ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
Title of each class
|
Trading Symbol
|
Name of each exchange on which registered
|
|
|
|
Large accelerated filer
|
☐ |
Accelerated filer
|
☐ |
|
☒ |
Smaller reporting company
|
|
Emerging growth company
|
PART I
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Page
|
|
Item 1.
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3
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Item 1A.
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12
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Item 1B.
|
21
|
|
Item 2.
|
21
|
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Item 3.
|
21
|
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Item 4.
|
21
|
|
PART II
|
||
Item 5.
|
23
|
|
Item 6.
|
23
|
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Item 7.
|
23
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Item 7A.
|
40
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|
Item 8.
|
40
|
|
Item 9.
|
79
|
|
Item 9A.
|
79
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Item 9B.
|
80
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Item 9C.
|
80
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PART III
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||
Item 10.
|
80
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Item 11.
|
80
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Item 12.
|
81
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Item 13.
|
81
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Item 14.
|
81
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PART IV
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||
Item 15.
|
81
|
|
81
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||
82
|
||
Item 16.
|
84
|
|
84
|
2020 Form 10-K
|
Annual Report on Form 10-K for the year ended December 31, 2020
|
ALLL
|
Allowance for Loan and Lease Losses
|
ASC
|
Accounting Standards Codification
|
ASU
|
Accounting Standards Update
|
Bank
|
The Old Point National Bank of Phoebus
|
BHCA
|
The Bank Holding Company Act
|
The CARES Act
|
The Coronavirus Aid, Relief, and Economic Security Act
|
CET1
|
Common Equity Tier 1
|
Citizens
|
Citizens National Bank
|
Company
|
Old Point Financial Corporation and its subsidiaries
|
CBB
|
Community Bankers Bank
|
CBLRF
|
Community Bank Leverage Ratio Framework
|
COVID-19
|
Novel coronavirus disease 2019
|
EGRRCPA
|
Economic Growth, Regulatory Relief, and Consumer Protection Act
|
EPS
|
earnings per share
|
ESPP
|
Employee Stock Purchase Plan
|
Exchange Act
|
Securities Exchange Act of 1934, as amended
|
FASB
|
Financial Accounting Standards Board
|
FDIC
|
Federal Deposit Insurance Corporation
|
FHLB
|
Federal Home Loan Bank
|
Federal Reserve
|
Board of Governors of the Federal Reserve System
|
FRB
|
Federal Reserve Bank
|
GAAP
|
Generally Accepted Accounting Principles
|
Incentive Stock Plan
|
Old Point Financial Corporation 2016 Incentive Stock Plan
|
NIM
|
Net Interest Margin
|
Notes
|
The Company’s 3.50% fixed-to-floating rate subordinated notes due 2031
|
OAEM
|
Other Assets Especially Mentioned
|
OREO
|
Other Real Estate Owned
|
PPP
|
Paycheck Protection Program
|
PPPLF
|
Paycheck Protection Program Liquidity Facility
|
SEC
|
Securities and Exchange Commission
|
SBA
|
Small Business Administration
|
SOFR
|
Secured overnight financing rate
|
TDR
|
Troubled Debt Restructuring
|
Trust
|
Old Point Trust & Financial Services N.A.
|
• |
interest rates, such as volatility in short-term interest rates or yields on U.S. Treasury bonds and increases or volatility in mortgage interest rates
|
• |
general business conditions, as well as conditions within the financial markets
|
• |
general economic conditions, including unemployment levels, supply chain disruptions, and slowdowns in economic growth, and particularly related to further and sustained economic impacts of the COVID-19
pandemic
|
• |
the effectiveness of the Company’s efforts to respond to COVID-19, the severity and duration of the pandemic, the impact of loosening of governmental restrictions, the uncertainty regarding new variants,
the pace and efficacy of vaccinations and treatment developments, the pace and durability of economic recovery and the heightened impact that COVID-19 may have on many of the risks described herein
|
• |
potential claims, damages and fines related to litigation or government actions, including litigation or actions arising from the Company’s participation in and administration of programs related to
COVID-19, including, among other things, the PPP under the CARES Act, as subsequently amended
|
• |
the Company’s branch realignment initiatives
|
• |
the Company’s technology, efficiency, and other strategic initiatives
|
• |
the legislative/regulatory climate, regulatory initiatives with respect to financial institutions, products and services, the Consumer Financial Protection Bureau (the CFPB) and the regulatory and
enforcement activities of the CFPB
|
• |
monetary and fiscal policies of the U.S. Government, including policies of the U.S. Department of the Treasury and the Board of Governors of the Federal Reserve System (the Federal Reserve), and the effect
of these policies on interest rates and business in our markets
|
• |
future levels of government defense spending particularly in the Company’s service area
|
• |
the impact of potential changes in the political landscape and related policy changes, including monetary, regulatory and trade policies
|
• |
the US. Government’s guarantee of repayment of student or small business loans purchased by the Company
|
• |
the value of securities held in the Company’s investment portfolios
|
• |
demand for loan products and the impact of changes in demand on loan growth
|
• |
the quality or composition of the loan portfolios and the value of the collateral securing those loans
|
• |
changes in the volume and mix of interest-earning assets and interest-bearing liabilities
|
• |
the effects of management’s investment strategy and strategy to manage the net interest margin
|
• |
the level of net charge-offs on loans and the adequacy of our allowance for loan and lease losses
|
• |
performance of the Company’s dealer lending program
|
• |
deposit flows
|
• |
the strength of the Company’s counterparties
|
• |
competition from both banks and non-banks
|
• |
demand for financial services in the Company’s market area
|
• |
implementation of new technologies
|
• |
the Company’s ability to develop and maintain secure and reliable electronic systems
|
• |
any interruption or breach of security in the Company’s information systems or those of the Company’s third-party vendors or their service providers
|
• |
reliance on third parties for key services
|
• |
cyber threats, attacks or events
|
• |
the use of inaccurate assumptions in management’s modeling systems
|
• |
technological risks and developments
|
• |
the commercial and residential real estate markets
|
• |
the demand in the secondary residential mortgage loan markets
|
• |
expansion of the Company’s product offerings
|
• |
accounting principles, policies and guidelines and elections made by the Company thereunder
|
Item 1. |
Business
|
Item 1B. |
Unresolved Staff Comments
|
Item 2. |
Properties
|
Item 3. |
Legal Proceedings
|
Item 4. |
Mine Safety Disclosures
|
Name (Age) And Present Position
|
Served as an Executive Officer Since
|
Principal Occupation During Past Five Years
|
Robert F. Shuford, Jr. (57)
|
||
Chairman, President & Chief Executive Officer
Old Point Financial Corporation |
2003
|
Chairman of the Board, President & Chief Executive Officer of the Company and the Bank since 2020. Executive Vice President/Bank of the Company since 2015; Chief Operating Officer & Senior Vice President/Operations of the
Company from 2003 to 2015
President & Chief Executive Officer of the Bank since 2015; Senior Executive Vice President & Chief Operating Officer of the Bank from 2012 to 2015; Executive Vice President & Chief Operating Officer of the Bank from 2003 to 2012; Chairman of the Board of the Bank |
Elizabeth T. Beale (49)
|
||
Chief Financial Officer & Senior Vice President/Finance
Old Point Financial Corporation |
2019
|
Chief Financial Officer & Senior Vice President/Finance of the Company; a Certified Public Accountant; Senior Vice President & Chief Accounting Officer of the Bank from 2018 to 2019; Executive Vice President and Chief Financial
Officer for Citizens National Bank (formerly CNB Bancorp, Inc.) from 2003 to 2018; corporate accountant for James River Bankshares from 1995 to 2000
Chief Financial Officer & Executive Vice President of the Bank |
Donald S. Buckless (57)
|
||
Chief Lending Officer & Senior Vice President
Old Point Financial Corporation |
2016
|
Chief Lending Officer & Senior Vice President of the Company since 2016
Chief Lending Officer & Executive Vice President of the Bank since 2016; Chief Lending Officer & Senior Vice President of the Bank from 2015 to 2016; Senior Vice President/Commercial Lending Officer of the Bank from May 2012 to 2015; Senior Vice President of SunTrust from December 2000 to May 2012 |
Thomas L. Hotchkiss (66)
|
||
Chief Credit Officer & Executive Vice President
Old Point National Bank |
2019
|
Chief Credit Officer & Executive Vice President of the Bank since 2019; Chief Credit Officer of finanical institution in Maryland from February 2015 to February 2019; Managing director of Hotchkiss & Associates Analytics, LLC
from June 2011 to January 2015
|
Eugene M. Jordan, II (67)
|
||
Secretary to the Board & Executive Vice President/Corporate Counsel
Old Point Financial Corporation |
2003
|
General Counsel & Corporate Secretary since September 2021. Secretary to the Board & Executive Vice President/Trust of the Company 2015 to 2021; Executive Vice President/ Trust of the Company from 2003 to 2015
President and Chief Executive Officer of Trust from 2003 to September 2021; Chairman of the Trust Board |
A. Eric Kauders, Jr. (52)
|
||
Senior Vice President/Trust
Old Point Financial Corporation |
2021
|
Senior Vice President/Trust of the Company since September 2021
President and Chief Executive Officer of Trust since September 2021; Managing Director at Bank of America Private Bank from 2008 to 2021 |
Susan R. Ralston (58)
|
||
Chief Operating Officer & Executive Vice President
Old Point National Bank |
2019
|
Chief Operating Officer & Executive Vice President of the Bank since 2019; President & Founder of Ralston Coaching and Consulting, LLC from 2018 to 2019; Chief Operating Officer & Senior Vice President of Dollar Bank from
2016 to 2018; President & Chief Executive Officer of Bank @lantec from 2004 to 2016
|
Joseph R. Witt (61)
|
||
Executive Vice President/Financial Service
Old Point Financial Corporation |
2008
|
Executive Vice President/Financial Services since 2020. Chief Business Development Officer & Senior Vice President of the Company since 2015; Chief Administrative Officer & Senior Vice President/Administration of the Company
from 2012 to 2015; Senior Vice President/ Corporate Banking/Human Resources of the Company from 2010 to 2012; Senior Vice President/Corporate Banking of the Company from 2008 to 2010
Chief Strategy Officer & President, Financial Services of the Bank beginning in 2020. Senior Executive Vice President & Chief Business Development Officer of the Bank from 2015 to 2019; Senior Executive Vice President & Chief Administrative Officer of the Bank from 2012 to 2015; Executive Vice President/ Corporate Banking & Human Resources Director of the Bank from 2010 to 2012 |
Item 5. |
Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities
|
Period
|
Total number of shares
repurchased
|
Average price paid per
share ($)
|
Total number of shares
purchased as part of
publicly announced plans
or programs
|
Maximum number (or
approximaate dollar
value) of shares that may
yet be purchased under
the plans or programs ($)
|
||||||||||||
October 1, 2021 - October 31, 2021
|
-
|
$
|
-
|
-
|
-
|
|||||||||||
November 1, 2021 - November 30, 2021
|
-
|
-
|
-
|
-
|
||||||||||||
December 1, 2021 - December 31, 2021
|
6,600
|
22.76
|
6,600
|
$
|
14,002,000
|
|||||||||||
Total
|
6,600
|
$
|
22.76
|
6,600
|
Item 6. |
Reserved
|
Item 7. |
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
• |
Loans held for investment (net of deferred fees and costs), excluding PPP (non-GAAP), increased 9.9%.
|
• |
Average earning assets increased $104.5 million, or 9.6%.
|
• |
Interest income increased $2.2 million, or 5.6%.
|
• |
Interest expense decreased $1.8 million, or 34.7%, due primarily to lower rates, shifts in funding to lower cost deposits, and prepayment of FHLB advances during the fourth quarter of 2020.
|
• |
Consolidated net interest margin (NIM) was 3.26% for 2021 compared to 3.19%.
|
• |
Fiduciary and asset management fees increased $321 thousand, or 8.3%.
|
• |
Mortgage banking income increased $499 thousand or 28.0%.
|
• |
On July 14, 2021, the Company issued $30.0 million in aggregate principal amount of 3.50% fixed-to-floating rate subordinated notes due 2031 in a private placement transaction. The Notes
initially bear interest at a fixed rate of 3.50% for five years and convert to the three-month SOFR plus 286 basis points, resetting quarterly, thereafter.
|
• |
Non-performing assets (NPAs) decreased to $1.5 million at December 31, 2021 compared to $2.0 million at December 31, 2020. NPAs as a percentage of total assets was 0.11% and 0.16% at December 31, 2021 and
2020, respectively.
|
• |
In 2020, the Bank recognized one-time pre-tax expenses of $1.1 million associated with three strategic initiatives: prepayment of FHLB advances, a voluntary Early Retirement Incentive Plan (ERIP), and a
loss on sale of a loan pool effectively removing non- or under-performing credit relationships from the balance sheet.
|
For the years ended December 31,
|
||||||||||||||||||||||||||||||||||||
2021
|
2020
|
2019
|
||||||||||||||||||||||||||||||||||
(dollars in thousands)
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
|
Average
Balance
|
Interest
Income/
Expense
|
Yield/
Rate
|
|||||||||||||||||||||||||||
ASSETS
|
||||||||||||||||||||||||||||||||||||
Loans*
|
$
|
841,748
|
$
|
37,960
|
4.51
|
%
|
$
|
834,247
|
$
|
36,061
|
4.32
|
%
|
$
|
757,677
|
$
|
35,771
|
4.72
|
%
|
||||||||||||||||||
Investment securities:
|
||||||||||||||||||||||||||||||||||||
Taxable
|
173,661
|
3,284
|
1.89
|
%
|
145,029
|
3,068
|
2.12
|
%
|
116,930
|
2,827
|
2.42
|
%
|
||||||||||||||||||||||||
Tax-exempt*
|
32,158
|
953
|
2.96
|
%
|
18,270
|
654
|
3.58
|
%
|
29,425
|
955
|
3.25
|
%
|
||||||||||||||||||||||||
Total investment securities
|
205,819
|
4,237
|
2.06
|
%
|
163,299
|
3,722
|
2.28
|
%
|
146,355
|
3,782
|
2.58
|
%
|
||||||||||||||||||||||||
Interest-bearing due from banks
|
145,425
|
230
|
0.16
|
%
|
91,160
|
267
|
0.29
|
%
|
34,592
|
689
|
1.99
|
%
|
||||||||||||||||||||||||
Federal funds sold
|
2,932
|
3
|
0.09
|
%
|
841
|
12
|
1.45
|
%
|
1,546
|
31
|
2.01
|
%
|
||||||||||||||||||||||||
Other investments
|
1,104
|
70
|
6.35
|
%
|
3,020
|
134
|
4.43
|
%
|
3,484
|
221
|
6.36
|
%
|
||||||||||||||||||||||||
Total earning assets
|
1,197,028
|
$
|
42,500
|
3.55
|
%
|
1,092,567
|
$
|
40,196
|
3.68
|
%
|
943,654
|
$
|
40,494
|
4.29
|
%
|
|||||||||||||||||||||
Allowance for loan losses
|
(9,621
|
)
|
(9,723
|
)
|
(10,562
|
)
|
||||||||||||||||||||||||||||||
Other nonearning assets
|
98,597
|
104,414
|
105,422
|
|||||||||||||||||||||||||||||||||
Total assets
|
$
|
1,286,004
|
$
|
1,187,258
|
$
|
1,038,514
|
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||||||||||||||||||||||||||||||
Time and savings deposits:
|
||||||||||||||||||||||||||||||||||||
Interest-bearing transaction accounts
|
$
|
71,841
|
$
|
13
|
0.02
|
%
|
$
|
55,667
|
$
|
12
|
0.02
|
%
|
$
|
32,603
|
$
|
11
|
0.03
|
%
|
||||||||||||||||||
Money market deposit accounts
|
372,193
|
879
|
0.24
|
%
|
307,190
|
1,012
|
0.33
|
%
|
257,884
|
1,037
|
0.40
|
%
|
||||||||||||||||||||||||
Savings accounts
|
114,285
|
46
|
0.04
|
%
|
96,149
|
56
|
0.06
|
%
|
86,787
|
88
|
0.10
|
%
|
||||||||||||||||||||||||
Time deposits
|
180,255
|
1,941
|
1.08
|
%
|
209,727
|
3,337
|
1.59
|
%
|
231,774
|
3,845
|
1.66
|
%
|
||||||||||||||||||||||||
Total time and savings deposits
|
738,574
|
2,879
|
0.39
|
%
|
668,733
|
4,417
|
0.66
|
%
|
609,048
|
4,981
|
0.82
|
%
|
||||||||||||||||||||||||
Federal funds purchased, repurchase
|
||||||||||||||||||||||||||||||||||||
agreements and other borrowings
|
14,178
|
35
|
0.25
|
%
|
33,846
|
150
|
0.44
|
%
|
22,302
|
132
|
0.59
|
%
|
||||||||||||||||||||||||
Long terrn borrowings
|
13,784
|
544
|
3.95
|
%
|
-
|
-
|
0.00
|
%
|
-
|
-
|
0.00
|
%
|
||||||||||||||||||||||||
Federal Home Loan Bank advances
|
-
|
-
|
0.00
|
%
|
38,942
|
725
|
1.86
|
%
|
50,397
|
1,309
|
2.60
|
%
|
||||||||||||||||||||||||
Total interest-bearing liabilities
|
766,536
|
3,458
|
0.45
|
%
|
741,521
|
5,292
|
0.71
|
%
|
681,747
|
6,422
|
0.94
|
%
|
||||||||||||||||||||||||
Demand deposits
|
391,673
|
325,596
|
245,518
|
|||||||||||||||||||||||||||||||||
Other liabilities
|
7,473
|
5,055
|
3,947
|
|||||||||||||||||||||||||||||||||
Stockholders' equity
|
120,322
|
115,086
|
107,302
|
|||||||||||||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
1,286,004
|
$
|
1,187,258
|
$
|
1,038,514
|
||||||||||||||||||||||||||||||
Net interest margin
|
$
|
39,042
|
3.26
|
%
|
$
|
34,904
|
3.19
|
%
|
$
|
34,072
|
3.61
|
%
|
2021 vs. 2020
|
2020 vs. 2019
|
|||||||||||||||||||||||
Increase (Decrease)
|
Increase (Decrease)
|
|||||||||||||||||||||||
Due to Changes in:
|
Due to Changes in:
|
|||||||||||||||||||||||
(dollars in thousands)
|
Volume
|
Rate
|
Total
|
Volume
|
Rate
|
Total
|
||||||||||||||||||
EARNING ASSETS
|
||||||||||||||||||||||||
Loans
|
$
|
324
|
$
|
1,575
|
$
|
1,899
|
$
|
3,723
|
$
|
(3,433
|
)
|
$
|
290
|
|||||||||||
Investment securities:
|
||||||||||||||||||||||||
Taxable
|
607
|
(391
|
)
|
216
|
689
|
(448
|
)
|
241
|
||||||||||||||||
Tax-exempt
|
497
|
(198
|
)
|
299
|
(360
|
)
|
59
|
(301
|
)
|
|||||||||||||||
Total investment securities
|
1,104
|
(589
|
)
|
515
|
329
|
(389
|
)
|
(60
|
)
|
|||||||||||||||
Federal funds sold
|
30
|
(39
|
)
|
(9
|
)
|
(14
|
)
|
(5
|
)
|
(19
|
)
|
|||||||||||||
Other investments **
|
72
|
(173
|
)
|
(101
|
)
|
1,345
|
(1,854
|
)
|
(509
|
)
|
||||||||||||||
Total earning assets
|
1,531
|
773
|
2,304
|
5,383
|
(5,681
|
)
|
(298
|
)
|
||||||||||||||||
INTEREST-BEARING LIABILITIES
|
||||||||||||||||||||||||
Interest-bearing transaction accounts
|
3
|
(2
|
)
|
1
|
8
|
(7
|
)
|
1
|
||||||||||||||||
Money market deposit accounts
|
215
|
(348
|
)
|
(133
|
)
|
202
|
(227
|
)
|
(25
|
)
|
||||||||||||||
Savings accounts
|
11
|
(21
|
)
|
(10
|
)
|
10
|
(42
|
)
|
(32
|
)
|
||||||||||||||
Time deposits
|
(469
|
)
|
(927
|
)
|
(1,396
|
)
|
(356
|
)
|
(152
|
)
|
(508
|
)
|
||||||||||||
Total time and savings deposits
|
(240
|
)
|
(1,298
|
)
|
(1,538
|
)
|
(136
|
)
|
(428
|
)
|
(564
|
)
|
||||||||||||
Federal funds purchased, repurchase
agreements and other borrowings |
(87
|
)
|
(28
|
)
|
(115
|
)
|
68
|
(50
|
)
|
18
|
||||||||||||||
Long term borrowings
|
-
|
544
|
544
|
-
|
-
|
-
|
||||||||||||||||||
Federal Home Loan Bank advances
|
(724
|
)
|
(1
|
)
|
(725
|
)
|
(298
|
)
|
(286
|
)
|
(584
|
)
|
||||||||||||
Total interest-bearing liabilities
|
(1,051
|
)
|
(1,327
|
)
|
(1,834
|
)
|
(366
|
)
|
(764
|
)
|
(1,130
|
)
|
||||||||||||
Change in net interest income
|
$
|
2,582
|
$
|
2,100
|
$
|
4,138
|
$
|
5,749
|
$
|
(4,917
|
)
|
$
|
832
|
• |
Professional services, which increased $325 thousand primarily due to higher legal costs, audit expense and expenses related to the transition from in-house to outsourced data processing environments, and
an increased OCC assessment.
|
• |
ATM and other losses, which decreased $367 thousand primarily due to lower impairment of certain low-income housing equity investments.
|
• |
Loss on extinguishment of borrowings, which is related to FHLB advance prepayments of $38.5 million and was recognized in 2020. There were no similar losses during 2021.
|
• |
Other operating expenses, which increased $260 thousand or 7.7% due primarily to an increase in FDIC insurance expense, telephone and courier expense, and other loan expenses due to costs associated with
higher loan volumes. The Company recognized a single loss event of $85 thousand in the first quarter of 2020, which did not impact 2021.
|
As of December 31,
|
||||||||
(Dollars in thousands)
|
2021
|
2020
|
||||||
U.S. Treasury securities
|
$
|
14,904
|
$
|
7,043
|
||||
Obligations of U.S. Government agencies
|
38,558
|
36,696
|
||||||
Obligations of state and policitcal subdivisions
|
65,803
|
45,995
|
||||||
Mortgage-backed securities
|
89,058
|
73,501
|
||||||
Money market investments
|
2,413
|
4,743
|
||||||
Corporate bonds and other securities
|
23,585
|
18,431
|
||||||
234,321
|
186,409
|
|||||||
Restricted securities:
|
||||||||
Federal Home Loan Bank stock
|
$
|
609
|
943
|
|||||
Federal Reserve Bank stock
|
383
|
382
|
||||||
Community Bankers' Bank stock
|
42
|
42
|
||||||
1,034
|
1,367
|
|||||||
Total Securities
|
$
|
235,355
|
$
|
187,776
|
1 year or less
|
||||||||||||||||||||
(Dollars in thousands)
|
2022
|
1-5 years
|
5-10 years
|
Over 10 years
|
Total
|
|||||||||||||||
U.S. Treasury securities
|
$
|
-
|
$
|
-
|
$
|
14,904
|
$
|
-
|
$
|
14,904
|
||||||||||
Weighted average yield
|
-
|
-
|
1.21
|
%
|
-
|
1.21
|
%
|
|||||||||||||
Obligations of U.S. Government agencies
|
$
|
-
|
$
|
3,178
|
$
|
3,053
|
$
|
32,327
|
$
|
38,558
|
||||||||||
Weighted average yield
|
-
|
0.90
|
%
|
1.42
|
%
|
0.91
|
%
|
0.95
|
%
|
|||||||||||
Obligations of state and policitcal subdivisions
|
$
|
-
|
$
|
2,853
|
$
|
16,898
|
$
|
46,052
|
$
|
65,803
|
||||||||||
Weighted average yield
|
-
|
3.14
|
%
|
2.44
|
%
|
2.65
|
%
|
2.62
|
%
|
|||||||||||
Mortgage-backed securities
|
$
|
-
|
$
|
6,792
|
$
|
12,832
|
$
|
69,434
|
$
|
89,058
|
||||||||||
Weighted average yield
|
-
|
1.79
|
%
|
2.29
|
%
|
1.65
|
%
|
1.76
|
%
|
|||||||||||
Money market investments
|
$
|
2,413
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,413
|
||||||||||
Weighted average yield
|
0.03
|
%
|
-
|
-
|
-
|
0.03
|
%
|
|||||||||||||
Corporate bonds and other securities
|
$
|
195
|
$
|
518
|
$
|
22,872
|
$
|
-
|
$
|
23,585
|
||||||||||
Weighted average yield
|
2.05
|
%
|
3.44
|
%
|
4.55
|
%
|
-
|
4.50
|
%
|
|||||||||||
Federal Home Loan Bank stock
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
609
|
$
|
609
|
||||||||||
Weighted average yield
|
-
|
-
|
-
|
5.60
|
%
|
5.60
|
%
|
|||||||||||||
Federal Reserve Bank stock
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
383
|
$
|
383
|
||||||||||
Weighted average yield
|
-
|
-
|
-
|
6.00
|
%
|
6.00
|
%
|
|||||||||||||
Community Bankers' Bank stock
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
42
|
$
|
42
|
||||||||||
Weighted average yield
|
-
|
-
|
-
|
0.00
|
%
|
0.00
|
%
|
|||||||||||||
Total Securities
|
$
|
2,608
|
$
|
13,341
|
$
|
70,559
|
$
|
148,847
|
$
|
235,355
|
||||||||||
Weighted average yield
|
0.18
|
%
|
1.80
|
%
|
2.79
|
%
|
1.81
|
%
|
2.09
|
%
|
As of December 31,
|
||||||||
(Dollars in thousands)
|
2021
|
2020
|
||||||
Commercial and industrial
|
$
|
68,690
|
$
|
141,746
|
||||
Real estate-construction
|
58,440
|
43,732
|
||||||
Real estate-mortgage (1)
|
206,368
|
207,536
|
||||||
Real estate-commercial
|
382,603
|
316,851
|
||||||
Consumer
|
118,441
|
118,368
|
||||||
Other
|
8,984
|
8,067
|
||||||
Ending Balance
|
$
|
843,526
|
$
|
836,300
|
(1) |
The real estate-mortgage segment included residential 1-4 family, multi-family, second mortgages and equity lines of credit.
|
As of December 31, 2021
|
||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial and industrial
|
Real estate-construction
|
Real estate-mortgage (1)
|
Real estate-commercial
|
Consumer
|
Other
|
Total
|
|||||||||||||||||||||
Variable Rate:
|
||||||||||||||||||||||||||||
Within 1 year
|
$
|
6,787
|
$
|
33,513
|
$
|
4,813
|
$
|
25,790
|
$
|
1,613
|
$
|
2,657
|
$
|
75,173
|
||||||||||||||
1 to 5 years
|
31,628
|
10,735
|
58,889
|
165,466
|
46,752
|
4,627
|
318,097
|
|||||||||||||||||||||
5 to 15 years
|
21,017
|
454
|
36,540
|
109,754
|
43,064
|
-
|
210,829
|
|||||||||||||||||||||
After 15 years
|
-
|
-
|
40,911
|
6,348
|
12,499
|
326
|
60,084
|
|||||||||||||||||||||
Fixed Rate:
|
||||||||||||||||||||||||||||
Within 1 year
|
$
|
8,457
|
$
|
9,178
|
$
|
35,371
|
$
|
45,047
|
$
|
7,108
|
$
|
986
|
$
|
106,147
|
||||||||||||||
1 to 5 years
|
801
|
2,552
|
9,705
|
25,656
|
463
|
388
|
39,565
|
|||||||||||||||||||||
5 to 15 years
|
-
|
2,008
|
20,139
|
4,542
|
4,286
|
-
|
30,975
|
|||||||||||||||||||||
After 15 years
|
-
|
-
|
-
|
-
|
2,656
|
-
|
2,656
|
|||||||||||||||||||||
$
|
68,690
|
$
|
58,440
|
$
|
206,368
|
$
|
382,603
|
$
|
118,441
|
$
|
8,984
|
$
|
843,526
|
(1) |
The real estate-mortgage segment included residential 1-4 family, multi-family, second mortgages and equity lines of credit.
|
As of December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Nonaccrual loans
|
||||||||
Commercial and industrial
|
$
|
174
|
$
|
-
|
||||
Real estate-mortgage (1)
|
191
|
311
|
||||||
Real estate-commercial
|
113
|
903
|
||||||
Total nonaccrual loans
|
$
|
478
|
$
|
1,214
|
||||
Loans past due 90 days or more and accruing interest
|
||||||||
Commercial and industrial
|
$
|
169
|
$
|
-
|
||||
Consumer loans (2)
|
846
|
744
|
||||||
Other
|
10
|
-
|
||||||
Total loans past due 90 days or more and accruing interest
|
$
|
1,025
|
$
|
744
|
||||
Restructured loans
|
||||||||
Real estate-construction
|
$
|
79
|
$
|
83
|
||||
Real estate-mortgage (1)
|
450
|
492
|
||||||
Real estate-commercial
|
413
|
1,352
|
||||||
Total restructured loans
|
$
|
942
|
$
|
1,927
|
||||
Less nonaccrual restructured loans (included above)
|
191
|
1,120
|
||||||
Less restructured loans currently in compliance (3)
|
751
|
807
|
||||||
Net nonperforming, accruing restructured loans
|
$
|
-
|
$
|
-
|
||||
Nonperforming loans
|
$
|
1,503
|
$
|
1,958
|
||||
Total nonperforming assets
|
$
|
1,503
|
$
|
1,958
|
||||
Interest income that would have been recorded under original loan terms on nonaccrual loans above
|
$
|
11
|
$
|
45
|
||||
Interest income recorded for the period on nonaccrual loans included above
|
$
|
2
|
$
|
34
|
||||
Total loans
|
$
|
843,526
|
$
|
836,300
|
||||
ALLL
|
$
|
9,865
|
$
|
9,541
|
||||
Nonaccrual loans to total loans
|
0.06
|
%
|
0.15
|
%
|
||||
ALLL to total loans
|
1.17
|
%
|
1.14
|
%
|
||||
ALLL to nonaccrual loans
|
2063.81
|
%
|
785.91
|
%
|
||||
For the year ended December 31:
|
||||||||
Provision for loan losses
|
$
|
794
|
$
|
1,000
|
||||
Net charge-offs to average total loans
|
0.06
|
%
|
0.14
|
%
|
(1) |
The real estate-mortgage segment includes residential 1 – 4 family, second mortgages and equity lines of credit.
|
(2) |
Amounts listed include student loans and small business loans with principal and interest amounts that are 97 - 100% guaranteed by the federal government. The past due principal portion
of these guaranteed loans totaled $711 thousand at December 31, 2021 and $547 thousand at December 31, 2020. For additional information, refer to Note 4, Loans and Allowance for Loan Losses of the Notes to Consolidated Financial
Statements included in Item 8, "Financial Statements and Supplementary Data" of this report on Form 10-K.
|
(3) |
Amounts listed represent restructured loans that are in compliance with their modified terms as of the date presented.
|
For the Year ended December 31, 2021
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial
and Industrial
|
Real Estate
Construction
|
Real Estate -
Mortgage (1)
|
Real Estate -
Commercial
|
Consumer
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance, beginning
|
$
|
650
|
$
|
339
|
$
|
2,560
|
$
|
4,434
|
$
|
1,302
|
$
|
123
|
$
|
133
|
$
|
9,541
|
||||||||||||||||
Charge-offs
|
(27
|
)
|
-
|
(14
|
)
|
-
|
(800
|
)
|
(278
|
)
|
-
|
(1,119
|
)
|
|||||||||||||||||||
Recoveries
|
41
|
-
|
76
|
44
|
390
|
98
|
-
|
649
|
||||||||||||||||||||||||
Provision for loan losses
|
19
|
120
|
(232
|
)
|
309
|
470
|
241
|
(133
|
)
|
794
|
||||||||||||||||||||||
Ending Balance
|
$
|
683
|
$
|
459
|
$
|
2,390
|
$
|
4,787
|
$
|
1,362
|
$
|
184 |
$
|
-
|
$
|
9,865
|
||||||||||||||||
Average loans
|
101,016
|
52,811
|
199,904
|
356,643
|
117,343
|
7,911
|
835,628
|
|||||||||||||||||||||||||
Ratio of net charge-offs to average loans
|
-0.01 |
%
|
0.00
|
%
|
-0.03
|
%
|
-0.01
|
%
|
0.35
|
%
|
2.28
|
%
|
0.06
|
%
|
For the Year ended December 31, 2020
|
||||||||||||||||||||||||||||||||
(Dollars in thousands)
|
Commercial and
Industrial
|
Real Estate
Construction
|
Real Estate -
Mortgage (1)
|
Real Estate -
Commercial
|
Consumer
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance, beginning
|
$
|
1,244
|
$
|
258
|
$
|
2,505
|
$
|
3,663
|
$
|
1,694
|
$
|
296
|
$
|
-
|
$
|
9,660
|
||||||||||||||||
Charge-offs
|
(25
|
)
|
-
|
(149
|
)
|
(654
|
)
|
(822
|
)
|
(355
|
)
|
-
|
(2,005
|
)
|
||||||||||||||||||
Recoveries
|
47
|
10
|
69
|
317
|
377
|
66
|
-
|
886
|
||||||||||||||||||||||||
Provision for loan losses
|
(616
|
)
|
71
|
135
|
1,108
|
53
|
116
|
133
|
1,000
|
|||||||||||||||||||||||
Ending Balance
|
$
|
650
|
$
|
339
|
$
|
2,560
|
$
|
4,434
|
$
|
1,302
|
$
|
123
|
$
|
133
|
$
|
9,541
|
||||||||||||||||
Average loans
|
140,818
|
40,967
|
209,102
|
301,563
|
123,694
|
10,337
|
826,481
|
|||||||||||||||||||||||||
Ratio of net charge-offs to average loans
|
-0.02
|
%
|
-0.02
|
%
|
0.04
|
%
|
0.11
|
%
|
0.36
|
%
|
2.80
|
%
|
0.14
|
%
|
(1) |
The real estate-mortgage segment included residential 1-4 family, multi-family, second mortgages and equity lines of credit.
|
As of December 31,
|
||||||||||||||||
2021
|
2020
|
|||||||||||||||
(Dollars in thousands)
|
Amount
|
Percent of
Loans to
Total
Loans
|
Amount
|
Percent of
Loans to
Total
Loans
|
||||||||||||
Commercial and industrial
|
$
|
698
|
8.14
|
%
|
$
|
650
|
16.95
|
%
|
||||||||
Real estate-construction
|
459
|
6.93
|
%
|
339
|
5.23
|
%
|
||||||||||
Real estate-mortgage (1)
|
2,390
|
24.46
|
%
|
2,560
|
24.82
|
%
|
||||||||||
Real estate-commercial
|
4,787
|
45.36
|
%
|
4,434
|
37.89
|
%
|
||||||||||
Consumer
|
1,362
|
14.04
|
%
|
1,302
|
14.15
|
%
|
||||||||||
Other
|
169
|
1.07
|
%
|
123
|
0.96
|
%
|
||||||||||
Unallocated
|
-
|
-
|
|
133
|
-
|
|||||||||||
Ending Balance
|
$
|
9,865
|
100.00
|
%
|
$
|
9,541
|
100.00
|
%
|
(1) |
The real estate-mortgage segment included residential 1-4 family, multi-family, second mortgages and equity lines of credit.
|
Years ended December 31,
|
||||||||||||||||||||||||
2021
|
2020
|
2019
|
||||||||||||||||||||||
(Dollars in thousands)
|
Average
Balance
|
Average
Rate
|
Average
Balance
|
Average
Rate
|
Average
Balance
|
Average
Rate
|
||||||||||||||||||
Interest-bearing transaction
|
$
|
71,841
|
0.02
|
%
|
$
|
55,667
|
0.02
|
%
|
$
|
32,603
|
0.03
|
%
|
||||||||||||
Money market
|
372,193
|
0.24
|
%
|
307,190
|
0.33
|
%
|
257,884
|
0.40
|
%
|
|||||||||||||||
Savings
|
114,285
|
0.04
|
%
|
96,149
|
0.06
|
%
|
86,787
|
0.10
|
%
|
|||||||||||||||
Time deposits
|
180,255
|
1.08
|
%
|
209,727
|
1.59
|
%
|
231,774
|
1.66
|
%
|
|||||||||||||||
Total interest bearing
|
738,574
|
0.39
|
%
|
668,733
|
0.66
|
%
|
609,048
|
0.82
|
%
|
|||||||||||||||
Demand
|
391,673
|
325,596
|
245,518
|
|||||||||||||||||||||
Total deposits
|
$
|
1,130,247
|
$
|
994,329
|
$
|
854,566
|
As of December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Maturing in:
|
||||||||
Within 3 months
|
$
|
17,994
|
$
|
15,916
|
||||
4 through 6 months
|
2,330
|
2,934
|
||||||
7 through 12 months
|
9,476
|
6,348
|
||||||
Greater than 12 months
|
10,123
|
19,177
|
||||||
$
|
39,923
|
$
|
44,375
|
2021
Regulatory
Minimums
|
December 31, 2021
|
2020
Regulatory
Minimums
|
December 31, 2020
|
|||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets
|
4.500
|
%
|
12.57
|
%
|
4.500
|
%
|
11.69
|
%
|
||||||||
Tier 1 Capital to Risk-Weighted Assets
|
6.000
|
%
|
12.57
|
%
|
6.000
|
%
|
11.69
|
%
|
||||||||
Tier 1 Leverage to Average Assets
|
4.000
|
%
|
9.09
|
%
|
4.000
|
%
|
8.56
|
%
|
||||||||
Total Capital to Risk-Weighted Assets
|
8.000
|
%
|
13.61
|
%
|
8.000
|
%
|
12.77
|
%
|
||||||||
Capital Conservation Buffer
|
2.500
|
%
|
5.61
|
%
|
2.500
|
%
|
4.77
|
%
|
||||||||
Risk-Weighted Assets (in thousands)
|
$
|
952,218
|
$
|
890,091
|
December 31,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
(dollars in thousands)
|
Total
|
In Use
|
Available
|
Total
|
In Use
|
Available
|
||||||||||||||||||
Sources:
|
||||||||||||||||||||||||
Federal funds lines of credit
|
$
|
115,000
|
$
|
-
|
$
|
115,000
|
$
|
100,000
|
$
|
-
|
$
|
100,000
|
||||||||||||
Federal Home Loan Bank advances
|
391,287
|
-
|
391,287
|
374,743
|
-
|
374,743
|
||||||||||||||||||
Federal funds sold & balances at the Federal Reserve
|
159,346
|
93,727
|
||||||||||||||||||||||
Securities, available for sale and unpledged at fair value
|
172,562
|
112,229
|
||||||||||||||||||||||
Total short-term funding sources
|
$
|
838,195
|
$
|
680,699
|
||||||||||||||||||||
Uses: (1)
|
||||||||||||||||||||||||
Unfunded loan commitments and lending lines of credit
|
69,215
|
71,742
|
||||||||||||||||||||||
Letters of credit
|
1,085
|
1,452
|
||||||||||||||||||||||
Total potential short-term funding uses
|
70,300
|
73,194
|
||||||||||||||||||||||
Liquidity coverage ratio
|
1192.3
|
%
|
930.0
|
%
|
Years Ended December 31,
|
||||||||
(dollar in thousands, except per share data)
|
2021
|
2020
|
||||||
Fully Taxable Equivalent Net Interest Income
|
||||||||
Net interest income (GAAP)
|
$
|
38,794
|
$
|
34,717
|
||||
FTE adjustment
|
248
|
187
|
||||||
Net interest income (FTE) (non-GAAP)
|
$
|
39,042
|
$
|
34,904
|
||||
Noninterest income (GAAP)
|
14,885
|
14,698
|
||||||
Total revenue (FTE) (non-GAAP)
|
$
|
53,927
|
$
|
49,602
|
||||
Noninterest expense (GAAP)
|
43,149
|
42,505
|
||||||
Average earning assets
|
$
|
1,197,028
|
$
|
1,092,567
|
||||
Net interest margin
|
3.24
|
%
|
3.18
|
%
|
||||
Net interest margin (FTE) (non-GAAP)
|
3.26
|
%
|
3.19
|
%
|
||||
Tangible Book Value Per Share
|
||||||||
Total Stockholders Equity (GAAP)
|
$
|
120,818
|
$
|
117,145
|
||||
Less goodwill
|
1,650
|
1,650
|
||||||
Less core deposit intangible
|
275
|
319
|
||||||
Tangible Stockholders Equity (non-GAAP)
|
$
|
118,893
|
$
|
115,176
|
||||
Shares issued and outstanding
|
5,239,707
|
5,224,019
|
||||||
Book value per share
|
$
|
23.06
|
$
|
22.42
|
||||
Tangible book value per share
|
$
|
22.69
|
$
|
22.05
|
||||
ALLL as a Percentage of Loans Held for Investment
|
||||||||
Loans held for investment (net of deferred fees and costs) (GAAP)
|
$
|
843,526
|
$
|
836,300
|
||||
Less PPP originations
|
19,008
|
85,983
|
||||||
Loans held for investment, (net of deferred fees and costs), excluding PPP (non-GAAP)
|
$
|
824,518
|
$
|
750,317
|
||||
ALLL
|
$
|
9,865
|
$
|
9,541
|
||||
ALLL as a Percentage of Loans Held for Investment
|
1.17
|
%
|
1.14
|
%
|
||||
ALLL as a Percentage of Loans Held for Investment, net of PPP originations
|
1.20
|
%
|
1.27
|
%
|
Item 7A. |
Quantitative and Qualitative Disclosures About Market Risk
|
Item 8. |
Financial Statements and Supplementary Data
|
• |
Obtaining an understanding of controls over the evaluation of qualitative factors, including management's development and review of the data inputs used as the basis
for the allocation factors and management's review and approval of the reasonableness of the assumptions used to develop the qualitative adjustments
|
• |
Substantively testing management’s process, including evaluating their judgments and assumptions for developing the qualitative factors, which included:
|
• |
Evaluating the completeness and accuracy of data inputs used as a basis for the qualitative adjustment factors.
|
• |
Evaluating the reasonableness of management’s judgments related to the determination of qualitative adjustment factors.
|
• |
Evaluating the qualitative adjustment factors for directional consistency and for reasonableness.
|
• |
Testing the mathematical accuracy of the allowance calculation, including the application of the qualitative adjustment factors.
|
December 31, |
December 31,
|
|||||||
(dollars in thousands, except share data)
|
2021
|
2020
|
||||||
Assets
|
||||||||
Cash and due from banks
|
$
|
|
$
|
|
||||
Interest-bearing due from banks
|
|
|
||||||
Federal funds sold
|
|
|
||||||
Cash and cash equivalents
|
|
|
||||||
Securities available-for-sale, at fair value
|
|
|
||||||
Restricted securities, at cost
|
|
|
||||||
Loans held for sale
|
|
|
||||||
Loans, net
|
|
|
||||||
Premises and equipment, net
|
|
|
||||||
Premises and equipment, held for sale
|
|
|
||||||
Bank-owned life insurance
|
|
|
||||||
Goodwill
|
|
|
||||||
Core deposit intangible, net
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities & Stockholders’ Equity
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing deposits
|
$
|
|
$
|
|
||||
Savings deposits
|
|
|
||||||
Time deposits
|
|
|
||||||
Total deposits
|
|
|
||||||
Overnight repurchase agreements
|
|
|
||||||
Federal Reserve Bank borrowings
|
|
|
||||||
Long term borrowings
|
|
|
||||||
Accrued expenses and other liabilities
|
|
|
||||||
Total liabilities
|
|
|
||||||
Stockholders’ equity:
|
||||||||
Common stock, $
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income, net
|
|
|
||||||
Total stockholders’ equity
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Years Ended
December 31,
|
||||||||
(dollars in thousands, except per share data)
|
2021
|
2020
|
||||||
Interest and Dividend Income:
|
||||||||
Loans, including fees
|
$
|
|
$
|
|
||||
Due from banks
|
|
|
||||||
Federal funds sold
|
|
|
||||||
Securities:
|
||||||||
Taxable
|
|
|
||||||
Tax-exempt
|
|
|
||||||
Dividends and interest on all other securities
|
|
|
||||||
Total interest and dividend income
|
|
|
||||||
Interest Expense:
|
||||||||
Checking and savings deposits
|
|
|
||||||
Time deposits
|
|
|
||||||
Federal funds purchased, securities sold under agreements to repurchase and other borrowings
|
|
|
||||||
Long term borrowings | ||||||||
Federal Home Loan Bank advances
|
|
|
||||||
Total interest expense
|
|
|
||||||
Net interest income
|
|
|
||||||
Provision for loan losses
|
|
|
||||||
Net interest income after provision for loan losses
|
|
|
||||||
Noninterest Income:
|
||||||||
Fiduciary and asset management fees
|
|
|
||||||
Service charges on deposit accounts
|
|
|
||||||
Other service charges, commissions and fees
|
|
|
||||||
Bank-owned life insurance income
|
|
|
||||||
Mortgage banking income
|
|
|
||||||
Gain on sale of available-for-sale securities, net
|
|
|
||||||
Gain on sale of fixed assets
|
|
|
||||||
Other operating income
|
|
|
||||||
Total noninterest income
|
|
|
||||||
Noninterest Expense:
|
||||||||
Salaries and employee benefits
|
|
|
||||||
Occupancy and equipment
|
|
|
||||||
Data processing
|
|
|
||||||
Customer development
|
|
|
||||||
Professional services
|
|
|
||||||
Employee professional development
|
|
|
||||||
Other taxes
|
|
|
||||||
ATM and other losses
|
|
|
||||||
Loss on extinguishment of borrowings
|
|
|
||||||
(Gain) on other real estate owned
|
|
(
|
)
|
|||||
Loss on sale of loans
|
|
|
||||||
Other operating expenses
|
|
|
||||||
Total noninterest expense
|
|
|
||||||
Income before income taxes
|
|
|
||||||
Income tax expense
|
|
|
||||||
Net income
|
$
|
|
$
|
|
||||
Basic Earnings per Share:
|
||||||||
Weighted average shares outstanding
|
|
|
||||||
Net income per share of common stock
|
$
|
|
$
|
|
||||
Diluted Earnings per Share:
|
||||||||
Weighted average shares outstanding
|
|
|
||||||
Net income per share of common stock
|
$
|
|
$
|
|
Years Ended
December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Net income
|
$
|
|
$
|
|
||||
Other comprehensive income (loss), net of tax
|
||||||||
Net unrealized gain (loss) on available-for-sale securities
|
(
|
)
|
|
|||||
Reclassification for gain included in net income
|
|
(
|
)
|
|||||
Other comprehensive income (loss), net of tax
|
(
|
)
|
|
|||||
Comprehensive income
|
$
|
|
$
|
|
(dollars in thousands, except share and per share data)
|
Shares of
Common
Stock
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
||||||||||||||||||
YEAR ENDED DECEMBER 31, 2021
|
||||||||||||||||||||||||
Balance at December 31, 2020
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive loss, net of tax
|
-
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Employee Stock Purchase Plan share issuance
|
|
|
|
|
|
|
||||||||||||||||||
Common stock purchased | ( |
) | ( |
) | ( |
) | ( |
) | ||||||||||||||||
Restricted stock vested
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
||||||||||||||||||
Cash dividends ($
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at end of period
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||
YEAR ENDED DECEMBER 31, 2020
|
||||||||||||||||||||||||
Balance at December 31, 2019
|
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
||||||||||||
Net income
|
-
|
|
|
|
|
|
||||||||||||||||||
Other comprehensive income, net of tax
|
-
|
|
|
|
|
|
||||||||||||||||||
Employee Stock Purchase Plan share issuance
|
|
|
|
|
|
|
||||||||||||||||||
Restricted stock vested
|
|
|
(
|
)
|
|
|
|
|||||||||||||||||
Stock-based compensation expense
|
-
|
|
|
|
|
|
||||||||||||||||||
Cash dividends ($
|
-
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Balance at end of period
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||
(unaudited dollars in thousands)
|
2021
|
2020
|
||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
|
||||||||
Depreciation and amortization
|
|
|
||||||
Amortization of right of use lease asset
|
|
|
||||||
Accretion related to acquisition, net
|
(
|
)
|
(
|
)
|
||||
Amortization of subordinated debt issuance costs | ||||||||
Provision for loan losses
|
|
|
||||||
Gain on sale of securities, net
|
|
(
|
)
|
|||||
Net amortization of securities
|
|
|||||||
Decrease (increase) in loans held for sale, net
|
|
(
|
)
|
|||||
Net (gain) loss on disposal of premises and equipment
|
|
(
|
)
|
|||||
Net gain on write-down/sale of other real estate owned
|
|
(
|
)
|
|||||
Income from bank owned life insurance
|
(
|
)
|
(
|
)
|
||||
Stock compensation expense
|
|
|
||||||
Deferred tax expense (benefit)
|
|
(
|
)
|
|||||
Decrease in other assets
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in accrued expenses and other liabilities
|
|
(
|
)
|
|||||
Net cash provided by (used in) operating activities
|
|
(
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Purchases of available-for-sale securities
|
(
|
)
|
(
|
)
|
||||
Proceeds from redemption (purchase) of restricted securities, net
|
|
|
||||||
Proceeds from maturities and calls of available-for-sale securities
|
|
|
||||||
Proceeds from sales of available-for-sale securities
|
|
|
||||||
Paydowns on available-for-sale securities
|
|
|
||||||
Net increase in loans held for investment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sales of other real estate owned
|
|
|
||||||
Purchases of premises and equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds from sale of premises and equipment
|
|
|
||||||
Net cash used in investing activities
|
(
|
)
|
(
|
)
|
||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Increase in noninterest-bearing deposits
|
|
|
||||||
Increase in savings deposits
|
|
|
||||||
Decrease in time deposits
|
(
|
)
|
(
|
)
|
||||
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net
|
(
|
)
|
(
|
)
|
||||
Increase in Federal Home Loan Bank advances
|
|
|
||||||
Repayment of Federal Home Loan Bank advances
|
|
(
|
)
|
|||||
Increase in Federal Reserve Bank borrowings
|
|
|
||||||
Repayment of Federal Reserve Bank borrowings
|
(
|
)
|
(
|
)
|
||||
Increase in long term borrowings |
||||||||
Proceeds from ESPP issuance
|
|
|
||||||
Repurchase of common stock |
( |
) | ||||||
Cash dividends paid on common stock
|
(
|
)
|
(
|
)
|
||||
Net cash provided by financing activities
|
|
|
||||||
Net increase in cash and cash equivalents
|
|
|
||||||
Cash and cash equivalents at beginning of period
|
|
|
||||||
Cash and cash equivalents at end of period
|
$
|
|
$
|
|
||||
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
|
||||||||
Cash payments for:
|
||||||||
Interest
|
$
|
|
$
|
|
||||
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS
|
||||||||
Unrealized (loss) gain on securities available-for-sale
|
$
|
(
|
)
|
$
|
|
|||
Loans transferred to other real estate owned
|
$
|
|
$
|
|
||||
Former bank property transferred from fixed assets to held for sale assets
|
$
|
|
$
|
|
||||
Right of use lease asset and liability
|
$
|
|
$
|
|
||||
Receivable for BOLI death benefit |
$ | $ |
• |
Management determines the asset to be uncollectible;
|
• |
Repayment is deemed to be protracted beyond reasonable time frames;
|
• |
The asset has been classified as a loss by either the internal loan review process or external examiners;
|
• |
The borrower has filed for bankruptcy protection and the loss becomes evident due to a lack of borrower assets; or
|
• |
The loan is 120 days or more past due unless the loan is both well secured and in the process of collection.
|
• |
Commercial and industrial: Commercial loans carry risks associated with the successful operation of a business or project, in addition to other risks associated with the
ownership of a business. The repayment of these loans may be dependent upon the profitability and cash flows of the business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over
time and cannot be appraised with as much precision.
|
• |
Real estate-construction: Construction loans carry risks that the project will not be finished according to schedule, the project will not be finished according to budget and
the value of the collateral may at any point in time be less than the principal amount of the loan. Construction loans also bear the risk that the general contractor, who may or may not be the loan customer, may be unable to finish the
construction project as planned because of financial pressure unrelated to the project.
|
• |
Real estate-mortgage: Residential mortgage loans and equity lines of credit carry risks associated with the continued credit-worthiness of the borrower and changes in the
value of the collateral.
|
• |
Real estate-commercial: Commercial real estate loans carry risks associated with the successful operation of a business if owner occupied. If non-owner occupied, the repayment
of these loans may be dependent upon the profitability and cash flow from rent receipts.
|
• |
Consumer loans: Consumer loans carry risks associated with the continued credit-worthiness of the borrowers and the value of the collateral. Consumer
loans are more likely than real estate loans to be immediately adversely affected by job loss, divorce, illness or personal bankruptcy.
|
• |
Other loans: Other loans are loans to mortgage companies, loans for purchasing or carrying securities, and loans to insurance, investment and finance
companies. These loans carry risks associated with the successful operation of a business. In addition, there is risk associated with the value of collateral other than real estate which may depreciate over time, depend on interest rates or
fluctuate in active trading markets.
|
December 31, 2021
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
(Losses)
|
Value
|
||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||
Obligations of U.S. Government agencies
|
|
|
(
|
)
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
|
(
|
)
|
|
|||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2020
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
(Dollars in thousands)
|
Cost
|
Gains
|
(Losses)
|
Value
|
||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of U.S. Government agencies
|
|
|
(
|
)
|
|
|||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
(
|
)
|
|
|||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
(
|
)
|
|
|||||||||||
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
December 31, 2021
|
||||||||
Amortized
|
Fair
|
|||||||
(Dollars in thousands)
|
Cost
|
Value
|
||||||
Due in one year or less
|
$
|
|
$
|
|
||||
Due after one year through five years
|
|
|
||||||
Due after five through ten years
|
|
|
||||||
Due after ten years
|
|
|
||||||
Other securities, restricted
|
|
|
||||||
$
|
|
$
|
|
Year Ended
December 31,
|
||||||||
(Dollars in thousands)
|
2021
|
2020
|
||||||
Securities Available-for-sale
|
||||||||
Realized gains on sales of securities
|
$
|
|
$
|
|
||||
Realized losses on sales of securities
|
|
(
|
)
|
|||||
Net realized gain
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||||||||
(Dollars in thousands)
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
||||||||||||||||||
U.S. Treasury securities |
$ |
$ |
$ |
$ |
$ |
$ |
||||||||||||||||||
Obligations of U.S. Government agencies
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions |
||||||||||||||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Corporate bonds and other securities
|
|
|
|
|
|
|
||||||||||||||||||
Total securities available-for-sale
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2020
|
||||||||||||||||||||||||
Less than 12 months
|
12 months or more
|
Total
|
||||||||||||||||||||||
Gross
|
Gross
|
Gross
|
||||||||||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||||||||
(Dollars in thousands)
|
Losses
|
Value
|
Losses
|
Value
|
Losses
|
Value
|
||||||||||||||||||
Obligations of U.S. Government agencies
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
|
|
||||||||||||||||||
Corporate bonds and other securities
|
|
|
|
|
|
|
||||||||||||||||||
Total securities available-for-sale
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(dollars in thousands)
|
December 31, 2021
|
December 31, 2020
|
||||||
Mortgage loans on real estate:
|
||||||||
Residential 1-4 family
|
$
|
|
$
|
|
||||
Commercial - owner occupied
|
|
|
||||||
Commercial - non-owner occupied
|
|
|
||||||
Multifamily
|
|
|
||||||
Construction
|
|
|
||||||
Second mortgages
|
|
|
||||||
Equity lines of credit
|
|
|
||||||
Total mortgage loans on real estate
|
|
|
||||||
Commercial and industrial loans
|
|
|
||||||
Consumer automobile loans
|
|
|
||||||
Other consumer loans
|
|
|
||||||
Other (1)
|
|
|
||||||
Total loans, net of deferred fees
|
|
|
||||||
Less: Allowance for loan losses
|
|
|
||||||
Loans, net of allowance and deferred fees (2)
|
$
|
|
$
|
|
(1) |
|
(2) |
|
(dollars in thousands)
|
December 31, 2021
|
December 31, 2020
|
||||||
Outstanding principal balance
|
$
|
|
$
|
|
||||
Carrying amount
|
|
|
(dollars in thousands)
|
December 31, 2021
|
December 31, 2020
|
||||||
Balance at January 1
|
$
|
|
$
|
|
||||
Accretion
|
|
(
|
)
|
|||||
Other changes, net
|
|
|
||||||
Balance at end of period
|
$
|
|
$
|
|
• |
Pass: Loans are of acceptable risk.
|
• |
Other Assets Especially Mentioned (OAEM): Loans have potential weaknesses that deserve management’s close attention.
|
• |
Substandard: Loans reflect significant deficiencies due to several adverse trends of a financial, economic or managerial nature.
|
• |
Doubtful: Loans have all the weaknesses inherent in a substandard loan with added characteristics that make collection or liquidation in full based on currently existing
facts, conditions and values highly questionable or improbable.
|
• |
Loss: Loans have been identified for charge-off because they are considered uncollectible and of such little value that their continuance as bankable assets is not warranted.
|
Credit Quality Information
|
||||||||||||||||||||
As of December 31, 2021
|
||||||||||||||||||||
(dollars in thousands)
|
Pass
|
OAEM
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|||||||||||||||
Multifamily
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Second mortgages
|
|
|
|
|
|
|||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|||||||||||||||
Other consumer loans
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Credit Quality Information
|
||||||||||||||||||||
As of December 31, 2020
|
||||||||||||||||||||
(dollars in thousands)
|
Pass
|
OAEM
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|||||||||||||||
Multifamily
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Second mortgages
|
|
|
|
|
|
|||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|||||||||||||||
Other consumer loans
|
|
|
|
|
|
|||||||||||||||
Other
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(dollars in thousands)
|
30 - 59
Days Past
Due
|
60 - 89
Days Past
Due
|
90 or More
Days Past
Due and
still
Accruing
|
Nonaccrual (2)
|
Total
Current
Loans (1)
|
Total
Loans |
||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
Multifamily
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
(dollars in thousands)
|
30 - 59
Days Past
Due
|
60 - 89
Days Past
Due
|
90 or More
Days Past
Due and
still
Accruing
|
Nonaccrual (2)
|
Total
Current
Loans (1)
|
Total
Loans |
||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial - owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
Commercial - non-owner occupied
|
|
|
|
|
|
|
||||||||||||||||||
Multifamily
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Equity lines of credit
|
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer automobile loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Other
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
For purposes of this table, Total Current Loans includes loans that are 1 - 29 days past due.
|
(2) |
For purposes of this table, if a loan is past due and on nonaccrual, it is included in the nonaccural column and not also in its respective past due column.
|
(dollars in thousands)
|
December 31, 2021
|
December 31, 2020
|
||||||
Mortgage loans on real estate:
|
||||||||
Residential 1-4 family
|
$
|
|
$
|
|
||||
Commercial - owner occupied
|
|
|
||||||
Commercial - non-owner occupied
|
|
|
||||||
Total mortgage loans on real estate
|
|
|
|
|
||||
Commercial and industrial loans
|
|
|
||||||
Consumer loans |
||||||||
Total
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||
(dollars in thousand)
|
2021
|
2020
|
||||||
Interest income that would have been recorded under original loan terms
|
$
|
|
$
|
|
||||
Actual interest income recorded for the period
|
|
|
||||||
Reduction in interest income on nonaccrual loans
|
$
|
|
$
|
|
For the Year Ended
|
||||||||||||||||||||||||
As of December 31, 2021
|
December 31, 2021
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Unpaid Principal
Balance
|
Without
Valuation
Allowance
|
With Valuation
Allowance
|
Associated
Allowance
|
Average
Recorded
Investment
|
Interest Income
Recognized
|
||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
For the Year Ended
|
||||||||||||||||||||||||
As of December 31, 2020
|
December 31, 2020
|
|||||||||||||||||||||||
(Dollars in thousands)
|
Unpaid Principal
Balance
|
Without
Valuation
Allowance
|
With Valuation
Allowance
|
Associated
Allowance
|
Average
Recorded
Investment
|
Interest Income
Recognized
|
||||||||||||||||||
Mortgage loans on real estate:
|
||||||||||||||||||||||||
Residential 1-4 family
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Second mortgages
|
|
|
|
|
|
|
||||||||||||||||||
Total mortgage loans on real estate
|
|
|
|
|
|
|
||||||||||||||||||
Commercial and industrial loans
|
|
|
|
|
|
|
||||||||||||||||||
Other consumer loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Commercial and Industrial
|
Real Estate Construction
|
Real Estate - Mortgage (1)
|
Real Estate - Commercial
|
Consumer (2)
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance, beginning
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Charge-offs
|
(
|
)
|
|
(
|
)
|
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision for loan losses
|
|
|
(
|
)
|
|
|
|
(
|
)
|
|
||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans Balances:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(Dollars in thousands)
|
Commercial and Industrial
|
Real Estate Construction
|
Real Estate - Mortgage (1)
|
Real Estate - Commercial
|
Consumer (2)
|
Other
|
Unallocated
|
Total
|
||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||
Balance, beginning
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Charge-offs
|
(
|
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Provision for loan losses
|
(
|
)
|
|
|
|
|
|
|
|
|||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Individually evaluated for impairment
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||
Loans Balances:
|
||||||||||||||||||||||||||||||||
Individually evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Collectively evaluated for impairment
|
|
|
|
|
|
|
|
|
||||||||||||||||||||||||
Ending Balance
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
(1) |
|
(2) |
|
Years Ended December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Balance at beginning of year
|
$
|
|
$
|
|
||||
Transfers to OREO due to foreclosure
|
|
|
||||||
Properties sold
|
|
(
|
)
|
|||||
Balance at end of year
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Net gain on sales of real estate
|
$
|
|
$
|
|
||||
Operating expenses, net of income (1)
|
|
(
|
)
|
|||||
Total Income
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Land
|
$
|
|
$
|
|
||||
Buildings
|
|
|
||||||
Construction in process
|
|
|
||||||
Leashold improvements
|
|
|
||||||
Furniture, fixtures and equipment
|
|
|
||||||
|
|
|||||||
Less accumulated depreciation and amortization
|
|
|
||||||
Balance at end of year
|
$
|
|
$
|
|
(dollars in thousands)
|
December 31, 2021
|
|||
Lease liabilities
|
$
|
|
||
Right-of-use assets
|
$
|
|
||
Weighted average remaining lease term
|
|
|||
Weighted average discount rate
|
|
%
|
Years Ended December 31,
|
||||||||
Lease cost (in thousands)
|
2021
|
2020
|
||||||
Operating lease cost
|
$
|
|
$
|
|
||||
Total lease cost
|
$
|
|
$
|
|
||||
Cash paid for amounts included in the measurement of lease liabilities
|
$
|
|
$
|
|
Lease payments due (in thousands)
|
As of
December 31, 2021 |
|||
Twelve months ending December 31, 2022
|
$
|
|
||
Twelve months ending December 31, 2023
|
|
|||
Twelve months ending December 31, 2024
|
|
|||
Twelve months ending December 31, 2025
|
||||
Thereafter
|
|
|||
Total undiscounted cash flows
|
$
|
|
||
Discount
|
(
|
)
|
||
Lease liabilities
|
$
|
|
Years Ended
|
||||||||
December 31,
|
||||||||
2021
|
2020
|
|||||||
Tax credits and other benefits
|
||||||||
Amortization of operating losses
|
$
|
|
$
|
|
||||
Tax benefit of operating losses*
|
|
|
||||||
Tax credits
|
|
|
||||||
Total tax benefits
|
$
|
|
$
|
|
|
(dollars in thousands)
|
||||
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Balance at end of year
|
$
|
|
(dollar in thousands)
|
December 31, 2021
|
December 31, 2020
|
||||||
Overnight repurchase agreements
|
$
|
|
$
|
|
||||
Total short-term borrowings
|
$
|
|
$
|
|
||||
Maximum month-end outstanding balance
|
$
|
|
$
|
|
||||
Average outstanding balance during the period
|
$
|
|
$
|
|
||||
Average interest rate (year-to-date)
|
|
%
|
|
%
|
||||
Average interest rate at end of period
|
|
%
|
|
%
|
Weighted Average
|
||||||||
Grant Date
|
||||||||
Shares
|
Fair Value
|
|||||||
Nonvested, January 1, 2021
|
|
$
|
|
|||||
Issued
|
|
|
||||||
Vested
|
(
|
)
|
|
|||||
Forfeited
|
(
|
)
|
|
|||||
Nonvested, December 31, 2021
|
|
$
|
|
(dollars in thousands)
|
Years Ended
December 31,
|
Affected Line Item on
|
|||||||
2021 |
2020 |
Consolidated Statement of Income | |||||||
Available-for-sale securities
|
|||||||||
Realized gains on sales of securities
|
$
|
|
$
|
|
Gain on sale of available-for-sale securities, net
|
||||
Tax effect
|
|
|
Income tax expense
|
||||||
$
|
|
$
|
|
(dollars in thousands)
|
Unrealized Gains (Losses) on Available-for-Sale Securities
|
Accumulated Other Comprehensive Income
|
||||||
Year Ended December 31, 2021
|
||||||||
Balance at beginning of period
|
$
|
|
$
|
|
||||
Net other comprehensive loss
|
(
|
)
|
(
|
)
|
||||
Balance at end of period
|
$
|
|
$
|
|
||||
Year Ended December 31, 2020
|
||||||||
Balance at beginning of period
|
$
|
(
|
)
|
$
|
(
|
)
|
||
Net other comprehensive income
|
|
|
||||||
Balance at end of period
|
$
|
|
$
|
|
Years Ended December 31, 2021
|
||||||||||||
(dollars in thousands)
|
Pretax
|
Tax
|
Net-of-Tax
|
|||||||||
Unrealized losses on available-for-sale securities:
|
||||||||||||
Unrealized holding losses arising during the period
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
|||
Total change in accumulated other comprehensive income, net
|
$
|
(
|
)
|
$
|
(
|
)
|
$
|
(
|
)
|
Years Ended December 31, 2020
|
||||||||||||
(dollars in thousands)
|
Pretax
|
Tax
|
Net-of-Tax
|
|||||||||
Unrealized gains on available-for-sale securities:
|
||||||||||||
Unrealized holding gains arising during the period
|
$
|
|
$
|
|
$
|
|
||||||
Reclassification adjustment for gains recognized in income
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||
|
||||||||||||
Total change in accumulated other comprehensive income, net
|
$
|
|
$
|
|
$
|
|
(dollars in thousands except per share data)
|
Net Income Available to Common Shareholders (Numerator)
|
Weighted Average Common Shares (Denominator)
|
Per Share Amount
|
|||||||||
Year Ended December 31, 2021
|
||||||||||||
Net income, basic
|
$
|
|
|
$
|
|
|||||||
Potentially dilutive common shares - employee stock purchase program
|
-
|
|
-
|
|||||||||
Diluted
|
$
|
|
|
$
|
|
|||||||
Year Ended December 31, 2020
|
||||||||||||
Net income, basic
|
$
|
|
|
$
|
|
|||||||
Potentially dilutive common shares - employee stock purchase program
|
-
|
|
-
|
|||||||||
Diluted
|
$
|
|
|
$
|
|
(dollars in thousands)
|
2021
|
2020
|
||||||
Balance, beginning of year
|
$
|
|
$
|
|
||||
Additions
|
|
|
||||||
Reductions
|
(
|
)
|
(
|
)
|
||||
Balance, end of year
|
$
|
|
$
|
|
(dollars in thousands)
|
2021
|
2020
|
||||||
Current income tax expense
|
$
|
|
$
|
|
||||
Deferred income tax expense (benefit)
|
|
(
|
)
|
|||||
Reported income tax expense
|
$
|
|
$
|
|
Years Ended December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Expected tax expense
|
$
|
|
$
|
|
||||
Interest expense on tax-exempt assets
|
|
|
||||||
Low-income housing tax credit
|
(
|
)
|
(
|
)
|
||||
Tax-exempt interest, net
|
(
|
)
|
(
|
)
|
||||
Bank-owned life insurance
|
(
|
)
|
(
|
)
|
||||
Other, net
|
|
|
||||||
Reported tax expense
|
$
|
|
$
|
|
(dollars in thousands)
|
2021
|
2020
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$
|
|
$
|
|
||||
Nonaccrual loans
|
|
|
||||||
Acquisition accounting
|
|
|
||||||
Net operating losses
|
|
|
||||||
Investments in pass-through entities
|
|
|
||||||
Bank owned life insurance benefit
|
|
|
||||||
Securities available-for-sale
|
|
|
||||||
Stock awards
|
|
|
||||||
Deferred compensation
|
|
|
||||||
Deferred loan fees and costs
|
|
|
||||||
Other
|
|
|
||||||
$
|
|
$
|
|
|||||
Deferred tax liabilities:
|
||||||||
Premises and equipment
|
$
|
|
$
|
|
||||
Acquisition accounting
|
|
|
||||||
Deferred loan fees and costs
|
|
|
||||||
Securities available-for-sale
|
|
|
||||||
|
|
|||||||
Net deferred tax assets
|
$
|
|
$
|
|
December 31,
|
||||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Commitments to extend credit:
|
||||||||
Home equity lines of credit
|
$
|
|
$
|
|
||||
Commercial real estate, construction and development loans committed but not funded
|
|
|
||||||
Other lines of credit (principally commercial)
|
|
|
||||||
Total
|
$
|
|
$
|
|
||||
Letters of credit
|
$
|
|
$
|
|
Level 1 –
|
Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and
liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.
|
Level 2 –
|
Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on
quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.
|
Level 3 –
|
Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and
liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management
judgment or estimation.
|
Fair Value Measurements at December 31, 2021 Using
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||
(dollars in thousands)
|
Balance
|
|||||||||||||||
Assets: |
||||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of U.S. Government agencies
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
|
|
||||||||||||
Total available-for-sale securities
|
|
|
|
|
|
|
|
|
||||||||
Derivatives
|
||||||||||||||||
Interest rate lock
|
||||||||||||||||
Interest rate swap on loans
|
||||||||||||||||
Total assets |
$ |
$ |
$ |
$ |
||||||||||||
Liabilities: | ||||||||||||||||
Derivatives | ||||||||||||||||
Interest rate swap on loans
|
||||||||||||||||
Total liabilities |
$ |
$ |
$ |
$ |
Fair Value Measurements at December 31, 2020 Using
|
||||||||||||||||
Quoted Prices in Active Markets for Identical Assets
(Level 1) |
Significant Other Observable Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||||
(dollars in thousands)
|
Balance
|
|||||||||||||||
Available-for-sale securities
|
||||||||||||||||
U.S. Treasury securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Obligations of U.S. Government agencies
|
|
|
|
|
||||||||||||
Obligations of state and political subdivisions
|
|
|
|
|
||||||||||||
Mortgage-backed securities
|
|
|
|
|
||||||||||||
Money market investments
|
|
|
|
|
||||||||||||
Corporate bonds and other securities
|
|
|
|
|
||||||||||||
Total available-for-sale securities
|
$
|
|
$
|
|
$
|
|
$
|
|
Carrying Value at December 31, 2021
|
||||||||||||||||
(dollars in thousands)
|
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) |
Significant Other
Observable
Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||
Impaired loans |
||||||||||||||||
Commercial loans |
$ |
$ | $ |
$ | ||||||||||||
Total | $ |
$ |
$ |
$ |
||||||||||||
Loans
|
||||||||||||||||
Loans held for sale
|
$
|
|
$
|
|
$
|
|
$
|
|
Carrying Value at December 31, 2020
|
||||||||||||||||
(dollars in thousands)
|
Fair Value
|
Quoted Prices
in Active
Markets for
Identical
Assets
(Level 1) |
Significant Other
Observable
Inputs
(Level 2) |
Significant Unobservable Inputs
(Level 3) |
||||||||||||
Loans
|
||||||||||||||||
Loans held for sale
|
$
|
$
|
$
|
$
|
Quantitative Information About Level 3 Fair Value Measurements
|
||||||||||
(dollars in thousands)
|
Fair Value at December 31, 2021
|
Valuation Techniques
|
Unobservable Input
|
Range (Weighted Average)
|
||||||
Impaired loans
|
||||||||||
Commercial loans
|
$ |
Market comparables
|
Selling costs
|
%) |
Fair Value Measurements at December 31, 2021 Using
|
||||||||||||||||
Carrying Value
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
Significant Other
Observable
Inputs
(Level 2) |
Significant Unobservable Inputs (Level 3) |
|||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities available-for-sale
|
|
|
|
|
||||||||||||
Restricted securities
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
|
|
|
||||||||||||
Loans, net of allowances for loan losses
|
|
|
|
|
||||||||||||
Derivatives
|
||||||||||||||||
Interest rate lock
|
||||||||||||||||
Interest rate swap on loans
|
||||||||||||||||
Bank owned life insurance
|
|
|
|
|
||||||||||||
Accrued interest receivable
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Overnight repurchase agreements
|
|
|
|
|
||||||||||||
Federal Reserve Bank borrowings
|
|
|
|
|
||||||||||||
Long term borrowings
|
|
|
|
|
||||||||||||
Derivatives
|
||||||||||||||||
Interest rate swap on loans
|
||||||||||||||||
Accrued interest payable
|
|
|
|
|
Fair Value Measurements at December 31, 2020 Using
|
||||||||||||||||
(dollars in thousands)
|
Carrying Value
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1) |
Significant Other
Observable
Inputs
(Level 2) |
Significant Unobservable Inputs (Level 3) |
||||||||||||
Assets
|
||||||||||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities available-for-sale
|
|
|
|
|
||||||||||||
Restricted securities
|
|
|
|
|
||||||||||||
Loans held for sale
|
|
|
|
|
||||||||||||
Loans, net of allowances for loan losses
|
|
|
|
|
||||||||||||
Bank owned life insurance
|
|
|
|
|
||||||||||||
Accrued interest receivable
|
|
|
|
|
||||||||||||
Liabilities
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Overnight repurchase agreements
|
|
|
|
|
||||||||||||
Federal Reserve Bank borrowings
|
|
|
|
|
||||||||||||
Other borrowings
|
|
|
|
|
||||||||||||
Accrued interest payable
|
|
|
|
|
2021
|
2020
|
|||||||||||||||
Regulatory
|
Regulatory
|
|||||||||||||||
Minimums
|
December 31, 2021
|
Minimums
|
December 31, 2020
|
|||||||||||||
Common Equity Tier 1 Capital to Risk-Weighted Assets
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Tier 1 Capital to Risk-Weighted Assets
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Tier 1 Leverage to Average Assets
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Total Capital to Risk-Weighted Assets
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Capital Conservation Buffer
|
|
%
|
|
%
|
|
%
|
|
%
|
||||||||
Risk-Weighted Assets (in thousands)
|
$
|
|
$
|
|
Year Ended December 31, 2021
|
||||||||||||||||||||
(dollars in thousands)
|
Bank
|
Trust
|
Unconsolidated Parent
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Income from fiduciary activities
|
|
|
|
|
|
|||||||||||||||
Other income
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating income
|
|
|
|
(
|
)
|
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Provision for loan losses
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Income before taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Capital expenditures
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Year Ended December 31, 2020
|
||||||||||||||||||||
(dollars in thousands)
|
Bank
|
Trust
|
Unconsolidated Parent
|
Eliminations
|
Consolidated
|
|||||||||||||||
Revenues
|
||||||||||||||||||||
Interest and dividend income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Income from fiduciary activities
|
|
|
|
|
|
|||||||||||||||
Other income
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating income
|
|
|
|
(
|
)
|
|
||||||||||||||
Expenses
|
||||||||||||||||||||
Interest expense
|
|
|
|
|
|
|||||||||||||||
Provision for loan losses
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits
|
|
|
|
|
|
|||||||||||||||
Other expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Total operating expenses
|
|
|
|
(
|
)
|
|
||||||||||||||
Income before taxes
|
|
|
|
(
|
)
|
|
||||||||||||||
Income tax expense (benefit)
|
|
|
(
|
)
|
|
|
||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
|||||||||
Capital expenditures
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Total assets
|
$
|
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
Balance Sheets
|
December 31,
|
|||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$
|
|
$
|
|
||||
Securities available-for-sale
|
|
|
||||||
Investment in common stock of subsidiaries
|
|
|
||||||
Other assets
|
|
|
||||||
Total assets
|
$
|
|
$
|
|
||||
Liabilities and Stockholders’ Equity
|
||||||||
Other borrowings
|
$
|
|
$
|
|
||||
Other liability
|
|
|
||||||
Common stock
|
|
|
||||||
Additional paid-in capital
|
|
|
||||||
Retained earnings
|
|
|
||||||
Accumulated other comprehensive income (loss)
|
|
|
||||||
Total liabilities and stockholders’ equity
|
$
|
|
$
|
|
Statements of Income
|
Years Ended December 31,
|
|||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Income:
|
||||||||
Dividends from subsidiary
|
$
|
|
$
|
|
||||
Other income
|
|
|
||||||
Total income
|
|
|
||||||
Expenses:
|
||||||||
Salary and benefits
|
|
|
||||||
Subordinated debt |
||||||||
Legal expenses
|
|
|
||||||
Service fees
|
|
|
||||||
Other operating expenses
|
|
|
||||||
Total expenses
|
|
|
||||||
Income before income taxes and equity in
|
||||||||
undistributed net income of subsidiaries
|
|
|
||||||
Income tax benefit
|
(
|
)
|
(
|
)
|
||||
|
|
|||||||
Equity in undistributed net income of subsidiaries
|
|
|
||||||
Net income
|
$
|
|
$
|
|
Statements of Cash Flows
|
Years Ended December 31,
|
|||||||
(dollars in thousands)
|
2021
|
2020
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
|
$
|
|
||||
Adjustments to reconcile net income to net cash
|
||||||||
provided by operating activities:
|
||||||||
Equity in undistributed net income of subsidiaries
|
(
|
)
|
(
|
)
|
||||
Amortization of subordinated debt issuance costs |
||||||||
Stock compensation expense
|
|
|
||||||
(Decrease) increase in other assets
|
(
|
)
|
|
|||||
Increase in other liabilities
|
|
|
||||||
Net cash provided by operating activities
|
|
|
||||||
Cash flows from investing activities:
|
||||||||
Cash distributed to subsidiary
|
(
|
)
|
|
|||||
Net cash used in investing activities
|
(
|
)
|
|
|||||
Cash flows from financing activities:
|
||||||||
Proceeds from sale of stock
|
|
|
||||||
Proceeds from borrowings |
||||||||
Repayment of borrowings
|
(
|
)
|
(
|
)
|
||||
Repurchase and retirement of common stock |
( |
) | ||||||
Cash dividends paid on common stock
|
(
|
)
|
(
|
)
|
||||
Net cash provided by (used in) financing activities
|
|
(
|
)
|
|||||
Net increase (decrease) in cash and cash equivalents
|
|
(
|
)
|
|||||
Cash and cash equivalents at beginning of year
|
|
|
||||||
Cash and cash equivalents at end of year
|
$
|
|
$
|
|
Item 9. |
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure
|
Item 9A. |
Controls and Procedures
|
Item 9B. |
Other Information
|
Item 9C. |
Disclosure Regarding Foreign Jurisdictions that Prevent Inspections
|
Item 10. |
Directors, Executive Officers and Corporate Governance
|
Item 11. |
Executive Compensation
|
Item 12. |
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
|
Item 13. |
Certain Relationships and Related Transactions, and Director Independence
|
Item 14. |
Principal Accountant Fees and Services
|
Item 15. |
Exhibits and Financial Statement Schedules
|
Exhibit No.
|
Description
|
|
Agreement and Plan of Reorganization, dated as of October 27, 2017, by and among Old Point Financial Corporation, The Old Point National Bank of Phoebus, and Citizens National Bank
(incorporated by reference to Exhibit 2.1 to Form 8-K filed November 2, 2017)
|
||
Articles of Incorporation of Old Point Financial Corporation, as amended June 22, 2000 (incorporated by reference to Exhibit 3.1 to Form 10-K filed on March 12, 2009)
|
||
Articles of Amendment to Articles of Incorporation of Old Point Financial Corporation, effective May 26, 2016 (incorporated by reference to Exhibit 3.1.1 to Form 8-K filed May 31, 2016)
|
||
Bylaws of Old Point Financial Corporation, as amended and restated August 9, 2016 (incorporated by reference to Exhibit 3.2 to Form 10-Q filed August 10, 2016)
|
||
Description of the Company’s Common Stock
(incorporated by reference to Exhibit 4.0 to Form 10-K filed March 16, 2020)
|
||
4.1 |
Form of Subordinated Note (incorporated by reference to Exhibit 4.1 to Form 8-K filed July 16, 2021)
|
|
Form of Life Insurance Endorsement Method Split Dollar Plan Agreement with The Northwestern Mutual Life Insurance Company entered into with each of Robert F. Shuford, Sr. and Eugene M.
Jordan, II (incorporated by reference to Exhibit 10.4 to Form 10-K filed March 30, 2005)
|
||
Directors' Compensation (incorporated by reference to Exhibit 10.5 to Form 10-K filed March 16, 2020)
|
||
Summary of Old Point Financial Corporation Incentive Plan (incorporated by reference to Exhibit 10.7 to Form 10-K filed March 30, 2015)
|
||
Form of Life Insurance Endorsement Method Split Dollar Plan Agreement with Ohio National Life Assurance Corporation entered into with Eugene M. Jordan, II (incorporated by reference to
Exhibit 10.8 to Form 10-K filed March 14, 2008)
|
||
Memorandum of Understanding between The Old Point National Bank of Phoebus and Tidewater Mortgage Services, Inc., dated September 10, 2007 (incorporated by reference to Exhibit 10.8 to
Form 10-Q filed November 9, 2007)
|
||
Form of 162 Insurance Plan (incorporated by reference to Exhibit 10.10 to Form 10-K filed March 12, 2009)
|
||
Form of Life Insurance Endorsement Method Split Dollar Plan Agreement with Ohio National Life Assurance Corporation entered into with Joseph R. Witt (incorporated by reference to
Exhibit 10.11 to Form 10-K filed March 12, 2010)
|
||
Form of Life Insurance Endorsement Method Split Dollar Plan Agreement with New York Life Insurance and Annuity Corporation entered into with Eugene M. Jordan, II, Robert F. Shuford,
Jr., and Joseph R. Witt (incorporated by reference to Exhibit 10.12 to Form 10-K filed March 30, 2012)
|
||
Settlement Agreement dated March 16, 2016 among Old Point Financial Corporation, Financial Edge Fund, L.P., Financial Edge-Strategic Fund, L.P., PL Capital/Focused Fund, L.P., PL
Capital, LLC, PL Capital Advisors, LLC, Goodbody/PL Capital, L.P., Goodbody/PL Capital, LLC, Mr. John W. Palmer and Mr. Richard J. Lashley, as Managing Members of PL Capital, LLC, PL Capital Advisors, LLC and Goodbody/PL Capital, LLC and
Mr. William F. Keefe (incorporated by reference to Exhibit 10.1 to Form 8-K filed March 17, 2016)
|
||
Amendment No. 1 to Settlement Agreement, dated August 12, 2021, among Old Point Financial Corporation, Financial Edge Fund, L.P., Financial Edge-Strategic Fund, L.P., PL Capital/Focused
Fund, L.P., PL Capital, LLC, PL Capital Advisors, LLC, Goodbody/PL Capital, L.P., Goodbody/PL Capital, LLC, Mr. John W. Palmer and Mr. Richard J. Lashley, as Managing Members of PL Capital, LLC, PL Capital Advisors, LLC and Goodbody/PL
Capital, LLC and Mr. William F. Keefe (incorporated by reference to Exhibit 10.14 to Form 10-Q filed August 16, 2021)
|
Old Point Financial Corporation 2016 Incentive Stock Plan (incorporated by reference to Exhibit 10.15 to Form 8-K filed May 31, 2016)
|
||
Membership Interest Purchase Agreement dated January 13, 2017 between Tidewater Mortgage Services, Inc. and The Old Point National Bank of Phoebus (incorporated by reference to Exhibit
10.1 to Form 8-K filed January 20, 2017)
|
||
Employment Agreement, dated as of February 22, 2018, by and between Old Point Financial Corporation and The Old Point National Bank of Phoebus and Robert F. Shuford, Jr. (incorporated
by reference to Exhibit 10.22 to Form 8-K filed February 28, 2018)
|
||
Employment Agreement, dated as of February 22, 2018, by and between Old Point Financial Corporation and The Old Point National Bank of Phoebus and Joseph R. Witt (incorporated by
reference to Exhibit 10.24 to Form 8-K filed February 28, 2018)
|
||
Employment Agreement, dated as of February 22, 2018, by and between Old Point Financial Corporation and Old Point Trust & Financial Services, N.A. and Eugene M. Jordan, II
(incorporated by reference to Exhibit 10.25 to Form 8-K filed February 28, 2018)
|
||
Change of Control Severance Agreement, dated as of February 22, 2018, by and between The Old Point National Bank of Phoebus and Donald S. Buckless (incorporated by reference to Exhibit
10.26 to Form 10-K filed March 16, 2018)
|
||
Form of Time-Based Restricted Stock Agreement (cliff vesting) (approved March 29, 2018) for awards to certain employees under the Old Point Financial Corporation 2016 Incentive Stock
Plan (incorporated by reference to Exhibit 10.28 to Form 8-K filed April 3, 2018)
|
||
Form of Time-Based Restricted Stock Agreement (cliff vesting) (approved March 29, 2018) for awards to certain non-employee directors under the Old Point Financial Corporation 2016
Incentive Stock Plan (incorporated by reference to Exhibit 10.29 to Form 8-K filed April 3, 2018)
|
||
Change of Control Severance Agreement, dated as of October 30, 2019, by and between The Old Point National Bank of Phoebus and Elizabeth T. Beale (incorporated by
reference to Exhibit 10.30 to Form 10-K filed on March 16, 2020)
|
||
Change of Control Severance Agreement, dated as of October 30, 2019, by and between The Old Point National Bank of Phoebus and Thomas Hotchkiss (incorporated by reference to Exhibit 10.31 to Form 10-K filed on March 16, 2020)
|
||
Change of Control Severance Agreement, dated as of December 31, 2019, by and between The Old Point National Bank of Phoebus and Susan R. Ralston (incorporated by reference to Exhibit 10.32 to Form 10-K filed on March 16, 2020)
|
||
Form of Subordinated Note Purchase Agreement (incorporated by reference to Exhibit 10.1 to Form 8-K
filed July 16, 2021)
|
||
Subsidiaries of the Registrant (incorporated by reference to Exhibit 21 to Form 10-K filed March 30, 2005)
|
||
Consent of Yount, Hyde & Barbour, P.C.
|
||
Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002
|
||
Certification of Chief Executive Officer and Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002
|
101
|
The following materials from Old Point Financial Corporation’s annual report on Form 10-K for the year ended December 31, 2021, formatted in iXBRL (Inline Extensible Business Reporting
Language), filed herewith: (i) Consolidated Balance Sheets, (ii) Consolidated Statements of Income, (iii) Consolidated Statements of Comprehensive Income, (iv) Consolidated Statements of Changes in Stockholders’ Equity, (v) Consolidated
Statements of Cash Flows, and (vi) Notes to Consolidated Financial Statements
|
|
104
|
Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)
|
*
|
Denotes Management contract
|
OLD POINT FINANCIAL CORPORATION
|
||
/s/Robert F. Shuford, Jr.
|
||
Robert F. Shuford, Jr.,
|
||
Chairman, President & Chief Executive Officer
|
||
Date: March 31, 2022
|
/s/Robert F. Shuford, Jr.
|
Chairman, President & Chief Executive Officer and Director
|
|
Robert F. Shuford, Jr.
|
Principal Executive Officer
|
|
Date: March 31, 2022
|
||
/s/Elizabeth T. Beale
|
Chief Financial Officer & Senior Vice President/Finance
|
|
Elizabeth T. Beale
|
Principal Financial & Accounting Officer
|
|
Date: March 31, 2022
|
||
/s/Stephen C. Adams
|
Director
|
|
Stephen C. Adams
|
||
Date: March 31, 2022
|
||
/s/Russell S. Evans, Jr.
|
Director
|
|
Russell S. Evans, Jr.
|
||
Date: March 31, 2022
|
||
/s/Michael A. Glasser
|
Director
|
|
Michael A. Glasser
|
Date: March 31, 2022
|
||
/s/Sarah B Golden
|
Director
|
|
Sarah B. Golden
|
||
Date: March 31, 2022
|
||
/s/Dr. Arthur D. Greene
|
Director
|
|
Dr. Arthur D. Greene
|
||
Date: March 31, 2022
|
||
/s/John Cabot Ishon
|
Director
|
|
John Cabot Ishon
|
||
Date: March 31, 2022
|
||
/s/William F. Keefe
|
Director
|
|
William F. Keefe
|
||
Date: March 31, 2022
|
||
/s/Tom B. Langley
|
Director
|
|
Tom B. Langley
|
||
Date: March 31, 2022
|
||
/s/Robert F. Shuford, Sr.
|
||
Robert F. Shuford, Sr.
|
||
Director
|
||
Date: March 31, 2022
|
||
/s/Ellen Clark Thacker
|
||
Ellen Clark Thacker
|
||
Director
|
||
Date: March 31, 2022
|
||
/s/Elizabeth S. Wash
|
||
Elizabeth S. Wash
|
||
Director
|
||
Date: March 31, 2022
|
||
/s/Joseph R. Witt
|
||
Joseph R. Witt
|
||
Director
|
||
Date: March 31, 2022
|
1 |
I have reviewed this annual report on Form 10-K of Old Point Financial Corporation;
|
2 |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows
of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a)
|
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b)
|
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
|
(b) |
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: March 31, 2022
|
|
/s/Robert F. Shuford, Jr.
|
|
Robert F. Shuford, Jr.
|
|
Chairman, President & Chief Executive Officer
|
1. |
I have reviewed this annual report on Form 10-K of Old Point Financial Corporation;
|
2. |
Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which
such statements were made, not misleading with respect to the period covered by this report;
|
3. |
Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows
of the registrant as of, and for, the periods presented in this report;
|
4. |
The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal
control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:
|
(a) |
Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant,
including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
|
(b) |
Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
|
(c) |
Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end
of the period covered by this report based on such evaluation; and
|
(d) |
Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in
the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and
|
5. |
The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the
registrant's board of directors (or persons performing the equivalent functions):
|
(a) |
All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record,
process, summarize and report financial information; and
|
(a)
|
Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.
|
Date: March 31, 2022
|
|
/s/Elizabeth T. Beale
|
|
Elizabeth T. Beale
|
|
Chief Financial Officer & Senior Vice President/Finance
|
(1) |
The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and
|
(2) |
The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of and for the periods covered in the Report.
|
/s/Robert F. Shuford, Jr.
|
|
Robert F. Shuford, Jr.
|
|
Chairman, President & Chief Executive Officer
|
March 31, 2022
|
|
/s/Elizabeth T. Beale
|
|
Elizabeth T. Beale
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Chief Financial Officer & Senior Vice President/Finance
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March 31, 2022
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Consolidated Balance Sheets (Parenthetical) - $ / shares |
Dec. 31, 2021 |
Dec. 31, 2020 |
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Stockholders' equity: | ||
Common stock, par value (in dollars per share) | $ 5 | $ 5 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares outstanding (in shares) | 5,239,707 | 5,224,019 |
Restricted Stock [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | ||
Nonvested restricted stock (in shares) | 38,435 | 29,576 |
Consolidated Statements of Income - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Interest and Dividend Income: | ||
Loans, including fees | $ 37,912 | $ 36,012 |
Due from banks | 230 | 267 |
Federal funds sold | 3 | 12 |
Securities: | ||
Taxable | 3,284 | 3,068 |
Tax-exempt | 753 | 516 |
Dividends and interest on all other securities | 70 | 134 |
Total interest and dividend income | 42,252 | 40,009 |
Interest Expense: | ||
Checking and savings deposits | 938 | 1,080 |
Time deposits | 1,941 | 3,337 |
Federal funds purchased, securities sold under agreements to repurchase and other borrowings | 35 | 150 |
Long term borrowings | 544 | 0 |
Federal Home Loan Bank advances | 0 | 725 |
Total interest expense | 3,458 | 5,292 |
Net interest income | 38,794 | 34,717 |
Provision for loan losses | 794 | 1,000 |
Net interest income after provision for loan losses | 38,000 | 33,717 |
Noninterest Income: | ||
Bank-owned life insurance income | 1,014 | 839 |
Mortgage banking income | 2,280 | 1,781 |
Gain on sale of available-for-sale securities, net | 0 | 264 |
Gain on sale of fixed assets | 0 | 818 |
Total noninterest income | 14,885 | 14,698 |
Noninterest Expense: | ||
Salaries and employee benefits | 25,361 | 25,512 |
Occupancy and equipment | 4,694 | 4,852 |
Data processing | 4,557 | 3,478 |
Customer development | 370 | 381 |
Professional services | 2,521 | 2,196 |
Employee professional development | 719 | 658 |
Other taxes | 794 | 661 |
ATM and other losses | 504 | 871 |
Loss on extinguishment of borrowings | 0 | 490 |
(Gain) on other real estate owned | 0 | (62) |
Loss on sale of loans | 0 | 99 |
Other operating expenses | 3,629 | 3,369 |
Total noninterest expense | 43,149 | 42,505 |
Income before income taxes | 9,736 | 5,910 |
Income tax expense | 1,296 | 521 |
Net income | $ 8,440 | $ 5,389 |
Basic Earnings per Share: | ||
Weighted average shares outstanding (in shares) | 5,238,318 | 5,216,237 |
Net income per share of common stock (in dollars per share) | $ 1.61 | $ 1.03 |
Diluted Earnings per Share: | ||
Weighted average shares outstanding (in shares) | 5,238,352 | 5,216,441 |
Net income per share of common stock (in dollars per share) | $ 1.61 | $ 1.03 |
Fiduciary and Asset Management Fees [Member] | ||
Noninterest Income: | ||
Noninterest revenue | $ 4,198 | $ 3,877 |
Service Charges on Deposit Accounts [Member] | ||
Noninterest Income: | ||
Noninterest revenue | 2,866 | 2,872 |
Other Service Charges, Commissions and Fees [Member] | ||
Noninterest Income: | ||
Noninterest revenue | 4,169 | 4,028 |
Other Operating Income [Member] | ||
Noninterest Income: | ||
Noninterest revenue | $ 358 | $ 219 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Consolidated Statements of Comprehensive Income [Abstract] | ||
Net income | $ 8,440 | $ 5,389 |
Other comprehensive income (loss), net of tax | ||
Net unrealized gain (loss) on available-for-sale securities | (2,394) | 4,357 |
Reclassification for gain included in net income | 0 | (209) |
Other comprehensive income (loss), net of tax | (2,394) | 4,148 |
Comprehensive income | $ 6,046 | $ 9,537 |
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands |
Common Stock [Member] |
Additional Paid-in Capital [Member] |
Retained Earnings [Member] |
Accumulated Other Comprehensive Income (Loss) [Member] |
Total |
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Beginning Balance at Dec. 31, 2019 | $ 25,901 | $ 20,959 | $ 62,975 | $ (79) | $ 109,756 |
Beginning Balance (in shares) at Dec. 31, 2019 | 5,180,105 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 5,389 | 0 | 5,389 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | 4,148 | 4,148 |
Employee Stock Purchase Plan share issuance | $ 29 | 67 | 0 | 0 | 96 |
Employee Stock Purchase Plan share issuance (in shares) | 5,819 | ||||
Restricted stock vested | $ 42 | (42) | 0 | 0 | 0 |
Restricted stock vested (in shares) | 8,519 | ||||
Stock-based compensation expense | $ 0 | 261 | 0 | 0 | 261 |
Cash dividends | 0 | 0 | (2,505) | 0 | (2,505) |
Ending Balance at Dec. 31, 2020 | $ 25,972 | 21,245 | 65,859 | 4,069 | $ 117,145 |
Ending Balance (in shares) at Dec. 31, 2020 | 5,194,443 | 5,224,019 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Net income | $ 0 | 0 | 8,440 | 0 | $ 8,440 |
Other comprehensive income (loss), net of tax | 0 | 0 | 0 | (2,394) | (2,394) |
Employee Stock Purchase Plan share issuance | $ 24 | 79 | 0 | 0 | 103 |
Employee Stock Purchase Plan share issuance (in shares) | 4,908 | ||||
Common stock purchased | $ (33) | (117) | 0 | 0 | (150) |
Common stock purchased (in shares) | (6,600) | ||||
Restricted stock vested | $ 43 | (43) | 0 | 0 | 0 |
Restricted stock vested (in shares) | 8,521 | ||||
Stock-based compensation expense | $ 0 | 294 | 0 | 0 | 294 |
Cash dividends | 0 | 0 | (2,620) | 0 | (2,620) |
Ending Balance at Dec. 31, 2021 | $ 26,006 | $ 21,458 | $ 71,679 | $ 1,675 | $ 120,818 |
Ending Balance (in shares) at Dec. 31, 2021 | 5,201,272 | 5,239,707 |
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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Consolidated Statements of Changes in Stockholders' Equity [Abstract] | ||
Cash dividends (in dollars per share) | $ 0.50 | $ 0.48 |
Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
12 Months Ended | |
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Dec. 31, 2021 |
Dec. 31, 2020 |
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CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 8,440 | $ 5,389 |
Adjustments to reconcile net income to net cash (used in) provided by operating activities: | ||
Depreciation and amortization | 2,091 | 2,145 |
Amortization of right of use lease asset | 347 | 380 |
Accretion related to acquisition, net | (2) | (176) |
Amortization of subordinated debt issuance costs | 60 | 0 |
Provision for loan losses | 794 | 1,000 |
Gain on sale of securities, net | 0 | (264) |
Net amortization of securities | 989 | 627 |
Decrease (increase) in loans held for sale, net | 11,126 | (13,823) |
Net (gain) loss on disposal of premises and equipment | 0 | (818) |
Net gain on write-down/sale of other real estate owned | 0 | (62) |
Income from bank owned life insurance | (1,014) | (839) |
Stock compensation expense | 294 | 261 |
Deferred tax expense (benefit) | 275 | (634) |
Decrease in other assets | (748) | (966) |
Increase (decrease) in accrued expenses and other liabilities | 524 | (855) |
Net cash provided by (used in) operating activities | 23,176 | (8,635) |
CASH FLOWS FROM INVESTING ACTIVITIES | ||
Purchases of available-for-sale securities | (90,070) | (73,057) |
Proceeds from redemption (purchase) of restricted securities, net | 333 | 1,559 |
Proceeds from maturities and calls of available-for-sale securities | 11,780 | 10,747 |
Proceeds from sales of available-for-sale securities | 6,880 | 13,944 |
Paydowns on available-for-sale securities | 19,479 | 12,559 |
Net increase in loans held for investment | (7,650) | (89,588) |
Proceeds from sales of other real estate owned | 0 | 316 |
Purchases of premises and equipment | (1,514) | (924) |
Proceeds from sale of premises and equipment | 31 | 2,203 |
Net cash used in investing activities | (60,731) | (122,241) |
CASH FLOWS FROM FINANCING ACTIVITIES | ||
Increase in noninterest-bearing deposits | 60,929 | 98,044 |
Increase in savings deposits | 73,514 | 113,916 |
Decrease in time deposits | (24,580) | (34,220) |
Increase (decrease) in federal funds purchased, repurchase agreements and other borrowings, net | (3,433) | (5,433) |
Increase in Federal Home Loan Bank advances | 0 | 25,000 |
Repayment of Federal Home Loan Bank advances | 0 | (62,000) |
Increase in Federal Reserve Bank borrowings | 0 | 37,515 |
Repayment of Federal Reserve Bank borrowings | (28,070) | (8,965) |
Increase in long term borrowings | 29,347 | 96 |
Proceeds from ESPP issuance | 103 | 0 |
Repurchase of common stock | (150) | 0 |
Cash dividends paid on common stock | (2,620) | (2,505) |
Net cash provided by financing activities | 105,040 | 161,448 |
Net increase in cash and cash equivalents | 67,485 | 30,572 |
Cash and cash equivalents at beginning of period | 120,437 | 89,865 |
Cash and cash equivalents at end of period | 187,922 | 120,437 |
Cash payments for: | ||
Interest | 3,149 | 5,528 |
SUPPLEMENTAL SCHEDULE OF NONCASH TRANSACTIONS | ||
Unrealized (loss) gain on securities available-for-sale | (3,030) | 5,250 |
Loans transferred to other real estate owned | 0 | 254 |
Former bank property transferred from fixed assets to held for sale assets | 902 | 0 |
Right of use lease asset and liability | 0 | 1,312 |
Receivable for BOLI death benefit | $ 1,232 | $ 0 |
Significant Accounting Policies |
12 Months Ended | ||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||||||||||||
Significant Accounting Policies |
NOTE 1, Significant Accounting Policies
THE COMPANY
Headquartered in Hampton, Virginia, Old Point Financial Corporation is a holding company that conducts substantially all of its operations through two subsidiaries, The Old Point National Bank of Phoebus and Old Point Trust & Financial Services, N.A. The Bank serves individual and commercial
customers, the majority of which are in Hampton Roads, Virginia. As of December 31, 2021, the Bank had 16 branch offices. During the first
quarter of 2022,
planned branch closures were completed.The Bank offers a full range of deposit and loan products to its retail and
commercial customers, including mortgage loan products offered through Old Point Mortgage. A full array of insurance products is also offered through Old Point Insurance, LLC in partnership with Morgan Marrow Company. Trust offers a full range of
services for individuals and businesses. Products and services include retirement planning, estate planning, financial planning, estate and trust administration, retirement plan administration, tax services and investment management services.PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Old Point Financial Corporation (the Company) and its wholly-owned subsidiaries, The Old
Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). All significant intercompany balances and transactions have been eliminated in consolidation.
BASIS OF PRESENTATION
In preparing Consolidated Financial Statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of goodwill for impairment.
The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the
Company. Estimates for the allowance for loan losses at December 31, 2021 include probable and estimable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there
remains significant uncertainty in the probable and estimable measurement of these losses. If there are further challenges to the economic recovery, then additional provision for loan losses may be required in future periods. It is unknown how long
these conditions will last and what the ultimate financial impact will be to the Company. Depending on the severity and duration of the economic consequences of the pandemic, the Company’s goodwill may become impaired.
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK
Most of the Company’s activities are with customers located within the Hampton Roads region. The types of securities that the Company invests in are
included in Note 3. The types of lending that the Company engages in are included in Note 4. The Company has significant concentrations in the following industries: construction, lessors of real estate, activities related to real estate, ambulatory
health care and religious organizations. The Company does not have any significant concentrations to any one customer.
At December 31, 2021 and 2020, there were $460.1
million and $383.4 million, or 54.5%
and 45.8%, respectively, of total loans concentrated in commercial real estate. Commercial real estate for purposes of this note includes
all construction loans, loans secured by multifamily residential properties, loans secured by farmland and loans secured by nonfarm, nonresidential properties. Refer to Note 4 for further detail.
CASH AND CASH EQUIVALENTS
For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash and balances due from banks and federal funds sold,
all of which mature within 90 days. The Bank is typically required to maintain cash reserve balances on hand or with the Federal Reserve Bank (FRB). At December 31, 2021, there was no minimum reserve requirement as a result of a rule adopted by the
FRB in March 2020 eliminating the reserve requirement.
INTEREST-BEARING DEPOSITS IN BANKS
Interest-bearing deposits in banks mature within one year and are carried at cost.
SECURITIES
Certain debt securities that management has the positive intent and ability to hold until maturity are classified as held-to-maturity and recorded at
amortized cost. Securities not classified as held-to-maturity, excluding equity securities with readily determinable fair values which are recorded at fair value through the income statement, are classified as available-for-sale and recorded at fair
value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains
and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company has no trading securities.
The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns
warrant such evaluation. The Company employs a systematic methodology that considers available evidence in evaluating potential impairment of its investments. In the event that the cost of an investment exceeds its fair value, the Company evaluates,
among other factors, the magnitude and duration of the decline in fair value; the expected cash flows of the securities; the financial health of and business outlook for the issuer; the performance of the underlying assets for interests in
securitized assets; and the Company’s intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in investment income and a new cost basis in the investment is
established.
RESTRICTED SECURITIES, AT COST
The Company, as a member of the Federal Reserve Bank (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), is required to maintain an investment in the
capital stock of both the FRB and the FHLB. The Company also has an investment in the capital stock of Community Bankers’ Bank (CBB). Based on the redemption provisions of these investments, the stocks have no quoted market value, are carried at cost
and are listed as restricted securities. The Company reviews its holdings for impairment based on the ultimate recoverability of the cost basis in the FRB, FHLB, and CBB stock.
LOANS HELD FOR SALE
The Company records loans held for sale using the lower of cost or fair value. Net unrealized losses, if any, are recognized through a valuation
allowance by charges to income. Any changes in the application of lower of cost or market accounting of loans held for sale is recorded as a component of “Mortgage banking income” within the Company’s Consolidated Statements of Income.
LOANS
The Company extends loans to individual consumers and commercial customers for various purposes. Most of the Company’s loans are secured by real estate,
including real estate construction loans, real estate commercial loans, and real estate mortgage loans (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit). Other loans are secured by collateral that is not real
estate, which may include inventory, accounts receivable, equipment or other personal property. A substantial portion of the loan portfolio is represented by real estate mortgage loans throughout Hampton Roads. The ability of the Company’s debtors to
honor their contracts is dependent in part upon the real estate and general economic conditions in this area.
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their
outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.
For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination
costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.
PAYCHECK PROTECTION PROGRAM
Beginning in April 2020, the Company originated loans under the Paycheck Protection Program (PPP) of the Small Business Administration (SBA). PPP loans
are fully guaranteed by the SBA, and in some cases borrowers may be eligible to obtain forgiveness of the loans, in which case loans would be repaid by the SBA. As repayment of the PPP loans is guaranteed by the SBA, the Company does not recognize a
reserve for PPP loans in its allowance for loan losses. The Company received fees from the SBA of one percent to five percent of the principal amount of each loan originated under the PPP. Fees received from the SBA are recognized net of direct origination costs in
interest income over the life of the related loans. Recognition of fees related to PPP loans is dependent upon the timing of ultimate repayment or forgiveness. Aggregate fees from the SBA of $4.6 million, net of direct costs, will be recognized in interest income over the life of the loans, of which $630 thousand remains unrecognized as of December 31, 2021. In 2021 and 2020, the Company recognized $3.2 million and $813 thousand in net loan fees related to PPP loans in interest
income on loans in the Consolidated Statement of Income, respectively.
NONACCRUALS, PAST DUES AND CHARGE-OFFS
The accrual of interest on commercial loans (including construction loans and commercial loans secured and not secured by real estate) is generally
discontinued at the time the loan is 90 days past due unless the credit is well-secured and in the process of collection. Consumer loans not secured by real estate and consumer real estate secured loans (i.e., residential 1-4 family mortgages, second
mortgages and equity lines of credit) are generally placed on nonaccrual status when payments are 120 days past due. Past due status is based on the contractual terms of the loan agreement, and loans are considered past due when a payment of
principal and/or interest is due but not paid. Regular payments not received within the payment cycle are considered to be 30, 60, or 90 or more days past due accordingly. In all cases, loans are placed on nonaccrual status or charged off at an
earlier date if collection of principal or interest is considered doubtful.
All interest accrued but not collected for loans that are placed on nonaccrual status or charged off is reversed against interest income. The interest on
these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual status or charged off. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are
brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months.
Loans are generally fully charged off or partially charged down to the fair value of collateral securing the asset when:
ALLOWANCE FOR LOAN LOSSES
The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against
the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the
loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation
is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired, such as a loan that
is considered a troubled debt restructuring (TDR) (discussed in detail below). These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. All loans, including consumer
loans, whose terms have been modified in a TDR are also individually analyzed for estimated impairment. Impairment is measured on a loan-by-loan basis for construction loans and commercial loans (i.e., commercial mortgage loans on real estate and
commercial loans not secured by real estate) by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral
dependent. For those loans that are classified as impaired, an allowance is established when the discounted value of expected future cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of
that loan.
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled
payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled
principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the
length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans that experience insignificant payment delays and payment shortfalls generally
are not classified as impaired.
The general component covers loans that are not classified as impaired. Loans collectively evaluated for impairment are pooled, with a historical loss
rate, based on migration analysis, applied to each pool, segmented by risk grade or days past due, depending on the type of loan. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied
to loan balances. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and consumer loans secured by real estate (i.e., residential 1-4
family mortgages, second mortgages and equity lines of credit) for impairment disclosures, unless the terms of such loans have been modified in a TDR due to financial difficulties of the borrower.
Each portfolio segment has risk characteristics as follows:
Each segment of the portfolio is pooled by risk grade or by days past due. Loans not secured by real estate and made to individuals for household, family
and other personal expenditures are segmented into pools based on days past due, while all other loans, including loans to consumers that are secured by real estate, are segmented by risk grades. A historical loss percentage is then calculated by
migration analysis and applied to each pool. The migration analysis applied to all pools is able to track the risk grading and historical performance of individual loans throughout a number of periods set by management, which provides management with
information regarding trends (or migrations) in a particular loan segment. At December 31, 2021 and 2020 management used eight twelve-quarter migration periods.
Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. These additional
qualitative factors include: economic conditions (including uncertainties associated with the COVID-19 pandemic), trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal
and regulatory environment.
Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts
are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and
then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either purchased credit-impaired (PCI) or purchased performing.
PCI loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all
contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality. The PCI loans are segregated into pools
based on loan type and credit risk. Loan type is determined based on collateral type, purpose, and lien position. Credit risk characteristics include risk rating groups, nonaccrual status, and past due status. For valuation purposes, these pools are
further disaggregated by maturity, pricing characteristics, and re-payment structure. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable
difference and is not recorded. Any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized as interest income over the remaining life of the loan when there is a reasonable
expectation about the amount and timing of such cash flows.
On an annual basis, the estimate of cash flows expected to be collected on PCI loans is evaluated. Estimates of cash flows for PCI loans require
significant judgment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses resulting in an increase to the allowance for loan losses. Subsequent significant increases in cash flows may result in a
reversal of post-acquisition provision for loan losses or a transfer from nonaccretable difference to accretable yield that increases interest income over the remaining life of the loan, or pool(s) of loans. Disposals of loans, which may include sale
of loans to third parties, receipt of payments in full or in part from the borrower or foreclosure of the collateral, result in removal of the loan from the PCI loan portfolio at its carrying amount.
The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired
loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan
losses established at the acquisition date for purchased performing loans. A provision for loan losses may be required for any deterioration in these loans in future periods.
TROUBLED DEBT RESTRUCTURINGS
In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management grants a concession for other than an
insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty before their loans reach nonaccrual status and works with
them to grant appropriate concessions, if necessary, and modify their loans to more affordable terms. These modified terms could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment
extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the
restructuring as noted above for impaired loans.
TRANSFERS OF FINANCIAL ASSETS
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to
be surrendered when (1) the assets have been isolated from the Company (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership); (2) the transferee obtains the right (free of conditions
that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or
the ability to unilaterally cause the holder to return specific assets.
OTHER REAL ESTATE OWNED (OREO)
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of
foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from
operations and changes in the valuation allowance (direct write-downs) are included in gain on other real estate owned on the Consolidated Statements of Income.
BANK-OWNED LIFE INSURANCE
The Company owns insurance on the lives of a certain group of key employees. The cash surrender value of these policies is included as an asset on the
consolidated balance sheets, and the increase in cash surrender value is recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a
death benefit payment. Any excess in the amount received over the recorded cash surrender value would be recorded as other operating income on the Consolidated Statements of Income.
PREMISES AND EQUIPMENT
Land is carried at cost. Buildings and equipment are stated at cost, less accumulated depreciation and amortization computed on the straight-line method
over the estimated useful lives of the assets. Buildings and equipment are depreciated over their estimated useful lives ranging from 3 to
39 years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold
improvement, whichever is less. Software is amortized over its estimated useful life ranging from 3 to 5 years.
OFF-BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS
In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial letters of credit
and lines of credit. Such financial instruments are recorded when they are funded.
STOCK COMPENSATION PLANS
Stock compensation accounting guidance (FASB ASC 718, “Compensation -- Stock Compensation”) requires that the compensation cost related to share-based
payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based
compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans.
The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service
period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black Scholes model is used to estimate the fair value
of the stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards.
REVENUE RECOGNITION: Revenue recognized from contracts with customers is accounted for under ASC 606 and is primarily included
in the Company’s noninterest income. Fiduciary and asset management fees are earned as the Company satisfies it performance obligation over time. Additional services are transactional-based and the revenue is recognized as incurred. Service
charges on deposit accounts consist account analysis fees, monthly service fees, and other deposit account related fees. Account analysis and monthly service fees, which relate primarily to monthly maintenance, are earned over the course of a month,
representing the period over which the Company satisfies the performance obligation. Other deposit account related fees are largely transactional based and therefore fees are recognized at the point in time when the Company has satisfied its
performance obligation. The Company earns other service charges, commissions and fees from its customers for transaction-based services. Such services include debit card, ATM, merchant services, investment services, and other service charges. In
each case, these service charges and fees are recognized in income at the time or within the same period that the Company’s performance obligation is satisfied. The Company earns interchange fees from debit cardholder transactions conducted through
various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services.
INCOME TAXES
The Company accounts for income taxes in accordance with income tax accounting guidance (FASB ASC 740, “Income Taxes”). The Company adopted the
accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.
Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be
paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability or balance sheet method. Under
this method, the net deferred tax asset or liability is based on the tax effects of the difference between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is
more-likely-than-not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50 percent; the terms examined and upon examination also include
resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent
likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts,
circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of both positive and negative evidence available, it is
more-likely-than-not that some portion or all of a deferred tax asset will not be realized.
The Company recognizes interest and penalties on income taxes as a component of income tax expense. No uncertain tax positions were recorded in 2021 or 2020.
EARNINGS PER COMMON SHARE
Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during
the period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.
Potential common shares that may be issued by the Company relate to shares to be issued as part of the employee stock purchase plan and are determined using the treasury stock method. Nonvested restricted stock shares are included in the calculation
of basic earnings per share due to their rights to voting and dividends.
TRUST ASSETS AND INCOME
Securities and other property held by Trust in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying
Consolidated Financial Statements.
ADVERTISING EXPENSES
Advertising expenses are expensed as incurred. Advertising expense for the years ended 2021 and 2020 was $217 thousand and $230 thousand, respectively.
COMPREHENSIVE INCOME
Comprehensive income consists of net income and other comprehensive income, net of tax. Other comprehensive income, net of tax includes unrealized gains
and losses on securities available-for-sale which is also recognized a separate component of equity.
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair
value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.
RECENT ACCOUNTING PRONOUNCEMENTS
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical
experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques
applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities
and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11, ASU No. 2020-02, and ASU No.
2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The new standard will be effective for the Company beginning on January 1, 2023.
The amendments of ASC 326, upon adoption, will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard
being recorded as an adjustment to opening retained earnings in the period of adoption. The Company has established a committee to oversee the adoption of ASC 326. The Company has engaged a vendor to assist in modeling expected lifetime losses
under ASC 326, gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard, performed procedures to validate the historical loan loss data to ensure its suitability and
reliability for purposes of developing an estimate of expected credit losses under ASC 326, and is continuing to develop and refine an approach to estimating the allowance for credit losses. The adoption of ASC 326 will result in significant
changes to the Company’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in total equity and regulatory capital of the Bank, differences in
the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Company has not yet determined an estimate of the effect of these changes. The adoption of the standard will
also result in significant changes in the Company’s internal control over financial reporting related to the allowance for credit losses.
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on
the Company’s financial position, results of operations or cash flows.
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Restrictions on Cash and Amounts Due from Banks |
12 Months Ended |
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Dec. 31, 2021 | |
Restrictions on Cash and Amounts Due from Banks [Abstract] | |
Restrictions on Cash and Amounts Due from Banks |
NOTE 2, Restrictions on Cash and Amounts Due from Banks
The Company is subject to reserve balance requirements determined by applying the reserve ratios specified in the FRB’s Regulation D. At December 31,
2021 and 2020, the Company had no balance requirements on any of its accounts. The Company had approximately $3.9 million and $9.8 million in deposits in
financial institutions in excess of amounts insured by the FDIC at December 31, 2021 and December 31, 2020, respectively.
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Securities Portfolio |
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Securities Portfolio [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Portfolio |
NOTE 3, Securities Portfolio
The amortized cost and fair value, with gross unrealized gains and losses, of securities available-for-sale were:
Securities with a fair value of $59.3 million and $69.4 million at December 31, 2021 and 2020, respectively, were pledged to secure public deposits, securities sold under agreements to repurchase, FHLB
advances and for other purposes required or permitted by law.
At December 31, 2021, the Company held no securities of any
single issuer (excluding U.S. Government agencies) with a book value that exceeded 10 percent of stockholders’ equity.
The amortized cost and fair value of securities by contractual maturity are shown below.
The following table provides information about securities sold in the years ended December 31:
OTHER-THAN-TEMPORARILY IMPAIRED SECURITIES
Management assesses whether the Company intends to sell or it is more-likely-than-not that the Company will be required to sell a security before
recovery of its amortized cost basis less any current-period credit losses. For debt securities that are considered other-than-temporarily impaired and that the Company does not intend to sell and will not be required to sell prior to recovery of the
amortized cost basis, the Company separates the amount of the impairment into the amount that is credit related (credit loss component) and the amount due to all other factors. The credit loss component is recognized in earnings and is the difference
between the security’s amortized cost basis and the present value of its expected future cash flows. The remaining difference between the security’s fair value and the present value of expected future cash flows is due to factors that are not credit
related and is recognized in accumulated other comprehensive income on the consolidated balance sheets.
The present value of expected future cash flows is determined using the best-estimate cash flows discounted at the effective interest rate implicit to
the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. The methodology and assumptions for establishing the best-estimate cash flows vary depending on the type of security. The asset-backed
securities cash flow estimates are based on bond specific facts and circumstances that may include collateral characteristics, expectations of delinquency and default rates, loss severity and prepayment speeds, and structural support, including
subordination and guarantees.
The Company has a process in place to identify debt securities that could potentially have a credit or interest-rate related impairment that is other
than temporary. This process involves monitoring late payments, pricing levels, downgrades by rating agencies, key financial ratios, financial statements, revenue forecasts, and cash flow projections as indicators of credit issues. On a quarterly
basis, management reviews all securities to determine whether an other-than-temporary decline in value exists and whether losses should be recognized. Management considers relevant facts and circumstances in evaluating whether a credit or interest
rate-related impairment of a security is other-than-temporary. Relevant facts and circumstances considered include: (a) the extent and length of time the fair value has been below cost; (b) the reasons for the decline in value; (c) the financial
position and access to capital of the issuer, including the current and future impact of any specific events and (d) for fixed maturity securities, the Company’s intent to sell a security or whether it is more-likely-than-not the Company will be
required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity and for equity securities, the Company’s ability and intent to hold the security for a period of time that allows for the recovery in
value.
The Company did not record impairment charges through
income on securities for the years ended December 31, 2021 and 2020.
The following tables show the number of securities with unrealized losses, the gross unrealized losses and fair value of the Company’s investments with
unrealized losses that are deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:
Certain investments within the Company’s portfolio had unrealized losses at December 31, 2021 and December 31, 2020, as shown in the tables above. The
unrealized losses were primarily driven by changes in market interest rates. The Company purchases only highly-rated securities, including U.S. government agencies and mortgage-backed securities guaranteed by government-sponsored entities. The
municipal and corporate securities portfolios are reviewed regularly to ensure that ratings of individual securities have not deteriorated below the threshold established by the Company’s policy.
Because the Company does not intend to sell the investments and management believes it is unlikely that the Company will be required to sell the
investments before recovery of their amortized cost basis, which may be at maturity, the Company does not consider the investments to be other-than-temporarily impaired at December 31, 2021 or December 31, 2020.
As of December 31, 2021, there were 9
individual available-for-sale securities with a total fair value of $11.5 million that had been in a continuous loss position for more than
12 months. These securities had an unrealized loss of $230 thousand and consisted of government agency obligations and mortgage-backed
securities. As of December 31, 2020, there were 12 individual available-for-sale securities with a fair value totaling $18.5 million that had been in a continuous loss position for more than 12 months. These securities had an unrealized loss of $195 thousand and consisted of government agency obligations and mortgage-backed securities. The Company has determined that these securities are
temporarily impaired at December 31, 2021 and 2020 for the reasons set out below:
Mortgage-backed securities. This category’s unrealized losses are primarily the result of interest rate fluctuations. Because the decline in
market value is attributable to changes in interest rates and not credit quality, the Company does not intend to sell the investments, and it is not likely that the Company will be required to sell the investments before recovery of their amortized
cost basis, which may be maturity, the Company does not consider those investments to be other-than-temporarily impaired. Also, the majority of the Company’s mortgage-backed securities are agency-backed securities, which have a government guarantee.
Obligations of state and political subdivisions. This category’s unrealized losses are primarily the result of interest rate fluctuations and
also a certain few ratings downgrades brought about by the impact of the credit crisis on states and political subdivisions. The contractual terms of the investments do not permit the issuer to settle the securities at a price less than the cost
basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to sell any of the investments before recovery of its
amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.
Corporate bonds. The Company’s unrealized losses in corporate debt securities are related to both interest rate fluctuations and ratings
downgrades for a limited number of securities. The majority of the securities remain investment grade and the Company’s analysis did not indicate the existence of a credit loss. The contractual terms of the investments do not permit the issuer to
settle the securities at a price less than the cost basis of each investment. Because the Company does not intend to sell any of the investments and the accounting standard of “more likely than not” has not been met for the Company to be required to
sell any of the investments before recovery of its amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.
Restricted Stock
The restricted stock category is comprised of FHLB, Federal Reserve Bank, and CBB stock. These stocks are classified as restricted securities because
their ownership is restricted to certain types of entities and the securities lack a market. Therefore, these investments are carried at cost and evaluated for impairment. When evaluating these stocks for impairment, their value is determined based
on the ultimate recoverability of the par value rather than by recognizing temporary declines in value. Restricted stock is viewed as a long-term investment and management believes that the Company has the ability and the intent to hold this stock
until its value is recovered.
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Loans and Allowance for Loan Losses |
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Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses |
NOTE 4. Loans and Allowance for Loan Losses
The following is a summary of the balances in each class of the Company’s loan portfolio as of the dates indicated:
ACQUIRED LOANS
The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets are as follows:
The Company did not have any
outstanding principal balance or related carrying amount of purchased credit-impaired loans as of December 31, 2021 and 2020, respectively. The following table presents changes in the accretable yield on purchased credit impaired loans, for which the
Company applies FASB ASC 310-30:
CREDIT QUALITY INFORMATION
The Company uses internally-assigned risk grades to estimate the capability of borrowers to repay the contractual obligations of their loan agreements as scheduled or at all.
The Company’s internal risk grade system is based on experiences with similarly graded loans. Credit risk grades are updated at least quarterly as additional information becomes available, at which time management analyzes the resulting scores to
track loan performance.
The Company’s internally assigned risk grades are as follows:
The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated:
As of December 31, 2021 and 2020 the Company did not have
any loans internally classified as Loss or Doubtful.
AGE ANALYSIS OF PAST DUE LOANS BY CLASS
All classes of loans are considered past due if the required principal and interest payments have not been received as of the date such payments were
due. Interest and fees continue to accrue on past due loans until the date the loan is placed in nonaccrual status, if applicable. The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table
below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection.
Age Analysis of Past Due Loans as of December 31, 2021
In the table above, the past due totals include small business and student loans with principal and interest amounts that are 97 - 100% guaranteed by the federal government. The past
due principal portion of these guaranteed loans totaled $1.4 million at December 31, 2021.
Age Analysis of Past Due Loans as of December 31, 2020
In the table above, the past due totals include student loans with principal and interest amounts that are 97 - 98% guaranteed by the federal government. The past
due principal portion of these guaranteed loans totaled $1.2 million at December 31, 2020.
NONACCRUAL LOANS
The Company generally places commercial loans (including construction loans and commercial loans secured and not secured by real estate) in nonaccrual
status when the full and timely collection of interest or principal becomes uncertain, part of the principal balance has been charged off and no restructuring has occurred or the loan reaches 90 days past due, unless the credit is well-secured and in
the process of collection.
Under regulatory rules, consumer loans, which are loans to individuals for household, family and other personal expenditures, and consumer loans secured
by real estate (including residential 1 - 4 family mortgages, second mortgages, and equity lines of credit) are not required to be placed in nonaccrual status. Although consumer loans and consumer loans secured by real estate are not required to be
placed in nonaccrual status, the Company may elect to place these loans in nonaccrual status, if necessary to avoid a material overstatement of interest income. Generally, consumer loans secured by real estate are placed in nonaccrual status only
when payments are 120 days past due.
Generally, consumer loans not secured by real estate are placed in nonaccrual status only when part of the principal has been charged off. If a
charge-off has not occurred sooner for other reasons, a consumer loan not secured by real estate will generally be placed in nonaccrual status when payments are 120 days past due. These loans are charged off or written down to the net realizable
value of the collateral when deemed uncollectible, when classified as a “loss,” when repayment is unreasonably protracted, when bankruptcy has been initiated, or when the loan is 120 days or more past due unless the credit is well-secured and in the
process of collection.
When management places a loan in nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and the loan is accounted
for by the cash basis or cost recovery method, until it qualifies for return to accrual status or is charged off. Generally, loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and
future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months.
The following table presents loans in nonaccrual status by class of loan as of the dates indicated:
The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the
Company on nonaccrual loans for the periods presented:
TROUBLED DEBT RESTRUCTURINGS
The Company’s loan portfolio may include certain loans classified as TDRs, where economic concessions have been granted to borrowers who are experiencing
financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment extensions,
forgiveness of principal, forbearance or other actions intended to maximize collection. The Company defines a TDR as nonperforming if the TDR is in nonaccrual status or is 90 days or more past due and still accruing interest at the report date. When
the Company modifies a loan, management evaluates any possible impairment as discussed further below under Impaired Loans.
There were no new TDRs in 2021. There were three TDRs in 2020; however as of December 31, 2020, two
were sold and the remaining credit was determined to no longer be classified as a TDR because the borrower was not in financial distress.
At December 31, 2021 and 2020, the Company had no outstanding commitments to disburse additional funds on any TDR. There were no loans secured by residential 1 - 4 family real estate that were in the process of foreclosure at December 31, 2021 and 2020, respectively.
In the years ended December 31, 2021 and 2020 there were no defaulting TDRs where the default occurred within twelve months of restructuring. The Company considers a TDR in default when any of the following occurs: the loan, as restructured, becomes
90 days or more past due; the loan is moved to nonaccrual status following the restructure; the loan is restructured again under terms that would qualify it as a TDR if it were not already so classified; or any portion of the loan is charged off.
All TDRs are factored into the determination of the allowance for loan losses and included in the impaired loan analysis, as discussed below.
The Company made loan modifications under the CARES Act,
enacted on March 27, 2020, and subsequently amended by the Consolidated Appropriations Act 2021, which provided that certain loan modifications that were (1) related to COVID-19 and (2) for loans that were not more than 30 days past due as of December 31, 2019 are not
required to be designated as TDRs. At December 31, 2021, the Company had no loan modifications under the CARES Act compared to $7.4 million as of December 31, 2020.
IMPAIRED LOANS
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled
payments of principal or interest when due according to the contractual terms of the loan agreement. Impaired loans include nonperforming loans and loans modified in a TDR. When management identifies a loan as impaired, the impairment is measured
based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the sole or remaining source of repayment for the loan is the operation or liquidation of the collateral. In these cases,
management uses the current fair value of the collateral, less selling costs, when foreclosure is probable, instead of the discounted cash flows. If management determines that the value of the impaired loan is less than the recorded investment in the
loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance.
When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is in nonaccrual status, all payments are applied to
principal under the cost recovery method. For financial statement purposes, the recorded investment in the loan is the actual principal balance reduced by payments that would otherwise have been applied to interest. When reporting information on
these loans to the applicable customers, the unpaid principal balance is reported as if payments were applied to principal and interest under the original terms of the loan agreements. Therefore, the unpaid principal balance reported to the customer
would be higher than the recorded investment in the loan for financial statement purposes. When the ultimate collectability of the total principal of the impaired loan is not in doubt and the loan is in nonaccrual status, contractual interest is
credited to interest income when received under the cash basis method.
The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans,
exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for
the periods presented. The average balances are calculated based on daily average balances.
ALLOWANCE FOR LOAN LOSSES
Loans are either individually evaluated for impairment or pooled with like loans and collectively evaluated for impairment. Also, various qualitative
factors are applied to each segment of the loan portfolio. The allowance for loan losses is the accumulation of these components. Management’s estimate is based on certain observable, historical data and other factors that management believes are
most reflective of the underlying credit losses being estimated.
Management provides an allocated component of the allowance for loans that are individually evaluated for impairment. An allocated allowance is
established when the discounted value of expected future cash flows from the impaired loan (or the collateral value or observable market price of the impaired loan) is lower than the carrying value of that loan. This allocation represents the sum of
management’s estimated losses on each loan.
Loans collectively evaluated for impairment are pooled, with a historical loss rate, based on migration analysis, applied to each pool, segmented by risk
grade or days past due, depending on the type of loan. Based on credit risk assessments and management’s analysis of qualitative factors (including uncertainties associated with the COVID-19 pandemic), additional loss factors are applied to loan
balances. These additional qualitative factors include: economic conditions, trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal and regulatory environment.
Given the timing of the outbreak in the United States of
the COVID-19 pandemic combined with government stimulus
actions for both individuals and small businesses, management does not believe that the Company’s performance in relation to credit quality during 2021 and 2020 was significantly impacted. The COVID-19 pandemic represents an unprecedented challenge to the global economy in general and the financial services sector in particular. It is impossible for the Company to accurately predict the impact that the pandemic will have
on the Company’s primary market and the overall extent to which it will affect the Company’s financial condition and results of operations. Based on capital levels, stress testing indications, prudent underwriting policies, watch credit
processes, and loan concentration diversification, the Company currently expects to be able to manage the economic risks and uncertainties associated with the pandemic which may include additional increases in the provision for loan losses.
ALLOWANCE FOR LOAN LOSSES BY SEGMENT
The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods
presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS
For the Year ended December 31, 2021
For the Year ended December 31, 2020
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Other Real Estate Owned (OREO) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO) [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO) |
NOTE 5, Other Real Estate Owned (OREO)
The Company holds certain parcels of real estate due to completed foreclosure proceedings on defaulted loans. An analysis of the balance in OREO is as
follows:
OREO is presented net of a valuation allowance for losses. As the fair values of OREO change, adjustments are made to the recorded investment in the
properties through the valuation allowance to ensure that all properties are recorded at the lower of cost or fair value. Properties written down in previous periods can be written back up if a current property valuation warrants the change, though
never above the original cost of the property.
Expenses applicable to OREO include the following:
(1) Included in other
operating income and other operating expense on the Consolidated Statements of Income.
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Premises and Equipment |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment |
NOTE 6, Premises and Equipment
Premises and equipment consisted of the following at December 31:
Depreciation expense was $2.1
million for each of the years ended December 31, 2021 and 2020.
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Leases |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
NOTE 7. Leases
On January 1, 2019, the Company adopted ASU No. 2016-02 “Leases (Topic 842)” and all subsequent ASUs that modified Topic 842. The Company elected the optional transition
method provided by ASU 2018-11 and did not adjust prior periods for ASC 842. The Company also elected certain practical expedients within the standard and consistent with such elections did not reassess whether any expired or existing contracts are
or contain leases, did not reassess the lease classification for any expired or existing leases, and did not reassess any initial direct costs for existing leases. The right-of-use asset and lease liability are included in
and ,
respectively, in the consolidated balance sheets. The Company did not execute or extend any leases during 2021.Lease liabilities represent the Company’s obligation to make lease payments and are presented at each reporting date as the net present value of the remaining
contractual cash flows. Cash flows are discounted at the Company’s incremental borrowing rate in effect at the commencement date of the lease if the rate implicit in the lease is unattainable. Right-of-use assets represent the Company’s right to use
the underlying asset for the lease term and are calculated as the sum of the lease liability and if applicable, prepaid rent, initial direct costs and any incentives received from the lessor.
The Company’s long-term lease agreements are classified as operating leases. Certain of these leases offer the option to extend the lease term and the Company has
included such extensions in its calculation of the lease liabilities to the extent the options are reasonably assured of being exercised. The lease agreements do not provide for residual value guarantees and have no restrictions or covenants that
would impact dividends or require incurring additional financial obligations.
The following tables present information about the Company’s leases:
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:
The aggregate rental expense of premises and equipment was $470
thousand and $415 thousand for years ended December 31, 2021 and 2020, respectively.
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Low-Income Housing Tax Credits |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Low-Income Housing Tax Credits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Low-Income Housing Tax Credits |
NOTE 8, Low-Income Housing Tax Credits
The Company was invested in four
separate housing equity funds at both December 31, 2021 and December 31, 2020. The general purpose of these funds is to encourage and assist participants in investing in low-income residential rental properties located in the Commonwealth of
Virginia, develop and implement strategies to maintain projects as low-income housing, deliver Federal Low Income Housing Credits to investors, allocate tax losses and other possible tax benefits to investors, and preserve and protect project assets.
The investments in these funds were recorded as other assets on the consolidated balance sheets and were $1.9 million and $2.3 million at December 31, 2021 and December 31,
2020, respectively. The expected terms of these investments and the related tax benefits run through 2033. There were no additional
committed capital calls as of December 31, 2021 compared to $18 thousand at December 31, 2020. Additional committed capital calls are
recorded in accrued expenses and other liabilities on the corresponding consolidated balance sheets. During the years ended December 31, 2021 and 2020, the Company recognized amortization expense of $410 thousand and $688 thousand, respectively, which was included
within noninterest expense on the Consolidated Statements of Income.
The table below summarizes the tax credits and other tax benefits recognized by the Company and related to these investments, as of the periods
indicated:
* Computed using a 21% tax rate.
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Deposits |
12 Months Ended | |||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||
Deposits |
NOTE 9, Deposits
The aggregate amount of time deposits in denominations of $250
thousand or more at December 31, 2021 and 2020 was $39.9 million and $45.4 million, respectively. As of December 31, 2021, no single customer
relationship exceeded 5 percent of total deposits.
At December 31, 2021 the scheduled maturities of time deposits (in thousands) are as follows:
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Borrowings |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings |
NOTE 10, Borrowings
Short-Term Borrowings
The Company classifies all borrowings that will mature within a year from the date on which the Company enters into them as short-term borrowings.
Short-term borrowings sources consist of federal funds purchased, overnight repurchase agreements (which are secured transactions with customers that generally mature within
to four days), and advances from the FHLB.The Company maintains federal funds lines with several correspondent banks to address short-term borrowing needs. At December 31, 2021 and 2020 the
remaining credit available from these lines totaled $115.0 million and $100.0 million, respectively. The Company has a collateral dependent line of credit with the FHLB with remaining credit availability of $391.3 million and $374.7 million as of December 31, 2021 and
December 31, 2020, respectively.
The following table presents total short-term borrowings as of the dates indicated (dollars in thousands):
Long-Term Borrowings
At December 31, 2021 and 2020, the Company had $480
thousand and $28.6 million, respectively, outstanding in long-term FRB borrowings under PPPLF which all mature in
and carry an interest rate of 0.35%.The Company also obtained a loan maturing on
April 1, 2023 from a correspondent bank during the second quarter of 2018 to provide partial funding for the Citizens acquisition. The
terms of the loan include a LIBOR based interest rate that adjusts monthly and quarterly principal curtailments. At December 31, 2020, the outstanding balance was $1.4 million, and the then-current interest rate was 2.61%. The Company elected to pay the loan in full
during the first quarter of 2021.
On July 14, 2021, the Company completed the issuance of $29.4 million, net of issuance costs, or $30.0 million in aggregate principal amount of subordinated notes (the Notes) due in
in a private placement transaction. The Notes bear interest at a fixed rate of 3.5%
for five years and at the three-month
SOFR plus 286 basis points, resetting quarterly, thereafter. |
Share-Based Compensation |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation |
NOTE 11, Share-Based Compensation
The Company has adopted an employee stock purchase plan and offers share-based compensation through its equity compensation plan. Share-based
compensation arrangements may include stock options, restricted and unrestricted stock awards, restricted stock units, performance units and stock appreciation rights. Accounting standards require all share-based payments to employees to be valued
using a fair value method on the date of grant and to be expensed based on that fair value over the applicable vesting period. The Company accounts for forfeitures during the vesting period as they occur.
The 2016 Incentive Stock Plan (the Incentive Stock Plan) permits the issuance of up to 300,000 shares of common stock for awards to key employees and non-employee directors of the Company and its subsidiaries in the form of stock options, restricted stock, restricted stock
units, stock appreciation rights, stock awards and performance units. As of December 31, 2021, only restricted stock had been granted under the Incentive Stock Plan.
Restricted stock activity for the year ended December 31, 2021 is summarized below.
The weighted average period over which nonvested awards are expected to be recognized in compensation expense is 1.51 years.
The fair value of restricted stock granted during the year ended December 31, 2021 and 2020 was $403 thousand and $298 thousand, respectively.
The remaining unrecognized compensation expense for nonvested restricted stock shares totaled $351 thousand as of December 31, 2021 and $254 thousand as of December 31, 2020.
Stock-based compensation expense was $294
thousand and $261 thousand for the years ended December 31, 2021 and 2020, respectively.
Under the Company’s Employee Stock Purchase Plan (ESPP), substantially all employees of the Company and its subsidiaries can authorize a specific payroll
deduction from their base compensation for the periodic purchase of the Company’s common stock. Shares of stock are issued quarterly at a discount to the market price of the Company’s stock on the day of purchase, which can range from 0-15% and for 2021 and 2020 was set at 5%.
Total stock purchases under the ESPP amounted to 4,908
shares during 2021 and 5,819 shares during 2020. At December 31, 2021, the Company had 227,543 remaining shares reserved for issuance under the ESPP.
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Stockholders' Equity and Earnings per Common Share |
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Stockholders' Equity and Earnings Per Common Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Earnings Per Common Share |
NOTE 12, Stockholders’ Equity and Earnings per Common Share
STOCKHOLDERS’ EQUITY—ACCUMULATED OTHER COMPREHENSIVE INCOME
The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:
The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated:
The following table presents the change in each component of accumulated other comprehensive income, net of tax on a pre-tax and after-tax basis for the periods indicated.
EARNINGS PER COMMON SHARE
Basic EPS is computed by dividing net income by the weighted average number of common shares outstanding during the period. Diluted EPS is computed using
the weighted average number of common shares outstanding during the period, including the effect of dilutive potential common shares attributable to the ESPP.
The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2021 and 2020:
The Company had no antidilutive
shares in 2021 or 2020. Non-vested restricted common shares, which carry all rights and privileges of a common share with respect to the stock, including the right to vote, were included in the basic and diluted per common share calculations.
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Related Party Transactions |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions |
NOTE 13, Related Party Transactions
In the ordinary course of business, the Company has granted loans to principal stockholders, executive officers and directors and their affiliates. These
loans were made on substantially the same terms and conditions, including interest rates, collateral and repayment terms, as those prevailing at the same time for comparable transactions with unrelated persons, and, in the opinion of management and
the Company’s board of directors, do not involve more than normal risk or present other unfavorable features. None of the principal stockholders, executive officers or directors had direct or indirect loans exceeding 10 percent of stockholders’ equity at December 31, 2021.
Annual activity consisted of the following:
Deposits from related parties held by the Company at December 31, 2021 and 2020 amounted to $19.8 million and $17.2 million, respectively.
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Income Taxes |
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Income Taxes [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes |
NOTE 14, Income Taxes
The components of income tax expense for the current and prior year-ends are as follows:
A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods
follows:
The effective tax rates for 2021 and 2020 were 13.3% and 8.8%, respectively.
The components of the net deferred tax asset, included in other assets, are as follows:
The Company files income tax returns in the U.S. federal jurisdiction and the Commonwealth of Virginia. With few exceptions, the Company is no
longer subject to U.S. federal, state and local income tax examinations by tax authorities for years prior to 2018.
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Commitments and Contingencies |
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies |
NOTE 15, Commitments and Contingencies
CREDIT-RELATED FINANCIAL INSTRUMENTS
The Company is a party to credit-related financial instruments with off-balance-sheet risk in the normal course of business in order to meet the
financing needs of its customers. These financial instruments include commitments to extend credit, standby letters of credit and commercial letters of credit. Such commitments involve, to varying degrees, elements of credit and interest rate risk in
excess of the amount recognized in the consolidated balance sheets.
The Company’s exposure to credit loss is represented by the contractual amount of these commitments. The Company follows the same credit policies in
making such commitments as it does for on-balance-sheet instruments.
The following financial instruments whose contract amounts represent credit risk were outstanding at:
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent
future cash requirements. The Company evaluates each customer’s credit-worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company, upon extensions of credit is based on management’s credit evaluation of
the customer. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment and income-producing commercial properties.
Unfunded commitments under commercial lines of credit, revolving credit lines, and overdraft protection agreements are commitments for possible future
extensions of credit to existing customers. These lines of credit are not collateralized and usually do not contain a specified maturity date, and ultimately may or may not be drawn upon to the total extent to which the Company is committed.
Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those letters of
credit are primarily issued to support public and private borrowing arrangements. Essentially all letters of credit issued have expiration dates within one year, with the exception of four letters of credit which expire in
, all of which are secured by real estate. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to
customers. The Company holds various collateral supporting those commitments for which collateral is deemed necessary.LEGAL CONTINGENCIES
Various legal claims arise from time to time in the normal course of business, which, in the opinion of management, will not have a material effect on
the Company’s Consolidated Financial Statements.
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Fair Value Measurements |
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Fair Value Measurements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements |
NOTE 16, Fair Value Measurements
DETERMINATION OF FAIR VALUE
The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In
accordance with the “Fair Value Measurements and Disclosures” topics of FASB ASU No. 2010-06 and FASB ASU No. 2011-04, and FASB ASU No. 2016-01, the fair value of a financial instrument is the price that would be received in the sale of an asset or
transfer of a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market
prices. However, in many instances, there are no quoted market prices for the Company’s various financial instruments. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation
techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimate of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.
The fair value guidance provides a consistent definition of fair value, which focuses on exit price in the principal or most advantageous market for the
asset or liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level
of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement
date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value can be a reasonable point within a range that is most representative of fair value under current market
conditions.
In estimating the fair value of assets and liabilities, the Company relies mainly on two models. The first model, used by the Company’s bond accounting
service provider, determines the fair value of securities. Securities are priced based on an evaluation of observable market data, including benchmark yield curves, reported trades, broker/dealer quotes, and issuer spreads. Pricing is also impacted
by credit information about the issuer, perceived market movements, and current news events impacting the individual sectors. The second source is a third party vendor the Company utilizes to provide fair value exit pricing for loans and interest
bearing deposits in accordance with guidance.
In accordance with ASC 820, “Fair Value Measurements and Disclosures,” the Company groups its financial assets and financial liabilities generally
measured at fair value into three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.
An instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value
measurement.
ASSETS MEASURED AT FAIR VALUE ON A RECURRING BASIS
Debt securities with readily determinable fair values that are classified as “available-for-sale” are recorded at fair value, with unrealized gains and
losses excluded from earnings and reported in other comprehensive income. Securities available-for-sale are recorded at fair value on a recurring basis. Fair value measurement is based upon quoted market prices, when available (Level 1). If quoted
market prices are not available, fair values are measured utilizing independent valuation techniques of identical or similar securities for which significant assumptions are derived primarily from or corroborated by observable market data. Third
party vendors compile prices from various sources and may determine the fair value of identical or similar securities by using pricing models that consider observable market data (Level 2). In certain cases where there is limited activity or less
transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. Currently, all of the Company’s available-for-sale securities are considered to be Level 2 securities.
The following tables present the balances of certain assets measured at fair value on a recurring basis as of the dates indicated:
ASSETS MEASURED AT FAIR VALUE ON A NONRECURRING BASIS
Under certain circumstances, adjustments are made to the fair value for assets and liabilities although they are not measured at fair value on an ongoing
basis.
Impaired loans
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled
payments of principal or interest when due according to the contractual terms of the loan agreement. The measurement of fair value and loss associated with impaired loans can be based on the observable market price of the loan, the fair value of the
collateral securing the loan, or the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate rather than at a market rate. Collateral may be in the form of real estate or business assets including
equipment, inventory, and accounts receivable, with the vast majority of the collateral in real estate.
The value of real estate collateral is determined utilizing an income, market, or cost valuation approach based on an appraisal conducted by an
independent, licensed appraiser outside of the Company. In the case of loans with lower balances, the Company may obtain a real estate evaluation instead of an appraisal. Evaluations utilize many of the same techniques as appraisals, and are
typically performed by independent appraisers. Once received, appraisals and evaluations are reviewed by trained staff independent of the lending function to verify consistency and reasonability. Appraisals and evaluations are based on significant
unobservable inputs, including but not limited to: adjustments made to comparable properties, judgments about the condition of the subject property, the availability and suitability of comparable properties, capitalization rates, projected income of
the subject or comparable properties, vacancy rates, projected depreciation rates, and the state of the local and regional economy. The Company may also elect to make additional reductions in the collateral value based on management’s best judgment,
which represents another source of unobservable inputs. Because of the subjective nature of collateral valuation, impaired loans are considered Level 3.
Impaired loans may be secured by collateral other than real estate. The value of business equipment is based upon an outside appraisal if deemed
significant, or the net book value on the applicable business’ financial statements if not considered significant using observable market data. Likewise, values for inventory and accounts receivable collateral are based on financial statement
balances or aging reports (Level 3). If a loan is not collateral-dependent, its impairment may be measured based on the present value of expected future cash flows, discounted at the loan’s effective interest rate. Because the loan is discounted at
its effective rate of interest, rather than at a market rate, the loan is not considered to be held at fair value and is not included in the tables below. Collateral-dependent impaired loans allocated to the allowance for loan losses are measured at
fair value on a nonrecurring basis. Any fair value adjustments are recorded in the period incurred as part of the provision for loan losses on the Consolidated Statements of Income.
Other Real Estate Owned (OREO)
Loans are transferred to OREO when the collateral securing them is foreclosed on. The measurement of loss associated with OREO is based on the fair value
of the collateral compared to the unpaid loan balance and anticipated costs to sell the property. If there is a contract for the sale of a property, and management reasonably believes the transaction will be consummated in accordance with the terms
of the contract, fair value is based on the sale price in that contract (Level 1). If management has recent information about the sale of identical properties, such as when selling multiple condominium units on the same property, the remaining units
would be valued based on the observed market data (Level 2). Lacking either a contract or such recent data, management would obtain an appraisal or evaluation of the value of the collateral as discussed above under Impaired Loans (Level 3). After the
asset has been booked, a new appraisal or evaluation is obtained when management has reason to believe the fair value of the property may have changed and no later than two years after the last appraisal or evaluation was received. Any fair value
adjustments to OREO below the original book value are recorded in the period incurred and expensed against current earnings.
Loans Held For Sale
Loans held for sale are carried at the lower of cost or fair value. These loans currently consist of residential loans originated for sale in the
secondary market. Fair value is based on the price secondary markets are currently offering for similar loans using observable market data which is not materially different than cost due to the short duration between origination and sale (Level 2).
Gains and losses on the sale of loans are reported on a separate line item on the Company’s Consolidated Statements of Income.
The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded.
Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate.
These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below.
The Company did not have any Level 3 Fair Value Measurements at December 31, 2020. The following table displays quantitative information about
Level 3 Fair Value Measurements as of December 31, 2021:
FASB ASC 825, “Financial Instruments,” requires disclosure about fair value of financial instruments and excludes certain financial instruments and all
non-financial instruments from its disclosure requirements. Accordingly, the aggregate fair value amounts presented may not necessarily represent the underlying fair value of the Company’s assets.
The following presents the carrying amount, fair value, and placement in the fair value hierarchy of the Company’s financial instruments as of December
31, 2021 and December 31, 2020. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between origination of the instrument and its expected
realization. For non-marketable equity securities such as Federal Home Loan Bank and Federal Reserve Bank stock, the carrying amount is a reasonable estimate of fair value as these securities can only be redeemed or sold at their par value and only
to the respective issuing government-supported institution or to another member institution. For financial liabilities such as noninterest-bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of
fair value due to these products having no stated maturity. Fair values for December 31, 2021 and 2020 are estimated under the exit price notion in accordance with ASU No. 2016-01, “Recognition and Measurement of Financial Assets and Financial
Liabilities.”
The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments as of the dates indicated are as
follows:
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Regulatory Matters |
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Regulatory Matters |
NOTE 17, Regulatory Matters
The Bank is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements
can cause certain mandatory and possibly additional discretionary actions to be initiated by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital adequacy guidelines and the regulatory
framework for prompt corrective action, the Bank must meet specific capital guidelines that involve quantitative measures of their assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The
capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Federal banking regulations also impose regulatory capital requirements on bank holding companies.
Under the small bank holding company policy statement of the FRB, which applies to certain bank holding companies with consolidated total assets of less than $3 billion, the Company is not subject to regulatory capital requirements.
Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios of
total, Tier 1, and common equity tier 1 capital to risk-weighted assets and of Tier 1 capital to average assets. The terms Tier 1 and common equity tier 1 capital, risk-weighted assets and average assets, as used in this note, are as defined in the
applicable regulations. Management believes, as of December 31, 2021 and 2020, that the Company and the Bank meet all capital adequacy requirements to which they are subject.
On September 17, 2019 the FDIC finalized a rule that introduced an optional simplified measure of capital adequacy for qualifying community banking
organizations, CBLRF as required by the EGRRCPA. The CBLRF is designed to reduce burden by removing the requirements for calculating and reporting risk-based capital ratios for qualifying community banking organizations that opt into the framework.
In order to qualify for the CBLR framework, a community banking organization must have a Tier 1 leverage ratio of greater than 9%, less than $10 billion in total consolidated assets, and limited amounts of off-balance-sheet exposures and trading
assets and liabilities. The CBLRF was available for banks to begin using in their March 31, 2020, Call Report. The Bank did not opt into the CBLR framework.
As of December 31, 2021, the most recent notification from the Comptroller categorized the Bank as well-capitalized under the regulatory framework for
prompt corrective action. To be categorized as well-capitalized, an institution must maintain minimum total risk-based, Tier 1 risk-based, common equity tier 1 risk-based and Tier 1 leverage ratios as set forth in the following tables. There are no
conditions or events since the notification that management believes have changed the Bank’s category. The Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the table below.
The approval of the Comptroller is required if the total of all dividends declared by a national bank in any calendar year exceeds the bank’s net profits
for that year combined with its retained net profits for the preceding two calendar years. Under this formula, the Bank and Trust can distribute as dividends to the Company in 2022, without approval of the Comptroller, $8.3 million plus an additional amount equal to the Bank’s and Trust’s retained net profits for 2022 up to the date of any dividend declaration.
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Segment Reporting |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting |
NOTE 18, Segment Reporting
The Company operates in a decentralized fashion in three
principal business segments: the Bank, the Trust, and the Company (for purposes of this Note). Revenues from the Bank’s operations consist primarily of interest earned on loans and investment securities and service charges on deposit accounts.
Trust’s operating revenues consist principally of income from fiduciary and asset management fees. The Parent’s revenues are mainly interest and dividends received from the Bank and Trust companies. The Company has no other segments. The Company’s
reportable segments are strategic business units that offer different products and services. They are managed separately because each segment appeals to different markets and, accordingly, requires different technologies and marketing strategies.
Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended
December 31 follows:
The accounting policies of the segments are the same as those described in the summary of significant accounting policies. The Company evaluates
performance based on profit or loss from operations before income taxes not including nonrecurring gains or losses.
Both the Parent and the Trust companies maintain deposit accounts with the Bank, on terms substantially similar to those available to other customers.
These transactions are eliminated to reach consolidated totals.
The Company operates in one geographical
area and does not have a single external customer from which it derives 10 percent or more of its revenues.
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Condensed Financial Statements of Parent Company |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Condensed Financial Statements of Parent Company [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements of Parent Company |
NOTE 19, Condensed Financial Statements of Parent Company
Financial information pertaining to Old Point Financial Corporation (parent company only) is as follows:
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Significant Accounting Policies (Policies) |
12 Months Ended | ||||||||||||
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Dec. 31, 2021 | |||||||||||||
Significant Accounting Policies [Abstract] | |||||||||||||
PRINCIPLES OF CONSOLIDATION |
PRINCIPLES OF CONSOLIDATION
The consolidated financial statements include the accounts of Old Point Financial Corporation (the Company) and its wholly-owned subsidiaries, The Old
Point National Bank of Phoebus (the Bank) and Old Point Trust & Financial Services N.A. (Trust). All significant intercompany balances and transactions have been eliminated in consolidation.
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BASIS OF PRESENTATION |
BASIS OF PRESENTATION
In preparing Consolidated Financial Statements in conformity with U.S. GAAP, management is required to make estimates and assumptions that affect the
reported amounts of assets and liabilities and disclosure of contingent assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ
from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses and evaluation of goodwill for impairment.
The COVID-19 pandemic has caused a significant disruption in economic activity worldwide, including in market areas served by the
Company. Estimates for the allowance for loan losses at December 31, 2021 include probable and estimable losses related to the pandemic. While there have been signals of economic recovery and a resumption of many types of business activity, there
remains significant uncertainty in the probable and estimable measurement of these losses. If there are further challenges to the economic recovery, then additional provision for loan losses may be required in future periods. It is unknown how long
these conditions will last and what the ultimate financial impact will be to the Company. Depending on the severity and duration of the economic consequences of the pandemic, the Company’s goodwill may become impaired.
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SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK |
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK
Most of the Company’s activities are with customers located within the Hampton Roads region. The types of securities that the Company invests in are
included in Note 3. The types of lending that the Company engages in are included in Note 4. The Company has significant concentrations in the following industries: construction, lessors of real estate, activities related to real estate, ambulatory
health care and religious organizations. The Company does not have any significant concentrations to any one customer.
At December 31, 2021 and 2020, there were $460.1
million and $383.4 million, or 54.5%
and 45.8%, respectively, of total loans concentrated in commercial real estate. Commercial real estate for purposes of this note includes
all construction loans, loans secured by multifamily residential properties, loans secured by farmland and loans secured by nonfarm, nonresidential properties. Refer to Note 4 for further detail.
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CASH AND CASH EQUIVALENTS |
CASH AND CASH EQUIVALENTS
For purposes of the consolidated statements of cash flows, cash and cash equivalents includes cash and balances due from banks and federal funds sold,
all of which mature within 90 days. The Bank is typically required to maintain cash reserve balances on hand or with the Federal Reserve Bank (FRB). At December 31, 2021, there was no minimum reserve requirement as a result of a rule adopted by the
FRB in March 2020 eliminating the reserve requirement.
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INTEREST-BEARING DEPOSITS IN BANKS |
INTEREST-BEARING DEPOSITS IN BANKS
Interest-bearing deposits in banks mature within one year and are carried at cost.
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SECURITIES |
SECURITIES
Certain debt securities that management has the positive intent and ability to hold until maturity are classified as held-to-maturity and recorded at
amortized cost. Securities not classified as held-to-maturity, excluding equity securities with readily determinable fair values which are recorded at fair value through the income statement, are classified as available-for-sale and recorded at fair
value, with unrealized gains and losses excluded from earnings and reported in accumulated other comprehensive income. Purchase premiums and discounts are recognized in interest income using the interest method over the terms of the securities. Gains
and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method. The Company has no trading securities.
The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns
warrant such evaluation. The Company employs a systematic methodology that considers available evidence in evaluating potential impairment of its investments. In the event that the cost of an investment exceeds its fair value, the Company evaluates,
among other factors, the magnitude and duration of the decline in fair value; the expected cash flows of the securities; the financial health of and business outlook for the issuer; the performance of the underlying assets for interests in
securitized assets; and the Company’s intent and ability to hold the investment. Once a decline in fair value is determined to be other-than-temporary, an impairment charge is recorded in investment income and a new cost basis in the investment is
established.
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RESTRICTED SECURITIES, AT COST |
RESTRICTED SECURITIES, AT COST
The Company, as a member of the Federal Reserve Bank (FRB) and the Federal Home Loan Bank of Atlanta (FHLB), is required to maintain an investment in the
capital stock of both the FRB and the FHLB. The Company also has an investment in the capital stock of Community Bankers’ Bank (CBB). Based on the redemption provisions of these investments, the stocks have no quoted market value, are carried at cost
and are listed as restricted securities. The Company reviews its holdings for impairment based on the ultimate recoverability of the cost basis in the FRB, FHLB, and CBB stock.
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LOANS HELD FOR SALE |
LOANS HELD FOR SALE
The Company records loans held for sale using the lower of cost or fair value. Net unrealized losses, if any, are recognized through a valuation
allowance by charges to income. Any changes in the application of lower of cost or market accounting of loans held for sale is recorded as a component of “Mortgage banking income” within the Company’s Consolidated Statements of Income.
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LOANS |
LOANS
The Company extends loans to individual consumers and commercial customers for various purposes. Most of the Company’s loans are secured by real estate,
including real estate construction loans, real estate commercial loans, and real estate mortgage loans (i.e., residential 1-4 family mortgages, second mortgages and equity lines of credit). Other loans are secured by collateral that is not real
estate, which may include inventory, accounts receivable, equipment or other personal property. A substantial portion of the loan portfolio is represented by real estate mortgage loans throughout Hampton Roads. The ability of the Company’s debtors to
honor their contracts is dependent in part upon the real estate and general economic conditions in this area.
Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their
outstanding unpaid principal balances adjusted for unearned income, the allowance for loan losses and any unamortized deferred fees or costs on originated loans.
For loans amortized at cost, interest income is accrued based on the unpaid principal balance. Loan origination fees, net of certain direct origination
costs, as well as premiums and discounts, are deferred and amortized as a level yield adjustment over the respective term of the loan.
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PAYCHECK PROTECTION PROGRAM |
PAYCHECK PROTECTION PROGRAM
Beginning in April 2020, the Company originated loans under the Paycheck Protection Program (PPP) of the Small Business Administration (SBA). PPP loans
are fully guaranteed by the SBA, and in some cases borrowers may be eligible to obtain forgiveness of the loans, in which case loans would be repaid by the SBA. As repayment of the PPP loans is guaranteed by the SBA, the Company does not recognize a
reserve for PPP loans in its allowance for loan losses. The Company received fees from the SBA of one percent to five percent of the principal amount of each loan originated under the PPP. Fees received from the SBA are recognized net of direct origination costs in
interest income over the life of the related loans. Recognition of fees related to PPP loans is dependent upon the timing of ultimate repayment or forgiveness. Aggregate fees from the SBA of $4.6 million, net of direct costs, will be recognized in interest income over the life of the loans, of which $630 thousand remains unrecognized as of December 31, 2021. In 2021 and 2020, the Company recognized $3.2 million and $813 thousand in net loan fees related to PPP loans in interest
income on loans in the Consolidated Statement of Income, respectively.
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NONACCRUALS, PAST DUES AND CHARGE-OFFS |
NONACCRUALS, PAST DUES AND CHARGE-OFFS
The accrual of interest on commercial loans (including construction loans and commercial loans secured and not secured by real estate) is generally
discontinued at the time the loan is 90 days past due unless the credit is well-secured and in the process of collection. Consumer loans not secured by real estate and consumer real estate secured loans (i.e., residential 1-4 family mortgages, second
mortgages and equity lines of credit) are generally placed on nonaccrual status when payments are 120 days past due. Past due status is based on the contractual terms of the loan agreement, and loans are considered past due when a payment of
principal and/or interest is due but not paid. Regular payments not received within the payment cycle are considered to be 30, 60, or 90 or more days past due accordingly. In all cases, loans are placed on nonaccrual status or charged off at an
earlier date if collection of principal or interest is considered doubtful.
All interest accrued but not collected for loans that are placed on nonaccrual status or charged off is reversed against interest income. The interest on
these loans is accounted for on the cash basis or cost recovery method, until qualifying for return to accrual status or charged off. Loans are generally returned to accrual status when all the principal and interest amounts contractually due are
brought current and future payments are reasonably assured, or when the borrower has resumed paying the full amount of the scheduled contractual interest and principal payments for at least six months.
Loans are generally fully charged off or partially charged down to the fair value of collateral securing the asset when:
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ALLOWANCE FOR LOAN LOSSES |
ALLOWANCE FOR LOAN LOSSES
The ALLL is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against
the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance.
The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the
loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation
is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.
The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired, such as a loan that
is considered a troubled debt restructuring (TDR) (discussed in detail below). These loans are excluded from pooled loss forecasts and a separate reserve is provided under the accounting guidance for loan impairment. All loans, including consumer
loans, whose terms have been modified in a TDR are also individually analyzed for estimated impairment. Impairment is measured on a loan-by-loan basis for construction loans and commercial loans (i.e., commercial mortgage loans on real estate and
commercial loans not secured by real estate) by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price, or the fair value of the collateral if the loan is collateral
dependent. For those loans that are classified as impaired, an allowance is established when the discounted value of expected future cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of
that loan.
A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled
payments of principal or interest when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled
principal and interest payments when due. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the
length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. Loans that experience insignificant payment delays and payment shortfalls generally
are not classified as impaired.
The general component covers loans that are not classified as impaired. Loans collectively evaluated for impairment are pooled, with a historical loss
rate, based on migration analysis, applied to each pool, segmented by risk grade or days past due, depending on the type of loan. Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied
to loan balances. Large groups of smaller balance homogeneous loans are collectively evaluated for impairment. Accordingly, the Company does not separately identify individual consumer and consumer loans secured by real estate (i.e., residential 1-4
family mortgages, second mortgages and equity lines of credit) for impairment disclosures, unless the terms of such loans have been modified in a TDR due to financial difficulties of the borrower.
Each portfolio segment has risk characteristics as follows:
Each segment of the portfolio is pooled by risk grade or by days past due. Loans not secured by real estate and made to individuals for household, family
and other personal expenditures are segmented into pools based on days past due, while all other loans, including loans to consumers that are secured by real estate, are segmented by risk grades. A historical loss percentage is then calculated by
migration analysis and applied to each pool. The migration analysis applied to all pools is able to track the risk grading and historical performance of individual loans throughout a number of periods set by management, which provides management with
information regarding trends (or migrations) in a particular loan segment. At December 31, 2021 and 2020 management used eight twelve-quarter migration periods.
Based on credit risk assessments and management’s analysis of qualitative factors, additional loss factors are applied to loan balances. These additional
qualitative factors include: economic conditions (including uncertainties associated with the COVID-19 pandemic), trends in growth, loan concentrations, changes in certain loans, changes in underwriting, changes in management and changes in the legal
and regulatory environment.
Acquired loans are recorded at their fair value at acquisition date without carryover of the acquiree’s previously established ALL, as credit discounts
are included in the determination of fair value. The fair value of the loans is determined using market participant assumptions in estimating the amount and timing of both principal and interest cash flows expected to be collected on the loans and
then applying a market-based discount rate to those cash flows. During evaluation upon acquisition, acquired loans are also classified as either purchased credit-impaired (PCI) or purchased performing.
PCI loans reflect credit quality deterioration since origination, as it is probable at acquisition that the Company will not be able to collect all
contractually required payments. These PCI loans are accounted for under ASC 310-30, Receivables – Loans and Debt Securities Acquired with Deteriorated Credit Quality. The PCI loans are segregated into pools
based on loan type and credit risk. Loan type is determined based on collateral type, purpose, and lien position. Credit risk characteristics include risk rating groups, nonaccrual status, and past due status. For valuation purposes, these pools are
further disaggregated by maturity, pricing characteristics, and re-payment structure. The difference between contractually required payments at acquisition and the cash flows expected to be collected at acquisition is referred to as the nonaccretable
difference and is not recorded. Any excess of cash flows expected at acquisition over the estimated fair value is referred to as the accretable yield and is recognized as interest income over the remaining life of the loan when there is a reasonable
expectation about the amount and timing of such cash flows.
On an annual basis, the estimate of cash flows expected to be collected on PCI loans is evaluated. Estimates of cash flows for PCI loans require
significant judgment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses resulting in an increase to the allowance for loan losses. Subsequent significant increases in cash flows may result in a
reversal of post-acquisition provision for loan losses or a transfer from nonaccretable difference to accretable yield that increases interest income over the remaining life of the loan, or pool(s) of loans. Disposals of loans, which may include sale
of loans to third parties, receipt of payments in full or in part from the borrower or foreclosure of the collateral, result in removal of the loan from the PCI loan portfolio at its carrying amount.
The Company accounts for purchased performing loans using the contractual cash flows method of recognizing discount accretion based on the acquired
loans’ contractual cash flows. Purchased performing loans are recorded at fair value, including a credit discount. The fair value discount is accreted as an adjustment to yield over the estimated lives of the loans. There is no allowance for loan
losses established at the acquisition date for purchased performing loans. A provision for loan losses may be required for any deterioration in these loans in future periods.
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TROUBLED DEBT RESTRUCTURINGS |
TROUBLED DEBT RESTRUCTURINGS
In situations where, for economic or legal reasons related to a borrower’s financial difficulties, management grants a concession for other than an
insignificant period of time to the borrower that would not otherwise be considered, the related loan is classified as a TDR. Management strives to identify borrowers in financial difficulty before their loans reach nonaccrual status and works with
them to grant appropriate concessions, if necessary, and modify their loans to more affordable terms. These modified terms could include reduction in the interest rate below current market rates for borrowers with similar risk profiles, payment
extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. In cases where borrowers are granted new terms that provide for a reduction of either interest or principal, management measures any impairment on the
restructuring as noted above for impaired loans.
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TRANSFERS OF FINANCIAL ASSETS |
TRANSFERS OF FINANCIAL ASSETS
Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to
be surrendered when (1) the assets have been isolated from the Company (i.e., put presumptively beyond the reach of the transferor and its creditors, even in bankruptcy or other receivership); (2) the transferee obtains the right (free of conditions
that constrain it from taking advantage of that right) to pledge or exchange the transferred assets and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity or
the ability to unilaterally cause the holder to return specific assets.
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OTHER REAL ESTATE OWNED (OREO) |
OTHER REAL ESTATE OWNED (OREO)
Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less cost to sell at the date of
foreclosure, establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell. Revenue and expenses from
operations and changes in the valuation allowance (direct write-downs) are included in gain on other real estate owned on the Consolidated Statements of Income.
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BANK-OWNED LIFE INSURANCE |
BANK-OWNED LIFE INSURANCE
The Company owns insurance on the lives of a certain group of key employees. The cash surrender value of these policies is included as an asset on the
consolidated balance sheets, and the increase in cash surrender value is recorded as noninterest income on the Consolidated Statements of Income. In the event of the death of an insured individual under these policies, the Company would receive a
death benefit payment. Any excess in the amount received over the recorded cash surrender value would be recorded as other operating income on the Consolidated Statements of Income.
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PREMISES AND EQUIPMENT |
PREMISES AND EQUIPMENT
Land is carried at cost. Buildings and equipment are stated at cost, less accumulated depreciation and amortization computed on the straight-line method
over the estimated useful lives of the assets. Buildings and equipment are depreciated over their estimated useful lives ranging from 3 to
39 years; leasehold improvements are amortized over the lives of the respective leases or the estimated useful life of the leasehold
improvement, whichever is less. Software is amortized over its estimated useful life ranging from 3 to 5 years.
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OFF-BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS |
OFF-BALANCE SHEET CREDIT RELATED FINANCIAL INSTRUMENTS
In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under commercial letters of credit
and lines of credit. Such financial instruments are recorded when they are funded.
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STOCK COMPENSATION PLANS |
STOCK COMPENSATION PLANS
Stock compensation accounting guidance (FASB ASC 718, “Compensation -- Stock Compensation”) requires that the compensation cost related to share-based
payment transactions be recognized in financial statements. That cost will be measured based on the grant date fair value of the equity or liability instruments issued. The stock compensation accounting guidance covers a wide range of share-based
compensation arrangements including stock options, restricted share plans, performance-based awards, share appreciation rights and employee share purchase plans.
The stock compensation accounting guidance requires that compensation cost for all stock awards be calculated and recognized over the employees’ service
period, generally defined as the vesting period. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. A Black Scholes model is used to estimate the fair value
of the stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards.
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REVENUE RECOGNITION |
REVENUE RECOGNITION: Revenue recognized from contracts with customers is accounted for under ASC 606 and is primarily included
in the Company’s noninterest income. Fiduciary and asset management fees are earned as the Company satisfies it performance obligation over time. Additional services are transactional-based and the revenue is recognized as incurred. Service
charges on deposit accounts consist account analysis fees, monthly service fees, and other deposit account related fees. Account analysis and monthly service fees, which relate primarily to monthly maintenance, are earned over the course of a month,
representing the period over which the Company satisfies the performance obligation. Other deposit account related fees are largely transactional based and therefore fees are recognized at the point in time when the Company has satisfied its
performance obligation. The Company earns other service charges, commissions and fees from its customers for transaction-based services. Such services include debit card, ATM, merchant services, investment services, and other service charges. In
each case, these service charges and fees are recognized in income at the time or within the same period that the Company’s performance obligation is satisfied. The Company earns interchange fees from debit cardholder transactions conducted through
various payment networks. Interchange fees from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services.
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INCOME TAXES |
INCOME TAXES
The Company accounts for income taxes in accordance with income tax accounting guidance (FASB ASC 740, “Income Taxes”). The Company adopted the
accounting guidance related to accounting for uncertainty in income taxes, which sets out a consistent framework to determine the appropriate level of tax reserves to maintain for uncertain tax positions.
Income tax accounting guidance results in two components of income tax expense: current and deferred. Current income tax expense reflects taxes to be
paid or refunded for the current period by applying the provisions of the enacted tax law to the taxable income or excess of deductions over revenues. The Company determines deferred income taxes using the liability or balance sheet method. Under
this method, the net deferred tax asset or liability is based on the tax effects of the difference between the book and tax basis of assets and liabilities, and enacted changes in tax rates and laws are recognized in the period in which they occur.
Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is
more-likely-than-not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more-likely-than-not means a likelihood of more than 50 percent; the terms examined and upon examination also include
resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent
likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts,
circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of both positive and negative evidence available, it is
more-likely-than-not that some portion or all of a deferred tax asset will not be realized.
The Company recognizes interest and penalties on income taxes as a component of income tax expense. No uncertain tax positions were recorded in 2021 or 2020.
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EARNINGS PER COMMON SHARE |
EARNINGS PER COMMON SHARE
Basic earnings per share represents income available to common stockholders divided by the weighted-average number of common shares outstanding during
the period. Diluted earnings per share reflects additional potential common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance.
Potential common shares that may be issued by the Company relate to shares to be issued as part of the employee stock purchase plan and are determined using the treasury stock method. Nonvested restricted stock shares are included in the calculation
of basic earnings per share due to their rights to voting and dividends.
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TRUST ASSETS AND INCOME |
TRUST ASSETS AND INCOME
Securities and other property held by Trust in a fiduciary or agency capacity are not assets of the Company and are not included in the accompanying
Consolidated Financial Statements.
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ADVERTISING EXPENSES |
ADVERTISING EXPENSES
Advertising expenses are expensed as incurred. Advertising expense for the years ended 2021 and 2020 was $217 thousand and $230 thousand, respectively.
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COMPREHENSIVE INCOME |
COMPREHENSIVE INCOME
Comprehensive income consists of net income and other comprehensive income, net of tax. Other comprehensive income, net of tax includes unrealized gains
and losses on securities available-for-sale which is also recognized a separate component of equity.
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FAIR VALUE OF FINANCIAL INSTRUMENTS |
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note 16. Fair
value estimates involve uncertainties and matters of significant judgment. Changes in assumptions or in market conditions could significantly affect the estimates.
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RECENT ACCOUNTING PRONOUNCEMENTS |
RECENT ACCOUNTING PRONOUNCEMENTS
In June 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-13, “Financial Instruments – Credit
Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” The amendments in this ASU, among other things, require the measurement of all expected credit losses for financial assets held at the reporting date based on historical
experience, current conditions, and reasonable and supportable forecasts. Financial institutions and other organizations will now use forward-looking information to better inform their credit loss estimates. Many of the loss estimation techniques
applied today will still be permitted, although the inputs to those techniques will change to reflect the full amount of expected credit losses. In addition, the ASU amends the accounting for credit losses on available-for-sale debt securities
and purchased financial assets with credit deterioration. The FASB has issued multiple updates to ASU No. 2016-13 as codified in Topic 326, including ASU No. 2019-04, ASU No. 2019-05, ASU No. 2019-10, ASU No. 2019-11, ASU No. 2020-02, and ASU No.
2020-03. These ASUs have provided for various minor technical corrections and improvements to the codification as well as other transition matters. The new standard will be effective for the Company beginning on January 1, 2023.
The amendments of ASC 326, upon adoption, will be applied on a modified retrospective basis, with the cumulative effect of adopting the new standard
being recorded as an adjustment to opening retained earnings in the period of adoption. The Company has established a committee to oversee the adoption of ASC 326. The Company has engaged a vendor to assist in modeling expected lifetime losses
under ASC 326, gathered historical loan loss data for purposes of evaluating appropriate portfolio segmentation and modeling methods under the standard, performed procedures to validate the historical loan loss data to ensure its suitability and
reliability for purposes of developing an estimate of expected credit losses under ASC 326, and is continuing to develop and refine an approach to estimating the allowance for credit losses. The adoption of ASC 326 will result in significant
changes to the Company’s consolidated financial statements, which may include changes in the level of the allowance for credit losses that will be considered adequate, a reduction in total equity and regulatory capital of the Bank, differences in
the timing of recognizing changes to the allowance for credit losses and expanded disclosures about the allowance for credit losses. The Company has not yet determined an estimate of the effect of these changes. The adoption of the standard will
also result in significant changes in the Company’s internal control over financial reporting related to the allowance for credit losses.
Other accounting standards that have been issued by the FASB or other standards-setting bodies are not currently expected to have a material effect on
the Company’s financial position, results of operations or cash flows.
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Securities Portfolio (Tables) |
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Securities Portfolio [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value, with Gross Unrealized Gains and Losses of Securities Available-for-Sale |
The amortized cost and fair value, with gross unrealized gains and losses, of securities available-for-sale were:
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Amortized Cost and Fair Value of Securities by Contractual Maturity |
The amortized cost and fair value of securities by contractual maturity are shown below.
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Net Realized Gains and (Losses) on Sale of Investments |
The following table provides information about securities sold in the years ended December 31:
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Available-for-Sale Securities, Continuous Unrealized Loss Position |
The following tables show the number of securities with unrealized losses, the gross unrealized losses and fair value of the Company’s investments with
unrealized losses that are deemed to be temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of the dates indicated:
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Loans and Allowance for Loan Losses (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans and Allowance for Loan Losses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Outstanding Loans By Segment Type |
The following is a summary of the balances in each class of the Company’s loan portfolio as of the dates indicated:
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Acquired Loans |
The outstanding principal balance and the carrying amount of total acquired loans included in the consolidated balance sheets are as follows:
The Company did not have any
outstanding principal balance or related carrying amount of purchased credit-impaired loans as of December 31, 2021 and 2020, respectively. The following table presents changes in the accretable yield on purchased credit impaired loans, for which the
Company applies FASB ASC 310-30:
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Credit Quality Information |
The following tables present credit quality exposures by internally assigned risk ratings as of the dates indicated:
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Past Due Loans | The following table includes an aging analysis of the recorded investment in past due loans as of the dates indicated. Also included in the table
below are loans that are 90 days or more past due as to interest and principal and still accruing interest, because they are well-secured and in the process of collection.
Age Analysis of Past Due Loans as of December 31, 2021
In the table above, the past due totals include small business and student loans with principal and interest amounts that are 97 - 100% guaranteed by the federal government. The past
due principal portion of these guaranteed loans totaled $1.4 million at December 31, 2021.
Age Analysis of Past Due Loans as of December 31, 2020
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Nonaccrual Loans |
The following table presents loans in nonaccrual status by class of loan as of the dates indicated:
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Interest Income to be Earned under the Original Terms |
The following table presents the interest income that the Company would have earned under the original terms of its nonaccrual loans and the actual interest recorded by the
Company on nonaccrual loans for the periods presented:
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Impaired Loans by Class |
The following table includes the recorded investment and unpaid principal balances (a portion of which may have been charged off) for impaired loans,
exclusive of purchased credit-impaired loans, with the associated allowance amount, if applicable, as of the dates presented. Also presented are the average recorded investments in the impaired loans and the related amount of interest recognized for
the periods presented. The average balances are calculated based on daily average balances.
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Allowance for Loan Losses by Segment |
The following table presents, by portfolio segment, the changes in the allowance for loan losses and the recorded investment in loans for the periods
presented. Allocation of a portion of the allowance to one category of loans does not preclude its availability to absorb losses in other categories.
ALLOWANCE FOR LOAN LOSSES AND RECORDED INVESTMENT IN LOANS
For the Year ended December 31, 2021
For the Year ended December 31, 2020
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Other Real Estate Owned (OREO) (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Real Estate Owned (OREO) [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of the Balance in Foreclosed Assets |
The Company holds certain parcels of real estate due to completed foreclosure proceedings on defaulted loans. An analysis of the balance in OREO is as
follows:
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Expenses Applicable to Foreclosed Assets |
Expenses applicable to OREO include the following:
(1) Included in other
operating income and other operating expense on the Consolidated Statements of Income.
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Premises and Equipment (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Premises and Equipment |
Premises and equipment consisted of the following at December 31:
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Leases (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about Leases |
The following tables present information about the Company’s leases:
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Lease Cost |
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Maturity of Operating Lease Liabilities |
A maturity analysis of operating lease liabilities and reconciliation of the undiscounted cash flows to the total of operating lease liabilities is as follows:
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Low-Income Housing Tax Credits (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Low-Income Housing Tax Credits [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Tax Credits and Other Tax Benefits Recognized Related to Investments |
The table below summarizes the tax credits and other tax benefits recognized by the Company and related to these investments, as of the periods
indicated:
* Computed using a 21% tax rate.
|
Deposits (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||
Maturities of Time Deposits |
At December 31, 2021 the scheduled maturities of time deposits (in thousands) are as follows:
|
Borrowings (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Borrowings [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term Borrowings |
The following table presents total short-term borrowings as of the dates indicated (dollars in thousands):
|
Share-Based Compensation (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-Based Compensation [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Restricted Stock Activity |
Restricted stock activity for the year ended December 31, 2021 is summarized below.
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Stockholders' Equity and Earnings per Common Share (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stockholders' Equity and Earnings Per Common Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amounts Reclassified Out of Accumulated Other Comprehensive Loss, by Category |
The following table presents information on amounts reclassified out of accumulated other comprehensive loss, by category, during the periods indicated:
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Changes in Accumulated Other Comprehensive Loss, by Category |
The following table presents the changes in accumulated other comprehensive loss, by category, net of tax, for the periods indicated:
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Component of Accumulated Other Comprehensive Income on Pre-Tax and After-Tax |
The following table presents the change in each component of accumulated other comprehensive income, net of tax on a pre-tax and after-tax basis for the periods indicated.
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Computation of Earnings Per Share |
The following is a reconciliation of the denominators of the basic and diluted EPS computations for the years ended December 31, 2021 and 2020:
|
Related Party Transactions (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
Related Party Transactions [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||
Annual Activity |
Annual activity consisted of the following:
|
Income Taxes (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Taxes [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Income Tax Expense |
The components of income tax expense for the current and prior year-ends are as follows:
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Reconciliation of Federal Income Tax Expense |
A reconciliation of the expected federal income tax expense on income before income taxes with the reported income tax expense for the same periods
follows:
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Components of Net Deferred Tax Asset |
The components of the net deferred tax asset, included in other assets, are as follows:
|
Commitments and Contingencies (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Instruments whose Contract Amounts Represent Credit Risk |
The following financial instruments whose contract amounts represent credit risk were outstanding at:
|
Fair Value Measurements (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Measurements [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets Measured at Fair Value on Recurring Basis |
The following tables present the balances of certain assets measured at fair value on a recurring basis as of the dates indicated:
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Assets Measured at Fair Value on Nonrecurring Basis |
The following table presents the assets carried on the consolidated balance sheets for which a nonrecurring change in fair value has been recorded.
Assets are shown by class of loan and by level in the fair value hierarchy, as of the dates indicated. Certain impaired loans are valued by the present value of the loan’s expected future cash flows, discounted at the loan’s effective interest rate.
These loans are not carried on the consolidated balance sheets at fair value and, as such, are not included in the table below.
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Fair Value Inputs, Assets, Quantitative Information |
The Company did not have any Level 3 Fair Value Measurements at December 31, 2020. The following table displays quantitative information about
Level 3 Fair Value Measurements as of December 31, 2021:
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Estimated Fair Values and Related Carrying or Notional Amounts of Financial Instruments |
The estimated fair values, and related carrying or notional amounts, of the Company’s financial instruments as of the dates indicated are as
follows:
|
Regulatory Matters (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Regulatory Matters [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Actual and Required Capital Amounts and Ratios | The Bank’s actual capital amounts and ratios as of December 31, 2021 and 2020 are presented in the table below.
|
Segment Reporting (Tables) |
12 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Reporting [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reconciliation of Assets and Revenues from Segment to Consolidated |
Information about reportable segments, and reconciliation of such information to the Consolidated Financial Statements as of and for the years ended
December 31 follows:
|
Condensed Financial Statements of Parent Company (Tables) |
12 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Condensed Financial Statements of Parent Company [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheets |
Financial information pertaining to Old Point Financial Corporation (parent company only) is as follows:
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Statements of Income |
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Statements of Cash Flows |
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Significant Accounting Policies, The Company (Details) |
Dec. 31, 2021
Subsidiary
Branch
|
---|---|
THE COMPANY [Abstract] | |
Number of subsidiaries | Subsidiary | 2 |
Number of branch offices | 16 |
Number of closed branches | 2 |
Significant Accounting Policies, Significant Group Concentrations of Credit Risk (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK [Abstract] | ||
Total loans, net of deferred fees | $ 843,526 | $ 836,300 |
Commercial Real Estate [Member] | Lender Concentration Risk [Member] | Commercial Real Estate and Other Customers [Member] | ||
SIGNIFICANT GROUP CONCENTRATIONS OF CREDIT RISK [Abstract] | ||
Total loans, net of deferred fees | $ 460,100 | $ 383,400 |
Percentage of concentration risk | 54.50% | 45.80% |
Significant Accounting Policies, Interest-bearing Deposits in Banks (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
INTEREST-BEARING DEPOSITS IN BANKS [Abstract] | |
Maturity period of interest bearing deposits | 1 year |
Significant Accounting Policies, Paycheck Protection Program (Details) - PPP Loans [Member] - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
PAYCHECK PROTECTION PROGRAM [Abstract] | ||
Aggregate fees from SBA, net of direct cost | $ 4,600 | |
Unrecognized fee amount | 630 | |
Recognized fee amount | $ 3,200 | $ 813 |
Minimum [Member] | ||
PAYCHECK PROTECTION PROGRAM [Abstract] | ||
Percentage of fee received from Small Business Administration (SBA) | 1.00% | |
Maximum [Member] | ||
PAYCHECK PROTECTION PROGRAM [Abstract] | ||
Percentage of fee received from Small Business Administration (SBA) | 5.00% |
Significant Accounting Policies, Allowance for Loan Losses (Details) |
Dec. 31, 2021
qtr
Period
|
Dec. 31, 2020
qtr
Period
|
---|---|---|
ALLOWANCE FOR LOAN LOSSES [Abstract] | ||
Number of migration periods | Period | 8 | 8 |
Number of quarters remains on migration period | qtr | 12 | 12 |
Significant Accounting Policies, Premises and Equipment (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021 | |
Buildings and Equipment [Member] | Minimum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 3 years |
Buildings and Equipment [Member] | Maximum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 39 years |
Software [Member] | Minimum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 3 years |
Software [Member] | Maximum [Member] | |
PREMISES AND EQUIPMENT [Abstract] | |
Estimated useful lives | 5 years |
Significant Accounting Policies, Income Taxes (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
INCOME TAXES [Abstract] | ||
Uncertain tax positions | $ 0 | $ 0 |
Significant Accounting Policies, Advertising Expenses (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
ADVERTISING EXPENSE [Abstract] | ||
Advertising expense | $ 217 | $ 230 |
Restrictions on Cash and Amounts Due from Banks (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Restrictions on Cash and Amounts Due from Banks [Abstract] | ||
Required reserve balances | $ 0.0 | $ 0.0 |
Amount of deposits at financial institutions in excess of cash FDIC insured amount | $ 3.9 | $ 9.8 |
Securities Portfolio (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Security
|
Dec. 31, 2020
USD ($)
Security
|
|
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | $ 232,200 | $ 181,259 |
Gross unrealized gains | 3,632 | 5,493 |
Gross unrealized (losses) | (1,511) | (343) |
Fair value | $ 234,321 | 186,409 |
Number of securities exceeding ten percent of stockholders' equity | Security | 0 | |
Impairment charges recorded through income on securities | $ 0 | 0 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Due in one year or less | 200 | |
Due after one year through five years | 13,045 | |
Due after five through ten years | 69,739 | |
Due after ten years | 146,803 | |
Other securities, restricted | 2,413 | |
Total securities | 232,200 | 181,259 |
Available-for-Sale, Fair Value [Abstract] | ||
Due in one year or less | 195 | |
Due after one year through five years | 13,341 | |
Due after five through ten years | 70,559 | |
Due after ten years | 147,813 | |
Other securities, restricted | 2,413 | |
Total securities | 234,321 | 186,409 |
Securities Available-for-sale [Abstract] | ||
Realized gains on sales of securities | 0 | 265 |
Realized losses on sales of securities | 0 | (1) |
Net realized gain | 0 | 264 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 1,281 | 148 |
More Than Twelve Months | 230 | 195 |
Total | 1,511 | 343 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 100,473 | 23,078 |
More Than Twelve Months | 11,492 | 18,476 |
Total | 111,965 | 41,554 |
Collateral Pledged [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Securities pledged as collateral | 59,300 | 69,400 |
U.S. Treasury Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 15,052 | 6,980 |
Gross unrealized gains | 0 | 63 |
Gross unrealized (losses) | (148) | 0 |
Fair value | 14,904 | 7,043 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 15,052 | 6,980 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 14,904 | 7,043 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 148 | |
More Than Twelve Months | 0 | |
Total | 148 | |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 14,904 | |
More Than Twelve Months | 0 | |
Total | 14,904 | |
Obligations of US Government Agencies [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 38,651 | 36,858 |
Gross unrealized gains | 75 | 35 |
Gross unrealized (losses) | (168) | (197) |
Fair value | 38,558 | 36,696 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 38,651 | 36,858 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 38,558 | 36,696 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 131 | 8 |
More Than Twelve Months | 37 | 189 |
Total | 168 | 197 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 19,181 | 2,810 |
More Than Twelve Months | 5,042 | 17,191 |
Total | 24,223 | 20,001 |
Obligations of State and Political Subdivisions [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 64,132 | 43,517 |
Gross unrealized gains | 1,948 | 2,478 |
Gross unrealized (losses) | (277) | 0 |
Fair value | 65,803 | 45,995 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 64,132 | 43,517 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 65,803 | 45,995 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 277 | |
More Than Twelve Months | 0 | |
Total | 277 | |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 20,673 | |
More Than Twelve Months | 0 | |
Total | 20,673 | |
Mortgage-Backed Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 88,511 | 70,866 |
Gross unrealized gains | 1,348 | 2,759 |
Gross unrealized (losses) | (801) | (124) |
Fair value | 89,058 | 73,501 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 88,511 | 70,866 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 89,058 | 73,501 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 608 | 118 |
More Than Twelve Months | 193 | 6 |
Total | 801 | 124 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 35,882 | 14,291 |
More Than Twelve Months | 6,450 | 1,285 |
Total | 42,332 | 15,576 |
Money Market Investments [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 2,413 | 4,743 |
Gross unrealized gains | 0 | 0 |
Gross unrealized (losses) | 0 | 0 |
Fair value | 2,413 | 4,743 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 2,413 | 4,743 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 2,413 | 4,743 |
Corporate Bonds and Other Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Amortized cost | 23,441 | 18,295 |
Gross unrealized gains | 261 | 158 |
Gross unrealized (losses) | (117) | (22) |
Fair value | 23,585 | 18,431 |
Available-for-Sale, Amortized Cost [Abstract] | ||
Total securities | 23,441 | 18,295 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | 23,585 | 18,431 |
Securities Available-for-Sale, Gross Unrealized Losses [Abstract] | ||
Less Than Twelve Months | 117 | 22 |
More Than Twelve Months | 0 | 0 |
Total | 117 | 22 |
Securities Available-for-Sale, Fair Value [Abstract] | ||
Less Than Twelve Months | 9,833 | 5,977 |
More Than Twelve Months | 0 | 0 |
Total | 9,833 | 5,977 |
Government Agency Obligations and Mortgage-backed Securities [Member] | ||
Debt Securities, Available-for-sale [Abstract] | ||
Gross unrealized (losses) | (230) | (195) |
Fair value | 11,500 | 18,500 |
Available-for-Sale, Fair Value [Abstract] | ||
Total securities | $ 11,500 | $ 18,500 |
Securities Available-for-Sale, Number of Securities [Abstract] | ||
Number of Securities | Security | 9 | 12 |
Loans and Allowance for Loan Losses, Outstanding Loans By Segment Type (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||||
---|---|---|---|---|---|---|---|---|
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | $ 843,526 | $ 836,300 | ||||||
Less: Allowance for loan losses | 9,865 | 9,541 | ||||||
Loans, net of allowance and deferred fees | [1] | 833,661 | 826,759 | |||||
Overdrawn accounts, excluding internal use accounts | 304 | 271 | ||||||
Net deferred loan costs | 1,300 | 2,100 | ||||||
Mortgage Loans on Real Estate [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 647,411 | 568,119 | ||||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 130,776 | 122,800 | ||||||
Mortgage Loans on Real Estate [Member] | Commercial Real Estate [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 382,603 | 316,851 | ||||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 198,413 | 153,955 | ||||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 184,190 | 162,896 | ||||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 19,050 | 22,812 | ||||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 58,440 | 43,732 | ||||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 7,877 | 11,178 | ||||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 48,665 | 50,746 | ||||||
Commercial [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 68,690 | 141,746 | ||||||
Commercial [Member] | Commercial and Industrial Loans [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 68,690 | 141,746 | ||||||
Consumer [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | [2] | 118,441 | 118,368 | |||||
Consumer [Member] | Consumer Automobile Loans [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 85,023 | 80,390 | ||||||
Consumer [Member] | Other Consumer Loans [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | 33,418 | 37,978 | ||||||
Other [Member] | ||||||||
Allowance for Doubtful Accounts Receivable [Roll Forward] | ||||||||
Total loans, net of deferred fees | [3] | $ 8,984 | $ 8,067 | |||||
|
Loans and Allowance for Loan Losses, Acquired Loans (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Acquired Loans Included in Consolidated Balance Sheet [Abstract] | ||
Outstanding principal balance | $ 5,087 | $ 8,671 |
Carrying amount | 5,087 | 8,602 |
Acquired Loans Accounted for Under FASB ASC 310-30 [Abstract] | ||
Outstanding principal balance | 0 | 0 |
Carrying amount | 0 | 0 |
Acquired Loans Accounted for under FASB ASC 310-30 Changes in Accretable Yield [Roll Forward] | ||
Balance at beginning of period | 0 | 72 |
Accretion | 0 | (156) |
Other changes, net | 0 | 84 |
Balance at end of period | $ 0 | $ 0 |
Loans and Allowance for Loan Losses, Credit Quality (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
||||
---|---|---|---|---|---|---|
Receivables [Abstract] | ||||||
Gross loans receivable | $ 843,526 | $ 836,300 | ||||
Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 837,670 | 828,410 | ||||
OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 1,440 | 4,563 | ||||
Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 4,416 | 3,327 | ||||
Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 647,411 | 568,119 | ||||
Mortgage Loans on Real Estate [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 642,005 | 560,977 | ||||
Mortgage Loans on Real Estate [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 1,440 | 4,208 | ||||
Mortgage Loans on Real Estate [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 3,966 | 2,934 | ||||
Mortgage Loans on Real Estate [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 130,776 | 122,800 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 130,584 | 122,621 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 192 | 179 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial Real Estate [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 382,603 | 316,851 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 198,413 | 153,955 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 195,512 | 148,738 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 788 | 2,462 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 2,113 | 2,755 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 184,190 | 162,896 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 183,093 | 162,148 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 434 | 748 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 663 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 19,050 | 22,812 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 19,050 | 22,812 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 58,440 | 43,732 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 57,224 | 42,734 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 218 | 998 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 998 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 7,877 | 11,178 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 7,877 | 11,178 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 48,665 | 50,746 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 48,665 | 50,746 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Commercial [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 68,690 | 141,746 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 68,690 | 141,746 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 68,261 | 141,391 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 355 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 429 | 0 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Consumer [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | [1] | 118,441 | 118,368 | |||
Consumer [Member] | Consumer Automobile Loans [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 85,023 | 80,390 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 85,002 | 79,997 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 21 | 393 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Consumer [Member] | Other Consumer Loans [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 33,418 | 37,978 | ||||
Consumer [Member] | Other Consumer Loans [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 33,418 | 37,978 | ||||
Consumer [Member] | Other Consumer Loans [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Consumer [Member] | Other Consumer Loans [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Consumer [Member] | Other Consumer Loans [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Other [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | [2] | 8,984 | 8,067 | |||
Other [Member] | Pass [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 8,984 | 8,067 | ||||
Other [Member] | OAEM [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Other [Member] | Substandard [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | 0 | 0 | ||||
Other [Member] | Doubtful [Member] | ||||||
Receivables [Abstract] | ||||||
Gross loans receivable | $ 0 | $ 0 | ||||
|
Loans and Allowance for Loan Losses, Past Due (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||
---|---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||
Loans, Aging [Abstract] | ||||||
Total Loans | $ 843,526 | $ 836,300 | ||||
Nonaccrual | [1] | 478 | 1,214 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 478 | 1,214 | |||
Interest income that would have been recorded under original loan terms [Abstract] | ||||||
Interest income that would have been recorded under original loan terms | 11 | 45 | ||||
Actual interest income recorded for the period | 2 | 34 | ||||
Reduction in interest income on non accrual loans | 9 | 11 | ||||
30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 2,361 | 3,575 | ||||
60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 560 | 1,000 | ||||
90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 1,025 | 744 | ||||
Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 839,102 | 829,767 | |||
Commercial and Industrial Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Nonaccrual | 174 | 0 | ||||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | 174 | 0 | ||||
Guaranteed Student Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | $ 1,400 | $ 1,200 | ||||
Guaranteed Student Loans [Member] | Minimum [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Percentage of student loans guaranteed by federal government | 97.00% | 97.00% | ||||
Guaranteed Student Loans [Member] | Maximum [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Percentage of student loans guaranteed by federal government | 100.00% | 98.00% | ||||
Guaranteed Student Loans [Member] | 90 or More Days Past Due [Member] | Minimum [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Percentage of student loans guaranteed by federal government | 97.00% | 97.00% | ||||
Guaranteed Student Loans [Member] | 90 or More Days Past Due [Member] | Maximum [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Percentage of student loans guaranteed by federal government | 100.00% | 98.00% | ||||
Mortgage Loans on Real Estate [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | $ 647,411 | $ 568,119 | ||||
Nonaccrual | [1] | 304 | 1,214 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 304 | 1,214 | |||
Mortgage Loans on Real Estate [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 195 | 519 | ||||
Mortgage Loans on Real Estate [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 252 | ||||
Mortgage Loans on Real Estate [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 646,912 | 566,134 | |||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 130,776 | 122,800 | ||||
Nonaccrual | [1] | 191 | 311 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 191 | 311 | |||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 120 | 478 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 164 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 130,465 | 121,847 | |||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 198,413 | 153,955 | ||||
Nonaccrual | [1] | 0 | 903 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 903 | |||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Owner Occupied [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 198,413 | 153,052 | |||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 184,190 | 162,896 | ||||
Nonaccrual | [1] | 113 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 113 | 0 | |||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Commercial - Non-Owner Occupied [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 184,077 | 162,896 | |||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 19,050 | 22,812 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Multifamily [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 19,050 | 22,812 | |||
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 58,440 | 43,732 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Mortgage Loans on Real Estate [Member] | Construction [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 88 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Construction [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 58,440 | 43,644 | |||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 7,877 | 11,178 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 24 | 41 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 7,853 | 11,137 | |||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 48,665 | 50,746 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 51 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Mortgage Loans on Real Estate [Member] | Equity Lines of Credit [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 48,614 | 50,746 | |||
Commercial [Member] | Commercial and Industrial Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 68,690 | 141,746 | ||||
Nonaccrual | [1] | 174 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 174 | 0 | |||
Commercial [Member] | Commercial and Industrial Loans [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 37 | 753 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 0 | 0 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 169 | 0 | ||||
Commercial [Member] | Commercial and Industrial Loans [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 68,310 | 140,993 | |||
Consumer [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Nonaccrual | 0 | 0 | ||||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | 0 | 0 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 85,023 | 80,390 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Consumer [Member] | Consumer Automobile Loans [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 814 | 1,159 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 118 | 190 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 296 | 196 | ||||
Consumer [Member] | Consumer Automobile Loans [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 83,795 | 78,845 | |||
Consumer [Member] | Other Consumer Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 33,418 | 37,978 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Consumer [Member] | Other Consumer Loans [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 1,284 | 1,120 | ||||
Consumer [Member] | Other Consumer Loans [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 439 | 555 | ||||
Consumer [Member] | Other Consumer Loans [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 550 | 548 | ||||
Consumer [Member] | Other Consumer Loans [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | 31,145 | 35,755 | |||
Other [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 8,984 | 8,067 | ||||
Nonaccrual | [1] | 0 | 0 | |||
Loans in nonaccrual status by class of loan [Abstract] | ||||||
Loans in nonaccrual status | [1] | 0 | 0 | |||
Other [Member] | 30 to 59 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 31 | 24 | ||||
Other [Member] | 60 to 89 Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 3 | 3 | ||||
Other [Member] | 90 or More Days Past Due [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | 10 | 0 | ||||
Other [Member] | Current Loans [Member] | ||||||
Loans, Aging [Abstract] | ||||||
Total Loans | [2] | $ 8,940 | $ 8,040 | |||
|
Loans and Allowance for Loan Losses, Troubled Debt Restructuring (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Contract
|
Dec. 31, 2020
USD ($)
Contract
Modification
|
|
Receivables [Abstract] | ||
Number of Modifications | Contract | 0 | 3 |
Number of modifications sold | Modification | 2 | |
Outstanding commitments on TDR's | $ 0 | $ 0 |
Defaulting TDR's within twelve months of restructuring | 0 | 0 |
Residential 1-4 Family [Member] | ||
Receivables [Abstract] | ||
Loans in process for foreclosure | 0 | 0 |
COVID-19 [Member] | ||
COVID-19 [Abstract] | ||
Loan modifications | $ 0 | $ 7,400 |
Loans and Allowance for Loan Losses, Impaired Loans (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Receivables [Abstract] | ||
Unpaid Principal Balance | $ 1,367 | $ 4,200 |
Recorded Investment, Without Valuation Allowance | 289 | 1,692 |
Recorded Investment, With Valuation Allowance | 1,012 | 424 |
Associated Allowance | 128 | 11 |
Average Recorded Investment | 1,324 | 3,257 |
Interest Income Recognized | 34 | 67 |
Mortgage Loans on Real Estate [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 1,170 | 4,180 |
Recorded Investment, Without Valuation Allowance | 282 | 1,672 |
Recorded Investment, With Valuation Allowance | 838 | 424 |
Associated Allowance | 41 | 11 |
Average Recorded Investment | 1,135 | 3,235 |
Interest Income Recognized | 17 | 66 |
Mortgage Loans on Real Estate [Member] | Residential 1-4 Family [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 353 | 474 |
Recorded Investment, Without Valuation Allowance | 25 | 366 |
Recorded Investment, With Valuation Allowance | 300 | 87 |
Associated Allowance | 30 | 1 |
Average Recorded Investment | 328 | 458 |
Interest Income Recognized | 7 | 10 |
Mortgage Loans on Real Estate [Member] | Commercial [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 610 | 3,490 |
Recorded Investment, Without Valuation Allowance | 178 | 1,306 |
Recorded Investment, With Valuation Allowance | 413 | 121 |
Associated Allowance | 8 | 1 |
Average Recorded Investment | 601 | 2,559 |
Interest Income Recognized | 1 | 46 |
Mortgage Loans on Real Estate [Member] | Construction [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 80 | 83 |
Recorded Investment, Without Valuation Allowance | 79 | 0 |
Recorded Investment, With Valuation Allowance | 0 | 83 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 80 | 84 |
Interest Income Recognized | 4 | 5 |
Mortgage Loans on Real Estate [Member] | Second Mortgages [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 127 | 133 |
Recorded Investment, Without Valuation Allowance | 0 | 0 |
Recorded Investment, With Valuation Allowance | 125 | 133 |
Associated Allowance | 3 | 9 |
Average Recorded Investment | 126 | 134 |
Interest Income Recognized | 5 | 5 |
Commercial [Member] | Commercial and Industrial Loans [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 188 | 6 |
Recorded Investment, Without Valuation Allowance | 0 | 6 |
Recorded Investment, With Valuation Allowance | 174 | 0 |
Associated Allowance | 87 | 0 |
Average Recorded Investment | 181 | 7 |
Interest Income Recognized | 17 | 0 |
Consumer [Member] | Other Consumer Loans [Member] | ||
Receivables [Abstract] | ||
Unpaid Principal Balance | 9 | 14 |
Recorded Investment, Without Valuation Allowance | 7 | 14 |
Recorded Investment, With Valuation Allowance | 0 | 0 |
Associated Allowance | 0 | 0 |
Average Recorded Investment | 8 | 15 |
Interest Income Recognized | $ 0 | $ 1 |
Loans and Allowance for Loan Losses, Activity In Period (Details) - USD ($) $ in Thousands |
12 Months Ended | |||||||
---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | $ 9,541 | $ 9,660 | ||||||
Charge-offs | (1,119) | (2,005) | ||||||
Recoveries | 649 | 886 | ||||||
Provision for loan losses | 794 | 1,000 | ||||||
Ending balance | 9,865 | 9,541 | ||||||
Individually evaluated for impairment | 128 | 11 | ||||||
Collectively evaluated for impairment | 9,737 | 9,530 | ||||||
Ending balance | 9,865 | 9,541 | ||||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | 1,301 | 2,116 | ||||||
Collectively evaluated for impairment | 842,225 | 834,184 | ||||||
Ending balance | 843,526 | 836,300 | ||||||
Commercial and Industrial [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | 650 | 1,244 | ||||||
Charge-offs | (27) | (25) | ||||||
Recoveries | 41 | 47 | ||||||
Provision for loan losses | 19 | (616) | ||||||
Ending balance | 683 | 650 | ||||||
Individually evaluated for impairment | 87 | 0 | ||||||
Collectively evaluated for impairment | 596 | 650 | ||||||
Ending balance | 683 | 650 | ||||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | 174 | 6 | ||||||
Collectively evaluated for impairment | 68,516 | 141,740 | ||||||
Ending balance | 68,690 | 141,746 | ||||||
Real Estate [Member] | ||||||||
Loans Balances [Abstract] | ||||||||
Ending balance | 647,411 | 568,119 | ||||||
Real Estate [Member] | Construction [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | 339 | 258 | ||||||
Charge-offs | 0 | 0 | ||||||
Recoveries | 0 | 10 | ||||||
Provision for loan losses | 120 | 71 | ||||||
Ending balance | 459 | 339 | ||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 459 | 339 | ||||||
Ending balance | 459 | 339 | ||||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | 79 | 83 | ||||||
Collectively evaluated for impairment | 58,361 | 43,649 | ||||||
Ending balance | 58,440 | 43,732 | ||||||
Real Estate [Member] | Mortgage [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | [1] | 2,560 | 2,505 | |||||
Charge-offs | [1] | (14) | (149) | |||||
Recoveries | [1] | 76 | 69 | |||||
Provision for loan losses | [1] | (232) | 135 | |||||
Ending balance | [1] | 2,390 | 2,560 | |||||
Individually evaluated for impairment | [1] | 33 | 10 | |||||
Collectively evaluated for impairment | [1] | 2,357 | 2,550 | |||||
Ending balance | [1] | 2,390 | 2,560 | |||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | [1] | 450 | 586 | |||||
Collectively evaluated for impairment | [1] | 205,918 | 206,950 | |||||
Ending balance | [1] | 206,368 | 207,536 | |||||
Real Estate [Member] | Commercial [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | 4,434 | 3,663 | ||||||
Charge-offs | 0 | (654) | ||||||
Recoveries | 44 | 317 | ||||||
Provision for loan losses | 309 | 1,108 | ||||||
Ending balance | 4,787 | 4,434 | ||||||
Individually evaluated for impairment | 8 | 1 | ||||||
Collectively evaluated for impairment | 4,779 | 4,433 | ||||||
Ending balance | 4,787 | 4,434 | ||||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | 591 | 1,427 | ||||||
Collectively evaluated for impairment | 382,012 | 315,424 | ||||||
Ending balance | 382,603 | 316,851 | ||||||
Consumer [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | [2] | 1,302 | 1,694 | |||||
Charge-offs | [2] | (800) | (822) | |||||
Recoveries | [2] | 390 | 377 | |||||
Provision for loan losses | [2] | 470 | 53 | |||||
Ending balance | [2] | 1,362 | 1,302 | |||||
Individually evaluated for impairment | [2] | 0 | 0 | |||||
Collectively evaluated for impairment | [2] | 1,362 | 1,302 | |||||
Ending balance | [2] | 1,362 | 1,302 | |||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | [2] | 7 | 14 | |||||
Collectively evaluated for impairment | [2] | 118,434 | 118,354 | |||||
Ending balance | [2] | 118,441 | 118,368 | |||||
Other [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | 123 | 296 | ||||||
Charge-offs | (278) | (355) | ||||||
Recoveries | 98 | 66 | ||||||
Provision for loan losses | 241 | 116 | ||||||
Ending balance | 184 | 123 | ||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 184 | 123 | ||||||
Ending balance | 184 | 123 | ||||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 8,984 | 8,067 | ||||||
Ending balance | [3] | 8,984 | 8,067 | |||||
Unallocated [Member] | ||||||||
Allowance for loan losses by segment [Roll Forward] | ||||||||
Beginning Balance | 133 | 0 | ||||||
Charge-offs | 0 | 0 | ||||||
Recoveries | 0 | 0 | ||||||
Provision for loan losses | (133) | 133 | ||||||
Ending balance | 0 | 133 | ||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 0 | 133 | ||||||
Ending balance | 0 | 133 | ||||||
Loans Balances [Abstract] | ||||||||
Individually evaluated for impairment | 0 | 0 | ||||||
Collectively evaluated for impairment | 0 | 0 | ||||||
Ending balance | $ 0 | $ 0 | ||||||
|
Other Real Estate Owned (OREO) (Details) - USD ($) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|||
Analysis of balance in OREO [Roll Forward] | ||||
Balance at beginning of year | $ 0 | $ 0 | ||
Transfers to OREO due to foreclosure | 0 | 254 | ||
Properties sold | 0 | (254) | ||
Balance at end of year | 0 | 0 | ||
Expenses applicable to OREOs [Abstract] | ||||
Net gain on sales of real estate | 0 | 62 | ||
Operating expenses, net of income | [1] | 0 | (20) | |
Total Income | $ 0 | $ 42 | ||
|
Premises and Equipment (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | $ 66,825 | $ 67,580 |
Less accumulated depreciation and amortization | 34,691 | 33,967 |
Balance at end of year | 32,134 | 33,613 |
Depreciation expense | 2,091 | 2,145 |
Land [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 7,270 | 7,709 |
Buildings [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 36,418 | 37,530 |
Construction in Progress [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 279 | 239 |
Leasehold Improvements [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | 867 | 867 |
Furniture, Fixtures and Equipment [Member] | ||
Premises and equipment consisted of [Abstract] | ||
Premises and equipment, gross | $ 21,991 | $ 21,235 |
Leases, Adoption ASU No. 2016-02 (Details) |
12 Months Ended |
---|---|
Dec. 31, 2021
Lease
| |
Assets and Liabilities, Lessee [Abstract] | |
Number of new leases | 0 |
Number of leases extended | 0 |
Leases, Long-term Lease Agreements Calssified as Operating Leases (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Information about Leases [Abstract] | ||
Lease liabilities | $ 1,041 | |
Operating Lease, Liability, Statement of Financial Position [Extensible List] | Other Liabilities | |
Right-of-use asset | $ 1,017 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | |
Weighted average remaining lease term | 3 years 7 months 20 days | |
Weighted average discount rate | 1.73% | |
Lease cost [Abstract] | ||
Operating lease cost | $ 347 | $ 380 |
Total lease cost | 347 | 380 |
Cash paid for amounts included in the measurement of lease liabilities | 351 | 377 |
Lease payments due [Abstract] | ||
Twelve months ending December 31, 2022 | 339 | |
Twelve months ending December 31, 2023 | 248 | |
Twelve months ending December 31, 2024 | 240 | |
Twelve months ending December 31, 2025 | 193 | |
Thereafter | 70 | |
Total undiscounted cash flows | 1,090 | |
Discount | (49) | |
Lease liabilities | 1,041 | |
Rental expense of premises and equipment | $ 470 | $ 415 |
Low-Income Housing Tax Credits (Details) $ in Thousands |
12 Months Ended | |||
---|---|---|---|---|
Dec. 31, 2021
USD ($)
Fund
|
Dec. 31, 2020
USD ($)
Fund
|
|||
Low-Income Housing Tax Credits [Abstract] | ||||
Number of housing equity funds | Fund | 4 | 4 | ||
Low-income housing investment | $ 1,900 | $ 2,300 | ||
Additional committed capital calls expected | 0 | 18 | ||
Amortization expense | 410 | 688 | ||
Tax credits and other benefits [Abstract] | ||||
Amortization of operating losses | 410 | 688 | ||
Tax benefit of operating losses | [1] | 86 | 144 | |
Tax credits | 361 | 419 | ||
Total tax benefit | $ 447 | $ 563 | ||
Effective income tax rate | 21.00% | |||
|
Deposits (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Customer
|
Dec. 31, 2020
USD ($)
|
|
Deposits [Abstract] | ||
Time deposits threshold | $ 250 | |
Aggregate amount of time deposits in denominations of $250 thousand or more | $ 39,900 | $ 45,400 |
Number of single customer relationships that exceeded deposit limit | Customer | 0 | |
Percentage of total deposits | 5.00% | |
Maturities of time deposits [Abstract] | ||
2022 | $ 99,749 | |
2023 | 39,040 | |
2024 | 15,095 | |
2025 | 7,680 | |
2026 | 7,554 | |
Balance at end of year | $ 169,118 | $ 193,698 |
Borrowings (Details) - USD ($) $ in Thousands |
12 Months Ended | ||
---|---|---|---|
Jul. 14, 2021 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Borrowings and FHLB Advances [Abstract] | |||
Available federal funds lines | $ 115,000 | $ 100,000 | |
Available credit with FHLB | 391,300 | 374,700 | |
Short-Term Borrowings [Abstract] | |||
Overnight repurchase agreements | 4,536 | 6,619 | |
Total short-term borrowings | 4,536 | 6,619 | |
Maximum month-end outstanding balance | 12,239 | 9,080 | |
Average outstanding balance during the period | $ 7,293 | $ 21,092 | |
Average interest rate (year-to-date) | 0.10% | 0.19% | |
Average interest rate at end of period | 0.10% | 0.10% | |
Long-Term Borrowings [Abstract] | |||
Federal Reserve Bank borrowings | $ 480 | $ 28,550 | |
Maximum [Member] | |||
Borrowings and FHLB Advances [Abstract] | |||
Overnight repurchase agreements maturity period | 4 days | ||
Minimum [Member] | |||
Borrowings and FHLB Advances [Abstract] | |||
Overnight repurchase agreements maturity period | 1 day | ||
Paycheck Protection Program Liquidity Facility [Member] | |||
Long-Term Borrowings [Abstract] | |||
Federal Reserve Bank borrowings | $ 480 | $ 28,600 | |
Loan maturity date | Apr. 30, 2022 | ||
Interest rate | 0.35% | ||
Citizens Acquisition [Member] | |||
Long-Term Borrowings [Abstract] | |||
Loan maturity date | Apr. 01, 2023 | ||
Long term borrowings, net of issuance costs | $ 1,400 | ||
Interest rate | 2.61% | ||
The Notes [Member] | Subordinated Debt [Member] | |||
Long-Term Borrowings [Abstract] | |||
Loan maturity date | Dec. 31, 2031 | ||
Long term borrowings, net of issuance costs | $ 29,400 | ||
Interest rate | 3.50% | ||
Principal amount | $ 30,000 | ||
Fixed interest rate, period | 5 years | ||
The Notes [Member] | Subordinated Debt [Member] | SOFR [Member] | |||
Long-Term Borrowings [Abstract] | |||
Term of variable rate | 3 months | ||
Debt instrument, variable rate | 2.86% |
Share-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Weighted Average Grant Date Fair Value [Abstract] | ||
Stock-based compensation expense | $ 294 | $ 261 |
Restricted Stock [Member] | ||
Shares [Roll Forward] | ||
Nonvested balance at beginning of period (in shares) | 29,576 | |
Issued (in shares) | 18,048 | |
Vested (in shares) | (8,521) | |
Forfeited (in shares) | (668) | |
Nonvested balance at end of period (in shares) | 38,435 | 29,576 |
Weighted Average Grant Date Fair Value [Abstract] | ||
Nonvested balance at beginning of period (in dollars per share) | $ 18.46 | |
Issued (in dollars per share) | 22.35 | |
Vested (in dollars per share) | 17.50 | |
Forfeited (in dollars per share) | 18.89 | |
Nonvested balance at end of period (in dollars per share) | $ 20.49 | $ 18.46 |
Weighted-average remaining vesting period for recognition | 1 year 6 months 3 days | |
Fair value of restricted stock granted | $ 403 | $ 298 |
Unrecognized stock-based compensation expense | $ 351 | $ 254 |
2016 Stock Incentive Plan [Member] | ||
Stock option plan activity [Abstract] | ||
Shares available for grant (in shares) | 300,000 | |
ESPP [Member] | ||
Weighted Average Grant Date Fair Value [Abstract] | ||
Discount from market price at date of purchase | 5.00% | |
Total stock purchases under the plan (in shares) | 4,908 | 5,819 |
Shares reserved for issuance (in shares) | 227,543 | |
ESPP [Member] | Minimum [Member] | ||
Weighted Average Grant Date Fair Value [Abstract] | ||
Discount from market price at date of purchase | 0.00% | |
ESPP [Member] | Maximum [Member] | ||
Weighted Average Grant Date Fair Value [Abstract] | ||
Discount from market price at date of purchase | 15.00% |
Stockholders' Equity and Earnings per Common Share, Amounts Reclassified Out of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Available-for-sale securities [Abstract] | ||
Realized gains on sales of securities | $ 0 | $ 264 |
Tax effect | 0 | 55 |
Total | $ 0 | $ 209 |
Stockholders' Equity and Earnings per Common Share, Changes in Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Stockholders Equity Note [Abstract] | ||
Beginning Balance | $ 117,145 | $ 109,756 |
Ending Balance | 120,818 | 117,145 |
Other comprehensive income, pretax [Abstract] | ||
Unrealized holding gains (losses) arising during the period, pretax | (3,030) | 5,514 |
Reclassification adjustment for gains recognized in income, pretax | 0 | (264) |
Total change in accumulated other comprehensive income, net, pretax | (3,030) | 5,250 |
Other Comprehensive Income, Tax Effect [Abstract] | ||
Unrealized holding gains (losses) arising during the period, tax effect | (636) | 1,157 |
Reclassification adjustment for gains recognized in income, tax effect | 0 | (55) |
Total change in accumulated other comprehensive income, net, tax effect | (636) | 1,102 |
Other Comprehensive Income, Net of Tax [Abstract] | ||
Unrealized holding gains (losses) arising during the period, net of tax | (2,394) | 4,357 |
Reclassification adjustment for gains recognized in income, net of tax | 0 | (209) |
Other comprehensive income (loss), net of tax | (2,394) | 4,148 |
Unrealized Gains (Losses) on Available-for-Sale Securities [Member] | ||
Stockholders Equity Note [Abstract] | ||
Beginning Balance | 4,069 | (79) |
Net other comprehensive income (loss) | (2,394) | 4,148 |
Ending Balance | 1,675 | 4,069 |
Accumulated Other Comprehensive Income [Member] | ||
Stockholders Equity Note [Abstract] | ||
Beginning Balance | 4,069 | (79) |
Net other comprehensive income (loss) | (2,394) | 4,148 |
Ending Balance | 1,675 | 4,069 |
Other Comprehensive Income, Net of Tax [Abstract] | ||
Other comprehensive income (loss), net of tax | $ (2,394) | $ 4,148 |
Stockholders' Equity and Earnings per Common Share, Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Computation of earnings per share [Abstract] | ||
Net Income Available to Common Stockholders, Basic | $ 8,440 | $ 5,389 |
Net Income Available to Common Stockholders, Diluted | $ 8,440 | $ 5,389 |
Weighted Average Common Shares, Basic (in shares) | 5,238,318 | 5,216,237 |
Potentially dilutive common shares - employee stock purchase program (in shares) | 0 | 0 |
Weighted Average Common Shares, Diluted (in shares) | 5,238,352 | 5,216,441 |
Earnings Per Share, Basic (in dollars per share) | $ 1.61 | $ 1.03 |
Earnings Per Share, Diluted (in dollars per share) | $ 1.61 | $ 1.03 |
Stock Options [Member] | ||
Earnings Per Share [Abstract] | ||
Antidilutive securities excluded from computation of earnings per share (in shares) | 0 | 0 |
Related Party Transactions (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Related Party Transactions [Abstract] | ||
Direct or indirect loans to principal shareholders, executive officers or directors, maximum | 10.00% | |
Schedule of Annual activity [Roll Forward] | ||
Balance, beginning of year | $ 4,220 | $ 3,910 |
Additions | 1,822 | 3,531 |
Reductions | (4,153) | (3,221) |
Balance, end of year | 1,889 | 4,220 |
Deposits from related parties | $ 19,800 | $ 17,200 |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Components of income tax expense [Abstract] | ||
Current income tax expense | $ 1,021 | $ 1,155 |
Deferred income tax expense (benefit) | 275 | (634) |
Reported tax expense | 1,296 | 521 |
Reconciliation of expected federal income tax expense [Abstract] | ||
Expected tax expense | 2,045 | 1,241 |
Interest expense on tax-exempt assets | 3 | 5 |
Low-income housing tax credit | (361) | (413) |
Tax-exempt interest, net | (195) | (147) |
Bank-owned life insurance | (213) | (176) |
Other, net | 17 | 11 |
Reported tax expense | $ 1,296 | $ 521 |
Effective Income Tax Rate Reconciliation [Abstract] | ||
Effective tax rate | 13.30% | 8.80% |
Deferred tax assets [Abstract] | ||
Allowance for loan losses | $ 2,072 | $ 2,017 |
Nonaccrual loans | 10 | 9 |
Acquisition accounting | 5 | 14 |
Net operating losses | 609 | 643 |
Investments in pass-through entities | 267 | 224 |
Bank owned life insurance benefit | 72 | 68 |
Securities available-for-sale | 0 | 0 |
Stock awards | 116 | 97 |
Deferred compensation | 314 | 397 |
Deferred loan fees and costs | 270 | 443 |
Other | 66 | 55 |
Total | 3,801 | 3,967 |
Deferred tax liabilities [Abstract] | ||
Premises and equipment | 481 | 363 |
Acquisition accounting | 58 | 67 |
Deferred loan fees and costs | 0 | 0 |
Securities available-for-sale | 445 | 1,081 |
Total | 984 | 1,511 |
Net deferred tax assets | $ 2,817 | $ 2,456 |
Commitments and Contingencies (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
LetterofCredit
|
Dec. 31, 2020
USD ($)
|
|
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | $ 167,129 | $ 151,586 |
Home Equity Lines of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 71,751 | 66,999 |
Commercial Real Estate, Construction and Development Loans Committed but not Funded [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 42,683 | 20,258 |
Other Lines of Credit (Principally Commercial) [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | 52,695 | 64,329 |
Letters of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Commitments to extend credit | $ 3,617 | $ 4,841 |
Standby Letters of Credit [Member] | ||
Commitments to extend credit [Abstract] | ||
Typical expiration period | 1 year | |
Standby Letter of Credit Expires in Year 2023 [Member] | ||
Commitments to extend credit [Abstract] | ||
Number of letters with expiration period greater than one year | LetterofCredit | 4 | |
Expiration date of letters with expiration period greater than one year | Dec. 31, 2023 |
Fair Value Measurements, Recurring and Nonrecurring Basis (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets [Abstract] | ||
Securities available-for-sale | $ 234,321 | $ 186,409 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 833,661 | 826,759 |
Loans held for sale | 3,287 | 14,413 |
U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 14,904 | 7,043 |
Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 38,558 | 36,696 |
Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 65,803 | 45,995 |
Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 89,058 | 73,501 |
Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 2,413 | 4,743 |
Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 234,321 | 186,409 |
Derivatives [Abstract] | ||
Total assets | 234,545 | |
Derivative [Abstract] | ||
Total liabilities | 181 | |
Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 14,904 | 7,043 |
Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 38,558 | 36,696 |
Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 65,803 | 45,995 |
Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 89,058 | 73,501 |
Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 2,413 | 4,743 |
Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 23,585 | 18,431 |
Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 87 | |
Loans held for sale | 3,287 | 14,413 |
Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 87 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Loans held for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivatives [Abstract] | ||
Total assets | 0 | |
Derivative [Abstract] | ||
Total liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Loans held for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 234,321 | 186,409 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | 0 |
Loans held for sale | 3,287 | 14,413 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 234,321 | 186,409 |
Derivatives [Abstract] | ||
Total assets | 234,545 | |
Derivative [Abstract] | ||
Total liabilities | 181 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 14,904 | 7,043 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 38,558 | 36,696 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 65,803 | 45,995 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 89,058 | 73,501 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 2,413 | 4,743 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 23,585 | 18,431 |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 43 | |
Significant Other Observable Inputs (Level 2) [Member] | Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 181 | |
Derivative [Abstract] | ||
Derivative Liabilities | 181 | |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Loans held for sale | 3,287 | 14,413 |
Significant Other Observable Inputs (Level 2) [Member] | Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 834,693 | 825,963 |
Loans held for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Derivatives [Abstract] | ||
Total assets | 0 | |
Derivative [Abstract] | ||
Total liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | U.S. Treasury Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Obligations of U.S. Government Agencies [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Obligations of State and Political Subdivisions [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Mortgage-Backed Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Money Market Investments [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Corporate Bonds and Other Securities [Member] | ||
Assets [Abstract] | ||
Securities available-for-sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Recurring [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivative Assets | 0 | |
Derivative [Abstract] | ||
Derivative Liabilities | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | 87 | |
Loans held for sale | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) [Member] | Nonrecurring [Member] | Commercial Loans [Member] | ||
Derivative [Abstract] | ||
Loans, net of allowances for loan losses | $ 87 |
Fair Value Measurements, Quantitative Information (Details) - Commercial Loan [Member] - Market Comparables [Member] $ in Thousands |
Dec. 31, 2021
USD ($)
|
---|---|
Selling Costs [Member] | Minimum [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Measurement Input | 0.0000 |
Selling Costs [Member] | Maximum [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Measurement Input | 0.0800 |
Selling Costs [Member] | Weighted Average [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Measurement Input | 0.0700 |
Fair Value, Nonrecurring [Member] | |
Investments, Fair Value Disclosure [Abstract] | |
Impaired Loans Fair Value | $ 87 |
Fair Value Measurements, Estimated Fair Value and Related Carrying or Notional Amounts (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets [Abstract] | ||
Cash and cash equivalents | $ 187,922 | $ 120,437 |
Securities available-for-sale, at fair value | 234,321 | 186,409 |
Restricted securities | 1,034 | 1,367 |
Loans held for sale | 3,287 | 14,413 |
Loans, net of allowances for loan losses | 833,661 | 826,759 |
Derivatives [Abstract] | ||
Bank owned life insurance | 28,168 | 28,386 |
Accrued interest receivable | 3,339 | 3,613 |
Liabilities [Abstract] | ||
Deposits | 1,177,099 | 1,067,236 |
Overnight repurchase agreements | 4,536 | 6,619 |
Federal Reserve Bank borrowings | 480 | |
Federal Reserve Bank borrowings | 28,550 | |
Long term borrowings | 29,407 | 1,350 |
Derivative [Abstract] | ||
Accrued interest payable | 693 | 384 |
Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 43 | |
Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 181 | |
Derivative [Abstract] | ||
Derivative liabilities | 181 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 187,922 | 120,437 |
Securities available-for-sale, at fair value | 0 | 0 |
Restricted securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowances for loan losses | 0 | 0 |
Derivatives [Abstract] | ||
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Overnight repurchase agreements | 0 | 0 |
Federal Reserve Bank borrowings | 0 | |
Federal Reserve Bank borrowings | 0 | |
Long term borrowings | 0 | 0 |
Derivative [Abstract] | ||
Accrued interest payable | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Derivative [Abstract] | ||
Derivative liabilities | 0 | |
Significant Other Observable Inputs (Level 2) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 234,321 | 186,409 |
Restricted securities | 1,034 | 1,367 |
Loans held for sale | 3,287 | 14,413 |
Loans, net of allowances for loan losses | 0 | 0 |
Derivatives [Abstract] | ||
Bank owned life insurance | 28,168 | 28,386 |
Accrued interest receivable | 3,339 | 3,613 |
Liabilities [Abstract] | ||
Deposits | 1,179,631 | 1,070,236 |
Overnight repurchase agreements | 4,536 | 6,619 |
Federal Reserve Bank borrowings | 480 | |
Federal Reserve Bank borrowings | 28,550 | |
Long term borrowings | 29,657 | 1,350 |
Derivative [Abstract] | ||
Accrued interest payable | 693 | 384 |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 43 | |
Significant Other Observable Inputs (Level 2) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 181 | |
Derivative [Abstract] | ||
Derivative liabilities | 181 | |
Significant Unobservable Inputs (Level 3) [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available-for-sale, at fair value | 0 | 0 |
Restricted securities | 0 | 0 |
Loans held for sale | 0 | 0 |
Loans, net of allowances for loan losses | 834,693 | 825,963 |
Derivatives [Abstract] | ||
Bank owned life insurance | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Liabilities [Abstract] | ||
Deposits | 0 | 0 |
Overnight repurchase agreements | 0 | 0 |
Federal Reserve Bank borrowings | 0 | |
Federal Reserve Bank borrowings | 0 | |
Long term borrowings | 0 | 0 |
Derivative [Abstract] | ||
Accrued interest payable | 0 | $ 0 |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Lock [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Significant Unobservable Inputs (Level 3) [Member] | Interest Rate Swap on Loans [Member] | ||
Derivatives [Abstract] | ||
Derivatives assets | 0 | |
Derivative [Abstract] | ||
Derivative liabilities | $ 0 |
Regulatory Matters (Details) $ in Thousands |
Dec. 31, 2021
USD ($)
|
Dec. 31, 2020
USD ($)
|
---|---|---|
Common Equity Tier 1 Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Common Equity Tier 1 Capital to Risk-Weighted Assets, Regulatory Minimums | 0.04500 | 0.04500 |
Common Equity Tier 1 Capital to Risk-Weighted Assets, Ratio | 0.1257 | 0.1169 |
Tier 1 Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Tier 1 Capital to Risk-Weighted Assets, Regulatory Minimums | 0.06000 | 0.06000 |
Tier 1 Capital to Risk-Weighted Assets, Ratio | 0.1257 | 0.1169 |
Tier 1 Capital to Average Assets, Ratio [Abstract] | ||
Tier 1 Leverage to Average Assets, Regulatory Minimums | 0.04000 | 0.04000 |
Tier 1 Leverage to Average Assets, Ratio | 0.0909 | 0.0856 |
Total Capital to Risk Weighted Assets, Ratio [Abstract] | ||
Total Capital to Risk-Weighted Assets, Regulatory Minimums | 0.08000 | 0.08000 |
Total Capital to Risk-Weighted Assets, Ratio | 0.1361 | 0.1277 |
Capital Conservation Buffer, Ratio [Abstract] | ||
Capital Conservation Buffer, Regulatory Minimums | 0.02500 | 0.02500 |
Capital Conservation Buffer, Ratio | 0.0561 | 0.0477 |
Risk Weighted Assets | $ 952,218 | $ 890,091 |
Amount available for dividend distribution without prior approval from regulatory agency | $ 8,300 |
Segment Reporting (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021
USD ($)
Area
Segment
|
Dec. 31, 2020
USD ($)
|
|
Revenues [Abstract] | ||
Interest and dividend income | $ 42,252 | $ 40,009 |
Total operating income | 57,137 | 54,707 |
Expenses [Abstract] | ||
Interest expense | 3,458 | 5,292 |
Provision for loan losses | 794 | 1,000 |
Salaries and employee benefits | 25,361 | 25,512 |
Other expenses | 17,788 | 16,993 |
Total operating expenses | 47,401 | 48,797 |
Income before income taxes | 9,736 | 5,910 |
Income tax expense (benefit) | 1,296 | 521 |
Net income | 8,440 | 5,389 |
Capital expenditures | 1,514 | 924 |
Total assets | $ 1,338,155 | 1,226,191 |
Number of principal business segments | Segment | 3 | |
Number of geographical areas in which an entity operates | Area | 1 | |
Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | $ 4,198 | 3,877 |
Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 10,687 | 10,821 |
Operating Segments [Member] | Bank [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | 42,226 | 39,966 |
Total operating income | 51,907 | 49,865 |
Expenses [Abstract] | ||
Interest expense | 2,909 | 5,237 |
Provision for loan losses | 794 | 1,000 |
Salaries and employee benefits | 21,682 | 21,652 |
Other expenses | 16,412 | 15,840 |
Total operating expenses | 41,797 | 43,729 |
Income before income taxes | 10,110 | 6,136 |
Income tax expense (benefit) | 1,372 | 565 |
Net income | 8,738 | 5,571 |
Capital expenditures | 1,473 | 901 |
Total assets | 1,330,337 | 1,218,766 |
Operating Segments [Member] | Bank [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 0 | 0 |
Operating Segments [Member] | Bank [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 9,681 | 9,899 |
Operating Segments [Member] | Trust [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | 26 | 43 |
Total operating income | 5,291 | 4,903 |
Expenses [Abstract] | ||
Interest expense | 0 | 0 |
Provision for loan losses | 0 | 0 |
Salaries and employee benefits | 3,012 | 3,191 |
Other expenses | 1,131 | 1,078 |
Total operating expenses | 4,143 | 4,269 |
Income before income taxes | 1,148 | 634 |
Income tax expense (benefit) | 243 | 136 |
Net income | 905 | 498 |
Capital expenditures | 41 | 23 |
Total assets | 7,227 | 6,957 |
Operating Segments [Member] | Trust [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 4,198 | 3,877 |
Operating Segments [Member] | Trust [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 1,067 | 983 |
Operating Segments [Member] | Parent [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | 9,643 | 6,069 |
Total operating income | 9,844 | 6,269 |
Expenses [Abstract] | ||
Interest expense | 549 | 55 |
Provision for loan losses | 0 | 0 |
Salaries and employee benefits | 667 | 669 |
Other expenses | 507 | 336 |
Total operating expenses | 1,723 | 1,060 |
Income before income taxes | 8,121 | 5,209 |
Income tax expense (benefit) | (319) | (180) |
Net income | 8,440 | 5,389 |
Capital expenditures | 0 | 0 |
Total assets | 150,943 | 118,558 |
Operating Segments [Member] | Parent [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 0 | 0 |
Operating Segments [Member] | Parent [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 201 | 200 |
Eliminations [Member] | ||
Revenues [Abstract] | ||
Interest and dividend income | (9,643) | (6,069) |
Total operating income | (9,905) | (6,330) |
Expenses [Abstract] | ||
Interest expense | 0 | 0 |
Provision for loan losses | 0 | 0 |
Salaries and employee benefits | 0 | 0 |
Other expenses | (262) | (261) |
Total operating expenses | (262) | (261) |
Income before income taxes | (9,643) | (6,069) |
Income tax expense (benefit) | 0 | 0 |
Net income | (9,643) | (6,069) |
Capital expenditures | 0 | 0 |
Total assets | (150,352) | (118,090) |
Eliminations [Member] | Income from Fiduciary Activities [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | 0 | 0 |
Eliminations [Member] | Other Income [Member] | ||
Revenues [Abstract] | ||
Noninterest revenue | $ (262) | $ (261) |
Condensed Financial Statements of Parent Company, Balance Sheets (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Dec. 31, 2020 |
---|---|---|
Assets [Abstract] | ||
Cash and cash equivalents | $ 187,922 | $ 120,437 |
Securities available-for-sale | 234,321 | 186,409 |
Other assets | 14,832 | 12,838 |
Total assets | 1,338,155 | 1,226,191 |
Liabilities and Stockholders' Equity [Abstract] | ||
Long term borrowings | 29,407 | 1,350 |
Other liability | 5,815 | 5,291 |
Common stock | 26,006 | 25,972 |
Additional paid-in capital | 21,458 | 21,245 |
Retained earnings | 71,679 | 65,859 |
Accumulated other comprehensive income (loss) | 1,675 | 4,069 |
Total liabilities and stockholders' equity | 1,338,155 | 1,226,191 |
Parent Company [Member] | ||
Assets [Abstract] | ||
Cash and cash equivalents | 20,012 | 1,203 |
Securities available-for-sale | 0 | 0 |
Investment in common stock of subsidiaries | 130,123 | 116,848 |
Other assets | 808 | 507 |
Total assets | 150,943 | 118,558 |
Liabilities and Stockholders' Equity [Abstract] | ||
Long term borrowings | 29,407 | 1,350 |
Other liability | 718 | 63 |
Common stock | 26,006 | 25,972 |
Additional paid-in capital | 21,458 | 21,245 |
Retained earnings | 71,679 | 65,859 |
Accumulated other comprehensive income (loss) | 1,675 | 4,069 |
Total liabilities and stockholders' equity | $ 150,943 | $ 118,558 |
Condensed Financial Statements of Parent Company, Statements of Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Income [Abstract] | ||
Other income | $ 70 | $ 134 |
Total interest and dividend income | 42,252 | 40,009 |
Expenses [Abstract] | ||
Salary and benefits | 25,361 | 25,512 |
Legal expenses | 2,521 | 2,196 |
Other operating expenses | 3,629 | 3,369 |
Total noninterest expense | 43,149 | 42,505 |
Income before income taxes | 9,736 | 5,910 |
Income tax benefit | 1,296 | 521 |
Net income | 8,440 | 5,389 |
Parent Company [Member] | ||
Income [Abstract] | ||
Dividends from subsidiary | 3,975 | 3,425 |
Other income | 201 | 200 |
Total interest and dividend income | 4,176 | 3,625 |
Expenses [Abstract] | ||
Salary and benefits | 667 | 669 |
Subordinated debt | 549 | 0 |
Legal expenses | 274 | 108 |
Service fees | 146 | 135 |
Other operating expenses | 87 | 148 |
Total noninterest expense | 1,723 | 1,060 |
Income before income taxes | 2,453 | 2,565 |
Income tax benefit | (319) | (180) |
Net income before equity in undistributed net income of subsidiaries | 2,772 | 2,745 |
Equity in undistributed net income of subsidiaries | 5,668 | 2,644 |
Net income | $ 8,440 | $ 5,389 |
Condensed Financial Statements of Parent Company, Statements of Cash Flows (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
|
Cash flows from operating activities: | ||
Net income | $ 8,440 | $ 5,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Amortization of subordinated debt issuance costs | 60 | 0 |
Stock compensation expense | 294 | 261 |
(Decrease) increase in other assets | (748) | (966) |
Net cash provided by (used in) operating activities | 23,176 | (8,635) |
Cash flows from investing activities: | ||
Net cash used in investing activities | (60,731) | (122,241) |
Cash flows from financing activities: | ||
Repurchase and retirement of common stock | (150) | 0 |
Cash dividends paid on common stock | (2,620) | (2,505) |
Net cash provided by financing activities | 105,040 | 161,448 |
Net increase in cash and cash equivalents | 67,485 | 30,572 |
Cash and cash equivalents at beginning of period | 120,437 | 89,865 |
Cash and cash equivalents at end of period | 187,922 | 120,437 |
Parent Company [Member] | ||
Cash flows from operating activities: | ||
Net income | 8,440 | 5,389 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Equity in undistributed net income of subsidiaries | (5,668) | (2,644) |
Amortization of subordinated debt issuance costs | 60 | 0 |
Stock compensation expense | 32 | 55 |
(Decrease) increase in other assets | (40) | 8 |
Increase in other liabilities | 655 | 5 |
Net cash provided by (used in) operating activities | 3,479 | 2,813 |
Cash flows from investing activities: | ||
Cash distributed to subsidiary | (10,000) | 0 |
Net cash used in investing activities | (10,000) | 0 |
Cash flows from financing activities: | ||
Proceeds from sale of stock | 103 | 96 |
Proceeds from borrowings | 29,347 | 0 |
Repayment of borrowings | (1,350) | (600) |
Repurchase and retirement of common stock | (150) | 0 |
Cash dividends paid on common stock | (2,620) | (2,505) |
Net cash provided by financing activities | 25,330 | (3,009) |
Net increase in cash and cash equivalents | 18,809 | (196) |
Cash and cash equivalents at beginning of period | 1,203 | 1,399 |
Cash and cash equivalents at end of period | $ 20,012 | $ 1,203 |