(Title of class) | (Trading Symbol) | (Exchanges registered on) |
Large accelerated filer | ☐ | Accelerated filer | ☐ | ||||||||
☒ | Smaller reporting company | ||||||||||
Emerging growth company |
Common Stock, $2 par value | shares |
PART II OTHER INFORMATION | |||||
June 30, 2022 | December 31, 2021 | |||||||
(Unaudited) | ||||||||
Assets | (Dollars in thousands) | |||||||
Cash and due from banks | $ | $ | ||||||
Federal funds sold and overnight deposits | ||||||||
Cash and cash equivalents | ||||||||
Interest bearing deposits in banks | ||||||||
Investment securities available-for-sale | ||||||||
Other investments | ||||||||
Total investments | ||||||||
Loans held for sale | ||||||||
Loans | ||||||||
Allowance for loan losses | ( | ( | ||||||
Net deferred loan costs | ||||||||
Net loans | ||||||||
Premises and equipment, net | ||||||||
Company-owned life insurance | ||||||||
Other assets | ||||||||
Total assets | $ | $ | ||||||
Liabilities and Stockholders’ Equity | ||||||||
Liabilities | ||||||||
Deposits | ||||||||
Noninterest bearing | $ | $ | ||||||
Interest bearing | ||||||||
Time | ||||||||
Total deposits | ||||||||
Subordinated notes | ||||||||
Accrued interest and other liabilities | ||||||||
Total liabilities | ||||||||
Commitments and Contingencies | ||||||||
Stockholders’ Equity | ||||||||
Common stock, $ issued at June 30, 2022 and | ||||||||
Additional paid-in capital | ||||||||
Retained earnings | ||||||||
Treasury stock at cost; and | ( | ( | ||||||
Accumulated other comprehensive loss | ( | ( | ||||||
Total stockholders' equity | ||||||||
Total liabilities and stockholders' equity | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Interest and dividend income | (Dollars in thousands, except per share data) | |||||||||||||
Interest and fees on loans | $ | $ | $ | $ | ||||||||||
Interest on debt securities: | ||||||||||||||
Taxable | ||||||||||||||
Tax exempt | ||||||||||||||
Dividends | ||||||||||||||
Interest on federal funds sold and overnight deposits | ||||||||||||||
Interest on interest bearing deposits in banks | ||||||||||||||
Total interest and dividend income | ||||||||||||||
Interest expense | ||||||||||||||
Interest on deposits | ||||||||||||||
Interest on borrowed funds | ||||||||||||||
Interest on subordinated notes | ||||||||||||||
Total interest expense | ||||||||||||||
Net interest income | ||||||||||||||
Provision for loan losses | ||||||||||||||
Net interest income after provision for loan losses | ||||||||||||||
Noninterest income | ||||||||||||||
Trust income | ||||||||||||||
Service fees | ||||||||||||||
Net gains on sales of investment securities available-for-sale | ||||||||||||||
Net gains on sales of loans held for sale | ||||||||||||||
Net (losses) gains on other investments | ( | ( | ||||||||||||
Other income | ||||||||||||||
Total noninterest income | ||||||||||||||
Noninterest expenses | ||||||||||||||
Salaries and wages | ||||||||||||||
Employee benefits | ||||||||||||||
Occupancy expense, net | ||||||||||||||
Equipment expense | ||||||||||||||
Other expenses | ||||||||||||||
Total noninterest expenses | ||||||||||||||
Income before provision for income taxes | ||||||||||||||
Provision for income taxes | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Basic earnings per common share | $ | $ | $ | $ | ||||||||||
Diluted earnings per common share | $ | $ | $ | $ | ||||||||||
Weighted average number of common shares outstanding | ||||||||||||||
Weighted average common and potential common shares for diluted EPS | ||||||||||||||
Dividends per common share | $ | $ | $ | $ |
Three Months Ended June 30, | Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Other comprehensive (loss) income, net of tax: | ||||||||||||||
Investment securities available-for-sale: | ||||||||||||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | ( | ( | ( | |||||||||||
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | ( | ( | ||||||||||||
Total other comprehensive (loss) income | ( | ( | ( | |||||||||||
Total comprehensive (loss) income | $ | ( | $ | $ | ( | $ |
Three Month Periods Ended June 30, 2022 and 2021 | |||||||||||||||||||||||
Common Stock | Accumulated other comprehensive (loss) income | ||||||||||||||||||||||
Shares, net of treasury | Amount | Additional paid-in capital | Retained earnings | Treasury stock | Total stockholders’ equity | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
Balances March 31, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Dividend reinvestment plan | — | — | — | ||||||||||||||||||||
Cash dividends declared ($ | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||
Purchase of treasury stock | ( | — | — | — | ( | — | ( | ||||||||||||||||
Balances, June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Balances March 31, 2021 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||
Dividend reinvestment plan | — | — | — | ||||||||||||||||||||
Cash dividends declared ($ | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||
Balances, June 30, 2021 | $ | $ | $ | $ | ( | $ | $ |
Six Month Periods Ended June 30, 2022 and 2021 | |||||||||||||||||||||||
Common Stock | Accumulated other comprehensive (loss) income | ||||||||||||||||||||||
Shares, net of treasury | Amount | Additional paid-in capital | Retained earnings | Treasury stock | Total stockholders’ equity | ||||||||||||||||||
(Dollars in thousands, except per share data) | |||||||||||||||||||||||
Balances, December 31, 2021 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Dividend reinvestment plan | — | — | — | ||||||||||||||||||||
Cash dividends declared ($ | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||
Purchase of treasury stock | ( | — | — | — | ( | — | ( | ||||||||||||||||
Balances, June 30, 2022 | $ | $ | $ | $ | ( | $ | ( | $ | |||||||||||||||
Balances, December 31, 2020 | $ | $ | $ | $ | ( | $ | $ | ||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||
Other comprehensive loss | — | — | — | — | — | ( | ( | ||||||||||||||||
Dividend reinvestment plan | — | — | — | ||||||||||||||||||||
Cash dividends declared ($ | — | — | — | ( | — | — | ( | ||||||||||||||||
Stock based compensation expense | — | — | — | ||||||||||||||||||||
Exercise of stock options | — | — | — | ||||||||||||||||||||
Purchase of treasury stock | ( | — | — | — | ( | — | ( | ||||||||||||||||
Balances, June 30, 2021 | $ | $ | $ | $ | ( | $ | $ |
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Cash Flows From Operating Activities | (Dollars in thousands) | |||||||
Net income | $ | $ | ||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||||||||
Depreciation | ||||||||
Provision for loan losses | ||||||||
Deferred income tax provision | ||||||||
Net amortization of premiums on investment securities | ||||||||
Equity in losses of limited partnerships | ||||||||
Stock based compensation expense | ||||||||
Net (increase) decrease in unamortized loan costs | ( | |||||||
Proceeds from sales of loans held for sale | ||||||||
Origination of loans held for sale | ( | ( | ||||||
Net gains on sales of loans held for sale | ( | ( | ||||||
Net losses on disposals of premises and equipment | ||||||||
Net gains on sales of investment securities available-for-sale | ( | |||||||
Net gains on sales of other real estate owned | ( | |||||||
Net losses (gains) on other investments | ( | |||||||
Increase in accrued interest receivable | ||||||||
Amortization of core deposit intangible | ||||||||
Amortization of debt issuance costs | ||||||||
Increase in other assets | ( | ( | ||||||
Increase (decrease) in other liabilities | ( | |||||||
Net cash provided by (used in) operating activities | ( | |||||||
Cash Flows From Investing Activities | ||||||||
Interest bearing deposits in banks | ||||||||
Proceeds from maturities and redemptions | ||||||||
Purchases | ( | ( | ||||||
Investment securities available-for-sale | ||||||||
Proceeds from sales | ||||||||
Proceeds from maturities, calls and paydowns | ||||||||
Purchases | ( | ( | ||||||
Net purchases of other investments | ( | ( | ||||||
Net decrease (increase) in nonmarketable stock | ( | |||||||
Net (increase) decrease in loans | ( | |||||||
Recoveries of loans charged off | ||||||||
Net purchases of premises and equipment | ( | ( | ||||||
Investments in limited partnerships | ( | ( | ||||||
Proceeds from sales of other real estate owned | ||||||||
Net cash used in investing activities | ( | ( |
Six Months Ended June 30, | ||||||||
2022 | 2021 | |||||||
Cash Flows From Financing Activities | (Dollars in thousands) | |||||||
Net increase in noninterest bearing deposits | ||||||||
Net decrease in interest bearing deposits | ( | ( | ||||||
Net decrease in time deposits | ( | ( | ||||||
Exercise of stock options | ||||||||
Purchase of treasury stock | ( | ( | ||||||
Dividends paid | ( | ( | ||||||
Net cash provided by (used in) financing activities | ( | |||||||
Net decrease in cash and cash equivalents | ( | ( | ||||||
Cash and cash equivalents | ||||||||
Beginning of period | ||||||||
End of period | $ | $ | ||||||
Supplemental Disclosures of Cash Flow Information | ||||||||
Interest paid | $ | $ | ||||||
Income taxes paid | $ | $ | ||||||
Supplemental Schedule of Noncash Investing Activities | ||||||||
Investment in limited partnerships acquired by capital contributions payable | $ | $ | ||||||
Dividends paid on Common Stock: | ||||||||
Dividends declared | $ | $ | ||||||
Dividends reinvested | ( | ( | ||||||
$ | $ | |||||||
AFS: | Available-for-sale | ICS: | Insured Cash Sweeps of the Promontory Interfinancial Network | ||||||||
ALCO: | Asset Liability Committee | IRS: | Internal Revenue Service | ||||||||
ALL: | Allowance for loan losses | MBS: | Mortgage-backed security | ||||||||
ASC: | Accounting Standards Codification | MSRs: | Mortgage servicing rights | ||||||||
ASU: | Accounting Standards Update | OAO: | Other assets owned | ||||||||
Board: | Board of Directors | OCI: | Other comprehensive income (loss) | ||||||||
bp or bps: | Basis point(s) | OFAC: | U.S. Office of Foreign Assets Control | ||||||||
CARES Act: | Coronavirus Aid, Relief and Economic Security Act | OREO: | Other real estate owned | ||||||||
CDARS: | Certificate of Deposit Accounts Registry Service of the Promontory Interfinancial Network | OTTI: | Other-than-temporary impairment | ||||||||
Company: | Union Bankshares, Inc. and Subsidiary | OTT: | Other-than-temporary | ||||||||
COVID-19: | Novel Coronavirus | PPP: | Paycheck Protection Program | ||||||||
Dodd-Frank Act: | The Dodd-Frank Wall Street Reform and Consumer Protection Act of 2010 | RD: | USDA Rural Development | ||||||||
DRIP: | Dividend Reinvestment Plan | RSU: | Restricted Stock Unit | ||||||||
FASB: | Financial Accounting Standards Board | SBA: | U.S. Small Business Administration | ||||||||
FDIC: | Federal Deposit Insurance Corporation | SEC: | U.S. Securities and Exchange Commission | ||||||||
FHA: | U.S. Federal Housing Administration | TDR: | Troubled-debt restructuring | ||||||||
FHLB: | Federal Home Loan Bank of Boston | Union: | Union Bank, the sole subsidiary of Union Bankshares, Inc | ||||||||
FRB: | Federal Reserve Board | USDA: | U.S. Department of Agriculture | ||||||||
FHLMC/Freddie Mac: | Federal Home Loan Mortgage Corporation | VA: | U.S. Veterans Administration | ||||||||
GAAP: | Generally Accepted Accounting Principles in the United States | 2014 Equity Plan: | 2014 Equity Incentive Plan, as amended | ||||||||
HTM: | Held-to-maturity | 2021 Annual Report: | Annual Report on Form 10-K for the year ended December 31, 2021, as amended by Amendment No. 1 on Form 10-K/A | ||||||||
HUD: | U.S. Department of Housing and Urban Development |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
(Dollars in thousands, except per share data) | ||||||||||||||
Net income | $ | $ | $ | $ | ||||||||||
Weighted average common shares outstanding for basic EPS | ||||||||||||||
Dilutive effect of stock-based awards (1) | ||||||||||||||
Weighted average common and potential common shares for diluted EPS | ||||||||||||||
Earnings per common share: | ||||||||||||||
Basic EPS | $ | $ | $ | $ | ||||||||||
Diluted EPS | $ | $ | $ | $ |
June 30, 2022 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
(Dollars in thousands) | ||||||||||||||
U.S. Government-sponsored enterprises | $ | $ | $ | ( | $ | |||||||||
Agency mortgage-backed | ( | |||||||||||||
State and political subdivisions | ( | |||||||||||||
Corporate | ( | |||||||||||||
Total | $ | $ | $ | ( | $ | |||||||||
December 31, 2021 | Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||
(Dollars in thousands) | ||||||||||||||
U.S. Government-sponsored enterprises | $ | $ | $ | ( | $ | |||||||||
Agency mortgage-backed | ( | |||||||||||||
State and political subdivisions | ( | |||||||||||||
Corporate | ( | |||||||||||||
Total | $ | $ | $ | ( | $ | |||||||||
Amortized Cost | Fair Value | |||||||
Available-for-sale | (Dollars in thousands) | |||||||
Due from one to five years | $ | $ | ||||||
Due from five to ten years | ||||||||
Due after ten years | ||||||||
Agency mortgage-backed | ||||||||
Total debt securities available-for-sale | $ | $ | ||||||
June 30, 2022 | Less Than 12 Months | 12 Months and over | Total | ||||||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
U.S. Government- sponsored enterprises | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Agency mortgage-backed | ( | ( | ( | ||||||||||||||||||||||||||
State and political subdivisions | ( | ( | |||||||||||||||||||||||||||
Corporate | ( | ( | ( | ||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
December 31, 2021 | Less Than 12 Months | 12 Months and over | Total | ||||||||||||||||||||||||||
Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | Number of Securities | Fair Value | Gross Unrealized Losses | |||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||||||
U.S. Government- sponsored enterprises | $ | $ | ( | $ | $ | ( | $ | $ | ( | ||||||||||||||||||||
Agency mortgage-backed | ( | ( | ( | ||||||||||||||||||||||||||
State and political subdivisions | ( | ( | |||||||||||||||||||||||||||
Corporate | ( | ( | ( | ||||||||||||||||||||||||||
Total | $ | $ | ( | $ | $ | ( | $ | $ | ( |
For The Three Months Ended June 30, 2022 | For The Six Months Ended June 30, 2022 | |||||||
(Dollars in thousands) | ||||||||
Proceeds from sales | $ | $ | ||||||
Proceeds from calls | $ | $ | ||||||
Gross gains | ||||||||
Gross losses | ( | |||||||
Net gains on sales of investment securities AFS | $ | $ |
June 30, 2022 | December 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
Residential real estate | $ | $ | ||||||
Construction real estate | ||||||||
Commercial real estate | ||||||||
Commercial | ||||||||
Consumer | ||||||||
Municipal | ||||||||
Gross loans | ||||||||
Allowance for loan losses | ( | ( | ||||||
Net deferred loan costs | ||||||||
Net loans | $ | $ |
June 30, 2022 | Current | 30-59 Days | 60-89 Days | 90 Days and Over and Accruing | Nonaccrual | Total | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | $ | ||||||||||||||
Construction real estate | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Commercial | ||||||||||||||||||||
Consumer | ||||||||||||||||||||
Municipal | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Current | 30-59 Days | 60-89 Days | 90 Days and Over and Accruing | Nonaccrual | Total | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | $ | ||||||||||||||
Construction real estate | ||||||||||||||||||||
Commercial real estate | ||||||||||||||||||||
Commercial | ||||||||||||||||||||
Consumer | ||||||||||||||||||||
Municipal | ||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ |
For The Three Months Ended June 30, 2022 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance, March 31, 2022 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Provision (credit) for loan losses | ( | ( | ( | |||||||||||||||||||||||
Recoveries of amounts charged off | ||||||||||||||||||||||||||
Amounts charged off | ( | ( | ||||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ |
For The Three Months Ended June 30, 2021 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance, March 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Provision (credit) for loan losses | ( | ( | ( | ( | ||||||||||||||||||||||
Recoveries of amounts charged off | ||||||||||||||||||||||||||
Amounts charged off | ||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ |
For The Six Months Ended June 30, 2022 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance, December 31, 2021 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Provision (credit) for loan losses | ( | ( | ( | ( | ||||||||||||||||||||||
Recoveries of amounts charged off | ||||||||||||||||||||||||||
Amounts charged off | ( | ( | ( | |||||||||||||||||||||||
Balance, June 30, 2022 | $ | $ | $ | $ | $ | $ | $ | $ |
For The Six Months Ended June 30, 2021 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Balance, December 31, 2020 | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Provision (credit) for loan losses | ( | ( | ( | ( | ( | |||||||||||||||||||||
Recoveries of amounts charged off | ||||||||||||||||||||||||||
Amounts charged off | ||||||||||||||||||||||||||
Balance, June 30, 2021 | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2022 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||
Total allocated | $ | $ | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Unallocated | Total | ||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||||
Collectively evaluated for impairment | ||||||||||||||||||||||||||
Total allocated | $ | $ | $ | $ | $ | $ | $ | $ |
June 30, 2022 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Individually evaluated for impairment | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Collectively evaluated for impairment | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
June 30, 2022 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Satisfactory/Monitor | |||||||||||||||||||||||
Substandard | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
December 31, 2021 | Residential Real Estate | Construction Real Estate | Commercial Real Estate | Commercial | Consumer | Municipal | Total | ||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Pass | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Satisfactory/Monitor | |||||||||||||||||||||||
Substandard | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
As of June 30, 2022 | For The Three Months Ended June 30, 2022 | For the Six Months Ended June 30, 2022 | |||||||||||||||||||||
Recorded Investment (1) | Principal Balance (1) | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Residential real estate | $ | $ | $ | ||||||||||||||||||||
With an allowance recorded | |||||||||||||||||||||||
Residential real estate | — | ||||||||||||||||||||||
Construction real estate | — | ||||||||||||||||||||||
Commercial real estate | — | ||||||||||||||||||||||
Commercial | — | ||||||||||||||||||||||
With no allowance recorded | — | ||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | |||||||||||||||||||
Construction real estate | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
As of June 30, 2021 | For The Three Months Ended June 30, 2021 | For the Six Months Ended June 30, 2021 | |||||||||||||||||||||
Recorded Investment (1) | Principal Balance (1) | Related Allowance | Average Recorded Investment | Interest Income Recognized | Average Recorded Investment | Interest Income Recognized | |||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Residential real estate | $ | $ | $ | $ | $ | $ | $ | ||||||||||||||||
Construction real estate | |||||||||||||||||||||||
Commercial real estate | |||||||||||||||||||||||
Commercial | |||||||||||||||||||||||
Total | $ | $ | $ | $ | $ | $ | $ |
December 31, 2021 | |||||||||||||||||
Recorded Investment (1) | Principal Balance (1) | Related Allowance | |||||||||||||||
(Dollars in thousands) | |||||||||||||||||
Residential real estate | $ | $ | $ | ||||||||||||||
Commercial real estate | |||||||||||||||||
With an allowance recorded | |||||||||||||||||
Residential real estate | — | ||||||||||||||||
Construction real estate | — | ||||||||||||||||
Commercial real estate | — | ||||||||||||||||
Commercial | — | ||||||||||||||||
With no allowance recorded | — | ||||||||||||||||
Residential real estate | |||||||||||||||||
Construction real estate | |||||||||||||||||
Commercial real estate | |||||||||||||||||
Commercial | |||||||||||||||||
Total | $ | $ | $ |
June 30, 2022 | December 31, 2021 | |||||||||||||
Number of Loans | Principal Balance | Number of Loans | Principal Balance | |||||||||||
(Dollars in thousands) | ||||||||||||||
Residential real estate | $ | $ | ||||||||||||
Construction real estate | ||||||||||||||
Commercial real estate | ||||||||||||||
Commercial | ||||||||||||||
Total | $ | $ |
Number of RSUs Granted | Weighted Average Grant Date Fair Value | Number of Unvested RSUs | |||||||||
2020 Award | $ | ||||||||||
2021 Award | |||||||||||
2022 Award | |||||||||||
Total |
June 30, 2022 | December 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
Net unrealized losses on investment securities AFS | $ | ( | $ | ( | ||||
Three Months Ended | ||||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||
Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Expense | Net-of-Tax Amount | |||||||||||||||
Investment securities AFS: | (Dollars in thousands) | |||||||||||||||||||
Net unrealized holding (losses) gains arising during the period on investment securities AFS | $ | ( | $ | $ | ( | $ | $ | ( | $ | |||||||||||
Reclassification adjustment for net gains on investment securities AFS realized in net income | ( | ( | ||||||||||||||||||
Total other comprehensive (loss) income | $ | ( | $ | $ | ( | $ | $ | ( | $ |
Six Months Ended | ||||||||||||||||||||
June 30, 2022 | June 30, 2021 | |||||||||||||||||||
Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | Before-Tax Amount | Tax Benefit | Net-of-Tax Amount | |||||||||||||||
Investment securities AFS: | (Dollars in thousands) | |||||||||||||||||||
Net unrealized holding losses arising during the period on investment securities AFS | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( | ||||||||||
Reclassification adjustment for net gains on investment securities AFS realized in net income | ( | ( | ||||||||||||||||||
Total other comprehensive loss | $ | ( | $ | $ | ( | $ | ( | $ | $ | ( |
Three Months Ended | Six Months Ended | ||||||||||||||||
Reclassification Adjustment Description | June 30, 2022 | June 30, 2021 | June 30, 2022 | June 30, 2021 | Affected Line Item in Consolidated Statement of Income | ||||||||||||
(Dollars in thousands) | |||||||||||||||||
Investment securities AFS: | |||||||||||||||||
Net gains on investment securities AFS | ( | $ | ( | $ | Net gains on sales of investment securities available-for-sale | ||||||||||||
Tax benefit | Provision for income taxes | ||||||||||||||||
Total reclassifications | $ | ( | $ | $ | ( | $ | Net income |
Fair Value Measurements | ||||||||||||||
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||
June 30, 2022: | (Dollars in thousands) | |||||||||||||
Debt securities AFS: | ||||||||||||||
U.S. Government-sponsored enterprises | $ | $ | $ | $ | ||||||||||
Agency mortgage-backed | ||||||||||||||
State and political subdivisions | ||||||||||||||
Corporate | ||||||||||||||
Total debt securities | $ | $ | $ | $ | ||||||||||
Other investments: | ||||||||||||||
Mutual funds | $ | $ | $ | $ | ||||||||||
December 31, 2021: | ||||||||||||||
Debt securities AFS: | ||||||||||||||
U.S. Government-sponsored enterprises | $ | $ | $ | $ | ||||||||||
Agency mortgage-backed | ||||||||||||||
State and political subdivisions | ||||||||||||||
Corporate | ||||||||||||||
Total debt securities | $ | $ | $ | $ | ||||||||||
Other investments: | ||||||||||||||
Mutual funds | $ | $ | $ | $ | ||||||||||
June 30, 2022 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||
Interest bearing deposits in banks | |||||||||||||||||
Investment securities | |||||||||||||||||
Loans held for sale | |||||||||||||||||
Loans, net | |||||||||||||||||
Residential real estate | |||||||||||||||||
Construction real estate | |||||||||||||||||
Commercial real estate | |||||||||||||||||
Commercial | |||||||||||||||||
Consumer | |||||||||||||||||
Municipal | |||||||||||||||||
Accrued interest receivable | |||||||||||||||||
Nonmarketable equity securities | N/A | N/A | N/A | N/A | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | |||||||||||||||||
Noninterest bearing | $ | $ | $ | $ | $ | ||||||||||||
Interest bearing | |||||||||||||||||
Time | |||||||||||||||||
Subordinated notes | |||||||||||||||||
Accrued interest payable |
December 31, 2021 | |||||||||||||||||
Fair Value Measurements | |||||||||||||||||
Carrying Amount | Estimated Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | Significant Other Observable Inputs (Level 2) | Significant Unobservable Inputs (Level 3) | |||||||||||||
(Dollars in thousands) | |||||||||||||||||
Financial assets | |||||||||||||||||
Cash and cash equivalents | $ | $ | $ | $ | $ | ||||||||||||
Interest bearing deposits in banks | |||||||||||||||||
Investment securities | |||||||||||||||||
Loans held for sale | |||||||||||||||||
Loans, net | |||||||||||||||||
Residential real estate | |||||||||||||||||
Construction real estate | |||||||||||||||||
Commercial real estate | |||||||||||||||||
Commercial | |||||||||||||||||
Consumer | |||||||||||||||||
Municipal | |||||||||||||||||
Accrued interest receivable | |||||||||||||||||
Nonmarketable equity securities | N/A | N/A | N/A | N/A | |||||||||||||
Financial liabilities | |||||||||||||||||
Deposits | |||||||||||||||||
Noninterest bearing | $ | $ | $ | $ | $ | ||||||||||||
Interest bearing | |||||||||||||||||
Time | |||||||||||||||||
Subordinated notes | |||||||||||||||||
Accrued interest payable |
Three Months Ended or At June 30, | Six Months Ended or At June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
Return on average assets (1) | 0.94 | % | 1.06 | % | 0.88 | % | 1.05 | % | ||||||
Return on average equity (1) | 18.30 | % | 14.76 | % | 15.01 | % | 14.51 | % | ||||||
Net interest margin (1)(2) | 3.28 | % | 3.40 | % | 3.23 | % | 3.36 | % | ||||||
Efficiency ratio (3) | 69.48 | % | 68.89 | % | 71.21 | % | 67.94 | % | ||||||
Net interest spread (4) | 3.18 | % | 3.28 | % | 3.13 | % | 3.24 | % | ||||||
Loan to deposit ratio | 74.50 | % | 80.98 | % | 74.50 | % | 80.98 | % | ||||||
Net loan charge-offs to average loans not held for sale (1) | — | % | — | % | — | % | — | % | ||||||
Allowance for loan losses to loans not held for sale | 1.02 | % | 1.15 | % | 1.02 | % | 1.15 | % | ||||||
Nonperforming assets to total assets (5) | 0.13 | % | 0.56 | % | 0.13 | % | 0.56 | % | ||||||
Equity to assets | 5.03 | % | 7.73 | % | 5.03 | % | 7.73 | % | ||||||
Total capital to risk weighted assets | 14.33 | % | 13.47 | % | 14.33 | % | 13.47 | % | ||||||
Book value per share | $ | 13.34 | $ | 18.37 | $ | 13.34 | $ | 18.37 | ||||||
Basic earnings per share | $ | 0.65 | $ | 0.67 | $ | 1.20 | $ | 1.31 | ||||||
Diluted earnings per share | $ | 0.65 | $ | 0.66 | $ | 1.20 | $ | 1.30 | ||||||
Dividends paid per share | $ | 0.35 | $ | 0.33 | $ | 0.70 | $ | 0.66 | ||||||
Dividend payout ratio (6) | 53.85 | % | 49.25 | % | 58.33 | % | 50.38 | % |
Three Months Ended June 30, | ||||||||||||||||||||
2022 | 2021 | |||||||||||||||||||
Average Balance (1) | Interest Earned/ Paid | Average Yield/ Rate | Average Balance (1) | Interest Earned/ Paid | Average Yield/ Rate | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Average Assets: | ||||||||||||||||||||
Federal funds sold and overnight deposits | $ | 51,835 | $ | 94 | 0.72 | % | $ | 59,892 | $ | 14 | 0.09 | % | ||||||||
Interest bearing deposits in banks | 13,705 | 37 | 1.07 | % | 13,594 | 34 | 1.01 | % | ||||||||||||
Investment securities (2), (3) | 292,483 | 1,259 | 1.79 | % | 146,463 | 610 | 1.75 | % | ||||||||||||
PPP loans, net (4) | 4,884 | 154 | 12.63 | % | 68,223 | 888 | 5.22 | % | ||||||||||||
Loans, net (2), (5) | 830,876 | 8,856 | 4.30 | % | 776,010 | 8,348 | 4.36 | % | ||||||||||||
Nonmarketable equity securities | 888 | 4 | 2.00 | % | 1,156 | 4 | 1.48 | % | ||||||||||||
Total interest earning assets (2) | 1,194,671 | 10,404 | 3.53 | % | 1,065,338 | 9,898 | 3.77 | % | ||||||||||||
Cash and due from banks | 4,321 | 4,676 | ||||||||||||||||||
Premises and equipment | 21,200 | 21,825 | ||||||||||||||||||
Other assets | 22,763 | 36,915 | ||||||||||||||||||
Total assets | $ | 1,242,955 | $ | 1,128,754 | ||||||||||||||||
Average Liabilities and Stockholders' Equity: | ||||||||||||||||||||
Interest bearing checking accounts | $ | 282,679 | 154 | 0.22 | % | $ | 248,878 | 156 | 0.25 | % | ||||||||||
Savings/money market accounts | 442,304 | 326 | 0.30 | % | 422,592 | 509 | 0.48 | % | ||||||||||||
Time deposits | 103,386 | 111 | 0.43 | % | 119,941 | 259 | 0.87 | % | ||||||||||||
Borrowed funds and other liabilities | 6 | — | 0.47 | % | 7,166 | 55 | 3.02 | % | ||||||||||||
Subordinated notes | 16,184 | 142 | 3.52 | % | — | — | — | % | ||||||||||||
Total interest bearing liabilities | 844,559 | 733 | 0.35 | % | 798,577 | 979 | 0.49 | % | ||||||||||||
Noninterest bearing deposits | 320,828 | 239,971 | ||||||||||||||||||
Other liabilities | 13,491 | 9,124 | ||||||||||||||||||
Total liabilities | 1,178,878 | 1,047,672 | ||||||||||||||||||
Stockholders' equity | 64,077 | 81,082 | ||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,242,955 | $ | 1,128,754 | ||||||||||||||||
Net interest income | $ | 9,671 | $ | 8,919 | ||||||||||||||||
Net interest spread (2) | 3.18 | % | 3.28 | % | ||||||||||||||||
Net interest margin (2) | 3.28 | % | 3.40 | % |
Six Months Ended June 30, | |||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||
Average Balance (1) | Interest Earned/ Paid | Average Yield/ Rate | Average Balance (1) | Interest Earned/ Paid | Average Yield/ Rate | ||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||
Average Assets: | |||||||||||||||||||||||
Federal funds sold and overnight deposits | $ | 51,493 | $ | 113 | 0.44 | % | $ | 71,310 | $ | 33 | 0.09 | % | |||||||||||
Interest bearing deposits in banks | 13,532 | 70 | 1.04 | % | 13,779 | 71 | 1.04 | % | |||||||||||||||
Investment securities (2), (3) | 289,764 | 2,453 | 1.76 | % | 136,901 | 1,165 | 1.79 | % | |||||||||||||||
PPP loans, net (4) | 7,120 | 465 | 13.16 | % | 70,906 | 1,743 | 4.96 | % | |||||||||||||||
Loans, net (2), (5) | 813,382 | 17,019 | 4.25 | % | 757,612 | 16,378 | 4.41 | % | |||||||||||||||
Nonmarketable equity securities | 891 | 10 | 2.24 | % | 1,153 | 8 | 1.47 | % | |||||||||||||||
Total interest earning assets (2) | 1,176,182 | 20,130 | 3.49 | % | 1,051,661 | 19,398 | 3.77 | % | |||||||||||||||
Cash and due from banks | 4,506 | 4,884 | |||||||||||||||||||||
Premises and equipment | 21,358 | 20,916 | |||||||||||||||||||||
Other assets | 29,329 | 37,163 | |||||||||||||||||||||
Total assets | $ | 1,231,375 | $ | 1,114,624 | |||||||||||||||||||
Average Liabilities and Stockholders' Equity: | |||||||||||||||||||||||
Interest bearing checking accounts | $ | 281,256 | 302 | 0.22 | % | $ | 241,649 | 303 | 0.25 | % | |||||||||||||
Savings/money market accounts | 443,664 | 680 | 0.31 | % | 417,956 | 1,058 | 0.51 | % | |||||||||||||||
Time deposits | 104,869 | 230 | 0.44 | % | 126,741 | 610 | 0.97 | % | |||||||||||||||
Borrowed funds and other liabilities | 3 | — | 0.47 | % | 7,165 | 109 | 3.02 | % | |||||||||||||||
Subordinated debentures and notes | 16,179 | 284 | 3.54 | % | — | — | — | % | |||||||||||||||
Total interest bearing liabilities | 845,971 | 1,496 | 0.36 | % | 793,511 | 2,080 | 0.53 | % | |||||||||||||||
Noninterest bearing deposits | 301,123 | 230,651 | |||||||||||||||||||||
Other liabilities | 12,162 | 9,599 | |||||||||||||||||||||
Total liabilities | 1,159,256 | 1,033,761 | |||||||||||||||||||||
Stockholders' equity | 72,119 | 80,863 | |||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 1,231,375 | $ | 1,114,624 | |||||||||||||||||||
Net interest income | $ | 18,634 | $ | 17,318 | |||||||||||||||||||
Net interest spread (2) | 3.13 | % | 3.24 | % | |||||||||||||||||||
Net interest margin (2) | 3.23 | % | 3.36 | % |
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Net interest income, as presented | $ | 9,671 | $ | 8,919 | $ | 18,634 | $ | 17,318 | ||||||
Effect of tax-exempt interest | ||||||||||||||
Investment securities | 49 | 31 | 98 | 61 | ||||||||||
Loans | 60 | 89 | 122 | 180 | ||||||||||
Net interest income, tax equivalent | $ | 9,780 | $ | 9,039 | $ | 18,854 | $ | 17,559 |
Three Months Ended June 30, 2022 Compared to Three Months Ended June 30, 2021 Increase/(Decrease) Due to Change In | Six Months Ended June 30, 2022 Compared to Six Months Ended June 30, 2021 Increase/(Decrease) Due to Change In | |||||||||||||||||||
Volume | Rate | Net | Volume | Rate | Net | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Interest earning assets: | ||||||||||||||||||||
Federal funds sold and overnight deposits | $ | (3) | $ | 83 | $ | 80 | $ | (11) | $ | 91 | $ | 80 | ||||||||
Interest bearing deposits in banks | 1 | 2 | 3 | (1) | — | (1) | ||||||||||||||
Investment securities | 635 | 14 | 649 | 1,309 | (21) | 1,288 | ||||||||||||||
PPP loans, net | (1,287) | 553 | (734) | (2,478) | 1,200 | (1,278) | ||||||||||||||
Loans (excluding PPP loans), net | 604 | (96) | 508 | 1,218 | (577) | 641 | ||||||||||||||
Nonmarketable equity securities | (1) | 1 | — | (2) | 4 | 2 | ||||||||||||||
Total interest earning assets | $ | (51) | $ | 557 | $ | 506 | $ | 35 | $ | 697 | $ | 732 | ||||||||
Interest bearing liabilities: | ||||||||||||||||||||
Interest bearing checking accounts | $ | 19 | $ | (21) | $ | (2) | $ | 45 | $ | (46) | $ | (1) | ||||||||
Savings/money market accounts | 23 | (206) | (183) | 61 | (439) | (378) | ||||||||||||||
Time deposits | (32) | (116) | (148) | (91) | (289) | (380) | ||||||||||||||
Borrowed funds | (29) | (26) | (55) | (59) | (50) | (109) | ||||||||||||||
Subordinated notes | 142 | — | 142 | 284 | — | 284 | ||||||||||||||
Total interest bearing liabilities | $ | 123 | $ | (369) | $ | (246) | $ | 240 | $ | (824) | $ | (584) | ||||||||
Net change in net interest income | $ | (174) | $ | 926 | $ | 752 | $ | (205) | $ | 1,521 | $ | 1,316 |
For The Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | $ Variance | % Variance | 2022 | 2021 | $ Variance | % Variance | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Trust income | $ | 217 | $ | 198 | $ | 19 | 9.6 | $ | 426 | $ | 383 | $ | 43 | 11.2 | ||||||||||||
Service fees | 1,738 | 1,581 | 157 | 9.9 | 3,373 | 3,104 | 269 | 8.7 | ||||||||||||||||||
Net gains on sales of loans held for sale | 286 | 1,151 | (865) | (75.2) | 300 | 2,045 | (1,745) | (85.3) | ||||||||||||||||||
Income from Company-owned life insurance | 106 | 70 | 36 | 51.4 | 289 | 138 | 151 | 109.4 | ||||||||||||||||||
Expense from MSRs, net | (114) | 79 | (193) | (244.3) | (289) | (46) | (243) | (201.7) | ||||||||||||||||||
Other income | 69 | 45 | 24 | 53.3 | 150 | 77 | 73 | 94.8 | ||||||||||||||||||
Net (losses) gains on other investments | (142) | 15 | (157) | (1,046.7) | (60) | 59 | (119) | (201.7) | ||||||||||||||||||
Net gains on sales of investment securities AFS | 5 | — | 5 | — | 31 | — | 31 | — | ||||||||||||||||||
Total noninterest income | $ | 2,165 | $ | 3,139 | $ | (974) | (31.0) | $ | 4,220 | $ | 5,760 | $ | (1,540) | (26.7) |
For The Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||||||||||||||
2022 | 2021 | $ Variance | % Variance | 2022 | 2021 | $ Variance | % Variance | |||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||||||||
Salaries and wages | $ | 3,520 | $ | 3,553 | $ | (33) | (0.9) | $ | 6,930 | $ | 6,636 | $ | 294 | 4.4 | ||||||||||||
Employee benefits | 1,295 | 1,203 | 92 | 7.6 | 2,600 | 2,372 | 228 | 9.6 | ||||||||||||||||||
Occupancy expense, net | 462 | 527 | (65) | (12.3) | 989 | 1,004 | (15) | (1.5) | ||||||||||||||||||
Equipment expense | 934 | 872 | 62 | 7.1 | 1,850 | 1,670 | 180 | 10.8 | ||||||||||||||||||
Professional fees | 217 | 322 | (105) | (32.6) | 433 | 518 | (85) | (16.4) | ||||||||||||||||||
FDIC insurance assessment | 146 | 200 | (54) | (27.0) | 273 | 356 | (83) | (23.3) | ||||||||||||||||||
Other loan related expenses | 97 | 124 | (27) | (21.8) | 170 | 208 | (38) | (18.3) | ||||||||||||||||||
Vermont franchise tax | 268 | 240 | 28 | 11.7 | 529 | 463 | 66 | 14.3 | ||||||||||||||||||
Donations | 63 | 48 | 15 | 31.3 | 102 | 72 | 30 | 41.7 | ||||||||||||||||||
Travel and entertainment | 30 | 19 | 11 | 57.9 | 63 | 36 | 27 | 75.0 | ||||||||||||||||||
Amortization of core deposit intangible | — | 28 | (28) | (100.0) | — | 71 | (71) | (100.0) | ||||||||||||||||||
Other expenses | 1,263 | 1,253 | 10 | 0.8 | 2,470 | 2,436 | 34 | 1.4 | ||||||||||||||||||
Total noninterest expense | $ | 8,295 | $ | 8,389 | $ | (94) | (1.1) | $ | 16,409 | $ | 15,842 | $ | 567 | 3.6 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Loan Class | Amount | Percent | Amount | Percent | ||||||||||
(Dollars in thousands) | ||||||||||||||
Residential real estate | $ | 304,135 | 37.0 | $ | 246,827 | 30.8 | ||||||||
Construction real estate | 81,929 | 10.0 | 65,149 | 8.1 | ||||||||||
Commercial real estate | 365,430 | 44.5 | 344,816 | 43.1 | ||||||||||
Commercial | 44,514 | 5.4 | 49,788 | 6.2 | ||||||||||
Consumer | 2,207 | 0.3 | 2,376 | 0.3 | ||||||||||
Municipal | 19,738 | 2.4 | 78,094 | 9.8 | ||||||||||
Loans held for sale | 3,820 | 0.4 | 13,829 | 1.7 | ||||||||||
Total loans | 821,773 | 100.0 | 800,879 | 100.0 | ||||||||||
Allowance for loan losses | (8,340) | (8,336) | ||||||||||||
Unamortized net loan costs | 1,193 | 705 | ||||||||||||
Net loans and loans held for sale | $ | 814,626 | $ | 793,248 |
June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||
(Dollars in thousands) | |||||||||||
Nonaccrual loans | $ | 1,416 | $ | 4,650 | $ | 5,752 | |||||
Loans past due 90 days or more and still accruing interest | 109 | 98 | 176 | ||||||||
Total nonperforming loans and total nonperforming assets | $ | 1,525 | $ | 4,748 | $ | 5,928 | |||||
Guarantees of U.S. or state government agencies on the above nonperforming loans | $ | 59 | $ | 113 | $ | 165 | |||||
TDR loans | $ | 1,888 | $ | 2,215 | $ | 2,766 | |||||
Allowance for loan losses | $ | 8,340 | $ | 8,336 | $ | 8,505 | |||||
Net recoveries | $ | (4) | $ | (65) | $ | (9) | |||||
Total loans outstanding | $ | 821,773 | $ | 800,879 | $ | 783,623 | |||||
Total average loans outstanding | $ | 820,502 | $ | 808,894 | $ | 828,518 |
June 30, 2022 | December 31, 2021 | June 30, 2021 | |||||||||
(Dollars in thousands) | |||||||||||
Allowance for loan losses to total loans outstanding | 1.01 | % | 1.04 | % | 1.09 | % | |||||
Allowance for loan losses to nonperforming loans | 546.89 | % | 175.57 | % | 143.47 | % | |||||
Allowance for loan losses to nonaccrual loans | 588.98 | % | 179.27 | % | 147.86 | % | |||||
Nonperforming loans to total loans | 0.19 | % | 0.59 | % | 0.76 | % | |||||
Nonperforming assets to total assets | 0.13 | % | 0.39 | % | 0.56 | % | |||||
Nonaccrual loans to total loans | 0.17 | % | 0.58 | % | 0.73 | % | |||||
Delinquent loans (30 days to nonaccruing) to total loans | 0.29 | % | 0.82 | % | 0.83 | % | |||||
Net (recoveries) charge-offs to total average loans (annualized) | — | % | (0.01) | % | — | % | |||||
Residential real estate | — | % | (0.03) | % | (0.01) | % | |||||
Net (recoveries) charge-offs | $ | — | $ | (66) | $ | (8) | |||||
Total average loans | $ | 280,287 | $ | 243,212 | $ | 239,111 | |||||
Construction real estate | — | % | — | % | — | % | |||||
Net (recoveries) charge-offs | $ | — | $ | — | $ | — | |||||
Total average loans | $ | 57,818 | $ | 62,678 | $ | 62,149 | |||||
Commercial real estate | — | % | — | % | — | % | |||||
Net (recoveries) charge-offs | $ | — | $ | — | $ | — | |||||
Total average loans | $ | 357,031 | $ | 324,101 | $ | 317,431 | |||||
Commercial | — | % | — | % | — | % | |||||
Net (recoveries) charge-offs | $ | (1) | $ | — | $ | — | |||||
Total average loans | $ | 45,280 | $ | 88,626 | $ | 111,983 | |||||
Consumer | (0.26) | % | 0.04 | % | (0.08) | % | |||||
Net (recoveries) charge-offs | $ | (3) | $ | 1 | $ | (1) | |||||
Total average loans | $ | 2,297 | $ | 2,608 | $ | 2,595 | |||||
Municipal | — | % | — | % | — | % | |||||
Net (recoveries) charge-offs | $ | — | $ | — | $ | — | |||||
Total average loans | $ | 77,789 | $ | 87,669 | $ | 95,249 | |||||
For the Three Months Ended June 30, | For the Six Months Ended June 30, | |||||||||||||
2022 | 2021 | 2022 | 2021 | |||||||||||
(Dollars in thousands) | ||||||||||||||
Balance at beginning of period | $ | 8,336 | $ | 8,429 | $ | 8,336 | $ | 8,271 | ||||||
Charge-offs | (1) | — | (2) | — | ||||||||||
Recoveries | 5 | 1 | 6 | 9 | ||||||||||
Net recoveries | 4 | 1 | 4 | 9 | ||||||||||
Provision for loan losses | — | 75 | — | 225 | ||||||||||
Balance at end of period | $ | 8,340 | $ | 8,505 | $ | 8,340 | $ | 8,505 |
June 30, 2022 | December 31, 2021 | |||||||||||||
Amount | Percent | Amount | Percent | |||||||||||
(Dollars in thousands) | ||||||||||||||
Residential real estate | $ | 2,239 | 37.2 | $ | 2,068 | 31.4 | ||||||||
Construction real estate | 957 | 10.0 | 837 | 8.3 | ||||||||||
Commercial real estate | 4,004 | 44.7 | 4,122 | 43.8 | ||||||||||
Commercial | 318 | 5.4 | 275 | 6.3 | ||||||||||
Consumer | 10 | 0.3 | 11 | 0.3 | ||||||||||
Municipal | 27 | 2.4 | 86 | 9.9 | ||||||||||
Unallocated | 785 | — | 937 | — | ||||||||||
Total | $ | 8,340 | 100.0 | $ | 8,336 | 100.0 |
Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | |||||||||||||||||||
Average Amount | Percent of Total Deposits | Average Rate | Average Amount | Percent of Total Deposits | Average Rate | |||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Nontime deposits: | ||||||||||||||||||||
Noninterest bearing deposits | $ | 301,123 | 26.6 | — | $ | 230,651 | 22.7 | — | ||||||||||||
Interest bearing checking accounts | 281,256 | 24.9 | 0.22 | % | 241,649 | 23.8 | 0.25 | % | ||||||||||||
Money market accounts | 257,125 | 22.7 | 0.51 | % | 261,514 | 25.7 | 0.77 | % | ||||||||||||
Savings accounts | 186,539 | 16.5 | 0.04 | % | 156,442 | 15.4 | 0.07 | % | ||||||||||||
Total nontime deposits | 1,026,043 | 90.7 | 0.19 | % | 890,256 | 87.6 | 0.31 | % | ||||||||||||
Total time deposits | 104,869 | 9.3 | 0.44 | % | 126,741 | 12.4 | 0.97 | % | ||||||||||||
Total deposits | $ | 1,130,912 | 100.0 | 0.22 | % | $ | 1,016,997 | 100.0 | 0.39 | % |
June 30, 2022 | December 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
Within 3 months | $ | 3,350 | $ | 4,249 | ||||
3 to 6 months | 5,448 | 5,576 | ||||||
6 to 12 months | 4,323 | 4,536 | ||||||
Over 12 months | 1,759 | 1,862 | ||||||
$ | 14,880 | $ | 16,223 |
June 30, 2022 | December 31, 2021 | |||||||
(Dollars in thousands) | ||||||||
Commitments to originate loans | $ | 131,665 | $ | 48,910 | ||||
Unused lines of credit | 185,474 | 168,442 | ||||||
Standby and commercial letters of credit | 1,805 | 2,158 | ||||||
Credit card arrangements | 180 | 170 | ||||||
FHLB Mortgage Partnership Finance credit enhancement obligation, net | 826 | 818 | ||||||
Commitment to purchase investment in a real estate limited partnership | — | 4,574 | ||||||
Total | $ | 319,950 | $ | 225,072 |
Actual | For Capital Adequacy Purposes | To Be Well Capitalized Under Prompt Corrective Action Provisions | ||||||||||||||||||
As of June 30, 2022 | Amount | Ratio | Amount | Ratio | Amount | Ratio | ||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
Company: | ||||||||||||||||||||
Total capital to risk weighted assets | $ | 110,648 | 14.33 | % | $ | 61,771 | 8.00 | % | N/A | N/A | ||||||||||
Tier I capital to risk weighted assets | 86,120 | 11.16 | % | 46,301 | 6.00 | % | N/A | N/A | ||||||||||||
Common Equity Tier 1 to risk weighted assets | 86,120 | 11.16 | % | 34,726 | 4.50 | % | N/A | N/A | ||||||||||||
Tier I capital to average assets | 86,120 | 6.78 | % | 50,808 | 4.00 | % | N/A | N/A | ||||||||||||
Union: | ||||||||||||||||||||
Total capital to risk weighted assets | $ | 110,114 | 14.28 | % | $ | 61,689 | 8.00 | % | $ | 77,111 | 10.00 | % | ||||||||
Tier I capital to risk weighted assets | 101,774 | 13.20 | % | 46,261 | 6.00 | % | 61,681 | 8.00 | % | |||||||||||
Common Equity Tier 1 to risk weighted assets | 101,774 | 13.20 | % | 34,696 | 4.50 | % | 50,116 | 6.50 | % | |||||||||||
Tier I capital to average assets | 101,774 | 8.02 | % | 50,760 | 4.00 | % | 63,450 | 5.00 | % |
Issuer Purchases of Equity Securities | ||||||||||||||
Period | Total Number of Shares Purchased | Average Price Paid per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (1) | Maximum Number of Shares that May Yet be Purchased Under the Plans or Program (1) | ||||||||||
April 2022 | — | — | — | 2,500 | ||||||||||
May 2022 | 150 | $30.15 | 150 | 2,350 | ||||||||||
June 2022 | — | — | — | — |
31.1 | Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||
31.2 | Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | ||||
32.1 | Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | ||||
32.2 | Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | ||||
101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) the unaudited consolidated balance sheets, (ii) the unaudited consolidated statements of income for the three and six months ended June 30, 2022 and 2021, (iii) the unaudited consolidated statements of comprehensive income for the three and six months ended June 30, 2022 and 2021, (iv) the unaudited consolidated statements of changes in stockholders' equity, (iv) the unaudited consolidated statements of cash flows and (v) related notes. | ||||
104 | Cover page interactive data file (embedded within exhibit 101). |
Union Bankshares, Inc. | ||||||||
August 15, 2022 | /s/ David S. Silverman | |||||||
David S. Silverman | ||||||||
Director, President and Chief Executive Officer | ||||||||
August 15, 2022 | /s/ Karyn J. Hale | |||||||
Karyn J. Hale | ||||||||
Chief Financial Officer | ||||||||
(Principal Financial Officer) |
Certification of the Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of the Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002. | |||||
Certification of the Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |||||
Certification of the Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.* | |||||
101 | The following materials from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2022 formatted in Inline eXtensible Business Reporting Language (iXBRL): (i) the unaudited consolidated balance sheets, (ii) the unaudited consolidated statements of income for the three and six months ended June 30, 2022 and 2021, (iii) the unaudited consolidated statements of comprehensive income for the three and six months ended June 30, 2022 and 2021, (iv) the unaudited consolidated statements of changes in stockholders' equity, (iv) the unaudited consolidated statements of cash flows and (v) related notes. | ||||
104 | Cover page interactive data file (embedded within exhibit 101). |
/s/ David S. Silverman | |||||
David S. Silverman Director, President and Chief Executive Officer (Principal Executive Officer) |
/s/ Karyn J. Hale | |||||
Karyn J. Hale Chief Financial Officer (Principal Financial Officer) |
/s/ David S. Silverman | |||||
David S. Silverman Chief Executive Officer |
/s/ Karyn J. Hale | |||||
Karyn J. Hale Chief Financial Officer |
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Common stock, par value (in usd per share) | $ 2.00 | $ 2.00 |
Common stock, shares authorized (in shares) | 7,500,000 | 7,500,000 |
Common stock, shares issued (in shares) | 4,969,972 | 4,967,093 |
Treasury stock, shares (in shares) | 475,160 | 473,438 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE (LOSS) INCOME (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 2,931 | $ 2,991 | $ 5,413 | $ 5,867 |
Investment securities available-for-sale: | ||||
Net unrealized holding (losses) gains arising during the period on investment securities available-for-sale | (10,969) | 920 | (26,822) | (1,635) |
Reclassification adjustment for net gains on sales of investment securities available-for-sale realized in net income | (4) | 0 | (25) | 0 |
Total other comprehensive (loss) income | (10,973) | 920 | (26,847) | (1,635) |
Total comprehensive (loss) income | $ (8,042) | $ 3,911 | $ (21,434) | $ 4,232 |
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (Parenthetical) - $ / shares |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Statement of Stockholders' Equity [Abstract] | ||||
Cash dividends declared (in usd per share) | $ 0.35 | $ 0.33 | $ 0.70 | $ 0.66 |
Basis of Presentation |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of June 30, 2022, and for the three and six months ended June 30, 2022 and 2021, have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as amended by Amendment No. 1 on Form 10-K/A (2021 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2021 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2022, or any future interim period. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this report, as permitted for smaller reporting companies. Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the current year presentation. In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q.
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Legal Contingencies |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Legal Contingencies | Legal ContingenciesIn the normal course of business, the Company is involved in various legal and other proceedings. In the opinion of management, any liability resulting from such proceedings is not expected to have a material adverse effect on the Company’s consolidated financial condition or results of operations. |
Per Share Information |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Per Share Information | Per Share Information The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the three and six months ended June 30, 2022 and 2021:
(1)Dilutive effect of stock based awards represents the effect of the assumed exercise of stock options (2021 only) and vesting of restricted stock units. Unvested awards do not have dividend or dividend equivalent rights.
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Recent Accounting Pronouncements |
6 Months Ended |
---|---|
Jun. 30, 2022 | |
Accounting Standards Update and Change in Accounting Principle [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under this guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The guidance in the ASU, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was to become effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. In October 2019, the FASB approved amendments to delay the effective date of the ASU to fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. The Company did not choose to early adopt the ASU. As the Company is a smaller reporting company, the ASU will become effective for the Company beginning with the 2023 fiscal year. The Company has established a CECL implementation team and developed a transition project plan. The Company utilizes a software package for its current calculation of the allowance for loan losses that will also be utilized for CECL implementation. Historical data has been compiled and continues to be collected and training is ongoing surrounding CECL implementation and methodologies. In addition, the Company is conducting parallel calculations under the existing incurred loss model and the CECL model throughout 2022. The measures will facilitate the eventual implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and has issued subsequent amendments thereto, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The transition away from LIBOR is not expected to have a material impact on the Company's consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which eliminates the accounting guidance for TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires disclosure of current period charge offs by year of origination for loans and leases. ASU No. 2022-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. ASU No. 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements.
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Investment Securities |
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investment Securities | Investment Securities Debt securities AFS as of the balance sheet dates consisted of the following:
There were no investment securities HTM at June 30, 2022 or December 31, 2021. Investment securities AFS with carrying amounts of $479 thousand and $608 thousand were pledged as collateral for public unit deposits or for other purposes as required or permitted by law at June 30, 2022 and December 31, 2021, respectively. The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of June 30, 2022 were as follows:
Actual maturities may differ for certain debt securities that may be called by the issuer prior to the contractual maturity. Actual maturities usually differ from contractual maturities on agency MBS because the mortgages underlying the securities may be prepaid, usually without any penalties. Therefore, these agency MBS are shown separately and are not included in the contractual maturity categories in the above maturity summary. Information pertaining to all debt securities AFS with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists. A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: •The length of time, and extent to which, the fair value has been less than the amortized cost; •Adverse conditions specifically related to the security, industry, or geographic area; •The historical and implied volatility of the fair value of the security; •The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; •Failure of the issuer of the security to make scheduled interest or principal payments; •Any changes to the rating of the security by a rating agency; •Recoveries or additional declines in fair value subsequent to the balance sheet date; and •The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty. The Company has the ability to hold the investment securities that had unrealized losses at June 30, 2022 and December 31, 2021 for the foreseeable future. The decline in value is the result of market conditions and not attributable to credit quality in the investment securities and no declines were deemed by management to be OTT. There were no sales of AFS securities during the three and six months ended June 30, 2021. The following table presents the proceeds from sales and calls resulting in gross realized gains and gross realized losses from the disposition of AFS securities for the three and six months ended June 30, 2022:
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Loans |
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Receivables [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans. The composition of Net loans as of the balance sheet dates was as follows:
There were 43 and 154 PPP loans totaling $3.3 million and $13.6 million classified as commercial loans as of June 30, 2022 and December 31, 2021, respectively. As of June 30, 2022 and December 31, 2021, there were PPP deferred origination fees of $129 thousand and $558 thousand, respectively, remaining to be amortized into interest income in future periods, over the lives of the respective loans. PPP loan origination fees of $141 thousand and $428 thousand were recognized in earnings during the three and six months ended June 30, 2022, respectively and $715 thousand and $1.4 million were recognized during the three and six months ended June 30, 2021, respectively. Qualifying residential first mortgage loans and certain commercial real estate loans with an aggregate carrying value of $280.0 million and $224.4 million were pledged as collateral for borrowings from the FHLB under a blanket lien at June 30, 2022 and December 31, 2021, respectively. A summary of current, past due and nonaccrual loans as of the balance sheet dates follows:
There was one residential real estate loan totaling $28 thousand in process of foreclosure at June 30, 2022 and no loans in process of foreclosure at December 31, 2021. Aggregate interest on nonaccrual loans not recognized was $437 thousand as of June 30, 2022 and $504 thousand as of December 31, 2021.
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Allowance for Loan Losses and Credit Quality |
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Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the second quarter of 2022. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: •Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. •Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. •Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. •Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. •Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. •Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. Management increased certain economic qualitative factors utilized to estimate the ALL during 2020 at the onset of the COVID-19 pandemic. During 2021, the economic qualitative reserve factor assigned to each loan portfolio in the ALL estimate was decreased due to continued indications of economic improvement. COVID-19 restrictions were lifted in June 2021 and the majority of borrowers that had executed loan modifications due to COVID-19 were no longer subject to modified terms. Based on these continued improving economic trends, the economic qualitative reserve factor assigned to all loan portfolios, except the municipal loan portfolio, was decreased 5 bps during both the first and second quarters of 2022. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan. Changes in the ALL, by class of loans, for the three and six months ended June 30, 2022 and 2021 were as follows:
The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
Risk and collateral ratings are assigned to loans and are subject to ongoing monitoring by lending and credit personnel with such ratings updated annually or more frequently if warranted. The following is an overview of the Company's loan rating system: 1-3 Rating - Pass Risk-rating grades "1" through "3" comprise those loans ranging from those with lower than average credit risk, defined as borrowers with high liquidity, excellent financial condition, strong management, favorable industry trends or loans secured by highly liquid assets, through those with marginal credit risk, defined as borrowers that, while creditworthy, exhibit some characteristics requiring special attention by the account officer. 4-4.5 Rating - Satisfactory/Monitor Borrowers exhibit potential credit weaknesses or downward trends warranting management's attention. While potentially weak, these borrowers are currently marginally acceptable; no loss of principal or interest is envisioned. When warranted, these credits may be monitored on the watch list. 5-7 Rating - Substandard Borrowers exhibit well defined weaknesses that jeopardize the orderly liquidation of debt. The loan may be inadequately protected by the net worth and paying capacity of the obligor and/or the underlying collateral is inadequate. The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates:
The following tables provide information with respect to impaired loans by class of loan as of and for the three and six months ended June 30, 2022 and June 30, 2021:
____________________ (1)Does not reflect government guaranties on impaired loans as of June 30, 2022 totaling $347 thousand.
____________________ (1)Does not reflect government guaranties on impaired loans as of June 30, 2021 totaling $354 thousand. The following table provides information with respect to impaired loans by class of loan as of December 31, 2021:
____________________ (1)Does not reflect government guaranties on impaired loans as of December 31, 2021 totaling $423 thousand. The following is a summary of TDR loans by class of loan as of the balance sheet dates:
The TDR loans above represent loan modifications in which a concession was provided to the borrower, including due date extensions, maturity date extensions, interest rate reductions or the forgiveness of accrued interest. Troubled loans that are restructured and meet established thresholds are classified as impaired and a specific reserve amount is allocated to the ALL on the basis of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. There was no new TDR activity for the three and six months ended June 30, 2022 or 2021. There were no TDR loans modified within the previous twelve months that subsequently defaulted during the three and six months ended June 30, 2022 or 2021. TDR loans are considered defaulted at 90 days past due. In March 2020, the federal banking agencies issued guidance, confirmed by the FASB, that certain short-term modifications made to loans to borrowers affected by the COVID-19 pandemic and government shutdown orders would not be considered TDRs under specified circumstances. As of June 30, 2022, one loan with an outstanding loan balance of $137 thousand remained subject to modified terms and carried accrued interest of $1 thousand. At June 30, 2022 and December 31, 2021, the Company was not committed to lend any additional funds to borrowers whose loans were nonperforming, impaired or restructured.
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Stock Based Compensation |
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Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock Based Compensation | Stock Based Compensation Under the Union Bankshares, Inc. 2014 Equity Incentive Plan, as amended in May 2022, a total of 150,000 shares of the Company’s common stock have been reserved for equity awards of incentive stock options, nonqualified stock options, restricted stock and RSUs to eligible officers and (except for awards of incentive stock options) nonemployee directors. Shares available for issuance of awards under the 2014 Equity Plan consist of unissued shares of the Company’s common stock and/or shares held in treasury. As of June 30, 2022, there were outstanding grants of RSUs under the 2014 Equity Plan as noted in the table below. RSUs. Each outstanding RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The general terms of the awards are described in the Company's 2021 Annual Report. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. The following table summarizes the RSUs awarded to Company executives in 2020, 2021 and 2022, and the number of such RSUs remaining unvested as of June 30, 2022:
Unrecognized compensation expense related to the unvested RSUs as of June 30, 2022 and 2021 was $745 thousand and $396 thousand, respectively, and $317 thousand as of December 31, 2021. On May 18, 2022, the Company's board of directors, as a component of total director compensation, granted an aggregate of 1,323 RSUs to the Company's non-employee directors. Each RSU represents the right to receive one share of the Company's common stock upon satisfaction of applicable vesting conditions. The RSUs will vest in May 2023, subject to continued board service through the vesting date, other than in the case of the director's death or disability. Prior to vesting, the RSUs do not earn dividends or dividend equivalents, nor do they bear any voting rights. Unrecognized director compensation expense related to the unvested RSUs as of June 30, 2022 was $35 thousand.
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Subordinated Notes |
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Jun. 30, 2022 | |
Debt Disclosure [Abstract] | |
Subordinated Notes | Subordinated Notes In August 2021, the Company completed the private placement of $16.5 million in aggregate principal amount of fixed-to-floating rate subordinated notes due 2031 (the "Notes") to certain qualified institutional buyers and accredited investors. The Notes initially bear interest, payable semi-annually, at the rate of 3.25% per annum, until September 1, 2026. From and including September 1, 2026, the interest rate applicable to the outstanding principal amount due will reset quarterly to the then current three-month secured overnight financing rate (SOFR) plus 263 basis points. The Company may, at its option, beginning with the interest payment date of September 1, 2026 but not generally prior thereto, and on any scheduled interest payment date thereafter, redeem the Notes, in whole or in part. The Notes qualify as Tier 2 capital instruments for the Company under bank regulatory guidelines. The Company used the proceeds to provide additional capital support to the Company's wholly-owned subsidiary, Union Bank, to support growth and for other general corporate purposes. The unamortized issuance costs of the Notes were $312 thousand and $329 thousand at June 30, 2022 and December 31, 2021, respectively. For the three and six months ended June 30, 2022, $9 thousand and $17 thousand in issuance costs were recorded in interest expense. The Notes are presented net of unamortized issuance costs in the consolidated balance sheets.
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Other Comprehensive Loss |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Comprehensive Loss | Other Comprehensive LossAccounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. As of the balance sheet dates, the components of Accumulated OCI, net of tax, were:
The following tables disclose the tax effects allocated to each component of OCI for the three and six months ended June 30:
The following table discloses information concerning reclassification adjustments from OCI for the three and six months ended June 30, 2022 and 2021:
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Fair Value Measurement |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurement | Fair Value MeasurementThe Company utilizes FASB ASC Topic 820, Fair Value Measurement, as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: •Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; •Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; •Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS: Certain U.S. Treasury notes have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of the Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds: Mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. Assets measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021, segregated by fair value hierarchy level, are summarized below:
There were no transfers in or out of Levels 1 and 2 during the three and six months ended June 30, 2022 or the year ended December 31, 2021, nor were there any Level 3 assets at any time during either period. Certain other assets and liabilities are measured at fair value on a nonrecurring basis, that is, the instruments are not measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances (for example, when there is evidence of impairment). Assets and liabilities measured at fair value on a nonrecurring basis in periods after initial recognition, such as collateral-dependent impaired loans, MSRs and OREO, were not considered material at June 30, 2022 or December 31, 2021. The Company has not elected to apply the fair value method to any financial assets or liabilities other than those situations where other accounting pronouncements require fair value measurements. FASB ASC Topic 825, Financial Instruments, requires disclosure of the estimated fair value of financial instruments. Fair value is best determined based upon quoted market prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Management’s estimates and assumptions are inherently subjective and involve uncertainties and matters of significant judgment. Changes in assumptions could dramatically affect the estimated fair values. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument. Certain financial instruments and all nonfinancial instruments may be excluded from disclosure requirements. Thus, the aggregate fair value amounts presented may not necessarily represent the actual underlying fair value of such instruments of the Company. As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows:
The carrying amounts in the preceding tables are included in the consolidated balance sheets under the applicable captions. Accrued interest receivable and nonmarketable equity securities are included in Other assets in the consolidated balance sheets.
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Subsequent Events |
6 Months Ended |
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Jun. 30, 2022 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events Subsequent events represent events or transactions occurring after the balance sheet date but before the financial statements are issued. Financial statements are considered “issued” when they are widely distributed to shareholders and others for general use and reliance in a form and format that complies with GAAP. Events occurring subsequent to June 30, 2022 have been evaluated as to their potential impact to the consolidated financial statements. On July 20, 2022, the Company declared a regular quarterly cash dividend of $0.35 per share, payable August 4, 2022, to stockholders of record on July 30, 2022.
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Basis of Presentation (Policies) |
6 Months Ended |
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Jun. 30, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The accompanying unaudited interim consolidated financial statements of Union Bankshares, Inc. and Subsidiary (together, the Company) as of June 30, 2022, and for the three and six months ended June 30, 2022 and 2021, have been prepared in conformity with GAAP for interim financial information, general practices within the banking industry, and the accounting policies described in the Company’s Annual Report on Form 10-K for the year ended December 31, 2021, as amended by Amendment No. 1 on Form 10-K/A (2021 Annual Report). The Company's sole subsidiary is Union Bank. In the opinion of the Company’s management, all adjustments, consisting only of normal recurring adjustments and disclosures necessary for a fair presentation of the information contained herein, have been made. This information should be read in conjunction with the Company’s 2021 Annual Report. The results of operations for the interim periods are not necessarily indicative of the results of operations to be expected for the full fiscal year ending December 31, 2022, or any future interim period. The Company is a “smaller reporting company” and as permitted under the rules and regulations of the SEC, has elected to provide its consolidated statements of income, comprehensive income, cash flows and changes in stockholders’ equity for a two year, rather than three year, period. The Company has also elected to provide certain other scaled disclosures in this report, as permitted for smaller reporting companies. Certain amounts in the 2021 consolidated financial statements have been reclassified to conform to the current year presentation.
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Recent Accounting Pronouncements | Recent Accounting Pronouncements In June 2016, the FASB issued ASU No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. Under this guidance, which will replace the existing incurred loss model for recognizing credit losses, banks and other lending institutions will be required to recognize the full amount of expected credit losses. The guidance in the ASU, which is referred to as the current expected credit loss model ("CECL"), requires that expected credit losses for financial assets held at the reporting date that are accounted for at amortized cost be measured and recognized based on historical experience and current and reasonably supportable forecasted conditions to reflect the full amount of expected credit losses. A modified version of these requirements also applies to debt securities classified as AFS. As initially proposed, the ASU was to become effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Early adoption was permitted for fiscal years beginning after December 15, 2018, including interim periods within such years. In October 2019, the FASB approved amendments to delay the effective date of the ASU to fiscal years beginning after December 31, 2022, including interim periods within those fiscal years, for smaller reporting companies, as defined by the SEC, and other non-SEC reporting entities. The Company did not choose to early adopt the ASU. As the Company is a smaller reporting company, the ASU will become effective for the Company beginning with the 2023 fiscal year. The Company has established a CECL implementation team and developed a transition project plan. The Company utilizes a software package for its current calculation of the allowance for loan losses that will also be utilized for CECL implementation. Historical data has been compiled and continues to be collected and training is ongoing surrounding CECL implementation and methodologies. In addition, the Company is conducting parallel calculations under the existing incurred loss model and the CECL model throughout 2022. The measures will facilitate the eventual implementation process and management's evaluation of the potential impact of the ASU on the Company's consolidated financial statements. In March 2020, the FASB issued ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, and has issued subsequent amendments thereto, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying GAAP to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. It is intended to help stakeholders during the global market-wide reference rate transition period. The guidance is effective for all entities as of March 12, 2020 through December 31, 2022. The transition away from LIBOR is not expected to have a material impact on the Company's consolidated financial statements. In March 2022, the FASB issued ASU No. 2022-02, Financial Instruments - Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures which eliminates the accounting guidance for TDRs, while enhancing disclosure requirements for certain loan refinancings and restructurings by creditors when a borrower is experiencing financial difficulty. The ASU also requires disclosure of current period charge offs by year of origination for loans and leases. ASU No. 2022-02 is effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2022. ASU No. 2022-02 is not expected to have a material impact on the Company’s consolidated financial statements.
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Investment Securities | The Company evaluates all investment securities on a quarterly basis, and more frequently when economic conditions warrant, to determine if an OTTI exists. A security is considered impaired if the fair value is lower than its amortized cost basis at the report date. If impaired, management then assesses whether the unrealized loss is OTT. An unrealized loss on a debt security is generally deemed to be OTT and a credit loss is deemed to exist if the present value of the expected future cash flows is less than the amortized cost basis of the debt security. The credit loss component of OTTI write-down is recorded, net of tax effect, through net income as a component of net OTTI losses in the consolidated statements of income, while the remaining portion of the impairment loss is recognized in OCI, provided the Company does not intend to sell the underlying debt security and it is "more likely than not" that the Company will not have to sell the debt security prior to recovery. Management considers the following factors in determining whether OTTI exists and the period over which the security is expected to recover: •The length of time, and extent to which, the fair value has been less than the amortized cost; •Adverse conditions specifically related to the security, industry, or geographic area; •The historical and implied volatility of the fair value of the security; •The payment structure of the debt security and the likelihood of the issuer being able to make payments that may increase in the future; •Failure of the issuer of the security to make scheduled interest or principal payments; •Any changes to the rating of the security by a rating agency; •Recoveries or additional declines in fair value subsequent to the balance sheet date; and •The nature of the issuer, including whether it is a private company, public entity or government-sponsored enterprise, and the existence or likelihood of any government or third party guaranty.
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Loans | Loans Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at their unpaid principal balances, adjusted for any charge-offs, the ALL, and any deferred fees or costs on originated loans and unamortized premiums or discounts on purchased loans. Loan interest income is accrued daily on outstanding balances. The following accounting policies, related to accrual and nonaccrual loans, apply to all portfolio segments and loan classes, which the Company considers to be the same. The accrual of interest is normally discontinued when a loan is specifically determined to be impaired and/or management believes, after considering collection efforts and other factors, that the borrower's financial condition is such that collection of interest is doubtful. Generally, any unpaid interest previously accrued on those loans is reversed against current period interest income. A loan may be restored to accrual status when its financial status has significantly improved and there is no principal or interest past due. A loan may also be restored to accrual status if the borrower makes six consecutive monthly payments or the lump sum equivalent. Income on nonaccrual loans is generally not recognized unless a loan is returned to accrual status or after all principal has been collected. Interest income generally is not recognized on impaired loans unless the likelihood of further loss is remote. Interest payments received on such loans are generally applied as a reduction of the loan principal balance. Delinquency status is determined based on contractual terms for all portfolio segments and loan classes. Loans past due 30 days or more are considered delinquent. Loans are considered in process of foreclosure when a judgment of foreclosure has been issued by the court. Loan origination fees and direct loan origination costs are deferred and amortized as an adjustment of the related loan's yield using methods that approximate the interest method. The Company generally amortizes these amounts over the estimated average life of the related loans.
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Allowance for Loan Losses and Credit Quality | Allowance for Loan Losses and Credit Quality The ALL is established for estimated losses in the loan portfolio through a provision for loan losses charged to earnings. For all loan classes, loan losses are charged against the ALL when management believes the loan balance is uncollectible or in accordance with federal guidelines. Subsequent recoveries, if any, are credited to the ALL. The ALL is maintained at a level believed by management to be appropriate to absorb probable credit losses inherent in the loan portfolio as of the balance sheet date. The amount of the ALL is based on management's periodic evaluation of the collectability of the loan portfolio, including the nature, volume and risk characteristics of the portfolio, credit concentrations, trends in historical loss experience, estimated value of any underlying collateral, specific impaired loans and economic conditions. There was no change to the methodology used to estimate the ALL during the second quarter of 2022. While management uses available information to recognize losses on loans, future additions to the ALL may be necessary based on changes in economic conditions or other relevant factors. In addition, various regulatory agencies, as an integral part of their examination process, regularly review the Company's ALL. Such agencies may require the Company to recognize additions to the ALL, with a corresponding charge to earnings, based on their judgments about information available to them at the time of their examination, which may not be currently available to management. The ALL consists of specific, general and unallocated components. The specific component relates to the loans that are classified as impaired. Loans are evaluated for impairment and may be classified as impaired when management believes it is probable that the Company will not collect all the contractual interest and principal payments as scheduled in the loan agreement. Impaired loans may also include troubled loans that are restructured. A TDR occurs when the Company, for economic or legal reasons related to the borrower's financial difficulties, grants a concession to the borrower that would otherwise not be granted. A TDR classification may result from the transfer of assets to the Company in partial satisfaction of a troubled loan, a modification of a loan's terms (such as reduction of stated interest rates below market rates, extension of maturity that does not conform to the Company's policies, reduction of the face amount of the loan, reduction of accrued interest, or reduction or deferment of loan payments), or a combination. A specific reserve amount is allocated to the ALL for individual loans that have been classified as impaired based on management's estimate of the fair value of the collateral for collateral dependent loans, an observable market price, or the present value of anticipated future cash flows. The Company accounts for the change in present value attributable to the passage of time in the loan loss reserve. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer, real estate or small balance commercial loans for impairment evaluation, unless such loans are subject to a restructuring agreement or have been identified as impaired as part of a larger customer relationship. Based on an evaluation of the Company's historical loss experience on substandard commercial loans, management has established the commercial loan threshold for individual impairment evaluation as commercial loan relationships with aggregate balances greater than $500 thousand. The general component represents the level of ALL allocable to each loan portfolio segment with similar risk characteristics and is determined based on historical loss experience, adjusted for qualitative factors, for each class of loan. Management deems a five year average to be an appropriate time frame on which to base historical losses for each portfolio segment. Qualitative factors considered include underwriting, economic and market conditions, portfolio composition, collateral values, delinquencies, lender experience and legal issues. The qualitative factors are determined based on the various risk characteristics of each portfolio segment. Risk characteristics relevant to each portfolio segment are as follows: •Residential real estate - Loans in this segment are collateralized by owner-occupied 1-4 family residential real estate, second and vacation homes, 1-4 family investment properties, home equity and second mortgage loans. Repayment is dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment rates and housing prices, could have an effect on the credit quality of this segment. •Construction real estate - Loans in this segment include residential and commercial construction properties, commercial real estate development loans (while in the construction phase of the projects), land and land development loans. Repayment is dependent on the credit quality of the individual borrower and/or the underlying cash flows generated by the properties being constructed. The overall health of the economy, including unemployment rates, housing prices, vacancy rates and material costs, could have an effect on the credit quality of this segment. •Commercial real estate - Loans in this segment are primarily properties occupied by businesses or income-producing properties. The underlying cash flows generated by the properties may be adversely impacted by a downturn in the economy as evidenced by a general slowdown in business or increased vacancy rates which, in turn, could have an effect on the credit quality of this segment. Management requests business financial statements at least annually and monitors the cash flows of these loans. •Commercial - Loans in this segment are made to businesses and are generally secured by non-real estate assets of the business. Repayment is expected from the cash flows of the business. A weakened economy, and resultant decreased consumer or business spending, could have an effect on the credit quality of this segment. •Consumer - Loans in this segment are made to individuals for personal expenditures, such as an automobile purchase, and include unsecured loans. Repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, including unemployment, could have an effect on the credit quality of this segment. •Municipal - Loans in this segment are made to municipalities located within the Company's service area. Repayment is primarily dependent on taxes or other funds collected by the municipalities. Management considers there to be minimal risk surrounding the credit quality of this segment. Management increased certain economic qualitative factors utilized to estimate the ALL during 2020 at the onset of the COVID-19 pandemic. During 2021, the economic qualitative reserve factor assigned to each loan portfolio in the ALL estimate was decreased due to continued indications of economic improvement. COVID-19 restrictions were lifted in June 2021 and the majority of borrowers that had executed loan modifications due to COVID-19 were no longer subject to modified terms. Based on these continued improving economic trends, the economic qualitative reserve factor assigned to all loan portfolios, except the municipal loan portfolio, was decreased 5 bps during both the first and second quarters of 2022. An unallocated component is maintained to cover uncertainties that could affect management's estimate of probable losses. The unallocated component of the ALL reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. All evaluations are inherently subjective as they require estimates that are susceptible to significant revision as more information becomes available or as changes occur in economic conditions or other relevant factors. Despite the allocation shown in the tables below, the ALL is general in nature and is available to absorb losses from any class of loan.
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Other Comprehensive Loss | Other Comprehensive LossAccounting principles generally require recognized revenue, expenses, gains and losses be included in net income or loss. Certain changes in assets and liabilities, such as the after tax effect of unrealized gains and losses on investment securities AFS that are not OTTI, are not reflected in the consolidated statements of income. The cumulative effect of such items, net of tax effect, is reported as a separate component of the equity section of the consolidated balance sheets (Accumulated OCI). OCI, along with net income, comprises the Company's total comprehensive income or loss. |
Fair Value Measurement | Fair Value MeasurementThe Company utilizes FASB ASC Topic 820, Fair Value Measurement, as guidance for accounting for assets and liabilities carried at fair value. This standard defines fair value as the price that would be received, without adjustment for transaction costs, to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is a market based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. The guidance in FASB ASC Topic 820 establishes a three-level fair value hierarchy, which prioritizes the inputs used in measuring fair value. A financial instrument’s level within the fair value hierarchy is based on the lowest level of input that is significant to the fair value measurement. The three levels of the fair value hierarchy are: •Level 1 - Unadjusted quoted prices in active markets that are accessible at the measurement date for identical, unrestricted assets or liabilities; •Level 2 - Quoted prices for similar assets or liabilities in active markets, quoted prices in markets that are not active, or inputs that are observable, either directly or indirectly, for substantially the full term of the asset or liability; •Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).
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Fair Value Measurement | The following is a description of the valuation methodologies used for the Company’s assets that are measured on a recurring basis at estimated fair value: Investment securities AFS: Certain U.S. Treasury notes have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1. However, the majority of the Company’s AFS securities have been valued utilizing Level 2 inputs. For these securities, the Company obtains fair value measurements from an independent pricing service. The fair value measurements consider observable data that may include market maker bids, quotes and pricing models. Inputs to the pricing models include recent trades, benchmark interest rates, spreads and actual and projected cash flows. Mutual funds: Mutual funds have been valued using unadjusted quoted prices from active markets and therefore have been classified as Level 1.
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Basis of Presentation (Tables) |
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Accounting Policies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Acronyms, Abbreviations and Capitalized Terms | In addition to the definitions set forth elsewhere in this report, the acronyms, abbreviations and capitalized terms identified below are used throughout this Form 10-Q, including Part I. "Financial Information" and Part II. "Other Information". The following is provided to aid the reader and provide a reference page when reviewing this Form 10-Q.
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Per Share Information (Tables) |
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Schedule of Earnings Per Share, Basic and Diluted | The following table presents the reconciliation between the calculation of basic EPS and diluted EPS for the three and six months ended June 30, 2022 and 2021:
(1)Dilutive effect of stock based awards represents the effect of the assumed exercise of stock options (2021 only) and vesting of restricted stock units. Unvested awards do not have dividend or dividend equivalent rights.
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Investment Securities (Tables) |
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Debt Securities, Available-for-sale | Debt securities AFS as of the balance sheet dates consisted of the following:
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Schedule of Debt Securities by Contractual Maturity | The amortized cost and estimated fair value of debt securities by contractual scheduled maturity as of June 30, 2022 were as follows:
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Schedule of Unrealized Loss on Investments | Information pertaining to all debt securities AFS with gross unrealized losses as of the balance sheet dates, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:
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Schedule of Realized Gain (Loss) | The following table presents the proceeds from sales and calls resulting in gross realized gains and gross realized losses from the disposition of AFS securities for the three and six months ended June 30, 2022:
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Loans (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Receivables [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Composition of Net Loans | The composition of Net loans as of the balance sheet dates was as follows:
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Schedule Of Current, Past due and Nonaccrual Loans | A summary of current, past due and nonaccrual loans as of the balance sheet dates follows:
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Allowance for Loan Losses and Credit Quality (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Credit Loss [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Allowance For Loan Losses, By Class | Changes in the ALL, by class of loans, for the three and six months ended June 30, 2022 and 2021 were as follows:
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Schedule Of Allocation of Allowance for Loan Losses by Impairment Methodology | The allocation of the ALL, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
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Schedule Of Allocation of Investment in Loans by Impairment Methodology | The recorded investment in loans, summarized on the basis of the Company's impairment methodology by class of loan, as of the balance sheet dates, was as follows:
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Schedule Of Financing Receivable Credit Quality Indicators | The following tables summarize the loan ratings applied by management to the Company's loans by class as of the balance sheet dates:
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||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Impaired Financing Receivables | The following tables provide information with respect to impaired loans by class of loan as of and for the three and six months ended June 30, 2022 and June 30, 2021:
____________________ (1)Does not reflect government guaranties on impaired loans as of June 30, 2022 totaling $347 thousand.
____________________ (1)Does not reflect government guaranties on impaired loans as of June 30, 2021 totaling $354 thousand. The following table provides information with respect to impaired loans by class of loan as of December 31, 2021:
____________________ (1)Does not reflect government guaranties on impaired loans as of December 31, 2021 totaling $423 thousand.
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Schedule Of Financing Receivable, Troubled Debt Restructuring | The following is a summary of TDR loans by class of loan as of the balance sheet dates:
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Stock Based Compensation (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Share-based Compensation, Summary of RSUs | The following table summarizes the RSUs awarded to Company executives in 2020, 2021 and 2022, and the number of such RSUs remaining unvested as of June 30, 2022:
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Other Comprehensive Loss (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accumulated Other Comprehensive Income (Loss) | As of the balance sheet dates, the components of Accumulated OCI, net of tax, were:
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Schedule of Comprehensive Income (Loss) | The following tables disclose the tax effects allocated to each component of OCI for the three and six months ended June 30:
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Schedule Of Reclassification Out of Accumulated Other Comprehensive Income | The following table discloses information concerning reclassification adjustments from OCI for the three and six months ended June 30, 2022 and 2021:
|
Fair Value Measurement (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Jun. 30, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule Of Fair Value, Assets Measured on Recurring Basis | Assets measured at fair value on a recurring basis at June 30, 2022 and December 31, 2021, segregated by fair value hierarchy level, are summarized below:
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Schedule Of Fair Values and Carrying Amounts, Significant Financial Instruments | As of the balance sheet dates, the estimated fair values and related carrying amounts of the Company's significant financial instruments were as follows:
|
Per Share Information - Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Earnings Per Share [Abstract] | ||||
Net income | $ 2,931 | $ 2,991 | $ 5,413 | $ 5,867 |
Weighted average common shares outstanding for basic EPS (in shares) | 4,494,027 | 4,482,597 | 4,494,447 | 4,481,475 |
Dilutive effect of stock-based awards (in shares) | 19,384 | 28,572 | 15,659 | 24,675 |
Weighted average common and potential common shares for diluted EPS (in shares) | 4,513,411 | 4,511,169 | 4,510,106 | 4,506,150 |
Earnings per common share: | ||||
Basic EPS (in usd per share) | $ 0.65 | $ 0.67 | $ 1.20 | $ 1.31 |
Diluted EPS (in usd per share) | $ 0.65 | $ 0.66 | $ 1.20 | $ 1.30 |
Investment Securities - Debt Securities, Available-for-sale (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Available-for-sale | ||
Amortized Cost | $ 297,612 | $ 269,783 |
Gross Unrealized Gains | 77 | 2,303 |
Gross Unrealized Losses | (36,024) | (4,267) |
Fair Value | 261,665 | 267,819 |
U.S. Government-sponsored enterprises | ||
Available-for-sale | ||
Amortized Cost | 45,631 | 37,176 |
Gross Unrealized Gains | 1 | 55 |
Gross Unrealized Losses | (3,988) | (593) |
Fair Value | 41,644 | 36,638 |
Agency mortgage-backed | ||
Available-for-sale | ||
Amortized Cost | 202,132 | 181,216 |
Gross Unrealized Gains | 5 | 574 |
Gross Unrealized Losses | (25,318) | (3,540) |
Fair Value | 176,819 | 178,250 |
State and political subdivisions | ||
Available-for-sale | ||
Amortized Cost | 43,513 | 44,068 |
Gross Unrealized Gains | 65 | 1,293 |
Gross Unrealized Losses | (6,610) | (107) |
Fair Value | 36,968 | 45,254 |
Corporate | ||
Available-for-sale | ||
Amortized Cost | 6,336 | 7,323 |
Gross Unrealized Gains | 6 | 381 |
Gross Unrealized Losses | (108) | (27) |
Fair Value | $ 6,234 | $ 7,677 |
Investment Securities - Narrative (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022 |
Dec. 31, 2021 |
|
Variable Interest Entity [Line Items] | ||
Investment securities HTM | $ 0 | $ 0 |
Other than temporary declines in investment securities | 0 | 0 |
Asset Pledged as Collateral without Right | ||
Variable Interest Entity [Line Items] | ||
Debt securities | $ 479 | $ 608 |
Investment Securities - Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Amortized Cost | ||
Due from one to five years | $ 16,635 | |
Due from five to ten years | 33,131 | |
Due after ten years | 45,714 | |
Debt securities with single maturity date, amortized cost | 95,480 | |
Agency mortgage-backed | 202,132 | |
Total debt securities available-for-sale | 297,612 | |
Fair Value | ||
Due from one to five years | 15,665 | |
Due from five to ten years | 30,450 | |
Due after ten years | 38,731 | |
Debt securities with single maturity date, fair value | 84,846 | |
Agency mortgage-backed | 176,819 | |
Total debt securities available-for-sale | $ 261,665 | $ 267,819 |
Investment Securities - Realized Gain (Loss) (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Investments, Debt and Equity Securities [Abstract] | ||||
Proceeds from sales | $ 0 | $ 0 | $ 6,827 | $ 0 |
Proceeds from calls | 502 | 502 | ||
Gross gains | 5 | 81 | ||
Gross losses | 0 | (50) | ||
Net gains on sales of investment securities AFS | $ 5 | $ 0 | $ 31 | $ 0 |
Loans - Narrative (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Jun. 30, 2022
USD ($)
loan
payment
|
Jun. 30, 2021
USD ($)
|
Jun. 30, 2022
USD ($)
loan
payment
|
Jun. 30, 2021
USD ($)
|
Dec. 31, 2021
USD ($)
loan
|
|
Variable Interest Entity [Line Items] | |||||
Number of payments | payment | 6 | 6 | |||
Number of PPP loans | loan | 43 | 43 | 154 | ||
Total amount of PPP loans | $ 3,300 | $ 3,300 | $ 13,600 | ||
Total origination fees on PPP loans | 129 | 129 | 558 | ||
Origination fees recognized on PPP loans | 141 | $ 715 | 428 | $ 1,400 | |
Loans | $ 817,953 | $ 817,953 | $ 787,050 | ||
Number of residential real estate loans in process of foreclosure | loan | 1 | 1 | 0 | ||
Recorded investment in residential real estate loans in process of foreclosure | $ 28 | $ 28 | |||
Aggregate interest on nonaccrual loans not recognized | 437 | $ 504 | |||
Asset Pledged as Collateral without Right | |||||
Variable Interest Entity [Line Items] | |||||
Loans | $ 280,000 | $ 280,000 | $ 224,400 |
Allowance for Loan Losses and Credit Quality - Troubled Debt Restructured Loans (Details) $ in Thousands |
6 Months Ended | 12 Months Ended |
---|---|---|
Jun. 30, 2022
USD ($)
loan
|
Dec. 31, 2021
USD ($)
loan
|
|
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 30 | 35 |
Principal Balance | $ | $ 1,888 | $ 2,215 |
Residential real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 25 | 29 |
Principal Balance | $ | $ 1,538 | $ 1,750 |
Construction real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 2 |
Principal Balance | $ | $ 70 | $ 81 |
Commercial real estate | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 2 | 3 |
Principal Balance | $ | $ 272 | $ 375 |
Commercial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Loans | loan | 1 | 1 |
Principal Balance | $ | $ 8 | $ 9 |
Stock Based Compensation - Narrative (Details) - 2014 Equity Plan - USD ($) $ in Thousands |
Jun. 30, 2022 |
May 31, 2022 |
May 18, 2022 |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|---|---|---|
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares authorized for equity awards (in shares) | 150,000 | ||||
Restricted Stock Units (RSUs) | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares common stock upon satisfaction of applicable vesting conditions (in shares) | 1 | 1 | |||
Unrecognized compensation expense, unvested RSUs | $ 745 | $ 317 | $ 396 | ||
RSUs granted to non-employee directors (in shares) | 1,323 | ||||
Unrecognized director compensation expense, unvested RSUs | $ 35 |
Subordinated Notes (Details) - USD ($) |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Dec. 31, 2021 |
Aug. 31, 2021 |
|
Debt Instrument [Line Items] | |||||
Unamortized debt issuance costs | $ 312,000 | $ 312,000 | $ 329,000 | ||
Amortization of debt issuance costs | $ 9,000 | $ 17,000 | $ 0 | ||
Subordinated Notes Due 2031 | Subordinated Debt | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 16,500,000 | ||||
Interest rate | 3.25% | ||||
Subordinated Notes Due 2031 | Subordinated Debt | SOFR | |||||
Debt Instrument [Line Items] | |||||
Interest rate | 2.63% |
Other Comprehensive Loss - Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
Jun. 30, 2022 |
Dec. 31, 2021 |
---|---|---|
Equity [Abstract] | ||
Net unrealized losses on investment securities AFS | $ (28,399) | $ (1,552) |
Other Comprehensive Loss - Reclassification out of Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sales of investment securities available-for-sale | $ (3,541) | $ (3,594) | $ (6,445) | $ (7,011) |
Provision for income taxes | 610 | 603 | 1,032 | 1,144 |
Net income | (2,931) | (2,991) | (5,413) | (5,867) |
Reclassification out of Accumulated Other Comprehensive Income | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Net gains on sales of investment securities available-for-sale | (5) | 0 | (31) | 0 |
Provision for income taxes | 1 | 0 | 6 | 0 |
Net income | $ (4) | $ 0 | $ (25) | $ 0 |
Subsequent Events - Narrative (Details) - $ / shares |
3 Months Ended | 6 Months Ended | ||||
---|---|---|---|---|---|---|
Aug. 04, 2022 |
Jul. 20, 2022 |
Jun. 30, 2022 |
Jun. 30, 2021 |
Jun. 30, 2022 |
Jun. 30, 2021 |
|
Subsequent Event [Line Items] | ||||||
Dividends per common share (in usd per share) | $ 0.35 | $ 0.33 | $ 0.70 | $ 0.66 | ||
Subsequent Event | ||||||
Subsequent Event [Line Items] | ||||||
Dividends per common share (in usd per share) | $ 0.35 | |||||
Dividends cash paid (in usd per share) | $ 0.35 |
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