/($.*'$FRI,F3*%.J7,FRI/Z(<'%2]J_+R*-EM=?! ="%4K0KRC2-.G&YCC"B2
M);:Q*^LK92NV;6JCL"!H(PN%Q%9!4[-60#O33:C S;1HJS6M1AB<&QD;[U#'
MEMQA(0X1C_GM?A/O++'SHK)KP2CN=[
RPLX&"N1K0YVB >O0 !8[2<5+FWTVKC0_!+%!E155YU$ *&.9
M4] Y*I-86W^:<74K% O8SV@+/OBD:F_7U-N&YEP45PDQR6>\U;5<-N&56YYV
MT^<>%Q+=1LDM4+7#.4H38$8KH]IKQ$PB5$I'MT[,6:ZC<73LQ+Q^^^RVYXX[
M[;OG7GOMGZP.>^Z>"E6[\<23';M:LS?/.AK'1T^\]$(EGXGS9UD_//;+3W]]
M]M]S'_[VUI/OZOC>E^_J^>"KC[[Y[[M?K_CQT[]^]_?#S[[\Z>L_O_;VE[\
M K!^_/N?_PB80 ,.D('M6R#^'F@_!4[0@?VK8 0O>$!/"F[0@@C$H EV,$,
MTL][LC-<@Y:2N+J!KBA'6<&':'6Y&=)07R@TU>8&0C'%.8Z%HC-0LFHHQ"&6
MZH8WLIE K(8UJ5'M<09R$Q&C*,699:+.7SD<"!
ZXZ!&URL
M.62ZDRH/J9PL*2A#MU12]FQOB:OE+L5VRUYV49>_+.:BGG?,9KYHF<^LYJJF
M^6DAD0S=?L)?X0JDB5N#HIT[5..+V!G.1Y%SAPAB9T7AN207HG)T^ARC.\^Y
M)(.6
/($.*'$FRI,F3*%.J7&F0&)PQ
M.!+(2!!31@X9#VSBE.%@1AI-%UD*'4JTJ-&C2),J7:I14T0$-V7>O)DSYPRH
M"&;,P'%5QAA-3,.*'4NVK-FS2#6EF5ES1L^:-&?(<+MU*\VX566 W5=/&=J_
M@ ,+'DQ89#1*.;C&C
Consolidated Balance Sheets (Parentheticals) - $ / shares |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Preferred stock par value | $ 0.01 | $ 0.01 |
Authorized shares, preferred | 200,000 | 200,000 |
Issued shares, preferred | 0 | 0 |
Common stock par value | $ 0.01 | $ 0.01 |
Authorized shares, common | 8,500,000 | 8,500,000 |
Issued shares, common | 3,957,135 | 3,957,135 |
Treasury stock, shares held | 390,859 | 390,989 |
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Statements of Comprehensive Income [Abstract] | ||
Net earnings | $ 7,454 | $ 9,741 |
Other comprehensive income (loss), net of tax: | ||
Unrealized net holding gain (loss) on securities | 5,617 | 5,730 |
Reclassification adjustment for net loss on securities recognized in net earnings | (77) | 92 |
Other comprehensive income (loss) | 5,540 | 5,822 |
Comprehensive income | $ 12,994 | $ 15,563 |
Consolidated Statements of Stockholders' Equity - USD ($) $ in Thousands |
Total |
Common Stock Member |
Additional Paid In Capital Member |
Retained Earnings Member |
Accumulated Other Comprehensive Income Member |
Treasury Stock Member |
---|---|---|---|---|---|---|
Balance, shares at Dec. 31, 2018 | 3,643,868 | |||||
Balance, Beg at Dec. 31, 2018 | $ 89,055 | $ 39 | $ 3,779 | $ 95,635 | $ (3,763) | $ (6,635) |
Net earnings | 9,741 | 0 | 0 | 9,741 | 0 | 0 |
Other comprehensive (loss) | 5,822 | 0 | 0 | 0 | 5,822 | 0 |
Cash dividends paid | (3,575) | 0 | 0 | (3,575) | 0 | 0 |
Treasury Stock, acquired | 2,721 | $ 0 | 0 | 0 | 0 | (2,721) |
Treasury Stock, acquired shares | (77,907) | |||||
Sale of treasury stock | 6 | $ 0 | 5 | 0 | 0 | 1 |
Sale of treasury stock shares | 185 | |||||
Balance, End at Dec. 31, 2019 | $ 98,328 | $ 39 | 3,784 | 101,801 | 2,059 | (9,355) |
Balance, shares at Dec. 31, 2019 | 3,566,146 | |||||
Net earnings | $ 7,454 | 0 | 0 | 7,454 | 0 | 0 |
Other comprehensive (loss) | 5,540 | 0 | 0 | 0 | 5,540 | 0 |
Cash dividends paid | (3,638) | 0 | 0 | (3,638) | 0 | 0 |
Sale of treasury stock | 6 | $ 0 | 5 | 0 | 0 | 1 |
Sale of treasury stock shares | 130 | |||||
Balance, End at Dec. 31, 2020 | $ 107,690 | $ 39 | $ 3,789 | $ 105,617 | $ 7,599 | $ (9,354) |
Balance, shares at Dec. 31, 2020 | 3,566,276 |
Consolidated Statements of Stockholders' Equity (Parentheticals) - $ / shares |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Statement of Stockholders' Equity (Parentheticals) | ||
Cash dividends paid per share | $ 1.00 | $ 0.96 |
Summary of Significant Accounting Policies |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Summary of Signficant Accounting Policies | |
Basis of Presentation | AUBURN NATIONAL Notes to Consolidated Financial Statements NOTE 1: SUMMARY OF SIGNIFICANT ACCOUNTING Nature of Business Auburn National Bancorporation, Inc. (the “Company”) is a bank holding by its wholly-owned subsidiary, Alabama. The Bank provides a full range of banking services in its Auburn-Opelika Metropolitan Statistical Area. Basis of Presentation The consolidated financial statements include the accounts of intercompany transactions and accounts are eliminated in consolidation. COVID-19 Uncertainty COVID-19 has adversely affected, and may continue to Following the COVID-19 outbreak in December 2019 and January federal banking agencies encouraged financial institutions to provide relief from reporting loan classifications due to modifications COVID-19 has caused us to modify our business practices, including cancellation of physical participation in meetings, events and situation precludes any predication as to the ultimate impact presents uncertainty and risk with respect to the Company, Revenue Recognition On January 1, 2018, the Company implemented ASU 2014 , codified at Company’s revenue stream is generated 606. The Company’s sources of income that services, interchange fees and gains and losses on sales of other noninterest income. The following is a summary of the revenue streams Service charges on deposits, investment services, ATM transaction-based, for which the performance obligations are satisfied periodic service charges, for which the performance obligations Transaction-based fees are recognized at the time over the service period. Gains on sales of other real estate A gain on sale should be recognized when a contract for sale exists and asset has been transferred to the buyer. including a determination that the institution will collect substantially addition to the loan-to-value, the analysis is based on various other structure of the loan, and any other factors that may affect Use of Estimates The preparation of financial statements in conformity with U.S. management to make estimates and assumptions that affect of contingent assets and liabilities as of the balance sheet date reporting period. Actual results could differ from those significant change in the near term include the determination valuation of other real estate owned, and valuation of deferred Change in Accounting Estimate During the fourth quarter of 2019, the Company reassessed its estimate Company revised its original useful life estimate for certain land improvements, fixtures and equipment, with a carrying value of $ 0.5 demolition dates planned as part of the redevelopment project accounting estimate, per ASC 250-10, where adjustments should accounting estimate on the 2020 and 2019 consolidated $ 342 0.10 161 0.04 Reclassifications Certain amounts reported in the prior period have been reclassified reclassifications had no impact on the Company’s Subsequent Events The Company has evaluated the effects of events subsequent to December 31, 2020. The Company does not believe require further recognition or disclosure. Accounting In 2020, the Company adopted new guidance related to the following ● ASU 2018-13, Fair Value Requirements for Fair Value ; and ● ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software Accounting for Implementation Costs Incurred Information about these pronouncements is described in more ASU 2018-13, Fair Value Fair Value improves the disclosure requirements on fair value measurements requirements to disclose (i) the amount of and reasons for transfers (ii) the policy for timing of transfers between levels; and (iii) This ASU also added specific disclosure requirements for fair requirement to disclose the changes in unrealized gains and for recurring Level 3 fair value measurements and the range and to develop Level 3 fair value measurements. The amendments in this ASU are effective for all interim periods within those fiscal years. Early adoption was permitted early adopt amendments that remove or modify disclosures and effective date. The Company adopted this ASU on January impact on the Company’s consolidated ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software Implementation Costs Incurred in aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that capitalizing implementation costs incurred to develop or include internal-use software license). This ASU requires entities to Goodwill and Other - Internal Use Software, to determine whether the service contract. This ASU also requires entities to (i) expense capitalized arrangement that is a service contract over the term of the hosting capitalized implementation costs in the same line item on the of the arrangement; (iii) classify payments for capitalized implementation manner as payments made for fees associated with the hosting costs in the same balance sheet line item that a prepayment for presented. The amendments in this ASU are effective for fiscal years those fiscal years. Early adoption was permitted. The Company adopted guidance did not have a material impact on the Company’s Cash Equivalents Cash equivalents include cash on hand, cash items in process bearing deposits with other banks, and federal funds sold. Securities Securities are classified based on management’s Company’s securities were classified interest rate risk management strategy, risks or other factors. All securities classified as available-for-sale losses reported in accumulated other comprehensive income dividends on securities, including the amortization of premiums and income using the effective interest method. over the estimated life of the security. specific identification method. On a quarterly basis, management makes an assessment to determine circumstances to indicate that a security on which there is an For debt securities with an unrealized loss, an other-than Company has the intent to sell a debt security, debt security before recovery of its amortized cost basis, or cost basis of the debt security. be required to sell the debt security before recovery, between the debt security’s amortized more likely than not that it will be required to sell the security down is separated into the amount that is credit related (credit loss component) credit loss component is recognized in earnings, as a realized the security’s amortized cost basis and between the security’s fair value and related and is recognized in other comprehensive income, net Loans held for sale Loans originated and intended for sale in the secondary market are aggregate. Continuing involvement, through the sales agreement, consists of the loan, if applicable. reflected as a component of mortgage lending income in the consolidated In the course of conducting the Bank’s the secondary market, the Bank makes various representations and Every loan closed by the Bank’s Any exceptions noted during this process are remedied prior to underwriting the real estate appraisal opinion of value for the comply with the underwriting and/or appraisal standards could mortgage loan or to reimburse the investor for losses incurred Company within the specified period following discovery. Loans Loans are reported at their outstanding principal balances, net or costs on originated loans. Loan origination fees, net of certain loan origination costs, are deferred and recognized using the effective interest method. Loan commitment fees over the commitment period, which results in a recorded The accrual of interest on loans is discontinued when there is borrower and full repayment of principal and interest is not expected due, unless the loan is both well-collateralized and in the process collected for loans that are placed on nonaccrual status is reversed nonaccrual loans are generally applied as principal reductions. loan based on contractual payment terms. A loan is considered impaired when it is probable the Company due according to the contractual terms of the loan agreement. the present value of expected payments using the loan’s market price, or the fair value of the collateral if the loan is collateral loan exceeds the measure of fair value, a valuation allowance may be Changes to the valuation allowance are recorded as Impaired loans also include troubled debt restructurings (“TD grant concessions to borrowers who are experiencing financial TDRs involve reductions or delays in required payments of principal payments in accordance with a bankruptcy plan or the charge the credit also warrant nonaccrual status, even after the restructuring restructured loans are evaluated for adequate collateral of restructuring. TDR loans may be returned to accrual status repayment performance by the borrower. The Company began offering short-term loan modifications modification meets certain conditions, the modification does not please refer to Note 5, Loans and Allowance for Loan Losses. Allowance for Loan Losses The allowance for loan losses is maintained at a level that manage inherent in the loan portfolio. Loan losses are charged are credited to the allowance. Management’s the portfolio, current economic conditions, growth, composition ratings of specific loans, historical loan loss factors, identified evaluation is performed quarterly and is inherently subjective, to significant change, including the amounts and timing of future cash In addition, regulatory agencies, as an integral part of their examination allowance for loan losses, and may require the Company to record information available to them at the time of their examinations. Premises and Equipment Land is carried at cost. Land improvements, buildings and improvements, at cost, less accumulated depreciation computed on a straight terms of the leases, if shorter. Expected reasonably assured. Nonmarketable equity investments Nonmarketable equity investments include equity securities that are purposes. The Bank is required to maintain certain minimum levels entities in which the Bank has an ongoing business relationship regard to the relationship with the Federal Reserve Bank) or outstanding the Federal Home Loan Bank of Atlanta). These nonmarketable or redemption value. These securities do not have a readily determinable is no market for these securities. These securities can only be issuing government supported institution or to another member equity securities as a component of other assets, which are periodically these nonmarketable equity securities to be long-term investments. impairment, management considers the ultimate recoverability declines in value. Transfers of Financial Transfers of an entire financial asset (i.e. loan financial asset (i.e. loan participations sold) are accounted for Control over transferred assets is deemed to be surrendered (2) the transferee obtains the right (free of conditions that constrain transferred assets, and (3) the Company does not maintain effective agreement to repurchase them before their maturity. Mortgage Servicing Rights The Company recognizes as assets the rights to service mortgage loans determines the fair value of MSRs at the date the loan is transferred. using assumptions that market participants would use in estimating prepayment speeds, discount rate, default rates, cost to service, ancillary income, and late fees. Subsequent to the date of transfer, the Company the amortization method, MSRs are amortized in proportion amortization of MSRs is analyzed monthly and is adjusted to reflect MSRs are evaluated for impairment based on the fair value of those into groupings based on predominant risk characteristics, such carrying amount of the MSRs exceeds fair value, a valuation valuation allowance is adjusted as the fair value changes. accompanying consolidated balance sheets. Securities sold under agreements to repurchase Securities sold under agreements to repurchase generally mature sold under agreements to repurchase are reflected as a secured at the amount of cash received in connection with each transaction. Income Taxes Deferred tax assets and liabilities are the expected future tax amounts amounts and tax bases of assets and liabilities, computed using enacted deferred tax assets to the amount expected to be realized. assets in the accompanying consolidated balance sheets. Income tax expense or benefit for the year is allocated among continuing (loss), as applicable. The amount allocated to continuing operations from continuing operations that occurred during the year, circumstances that cause a change in judgment about the realization income tax laws or rates, and (3) changes in income tax status, comprehensive income (loss) is related solely to changes in the valuation for in other comprehensive income (loss) such as unrealized In accordance with ASC 740, Income Taxes , a tax position is recognized as a benefit only if it is “more likely than not” the tax position would be sustained in a tax examination, with a tax examination recognized is the largest amount of tax benefit that positions not meeting the “more likely than not” test, no tax benefit interest and penalties related to income tax matters in income file a consolidated income tax return. Fair Value ASC 820, Fair Value which defines fair value, establishes a framework for measuring fair value generally accepted accounting principles and expands disclosures about fair-value measurements that are already required focuses on the exit price, i.e., the price transaction between market participants at the measurement date, acquire the asset or received to assume the liability at the measurement market-based measurement; not an entity-specific measurement. determined based on the assumptions that market participants information related to fair value measurements, please refer |
Basic and Diluted Earnings Per Share |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Basic and Diluted Earnings Per Share Text Block | NOTE 2: BASIC AND DILUTED NET EARNINGS PER SHARE Basic net earnings per share is computed by dividing net earnings the year. rights for, or convertible into, shares of the Company had no such securities or other rights issued or the diluted net earnings per share calculation. The basic and diluted net earnings per share computations for Year ended December 31 (Dollars in thousands, except share and per share data) 2020 2019 Basic and diluted: Net earnings $ 7,454 $ 9,741 Weighted average common 3,566,207 3,581,476 Net earnings per share $ 2.09 $ 2.72 |
Restricted Cash Balances |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Restricted Cash Balances | |
Restricted Cash Balances Text Block | NOTE 3: RESTRICTED CASH BALANCES Regulation D of the Federal Reserve Act requires that banks (“FRB”) based principally on the type and amount of their deposits. banks to maintain reserve balances on deposit with the FRB. at December 31, 2019. |
Securities |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Investments debt and equity securities [Abstract] | |
Investments In Debt And Marketable Equity Securities And Certain Trading Assets Disclosure Text Block | NOTE 4: SECURITIES At December 31, 2020 and 2019, respectively, Investments – Debt and Equity Securities were classified as available-for-sale. contractual maturity at December 31, 2020 and 2019, respectively, 1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost December 31, 2020 Agency obligations (a) $ 5,048 24,834 55,367 12,199 97,448 3,156 98 $ 94,390 Agency MBS (a) — 1,154 20,502 141,814 163,470 3,245 133 160,358 State and political subdivisions 477 632 8,405 64,745 74,259 3,988 11 70,282 Total available-for-sale $ 5,525 26,620 84,274 218,758 335,177 10,389 242 $ 325,030 December 31, 2019 Agency obligations (a) $ 4,993 27,245 18,470 — 50,708 215 98 $ 50,591 Agency MBS (a) — 560 4,510 118,207 123,277 798 261 $ 122,740 State and political subdivisions — 1,355 6,166 54,396 61,917 2,104 9 $ 59,822 Total available-for-sale $ 4,993 29,160 29,146 172,603 235,902 3,117 368 $ 233,153 (a) Includes securities issued by U.S. government agencies or these securities may differ from contractual maturities because with or without prepayment penalties. Securities with aggregate fair values of $ 166.9 147.8 were pledged to secure public deposits, securities sold under (“FHLB”) advances, and for other purposes required or permitted Included in other assets on the accompanying consolidated balance sheets carrying amounts of nonmarketable equity investments were 1.4 Nonmarketable equity investments include FHLB of Atlanta privately held financial institution. Gross Unrealized Losses and Fair Value The fair values and gross unrealized losses on securities at December securities that have been in an unrealized loss position for Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2020: Agency obligations $ 15,416 98 — — 15,416 $ 98 Agency MBS 41,488 133 — — 41,488 133 State and political subdivisions 2,945 11 — — 2,945 11 Total $ 59,849 242 — — 59,849 $ 242 December 31, 2019: Agency obligations $ 24,734 97 4,993 1 29,727 $ 98 Agency MBS 40,126 98 21,477 163 61,603 261 State and political subdivisions 2,741 9 — — 2,741 9 Total $ 67,601 204 26,470 164 94,071 $ 368 For the securities in the previous table, the Company does not than not that the Company will be required to sell the security maturity. On a quarterly basis, evaluates, where necessary, the securities’ amortized cost basis. In determining whether a loss is temporary, ● the length of time and the extent to which the fair value has been ● adverse conditions specifically related to the security, the financial condition of the issuer of the security, condition of the underlying loan obligors, including changes in technology the business that may affect the future earnings potential of changes in the quality of the credit enhancement); ● the historical and implied volatility of the fair value of the security; ● the payment structure of the debt security and the likelihood of the issuer increase in the future; ● failure of the issuer of the security to make scheduled interest ● any changes to the rating of the security by a rating agency; and ● recoveries or additional declines in fair value subsequent to the Agency obligations The unrealized losses associated with agency obligations were the credit quality of the securities. These securities were issued entities and did not have any credit losses given the explicit government Agency mortgage-backed securities (“MBS”) The unrealized losses associated with agency MBS were primarily credit quality of the securities. These securities were issued by U.S. and did not have any credit losses given the explicit government guarantee Securities of U.S. states and political subdivisions The unrealized losses associated with securities of U.S. states and in interest rates and were not due to the credit quality of the securities. insurer, but management did not rely on the be monitored as part of the Company’s agencies reduce the credit rating of the bond insurers. As a result, the basis of these securities. The carrying values of the Company’s issuer deteriorates and the Company determines it is probable security. As a result, there is Other-Than-Temporarily Credit-impaired debt securities are debt securities where the Company security for other-than-temporary impairment and the credit December 31, or reductions in the credit loss component of credit-impaired 2019, respectively. Realized Gains and Losses Year ended December 31 (Dollars in thousands) 2020 2019 Gross realized gains $ 184 120 Gross realized losses (81) (243) Realized gains (losses), net $ 103 (123) |
Loan and Allowance for Loan Losses |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Loans and leases receivable disclosure [Text Block] | NOTE 5: LOANS AND ALLOWANCE December 31 (In thousands) 2020 2019 Commercial and industrial $ 82,585 $ 56,782 Construction and land development 33,514 32,841 Commercial real estate: Owner occupied 54,033 48,860 Hotel/motel 42,900 43,719 Multifamily 40,203 44,839 Other 118,000 132,900 Total commercial real estate 255,136 270,318 Residential real estate: Consumer mortgage 35,027 48,923 Investment property 49,127 43,652 Total residential real estate 84,154 92,575 Consumer installment 7,099 8,866 Total loans 462,488 461,382 Less: unearned income (788) (481) Loans, net of unearned income $ 461,700 $ 460,901 Loans secured by real estate were approximately 80.6 % of the total loan portfolio at December 31, 2020. 2020, the Company’s geographic areas. In accordance with ASC 310, Receivables , a portfolio segment is defined as the level at which an entity develops documents a systematic method for determining its allowance assessment of the allowance, the loan portfolio is disaggregated industrial, construction and land development, commercial real Where appropriate, the Company’s determined based on the initial measurement attribute, risk characteristics monitoring and determining credit risk. The following describe the risk characteristics relevant to each Commercial and industrial (“C&I”) — includes loans to finance business operations, equipment purchases, for small and medium-sized commercial customers. Also production. borrower. for payroll and other permitted purposes in accordance with Company has 265 19.0 Construction and land development (“C&D”) — includes both loans and credit lines for the purpose of purchasing, carrying and developing land into commercial developments or for construction of residential, multi-family and commercial buildings. dependent upon the sale or refinance of the real estate collateral. Commercial real estate includes loans disaggregated into three classes: (1) owner occupied and (3) other. – includes loans for hotels and motels. Residential real estate (“RRE”) — includes loans disaggregated into two classes: (1) consumer mortgage investment property. Consumer installment — includes loans to individuals both secured by personal property personal lines of credit, automobile loans, and other retail loans. Bank’s general loan policies and financial condition, satisfactory credit history, The following is a summary of current, accruing past due and and 2019. Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (In thousands) Current Past Due 90 days Loans Accrual Loans December 31, 2020: Commercial and industrial $ 82,355 230 — 82,585 — $ 82,585 Construction and land development 33,453 61 — 33,514 — 33,514 Commercial real estate: Owner occupied 54,033 — — 54,033 — 54,033 Hotel/motel 42,900 — — 42,900 — 42,900 Multifamily 40,203 — — 40,203 — 40,203 Other 117,759 29 — 117,788 212 118,000 Total commercial real estate 254,895 29 — 254,924 212 255,136 Residential real estate: Consumer mortgage 33,169 1,503 140 34,812 215 35,027 Investment property 49,014 6 — 49,020 107 49,127 Total residential real estate 82,183 1,509 140 83,832 322 84,154 Consumer installment 7,069 29 1 7,099 — 7,099 Total $ 459,955 1,858 141 461,954 534 $ 462,488 December 31, 2019: Commercial and industrial $ 56,758 24 — 56,782 — $ 56,782 Construction and land development 32,385 456 — 32,841 — 32,841 Commercial real estate: Owner occupied 48,860 — — 48,860 — 48,860 Hotel/motel 43,719 — — 43,719 — 43,719 Multifamily 44,839 — — 44,839 — 44,839 Other 132,900 — — 132,900 — 132,900 Total commercial real estate 270,318 — — 270,318 — 270,318 Residential real estate: Consumer mortgage 47,151 1,585 — 48,736 187 48,923 Investment property 43,629 23 — 43,652 — 43,652 Total residential real estate 90,780 1,608 — 92,388 187 92,575 Consumer installment 8,802 64 — 8,866 — 8,866 Total $ 459,043 2,152 — 461,195 187 $ 461,382 The gross interest income which would have been recorded been accruing interest, amounted to approximately $ 20 9 and 2019, respectively. Allowance for Loan Losses The allowance for loan losses as of and for the years ended December Year ended December 31 (In thousands) 2020 2019 Beginning balance $ 4,386 $ 4,790 Charged-off loans (45) (408) Recovery of previously charged-off loans 177 254 Net recoveries (charge-offs) 132 (154) Provision for loan losses 1,100 (250) Ending balance $ 5,618 $ 4,386 The Company assesses the adequacy of its allowance for loan the allowance is based upon management’s trends, known and inherent risks in the portfolio, adverse situations the timing of future payment), the estimated value of any underlying conditions, industry and peer bank loan loss rates and other pertinent evaluation is inherently subjective as it requires material estimates including expected to be received on impaired loans that may be susceptible in part, when management believes that the full collectability of the after a “confirming event” has occurred which serves to validate unlikely. The Company deems loans impaired when, based on current information be unable to collect all amounts due according to the contractual according to the contractual terms means that both the interest scheduled in the loan agreement. An impairment allowance is recognized if the fair value of the impairment is recognized through the allowance. Loans that are future cash flows discounted at the loan’s measurement is The level of allowance maintained is believed by management to portfolio at the balance sheet date. The allowance is increased offs, net of recoveries of amounts previously charged In assessing the adequacy of the allowance, the Company also loan review process. The Company’s whose credit quality has weakened over time and evaluating the risk characteristics Company’s loan review process includes reviews that may have been conducted by bank regulatory agencies incorporates loan review results in the determination of whether amounts due according to the contractual terms of a loan. As part of the Company’s quarterly assessment commercial and industrial, construction and land development, commercial installment loans. The Company analyzes each segment and The allocation of the allowance for loan losses begins with a types of loans. The estimates for these loans are established by category credit risk ratings and historical loss data. The estimated loan loss allocation credit risk grades is based on its experience with similarly graded does not have sufficient historical loss data, the Company groups. At December 31, 2020 and 2019, and for the years then ended, commercial real estate portfolio segment based, in part, on loss rates of peer The estimated loan loss allocation for all five loan portfolio segments probable losses for several “qualitative and environmental” factors. is particularly subjective and does not lend itself to exact mathematical probable inherent credit losses which exist, but have not yet been upon quarterly trend assessments in delinquent and nonaccrual conditions, changes in lending personnel experience, changes factors. These qualitative and environmental factors are considered allocation, as determined by the processes noted above, is increased these factors. The Company regularly re-evaluates its practices in determining the 2016, the Company has increased its look-back period each quarter downturn in its loss history. The inherent in the loan portfolio. Absent this extension, the early losses would be excluded from the determination of the allowance for year ended December 31, 2020, the Company increased its look incurred by the Company beginning with the first quarter of 2009. back period to incorporate the effects of at least one adjusted certain qualitative and economic factors related to changes in COVID-19 pandemic and resulting adverse economic conditions, area. The following table details the changes in the allowance for loan 31, 2020 and 2019. (in thousands) Commercial and industrial Construction and land Development Commercial Real Estate Residential Real Estate Consumer Installment Total Balance, December 31, 2018 $ 778 700 2,218 946 148 $ 4,790 Charge-offs (364) — — (6) (38) (408) Recoveries 117 — 1 109 27 254 Net (charge-offs) recoveries (247) — 1 103 (11) (154) Provision 46 (131) 70 (236) 1 (250) Balance, December 31, 2019 $ 577 569 2,289 813 138 $ 4,386 Charge-offs (7) — — — (38) (45) Recoveries 94 — — 63 20 177 Net recoveries (charge-offs) 87 — — 63 (18) 132 Provision 143 25 880 68 (16) 1,100 Balance, December 31, 2020 $ 807 594 3,169 944 104 $ 5,618 The following table presents an analysis of the allowance for segment and impairment methodology as of December 31, 2020 Collectively evaluated (1) Individually evaluated (2) Total Allowance Recorded Allowance Recorded Allowance Recorded for loan investment for loan investment for loan investment (In thousands) losses in loans losses in loans losses in loans December 31, 2020: Commercial and industrial $ 807 82,585 — — 807 82,585 Construction and land development 594 33,514 — — 594 33,514 Commercial real estate 3,169 254,920 — 216 3,169 255,136 Residential real estate 944 84,047 — 107 944 84,154 Consumer installment 104 7,099 — — 104 7,099 Total $ 5,618 462,165 — 323 5,618 462,488 December 31, 2019: Commercial and industrial $ 577 56,683 — 99 577 56,782 Construction and land development 569 32,841 — — 569 32,841 Commercial real estate 2,289 270,318 — — 2,289 270,318 Residential real estate 813 92,575 — — 813 92,575 Consumer installment 138 8,866 — — 138 8,866 Total $ 4,386 461,283 — 99 4,386 461,382 (1) Represents loans collectively evaluated for impairment in accordance Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans. (2) Represents loans individually evaluated for impairment in accordance Receivables (formerly Credit Quality Indicators The credit quality of the loan portfolio is summarized no less frequently standard asset classification system used by the federal banking agencies. indicators for the loan portfolio segments and classes. These loan losses using historical losses adjusted for qualitative and ● Pass – loans which are well protected by the current net worth any) or by the fair value, less cost to acquire and sell, of any underlying ● Special Mention – loans with potential weakness that may, inadequately protect the Company’s not expose an institution to sufficient risk to warrant an ● Substandard Accruing – loans that exhibit a well-defined weakness which even though they are currently performing. These loans are characterized Company may incur a loss in the future if these weaknesses are ● Nonaccrual – includes loans where management has determined doubt. (In thousands) Mention Substandard Accruing Nonaccrual Total loans December 31, 2020 Commercial and industrial $ 79,984 2,383 218 — $ 82,585 Construction and land development 33,260 — 254 — 33,514 Commercial real estate: Owner occupied 51,265 2,627 141 — 54,033 Hotel/motel 35,084 7,816 — — 42,900 Multifamily 36,673 3,530 — — 40,203 Other 116,498 1,243 47 212 118,000 Total commercial real estate 239,520 15,216 188 212 255,136 Residential real estate: Consumer mortgage 32,518 397 1,897 215 35,027 Investment property 48,501 187 332 107 49,127 Total residential real estate 81,019 584 2,229 322 84,154 Consumer installment 7,069 7 23 — 7,099 Total $ 440,852 18,190 2,912 534 $ 462,488 December 31, 2019 Commercial and industrial $ 54,340 2,176 266 — $ 56,782 Construction and land development 31,798 — 1,043 — 32,841 Commercial real estate: Owner occupied 47,865 917 78 — 48,860 Hotel/motel 43,719 — — — 43,719 Multifamily 44,839 — — — 44,839 Other 132,030 849 21 — 132,900 Total commercial real estate 268,453 1,766 99 — 270,318 Residential real estate: Consumer mortgage 45,247 962 2,527 187 48,923 Investment property 42,331 949 372 — 43,652 Total residential real estate 87,578 1,911 2,899 187 92,575 Consumer installment 8,742 60 64 — 8,866 Total $ 450,911 5,913 4,371 187 $ 461,382 During the fourth quarter of 2019, the Company recognized a Guarantee Program (the “Program”) operated by the State of Company in October 2019 was recorded as a gain and included statements of earnings. Company received a guarantee of up to 50% of losses in the 5 outstanding totaling $ 10.3 Despite being enrolled in the Program, these loans would have met the origination. of the Program’s termination. Impaired loans The following table presents details related to the Company’s not appear in the following table. The related allowance generally to impaired loans: ● Individually evaluated impaired loans equal to or greater than $500 construction and land development, commercial real estate, and ● Individually evaluated impaired loans equal to or greater than $250 (nonaccrual commercial and industrial and consumer loans). The following table sets forth certain information regarding the for impairment at December 31, 2020 and 2019. December 31, 2020 (In thousands) Unpaid principal balance (1) Charge-offs and payments applied (2) Recorded investment (3) Related allowance With no allowance recorded: Commercial real estate: Other $ 216 (4) 212 $ — Total commercial real estate 216 (4) 212 — Residential real estate: Investment property 109 (2) 107 — Total residential real estate 109 (2) 107 — Total $ 325 (6) 319 $ — (1) Unpaid principal balance represents the contractual obligation due (2) Charge-offs and payments applied represents cumulative charge-offs taken, as well as interest payments applied against the outstanding principal balance. (3) Recorded investment represents the unpaid principal balance less December 31, 2019 (In thousands) Unpaid principal balance (1) Charge-offs and payments applied (2) Recorded investment (3) Related allowance With no allowance recorded: Commercial and industrial $ 335 (236) 99 $ — Total $ 335 (236) 99 $ — (1) Unpaid principal balance represents the contractual obligation due (2) Charge-offs and payments applied represents cumulative charge-offs taken, as well as interest payments applied against the outstanding principal balance. (3) Recorded investment represents the unpaid principal balance less The following table provides the average recorded investment in impaired recognized on impaired loans after impairment by portfolio segment Year ended December 31, 2020 Year ended December 31, 2019 Average Total interest Average Total interest recorded income recorded income (In thousands) investment recognized investment recognized Impaired loans: Commercial and industrial $ — — $ 8 — Commercial real estate: Owner occupied — — 24 9 Other 116 — — — Total commercial real estate 116 — 24 9 Residential real estate: Investment property 59 — — — Total residential real estate 59 — — — Total $ 175 — $ 32 9 Troubled Debt Impaired loans also include troubled debt restructurings (“TDRs”). From Troubled Debt Restructurings,” provides 340-10 TDR classifications for a limited period of time to account Statement on COVID-19 Loan Modifications, encourages banks agencies’ interpretation of how accounting rules under ASC certain COVID-19-related modifications. The Interagency Statement on June 23, 2020 by the Interagency Examiner Guidance for Assessing COVID-19 Pandemic on Institutions. section 4013 of the CARES Act. If a loan modification is not account for the loan modification under section 4013, the Revised Statement loan modification is not a TDR in accordance with ASC 310 The Company evaluates loan extensions or modifications not Interagency Statement on COVID-19 Loan Modifications in accordance classification of the loan as a TDR. are experiencing financial difficulty. principal and interest for a specified period, reduction of the stated extension of the maturity date, or reduction of the face amount or granted when, as a result of the restructuring, the Bank does not expect interest at the original stated rate. elsewhere at a market rate for debt with similar risk characteristics whether a loan modification is a TDR, the Company considers modification. in determining the appropriate accrual status at the time of restructure. Similar to other impaired loans, TDRs are measured for impairment the loan’s original effective collateral dependent. If the recorded investment in the loan exceeds establishing a valuation allowance as part of the allowance for In periods subsequent to the modification, all TDRs are evaluated for possible impairment. At December 31, 2019 the Company had no TDRs. related loan losses, by portfolio segment and class at December TDRs Related (In thousands) Accruing Nonaccrual Total Allowance December 31, 2020 Commercial real estate: Other $ — 212 212 — Total commercial real estate — 212 212 — Investment property — 107 107 — Total residential real estate — 107 107 — Total $ — 319 319 $ — At December 31, 2020, there were no significant outstanding commitments loans had been restructured. There were no loans modified in a TDR during the year ended modified in a TDR during the year ended December 31, Pre- Post- modification modification outstanding outstanding Number of recorded recorded ($ in thousands) contracts investment investment December 31, 2020 Commercial real estate: Other 1 $ 216 216 Total commercial real estate 1 216 216 Investment property 3 111 111 Total residential real estate 3 111 111 Total 4 $ 327 327 Four loans were modified in a TDR during the year ended December Company was related to a delay in the required payment of principal During the years ended December 31, 2020 and 2019, the previous 12 months for which there was a payment default |
Premises and Equipment |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Premises and Equipment [Abstract] | |
Premises and Equipment Text Block | NOTE 6: PREMISES AND EQUIPMENT Premises and equipment at December 31, 2020 December 31 (Dollars in thousands) 2020 2019 Land and improvements $ 9,829 9,874 Buildings and improvements 7,436 9,987 Furniture, fixtures, and equipment 2,715 3,109 Construction in progress 8,171 107 Total premises and equipment 28,151 23,077 Less: (5,958) (8,334) Premises and equipment, net $ 22,193 14,743 Depreciation expense was approximately $ 905 662 2019, respectively, and is a component |
Mortgage Servicing Rights, Net |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Mortgage Servicing [Abstract] | |
Transfers and Servicing of Financial Assets [Text Block] | NOTE 7: MORTGAGE SERVICING RIGHTS, MSRs are recognized based An estimate future net servicing account earnings, contractual Company has amortized in proportion related amortization expense and recognized in earnings as part The Company has recorded MSRs related to loans sold without conforming, fixed-rate, closed-end, residential mortgages to Fannie accompanying consolidated balance sheets. The Company evaluates MSRs for impairment on a quarterly basis. groupings based on predominant risk characteristics, such as interest carrying amount of the MSRs exceeds fair value, a valuation as the fair value changes. lending income. The following table details the changes in amortized MSRs and December 31, 2020 and 2019. Year ended December 31 (Dollars in thousands) 2020 2019 Beginning balance $ 1,299 1,441 Additions, net 671 241 Amortization expense (640) (383) Ending balance $ 1,330 1,299 Valuation Beginning of period $ — — End of period — — Fair value of amortized MSRs: Beginning of period $ 2,111 2,697 End of period 1,489 2,111 Data and assumptions used in the fair value calculation related presented below. December 31 (Dollars in thousands) 2020 2019 Unpaid principal balance $ 265,964 274,227 Weighted average prepayment 20.7 % 11.6 Discount rate (annual percentage) 10.0 % 10.0 Weighted average coupon 3.6 % 3.9 Weighted average remaining 253 255 Weighted average servicing 25.0 25.0 At December 31, 2020, the weighted average amortization period 3.7 for each of the next five years is presented below. (Dollars in thousands) December 31, 2020 2021 $ 308 2022 227 2023 170 2024 129 2025 101 |
Deposits |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Deposits: | |
Deposits Text Block | NOTE 8: At December 31, 2020, the scheduled maturities of certificates (Dollars in thousands) December 31, 2020 2021 $ 88,292 2022 50,332 2023 12,572 2024 5,842 2025 3,363 Thereafter — Total certificates of deposit $ 160,401 Additionally, at December 55.0 57.4 of deposit and other time deposits were issued in denominations At December 31, 2020 and 2019, the amount of deposit accounts in accompanying consolidated balance sheets was not material. |
Short-term Borrowings |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Short-term Debt: | |
Short-term Debt Text Block | NOTE 9: At December 31, 2020 and 2019, the composition of short-term borrowings 2020 2019 Weighted Weighted (Dollars in thousands) Amount Avg. Rate Amount Avg. Rate Federal funds purchased: As of December 31 $ — — $ — — Average during the year 1 0.78 % 1 2.58 % Maximum outstanding at — — Securities sold under As of December 31 $ 2,392 0.50 % $ 1,069 0.50 % Average during the year 1,822 0.50 % 1,442 0.50 % Maximum outstanding at 2,496 2,261 Federal funds purchased represent unsecured overnight borrowings had available federal fund lines totaling $ 41 .0 million with none outstanding at December 31, 2020. Securities sold under agreements to repurchase represent short collateralized by a portion of the Company’s 5.7 million and $ 2.6 agreements to repurchase. |
Lease Commitment |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee Operating Leases [Text Block] | NOTE 10: LEASE COMMITMENTS We lease certain 0.2 million for both the years ended December 31, 2020 and 2019. which required the recognition of certain operating leases on our component of other assets) and related lease liabilities (reported Aggregate lease right of use assets were $ 788 785 Aggregate lease liabilities were $ 811 788 expense includes amounts related to items that are not included expenses related to short-term leases totaling $ 0.1 Lease payments under operating leases that were applied to 112 year ended December 31, 2020. The following table reconciles cancelable operating leases (those amounts subject to recognition) to 31, 2020. Future lease (Dollars in thousands) payments 2021 $ 127 2022 120 2023 120 2024 120 2025 111 Thereafter 300 Total undiscounted operating $ 898 Imputed interest 87 Total operating lease liabilities $ 811 Weighted-average 7.68 Weighted-average 3.02 % |
Other Comprehensive Income |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Other Comprehensive Income Loss [Abstract] | |
Other Comprehensive Income (Loss) [Text Block] | NOTE 11: Comprehensive income includes net December 31, 2020 and 2019, is presented below. Pre-tax Tax benefit Net of (Dollars in thousands) amount (expense) tax amount 2020: Unrealized net holding gain on securities $ 7,501 (1,884) 5,617 Reclassification adjustment for net gain on securities recognized (103) 26 (77) Other comprehensive income $ 7,398 (1,858) 5,540 2019: Unrealized net holding gain on securities $ 7,651 (1,921) 5,730 Reclassification adjustment for net loss on securities recognized 123 (31) 92 Other comprehensive loss $ 7,774 (1,952) 5,822 |
Income Taxes |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Income Taxes | |
Income Taxes Text Block | NOTE 12: For the years ended December 31, 2020 and 2019 the components presented below. Year ended December 31 (Dollars in thousands) 2020 2019 Current income tax expense: Federal $ 1,459 1,939 State 476 584 Total current income tax expense 1,935 2,523 Deferred income tax benefit: Federal (262) (136) State (68) (17) Total deferred (330) (153) Total income tax expense $ 1,605 2,370 Total income tax expense earnings before income taxes. presented below. 2020 2019 Percent of Percent of pre-tax pre-tax (Dollars in thousands) Amount earnings Amount earnings Earnings before income taxes $ 9,059 12,111 Income taxes at statutory rate 1,902 21.0 % 2,543 21.0 % Tax-exempt interest (489) (5.4) (508) (4.1) State income taxes, net of federal tax effect 345 3.8 440 3.6 Bank-owned life insurance (152) (1.7) (92) (0.8) Other (1) — (13) (0.1) Total income tax expense $ 1,605 17.7 % 2,370 19.6 % The Company had a net deferred tax liability of $1.5 consolidated balance sheets at December 31, 2020 give rise to significant portions of the deferred tax assets and presented below. December 31 (Dollars in thousands) 2020 2019 Deferred tax assets: Allowance for loan losses $ 1,411 1,102 Accrued bonus 183 296 Right of use liability 204 198 Other 91 88 Total deferred 1,889 1,684 Deferred tax liabilities: Premises and equipment 199 315 Unrealized gain on securities 2,548 690 Originated mortgage servicing rights 334 326 Right of use asset 198 197 Other 147 165 Total deferred 3,426 1,693 Net deferred tax liability $ (1,537) (9) A valuation allowance is recognized for a deferred tax asset if, based than-not that some portion of the entire deferred tax asset will not be assets is dependent upon the generation of future taxable income during become deductible. income and tax planning strategies in making this assessment. projection for future taxable income over the periods which the tax assets are deductible, management believes it is more-likely deductible differences at December 31, be reduced in the near term if estimates of future taxable income are The change in the net deferred tax asset for the years ended December Year ended December 31 (Dollars in thousands) 2020 2019 Net deferred tax (liability) asset: Balance, beginning of year $ (9) 1,790 Deferred tax benefit (expense) related to continuing operations 330 153 Stockholders' equity, for (1,858) (1,952) Balance, end of year $ (1,537) (9) ASC 740, Income Taxes, as “more-likely-than-not” to be sustained by the taxing authority. recognition, measurement, and classification of income tax uncertainties Company had no unrecognized tax benefits related to federal or any material increase or decrease in unrecognized tax benefits during December 31, 2020. tax positions. expense. The Company and its subsidiaries file consolidated U.S. federal currently open to audit under the statute of limitations by the Internal Revenue years ended December 31, 2017 through 2020. |
Employee Benefits |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | NOTE 13: The Company sponsors a qualified defined contribution retirement Plan (the "Plan"). completion of 2 months of service. immediately vested in employer Safe Harbor contributions. T participants were equal to $1.00 for each $1.00 contributed compensation, and $0.50 for every $1.00 contributed by participants, for a maximum matching contribution of 4% of the participants' eligible the Plan were $ 304 264 included in salaries and benefits expense. |
Commitments and Contigent Liabilities |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies Disclosure [Text Block] | NOTE 14: Credit-Related Financial Instruments The Company is party to credit related financial instruments with meet the financing needs of its customers. letters of credit. amount recognized in the consolidated balance sheets. The Company’s exposure to follows the same credit policies in making commitments as it At December 31, 2020 and 2019, the following financial instruments credit risk. December 31 (Dollars in thousands) 2020 2019 Commitments to extend credit $ 74,970 $ 60,564 Standby letters of credit 1,237 1,921 Commitments to extend credit are agreements to lend to a customer established in the agreement. require payment of a fee. commitment amounts do not necessarily represent future cash deemed necessary by the Company, Standby letters of credit are conditional commitments issued by to a third party. facilities to customers. equipment, marketable securities, and property to support The Company has recorded a liability for the estimated fair 25 thousand and $ 39 Other Commitments At December 31, 2020, the Company has a contract with a construction 25.3 headquarters in Auburn, Alabama. Contingent Liabilities The Company and the Bank are involved in various legal proceedings, opinion of management, based upon consultation with legal counsel, have a material adverse effect upon the consolidated Bank. |
Fair Value Disclosures |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value Disclosures Text Block | NOTE 15: FAIR VALUE Fair Value “Fair value” is defined by ASC 820, Fair Value , as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction occurring market in the absence of a principal market) for an asset or value hierarchy for valuation inputs that gives the highest priority to liabilities and the lowest priority to unobservable inputs. Level 1—inputs to the valuation methodology are quoted prices, unadjusted, markets. Level 2—inputs to the valuation methodology include quoted quoted prices for identical or similar assets or liabilities in markets asset or liability, either directly Level 3—inputs to the valuation methodology are unobservable inputs market participants would use in pricing the asset or liability. Level changes in fair value measurements Transfers between levels of the fair value hierarchy Company monitors the valuation techniques utilized for each transfers between levels have been affected. that transfers in and out of any level are expected to be infrequent. were no transfers between levels and no changes in valuation techniques Assets and liabilities measured at fair value Securities available-for-sale Fair values of securities available for sale were primarily measured obtains pricing from third party pricing services. include broker/dealer quotes, market spreads, cash flows, market consensus trades for similar securities, credit information and the securities’ terms reviews the pricing received from the third party pricing services part of its review, management In addition, management will periodically submit pricing provided independent valuation firm on a sample basis. third-party pricing service with its own price and will review the significant with management. The following table presents the balances of the assets and liabilities 31, 2020 and 2019, respectively, hierarchy (as described above). Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) December 31, 2020: Securities available-for-sale: Agency obligations $ 97,448 — 97,448 — Agency MBS 163,470 — 163,470 — State and political subdivisions 74,259 — 74,259 — Total securities available 335,177 — 335,177 — Total $ 335,177 — 335,177 — December 31, 2019: Securities available-for-sale: Agency obligations $ 50,708 — 50,708 — Agency MBS 123,277 — 123,277 — State and political subdivisions 61,917 — 61,917 — Total securities available 235,902 — 235,902 — Total $ 235,902 — 235,902 — Assets and liabilities measured at fair value Loans held for sale Loans held for sale are carried at the lower of cost or fair value. quoted market secondary market prices for similar loans. hierarchy. Impaired Loans Loans considered impaired under ASC 310-10-35, Receivables , are loans for which, based on current information events, it is probable that the Company will be unable to collect the contractual terms of the loan agreement. payments using the loan’s original the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans were primarily measured based on Impaired loans are classified within Level 3 of the fair value including equipment, inventory, independent appraisals performed by qualified licensed appraisers. approach or a combination of approaches including comparable discounted for costs to sell and may be discounted further based on conditions from the date of the most recent appraisal, and/or the customer’s business. for determining fair value. impairment and adjusted accordingly, Mortgage servicing rights, net Mortgage servicing rights, net, included in other assets on the accompanying lower of cost or estimated fair value. the fair value of MSRs, the Company engages an independent calculates the present value of estimated future net servicing in estimating future net servicing income, including estimates of prepayment service, escrow account earnings, contractual servicing fee income, Company will review broker surveys and other market research significant unobservable inputs include prepayment speeds or average discount rate. Company’s MSRs are classified The following table presents the balances of the assets and liabilities December 31, 2020 and valuation hierarchy (as described above): Quoted Prices in Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) December 31, 2020: Loans held for sale $ 3,418 — 3,418 — Loans, net (1) 319 — — 319 Other assets (2) 1,330 — — 1,330 Total assets at fair value $ 5,067 — 3,418 1,649 December 31, 2019: Loans held for sale $ 2,202 — 2,202 — Loans, net (1) 99 — — 99 Other assets (2) 1,299 — — 1,299 Total assets at fair value $ 3,600 — 2,202 1,398 (1) Loans considered impaired under ASC 310-10-35 Receivables. impaired loans, net of any related allowance for loan losses. (2) Represents MSRs, net carried at lower of cost or estimated fair value. At December 31, 2020 and 2019 and for the years then ended, a recurring basis. significant unobservable inputs used in the fair value measurements Weighted Carrying Significant Average (Dollars in thousands) Amount Valuation Technique Range of Input December 31, 2020: Impaired loans $ 319 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 1,330 Discounted cash flow Prepayment speed or CPR 18.2 - 36.4 % 20.7 % Discount rate 10.0 - 12.0 % 10.0 % December 31, 2019: Impaired loans $ 99 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 1,299 Discounted cash flow Prepayment speed or CPR 11.2 - 22.4 % 11.6 % Discount rate 10.0 - 12.0 % 10.0 % Fair Value ASC 825, Financial Instruments , requires disclosure of fair value information about financial recognized on the face of the balance sheet, for which it is practicable estimation of the fair value of the Company’s not available, fair values are based on estimates using discounted significantly affected by the assumptions used, following fair value estimates cannot be substantiated by comparison representative of the liquidation value of the Company’s fair value of financial instruments held by the Company. nonfinancial instruments from its disclosure requirements. The following methods and assumptions were used by the Company in Loans, net Fair values for loans were calculated using discounted cash flows. The loans would be made for the same remaining maturities. Expected cash flows, adjusted for estimated prepayments. Loans held for sale Fair values of loans held for sale are determined using quoted Time Deposits Fair values for time deposits were estimated using discounted offered for deposits with similar remaining maturities. Fair Value Hierarchy Carrying Estimated Level 1 Level 2 Level 3 (Dollars in thousands) amount fair value inputs inputs Inputs December 31, 2020: Financial Assets: Loans, net (1) $ 456,082 $ 451,816 $ — $ — $ 451,816 Loans held for sale 3,418 3,509 — 3,509 — Financial Liabilities: Time Deposits $ 160,401 $ 162,025 $ — $ 162,025 $ — December 31, 2019: Financial Assets: Loans, net (1) $ 456,515 $ 453,705 $ — $ — $ 453,705 Loans held for sale 2,202 2,251 — 2,251 — Financial Liabilities: Time Deposits $ 167,199 $ 168,316 $ — $ 168,316 $ — (1) Represents loans, net of unearned income and the allowance |
Related Party Transactions |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related Party Transactions Disclosure [Text Block] | NOTE 16: The Bank has made, and expects in the future to continue to make executive officers of the Company, ordinary course of business at normal credit terms, including more than normal credit risk. (Dollars in thousands) Amount Loans outstanding at December 31, 2019 $ 3,149 New loans/advances 871 Repayments (2,433) Changes in directors and executive officers (351) Loans outstanding at December 31, 2020 $ 1,236 During 2020 and 2019, certain executive officers and which they are affiliated, were deposit customers of 2019 amounted to $ 18.7 19.1 |
Regulatory Restrictions and Capital Ratios |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital Requirements under Banking Regulations [Text Block] | NOTE 17: REGULATORY As required by the Economic Growth, Regulatory Relief, and Consumer Reserve Board issued an interim final rule that expanded applicability statement. The interim final rule raised the policy statement’s consolidated assets for a bank holding company or savings and nonbanking activities; (2) does not conduct significant off of debt or equity securities, other than trust-preferred securities, warranted for supervisory purposes, the Federal Reserve may exclude believes the Company meets the conditions of the Federal Reserve’s therefore excluded from consolidated capital requirements at The Bank remains subject to regulatory capital requirements minimum capital requirements can initiate certain mandatory that, if undertaken, could have a direct material effect guidelines and the regulatory framework for prompt corrective action, involve quantitative measures of their assets, liabilities and certain accounting practices. The capital amounts and classification are about components, risk weightings and other factors. As of December 31, 2020, the Bank is “well capitalized” under be categorized as “well capitalized,” the Bank must maintain minimum based, and Tier 1 leverage ratios as set forth regulators that changes the Bank’s The actual capital amounts and ratios for the Bank and the aforementioned are presented below. Minimum for capital Minimum to be Actual adequacy purposes well capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio At December 31, 2020: Tier 1 Leverage Capital $ 96,096 10.32 % $ 37,263 4.00 % $ 46,579 5.00 % Common Equity Tier 1 Capital 96,096 17.27 25,042 4.50 36,171 6.50 Tier 1 Risk-Based Capital 96,096 17.27 33,389 6.00 44,519 8.00 Total Risk-Based Capital 101,906 18.31 44,519 8.00 55,648 10.00 At December 31, 2019: Tier 1 Leverage Capital $ 92,778 11.23 % $ 33,043 4.00 % $ 41,303 5.00 % Common Equity Tier 1 Capital 92,778 17.28 24,162 4.50 34,901 6.50 Tier 1 Risk-Based Capital 92,778 17.28 32,216 6.00 42,955 8.00 Total Risk-Based Capital 97,291 18.12 42,955 8.00 53,693 10.00 Dividends paid by the Bank are a principal source of funds available stockholders and for other needs. Applicable federal and state dividends that may be declared by the subsidiary bank. State declaring dividends in excess of the sum of the current year’s two years without prior approval. In addition to the formal statutes adequacy of the Bank’s total capital could further limit the availability of dividends from the Bank. At additional dividends of approximately $ 6.8 limitation, approximately $ 96.9 of dividends. |
Auburn National Bancorporation - Parent Company Financials |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Financial Information of Parent Company Only Disclosure [Text Block] | NOTE 18: AUBURN NATIONAL The Parent Company’s condensed follows. CONDENSED BALANCE SHEETS December 31 (Dollars in thousands) 2020 2019 Assets: Cash and due from banks $ 4,049 4,119 Investment in bank subsidiary 103,695 94,837 Other assets 631 625 Total assets $ 108,375 99,581 Liabilities: Accrued expenses and other liabilities $ 685 1,253 Total liabilities 685 1,253 Stockholders' equity 107,690 98,328 Total liabilities and $ 108,375 99,581 CONDENSED STATEMENTS Year ended December 31 (Dollars in thousands) 2020 2019 Income: Dividends from bank subsidiary $ 3,638 8,574 Noninterest income 862 346 Total income 4,500 8,920 Expense: Noninterest expense 255 212 Total expense 255 212 Earnings before income tax expense and equity in undistributed earnings of bank subsidiary 4,245 8,708 Income tax expense 110 26 Earnings before equity in undistributed earnings of bank subsidiary 4,135 8,682 Equity in undistributed earnings of bank subsidiary 3,319 1,059 Net earnings $ 7,454 9,741 CONDENSED STATEMENTS Year ended December 31 (Dollars in thousands) 2020 2019 Cash flows from operating activities: Net earnings $ 7,454 9,741 Adjustments to reconcile net earnings to net cash provided by operating activities: Net (increase) decrease in other assets (6) 7 Net decrease in other liabilities (561) (215) Equity in undistributed earnings of bank subsidiary (3,319) (1,059) Net cash provided by operating activities 3,568 8,474 Cash flows from financing activities: Dividends paid (3,638) (3,575) Stock repurchases — (2,721) Net cash used in financing activities (3,638) (6,296) Net change in cash and cash equivalents (70) 2,178 Cash and cash equivalents at beginning of period 4,119 1,941 Cash and cash equivalents at end of period $ 4,049 4,119 |
Summary of Significant Accounting Policies (Policies) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Summary of Signficant Accounting Policies | |
Nature of Business Policy | Nature of Business Auburn National Bancorporation, Inc. (the “Company”) is a bank holding by its wholly-owned subsidiary, Alabama. The Bank provides a full range of banking services in its Auburn-Opelika Metropolitan Statistical Area. |
Basis of Presentation Policy | Basis of Presentation The consolidated financial statements include the accounts of intercompany transactions and accounts are eliminated in consolidation. COVID-19 Uncertainty COVID-19 has adversely affected, and may continue to Following the COVID-19 outbreak in December 2019 and January federal banking agencies encouraged financial institutions to provide relief from reporting loan classifications due to modifications COVID-19 has caused us to modify our business practices, including cancellation of physical participation in meetings, events and situation precludes any predication as to the ultimate impact presents uncertainty and risk with respect to the Company, |
Revenue Recognition Policy | Revenue Recognition On January 1, 2018, the Company implemented ASU 2014 , codified at Company’s revenue stream is generated 606. The Company’s sources of income that services, interchange fees and gains and losses on sales of other noninterest income. The following is a summary of the revenue streams Service charges on deposits, investment services, ATM transaction-based, for which the performance obligations are satisfied periodic service charges, for which the performance obligations Transaction-based fees are recognized at the time over the service period. Gains on sales of other real estate A gain on sale should be recognized when a contract for sale exists and asset has been transferred to the buyer. including a determination that the institution will collect substantially addition to the loan-to-value, the analysis is based on various other structure of the loan, and any other factors that may affect |
Use of Estimates Policy | Use of Estimates The preparation of financial statements in conformity with U.S. management to make estimates and assumptions that affect of contingent assets and liabilities as of the balance sheet date reporting period. Actual results could differ from those significant change in the near term include the determination valuation of other real estate owned, and valuation of deferred |
Change in Accounting Estimate | Change in Accounting Estimate During the fourth quarter of 2019, the Company reassessed its estimate Company revised its original useful life estimate for certain land improvements, fixtures and equipment, with a carrying value of $ 0.5 demolition dates planned as part of the redevelopment project accounting estimate, per ASC 250-10, where adjustments should accounting estimate on the 2020 and 2019 consolidated $ 342 0.10 161 0.04 |
Reclassifications Policy | Reclassifications Certain amounts reported in the prior period have been reclassified reclassifications had no impact on the Company’s |
Accounting Standards Adopted in 2019 | Accounting In 2020, the Company adopted new guidance related to the following ● ASU 2018-13, Fair Value Requirements for Fair Value ; and ● ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software Accounting for Implementation Costs Incurred Information about these pronouncements is described in more ASU 2018-13, Fair Value Fair Value improves the disclosure requirements on fair value measurements requirements to disclose (i) the amount of and reasons for transfers (ii) the policy for timing of transfers between levels; and (iii) This ASU also added specific disclosure requirements for fair requirement to disclose the changes in unrealized gains and for recurring Level 3 fair value measurements and the range and to develop Level 3 fair value measurements. The amendments in this ASU are effective for all interim periods within those fiscal years. Early adoption was permitted early adopt amendments that remove or modify disclosures and effective date. The Company adopted this ASU on January impact on the Company’s consolidated ASU 2018-15, Intangibles – Goodwill and Other – Internal Use Software Implementation Costs Incurred in aligns the requirements for capitalizing implementation costs incurred in a hosting arrangement that capitalizing implementation costs incurred to develop or include internal-use software license). This ASU requires entities to Goodwill and Other - Internal Use Software, to determine whether the service contract. This ASU also requires entities to (i) expense capitalized arrangement that is a service contract over the term of the hosting capitalized implementation costs in the same line item on the of the arrangement; (iii) classify payments for capitalized implementation manner as payments made for fees associated with the hosting costs in the same balance sheet line item that a prepayment for presented. The amendments in this ASU are effective for fiscal years those fiscal years. Early adoption was permitted. The Company adopted guidance did not have a material impact on the Company’s Cash Equivalents Cash equivalents include cash on hand, cash items in process bearing deposits with other banks, and federal funds sold. Securities Securities are classified based on management’s Company’s securities were classified interest rate risk management strategy, risks or other factors. All securities classified as available-for-sale losses reported in accumulated other comprehensive income dividends on securities, including the amortization of premiums and income using the effective interest method. over the estimated life of the security. specific identification method. On a quarterly basis, management makes an assessment to determine circumstances to indicate that a security on which there is an For debt securities with an unrealized loss, an other-than Company has the intent to sell a debt security, debt security before recovery of its amortized cost basis, or cost basis of the debt security. be required to sell the debt security before recovery, between the debt security’s amortized more likely than not that it will be required to sell the security down is separated into the amount that is credit related (credit loss component) credit loss component is recognized in earnings, as a realized the security’s amortized cost basis and between the security’s fair value and related and is recognized in other comprehensive income, net Loans held for sale Loans originated and intended for sale in the secondary market are aggregate. Continuing involvement, through the sales agreement, consists of the loan, if applicable. reflected as a component of mortgage lending income in the consolidated |
Cash Equivalents Policy | Cash Equivalents Cash equivalents include cash on hand, cash items in process bearing deposits with other banks, and federal funds sold. |
Marketable Securities, Policy | Securities Securities are classified based on management’s Company’s securities were classified interest rate risk management strategy, risks or other factors. All securities classified as available-for-sale losses reported in accumulated other comprehensive income dividends on securities, including the amortization of premiums and income using the effective interest method. over the estimated life of the security. specific identification method. On a quarterly basis, management makes an assessment to determine circumstances to indicate that a security on which there is an For debt securities with an unrealized loss, an other-than Company has the intent to sell a debt security, debt security before recovery of its amortized cost basis, or cost basis of the debt security. be required to sell the debt security before recovery, between the debt security’s amortized more likely than not that it will be required to sell the security down is separated into the amount that is credit related (credit loss component) credit loss component is recognized in earnings, as a realized the security’s amortized cost basis and between the security’s fair value and related and is recognized in other comprehensive income, net |
Loans Held for Sale Policy | Loans held for sale Loans originated and intended for sale in the secondary market are aggregate. Continuing involvement, through the sales agreement, consists of the loan, if applicable. reflected as a component of mortgage lending income in the consolidated In the course of conducting the Bank’s the secondary market, the Bank makes various representations and Every loan closed by the Bank’s Any exceptions noted during this process are remedied prior to underwriting the real estate appraisal opinion of value for the comply with the underwriting and/or appraisal standards could mortgage loan or to reimburse the investor for losses incurred Company within the specified period following discovery. Loans Loans are reported at their outstanding principal balances, net or costs on originated loans. Loan origination fees, net of certain loan origination costs, are deferred and recognized using the effective interest method. Loan commitment fees over the commitment period, which results in a recorded The accrual of interest on loans is discontinued when there is borrower and full repayment of principal and interest is not expected due, unless the loan is both well-collateralized and in the process collected for loans that are placed on nonaccrual status is reversed nonaccrual loans are generally applied as principal reductions. loan based on contractual payment terms. A loan is considered impaired when it is probable the Company due according to the contractual terms of the loan agreement. the present value of expected payments using the loan’s market price, or the fair value of the collateral if the loan is collateral loan exceeds the measure of fair value, a valuation allowance may be Changes to the valuation allowance are recorded as Impaired loans also include troubled debt restructurings (“TD grant concessions to borrowers who are experiencing financial TDRs involve reductions or delays in required payments of principal payments in accordance with a bankruptcy plan or the charge the credit also warrant nonaccrual status, even after the restructuring restructured loans are evaluated for adequate collateral of restructuring. TDR loans may be returned to accrual status repayment performance by the borrower. The Company began offering short-term loan modifications modification meets certain conditions, the modification does not please refer to Note 5, Loans and Allowance for Loan Losses. Allowance for Loan Losses The allowance for loan losses is maintained at a level that manage inherent in the loan portfolio. Loan losses are charged are credited to the allowance. Management’s the portfolio, current economic conditions, growth, composition ratings of specific loans, historical loan loss factors, identified evaluation is performed quarterly and is inherently subjective, to significant change, including the amounts and timing of future cash In addition, regulatory agencies, as an integral part of their examination allowance for loan losses, and may require the Company to record information available to them at the time of their examinations. |
Loans Policy | Loans Loans are reported at their outstanding principal balances, net or costs on originated loans. Loan origination fees, net of certain loan origination costs, are deferred and recognized using the effective interest method. Loan commitment fees over the commitment period, which results in a recorded The accrual of interest on loans is discontinued when there is borrower and full repayment of principal and interest is not expected due, unless the loan is both well-collateralized and in the process collected for loans that are placed on nonaccrual status is reversed nonaccrual loans are generally applied as principal reductions. loan based on contractual payment terms. A loan is considered impaired when it is probable the Company due according to the contractual terms of the loan agreement. the present value of expected payments using the loan’s market price, or the fair value of the collateral if the loan is collateral loan exceeds the measure of fair value, a valuation allowance may be Changes to the valuation allowance are recorded as Impaired loans also include troubled debt restructurings (“TD grant concessions to borrowers who are experiencing financial TDRs involve reductions or delays in required payments of principal payments in accordance with a bankruptcy plan or the charge the credit also warrant nonaccrual status, even after the restructuring restructured loans are evaluated for adequate collateral of restructuring. TDR loans may be returned to accrual status repayment performance by the borrower. The Company began offering short-term loan modifications modification meets certain conditions, the modification does not please refer to Note 5, Loans and Allowance for Loan Losses. |
Loans, Origination Fees Policy | Loan origination fees, net of certain loan origination costs, are deferred and recognized using the effective interest method. Loan commitment fees over the commitment period, which results in a recorded |
Loans, Nonacrrual Policy | The accrual of interest on loans is discontinued when there is borrower and full repayment of principal and interest is not expected due, unless the loan is both well-collateralized and in the process collected for loans that are placed on nonaccrual status is reversed nonaccrual loans are generally applied as principal reductions. loan based on contractual payment terms. |
Loans, Impaired Policy | A loan is considered impaired when it is probable the Company due according to the contractual terms of the loan agreement. the present value of expected payments using the loan’s market price, or the fair value of the collateral if the loan is collateral loan exceeds the measure of fair value, a valuation allowance may be Changes to the valuation allowance are recorded as |
Loans, Troubled Debt Restructuring Policy | Impaired loans also include troubled debt restructurings (“TD grant concessions to borrowers who are experiencing financial TDRs involve reductions or delays in required payments of principal payments in accordance with a bankruptcy plan or the charge the credit also warrant nonaccrual status, even after the restructuring restructured loans are evaluated for adequate collateral of restructuring. TDR loans may be returned to accrual status repayment performance by the borrower. The Company began offering short-term loan modifications modification meets certain conditions, the modification does not please refer to Note 5, Loans and Allowance for Loan Losses. |
Allowance for Loan Losses Policy | Allowance for Loan Losses The allowance for loan losses is maintained at a level that manage inherent in the loan portfolio. Loan losses are charged are credited to the allowance. Management’s the portfolio, current economic conditions, growth, composition ratings of specific loans, historical loan loss factors, identified evaluation is performed quarterly and is inherently subjective, to significant change, including the amounts and timing of future cash In addition, regulatory agencies, as an integral part of their examination allowance for loan losses, and may require the Company to record information available to them at the time of their examinations. |
Premises and Equipment Policy | Premises and Equipment Land is carried at cost. Land improvements, buildings and improvements, at cost, less accumulated depreciation computed on a straight terms of the leases, if shorter. Expected reasonably assured. |
Nonmarketable Equity Investments Policy | Nonmarketable equity investments Nonmarketable equity investments include equity securities that are purposes. The Bank is required to maintain certain minimum levels entities in which the Bank has an ongoing business relationship regard to the relationship with the Federal Reserve Bank) or outstanding the Federal Home Loan Bank of Atlanta). These nonmarketable or redemption value. These securities do not have a readily determinable is no market for these securities. These securities can only be issuing government supported institution or to another member equity securities as a component of other assets, which are periodically these nonmarketable equity securities to be long-term investments. impairment, management considers the ultimate recoverability declines in value. |
Transfers and Servicing of Financial Assets, Policy | Transfers of Financial Transfers of an entire financial asset (i.e. loan financial asset (i.e. loan participations sold) are accounted for Control over transferred assets is deemed to be surrendered (2) the transferee obtains the right (free of conditions that constrain transferred assets, and (3) the Company does not maintain effective agreement to repurchase them before their maturity. |
Mortgage Servicing Rights Policy | Mortgage Servicing Rights The Company recognizes as assets the rights to service mortgage loans determines the fair value of MSRs at the date the loan is transferred. using assumptions that market participants would use in estimating prepayment speeds, discount rate, default rates, cost to service, ancillary income, and late fees. Subsequent to the date of transfer, the Company the amortization method, MSRs are amortized in proportion amortization of MSRs is analyzed monthly and is adjusted to reflect MSRs are evaluated for impairment based on the fair value of those into groupings based on predominant risk characteristics, such carrying amount of the MSRs exceeds fair value, a valuation valuation allowance is adjusted as the fair value changes. accompanying consolidated balance sheets. |
Securities Sold Under Agreements to Repurchase Policy | Securities sold under agreements to repurchase Securities sold under agreements to repurchase generally mature sold under agreements to repurchase are reflected as a secured at the amount of cash received in connection with each transaction. |
Income Taxes Policy | Income Taxes Deferred tax assets and liabilities are the expected future tax amounts amounts and tax bases of assets and liabilities, computed using enacted deferred tax assets to the amount expected to be realized. assets in the accompanying consolidated balance sheets. Income tax expense or benefit for the year is allocated among continuing (loss), as applicable. The amount allocated to continuing operations from continuing operations that occurred during the year, circumstances that cause a change in judgment about the realization income tax laws or rates, and (3) changes in income tax status, comprehensive income (loss) is related solely to changes in the valuation for in other comprehensive income (loss) such as unrealized |
Income Taxes, Uncertainties Policy | In accordance with ASC 740, Income Taxes , a tax position is recognized as a benefit only if it is “more likely than not” the tax position would be sustained in a tax examination, with a tax examination recognized is the largest amount of tax benefit that positions not meeting the “more likely than not” test, no tax benefit interest and penalties related to income tax matters in income file a consolidated income tax return. |
Fair Value Measurements Policy | Fair Value ASC 820, Fair Value which defines fair value, establishes a framework for measuring fair value generally accepted accounting principles and expands disclosures about fair-value measurements that are already required focuses on the exit price, i.e., the price transaction between market participants at the measurement date, acquire the asset or received to assume the liability at the measurement market-based measurement; not an entity-specific measurement. determined based on the assumptions that market participants information related to fair value measurements, please refer |
Subsequent Events Policy | Subsequent Events The Company has evaluated the effects of events subsequent to December 31, 2020. The Company does not believe require further recognition or disclosure. |
Basic and Diluted Earnings Per Share (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Basic and Diluted Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | Year ended December 31 (Dollars in thousands, except share and per share data) 2020 2019 Basic and diluted: Net earnings $ 7,454 $ 9,741 Weighted average common 3,566,207 3,581,476 Net earnings per share $ 2.09 $ 2.72 |
Securities (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Investments debt and equity securities [Abstract] | |
Available-for-sale Securities [Table Text Block] | 1 year 1 to 5 5 to 10 After 10 Fair Gross Unrealized Amortized (Dollars in thousands) or less years years years Value Gains Losses Cost December 31, 2020 Agency obligations (a) $ 5,048 24,834 55,367 12,199 97,448 3,156 98 $ 94,390 Agency MBS (a) — 1,154 20,502 141,814 163,470 3,245 133 160,358 State and political subdivisions 477 632 8,405 64,745 74,259 3,988 11 70,282 Total available-for-sale $ 5,525 26,620 84,274 218,758 335,177 10,389 242 $ 325,030 December 31, 2019 Agency obligations (a) $ 4,993 27,245 18,470 — 50,708 215 98 $ 50,591 Agency MBS (a) — 560 4,510 118,207 123,277 798 261 $ 122,740 State and political subdivisions — 1,355 6,166 54,396 61,917 2,104 9 $ 59,822 Total available-for-sale $ 4,993 29,160 29,146 172,603 235,902 3,117 368 $ 233,153 (a) Includes securities issued by U.S. government agencies or these securities may differ from contractual maturities because with or without prepayment penalties. |
Available-for-sale Securities, Continuous Unrealized Loss Position [Table Text Block] | Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Losses Value Losses Value Losses December 31, 2020: Agency obligations $ 15,416 98 — — 15,416 $ 98 Agency MBS 41,488 133 — — 41,488 133 State and political subdivisions 2,945 11 — — 2,945 11 Total $ 59,849 242 — — 59,849 $ 242 December 31, 2019: Agency obligations $ 24,734 97 4,993 1 29,727 $ 98 Agency MBS 40,126 98 21,477 163 61,603 261 State and political subdivisions 2,741 9 — — 2,741 9 Total $ 67,601 204 26,470 164 94,071 $ 368 |
Schedule of Realized Gain (Loss) [Table Text Block] | Realized Gains and Losses Year ended December 31 (Dollars in thousands) 2020 2019 Gross realized gains $ 184 120 Gross realized losses (81) (243) Realized gains (losses), net $ 103 (123) |
Loan and Allowance for Loan Losses (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Loans And Leases Receivable Disclosure [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | December 31 (In thousands) 2020 2019 Commercial and industrial $ 82,585 $ 56,782 Construction and land development 33,514 32,841 Commercial real estate: Owner occupied 54,033 48,860 Hotel/motel 42,900 43,719 Multifamily 40,203 44,839 Other 118,000 132,900 Total commercial real estate 255,136 270,318 Residential real estate: Consumer mortgage 35,027 48,923 Investment property 49,127 43,652 Total residential real estate 84,154 92,575 Consumer installment 7,099 8,866 Total loans 462,488 461,382 Less: unearned income (788) (481) Loans, net of unearned income $ 461,700 $ 460,901 |
Past Due Financing Receivables [Table Text Block] | Accruing Accruing Total 30-89 Days Greater than Accruing Non- Total (In thousands) Current Past Due 90 days Loans Accrual Loans December 31, 2020: Commercial and industrial $ 82,355 230 — 82,585 — $ 82,585 Construction and land development 33,453 61 — 33,514 — 33,514 Commercial real estate: Owner occupied 54,033 — — 54,033 — 54,033 Hotel/motel 42,900 — — 42,900 — 42,900 Multifamily 40,203 — — 40,203 — 40,203 Other 117,759 29 — 117,788 212 118,000 Total commercial real estate 254,895 29 — 254,924 212 255,136 Residential real estate: Consumer mortgage 33,169 1,503 140 34,812 215 35,027 Investment property 49,014 6 — 49,020 107 49,127 Total residential real estate 82,183 1,509 140 83,832 322 84,154 Consumer installment 7,069 29 1 7,099 — 7,099 Total $ 459,955 1,858 141 461,954 534 $ 462,488 December 31, 2019: Commercial and industrial $ 56,758 24 — 56,782 — $ 56,782 Construction and land development 32,385 456 — 32,841 — 32,841 Commercial real estate: Owner occupied 48,860 — — 48,860 — 48,860 Hotel/motel 43,719 — — 43,719 — 43,719 Multifamily 44,839 — — 44,839 — 44,839 Other 132,900 — — 132,900 — 132,900 Total commercial real estate 270,318 — — 270,318 — 270,318 Residential real estate: Consumer mortgage 47,151 1,585 — 48,736 187 48,923 Investment property 43,629 23 — 43,652 — 43,652 Total residential real estate 90,780 1,608 — 92,388 187 92,575 Consumer installment 8,802 64 — 8,866 — 8,866 Total $ 459,043 2,152 — 461,195 187 $ 461,382 |
Allowance for Credit Losses on Financing Receivables [Table Text Block] | Year ended December 31 (In thousands) 2020 2019 Beginning balance $ 4,386 $ 4,790 Charged-off loans (45) (408) Recovery of previously charged-off loans 177 254 Net recoveries (charge-offs) 132 (154) Provision for loan losses 1,100 (250) Ending balance $ 5,618 $ 4,386 (in thousands) Commercial and industrial Construction and land Development Commercial Real Estate Residential Real Estate Consumer Installment Total Balance, December 31, 2018 $ 778 700 2,218 946 148 $ 4,790 Charge-offs (364) — — (6) (38) (408) Recoveries 117 — 1 109 27 254 Net (charge-offs) recoveries (247) — 1 103 (11) (154) Provision 46 (131) 70 (236) 1 (250) Balance, December 31, 2019 $ 577 569 2,289 813 138 $ 4,386 Charge-offs (7) — — — (38) (45) Recoveries 94 — — 63 20 177 Net recoveries (charge-offs) 87 — — 63 (18) 132 Provision 143 25 880 68 (16) 1,100 Balance, December 31, 2020 $ 807 594 3,169 944 104 $ 5,618 |
Financing Receivable Allowance for Credit Loss Additional Information [Table Text Block] | Collectively evaluated (1) Individually evaluated (2) Total Allowance Recorded Allowance Recorded Allowance Recorded for loan investment for loan investment for loan investment (In thousands) losses in loans losses in loans losses in loans December 31, 2020: Commercial and industrial $ 807 82,585 — — 807 82,585 Construction and land development 594 33,514 — — 594 33,514 Commercial real estate 3,169 254,920 — 216 3,169 255,136 Residential real estate 944 84,047 — 107 944 84,154 Consumer installment 104 7,099 — — 104 7,099 Total $ 5,618 462,165 — 323 5,618 462,488 December 31, 2019: Commercial and industrial $ 577 56,683 — 99 577 56,782 Construction and land development 569 32,841 — — 569 32,841 Commercial real estate 2,289 270,318 — — 2,289 270,318 Residential real estate 813 92,575 — — 813 92,575 Consumer installment 138 8,866 — — 138 8,866 Total $ 4,386 461,283 — 99 4,386 461,382 (1) Represents loans collectively evaluated for impairment in accordance Loss Contingencies (formerly FAS 5), and pursuant to amendments by ASU 2010-20 regarding allowance for unimpaired loans. (2) Represents loans individually evaluated for impairment in accordance Receivables (formerly |
Financing Receivable Credit Quality Indicators [Table Text Block] | (In thousands) Mention Substandard Accruing Nonaccrual Total loans December 31, 2020 Commercial and industrial $ 79,984 2,383 218 — $ 82,585 Construction and land development 33,260 — 254 — 33,514 Commercial real estate: Owner occupied 51,265 2,627 141 — 54,033 Hotel/motel 35,084 7,816 — — 42,900 Multifamily 36,673 3,530 — — 40,203 Other 116,498 1,243 47 212 118,000 Total commercial real estate 239,520 15,216 188 212 255,136 Residential real estate: Consumer mortgage 32,518 397 1,897 215 35,027 Investment property 48,501 187 332 107 49,127 Total residential real estate 81,019 584 2,229 322 84,154 Consumer installment 7,069 7 23 — 7,099 Total $ 440,852 18,190 2,912 534 $ 462,488 December 31, 2019 Commercial and industrial $ 54,340 2,176 266 — $ 56,782 Construction and land development 31,798 — 1,043 — 32,841 Commercial real estate: Owner occupied 47,865 917 78 — 48,860 Hotel/motel 43,719 — — — 43,719 Multifamily 44,839 — — — 44,839 Other 132,030 849 21 — 132,900 Total commercial real estate 268,453 1,766 99 — 270,318 Residential real estate: Consumer mortgage 45,247 962 2,527 187 48,923 Investment property 42,331 949 372 — 43,652 Total residential real estate 87,578 1,911 2,899 187 92,575 Consumer installment 8,742 60 64 — 8,866 Total $ 450,911 5,913 4,371 187 $ 461,382 |
Impaired Financing Receivables [Table Text Block] | December 31, 2020 (In thousands) Unpaid principal balance (1) Charge-offs and payments applied (2) Recorded investment (3) Related allowance With no allowance recorded: Commercial real estate: Other $ 216 (4) 212 $ — Total commercial real estate 216 (4) 212 — Residential real estate: Investment property 109 (2) 107 — Total residential real estate 109 (2) 107 — Total $ 325 (6) 319 $ — (1) Unpaid principal balance represents the contractual obligation due (2) Charge-offs and payments applied represents cumulative charge-offs taken, as well as interest payments applied against the outstanding principal balance. (3) Recorded investment represents the unpaid principal balance less December 31, 2019 (In thousands) Unpaid principal balance (1) Charge-offs and payments applied (2) Recorded investment (3) Related allowance With no allowance recorded: Commercial and industrial $ 335 (236) 99 $ — Total $ 335 (236) 99 $ — (1) Unpaid principal balance represents the contractual obligation due (2) Charge-offs and payments applied represents cumulative charge-offs taken, as well as interest payments applied against the outstanding principal balance. (3) Recorded investment represents the unpaid principal balance less |
Schedule Of Average Impaired Financing Receivable [Table Text Block] | Year ended December 31, 2020 Year ended December 31, 2019 Average Total interest Average Total interest recorded income recorded income (In thousands) investment recognized investment recognized Impaired loans: Commercial and industrial $ — — $ 8 — Commercial real estate: Owner occupied — — 24 9 Other 116 — — — Total commercial real estate 116 — 24 9 Residential real estate: Investment property 59 — — — Total residential real estate 59 — — — Total $ 175 — $ 32 9 |
Troubled Debt Restructurings on Financing Receivables, Accrual Status [Table Text Block] | TDRs Related (In thousands) Accruing Nonaccrual Total Allowance December 31, 2020 Commercial real estate: Other $ — 212 212 — Total commercial real estate — 212 212 — Investment property — 107 107 — Total residential real estate — 107 107 — Total $ — 319 319 $ — |
Troubled Debt Restructuring Modifications [Table Text Block] | Pre- Post- modification modification outstanding outstanding Number of recorded recorded ($ in thousands) contracts investment investment December 31, 2020 Commercial real estate: Other 1 $ 216 216 Total commercial real estate 1 216 216 Investment property 3 111 111 Total residential real estate 3 111 111 Total 4 $ 327 327 |
Premises and Equipment (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Premises and Equipment [Abstract] | |
Premises and Equipment [Table Text Block] | December 31 (Dollars in thousands) 2020 2019 Land and improvements $ 9,829 9,874 Buildings and improvements 7,436 9,987 Furniture, fixtures, and equipment 2,715 3,109 Construction in progress 8,171 107 Total premises and equipment 28,151 23,077 Less: (5,958) (8,334) Premises and equipment, net $ 22,193 14,743 |
Mortgage Servicing Rights, Net (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Mortgage Servicing [Abstract] | |
Schedule Of Servicing Assets At Fair Value [Table Text Block] | Year ended December 31 (Dollars in thousands) 2020 2019 Beginning balance $ 1,299 1,441 Additions, net 671 241 Amortization expense (640) (383) Ending balance $ 1,330 1,299 Valuation Beginning of period $ — — End of period — — Fair value of amortized MSRs: Beginning of period $ 2,111 2,697 End of period 1,489 2,111 |
Data And Assumptions Used In Fair Value Calculation Of MSRs [Table Text Block] | December 31 (Dollars in thousands) 2020 2019 Unpaid principal balance $ 265,964 274,227 Weighted average prepayment 20.7 % 11.6 Discount rate (annual percentage) 10.0 % 10.0 Weighted average coupon 3.6 % 3.9 Weighted average remaining 253 255 Weighted average servicing 25.0 25.0 |
Estimated Amortization Expense Of MSRs For Five Years [Table Text Block] | (Dollars in thousands) December 31, 2020 2021 $ 308 2022 227 2023 170 2024 129 2025 101 |
Deposits (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Deposits: | |
Maturities Of Certificates Of Deposit And Other Time Deposits [Table Text Block] | (Dollars in thousands) December 31, 2020 2021 $ 88,292 2022 50,332 2023 12,572 2024 5,842 2025 3,363 Thereafter — Total certificates of deposit $ 160,401 |
Short Term Borrowings (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Short-term Debt: | |
Schedule of Short-term Debt [Table Text Block] | 2020 2019 Weighted Weighted (Dollars in thousands) Amount Avg. Rate Amount Avg. Rate Federal funds purchased: As of December 31 $ — — $ — — Average during the year 1 0.78 % 1 2.58 % Maximum outstanding at — — Securities sold under As of December 31 $ 2,392 0.50 % $ 1,069 0.50 % Average during the year 1,822 0.50 % 1,442 0.50 % Maximum outstanding at 2,496 2,261 |
Lease Commitments (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Leases [Abstract] | |
Lessee Operating Lease Liability Maturity [Table Text Block] | Future lease (Dollars in thousands) payments 2021 $ 127 2022 120 2023 120 2024 120 2025 111 Thereafter 300 Total undiscounted operating $ 898 Imputed interest 87 Total operating lease liabilities $ 811 Weighted-average 7.68 Weighted-average 3.02 % |
Other Comprehensive Income (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Other Comprehensive Income Loss [Abstract] | |
Schedule Of Other Comprehensive Income Loss [Table Text Block] | Pre-tax Tax benefit Net of (Dollars in thousands) amount (expense) tax amount 2020: Unrealized net holding gain on securities $ 7,501 (1,884) 5,617 Reclassification adjustment for net gain on securities recognized (103) 26 (77) Other comprehensive income $ 7,398 (1,858) 5,540 2019: Unrealized net holding gain on securities $ 7,651 (1,921) 5,730 Reclassification adjustment for net loss on securities recognized 123 (31) 92 Other comprehensive loss $ 7,774 (1,952) 5,822 |
Income Taxes (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Income Taxes | |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | Year ended December 31 (Dollars in thousands) 2020 2019 Current income tax expense: Federal $ 1,459 1,939 State 476 584 Total current income tax expense 1,935 2,523 Deferred income tax benefit: Federal (262) (136) State (68) (17) Total deferred (330) (153) Total income tax expense $ 1,605 2,370 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | 2020 2019 Percent of Percent of pre-tax pre-tax (Dollars in thousands) Amount earnings Amount earnings Earnings before income taxes $ 9,059 12,111 Income taxes at statutory rate 1,902 21.0 % 2,543 21.0 % Tax-exempt interest (489) (5.4) (508) (4.1) State income taxes, net of federal tax effect 345 3.8 440 3.6 Bank-owned life insurance (152) (1.7) (92) (0.8) Other (1) — (13) (0.1) Total income tax expense $ 1,605 17.7 % 2,370 19.6 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | December 31 (Dollars in thousands) 2020 2019 Deferred tax assets: Allowance for loan losses $ 1,411 1,102 Accrued bonus 183 296 Right of use liability 204 198 Other 91 88 Total deferred 1,889 1,684 Deferred tax liabilities: Premises and equipment 199 315 Unrealized gain on securities 2,548 690 Originated mortgage servicing rights 334 326 Right of use asset 198 197 Other 147 165 Total deferred 3,426 1,693 Net deferred tax liability $ (1,537) (9) |
Schedule of Deferred Tax Asset Rollforward [Table Text Block] | Year ended December 31 (Dollars in thousands) 2020 2019 Net deferred tax (liability) asset: Balance, beginning of year $ (9) 1,790 Deferred tax benefit (expense) related to continuing operations 330 153 Stockholders' equity, for (1,858) (1,952) Balance, end of year $ (1,537) (9) |
Commitment and Contigent Liabilities (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule Of Commitments To Extend Credit [Table Text Block] | December 31 (Dollars in thousands) 2020 2019 Commitments to extend credit $ 74,970 $ 60,564 Standby letters of credit 1,237 1,921 |
Fair Value (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Quoted Prices in Significant Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) December 31, 2020: Securities available-for-sale: Agency obligations $ 97,448 — 97,448 — Agency MBS 163,470 — 163,470 — State and political subdivisions 74,259 — 74,259 — Total securities available 335,177 — 335,177 — Total $ 335,177 — 335,177 — December 31, 2019: Securities available-for-sale: Agency obligations $ 50,708 — 50,708 — Agency MBS 123,277 — 123,277 — State and political subdivisions 61,917 — 61,917 — Total securities available 235,902 — 235,902 — Total $ 235,902 — 235,902 — |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis [Table Text Block] | Quoted Prices in Active Markets Other Significant for Observable Unobservable Identical Assets Inputs Inputs (Dollars in thousands) Amount (Level 1) (Level 2) (Level 3) December 31, 2020: Loans held for sale $ 3,418 — 3,418 — Loans, net (1) 319 — — 319 Other assets (2) 1,330 — — 1,330 Total assets at fair value $ 5,067 — 3,418 1,649 December 31, 2019: Loans held for sale $ 2,202 — 2,202 — Loans, net (1) 99 — — 99 Other assets (2) 1,299 — — 1,299 Total assets at fair value $ 3,600 — 2,202 1,398 (1) Loans considered impaired under ASC 310-10-35 Receivables. impaired loans, net of any related allowance for loan losses. (2) Represents MSRs, net carried at lower of cost or estimated fair value. |
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block] | Weighted Carrying Significant Average (Dollars in thousands) Amount Valuation Technique Range of Input December 31, 2020: Impaired loans $ 319 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 1,330 Discounted cash flow Prepayment speed or CPR 18.2 - 36.4 % 20.7 % Discount rate 10.0 - 12.0 % 10.0 % December 31, 2019: Impaired loans $ 99 Appraisal Appraisal discounts 10.0 - 10.0 % 10.0 % Mortgage servicing rights, net 1,299 Discounted cash flow Prepayment speed or CPR 11.2 - 22.4 % 11.6 % Discount rate 10.0 - 12.0 % 10.0 % |
Financial Instruments [Table Text Block] | Fair Value Hierarchy Carrying Estimated Level 1 Level 2 Level 3 (Dollars in thousands) amount fair value inputs inputs Inputs December 31, 2020: Financial Assets: Loans, net (1) $ 456,082 $ 451,816 $ — $ — $ 451,816 Loans held for sale 3,418 3,509 — 3,509 — Financial Liabilities: Time Deposits $ 160,401 $ 162,025 $ — $ 162,025 $ — December 31, 2019: Financial Assets: Loans, net (1) $ 456,515 $ 453,705 $ — $ — $ 453,705 Loans held for sale 2,202 2,251 — 2,251 — Financial Liabilities: Time Deposits $ 167,199 $ 168,316 $ — $ 168,316 $ — (1) Represents loans, net of unearned income and the allowance |
Related Party Transactions (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions [Table Text Block] | (Dollars in thousands) Amount Loans outstanding at December 31, 2019 $ 3,149 New loans/advances 871 Repayments (2,433) Changes in directors and executive officers (351) Loans outstanding at December 31, 2020 $ 1,236 |
Regulatory Restrictions and Capital Ratios (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Regulatory Capital Requirements [Abstract] | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block] | Minimum for capital Minimum to be Actual adequacy purposes well capitalized (Dollars in thousands) Amount Ratio Amount Ratio Amount Ratio At December 31, 2020: Tier 1 Leverage Capital $ 96,096 10.32 % $ 37,263 4.00 % $ 46,579 5.00 % Common Equity Tier 1 Capital 96,096 17.27 25,042 4.50 36,171 6.50 Tier 1 Risk-Based Capital 96,096 17.27 33,389 6.00 44,519 8.00 Total Risk-Based Capital 101,906 18.31 44,519 8.00 55,648 10.00 At December 31, 2019: Tier 1 Leverage Capital $ 92,778 11.23 % $ 33,043 4.00 % $ 41,303 5.00 % Common Equity Tier 1 Capital 92,778 17.28 24,162 4.50 34,901 6.50 Tier 1 Risk-Based Capital 92,778 17.28 32,216 6.00 42,955 8.00 Total Risk-Based Capital 97,291 18.12 42,955 8.00 53,693 10.00 |
Auburn National Bancorporation - Parent Company (Tables) |
12 Months Ended |
---|---|
Dec. 31, 2020 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Schedule of Condensed Balance Sheet [Table Text Block] | CONDENSED BALANCE SHEETS December 31 (Dollars in thousands) 2020 2019 Assets: Cash and due from banks $ 4,049 4,119 Investment in bank subsidiary 103,695 94,837 Other assets 631 625 Total assets $ 108,375 99,581 Liabilities: Accrued expenses and other liabilities $ 685 1,253 Total liabilities 685 1,253 Stockholders' equity 107,690 98,328 Total liabilities and $ 108,375 99,581 |
Schedule of Condensed Income Statement [Table Text Block] | CONDENSED STATEMENTS Year ended December 31 (Dollars in thousands) 2020 2019 Income: Dividends from bank subsidiary $ 3,638 8,574 Noninterest income 862 346 Total income 4,500 8,920 Expense: Noninterest expense 255 212 Total expense 255 212 Earnings before income tax expense and equity in undistributed earnings of bank subsidiary 4,245 8,708 Income tax expense 110 26 Earnings before equity in undistributed earnings of bank subsidiary 4,135 8,682 Equity in undistributed earnings of bank subsidiary 3,319 1,059 Net earnings $ 7,454 9,741 |
Schedule of Condensed Cash Flow Statement [Table Text Block] | CONDENSED STATEMENTS Year ended December 31 (Dollars in thousands) 2020 2019 Cash flows from operating activities: Net earnings $ 7,454 9,741 Adjustments to reconcile net earnings to net cash provided by operating activities: Net (increase) decrease in other assets (6) 7 Net decrease in other liabilities (561) (215) Equity in undistributed earnings of bank subsidiary (3,319) (1,059) Net cash provided by operating activities 3,568 8,474 Cash flows from financing activities: Dividends paid (3,638) (3,575) Stock repurchases — (2,721) Net cash used in financing activities (3,638) (6,296) Net change in cash and cash equivalents (70) 2,178 Cash and cash equivalents at beginning of period 4,119 1,941 Cash and cash equivalents at end of period $ 4,049 4,119 |
Summary of Significant Accounting Policies Textuals (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Change in Accounting Estitmate | ||
Change In Accounting Estimate Carrying Value Property Plant And Equipment | $ 500 | |
Change In Accounting Estitmate After Tax Impact Net Earnings | $ 342 | $ 161 |
Accounting Estimate Change Effect Of Change On Basic And Diluted Eanrings Per Share | $ 0.10 | $ 0.04 |
Basic and Diluted Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Basic and Diluted Earnings Per Share [Abstract] | ||
Net earnings | $ 7,454 | $ 9,741 |
Basic and diluted weighted average shares outstanding | 3,566,207 | 3,581,476 |
Basic and diluted earnings per share | $ 2.09 | $ 2.72 |
Securities Gross Realized Gain Loss (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Available-for-sale Securities, Gross Realized Gain (Loss) [Abstract] | ||
Available-for-sale Securities, Gross Realized Gains | $ 184 | $ 120 |
Available-for-sale Securities, Gross Realized Losses | (81) | (243) |
Available-for-sale Securities, Gross Realized Gain (Loss), Net | $ 103 | $ (123) |
Securities Textuals (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Securities (Textuals) [Abstract] | ||
Available-for-sale Securities Pledged as Collateral | $ 166.9 | $ 147.8 |
Cost-method Investments, Aggregate Carrying Amount | $ 1.4 |
Loans (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Loans And Leases Receivable Disclosure [Abstract] | ||
Commercial and Industrial Loans | $ 82,585 | $ 56,782 |
Construction And Land Development Loans | 33,514 | 32,841 |
Commericial Real Estate Loans [Abstract] | ||
Commercial Real Estate Owner Occupied Loans | 54,033 | 48,860 |
Commercial Real Estate Hotel Motel | 42,900 | 43,719 |
Commercial Real Estate Multifamily | 40,203 | 44,839 |
Commerical Real Estate Other Loans | 118,000 | 132,900 |
Total Commercial Real Estate Loans | 255,136 | 270,318 |
Residential Real Estate Loans [Abstract] | ||
Consumer Mortgage Loans | 35,027 | 48,923 |
Residential Real Estate Investment Property Loans | 49,127 | 43,652 |
Total Residential Real Estate Loans | 84,154 | 92,575 |
Consumer Installment And Revolving Loans | 7,099 | 8,866 |
Loans and Leases Receivable, Gross, Carrying Amount | 462,488 | 461,382 |
Loans and Leases Receivable Deferred Income | (788) | (481) |
Loans, net of unearned income | $ 461,700 | $ 460,901 |
Loans Textuals (Details) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020
USD ($)
|
Dec. 31, 2019
USD ($)
|
|
Loan and Lease Disclosure (Textuals) [Abstract] | ||
Percentage Of Loans Secured By Real Estate | 80.60% | |
LoansAndLeasesReceivableImpairedInterestLostOnNonaccrualLoans | $ 20 | $ 9 |
Gain From Loan Guarantee Program | $ 1,717 | |
Number Of Loan Outstanding For Loan Guarantee | 5 | |
Amount Of Loan Outstanding For Loan Guarantee | $ 10,300 | |
Loans Payroll Protection Program Number Of Loans | 265 | |
Payroll Protection Program Loan Balance | $ 19,000 |
Premises and Equipment (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Land | $ 9,829 | $ 9,874 |
Buildings and Improvements | 7,436 | 9,987 |
Furniture, Fixtures, And Equipment | 2,715 | 3,109 |
Construction In Progress | 8,171 | 107 |
Total Premises and Equipment | 28,151 | 23,077 |
Less: Accumulated Depreciation and Equipment | (5,958) | (8,334) |
Premises and equipment, net | $ 22,193 | $ 14,743 |
Property, Plant Equipment Textuals (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Property, Plant and Equipment, Net, by Type [Abstract] | ||
Depreciation Expense | $ 905 | $ 662 |
Mortgage Servicing Rights, Net (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Servicing Asset at Amortized Value, Balance [Roll Forward] | ||
Servicing Asset at Amortized Cost, Beginning | $ 1,299 | $ 1,441 |
Servicing Asset at Amortized Value, Additions | 671 | 241 |
Servicing Asset at Amortized Value, Amortization | (640) | (383) |
Servicing Asset at Amortized Cost, Ending | 1,330 | 1,299 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Balance [Abstract] | ||
Valuation Allowance for Impairment of Recognized Servicing Assets, Beginning Balance | 0 | 0 |
Valuation Allowance for Impairment of Recognized Servicing Assets, Ending Balance | 0 | 0 |
Servicing Asset at Amortized Value, Fair Value [Abstract] | ||
Servicing Asset at Amortized Value, Fair Value, Beginning | 2,111 | 2,697 |
Servicing Asset at Amortized Value, Fair Value, Ending | $ 1,489 | $ 2,111 |
Mortgage Servicing Rights, net Estimated Amortization Expense For Future Periods (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | |
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | $ 308 |
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 227 |
Finite-Lived Intangible Assets, Amortization Expense, Year Three | 170 |
Finite-Lived Intangible Assets, Amortization Expense, Year Four | 129 |
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 101 |
Mortgage Servicing Rights Textuals (Details) |
Dec. 31, 2020 |
---|---|
Mortgage Servicing [Abstract] | |
Weighted Average Amortization In Years | 3.7 |
Deposits Time Deposit Maturities (Details) $ in Thousands |
Dec. 31, 2020
USD ($)
|
---|---|
Time Deposits, Fiscal Year Maturity [Abstract] | |
Time Deposit Maturities, Next Twelve Months | $ 88,292 |
Time Deposit Maturities, Year Two | 50,332 |
Time Deposit Maturities, Year Three | 12,572 |
Time Deposit Maturities, Year Four | 5,842 |
Time Deposit Maturities, Year Five | 3,363 |
Time Deposit Maturities, after Year Five | 0 |
Time Deposits, Total | $ 160,401 |
Deposits Textuals (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Time Deposits [Abstract] | ||
Time Deposits, $250,000 or More | $ 55.0 | $ 57.4 |
Short-term Borrowings (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Federal Funds Purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 0 | $ 0 |
Short-term Debt, Weighted Average Interest Rate | 0.00% | 0.00% |
Short-term Debt, Average Outstanding Amount | $ 1 | $ 1 |
Short-term Debt, Weighted Average Interest Rate During Year | 0.78% | 2.58% |
Short-term Debt, Maximum Month-end Outstanding Amount | $ 0 | $ 0 |
Securities Sold under Agreements to Repurchase [Member] | ||
Short-term Debt [Line Items] | ||
Short-term Debt | $ 2,392 | $ 1,069 |
Short-term Debt, Weighted Average Interest Rate | 0.50% | 0.50% |
Short-term Debt, Average Outstanding Amount | $ 1,822 | $ 1,442 |
Short-term Debt, Weighted Average Interest Rate During Year | 0.50% | 0.50% |
Short-term Debt, Maximum Month-end Outstanding Amount | $ 2,496 | $ 2,261 |
Short-term Borrowings Textuals (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Short-term Debt: | ||
Federal Funds, Borrowing Capacity | $ 41.0 | |
Available For Sale Securities Pledged As Collateral For Securities Sold Under Agreements to Repurchase | $ 5.7 | $ 2.6 |
Lease Commitment (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Operating Lease Liabilities Payments Due [Abstract] | ||
2021 | $ 127 | |
2022 | 120 | |
2023 | 120 | |
2024 | 120 | |
2025 | 111 | |
Thereafter | 300 | |
Total Undiscounted operating lease liablitiies | 898 | |
LesseeOperatingLeaseLiabilityUndiscountedExcess | 87 | |
Operating lease liabilities included in the accompanying balance sheet | $ 811 | $ 788 |
OperatingLeaseWeightedAverageRemainingLeaseTerm | 7 years 8 months 4 days | |
OperatingLeaseWeightedAverageDiscountRatePerce | 3.02% |
Lease Commiment Textuals (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Leases [Abstract] | ||
Rent Expense | $ 200 | |
Operating lease right-of-use assets | 788 | $ 785 |
Operating lease liabilities included in the accompanying balance sheet | 811 | $ 788 |
Rent Expense Excluded From Right Of Use Asset | 100 | |
Rent Expense Included In Lease Liablilty | $ 112 |
Other Comprehensive Income (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Pre-Tax Amount [Member] | ||
Schedule Of Other Comprehesive Income [Line Items] | ||
Unrealized Net Holding Gain (Loss) On All Other Securitiies | $ 7,501 | $ 7,651 |
Reclassification adjustment for loss (gain) on securities recognized in earnings | (103) | 123 |
Other Comprehensive Income (Loss) | 7,398 | 7,774 |
Tax Benefit (Expense) [Member] | ||
Schedule Of Other Comprehesive Income [Line Items] | ||
Unrealized Net Holding Gain (Loss) On All Other Securitiies | (1,884) | (1,921) |
Reclassification adjustment for loss (gain) on securities recognized in earnings | 26 | (31) |
Other Comprehensive Income (Loss) | (1,858) | (1,952) |
Net Of Tax Amount [Member] | ||
Schedule Of Other Comprehesive Income [Line Items] | ||
Unrealized Net Holding Gain (Loss) On All Other Securitiies | 5,617 | 5,730 |
Reclassification adjustment for loss (gain) on securities recognized in earnings | (77) | 92 |
Other Comprehensive Income (Loss) | $ 5,540 | $ 5,822 |
Income Taxes (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Current Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Current Federal Tax Expense (Benefit) | $ 1,459 | $ 1,939 |
Current State and Local Tax Expense (Benefit) | 476 | 584 |
Current Income Tax Expense (Benefit), Total | 1,935 | 2,523 |
Deferred Income Tax Expense (Benefit), Continuing Operations [Abstract] | ||
Deferred Federal Income Tax Expense (Benefit) | (262) | (136) |
Deferred State and Local Income Tax Expense (Benefit) | (68) | (17) |
Deferred Income Tax Expense (Benefit), Total | (330) | (153) |
Income Tax Expense (Benefit), Continuing Operations, Total | $ 1,605 | $ 2,370 |
Income Tax, Components of Deferred Tax Asset and Liability (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Deferred Tax Assets, Gross [Abstract] | |||
Deferred Tax Asset, Allowance For Loan Loss | $ 1,411 | $ 1,102 | |
Deferred Tax Asset, Bonus | 183 | 296 | |
Deferred Tax Asset Right Of Use Liability | 204 | 198 | |
Deferred Tax Assets, Other | 91 | 88 | |
Deferred Tax Assets, Gross | 1,889 | 1,684 | |
Deferred Tax Liabilities [Abstract] | |||
Deferred Tax Liabilities, Property, Plant and Equipment | 199 | 315 | |
Deferred Tax Liabilities, Unrealized Gains on Available-for-Sale Securities, Gross | 2,548 | 690 | |
Deferred Tax Liabilities, Originated Mortgage Servicing Rights | 334 | 326 | |
Deferred Tax Liabilities, Right Of Use Asset | 198 | 197 | |
Deferred Tax Liabilities, Other | 147 | 165 | |
Deferred Income Tax Liabilities, Gross, Total | 3,426 | 1,693 | |
Deferred Tax Assets (Liabilities), Net | $ (1,537) | $ (9) | $ 1,790 |
Change in Net Deferred Tax Asset (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Change In Net Deferred Tax Asset (Liability) [Rollforward] | ||
Deferred Tax Assets (Liabilities), Net | $ (9) | $ 1,790 |
Deferred Tax (Expense) Benefit Related To Continuing Operations | 330 | 153 |
Deferred Taxes, Stockholders' Equity For Change In Accumulated Other Comprehensive (Income) Loss | (1,858) | (1,952) |
Deferred Tax Assets (Liabilities), Net | $ (1,537) | $ (9) |
Employee Benefits Textuals (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Defined Contribution Pension and Other Postretirement Plans Disclosure [Abstract] | ||
401k Employer Matching Contribution | $ 304 | $ 264 |
Commitment and Contingencies (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of Commitment | $ 74,970 | $ 60,564 |
Financial Standby Letter of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of Commitment | $ 1,237 | $ 1,921 |
Commitments and Contingencies Textuals (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Liabilty Recorded For Stanby Letter of Credit [Abstract] | ||
Liability Recorded For Standy Letters Of Credit | $ 25 | $ 39 |
Commitments Construction Contract | $ 25,300 |
Related Party Transactions (Details) $ in Thousands |
12 Months Ended |
---|---|
Dec. 31, 2020
USD ($)
| |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Loans and Leases Receivable, Related Parties | $ 3,149 |
Loans and Leases Receivable, Related Parties, Additions | 871 |
Loans and Leases Receivable, Related Parties, Payments | (2,433) |
Loans And Leases Receivable Related Parties, Change in Directors And Executive Officers | (351) |
Loans and Leases Receivable, Related Parties | $ 1,236 |
Related Party Transactions Textuals (Details) - USD ($) $ in Millions |
Dec. 31, 2020 |
Dec. 31, 2019 |
---|---|---|
Related Party Transactions [Abstract] | ||
Related Party Deposit Liabilities | $ 18.7 | $ 19.1 |
Regulatory Capital Textuals (Details) $ in Millions |
Dec. 31, 2020
USD ($)
|
---|---|
Regulatory Capital Requirements [Abstract] | |
Regulatory Capital, Dividends Without Approval Of Regulators | $ 6.8 |
Regulatory Capital, Restricted Investment From Dividends | $ 96.9 |
Auburn National Bancorporation - Parent Only, Balance Sheet (Details) - USD ($) $ in Thousands |
Dec. 31, 2020 |
Dec. 31, 2019 |
Dec. 31, 2018 |
---|---|---|---|
Assets: | |||
Cash And Due From Banks | $ 14,868 | $ 15,172 | |
Premises and equipment, net | 22,193 | 14,743 | |
Other assets | 7,920 | 6,872 | |
Total assets | 956,597 | 827,879 | |
Liabilities: | |||
Accrued expenses and other liabilities | 6,723 | 4,330 | |
Total liabilities | 848,907 | 729,551 | |
Stockholders' equity: | |||
Total stockholders' equity | 107,690 | 98,328 | $ 89,055 |
Total liabilities and stockholders' equity | 956,597 | 827,879 | |
Parent Company [Member] | |||
Assets: | |||
Cash And Due From Banks | 4,049 | 4,119 | |
Investments in and Advance to Affiliates, Subsidiaries, Associates, and Joint Ventures | 103,695 | 94,837 | |
Other assets | 631 | 625 | |
Total assets | 108,375 | 99,581 | |
Liabilities: | |||
Accrued expenses and other liabilities | 685 | 1,253 | |
Total liabilities | 685 | 1,253 | |
Stockholders' equity: | |||
Total stockholders' equity | 107,690 | 98,328 | |
Total liabilities and stockholders' equity | $ 108,375 | $ 99,581 |
Auburn National Bancorporation - Parent Only, Statement of Earnings (Details) - USD ($) $ in Thousands |
12 Months Ended | |
---|---|---|
Dec. 31, 2020 |
Dec. 31, 2019 |
|
Income: | ||
Other noninterest income | $ 1,644 | $ 1,880 |
Other Expenses [Abstract] | ||
Total interest expense | 3,856 | 4,183 |
Total noninterest expense | 19,554 | 19,697 |
Income Tax Expense (Benefit) | 1,605 | 2,370 |
Net earnings | 7,454 | 9,741 |
Parent Company [Member] | ||
Income: | ||
Dividends from bank subsidiary | 3,638 | 8,574 |
Other noninterest income | 862 | 346 |
Total income | 4,500 | 8,920 |
Other Expenses [Abstract] | ||
Total noninterest expense | 255 | 212 |
Operating Expenses | 255 | 212 |
Earnings Before Income Tax Expense (Benefit) And Equity In Undistributed Earnings Of Bank Subsidary | 4,245 | 8,708 |
Income Tax Expense (Benefit) | 110 | 26 |
Earnings Before Equity In Undistributed Earnings Of Bank Subsidary | 4,135 | 8,682 |
Equity In Undistributed Earnings Of Bank Subsidary | 3,319 | 1,059 |
Net earnings | $ 7,454 | $ 9,741 |
E"*,UX6DGPM^D7.UM)_L("N;@=(0+M=4YM,8ZQ8%\M[Q](/,LBJ%4
M-8;;;F_GQ-N$[9V^<+567S7<:2>X;PZP' 9LI4 1O*U2T7Y;+O
M<+?&>_WK2UT,XY;FLEZU];(NB[8W9V7IAK:OVY7Y[)JZK*U_>=1C/+YU5 ;9
M;U3VZ0.R3T[-!]?V:V_>M96MI@*.H&C2]C1J^^;TNQ+?VG)NGIS,S.GQZ?%W
MY#U)LW\B\I[\V.Q_=/*3L9ZFL9[*6$\?&.M-X6O/D3YWUMNV+^B5^XSZ73$,
MTE_]MBCMJX,M!777]N#UV=D8D>]G9++4