Cabarrus operated as a commercial bank and provided a full range of banking services. Cabarrus was consolidated into Uwharrie Bank effective September 1, 2013. On April 7, 2004 Uwharrie Mortgage, Inc. was established as a subsidiary of the Company to serve in the capacity of trustee and substitute trustee under deeds of trust. |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, Uwharrie, UIA and Uwharrie’s subsidiaries, BOS Agency and Strategic Alliance. All significant intercompany transactions and balances have been 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 (“GAAP”), requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and the 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. |
Cash and Cash Equivalents | Cash and Cash Equivalents For the purpose of presentation in the consolidated statements of cash flows, cash and cash equivalents are defined as those amounts included in the balance sheet captions “Cash and due from banks” and “Interest-earning deposits with banks.” |
Loans Held for Sale | Loans Held for Sale Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. |
Loans | Loans The Company divides the loans it originates into two segments, commercial and noncommercial loans. Commercial loans are broken down into the following classes: commercial loans, real estate commercial loans and other real estate construction loans. Noncommercial loans are divided into the following classes: real estate 1-4 family construction, real estate 1-4 family residential loans, home equity loans, consumer loans and other loans. The ability of the Company’s borrowers to honor their contracts is largely dependent upon the real estate and general economic conditions in the Company’s market area. Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding unpaid principal balances adjusted for charge-offs, the allowance for loan losses, and any deferred fees or costs. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized as an adjustment of the related loan yield using the effective interest method. The accrual of interest on mortgage and commercial loans is discontinued at the time the loan is 90 days delinquent unless the credit is well-secured and in process of collection. Credit card loans and other personal loans are typically charged off no later than 180 days past due. In all cases, loans are placed on nonaccrual or charged off at an earlier date if collection of principal or interest is considered doubtful. The exception to this policy is credit card loans that remain in accrual status 90 days or more until they are paid current or charged off. 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 impaired loans is accounted for on a cash basis 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. Generally, a minimum of six months of sustained performance is required. |
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. The provision for loan losses is expensed to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Company has different specific risks identified within the loan segments. Specific risks within the commercial loan segment arise with borrowers that are experiencing diminished operating cash flows, depreciated collateral values or prolonged sales and rental absorption periods. Concentrations within the portfolio, if unmanaged, pose additional risk. Occasionally, the Company will purchase participation loans from other institutions. If these loans are not independently underwritten by the Bank, they could carry additional risk. Generally, owner-occupied commercial real estate loans carry less risk than non-owner occupied. Specific risks within the non-commercial portfolio tend to be tied to economic factors including high unemployment and decreased real estate values. Risk to the Company is greater as home values deteriorate more rapidly than amortization in a loan, leaving little to no equity in properties, especially in junior lien positions. Concentration in the portfolio, such as home equity lines of credit, could pose additional risk if not appropriately managed. The allowance for loan losses is evaluated both individually and collectively by loan class on a regular basis by management. Loans are collectively evaluated 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. Individually evaluated loans are based upon discounted cash flows or the underlying value of the collateral. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. In addition, regulatory examiners may require the Company to recognize adjustments to the allowance for loan losses based on their judgment about information available to them at the time of their assessment. 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 all of the circumstances surrounding the loan and the borrower, including the length of the delay, amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial 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. Homogeneous loans are collectively evaluated by loan class for impairment. However, once a loan is deemed impaired, it will be evaluated individually for specific impairment. Troubled debt restructure loans (TDRs) are modifications of a loan when a borrower is experiencing financial difficulty and the modification involves providing a concession to the existing loan contract. TDRs are considered to be impaired loans and are individually evaluated for impairment. The portion of the Company’s allowance for loan loss model related to general reserves captures the mean loss of individual loans within the loan portfolio and adds additional loss based on economic uncertainty and volatility. Specifically, the Company calculates probable losses on loans by computing a probability of loss and multiplying that by a loss given default derived from historical experience, thus deriving the estimated loss scenario by FDIC call report codes. Together, these components, as well as a reserve for qualitative factors based on management’s discretion of economic conditions and portfolio concentrations, form the basis of the allowance model. The loans that are impaired and included in the specific reserve are excluded from these calculations. |
Loan Servicing Rights | Loan Servicing Rights The Company capitalizes mortgage and Small Business Administration (SBA) loan servicing rights when loans are sold and the loan servicing is retained. The amortization of servicing rights is realized over the estimated period that net servicing revenues are expected to be received. These projections are based on the amount and timing of estimated future cash flows. The amortization of servicing rights is recognized in the statement of income as an offset to other noninterest income. Servicing assets are periodically evaluated for impairment based upon their fair value. Fair value is based upon discounted cash flows using market-based assumptions. Impairment is recognized through a valuation allowance and charged to other expense. |
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, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
Foreclosed Real Estate | Foreclosed Real Estate Real estate properties acquired through foreclosure or other proceedings are initially recorded at fair value less costs to sell upon foreclosure, establishing a new cost basis. Annually, valuations are performed and the foreclosed property is adjusted to the lower of cost or fair value of the properties, less costs to sell. Any write-down at the time of transfer to foreclosed properties is charged to the allowance for loan losses. Subsequent write-downs are charged to noninterest expense, and costs related to the improvement of the property are capitalized if the fair value less cost to sell will allow it. If not, these costs are expensed also. |
Premises and Equipment | Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Land is carried at cost. Additions and major replacements or betterments which extend the useful lives of premises and equipment are capitalized. Maintenance, repairs and minor improvements are expensed as incurred. Depreciation is computed principally by the straight-line method over estimated useful lives, except in the case of leasehold improvements, which are amortized over the term of the leases, if shorter. Useful lives range from five to seven years for furniture, fixtures and equipment, to ten to thirty-nine years for leasehold improvements and buildings, respectively. Upon retirement or other disposition of the assets, the cost and the related accumulated depreciation are removed from the accounts and any gains or losses are reflected in income. ROU assets that are recognized at the initial adoption of a lease arrangement are included in premises and equipment. More information regarding ROU assets can be found in Note 8 (Leases). |
Restricted Stock | Restricted Stock As a requirement for membership, the Bank invests in the stock of the Federal Home Loan Bank of Atlanta (“FHLB”) and Federal Reserve Bank (“FRB”). These investments are carried at cost. Due to the redemption provisions of these investments, the Company estimated that fair value approximates cost and that this investment was not impaired. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes the cost of employee services received in exchange for an award of equity instruments in the financial statements over the period the employee is required to perform the services in exchange for the award (presumptively the vesting period). Accounting Standards Codification (ASC) 718 also requires measurement of the cost of employee services received in exchange for an award based on the grant-date fair value of the award. As of December 31, 2019 and December 31, 2018, there are no outstanding awards. |
Income Taxes | Income Taxes The Company and its subsidiaries file a consolidated federal income tax return and separate North Carolina income tax returns. The provision for income taxes in the accompanying consolidated financial statements is provided on a liability method whereby deferred tax assets are recognized for deductible temporary differences and deferred tax liabilities are recognized for taxable temporary differences. Temporary differences are the differences between the reported amounts of assets and liabilities and their tax bases. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. Deferred tax assets and liabilities are adjusted for the effects of changes in tax laws and rates on the date of enactment. We record uncertain tax positions in accordance with ASC 740 on the basis of a two-step process whereby (1) we determine whether it is more likely than not that the tax positions will be sustained on the basis of the technical merits of the position and (2) for those tax positions that meet the more-likely-than-not recognition threshold. The tax returns for the Company are subject to audit for the 2016 fiscal year and thereafter. It is the Company’s policy to recognize interest and penalties associated with uncertain tax positions as components of other expenses in the income statement; however, if interest becomes a material amount, it would be reclassified as interest expense. There were no interest or penalties accrued during the years ended December 31, 2019, 2018 and 2017. |
Leases | Leases Operating leases in which we are the lessee are recorded as operating lease ROU assets and operating lease liabilities, included in premises and equipment and other liabilities, respectively, on our consolidated balance sheet. We do not currently have any significant finance leases in which we are the lessee. Operating lease ROU assets represent our right to use an underlying asset during the lease term and operating lease liabilities represent our obligation to make lease payments arising from the lease. ROU assets and operating Note 1 - Significant Accounting Policies (Continued) lease liabilities are recognized at lease commencement based on the present value of the remaining lease payments using a discount rate that represents our incremental collateralized borrowing rate at the lease commencement date. ROU assets are further adjusted for the lease incentives. Operating lease expense, which is comprised of amortization of the ROU asset and the implicit interest accreted on the operating lease liability, is recognized on a straight-line basis over the lease term, and is recorded in the net occupancy expense in the consolidated statement of income |
Revenue Recognition | Revenue Recognition Under ASU 2014-09, “Revenue from Contracts with Customers (Topic 606)”, for revenue not associated with financial instruments, guarantees and lease contracts, we apply the following steps when recognizing revenue from contracts with customers: (i) identify the contract, (ii) identify the performance obligations, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations and (v) recognize revenue when the performance obligation is satisfied. Our contracts with customers are generally short term in nature, typically due within one year or less or cancellable by us or our customer upon a short notice period. Performance obligations for our customer contracts are generally satisfied at a single point in time, typically when the transaction is complete, or over time. For performance obligations satisfied over time, we primarily use the output method, directly measuring the value of the products/services transferred to the customer, to determine when performance obligations have been satisfied. We typically receive payment from customers and recognize revenue concurrent with the satisfaction of our performance obligations. In most cases, this occurs within a single financial reporting period. For payments received in advance of the satisfaction of performance obligations, revenue recognition is deferred until such time the performance obligations have been satisfied. In cases where we have not received payment despite satisfaction of our performance obligations, we accrue an estimate of the amount due in the period our performance obligations have been satisfied. For contracts with variable components, only amounts for which collection is probable are accrued. We generally act in a principal capacity, on our own behalf, in most of our contracts with customers. In such transactions, we recognize revenue and the related costs to provide our services on a gross basis in our financial statements. In some cases, we act in an agent capacity, deriving revenue through assisting other entities in transactions with our customers. In such transactions, we recognize revenue and the related costs to provide our services on a net basis in our financial statements. These transactions primarily relate to insurance and brokerage commissions and fees derived from our customers' use of various interchange and ATM/debit card/credit card networks. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments ASC 820 defines fair value, establishes a framework for measuring fair value, and expands disclosures about fair value measurements. ASC 820 does not require any new fair value measurements, but clarifies and standardizes some divergent practices that have emerged since prior guidance was issued. ASC 820 creates a three-level hierarchy under which individual fair value estimates are to be ranked based on the relative reliability of the inputs used in the valuation. ASC 820 defines fair value as the price that would be received to sell an asset or transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities, the Company considers the principal or most advantageous market in which those assets or liabilities are sold and considers assumptions that market participants would use when pricing those assets or liabilities. Fair values determined using Level 1 inputs rely on active and observable markets to price identical assets or liabilities. In situations where identical assets and liabilities are not traded in active markets, fair values may be determined based on Level 2 inputs, which exist when observable data exists for similar assets and liabilities. Fair values for assets and liabilities for which identical or similar assets and liabilities are not actively traded in observable markets are based on Level 3 inputs, which are considered to be unobservable. Among the Company’s assets and liabilities, investment securities available for sale are reported at their fair values on a recurring basis. Certain other assets are adjusted to their fair value on a nonrecurring basis, including other real estate owned, impaired loans, loans held for sale, which are carried at the lower of cost or market; and loan servicing rights, where fair value is determined using similar assets with similar characteristics, when available, or based upon discounted cash flows using market-based assumptions. Deposits, short-term borrowings and long-term obligations are not reported at fair value. Prices for US Treasury securities are readily available in the active markets in which those securities are traded, and the resulting fair values are shown in the “Level 1 input” column. Prices for government agency securities, mortgage-backed securities and for state, county and municipal securities are obtained for similar securities, and the resulting fair values are shown in the “Level 2 input” column. Prices for all other non-marketable investments are determined based on various assumptions that are not observable. The fair values for these investment securities are shown in the “Level 3 input” column. Non-marketable investment securities, which are carried at their purchase price, include those that may only be redeemed by the issuer. The Company does not record loans at fair value on a recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment by using one of several methods including collateral value, fair value of similar debt or discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the present value of the expected repayments or fair value of collateral exceed the recorded investments in such loans. The Company typically bases the fair value of the collateral on appraised values which the Company considers Level 3 valuations. Foreclosed assets are adjusted to fair value upon transfer of the loans to other real estate owned. Real estate acquired in settlement of loans is recorded initially at the estimated fair value of the property less estimated selling costs at the date of foreclosure. The initial recorded value may be subsequently reduced by additional allowances, which are charged to earnings if the estimated fair value of the property less estimated selling costs declines below the initial recorded value. Fair value is based upon independent market prices, appraised values of the collateral or management’s estimation of the value of the collateral. The Company typically bases the fair value of the collateral on appraised values which the Company considers Level 3 valuations. Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate, based on secondary market prices. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. These loans are recorded in Level 2. |
Comprehensive Income | Comprehensive Income The Company reports as comprehensive income all changes in shareholders’ equity during the year from sources other than shareholders. Other comprehensive income refers to all components (revenues, expenses, gains, and losses) of comprehensive income that are excluded from net income. The Company’s only component of other comprehensive income is unrealized gains and losses, net of income tax, on investment securities available for sale. The following table presents the changes in accumulated other comprehensive income for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (dollars in thousands) Beginning Balance $ (1,694 ) $ (1,107 ) $ (1,318 ) Accumulated Other comprehensive income (loss) before reclassifications, net of ($595), $171 and ($185) tax effect, respectively 1,989 (587 ) 356 Amounts reclassified from accumulated other comprehensive income, net of ($7), $0, and ($4) tax effect, respectively 28 — 10 Net current-period other comprehensive loss 2,017 (587 ) 366 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect — — (155 ) Ending Balance $ 323 $ (1,694 ) $ (1,107 ) |
Earnings per Common Share | Earnings per Common Share The Company had no stock options outstanding at December 31, 2019 or December 31, 2018. Basic earnings per share (“EPS”) excludes dilution and is computed by dividing income available to common shareholders by the weighted-average number of common shares outstanding for the period. Diluted EPS reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised or converted into common stock or resulted in the issuance of common stock that then shared in the earnings of the entity. On November 12, 2019, the Company’s Board of Directors declared a 2% stock dividend payable on December 9, 2019 to shareholders of record on November 25, 2019. All information presented in the accompanying consolidated financial statements regarding earnings per share and weighted average number of shares outstanding has been computed giving effect to this stock dividend. The computation of weighted average shares used in the calculation of basic and dilutive earnings per share is summarized below: 2019 2018 2017 Weighted average number of common shares used in computing basic net income per common share 7,199,262 7,229,333 7,427,036 Effect of dilutive stock options — — 768 Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share 7,199,262 7,229,333 7,427,804 Note 1 - Significant Accounting Policies (Continued) |
Noncontrolling Interest | Noncontrolling Interest In January 2013 the Company’s subsidiary banks issued a total of $7.9 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series B. The preferred stock qualified as Tier 1 capital at each bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. This capital is presented as noncontrolling interest in the consolidated balance sheets. Dividends declared on this preferred stock are presented as earnings allocated to the noncontrolling interest in the consolidated statements of income. Effective September 1, 2013, the Fixed Rate Noncumulative Perpetual Preferred Stock, Series B was rolled into one issue under Uwharrie Bank in connection with the consolidation and name change. During 2013, the Company’s subsidiary bank, Uwharrie Bank, raised $2.8 million of Fixed Rate Noncumulative Perpetual Preferred Stock, Series C. The preferred stock qualifies as Tier 1 capital at the bank and pays dividends at an annual rate of 5.30%. The preferred stock has no voting rights. |
Recent Accounting Pronouncements | Recent Accounting Pronouncements ASU 2016-02, “Leases, Topic 842” was adopted January 1, 2019. This ASU increases the transparency and comparability among organizations by recognizing lease assets and lease liabilities on the balance sheet and disclosing key information about leasing arrangements. The key difference between previous standards and this ASU is the requirement for lessees to recognize on their balance sheet all lease contracts with lease terms greater than 12 months, including operating leases. Both a ROU asset, representing the right to use the leased asset, and a lease liability, representing the contractual obligation, are required to be recognized on the balance sheet of the lessee at lease commencement. Further, this ASU requires lessees to classify leases as either operating or finance leases, which are substantially similar to the current operating and capital leases classifications. The distinction between these two classifications under the new standard does not relate to balance sheet treatment, but relates to treatment in the statements of income and cash flows. Lessor guidance remains largely unchanged with the exception of how a lessor determines the appropriate lease classification for each lease to better align the lessor guidance with revised lessee classification guidance. The impact of the new standard increased assets by $1.9 million and liabilities by $2.0 million, from the year ended December 31, 2018 to the year ended December 31, 2019. We currently have three properties that we operate with a lease term greater than one year. ASU 2014-09. “Revenue from Contracts with Customers (Topic 606)” was adopted as of January 1, 2018. ASU 2014-09 requires us to report network costs associated with debit card and credit card transactions netted against the related fees from such transactions. Previously, such network costs were reported as a component of other non-interest expense. For the twelve months ended December 31, 2019, gross interchange and card transaction fees totaled $2.0 million while related network costs totaled $1.2 million. On a net basis, we reported $826,000 as interchange and card transaction fees in the accompanying Consolidated Statement of Income for the twelve months ended December 31, 2019. For the twelve months ended December 31, 2018 and December 31, 2017, interchange and card transaction fees were $1.7 million and $1.6 million, respectively, on a gross basis while related network costs were $1.1 million and $913,000, respectively. As a result of the adoption of this standard, balances in prior years were re-classified to reflect the net presentation. In 2018 and 2017, interchange and card transaction fees, net were $648,000 and $656,000, respectively. In June 2016, the FASB issued ASU 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments”. ASU 2016-13 requires an entity to utilize a new impairment model known as the current expected credit loss (“CECL”) model to estimate its lifetime “expected credit loss” and record an allowance that, when deducted from the amortized cost basis of the financial asset, presents the net amount expected to be collected on the financial asset. The CECL model is expected to result in earlier recognition of credit losses. ASU 2016-13 also requires new disclosures for financial assets measured at amortized cost, loans and available-for-sale debt securities. The updated guidance is effective for interim and annual reporting periods beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption is permitted. During 2019, the effective date was extended to fiscal years ended on or after December 15, 2022 for public entities that qualify as smaller reporting companies, per the Securities Exchange Commission definition, which currently includes the Company. Entities will apply the standard’s provisions as a cumulative effect adjustment to retained earnings as of the beginning of the first reporting period in which the guidance is adopted. We have entered into a contract to outsource our current model with a CECL-ready vendor. We are currently evaluating the various methods of determining credit losses within the software. The impact of the adoption is dependent on loan portfolio composition and credit quality at adoption date, as well as economic conditions and forecasts at that time. From time to time the FASB issues exposure drafts of proposed statements of financial accounting standards. Such exposure drafts are subject to comment from the public, to revisions by the FASB and to final issuance by the FASB as statements of financial accounting standards. Management considers the effect of the proposed statements on the consolidated financial statements of the Company and monitors the status of changes to and proposed effective dates of exposure drafts. |
Reclassification | Reclassification Certain amounts in the 2018 and 2017 financial statements have been reclassified to conform to the 2019 presentation. These reclassifications do not have a material impact on net income or shareholders’ equity. |
Available for Sale [Member] | |
Significant Accounting Policies [Line Items] | |
Investment Securities | Investment Securities Available for Sale Investment securities available for sale consist of United States Treasuries, United States Government agencies, Government Sponsored Enterprise (GSE) mortgage backed securities and collateralized mortgage obligations (CMOs), corporate bonds and state and political subdivision bonds. Unrealized holding gains and losses on available for sale securities are reported as a net amount in other comprehensive income, net of income taxes. Gains and losses on the sale of available for sale securities are determined using the specific identification method and recorded on a trade basis. Declines in the fair value of individual available for sale securities below their cost that are other than temporary would result in write-downs of the individual securities, to their fair value. Such write-downs would be included in earnings as realized losses to the extent the losses are associated with the credit quality of the issuer. Amortization of premiums and accretion of discounts are recognized in interest income using the interest method over the period to maturity. |
Held to Maturity [Member] | |
Significant Accounting Policies [Line Items] | |
Investment Securities | Investment Securities Held to Maturity Investment securities held to maturity consist of United States Government agencies, corporate bonds and state and political subdivision bonds. The Company has both the intent and ability to hold the securities to maturity. These securities are reported at amortized cost. |
Significant Accounting Polici_3
Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Accumulated Other Comprehensive Income | The following table presents the changes in accumulated other comprehensive income for the years ended December 31, 2019, 2018 and 2017: Year ended December 31, 2019 2018 2017 (dollars in thousands) Beginning Balance $ (1,694 ) $ (1,107 ) $ (1,318 ) Accumulated Other comprehensive income (loss) before reclassifications, net of ($595), $171 and ($185) tax effect, respectively 1,989 (587 ) 356 Amounts reclassified from accumulated other comprehensive income, net of ($7), $0, and ($4) tax effect, respectively 28 — 10 Net current-period other comprehensive loss 2,017 (587 ) 366 Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect — — (155 ) Ending Balance $ 323 $ (1,694 ) $ (1,107 ) |
Computation of Weighted Average Shares Used in the Calculation of Basic and Dilutive Earnings Per Share | The computation of weighted average shares used in the calculation of basic and dilutive earnings per share is summarized below: 2019 2018 2017 Weighted average number of common shares used in computing basic net income per common share 7,199,262 7,229,333 7,427,036 Effect of dilutive stock options — — 768 Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share 7,199,262 7,229,333 7,427,804 |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments Debt And Equity Securities [Abstract] | |
Carrying Amounts and Fair Values of Securities Available for Sale and Held to Maturity | Carrying amounts and fair values of securities available for sale and held to maturity are summarized below: December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities available for sale U.S. Treasury $ 4,976 $ 36 $ — $ 5,012 U.S. Government agencies 25,869 18 201 25,686 GSE - Mortgage-backed securities and CMO’s 38,305 413 142 38,576 State and political subdivisions 13,937 329 45 14,221 Corporate bonds 5,018 11 — 5,029 Total securities available for sale $ 88,105 $ 807 $ 388 $ 88,524 December 31, 2019 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities held to maturity U.S. Government agencies $ 578 $ 5 $ — $ 583 State and political subdivisions 6,826 62 — 6,888 Corporate bonds 6,024 5 1 6,028 Total securities held to maturity $ 13,428 $ 72 $ 1 $ 13,499 Note 2 - Investment Securities (Continued) December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities available for sale U.S. Treasury $ 4,944 $ 11 $ — $ 4,955 U.S. Government agencies 52,935 47 1,066 51,916 GSE - Mortgage-backed securities and CMO’s 17,217 — 515 16,702 State and political subdivisions 13,373 5 423 12,955 Corporate bonds 5,030 6 265 4,771 Total securities available for sale $ 93,499 $ 69 $ 2,269 $ 91,299 December 31, 2018 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (dollars in thousands) Securities held to maturity U.S. Government agencies $ 855 $ — $ 12 $ 843 State and political subdivisions 6,877 6 61 6,822 Corporate bonds 3,105 — 20 3,085 Total securities held to maturity $ 10,837 $ 6 $ 93 $ 10,750 |
Sales of Securities Available for Sale | Results from sales of securities available for sale for the years ended December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (dollars in thousands) Gross proceeds from sales $ 3,351 $ — $ 8,918 Realized gains from sales $ — $ — $ — Realized losses from sales (35 ) — (14 ) Net realized gains (losses) $ (35 ) $ — $ (14 ) |
Gross Unrealized Losses and Fair Value of Investments | The unrealized losses on held to maturity securities related to two corporate bonds and two state and political subdivision bonds. December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Securities available for sale temporary impairment U.S. Gov’t agencies 11,956 55 9,704 146 21,660 201 GSE-Mortgage-backed securities and CMO’s 17,613 61 7,431 81 25,044 142 State and political 1,694 45 — — 1,694 45 Total securities available for sale $ 31,263 $ 161 $ 17,135 $ 227 $ 48,398 $ 388 December 31, 2019 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Held to maturity temporary impairment Corporate bonds 1,502 1 — — 1,502 1 Total securities held to maturity $ 1,502 $ 1 $ — $ — $ 1,502 $ 1 December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Securities available for sale temporary impairment U.S. Gov’t agencies 1,924 29 47,814 1,037 49,738 1,066 GSE-Mortgage-backed securities and CMO’s 526 6 15,602 509 16,128 515 State and political — — 11,109 423 11,109 423 Corporate bonds 1,989 224 1,971 41 3,960 265 Total securities available for sale $ 4,439 $ 259 $ 76,496 $ 2,010 $ 80,935 $ 2,269 Note 2 - Investment Securities (Continued) December 31, 2018 Less than 12 Months 12 Months or More Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (dollars in thousands) Held to maturity temporary impairment U.S. Gov’t agencies $ — $ — $ 843 $ 12 $ 843 $ 12 State and political 755 6 5,157 55 5,912 61 Corporate bonds 3,085 20 — — 3,085 20 Total securities held to maturity $ 3,840 $ 26 $ 6,000 $ 67 $ 9,840 $ 93 |
Amortized Cost and Fair Value of Available for Sale Securities Portfolio | The following tables show contractual maturities of the investment portfolio as of December 31, 2019: Amortized Cost Estimated Fair Value (dollars in thousands) Securities available for sale Due within one year $ 7,784 $ 7,827 Due after one but within five years 22,502 22,496 Due after five but within ten years 8,310 8,163 Due after ten years 11,204 11,462 Mortgage backed securities 38,305 38,576 $ 88,105 $ 88,524 |
Amortized Cost and Fair Value of Held to Maturity Securities Portfolio | Amortized Cost Estimated Fair Value (dollars in thousands) Securities held to maturity Due within one year $ 4,525 $ 4,530 Due after one but within five years 4,975 5,040 Due after five but within ten years 3,928 3,929 $ 13,428 $ 13,499 |
Loans Held for Investment (Tabl
Loans Held for Investment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Composition of Net Loans Held for Investment by Class | The composition of net loans held for investment by class as of December 31, 2019 and 2018 is as follows: 2019 2018 (dollars in thousands) Commercial Commercial $ 59,075 $ 57,176 Real estate - commercial 130,998 130,634 Other real estate construction loans 23,043 31,141 Noncommercial Real estate 1-4 family construction 7,600 7,805 Real estate - residential 71,370 76,564 Home equity 51,216 52,541 Consumer loans 12,957 12,159 Other loans 1,939 2,110 358,198 370,130 Less: Allowance for loan losses (1,981 ) (2,374 ) Deferred loan fees, net (248 ) (160 ) Loans held for investment, net $ 355,969 $ 367,596 |
Allowance for Loan Losses (Tabl
Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Changes in Allowance for Loan Losses | Changes in the allowance for loan losses for the years ended December 31, 2019, 2018 and 2017 are presented below (the “other” category represents a one-time impact of re-classification for unfunded commitments’ allowance from the allowance for loan losses to an unfunded commitment liability): Commercial 2019 2018 2017 (dollars in thousands) Balance, beginning of year $ 1,334 $ 1,401 $ 1,404 Provision (recovery) charged to operations (571 ) 132 (72 ) Charge-offs (11 ) (245 ) (31 ) Recoveries 367 46 100 Net (charge-offs) recoveries 356 (199 ) 69 Other (32 ) — — Balance, end of year $ 1,087 $ 1,334 $ 1,401 Non-Commercial 2019 2018 2017 (dollars in thousands) Balance, beginning of year $ 1,040 $ 1,057 $ 1,303 Provision (recovery) charged to operations (17 ) (42 ) (164 ) Charge-offs (149 ) (81 ) (177 ) Recoveries 74 106 95 Net (charge-offs) recoveries (75 ) 25 (82 ) Other (54 ) — — Balance, end of year $ 894 $ 1,040 $ 1,057 Total 2019 2018 2017 (dollars in thousands) Balance, beginning of year $ 2,374 $ 2,458 $ 2,707 Provision (recovery) charged to operations (588 ) 90 (236 ) Charge-offs (160 ) (326 ) (208 ) Recoveries 441 152 195 Net (charge-offs) recoveries 281 (174 ) (13 ) Other (86 ) — — Balance, end of year $ 1,981 $ 2,374 $ 2,458 |
Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment | The following table shows period-end loans and reserve balances by loan segment both individually and collectively evaluated for impairment at December 31, 2019 and 2018: December 31, 2019 Individually Evaluated Collectively Evaluated Total Reserve Loans Reserve Loans Reserve Loans (dollars in thousands) Commercial $ 32 $ 3,660 $ 1,055 $ 209,456 $ 1,087 $ 213,116 Non-Commercial 109 3,175 785 141,659 894 144,834 Total $ 141 $ 6,835 $ 1,840 $ 351,115 $ 1,981 $ 357,950 December 31, 2018 Individually Evaluated Collectively Evaluated Total Reserve Loans Reserve Loans Reserve Loans (dollars in thousands) Commercial $ 42 $ 1,359 $ 1,292 $ 217,592 $ 1,334 $ 218,951 Non-Commercial 112 3,119 928 147,900 1,040 151,019 Total $ 154 $ 4,478 $ 2,220 $ 365,492 $ 2,374 $ 369,970 |
Past Due Information of Loan Portfolio by Class | Past due loan information is used by management when assessing the adequacy of the allowance for loan losses. The following tables summarize the past due information of the loan portfolio by class: December 31, 2019 Loans 30-89 Days Past Due Loans 90 Days or More Past due and Non - Accrual Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due (dollars in thousands) Commercial $ 190 $ — $ 190 $ 58,885 $ 59,075 $ — Real estate - commercial — 2,088 2,088 128,910 130,998 — Other real estate construction 14 0 14 23,029 23,043 — Real estate construction — — — 7,600 7,600 — Real estate - residential 326 752 1,078 70,044 71,122 — Home equity 57 82 139 51,077 51,216 — Consumer loan 27 — 27 12,930 12,957 — Other loans — — — 1,939 1,939 — Total $ 614 $ 2,922 $ 3,536 $ 354,414 $ 357,950 $ — December 31, 2018 Loans 30-89 Days Past Due Loans 90 Days or More Past due and Non - Accrual Total Past Due Loans Current Loans Total Loans Accruing Loans 90 or More Days Past Due (dollars in thousands) Commercial $ 54 $ — $ 54 $ 57,122 $ 57,176 $ — Real estate - commercial — 273 273 130,361 130,634 — Other real estate construction — 47 47 31,094 31,141 — Real estate construction — — — 7,805 7,805 — Real estate - residential 890 606 1,496 74,908 76,404 — Home equity 100 118 218 52,323 52,541 — Consumer loan 86 — 86 12,073 12,159 — Other loans — — — 2,110 2,110 — Total $ 1,130 $ 1,044 $ 2,174 $ 367,796 $ 369,970 $ — |
Composition of Nonaccrual Loans by Class | The composition of nonaccrual loans by class as of December 31, 2019 and 2018 is as follows: 2019 2018 (dollars in thousands) Commercial $ — $ — Real estate - commercial 2,088 273 Other real estate construction — 47 Real estate 1 – 4 family construction — — Real estate – residential 752 606 Home equity 82 118 Consumer loans — — Other loans — — $ 2,922 $ 1,044 |
Summary of Risk Grades of Portfolio by Class | The tables below summarize risk grades of the loan portfolio by class as of December 31, 2019 and 2018: December 31, 2019 Pass Watch Sub- standard Doubtful Total (dollars in thousands) Commercial $ 56,151 $ 2,921 $ 3 $ — $ 59,075 Real estate - commercial 126,498 1,194 3,306 — 130,998 Other real estate construction 21,253 1,477 313 — 23,043 Real estate 1 - 4 family construction 7,600 — — — 7,600 Real estate - residential 67,647 2,464 1,011 — 71,122 Home equity 50,255 879 82 — 51,216 Consumer loans 12,877 79 1 — 12,957 Other loans 1,939 — — — 1,939 Total $ 344,220 $ 9,014 $ 4,716 $ — $ 357,950 December 31, 2018 Pass Watch Sub- standard Doubtful Total (dollars in thousands) Commercial $ 55,883 $ 1,284 $ 9 $ — $ 57,176 Real estate - commercial 127,592 1,518 1,524 — 130,634 Other real estate construction 28,711 2,070 360 — 31,141 Real estate 1 - 4 family construction 7,805 — — — 7,805 Real estate - residential 69,900 5,470 1,034 — 76,404 Home equity 52,028 395 118 — 52,541 Consumer loans 12,085 73 1 — 12,159 Other loans 2,110 — — — 2,110 Total $ 356,114 $ 10,810 $ 3,046 $ — $ 369,970 |
Summary of Performing and Nonperforming Loans by Class | The following tables show the breakdown between performing and nonperforming loans by class as of December 31, 2019 and 2018: December 31, 2019 Performing Non- Performing Total (dollars in thousands) Commercial $ 59,075 $ — $ 59,075 Real estate - commercial 128,910 2,088 130,998 Other real estate construction 23,043 — 23,043 Real estate 1 – 4 family construction 7,600 — 7,600 Real estate – residential 70,370 752 71,122 Home equity 51,134 82 51,216 Consumer loans 12,957 — 12,957 Other loans 1,939 — 1,939 Total $ 355,028 $ 2,922 $ 357,950 December 31, 2018 Performing Non- Performing Total (dollars in thousands) Commercial $ 57,176 $ — $ 57,176 Real estate - commercial 130,361 273 130,634 Other real estate construction 31,094 47 31,141 Real estate 1 – 4 family construction 7,805 — 7,805 Real estate – residential 75,798 606 76,404 Home equity 52,423 118 52,541 Consumer loans 12,159 — 12,159 Other loans 2,110 — 2,110 Total $ 368,926 $ 1,044 $ 369,970 |
Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class | The tables below summarize the loans deemed impaired and the amount of specific reserves allocated by class as of December 31, 2019, 2018, and 2017: As of December 31, 2019 Year Ended December 31, 2019 Recorded Recorded Unpaid Investment Investment Average Principal With No With Related Recorded Interest Balance Allowance Allowance Allowance Investment Income (dollars in thousands) Commercial $ 4 $ — $ 4 $ — $ 6 $ — Real estate - commercial 3,612 1,923 1,689 29 2,273 145 Other real estate construction 44 — 44 3 64 3 Real estate 1 -4 family construction — — — — — — Real estate - residential 3,070 987 2,083 99 3,010 159 Home equity 82 13 69 10 116 5 Consumer loans 23 — 23 — 27 2 Total $ 6,835 $ 2,923 $ 3,912 $ 141 $ 5,496 $ 314 Year Ended As of December 31, 2018 December 31, 2018 Recorded Recorded Unpaid Investment Investment Average Principal With No With Related Recorded Interest Balance Allowance Allowance Allowance Investment Income (dollars in thousands) Commercial $ 7 $ — $ 7 $ — $ 32 $ — Real estate - commercial 1,258 93 1,165 38 1,503 51 Other real estate construction 632 47 47 4 132 3 Real estate 1 -4 family construction — — — — — — Real estate - residential 3,005 901 2,104 110 3,505 145 Home equity 83 51 32 1 54 3 Consumer loans 31 — 31 1 40 3 Total $ 5,016 $ 1,092 $ 3,386 $ 154 $ 5,266 $ 205 Year Ended As of December 31, 2017 December 31, 2017 Recorded Recorded Unpaid Investment Investment Average Principal With No With Related Recorded Interest Balance Allowance Allowance Allowance Investment Income (dollars in thousands) Commercial $ 44 $ 10 $ 34 $ 10 $ 25 $ 2 Real estate - commercial 1,593 1,305 288 9 1,650 72 Other real estate construction 689 101 50 3 208 5 Real estate 1 -4 family construction — — — — 3 — Real estate - residential 3,701 1,319 2,382 171 3,762 179 Home equity 35 22 13 1 66 1 Consumer loans 45 45 — — 53 4 Total $ 6,107 $ 2,802 $ 2,767 $ 194 $ 5,767 $ 263 |
Troubled Debt Restructures (Tab
Troubled Debt Restructures (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Breakdown of Types of Concessions Made by Loan Class | For the twelve months ended December 31, 2019, 2018 and 2017, the following table presents a breakdown of the types of concessions made by loan class: Year Ended December 31, 2019 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded of Contracts Investment Investment (dollars in thousands) Extend payment terms: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential — — — Home equity — — — Consumer loans — — — Other loans — — — — $ — $ — Other: Commercial 1 $ 50 $ 4 Real estate - commercial 1 1,629 838 Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential 3 261 219 Home equity — — — Consumer loans — — — Other loans — — — 5 $ 1,940 $ 1,061 Total 5 $ 1,940 $ 1,061 Year Ended December 31, 2018 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded of Contracts Investment Investment (dollars in thousands) Extend payment terms: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential — — — Home equity — — — Consumer loans — — — Other loans — — — — $ — $ — Other: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential 6 434 387 Home equity — — — Consumer loans — — — Other loans — — — 6 $ 434 $ 387 Total 6 $ 434 $ 387 Year Ended December 31, 2017 Pre-Modification Post-Modification Number Outstanding Recorded Outstanding Recorded of Contracts Investment Investment (dollars in thousands) Extend payment terms: Commercial — $ — $ — Real estate - commercial — — — Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential — — — Home equity — — — Consumer loans — — — Other loans — — — — $ — $ — Other: Commercial 1 $ 12 $ 10 Real estate - commercial 2 178 173 Other real estate construction — — — Real estate 1 – 4 family construction — — — Real estate – residential 6 708 675 Home equity — — — Consumer loans 1 9 5 Other loans — — — 10 $ 907 $ 863 Total 10 $ 907 $ 863 |
Schedule of Status of Types of Debt Restructuring | The following table presents the successes and failures of the types of modifications within the previous twelve months as of December 31, 2019, 2018 and 2017: Paid In Full Paying as restructured Converted to nonaccrual Foreclosure/ Default Number of Recorded Number of Recorded Number of Recorded Number of Recorded Loans Investments Loans Investments Loans Investments Loans Investments (dollars in thousands) December 31, 2019 Extended payment terms — $ — — $ — — $ — — $ — Other 1 37 5 1,940 — — — — Total 1 $ 37 5 $ 1,940 — $ — — $ — Paid In Full Paying as restructured Converted to nonaccrual Foreclosure/ Default Number of Recorded Number of Recorded Number of Recorded Number of Recorded Loans Investments Loans Investments Loans Investments Loans Investments (dollars in thousands) December 31, 2018 Extended payment terms — $ — — $ — — $ — — $ — Other 8 1,056 6 434 — — 1 242 Total 8 $ 1,056 6 $ 434 — $ — 1 $ 242 Paid In Full Paying as restructured Converted to nonaccrual Foreclosure/ Default Number of Recorded Number of Recorded Number of Recorded Number of Recorded Loans Investments Loans Investments Loans Investments Loans Investments (dollars in thousands) December 31, 2017 Extended payment terms — $ — — $ — — $ — — $ — Other 6 217 10 863 — — 1 15 Total 6 $ 217 10 $ 863 — $ — 1 $ 15 |
Loan Servicing Assets (Tables)
Loan Servicing Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Mortgage Banking [Abstract] | |
Summary of Mortgage Servicing Rights | A summary of loan servicing rights follows: 2019 2018 2017 (dollars in thousands) Beginning of year servicing rights: $ 1,850 $ 2,125 $ 2,271 Amounts capitalized 694 388 587 Amortization (821 ) (663 ) (733 ) Impairment — — — End of year $ 1,723 $ 1,850 $ 2,125 |
Estimated Amortization Expense | Amortization expense is estimated as follows: Year ending December 31, (dollars in thousands) 2020 $ 406 2021 352 2022 298 2023 243 2024 188 Thereafter 236 Total $ 1,723 |
Key Assumptions Used to Value Mortgage Servicing Rights | The key assumptions used to value mortgage servicing rights were as follows: 2019 2018 Weighted average remaining life 261 months 259 months Weighted average discount rate 12 % 12 % Weighted average coupon 4.04 % 4.02 % Weighted average prepayment speed 182 % 132 % |
Premises and Equipment (Tables)
Premises and Equipment (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property Plant And Equipment [Abstract] | |
Major Classes of Premises and Equipment and the Total Accumulated Depreciation | The major classes of premises and equipment and the total accumulated depreciation at December 31, 2019 and 2018 are listed below: 2019 2018 (dollars in thousands) Land $ 3,192 $ 3,215 Building and improvements 15,783 15,150 ROU assets 1,945 — Furniture and equipment 8,518 8,808 Total fixed assets 29,438 27,173 Less accumulated depreciation 12,376 12,373 Net fixed assets $ 17,062 $ 14,800 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Lessee Disclosure [Abstract] | |
Summary of Other Information Related to Operating Leases | The table below depicts information related to the Company’s leases: Twelve Months Ended December 31, 2019 (in thousands except percent and period data) Cash paid for amounts included in the measurement of lease liabilities Operating cash flows from operating leases $ 357 ROU assets obtained in exchange for new operating lease liabilities 1,945 Weighted-average remaining lease term - operating leases, in years 7.6 Weighted-average discount rate - operating leases 2.9% |
Schedule of Maturities of Lease Expense | A table detailing the lease expense associated with the aforementioned properties is below. December 31, (dollars in thousands) 2020 $ 381 2021 347 2022 225 2023 229 2024 233 Thereafter 846 Total lease payments 2,261 Less: Interest (249 ) Present value of lease liabilities $ 2,012 |
Schedule of Operating Lease Expense | A table detailing the lease expense associated with the aforementioned properties is below. December 31, (dollars in thousands) 2019 $ 345 2020 345 2021 306 2022 189 2023 189 Thereafter 812 Total 2,186 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking And Thrift [Abstract] | |
Schedule of Composition of Time Deposits | The composition of deposits at December 31, 2019 and 2018 is as follows: 2019 2018 Amount Percentage of Total Amount Percentage of Total (dollars in thousands) Demand noninterest-bearing $ 150,283 26 % $ 129,714 23 % Interest checking and money market 263,136 45 % 324,391 57 % Savings 57,136 10 % 54,784 10 % Time deposits $250,000 and over 55,682 9 % 7,920 1 % Other time deposits 59,641 10 % 50,092 9 % Total $ 585,878 100 % $ 566,901 100 % |
Maturities of Fixed-Rate Time Deposits | The maturities of fixed-rate time deposits at December 31, 2019 are reflected in the table below: Time Deposits Other Year ending December 31, $250,000 and Over Time Deposits (dollars in thousands) 2020 53,866 39,650 2021 1,507 15,522 2022 309 2,977 2023 — 610 2024 — 882 Thereafter — — Total $ 55,682 $ 59,641 |
Short-Term Borrowed Funds (Tabl
Short-Term Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Summary of Short-Term Borrowed Funds | The following tables set forth certain information regarding the amounts, year-end weighted average rates, average balances, weighted average rate, and maximum month-end balances for short-term borrowed funds, at and during 2019 and 2018: 2019 2018 Amount Rate Amount Rate (dollars in thousands) At year-end Master notes and other short-term borrowing $ 626 0.89 % $ 1,190 1.49 % Notes payable — — — — Short-term line of credit — — — — $ 626 0.89 % $ 1,190 1.49 % 2019 2018 Amount Rate Amount Rate (dollars in thousands) Average for the year Federal funds purchased $ 2 3.04 % $ 2 2.92 % Master notes and other short-term borrowing 904 1.61 % 1,638 1.00 % Notes payable — — — — Short-term line of credit — — — — $ 906 1.62 % $ 1,640 1.00 % 2019 2018 (dollars in thousands) Maximum month-end balance Federal funds purchased — — Master notes and other short-term borrowing 1,486 2,006 |
Long-Term Debt (Tables)
Long-Term Debt (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Scheduled Maturities of Advances and Notes Payable | As of December 31, 2019, the scheduled maturities of these long-term borrowings are as follows: Year ending December 31, (dollars in thousands) 2020 $ — 2021 — 2022 — 2023 — 2024 — Thereafter 9,992 Total $ 9,992 |
Income Tax Matters (Tables)
Income Tax Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Significant Components of Income Tax Expense (Benefit) | The significant components of income tax expense for the years ended December 31, 2019, 2018 and 2017 are summarized as follows: 2019 2018 2017 (dollars in thousands) Current tax expense: Federal $ 662 $ 524 $ 1,022 State 94 94 96 Total 756 618 1,118 Deferred tax expense: Federal 26 (47 ) 680 State (11 ) 8 11 Total 15 (39 ) 691 Net provision for income taxes $ 771 $ 579 $ 1,809 |
Provision for Income Taxes and the Amounts Computed by Applying the Statutory Federal Income Tax Rate of 34% to Income Before Income Taxes | The difference between the provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 21% to income before income taxes is summarized below: 2019 2018 2017 (dollars in thousands) Tax computed at the statutory federal rate $ 810 $ 642 $ 1,163 Increases (decrease) resulting from: Tax exempt interest, net (133 ) (143 ) (238 ) State income taxes, net of federal benefit 65 80 71 Revalue of deferred tax assets — — 812 Other 29 — 1 Provision for income taxes $ 771 $ 579 $ 1,809 |
Significant Components of Deferred Taxes | Significant components of deferred taxes at December 31, 2019, 2018 and 2017 are as follows: 2019 2018 2017 (dollars in thousands) Deferred tax assets relating to: Allowance for loan losses $ 478 $ 545 $ 569 Deferred compensation 1,078 1,012 936 Other 89 104 173 Lease liability 462 — — Net unrealized loss on securities available for sale — 505 335 Total deferred tax assets 2,107 2,166 2,013 Deferred tax liabilities relating to: Net unrealized gain on securities available for sale (96 ) — — Premises and equipment (184 ) (159 ) (213 ) Deferred loans fees and costs (159 ) (163 ) (148 ) Loan servicing (92 ) (99 ) (116 ) ROU asset (447 ) — — Total deferred tax liabilities (978 ) (421 ) (477 ) Net recorded deferred tax asset $ 1,129 $ 1,745 $ 1,536 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments And Contingencies Disclosure [Abstract] | |
Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk | As of December 31, 2019 and 2018, outstanding financial instruments whose contract amounts represent credit risk were as follows: 2019 2018 (dollars in thousands) Commitments to extend credit $ 134,241 $ 110,329 Credit card commitments 11,650 10,611 Standby letters of credit 1,213 933 $ 147,104 $ 121,873 |
Related Party Transactions (Tab
Related Party Transactions (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Related Party Transactions [Abstract] | |
Summary of Loans to Directors, Executive Officers and Their Related Interests | A summary of loans to directors, executive officers and their related interests follows: 2019 2018 (dollars in thousands) Balance, at beginning of the year $ 9,284 $ 8,692 Disbursements during the year 4,833 1,902 Collections during the year (3,822 ) (1,310 ) Balance, at end of the year $ 10,295 $ 9,284 |
Shareholders' Equity and Regu_2
Shareholders' Equity and Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Company's Consolidated Capital Ratios | The Company expects to meet or exceed these minimums without altering current operations or strategy. Minimum to Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Requirement Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2019 Total Capital to Risk Weighted Assets: Consolidated $ 60,509 14.1 % $ 34,387 8.0 % $ 42,984 10.0 % Uwharrie Bank 58,082 13.6 % 34,098 8.0 % 42,622 10.0 % Tier 1 Capital to Risk Weighted Assets: Consolidated 48,536 11.3 % 25,790 6.0 % 34,387 8.0 % Uwharrie Bank 56,101 13.2 % 25,573 6.0 % 34,098 8.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: Consolidated 37,881 8.8 % 19,343 4.5 % 27,940 6.5 % Uwharrie Bank 45,446 10.7 % 19,180 4.5 % 27,704 6.5 % Tier 1 Capital to Average Assets: Consolidated 48,536 7.4 % 26,336 4.0 % 32,920 5.0 % Uwharrie Bank 56,101 8.5 % 26,249 4.0 % 32,812 5.0 % Minimum to Be Well Minimum Capitalized Under For Capital Prompt Corrective Actual Requirement Action Provisions Amount Ratio Amount Ratio Amount Ratio (Dollars in thousands) December 31, 2018 Total Capital to Risk Weighted Assets: Consolidated $ 58,777 14.0 % $ 33,660 8.0 % $ 42,076 10.0 % Uwharrie Bank 57,765 13.8 % 33,460 8.0 % 41,826 10.0 % Tier 1 Capital to Risk Weighted Assets: Consolidated 46,869 11.1 % 25,245 6.0 % 33,660 8.0 % Uwharrie Bank 55,391 13.2 % 25,095 6.0 % 33,460 8.0 % Common Equity Tier 1 Capital to Risk Weighted Assets: Consolidated 36,214 8.6 % 18,934 4.5 % 27,349 6.5 % Uwharrie Bank 44,736 10.7 % 18,821 4.5 % 27,187 6.5 % Tier 1 Capital to Average Assets: Consolidated 46,869 7.4 % 25,347 4.0 % 31,683 5.0 % Uwharrie Bank 55,391 8.8 % 25,254 4.0 % 31,567 5.0 % |
Fair Values of Financial Inst_2
Fair Values of Financial Instruments and Interest Rate Risk (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments | The following table reflects a comparison of carrying amounts and the estimated fair value of the financial instruments as of December 31, 2019 and December 31, 2018: Carrying Estimated December 31, 2019 Value Fair Value Level 1 Level 2 Level 3 (dollars in thousands) FINANCIAL ASSETS Cash and cash equivalents $ 155,198 $ 117,938 $ 115,693 $ 2,245 $ — Securities available for sale 88,524 88,524 5,012 83,512 — Securities held to maturity 13,428 13,499 — 10,499 3,000 Loans held for investment, net 355,969 354,269 — — 354,269 Loans held for sale 2,946 2,946 — 2,946 — Restricted stock 1,144 1,144 1,144 — — Loan servicing rights 1,723 3,228 — 3,228 — Accrued interest receivable 1,666 1,666 — — 1,666 FINANCIAL LIABILITIES Deposits $ 585,878 567,130 $ — $ 567,130 $ — Short-term borrowings 626 626 — 626 — Long-term debt 9,992 10,180 — — 10,180 Accrued interest payable 55 55 — — 55 Carrying Estimated December 31, 2018 Value Fair Value Level 1 Level 2 Level 3 (dollars in thousands) FINANCIAL ASSETS Cash and cash equivalents $ 117,934 $ 117,901 $ 115,693 $ 2,208 $ — Securities available for sale 91,299 91,299 4,955 86,344 — Securities held to maturity 10,837 10,750 — 10,750 — Loans held for investment, net 367,596 364,636 — — 364,636 Loans held for sale 4,800 4,800 — 4,800 — Restricted stock 1,094 1,094 1,094 — — Mortgage servicing rights 1,850 3,455 — 3,455 — Accrued interest receivable 1,763 1,763 — — 1,763 FINANCIAL LIABILITIES Deposits $ 566,901 $ 521,508 $ — $ 521,508 $ — Short-term borrowings 1,190 1,190 — 1,190 — Long-term debt 9,974 10,086 — — 10,086 Accrued interest payable 16 16 — — 16 |
Fair Value Information for Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following table provides fair value information for assets and liabilities measured at fair value on a recurring basis as of December 31, 2019 and 2018: December 31, 2019 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: US Treasury $ 5,012 $ 5,012 $ — $ — US Government 25,686 — 25,686 — Mortgage-backed securities and CMO’s 38,576 — 38,576 — State and political subdivisions 14,221 — 14,221 — Corporate bonds 5,029 — 5,029 — Total assets at fair value $ 88,524 $ 5,012 $ 83,512 $ — Total liabilities at fair value $ — $ — $ — $ — December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Securities available for sale: US Treasury $ 4,955 $ 4,955 $ — $ — US Government 51,916 — 51,916 — Mortgage-backed securities and CMO’s 16,702 — 16,702 — State and political subdivisions 12,955 — 12,955 — Corporate bonds 4,771 — 4,771 — Total assets at fair value $ 91,299 $ 4,955 $ 86,344 $ — Total liabilities at fair value $ — $ — $ — $ — |
Assets Re-Measured at Fair Value | Assets re-measured at fair value during the period are included in the table below as of December 31, 2019 and December 31, 2018: December 31, 2019 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans $ 3,771 $ — $ — $ 3,771 Other real estate owned 364 — — 364 Total assets at fair value $ 4,135 $ — $ — $ 4,135 Total liabilities at fair value $ — $ — $ — $ — December 31, 2018 (dollars in thousands) Total Level 1 Level 2 Level 3 Impaired loans $ 3,279 $ — $ — $ 3,279 Other real estate owned 951 — — 951 Total assets at fair value $ 4,230 $ — $ — $ 4,230 Total liabilities at fair value $ — $ — $ — $ — |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information about Level 3 Fair Value Measurements General December 31, 2019 Valuation Technique Unobservable Input Range Nonrecurring measurements: Impaired loans Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 25% Discounted cash flows Discount rates 4%-8.75% OREO Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 10% General December 31, 2018 Valuation Technique Unobservable Input Range Nonrecurring measurements: Impaired loans Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 25% Discounted cash flows Discount rates 4%-8.75% OREO Discounted appraisals Collateral discounts and Estimated costs to sell 0 – 10% |
Parent Company Financial Data (
Parent Company Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Of Parent Company Only Disclosure [Abstract] | |
Condensed Balance Sheets | Condensed Balance Sheets December 31, 2019 2018 (dollars in thousands) Assets Cash and demand deposits $ 526 $ 287 Interest-earning deposits 1,589 1,256 Investments in: Bank subsidiaries 45,770 43,042 Nonbank subsidiaries 381 450 Other assets 2,073 1,638 Total assets $ 50,339 $ 46,673 Liabilities and shareholders’ equity Master notes $ 626 $ 1,190 Short term debt — — Long term debt 9,992 9,974 Other liabilities 1,518 989 Total liabilities 12,136 12,153 Shareholders’ equity 38,203 34,520 Total liabilities and shareholders’ equity $ 50,339 $ 46,673 |
Condensed Statements of Income | Condensed Statements of Income 2019 2018 2017 (dollars in thousands) Equity in undistributed earnings (loss) of subsidiaries $ 1,206 $ 2,026 $ 745 Dividends received from subsidiaries 2,750 1,150 1,500 Interest income 15 17 6 Other income 41 80 93 Interest expense (577 ) (571 ) (564 ) Other operating expense (578 ) (410 ) (436 ) Income tax benefit 230 185 267 Net income $ 3,087 $ 2,477 $ 1,611 Consolidated net income $ 3,087 $ 2,477 $ 1,611 Less: Net income attributable to noncontrolling interest (564 ) (570 ) (592 ) Net income attributable to Uwharrie Capital Corp 2,523 1,907 1,019 Net income available to common shareholders $ 2,523 $ 1,907 $ 1,019 Net income per common share Basic $ 0.36 $ 0.26 $ 0.14 Diluted $ 0.36 $ 0.26 $ 0.14 Weighted average shares outstanding Basic 7,066,880 7,229,333 7,427,036 Diluted 7,066,880 7,229,333 7,427,804 |
Condensed Statements of Cash Flows | Condensed Statements of Cash Flows 2019 2018 2017 (dollars in thousands) Cash flows from operating activities Net income $ 3,087 $ 2,477 $ 1,611 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed (earnings) loss of subsidiaries (1,206 ) (2,026 ) (745 ) Increase in other assets (435 ) (198 ) (124 ) Increase in other liabilities 528 220 267 Net cash provided by operating activities 1,974 473 1,009 Cash flows from financing activities Decrease in master notes (564 ) (562 ) (410 ) Decrease in short-term debt — — (500 ) Increase (decrease) in long-term debt (440 ) 440 — Net increase in subordinated debentures 458 — — Net increase in investment in subsidiaries — (250 ) — Net proceeds from issuance of common stock - stock options — 65 — Repurchase of common stock, net (850 ) (747 ) (391 ) Cash paid for fractional shares (7 ) (7 ) (7 ) Other, net 1 — — Net cash used by financing activities (1,402 ) (1,061 ) (1,308 ) Net decrease in cash and cash equivalents 572 (588 ) (299 ) Cash and cash equivalents at beginning of year 1,543 2,131 2,430 Cash and cash equivalents at end of year $ 2,115 $ 1,543 $ 2,131 |
Selected Financial Data (Table)
Selected Financial Data (Table) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Information | 2019 2018 2017 2016 2015 Summary of Operations Interest income $ 23,767 $ 21,873 $ 19,340 $ 18,046 $ 17,847 Interest expense 3,565 1,882 1,277 1,310 1,733 Net interest income 20,202 19,991 18,063 16,736 16,114 Provision for (recovery of) loan losses (588 ) 90 (236 ) (88 ) (620 ) Noninterest income 9,005 8,279 8,425 9,357 7,712 Noninterest expense 25,937 25,124 23,304 23,075 21,633 Income taxes 771 579 1,809 895 806 Net income $ 3,087 $ 2,477 $ 1,611 $ 2,211 $ 2,007 Less: Net income attributable to noncontrolling interest (564 ) (570 ) (592 ) (593 ) (592 ) Less: Dividends on preferred stock $ — $ — $ — $ — $ — Net Income (loss) available to common shareholders $ 2,523 $ 1,907 $ 1,019 $ 1,618 $ 1,415 Per Common Share Net income – basic (1) $ 0.35 $ 0.26 $ 0.14 $ 0.21 $ 0.19 Net income (loss) – diluted (1) 0.35 0.26 0.14 0.21 0.19 Book value (1) 5.38 4.75 4.58 4.40 4.33 Weighted Average Shares Outstanding: Basic (1) 7,199,262 7,229,333 7,427,036 7,531,360 7,634,024 Diluted (1) 7,199,262 7,229,333 7,427,804 7,531,470 7,634,024 Ratios Return on average assets 0.48 % 0.40 % 0.28 % 0.41 % 0.38 % Return on average equity 6.43 % 5.57 % 3.62 % 4.99 % 4.65 % Average equity to average assets 7.43 % 7.26 % 7.78 % 8.29 % 8.27 % Selected Year-end Balances Assets $ 656,793 $ 632,304 $ 577,253 $ 548,230 $ 532,202 Loans held for investment 357,950 369,970 356,871 341,829 320,132 Securities 101,952 102,136 107,201 117,889 100,500 Deposits 585,878 566,901 512,628 485,719 467,733 Borrowed funds 10,618 11,164 11,286 12,208 15,305 Shareholders’ equity 48,858 45,175 44,540 43,525 43,314 Selected Average Balances Assets $ 645,681 $ 612,403 $ 572,630 $ 534,296 $ 521,699 Loans held for investment 369,540 369,419 348,980 334,317 316,485 Securities 100,775 103,223 113,025 107,396 112,348 Deposits 575,480 548,296 509,352 470,921 458,655 Borrowed funds 10,956 11,284 11,679 12,898 14,432 Shareholders’ equity 47,993 44,468 44,542 44,283 43,123 (1) Net income per share, book value per share, weighted average shares outstanding and shares outstanding at year-end for years 2018 through 2015 have been adjusted to reflect the 2% stock dividends in 2019, 2018, 2017 and 2016. |
Significant Accounting Polici_4
Significant Accounting Policies - Additional Information (Detail) | Nov. 12, 2018 | Jan. 31, 2013USD ($) | Dec. 31, 2019USD ($)BranchSegmentPropertyshares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($) | Dec. 31, 2013USD ($) |
Business Acquisition [Line Items] | ||||||
Common stock exchange | 1 | |||||
Number of branch locations | Branch | 10 | |||||
Number of branch offices | Branch | 2 | |||||
Number of segments | Segment | 2 | |||||
Mortgage and commercial loans period | 90 days | |||||
Credit card and personal loans period | 180 days | |||||
Credit card loan accrual period | 90 days | |||||
Minimum required sustained performance | 6 months | |||||
Outstanding awards | $ 0 | $ 0 | ||||
Interest or penalties accrued | $ 0 | $ 0 | $ 0 | |||
Stock options outstanding | shares | 0 | 0 | ||||
Stock dividend, percentage | 2.00% | 2.00% | 2.00% | 2.00% | ||
Dividends Payable, date declared | Nov. 12, 2019 | |||||
Dividends Payable, date to be paid | Dec. 9, 2019 | |||||
Dividends Payable, date of record | Nov. 25, 2019 | |||||
Number of property | Property | 3 | |||||
Lease term | greater than one year | |||||
Interchange and Card Transaction Fees [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Noninterest income fees | $ 826,000 | $ 648,000 | $ 656,000 | |||
ASU 2014-09 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Gross interchange and card transaction fees | 2,000,000 | 1,700,000 | 1,600,000 | |||
Interchange and card transaction related network costs | $ 1,200,000 | $ 1,100,000 | $ 913,000 | |||
Preferred Stock Series B [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Preferred stock issued | $ 7,900,000 | |||||
Dividends rate | 5.30% | |||||
Voting rights | The preferred stock has no voting rights | |||||
Preferred Stock Series C [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Preferred stock issued | $ 2,800,000 | |||||
Dividends rate | 5.30% | |||||
Voting rights | The preferred stock has no voting rights | |||||
Minimum [Member] | ASU 2016-02 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Expected increase in assets and liabilities due to adoption of new accounting standard | $ 1,900,000 | |||||
Maximum [Member] | ASU 2016-02 [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Expected increase in assets and liabilities due to adoption of new accounting standard | $ 2,000,000 | |||||
Furniture, Fixtures and Equipment [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 5 years | |||||
Furniture, Fixtures and Equipment [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 7 years | |||||
Equipment [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 5 years | |||||
Equipment [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 7 years | |||||
Building [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 10 years | |||||
Building [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 39 years | |||||
Leasehold Improvements [Member] | Minimum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 10 years | |||||
Leasehold Improvements [Member] | Maximum [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Useful lives | 39 years | |||||
Anson BanCorp Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition | Jan. 19, 2000 | |||||
Gateway Mortgage Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Acquisition | Aug. 4, 2000 | |||||
Cabarrus Bank and Trust Company [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of capitalization of new wholly-owned subsidiary | Apr. 10, 2003 | |||||
Uwharrie Mortgage Inc [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Date of subsidiary incorporation | Apr. 7, 2004 |
Significant Accounting Polici_5
Significant Accounting Policies - Accumulated Other Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | $ 45,175 | $ 44,540 | $ 43,525 |
Total other comprehensive income (loss) | 2,017 | (587) | 366 |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | 155 | ||
Ending balance | 48,858 | 45,175 | 44,540 |
Unrealized Holding Gains on Available-for-Sale Securities (Net) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Beginning balance | (1,694) | (1,107) | (1,318) |
Accumulated Other comprehensive income (loss) before reclassifications, net of ($595), $171 and ($185) tax effect, respectively | 1,989 | (587) | 356 |
Amounts reclassified from accumulated other comprehensive income, net of ($7), $0, and ($4) tax effect, respectively | 28 | 10 | |
Total other comprehensive income (loss) | 2,017 | (587) | 366 |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | (155) | ||
Ending balance | $ 323 | $ (1,694) | $ (1,107) |
Significant Accounting Polici_6
Significant Accounting Policies - Accumulated Other Comprehensive Income (Parenthetical) (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Tax effect on amount reclassified from accumulated other comprehensive income | $ 7 | $ 0 | $ 4 |
Unrealized Holding Gains on Available-for-Sale Securities (Net) [Member] | |||
Accumulated Other Comprehensive Income Loss [Line Items] | |||
Tax effect on Accumulated Other Comprehensive income (loss) before reclassifications | (595) | 171 | (185) |
Tax effect on amount reclassified from accumulated other comprehensive income | $ (7) | $ 0 | $ (4) |
Significant Accounting Polici_7
Significant Accounting Policies - Computation of Weighted Average Shares Used in the Calculation of Basic and Dilutive Earnings Per Share (Detail) - shares | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Earnings Per Share [Abstract] | |||||
Weighted average number of common shares used in computing basic net income per common share | 7,199,262 | 7,229,333 | 7,427,036 | ||
Effect of dilutive stock options | 768 | ||||
Weighted average number of common shares and dilutive potential common shares used in computing diluted net income per common share | 7,199,262 | 7,229,333 | 7,427,804 | 7,531,470 | 7,634,024 |
Investment Securities - Carryin
Investment Securities - Carrying Amounts and Fair Values of Securities Available for Sale and Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | $ 88,105 | $ 93,499 |
Available-for-sale Securities, Gross Unrealized Gains | 807 | 69 |
Available-for-sale Securities, Gross Unrealized Losses | 388 | 2,269 |
Available-for-sale Securities, Fair Value | 88,524 | 91,299 |
Held-to-maturity Securities, Amortized Cost | 13,428 | 10,837 |
Held-to-maturity Securities, Gross Unrealized Gains | 72 | 6 |
Held-to-maturity Securities, Gross Unrealized Losses | 1 | 93 |
Held-to-maturity Securities, Fair Value | 13,499 | 10,750 |
U.S. Treasury [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 4,976 | 4,944 |
Available-for-sale Securities, Gross Unrealized Gains | 36 | 11 |
Available-for-sale Securities, Fair Value | 5,012 | 4,955 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 25,869 | 52,935 |
Available-for-sale Securities, Gross Unrealized Gains | 18 | 47 |
Available-for-sale Securities, Gross Unrealized Losses | 201 | 1,066 |
Available-for-sale Securities, Fair Value | 25,686 | 51,916 |
Held-to-maturity Securities, Amortized Cost | 578 | 855 |
Held-to-maturity Securities, Gross Unrealized Gains | 5 | |
Held-to-maturity Securities, Gross Unrealized Losses | 12 | |
Held-to-maturity Securities, Fair Value | 583 | 843 |
GSE - Mortgage-backed Securities and CMO's [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 38,305 | 17,217 |
Available-for-sale Securities, Gross Unrealized Gains | 413 | |
Available-for-sale Securities, Gross Unrealized Losses | 142 | 515 |
Available-for-sale Securities, Fair Value | 38,576 | 16,702 |
State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 13,937 | 13,373 |
Available-for-sale Securities, Gross Unrealized Gains | 329 | 5 |
Available-for-sale Securities, Gross Unrealized Losses | 45 | 423 |
Available-for-sale Securities, Fair Value | 14,221 | 12,955 |
Held-to-maturity Securities, Amortized Cost | 6,826 | 6,877 |
Held-to-maturity Securities, Gross Unrealized Gains | 62 | 6 |
Held-to-maturity Securities, Gross Unrealized Losses | 61 | |
Held-to-maturity Securities, Fair Value | 6,888 | 6,822 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Amortized Cost | 5,018 | 5,030 |
Available-for-sale Securities, Gross Unrealized Gains | 11 | 6 |
Available-for-sale Securities, Gross Unrealized Losses | 265 | |
Available-for-sale Securities, Fair Value | 5,029 | 4,771 |
Held-to-maturity Securities, Amortized Cost | 6,024 | 3,105 |
Held-to-maturity Securities, Gross Unrealized Gains | 5 | |
Held-to-maturity Securities, Gross Unrealized Losses | 1 | 20 |
Held-to-maturity Securities, Fair Value | $ 6,028 | $ 3,085 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | Dec. 31, 2019USD ($)Security | Dec. 31, 2018USD ($)Security |
Schedule of Available-for-sale Securities [Line Items] | ||
Federal Reserve stock owned by Company | $ | $ 509,000 | $ 509,000 |
Federal Home Loan Bank stock (FHLB) | $ | 635,000 | 585,000 |
Securities available for sale pledged as collateral on public deposits | $ | $ 65,300,000 | $ 71,500,000 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities related to unrealized losses less than twelve months | 3 | 4 |
Number of available for sale securities related to unrealized losses more than twelve months | 4 | 16 |
Number of securities related to unrealized losses | 2 | |
GSE - Mortgage-backed Securities and CMO's [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities related to unrealized losses less than twelve months | 6 | 1 |
Number of available for sale securities related to unrealized losses more than twelve months | 9 | 16 |
U S States And Political | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities related to unrealized losses more than twelve months | 8 | |
Number of securities related to unrealized losses | 2 | |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Number of available for sale securities related to unrealized losses less than twelve months | 1 | 1 |
Number of available for sale securities related to unrealized losses more than twelve months | 1 | |
Number of securities related to unrealized losses | 1 |
Investment Securities - Sales o
Investment Securities - Sales of Securities Available for Sale (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2017 | |
Investments Debt And Equity Securities [Abstract] | ||
Gross proceeds from sales | $ 3,351 | $ 8,918 |
Realized losses from sales | (35) | (14) |
Net realized gains (losses) | $ (35) | $ (14) |
Investment Securities - Gross U
Investment Securities - Gross Unrealized Losses and Fair Value of Investments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | $ 31,263 | $ 4,439 |
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 161 | 259 |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 17,135 | 76,496 |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 227 | 2,010 |
Available-for-sale Securities, Gross unrealized losses, Fair Value | 48,398 | 80,935 |
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses | 388 | 2,269 |
Held-to-maturity Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 1,502 | 3,840 |
Held-to-maturity-Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 1 | 26 |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 0 | 6,000 |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 0 | 67 |
Held-to-maturity Securities, Gross unrealized losses, Fair Value | 1,502 | 9,840 |
Held-to-maturity Securities, Gross unrealized losses, Unrealized Losses | 1 | 93 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 1,989 | |
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 224 | |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 1,971 | |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 41 | |
Available-for-sale Securities, Gross unrealized losses, Fair Value | 3,960 | |
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses | 265 | |
Held-to-maturity Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 1,502 | 3,085 |
Held-to-maturity-Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 1 | 20 |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 0 | 0 |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 0 | 0 |
Held-to-maturity Securities, Gross unrealized losses, Fair Value | 1,502 | 3,085 |
Held-to-maturity Securities, Gross unrealized losses, Unrealized Losses | 1 | 20 |
U.S. Government Agencies [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 11,956 | 1,924 |
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 55 | 29 |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 9,704 | 47,814 |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 146 | 1,037 |
Available-for-sale Securities, Gross unrealized losses, Fair Value | 21,660 | 49,738 |
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses | 201 | 1,066 |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 843 | |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 12 | |
Held-to-maturity Securities, Gross unrealized losses, Fair Value | 843 | |
Held-to-maturity Securities, Gross unrealized losses, Unrealized Losses | 12 | |
GSE - Mortgage-backed Securities and CMO's [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 17,613 | 526 |
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 61 | 6 |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 7,431 | 15,602 |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 81 | 509 |
Available-for-sale Securities, Gross unrealized losses, Fair Value | 25,044 | 16,128 |
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses | 142 | 515 |
State and Political Subdivisions [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 1,694 | |
Available-for-sale Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 45 | |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 11,109 | |
Available-for-sale Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 423 | |
Available-for-sale Securities, Gross unrealized losses, Fair Value | 1,694 | 11,109 |
Available-for-sale Securities, Gross unrealized losses, Unrealized Losses | $ 45 | 423 |
Held-to-maturity Securities, Gross unrealized losses, Less than Twelve Months, Fair Value | 755 | |
Held-to-maturity-Securities, Gross unrealized losses, Less than Twelve Months, Unrealized Losses | 6 | |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Fair Value | 5,157 | |
Held-to-maturity Securities, Gross unrealized losses, Twelve Months or More, Unrealized Losses | 55 | |
Held-to-maturity Securities, Gross unrealized losses, Fair Value | 5,912 | |
Held-to-maturity Securities, Gross unrealized losses, Unrealized Losses | $ 61 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost and Fair Value of Available for Sale Securities Portfolio (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Investments Debt And Equity Securities [Abstract] | |
Due within one year, Amortized Cost | $ 7,784 |
Due after one but within five years, Amortized Cost | 22,502 |
Due after five but within ten years, Amortized Cost | 8,310 |
Due after ten years, Amortized Cost | 11,204 |
Mortgage backed securities, Amortized Cost | 38,305 |
Available-for-sale Securities, Amortized Cost | 88,105 |
Due within one year, Estimated Fair Value | 7,827 |
Due after one but within five years, Estimated Fair Value | 22,496 |
Due after five but within ten years, Estimated Fair Value | 8,163 |
Due after ten years, Estimated Fair Value | 11,462 |
Mortgage backed securities, Estimated Fair Value | 38,576 |
Fair Value | $ 88,524 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost and Fair Value of Held to Maturity Securities Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investments Debt And Equity Securities [Abstract] | ||
Due within one year, Amortized Cost | $ 4,525 | |
Due after one but within five years, Amortized Cost | 4,975 | |
Due after five but within ten years, Amortized Cost | 3,928 | |
Total Securities held for maturity, Amortized Cost | 13,428 | |
Due within one year, Estimated Fair Value | 4,530 | |
Due after one but within five years, Estimated Fair Value | 5,040 | |
Due after five but within ten years, Estimated Fair Value | 3,929 | |
Total Securities held for maturity, Estimated Fair Value | $ 13,499 | $ 10,750 |
Loans Held for Investment - Com
Loans Held for Investment - Composition of Net Loans Held for Investment by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | $ 358,198 | $ 370,130 | ||
Less: | ||||
Allowance for loan losses | (1,981) | (2,374) | $ (2,458) | $ (2,707) |
Deferred loan fees, net | (248) | (160) | ||
Net loans held for investment | 355,969 | 367,596 | ||
Commercial [Member] | ||||
Less: | ||||
Allowance for loan losses | (1,087) | (1,334) | (1,401) | (1,404) |
Commercial [Member] | Commercial Loan [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 59,075 | 57,176 | ||
Commercial [Member] | Real Estate - Commercial [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 130,998 | 130,634 | ||
Commercial [Member] | Other Real Estate Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 23,043 | 31,141 | ||
Non-Commercial [Member] | ||||
Less: | ||||
Allowance for loan losses | (894) | (1,040) | $ (1,057) | $ (1,303) |
Non-Commercial [Member] | Consumer Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 12,957 | 12,159 | ||
Non-Commercial [Member] | Real Estate 1 - 4 Family Construction [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 7,600 | 7,805 | ||
Non-Commercial [Member] | Real Estate - Residential [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 71,370 | 76,564 | ||
Non-Commercial [Member] | Home Equity [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | 51,216 | 52,541 | ||
Non-Commercial [Member] | Other Loans [Member] | ||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||
Loans, Total | $ 1,939 | $ 2,110 |
Loans Held for Investment - Add
Loans Held for Investment - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Noncommercial segment Loans | $ 6,800,000 | $ 4,500,000 |
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Restructured loans | 3,900,000 | 3,500,000 |
Restructured loans included in impaired loans | 3,900,000 | 3,500,000 |
Carrying value of foreclosed properties | 494,000 | 1,000,000 |
Amount pledged to borrowings at Federal Home Loan Bank | 166,900,000 | 187,600,000 |
Real Estate - Residential [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Accruing Loans 90 or More Days Past Due | 0 | 0 |
Foreclosed residential real estate, loan amount | 130,000 | |
Real estate in process of foreclosure, loan amount | $ 387,000 | |
Mortgages [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Concentrations of Loans as Percentage of Net Loans | 36.34% | |
Commercial Loan [Member] | ||
Schedule of Fair Value of Separate Accounts by Major Category of Investment [Line Items] | ||
Concentrations of Loans as Percentage of Net Loans | 59.50% | |
Accruing Loans 90 or More Days Past Due | $ 0 | $ 0 |
Allowance for Loan Losses - Cha
Allowance for Loan Losses - Changes in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Balance, beginning of year | $ 2,374 | $ 2,458 | $ 2,707 | ||
Provision (recovery) charged to operations | (588) | 90 | (236) | $ (88) | $ (620) |
Charge-offs | (160) | (326) | (208) | ||
Recoveries | 441 | 152 | 195 | ||
Net (charge-offs) recoveries | 281 | (174) | (13) | ||
Other | (86) | ||||
Balance, end of year | 1,981 | 2,374 | 2,458 | 2,707 | |
Commercial [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Balance, beginning of year | 1,334 | 1,401 | 1,404 | ||
Provision (recovery) charged to operations | (571) | 132 | (72) | ||
Charge-offs | (11) | (245) | (31) | ||
Recoveries | 367 | 46 | 100 | ||
Net (charge-offs) recoveries | 356 | (199) | 69 | ||
Other | (32) | ||||
Balance, end of year | 1,087 | 1,334 | 1,401 | 1,404 | |
Non-Commercial [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Balance, beginning of year | 1,040 | 1,057 | 1,303 | ||
Provision (recovery) charged to operations | (17) | (42) | (164) | ||
Charge-offs | (149) | (81) | (177) | ||
Recoveries | 74 | 106 | 95 | ||
Net (charge-offs) recoveries | (75) | 25 | (82) | ||
Other | (54) | ||||
Balance, end of year | $ 894 | $ 1,040 | $ 1,057 | $ 1,303 |
Allowance for Loan Losses - Sch
Allowance for Loan Losses - Schedule of Loans and Reserve Balances by Loan Segment Both Individually and Collectively Evaluated for Impairment (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Individually Evaluated, Reserve | $ 141 | $ 154 | |||
Individually Evaluated, Loans | 6,835 | 4,478 | |||
Collectively Evaluated, Reserve | 1,840 | 2,220 | |||
Collectively Evaluated, Loans | 351,115 | 365,492 | |||
Total Reserve | 1,981 | 2,374 | $ 2,458 | $ 2,707 | |
Total Loans | 357,950 | 369,970 | 356,871 | 341,829 | $ 320,132 |
Commercial [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Individually Evaluated, Reserve | 32 | 42 | |||
Individually Evaluated, Loans | 3,660 | 1,359 | |||
Collectively Evaluated, Reserve | 1,055 | 1,292 | |||
Collectively Evaluated, Loans | 209,456 | 217,592 | |||
Total Reserve | 1,087 | 1,334 | 1,401 | 1,404 | |
Total Loans | 213,116 | 218,951 | |||
Non-Commercial [Member] | |||||
Financing Receivable Allowance For Credit Losses [Line Items] | |||||
Individually Evaluated, Reserve | 109 | 112 | |||
Individually Evaluated, Loans | 3,175 | 3,119 | |||
Collectively Evaluated, Reserve | 785 | 928 | |||
Collectively Evaluated, Loans | 141,659 | 147,900 | |||
Total Reserve | 894 | 1,040 | $ 1,057 | $ 1,303 | |
Total Loans | $ 144,834 | $ 151,019 |
Allowance for Loan Losses - Pas
Allowance for Loan Losses - Past Due Information of Loan Portfolio by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | $ 3,536 | $ 2,174 | |||
Current Loans | 354,414 | 367,796 | |||
Total Loans | 357,950 | 369,970 | $ 356,871 | $ 341,829 | $ 320,132 |
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Loans 30-89 Days Past Due [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 614 | 1,130 | |||
Loans 90 Days or More Past Due and Non - Accrual [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 2,922 | 1,044 | |||
Real Estate - Commercial [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 2,088 | 273 | |||
Current Loans | 128,910 | 130,361 | |||
Total Loans | 130,998 | 130,634 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Real Estate - Commercial [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 2,088 | 273 | |||
Other Real Estate Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 14 | 47 | |||
Current Loans | 23,029 | 31,094 | |||
Total Loans | 23,043 | 31,141 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Other Real Estate Construction [Member] | Loans 30-89 Days Past Due [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 14 | ||||
Other Real Estate Construction [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 0 | 47 | |||
Real Estate Construction [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Current Loans | 7,600 | 7,805 | |||
Total Loans | 7,600 | 7,805 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Real Estate - Residential [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 1,078 | 1,496 | |||
Current Loans | 70,044 | 74,908 | |||
Total Loans | 71,122 | 76,404 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Real Estate - Residential [Member] | Loans 30-89 Days Past Due [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 326 | 890 | |||
Real Estate - Residential [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 752 | 606 | |||
Home Equity [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 139 | 218 | |||
Current Loans | 51,077 | 52,323 | |||
Total Loans | 51,216 | 52,541 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Home Equity [Member] | Loans 30-89 Days Past Due [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 57 | 100 | |||
Home Equity [Member] | Loans 90 Days or More Past Due and Non - Accrual [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 82 | 118 | |||
Other Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Current Loans | 1,939 | 2,110 | |||
Total Loans | 1,939 | 2,110 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Commercial Loan [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 190 | 54 | |||
Current Loans | 58,885 | 57,122 | |||
Total Loans | 59,075 | 57,176 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Commercial Loan [Member] | Loans 30-89 Days Past Due [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 190 | 54 | |||
Consumer Loans [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | 27 | 86 | |||
Current Loans | 12,930 | 12,073 | |||
Total Loans | 12,957 | 12,159 | |||
Accruing Loans 90 or More Days Past Due | 0 | 0 | |||
Consumer Loans [Member] | Loans 30-89 Days Past Due [Member] | |||||
Financing Receivable Impaired [Line Items] | |||||
Total Past Due Loans | $ 27 | $ 86 |
Allowance for Loan Losses - Add
Allowance for Loan Losses - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Receivables [Abstract] | ||
Financing receivable recorded investment number of days past due | 90 days | |
Non-performing loans | $ 2.9 | $ 1 |
Allowance for Loan Losses - Com
Allowance for Loan Losses - Composition of Nonaccrual Loans by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | $ 3,536 | $ 2,174 |
Real Estate - Commercial [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 2,088 | 273 |
Other Real Estate Construction [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 14 | 47 |
Real Estate - Residential [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 1,078 | 1,496 |
Home Equity [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 139 | 218 |
Commercial Loan [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 190 | 54 |
Consumer Loans [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 27 | 86 |
Loans 90 Days or More Past Due and Non - Accrual [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 2,922 | 1,044 |
Loans 90 Days or More Past Due and Non - Accrual [Member] | Real Estate - Commercial [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 2,088 | 273 |
Loans 90 Days or More Past Due and Non - Accrual [Member] | Other Real Estate Construction [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 0 | 47 |
Loans 90 Days or More Past Due and Non - Accrual [Member] | Real Estate - Residential [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | 752 | 606 |
Loans 90 Days or More Past Due and Non - Accrual [Member] | Home Equity [Member] | ||
Financing Receivable Impaired [Line Items] | ||
Increase in non-performing loans | $ 82 | $ 118 |
Allowance for Loan Losses - Sum
Allowance for Loan Losses - Summary of Risk Grades of Portfolio by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | $ 357,950 | $ 369,970 | $ 356,871 | $ 341,829 | $ 320,132 |
Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 130,998 | 130,634 | |||
Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 23,043 | 31,141 | |||
Real Estate 1 - 4 Family Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 7,600 | 7,805 | |||
Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 71,122 | 76,404 | |||
Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 51,216 | 52,541 | |||
Other Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,939 | 2,110 | |||
Commercial Loan [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 59,075 | 57,176 | |||
Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 12,957 | 12,159 | |||
Pass [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 344,220 | 356,114 | |||
Pass [Member] | Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 126,498 | 127,592 | |||
Pass [Member] | Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 21,253 | 28,711 | |||
Pass [Member] | Real Estate 1 - 4 Family Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 7,600 | 7,805 | |||
Pass [Member] | Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 67,647 | 69,900 | |||
Pass [Member] | Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 50,255 | 52,028 | |||
Pass [Member] | Other Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,939 | 2,110 | |||
Pass [Member] | Commercial Loan [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 56,151 | 55,883 | |||
Pass [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 12,877 | 12,085 | |||
Watch [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 9,014 | 10,810 | |||
Watch [Member] | Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,194 | 1,518 | |||
Watch [Member] | Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,477 | 2,070 | |||
Watch [Member] | Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 2,464 | 5,470 | |||
Watch [Member] | Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 879 | 395 | |||
Watch [Member] | Commercial Loan [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 2,921 | 1,284 | |||
Watch [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 79 | 73 | |||
Sub-standard [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 4,716 | 3,046 | |||
Sub-standard [Member] | Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 3,306 | 1,524 | |||
Sub-standard [Member] | Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 313 | 360 | |||
Sub-standard [Member] | Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,011 | 1,034 | |||
Sub-standard [Member] | Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 82 | 118 | |||
Sub-standard [Member] | Commercial Loan [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 3 | 9 | |||
Sub-standard [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | $ 1 | $ 1 |
Allowance for Loan Losses - S_2
Allowance for Loan Losses - Summary of Performing and Nonperforming Loans by Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | $ 357,950 | $ 369,970 | $ 356,871 | $ 341,829 | $ 320,132 |
Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 130,998 | 130,634 | |||
Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 23,043 | 31,141 | |||
Real Estate 1 - 4 Family Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 7,600 | 7,805 | |||
Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 71,122 | 76,404 | |||
Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 51,216 | 52,541 | |||
Other Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,939 | 2,110 | |||
Commercial Loan [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 59,075 | 57,176 | |||
Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 12,957 | 12,159 | |||
Performing [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 355,028 | 368,926 | |||
Performing [Member] | Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 128,910 | 130,361 | |||
Performing [Member] | Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 23,043 | 31,094 | |||
Performing [Member] | Real Estate 1 - 4 Family Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 7,600 | 7,805 | |||
Performing [Member] | Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 70,370 | 75,798 | |||
Performing [Member] | Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 51,134 | 52,423 | |||
Performing [Member] | Other Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 1,939 | 2,110 | |||
Performing [Member] | Commercial Loan [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 59,075 | 57,176 | |||
Performing [Member] | Consumer Loans [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 12,957 | 12,159 | |||
Non-Performing [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 2,922 | 1,044 | |||
Non-Performing [Member] | Real Estate - Commercial [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 2,088 | 273 | |||
Non-Performing [Member] | Other Real Estate Construction [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 47 | ||||
Non-Performing [Member] | Real Estate - Residential [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | 752 | 606 | |||
Non-Performing [Member] | Home Equity [Member] | |||||
Financing Receivable Recorded Investment [Line Items] | |||||
Loans | $ 82 | $ 118 |
Allowance for Loan Losses - S_3
Allowance for Loan Losses - Summary of Loans Deemed Impaired and Specific Reserves Allocated by Class (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | $ 6,835 | $ 5,016 | $ 6,107 |
Recorded Investment With No Allowance | 2,923 | 1,092 | 2,802 |
Recorded Investment With Allowance | 3,912 | 3,386 | 2,767 |
Related Allowance | 141 | 154 | 194 |
Average Recorded Investment | 5,496 | 5,266 | 5,767 |
Interest Income | 314 | 205 | 263 |
Real Estate - Commercial [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | 3,612 | 1,258 | 1,593 |
Recorded Investment With No Allowance | 1,923 | 93 | 1,305 |
Recorded Investment With Allowance | 1,689 | 1,165 | 288 |
Related Allowance | 29 | 38 | 9 |
Average Recorded Investment | 2,273 | 1,503 | 1,650 |
Interest Income | 145 | 51 | 72 |
Other Real Estate Construction [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | 44 | 632 | 689 |
Recorded Investment With No Allowance | 47 | 101 | |
Recorded Investment With Allowance | 44 | 47 | 50 |
Related Allowance | 3 | 4 | 3 |
Average Recorded Investment | 64 | 132 | 208 |
Interest Income | 3 | 3 | 5 |
Real Estate 1 - 4 Family Construction [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Average Recorded Investment | 3 | ||
Real Estate - Residential [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | 3,070 | 3,005 | 3,701 |
Recorded Investment With No Allowance | 987 | 901 | 1,319 |
Recorded Investment With Allowance | 2,083 | 2,104 | 2,382 |
Related Allowance | 99 | 110 | 171 |
Average Recorded Investment | 3,010 | 3,505 | 3,762 |
Interest Income | 159 | 145 | 179 |
Home Equity [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | 82 | 83 | 35 |
Recorded Investment With No Allowance | 13 | 51 | 22 |
Recorded Investment With Allowance | 69 | 32 | 13 |
Related Allowance | 10 | 1 | 1 |
Average Recorded Investment | 116 | 54 | 66 |
Interest Income | 5 | 3 | 1 |
Commercial Loan [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | 4 | 7 | 44 |
Recorded Investment With No Allowance | 10 | ||
Recorded Investment With Allowance | 4 | 7 | 34 |
Related Allowance | 10 | ||
Average Recorded Investment | 6 | 32 | 25 |
Interest Income | 2 | ||
Consumer Loans [Member] | |||
Financing Receivable Impaired [Line Items] | |||
Unpaid Principal Balance | 23 | 31 | 45 |
Recorded Investment With No Allowance | 45 | ||
Recorded Investment With Allowance | 23 | 31 | |
Related Allowance | 1 | ||
Average Recorded Investment | 27 | 40 | 53 |
Interest Income | $ 2 | $ 3 | $ 4 |
Troubled Debt Restructures - Br
Troubled Debt Restructures - Breakdown of Types of Concessions Made by Loan Class (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | |
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 5 | 6 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 1,940 | $ 434 | $ 907 |
Post-Modification Outstanding Recorded Investment | $ 1,061 | $ 387 | $ 863 |
Other Payment Terms [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 5 | 6 | 10 |
Pre-Modification Outstanding Recorded Investment | $ 1,940 | $ 434 | $ 907 |
Post-Modification Outstanding Recorded Investment | $ 1,061 | $ 387 | $ 863 |
Other Payment Terms [Member] | Commercial Loan [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 1 | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 50 | $ 12 | |
Post-Modification Outstanding Recorded Investment | $ 4 | $ 10 | |
Other Payment Terms [Member] | Consumer Loans [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 9 | ||
Post-Modification Outstanding Recorded Investment | $ 5 | ||
Other Payment Terms [Member] | Real Estate - Commercial [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 1 | 2 | |
Pre-Modification Outstanding Recorded Investment | $ 1,629 | $ 178 | |
Post-Modification Outstanding Recorded Investment | $ 838 | $ 173 | |
Other Payment Terms [Member] | Real Estate - Residential [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Contracts | Contract | 3 | 6 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 261 | $ 434 | $ 708 |
Post-Modification Outstanding Recorded Investment | $ 219 | $ 387 | $ 675 |
Troubled Debt Restructures - Ad
Troubled Debt Restructures - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)Contract | Dec. 31, 2018USD ($)Contract | Dec. 31, 2017USD ($)Contract | |
Receivables [Abstract] | |||
Number of TDR's payment default | Contract | 1 | 1 | 1 |
Outstanding balance of TDRs | $ 3,940,000 | $ 3,500,000 | |
Outstanding balance of TDRs still accruing | $ 3,910,000 | 3,400,000 | |
TDR is defined as being past due | 90 days | ||
Allowance for loan loss on TDR | $ 117,000 | $ 144,000 | $ 171,000 |
Troubled Debt Restructures - Sc
Troubled Debt Restructures - Schedule of Status of Types of Debt Restructuring (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)ContractLoan | Dec. 31, 2018USD ($)ContractLoan | Dec. 31, 2017USD ($)ContractLoan | |
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Contract | 5 | 6 | 10 |
Recorded Investments | $ 3,940 | $ 3,500 | |
Paid In Full [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | 8 | 6 |
Recorded Investments | $ 37 | $ 1,056 | $ 217 |
Paying as Restructured [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 5 | 6 | 10 |
Recorded Investments | $ 1,940 | $ 434 | $ 863 |
Foreclosure/ Default [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | 1 | |
Recorded Investments | $ 242 | $ 15 | |
Other Loans [Member] | Paid In Full [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | 8 | 6 |
Recorded Investments | $ 37 | $ 1,056 | $ 217 |
Other Loans [Member] | Paying as Restructured [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 5 | 6 | 10 |
Recorded Investments | $ 1,940 | $ 434 | $ 863 |
Other Loans [Member] | Foreclosure/ Default [Member] | |||
Financing Receivable, Modifications [Line Items] | |||
Number of Loans | Loan | 1 | 1 | |
Recorded Investments | $ 242 | $ 15 |
Loan Servicing Assets - Additio
Loan Servicing Assets - Additional Information (Detail) - Mortgage Servicing Assets [Member] - USD ($) $ in Millions | Dec. 31, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Unpaid principal balances of mortgage and other loans serviced for others | $ 419.4 | $ 418.6 |
Fair value of mortgage servicing rights | $ 3.1 | $ 3.5 |
Loan Servicing Assets - Summary
Loan Servicing Assets - Summary of Mortgage Servicing Rights (Detail) - Mortgage Servicing Assets [Member] - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Beginning of year servicing rights: | $ 1,850 | $ 2,125 | $ 2,271 |
Amounts capitalized | 694 | 388 | 587 |
Amortization | (821) | (663) | (733) |
End of year | $ 1,723 | $ 1,850 | $ 2,125 |
Loan Servicing Assets - Estimat
Loan Servicing Assets - Estimated Amortization Expense (Detail) - Mortgage Servicing Assets [Member] - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Finite-Lived Intangible Assets [Line Items] | ||||
2020 | $ 406 | |||
2021 | 352 | |||
2022 | 298 | |||
2023 | 243 | |||
2024 | 188 | |||
Thereafter | 236 | |||
Total | $ 1,723 | $ 1,850 | $ 2,125 | $ 2,271 |
Loan Servicing Assets - Key Ass
Loan Servicing Assets - Key Assumptions Used to Value Mortgage Servicing Rights (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Transfers And Servicing [Abstract] | ||
Weighted average remaining life | 261 months | 259 months |
Weighted average discount rate | 12.00% | 12.00% |
Weighted average coupon | 4.04% | 4.02% |
Weighted average prepayment speed | 182.00% | 132.00% |
Premises and Equipment - Major
Premises and Equipment - Major Classes of Premises and Equipment and the Total Accumulated Depreciation (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 29,438 | $ 27,173 |
Less accumulated depreciation | 12,376 | 12,373 |
Net fixed assets | 17,062 | 14,800 |
Land [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 3,192 | 3,215 |
Building and Improvements [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 15,783 | 15,150 |
ROU Assets [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | 1,945 | |
Furniture, Fixtures and Equipment [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Total fixed assets | $ 8,518 | $ 8,808 |
Premises and Equipment - Additi
Premises and Equipment - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property Plant And Equipment [Abstract] | |||
Depreciation expense | $ 1,100,000 | $ 1,100,000 | $ 857,000 |
Leases - Additional Information
Leases - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)BranchOfficeLocation | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Lessee Lease Description [Line Items] | |||
Number of office locations leased | OfficeLocation | 3 | ||
Number of branch locations leased | Branch | 2 | ||
Lessee, Operating Lease, Existence of Option to Extend [true false] | true | ||
Description of option to extend | Certain lease arrangements contain extension options which range from five to ten years at the then fair market rental rates. | ||
Operating Lease, Liability | $ 2,012,000 | ||
Rental expense related to the operating leases | $ 339,782 | $ 155,575 | |
ASU 2016-02 [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating Lease, Right-of-Use Asset | 1,900,000 | ||
Operating Lease, Liability | 2,000,000 | ||
Rental expense related to the operating leases | $ 371,327 | $ 339,782 | $ 155,757 |
Minimum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases remaining term | 2 years | ||
Option to extend term | 5 years | ||
Maximum [Member] | |||
Lessee Lease Description [Line Items] | |||
Operating leases remaining term | 10 years | ||
Option to extend term | 10 years |
Leases - Summary of Other Infor
Leases - Summary of Other Information Related to Operating Leases (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities | |
Operating cash flows from operating leases | $ 357 |
ROU assets obtained in exchange for new operating lease liabilities | $ 1,945 |
Weighted-average remaining lease term - operating leases, in years | 7 years 7 months 6 days |
Weighted-average discount rate - operating leases | 2.90% |
Leases - Schedule of Maturities
Leases - Schedule of Maturities of Lease Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Operating Lease Liabilities Payments Due [Abstract] | |
2020 | $ 381 |
2021 | 347 |
2022 | 225 |
2023 | 229 |
2024 | 233 |
Thereafter | 846 |
Total lease payments | 2,261 |
Less: Interest | (249) |
Operating Lease, Liability | $ 2,012 |
Leases - Schedule of Operating
Leases - Schedule of Operating Lease Expense (Detail) $ in Thousands | Dec. 31, 2018USD ($) |
Leases Operating [Abstract] | |
2019 | $ 345 |
2020 | 345 |
2021 | 306 |
2022 | 189 |
2023 | 189 |
Thereafter | 812 |
Total | $ 2,186 |
Deposits - Schedule of Composit
Deposits - Schedule of Composition of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
Banking And Thrift [Abstract] | |||||
Demand noninterest-bearing | $ 150,283 | $ 129,714 | |||
Interest checking and money market | 263,136 | 324,391 | |||
Savings | 57,136 | 54,784 | |||
Time deposits $250,000 and over | 55,682 | 7,920 | |||
Other time deposits | 59,641 | 50,092 | |||
Total deposits | $ 585,878 | $ 566,901 | $ 512,628 | $ 485,719 | $ 467,733 |
Demand noninterest-bearing, percentage | 26.00% | 23.00% | |||
Interest checking and money market, percentage | 45.00% | 57.00% | |||
Savings, percentage | 10.00% | 10.00% | |||
Time deposits $250,000 and over, percentage | 9.00% | 1.00% | |||
Other time deposits, percentage | 10.00% | 9.00% | |||
Total, percentage | 100.00% | 100.00% |
Deposits - Maturities of Fixed-
Deposits - Maturities of Fixed-Rate Time Deposits (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Time Deposits $250,000 and Over [Member] | |
Time Deposits By Maturity [Line Items] | |
2020 | $ 53,866 |
2021 | 1,507 |
2022 | 309 |
Total | 55,682 |
Other Time Deposits [Member] | |
Time Deposits By Maturity [Line Items] | |
2020 | 39,650 |
2021 | 15,522 |
2022 | 2,977 |
2023 | 610 |
2024 | 882 |
Total | $ 59,641 |
Short-Term Borrowed Funds - Sum
Short-Term Borrowed Funds - Summary of Short-Term Borrowed Funds (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Short-term Debt [Line Items] | ||
Short-term borrowed funds, balance at year end | $ 626,000 | $ 1,190,000 |
Short-term borrowed funds, weighted average rates at year end | 0.89% | 1.49% |
Short-term borrowed funds, average balance during year | $ 906,000 | $ 1,640,000 |
Short-term borrowed funds, weighted average rate during year | 1.62% | 1.00% |
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowed funds, average balance during year | $ 2,000 | $ 2,000 |
Short-term borrowed funds, weighted average rate during year | 3.04% | 2.92% |
Master Notes and Other Short Term Borrowing [Member] | ||
Short-term Debt [Line Items] | ||
Short-term borrowed funds, balance at year end | $ 626,000 | $ 1,190,000 |
Short-term borrowed funds, weighted average rates at year end | 0.89% | 1.49% |
Short-term borrowed funds, average balance during year | $ 904,000 | $ 1,638,000 |
Short-term borrowed funds, weighted average rate during year | 1.61% | 1.00% |
Short-term borrowed funds, maximum month-end balance | $ 1,486,000 | $ 2,006,000 |
Short Term-Borrowed Funds - Add
Short Term-Borrowed Funds - Additional Information (Detail) $ in Millions | Dec. 31, 2019USD ($) |
Debt Disclosure [Abstract] | |
Federal Reserve discount | $ 47.2 |
Long-Term Debt - Additional Inf
Long-Term Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Sep. 30, 2019 | Dec. 31, 2018 | |
Debt Instrument [Line Items] | |||
Line of credit | $ 98,000,000 | ||
Remaining borrowing availability | 56,000,000 | ||
Long term advances | 0 | $ 0 | |
Proceeds from Private placement, outstanding balance | $ 9,992,000 | $ 9,974,000 | |
Junior Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Fixed rate junior subordinated debt securities per security | $ 1,000 | ||
Minimum investment required under private placement | $ 50,000 | ||
Debt securities final maturity date | Sep. 30, 2029 | ||
Proceeds from Private placement, outstanding balance | $ 10,000,000 | ||
Debt instrument earliest redemption date | Sep. 30, 2024 | ||
Interest rate of private placement | 5.25% | ||
Final maturity drops period | 5 years | ||
Percentage of proceeds from sale of securities imposed as reduction | 20.00% | ||
Standby Letters of Credit [Member] | |||
Debt Instrument [Line Items] | |||
Long term advances | $ 42,000,000 |
Long-Term Debt - Scheduled Matu
Long-Term Debt - Scheduled Maturities of Advances and Notes Payable (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Disclosure [Abstract] | ||
2020 | $ 0 | |
2021 | 0 | |
2022 | 0 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 9,992 | |
Total | $ 9,992 | $ 9,974 |
Income Tax Matters - Significan
Income Tax Matters - Significant Components of Income Tax Expense (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Current tax expense: | |||||
Federal | $ 662 | $ 524 | $ 1,022 | ||
State | 94 | 94 | 96 | ||
Total | 756 | 618 | 1,118 | ||
Deferred tax expense: | |||||
Federal | 26 | (47) | 680 | ||
State | (11) | 8 | 11 | ||
Total | 15 | (39) | 691 | ||
Net provision for income taxes | $ 771 | $ 579 | $ 1,809 | $ 895 | $ 806 |
Income Tax Matters - Additional
Income Tax Matters - Additional Information (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||
Statutory federal income tax rate | 21.00% | 35.00% | |
Tax Cuts and Jobs Act of 2017, reclassification from AOCI to retained earnings, tax effect | $ 155 | ||
Tax Cuts and Jobs Act of 2017, provisional income tax expense | $ 806 |
Income Tax Matters - Provision
Income Tax Matters - Provision for Income Taxes and the Amounts Computed by Applying the Statutory Federal Income Tax Rate of 21% to Income Before Income Taxes (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Provision for income taxes and the amounts computed by applying the statutory federal income tax rate of 34% to income before income taxes | |||||
Tax computed at the statutory federal rate | $ 810 | $ 642 | $ 1,163 | ||
Increases (decrease) resulting from: | |||||
Tax exempt interest, net | (133) | (143) | (238) | ||
State income taxes, net of federal benefit | 65 | 80 | 71 | ||
Revalue of deferred tax assets | 812 | ||||
Other | 29 | 1 | |||
Net provision for income taxes | $ 771 | $ 579 | $ 1,809 | $ 895 | $ 806 |
Income Tax Matters - Signific_2
Income Tax Matters - Significant Components of Deferred Taxes (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Deferred tax assets relating to: | |||
Allowance for loan losses | $ 478 | $ 545 | $ 569 |
Deferred compensation | 1,078 | 1,012 | 936 |
Other | 89 | 104 | 173 |
Lease liability | 462 | ||
Net unrealized loss on securities available for sale | 505 | 335 | |
Total deferred tax assets | 2,107 | 2,166 | 2,013 |
Deferred tax liabilities relating to: | |||
Net unrealized gain on securities available for sale | (96) | ||
Premises and equipment | (184) | (159) | (213) |
Deferred loans fees and costs | (159) | (163) | (148) |
Loan servicing | (92) | (99) | (116) |
ROU asset | (447) | ||
Total deferred tax liabilities | (978) | (421) | (477) |
Net recorded deferred tax asset | $ 1,129 | $ 1,745 | $ 1,536 |
Commitments and Contingencies -
Commitments and Contingencies - Outstanding Financial Instruments Whose Contract Amounts Represent Credit Risk (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Loss Contingencies [Line Items] | ||
Total commitments | $ 147,104 | $ 121,873 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Total commitments | 134,241 | 110,329 |
Credit Card Commitments [Member] | ||
Loss Contingencies [Line Items] | ||
Total commitments | 11,650 | 10,611 |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Total commitments | $ 1,213 | $ 933 |
Related Party Transactions - Su
Related Party Transactions - Summary of Loans to Directors, Executive Officers and Their Related Interests (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Related Party Transactions [Abstract] | ||
Balance, at beginning of the year | $ 9,284 | $ 8,692 |
Disbursements during the year | 4,833 | 1,902 |
Collections during the year | (3,822) | (1,310) |
Balance, at end of the year | $ 10,295 | $ 9,284 |
Related Party Transactions - Ad
Related Party Transactions - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | |
The Strategic Alliance Corp [Member] | |||
Related Party Transaction [Line Items] | |||
Private placement offering amount | $ 4,100,000 | ||
Revenue from private placement | $ 202,250 | ||
Executive Officers and Directors [Member] | |||
Related Party Transaction [Line Items] | |||
Unused lines of credit | $ 1,300,000 | $ 3,900,000 | |
Deposits for related party | 12,700,000 | 10,600,000 | |
Subordinated debt | $ 1,100,000 | $ 795,000 |
Shareholders' Equity and Regu_3
Shareholders' Equity and Regulatory Matters - Additional Information (Detail) - USD ($) | 1 Months Ended | 12 Months Ended | ||||
Jan. 31, 2013 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2013 | Sep. 30, 2019 | |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Reserve on deposit liabilities | $ 4,900,000 | |||||
Long-term debt | $ 9,992,000 | $ 9,974,000 | ||||
Shares repurchased during period | 168,683 | 138,629 | 75,709 | |||
Junior Subordinated Debt [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Fixed rate junior subordinated debt securities per security | $ 1,000 | |||||
Minimum investment required under private placement | $ 50,000 | |||||
Long-term debt | $ 10,000,000 | |||||
Debt securities final maturity date | Sep. 30, 2029 | |||||
Debt instrument earliest redemption date | Sep. 30, 2024 | |||||
Interest rate of private placement | 5.25% | |||||
Final maturity drops period | 5 years | |||||
Percentage of proceeds from sale of securities imposed as reduction | 20.00% | |||||
Preferred Stock Series B [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Issued | $ 7,900,000 | |||||
Dividends rate | 5.30% | |||||
Sale | $ 7,900,000 | |||||
Total issuance costs | $ 113,000 | |||||
Voting rights | The preferred stock has no voting rights | |||||
Preferred Stock Series C [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Issued | $ 2,800,000 | |||||
Dividends rate | 5.30% | |||||
Sale | $ 2,800,000 | |||||
Total issuance costs | $ 23,000 | |||||
Voting rights | The preferred stock has no voting rights | |||||
Basel III [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
capital to risk-weighted assets | 8.00% | |||||
Tier 1 leverage ratio | 4.00% | |||||
capital conservation buffer risk-weighted assets | 0.625% | |||||
capital conservation buffer risk-weighted assets addition per year | 0.625% | |||||
capital conservation buffer risk-weighted assets, 2019 | 2.50% | |||||
capital conservation buffer risk-weighted assets end date | Jan. 1, 2016 | |||||
Basel III [Member] | Minimum [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
common equity Tier 1 capital to risk-weighted assets | 4.50% | |||||
Tier 1 capital to risk-weighted asset | 6.00% |
Shareholders' Equity and Regu_4
Shareholders' Equity and Regulatory Matters - Company's Consolidated Capital Ratios (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Consolidated [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Actual (Amount) | $ 60,509 | $ 58,777 |
Total Capital to Risk Weighted Assets, Actual (Ratio) | 14.10% | 14.00% |
Total Capital to Risk Weighted Assets, Minimum For Capital Requirement (Amount) | $ 34,387 | $ 33,660 |
Total Capital to Risk Weighted Assets, Minimum For Capital Requirement (Ratio) | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 42,984 | $ 42,076 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 10.00% | 10.00% |
Tier 1 Capital to Risk Weighted Assets, Actual (Amount) | $ 48,536 | $ 46,869 |
Tier 1 Capital to Risk Weighted Assets, Actual (Ratio) | 11.30% | 11.10% |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Amount) | $ 25,790 | $ 25,245 |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Ratio) | 6.00% | 6.00% |
Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 34,387 | $ 33,660 |
Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 8.00% | 8.00% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual (Amount) | $ 37,881 | $ 36,214 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual (Ratio) | 8.80% | 8.60% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Amount) | $ 19,343 | $ 18,934 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Ratio) | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 27,940 | $ 27,349 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 6.50% | 6.50% |
Tier 1 Capital to Average Assets, Actual (Amount) | $ 48,536 | $ 46,869 |
Tier 1 Capital to Average Assets, Actual (Ratio) | 7.40% | 7.40% |
Tier 1 Capital to Average Assets, Minimum For Capital Requirement (Amount) | $ 26,336 | $ 25,347 |
Tier 1 Capital to Average Assets, Minimum For Capital Requirement (Ratio) | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 32,920 | $ 31,683 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 5.00% | 5.00% |
Uwharrie Bank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Total Capital to Risk Weighted Assets, Actual (Amount) | $ 58,082 | $ 57,765 |
Total Capital to Risk Weighted Assets, Actual (Ratio) | 13.60% | 13.80% |
Total Capital to Risk Weighted Assets, Minimum For Capital Requirement (Amount) | $ 34,098 | $ 33,460 |
Total Capital to Risk Weighted Assets, Minimum For Capital Requirement (Ratio) | 8.00% | 8.00% |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 42,622 | $ 41,826 |
Total Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 10.00% | 10.00% |
Tier 1 Capital to Risk Weighted Assets, Actual (Amount) | $ 56,101 | $ 55,391 |
Tier 1 Capital to Risk Weighted Assets, Actual (Ratio) | 13.20% | 13.20% |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Amount) | $ 25,573 | $ 25,095 |
Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Ratio) | 6.00% | 6.00% |
Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 34,098 | $ 33,460 |
Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 8.00% | 8.00% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual (Amount) | $ 45,446 | $ 44,736 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Actual (Ratio) | 10.70% | 10.70% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Amount) | $ 19,180 | $ 18,821 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum For Capital Requirement (Ratio) | 4.50% | 4.50% |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 27,704 | $ 27,187 |
Common Equity Tier 1 Capital to Risk Weighted Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 6.50% | 6.50% |
Tier 1 Capital to Average Assets, Actual (Amount) | $ 56,101 | $ 55,391 |
Tier 1 Capital to Average Assets, Actual (Ratio) | 8.50% | 8.80% |
Tier 1 Capital to Average Assets, Minimum For Capital Requirement (Amount) | $ 26,249 | $ 25,254 |
Tier 1 Capital to Average Assets, Minimum For Capital Requirement (Ratio) | 4.00% | 4.00% |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Amount) | $ 32,812 | $ 31,567 |
Tier 1 Capital to Average Assets, Minimum to Be Well Capitalized Under Prompt Corrective Action Provisions (Ratio) | 5.00% | 5.00% |
Stock Based Compensation - Addi
Stock Based Compensation - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation cost | $ 0 | ||
Options exercised, Shares | 0 | 13,378 | 0 |
Options exercised, Weighted Average Exercise Price | $ 4.93 | ||
2006 Incentive Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award, expiration period | 10 years | ||
Number of options outstanding | 0 | ||
Employee Stock Purchase Plan II [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share based compensation arrangement by share based payment award, expiration period | 2 years | ||
Number of options outstanding | 0 | ||
Minimum [Member] | 2006 Incentive Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
SOP vesting schedules | 3 years | ||
Maximum [Member] | 2006 Incentive Stock Option Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
SOP vesting schedules | 5 years |
Employee and Director Benefit_2
Employee and Director Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Defined Benefit Plan Disclosure [Line Items] | |||
Associate minimum age to make elective deferrals | 18 years | ||
Associate minimum service period to make elective deferrals | 30 days | ||
Percentage of employee deferrals vested | 100.00% | ||
Annual contribution to plan | $ 446,228 | $ 428,162 | $ 361,936 |
Employee contributions | 100.00% | ||
Defined contribution plan, maximum annual contribution per employee for first compensation slab percentage | 50.00% | ||
Employee contributions benchmark | 3.00% | ||
2015 Stock Grant Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Percentage of share vested | 100.00% | ||
Number of shares granted | 14,400 | 8,926 | 8,734 |
Share based compensation expenses | $ 72,000 | $ 50,000 | $ 50,000 |
Supplemental Executive Retirement Plan [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Fixed monthly benefit payments | 10 years | ||
Provision expensed for benefits | $ 336,800 | 336,800 | 336,800 |
Liability accrued for compensation deferred under the plan | $ 4,700,000 | 4,400,000 | |
Split-Dollar Life Insurance [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Interest in cash surrender value of policies | 100.00% | ||
Expense income associated with policies | $ 13,107 | 1,846 | $ 10,533 |
Liability associated with life insurance policies | $ 786,000 | $ 773,000 | |
Maximum [Member] | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Employee contributions benchmark | 5.00% | ||
Employee contributions benchmark | 3.00% |
Fair Values of Financial Inst_3
Fair Values of Financial Instruments and Interest Rate Risk - Comparison of Carrying Amounts and Estimated Fair Value of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
FINANCIAL ASSETS | ||
Securities available for sale | $ 88,524 | $ 91,299 |
Securities held to maturity | 13,499 | 10,750 |
Loans held for investment, net | 355,969 | 367,596 |
Accrued interest receivable | 1,666 | 1,763 |
FINANCIAL LIABILITIES | ||
Long-term debt | 9,992 | 9,974 |
Accrued interest payable | 55 | 16 |
Carrying Value [Member] | ||
FINANCIAL ASSETS | ||
Cash and cash equivalents | 155,198 | 117,934 |
Securities available for sale | 88,524 | 91,299 |
Securities held to maturity | 13,428 | 10,837 |
Loans held for investment, net | 355,969 | 367,596 |
Loans held for sale | 2,946 | 4,800 |
Restricted stock | 1,144 | 1,094 |
Fair value of mortgage servicing rights | 1,723 | 1,850 |
Accrued interest receivable | 1,666 | 1,763 |
FINANCIAL LIABILITIES | ||
Deposits | 585,878 | 566,901 |
Short-term borrowings | 626 | 1,190 |
Long-term debt | 9,992 | 9,974 |
Accrued interest payable | 55 | 16 |
Estimated Fair Value [Member] | ||
FINANCIAL ASSETS | ||
Cash and cash equivalents | 117,938 | 117,901 |
Securities available for sale | 88,524 | 91,299 |
Securities held to maturity | 13,499 | 10,750 |
Loans held for investment, net | 354,269 | 364,636 |
Loans held for sale | 2,946 | 4,800 |
Restricted stock | 1,144 | 1,094 |
Fair value of mortgage servicing rights | 3,228 | 3,455 |
Accrued interest receivable | 1,666 | 1,763 |
FINANCIAL LIABILITIES | ||
Deposits | 567,130 | 521,508 |
Short-term borrowings | 626 | 1,190 |
Long-term debt | 10,180 | 10,086 |
Accrued interest payable | 55 | 16 |
Level 1 [Member] | ||
FINANCIAL ASSETS | ||
Cash and cash equivalents | 115,693 | 115,693 |
Securities available for sale | 5,012 | 4,955 |
Restricted stock | 1,144 | 1,094 |
Level 2 [Member] | ||
FINANCIAL ASSETS | ||
Cash and cash equivalents | 2,245 | 2,208 |
Securities available for sale | 83,512 | 86,344 |
Securities held to maturity | 10,499 | 10,750 |
Loans held for sale | 2,946 | 4,800 |
Fair value of mortgage servicing rights | 3,228 | 3,455 |
FINANCIAL LIABILITIES | ||
Deposits | 567,130 | 521,508 |
Short-term borrowings | 626 | 1,190 |
Level 3 [Member] | ||
FINANCIAL ASSETS | ||
Securities held to maturity | 3,000 | |
Loans held for investment, net | 354,269 | 364,636 |
Accrued interest receivable | 1,666 | 1,763 |
FINANCIAL LIABILITIES | ||
Long-term debt | 10,180 | 10,086 |
Accrued interest payable | $ 55 | $ 16 |
Fair Values of Financial Inst_4
Fair Values of Financial Instruments and Interest Rate Risk - Fair Value Information for Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 88,524 | $ 91,299 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,012 | 4,955 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 83,512 | 86,344 |
Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,029 | 4,771 |
Fair Value on a Recurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 88,524 | 91,299 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | U.S. Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,012 | 4,955 |
Fair Value on a Recurring Basis [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 25,686 | 51,916 |
Fair Value on a Recurring Basis [Member] | GSE - Mortgage-backed Securities and CMO's [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 38,576 | 16,702 |
Fair Value on a Recurring Basis [Member] | State and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 14,221 | 12,955 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,012 | 4,955 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | U.S. Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,012 | 4,955 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | GSE - Mortgage-backed Securities and CMO's [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 1 [Member] | State and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 83,512 | 86,344 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | U.S. Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 25,686 | 51,916 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | GSE - Mortgage-backed Securities and CMO's [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 38,576 | 16,702 |
Fair Value on a Recurring Basis [Member] | Level 2 [Member] | State and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 14,221 | 12,955 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | U.S. Treasury [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | U.S. Government Agencies [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | GSE - Mortgage-backed Securities and CMO's [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Level 3 [Member] | State and Political Subdivisions [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,029 | 4,771 |
Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 0 | 0 |
Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | 5,029 | 4,771 |
Fair Value on a Recurring Basis [Member] | Corporate Bonds [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total assets at fair value | $ 0 | $ 0 |
Fair Values of Financial Inst_5
Fair Values of Financial Instruments and Interest Rate Risk - Assets Re-Measured at Fair Value (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | $ 88,524 | $ 91,299 |
Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 5,012 | 4,955 |
Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair Value | 83,512 | 86,344 |
Fair Value on a Nonrecurring Basis [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,771 | 3,279 |
Other real estate owned | 364 | 951 |
Fair Value | 4,135 | 4,230 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Nonrecurring Basis [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Nonrecurring Basis [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 0 | 0 |
Other real estate owned | 0 | 0 |
Fair Value | 0 | 0 |
Total liabilities at fair value | 0 | 0 |
Fair Value on a Nonrecurring Basis [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Impaired loans | 3,771 | 3,279 |
Other real estate owned | 364 | 951 |
Fair Value | 4,135 | 4,230 |
Total liabilities at fair value | $ 0 | $ 0 |
Fair Values of Financial Inst_6
Fair Values of Financial Instruments and Interest Rate Risk - Quantitative Information about Level 3 Fair Value Measurements (Detail) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Discounted Cash Flows [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique | Discounted cash flows | Discounted cash flows |
Discounted Cash Flows [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value inputs discount rate and estimated costs to sell | 4.00% | 4.00% |
Discounted Cash Flows [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value inputs discount rate and estimated costs to sell | 8.75% | 8.75% |
Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique | Discounted appraisals | Discounted appraisals |
Impaired Loans [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value inputs discount rate and estimated costs to sell | 0.00% | 0.00% |
Impaired Loans [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value inputs discount rate and estimated costs to sell | 25.00% | 25.00% |
OREO [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Valuation Technique | Discounted appraisals | Discounted appraisals |
OREO [Member] | Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value inputs discount rate and estimated costs to sell | 0.00% | 0.00% |
OREO [Member] | Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value inputs discount rate and estimated costs to sell | 10.00% | 10.00% |
Parent Company Financial Data -
Parent Company Financial Data - Condensed Balance Sheets (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | |||||
Cash and demand deposits | $ 7,520 | $ 4,473 | |||
Interest-earning deposits | 147,678 | 113,461 | |||
Investments in: | |||||
Other assets | 10,852 | 11,905 | |||
Total assets | 656,793 | 632,304 | $ 577,253 | $ 548,230 | $ 532,202 |
Liabilities and shareholders’ equity | |||||
Short term debt | 626 | 1,190 | |||
Long-term debt | 9,992 | 9,974 | |||
Other liabilities | 11,384 | 9,048 | |||
Total liabilities | 607,935 | 587,129 | |||
Shareholders’ equity | 38,203 | 34,520 | |||
Total liabilities and shareholders’ equity | 656,793 | 632,304 | |||
Number of Common Shares Issued [Member] | |||||
ASSETS | |||||
Cash and demand deposits | 526 | 287 | |||
Interest-earning deposits | 1,589 | 1,256 | |||
Investments in: | |||||
Bank subsidiaries | 45,770 | 43,042 | |||
Nonbank subsidiaries | 381 | 450 | |||
Other assets | 2,073 | 1,638 | |||
Total assets | 50,339 | 46,673 | |||
Liabilities and shareholders’ equity | |||||
Master notes | 626 | 1,190 | |||
Long-term debt | 9,992 | 9,974 | |||
Other liabilities | 1,518 | 989 | |||
Total liabilities | 12,136 | 12,153 | |||
Shareholders’ equity | 38,203 | 34,520 | |||
Total liabilities and shareholders’ equity | $ 50,339 | $ 46,673 |
Parent Company Financial Data_2
Parent Company Financial Data - Condensed Statements of Income (Detail) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Condensed Income Statements, Captions [Line Items] | |||||
Other income | $ 344 | $ 810 | $ 595 | ||
Interest expense | (3,565) | (1,882) | (1,277) | $ (1,310) | $ (1,733) |
Other operating expense | (1,869) | (1,917) | (2,009) | ||
Income tax benefit | (771) | (579) | (1,809) | (895) | (806) |
Net income | 3,087 | 2,477 | 1,611 | 2,211 | 2,007 |
Consolidated net income | 3,087 | 2,477 | 1,611 | 2,211 | 2,007 |
Less: Net income attributable to noncontrolling interest | (564) | (570) | (592) | (593) | (592) |
Net income available to common shareholders | $ 2,523 | $ 1,907 | $ 1,019 | $ 1,618 | $ 1,415 |
Net income per common share | |||||
Basic | $ 0.35 | $ 0.26 | $ 0.14 | $ 0.21 | $ 0.19 |
Diluted | $ 0.35 | $ 0.26 | $ 0.14 | $ 0.21 | $ 0.19 |
Weighted average common shares outstanding | |||||
Basic | 7,199,262 | 7,229,333 | 7,427,036 | 7,531,360 | 7,634,024 |
Diluted | 7,199,262 | 7,229,333 | 7,427,804 | 7,531,470 | 7,634,024 |
Number of Common Shares Issued [Member] | |||||
Condensed Income Statements, Captions [Line Items] | |||||
Equity in undistributed earnings (loss) of subsidiaries | $ 1,206 | $ 2,026 | $ 745 | ||
Dividends received from subsidiaries | 2,750 | 1,150 | 1,500 | ||
Interest income | 15 | 17 | 6 | ||
Other income | 41 | 80 | 93 | ||
Interest expense | (577) | (571) | (564) | ||
Other operating expense | (578) | (410) | (436) | ||
Income tax benefit | 230 | 185 | 267 | ||
Net income | 3,087 | 2,477 | 1,611 | ||
Consolidated net income | 3,087 | 2,477 | 1,611 | ||
Less: Net income attributable to noncontrolling interest | (564) | (570) | (592) | ||
Net income attributable to Uwharrie Capital Corp | 2,523 | 1,907 | 1,019 | ||
Net income available to common shareholders | $ 2,523 | $ 1,907 | $ 1,019 | ||
Net income per common share | |||||
Basic | $ 0.36 | $ 0.26 | $ 0.14 | ||
Diluted | $ 0.36 | $ 0.26 | $ 0.14 | ||
Weighted average common shares outstanding | |||||
Basic | 7,066,880 | 7,229,333 | 7,427,036 | ||
Diluted | 7,066,880 | 7,229,333 | 7,427,804 |
Parent Company Financial Data_3
Parent Company Financial Data - Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Cash flows from operating activities | |||||
Net Income | $ 3,087 | $ 2,477 | $ 1,611 | $ 2,211 | $ 2,007 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Net cash provided by operating activities | 6,727 | 3,998 | 5,753 | ||
Increase in other assets | 421 | (422) | (602) | ||
Increase in other liabilities | (6) | 397 | 1,129 | ||
Cash flows from financing activities | |||||
Increase (decrease) in long-term debt | 9,992 | 440 | |||
Repurchase of common stock, net | (850) | (747) | (391) | ||
Cash paid for fractional shares | (7) | (8) | (6) | ||
Net cash provided by financing activities | 17,010 | 52,891 | 24,998 | ||
Increase in cash and cash equivalents | 37,264 | 47,531 | 24,435 | ||
Cash and cash equivalents, beginning of year | 117,934 | 70,403 | 45,968 | ||
Cash and cash equivalents, end of year | 155,198 | 117,934 | 70,403 | 45,968 | |
Number of Common Shares Issued [Member] | |||||
Cash flows from operating activities | |||||
Net Income | 3,087 | 2,477 | 1,611 | ||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||
Net cash provided by operating activities | 1,974 | 473 | 1,009 | ||
Equity in undistributed (earnings) loss of subsidiaries | (1,206) | (2,026) | (745) | ||
Increase in other assets | (435) | (198) | (124) | ||
Increase in other liabilities | 528 | 220 | 267 | ||
Cash flows from financing activities | |||||
Decrease in master notes | (564) | (562) | (410) | ||
Decrease in short-term debt | (500) | ||||
Increase (decrease) in long-term debt | (440) | 440 | |||
Net increase in subordinated debentures | 458 | ||||
Net increase in investment in subsidiaries | (250) | ||||
Net proceeds from issuance of common stock - stock options | 65 | ||||
Repurchase of common stock, net | (850) | (747) | (391) | ||
Cash paid for fractional shares | (7) | (7) | (7) | ||
Other, net | 1 | ||||
Net cash provided by financing activities | (1,402) | (1,061) | (1,308) | ||
Increase in cash and cash equivalents | 572 | (588) | (299) | ||
Cash and cash equivalents, beginning of year | 1,543 | 2,131 | 2,430 | ||
Cash and cash equivalents, end of year | $ 2,115 | $ 1,543 | $ 2,131 | $ 2,430 |
Selected Financial Data - Summa
Selected Financial Data - Summary of Quarterly Financial Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 | Dec. 31, 2015 | |
Quarterly Financial Information Disclosure [Abstract] | |||||
Interest income | $ 23,767 | $ 21,873 | $ 19,340 | $ 18,046 | $ 17,847 |
Interest expense | 3,565 | 1,882 | 1,277 | 1,310 | 1,733 |
Net interest income | 20,202 | 19,991 | 18,063 | 16,736 | 16,114 |
Provision for (recovery of) loan losses | (588) | 90 | (236) | (88) | (620) |
Noninterest income | 9,005 | 8,279 | 8,425 | 9,357 | 7,712 |
Noninterest expense | 25,937 | 25,124 | 23,304 | 23,075 | 21,633 |
Income taxes | 771 | 579 | 1,809 | 895 | 806 |
Net Income | 3,087 | 2,477 | 1,611 | 2,211 | 2,007 |
Less: Net income attributable to noncontrolling interest | (564) | (570) | (592) | (593) | (592) |
Net income attributable to Uwharrie Capital Corp and common shareholders | $ 2,523 | $ 1,907 | $ 1,019 | $ 1,618 | $ 1,415 |
Basic | $ 0.35 | $ 0.26 | $ 0.14 | $ 0.21 | $ 0.19 |
Diluted | 0.35 | 0.26 | 0.14 | 0.21 | 0.19 |
Book value | $ 5.38 | $ 4.75 | $ 4.58 | $ 4.40 | $ 4.33 |
Basic | 7,199,262 | 7,229,333 | 7,427,036 | 7,531,360 | 7,634,024 |
Diluted | 7,199,262 | 7,229,333 | 7,427,804 | 7,531,470 | 7,634,024 |
Return on average assets | 0.48% | 0.40% | 0.28% | 0.41% | 0.38% |
Return on average equity | 6.43% | 5.57% | 3.62% | 4.99% | 4.65% |
Average equity to average assets | 7.43% | 7.26% | 7.78% | 8.29% | 8.27% |
Assets | $ 656,793 | $ 632,304 | $ 577,253 | $ 548,230 | $ 532,202 |
Loans held for investment | 357,950 | 369,970 | 356,871 | 341,829 | 320,132 |
Securities | 101,952 | 102,136 | 107,201 | 117,889 | 100,500 |
Deposits | 585,878 | 566,901 | 512,628 | 485,719 | 467,733 |
Borrowed funds | 10,618 | 11,164 | 11,286 | 12,208 | 15,305 |
Shareholders’ equity | 48,858 | 45,175 | 44,540 | 43,525 | 43,314 |
Assets | 645,681 | 612,403 | 572,630 | 534,296 | 521,699 |
Loans held for investment | 369,540 | 369,419 | 348,980 | 334,317 | 316,485 |
Securities | 100,775 | 103,223 | 113,025 | 107,396 | 112,348 |
Deposits | 575,480 | 548,296 | 509,352 | 470,921 | 458,655 |
Borrowed funds | 10,956 | 11,284 | 11,679 | 12,898 | 14,432 |
Shareholders’ equity | $ 47,993 | $ 44,468 | $ 44,542 | $ 44,283 | $ 43,123 |
Selected Financial Data - Sum_2
Selected Financial Data - Summary of Quarterly Financial Information (Parenthetical) (Details) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Quarterly Financial Information Disclosure [Abstract] | ||||
Adjusted stock dividend | 2.00% | 2.00% | 2.00% | 2.00% |