☒ |
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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☐ |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
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Pennsylvania
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38-3917371
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State or other jurisdiction of
incorporation or organization
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(I.R.S. Employer
Identification No.)
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Title of each class
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Trading
Symbol
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Name of each exchange
on which registered
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Voting Common Stock
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RIVE
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Nasdaq Global Market
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Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated
filer
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☒ | Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
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Page
Number |
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PART I
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Item 1.
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3
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Item 1A.
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13
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Item 1B.
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13
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Item 2.
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14
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Item 3.
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14
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Item 4.
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14
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PART II
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Item 5.
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14
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Item 6.
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14
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Item 7.
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15
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Item 7A.
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42
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Item 8.
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43
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Item 9.
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92
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Item 9A.
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92
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Item 9B.
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93
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PART III
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Item 10.
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93
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Item 11.
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93
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Item 12.
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94
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Item 13.
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94
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Item 14.
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94
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PART IV
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Item 15.
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94
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98
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• |
the risk factors associated with the onset of
COVID-19
could have a material adverse effect on significant estimates, operations and business results of Riverview Financial Corporation;
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• |
the effect of changes in market interest rates and the relative balances of rate-sensitive assets to rate-sensitive liabilities on net interest margin and net interest income;
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• |
increases in
non-performing
assets, which may require Riverview Financial Corporation to increase the allowance for credit losses, charge off loans and incur elevated collection and carrying costs related to such
non-performing
assets;
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• |
the impact of adverse economic conditions, particularly in the Riverview Financial Corporation market area, on the performance of its loan portfolio and the demand for its products and services;
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• |
the effects of changes in interest rates on demand for Riverview Financial Corporation’s products and services;
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• |
the effects of changes in interest rates or disruptions in liquidity markets on Riverview Financial Corporation’s sources of funding;
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• |
the impact of legislative and regulatory changes and the increasing amount of time and resources spent on compliance;
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• |
monetary and fiscal policies of the U.S. government, including policies of the U.S. Department of Treasury and the Federal Reserve System;
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• |
credit risk associated with lending activities and changes in the quality and composition of our loan and investment portfolios;
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• |
demand for loan and other products;
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• |
our ability to attract and retain deposits;
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• |
the effect of competition on deposit and loan rates, growth and on the net interest margin;
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• |
changes in the values of real estate and other collateral securing the loan portfolio, particularly in our market area;
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• |
the failure to identify and to address cyber-security risks;
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• |
the ability to keep pace with technological changes and related costs;
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• |
our ability to successfully enter new markets or successfully integrate acquired entities, if any;
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• |
the ability to attract and retain talented personnel;
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• |
capital and liquidity strategies, including Riverview Financial Corporation’s ability to comply with applicable capital and liquidity requirements, and its ability to generate capital internally or raise capital on favorable terms;
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• |
Riverview Financial Corporation’s reliance on its subsidiaries for substantially all revenues and its ability to pay dividends or other distributions;
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• |
the effects of changes in relevant accounting principles and guidelines on Riverview Financial Corporation’s financial condition; and
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• |
the impact of the inability and failure of third party service providers to perform their contractual obligations.
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Item 1.
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Business.
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• |
investment management;
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• |
IRA trustee services;
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• |
estate administration;
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• |
living trusts;
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• |
trustee under will;
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• |
guardianships;
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• |
life insurance trusts;
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• |
custodial services / IRA custodial services;
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• |
corporate trusts; and
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• |
pension and profit sharing plans.
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• |
the appointment of a conservator or receiver;
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• |
the issuance of a cease and desist order;
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• |
the termination of deposit insurance, the imposition of civil money penalties on the institution, its directors, officers, employees and institution affiliated parties;
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• |
the issuance of directives to increase capital;
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• |
the issuance of formal and informal agreements and orders;
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• |
the removal of or restrictions on directors, officers, employees and institution-affiliated parties; and
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• |
the enforcement of any such mechanisms through restraining orders or any other court actions.
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• |
limitations on its ability to pay dividends;
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• |
the issuance by the applicable regulatory authority of a capital directive to increase capital;
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• |
or the termination of deposit insurance by the FDIC, as well as the measures described under FDICIA as applicable to undercapitalized institutions under the prompt corrective action regulation.
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• |
well-capitalized (at least 5% leverage capital, 8% Tier 1 risk-based capital, 10% total risk-based capital and 6.5% common equity Tier 1 risk-based capital);
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• |
adequately capitalized (at least 4% leverage capital, 6% Tier 1 risk-based capital, 8% total risk-based capital and 4.5% common equity Tier 1 risk-based capital);
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• |
undercapitalized (less than 4% leverage capital, 6% Tier 1 risk-based capital, 8% total risk-based capital or 4.5% common equity Tier 1 risk-based capital);
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• |
significantly undercapitalized (less than 3% leverage capital, 4% Tier 1 risk-based capital, 6% total risk-based capital or 3% common equity Tier 1 risk-based capital); and
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• |
critically undercapitalized (less than 2% tangible capital).
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• |
Establishment of anti-money laundering programs;
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• |
Establishment of a program specifying procedures for obtaining identifying information from customers seeking to open new accounts, including verifying the identity of customers within a reasonable period of time;
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• |
Establishment of enhanced due diligence policies, procedures and controls designed to detect and report money laundering; and
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• |
Prohibition on correspondent accounts for foreign shell banks and compliance with recordkeeping obligations with respect to correspondent accounts of foreign banks.
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• |
Truth-In-Lending
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Real Estate Settlement Procedures Act, requiring that borrowers for mortgage loans for
one-
to four-family residential real estate receive various disclosures, including good faith estimates of settlement costs, lender servicing and escrow account practices, and prohibiting certain practices that increase the cost of settlement services;
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• |
Home Mortgage Disclosure Act, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
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• |
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
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• |
Fair Credit Reporting Act, governing the use and provision of information to credit reporting agencies;
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• |
Fair Lending laws;
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• |
Unfair or Deceptive Acts or Practices laws and regulations;
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• |
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies; and
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• |
Truth in Savings Act.
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• |
Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records;
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• |
Electronic Funds Transfer Act and Regulation E promulgated thereunder, which govern automatic deposits to and withdrawals from deposit accounts and customers’ rights and liabilities arising from the use of automated teller machines and other electronic banking services;
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• |
Check Clearing for the 21st Century Act (also known as “Check 21”), which gives “substitute checks,” such as digital check images and copies made from that image, the same legal standing as the original paper check; and
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• |
The Gramm-Leach-Bliley Act, which places limitations on the sharing of consumer financial information by financial institutions with unaffiliated third parties. Specifically, the Gramm-Leach-Bliley Act requires all financial institutions offering financial products or services to retail customers to provide such customers with the financial institution’s privacy policy and provide such customers the opportunity to “opt out” of the sharing of certain personal financial information with unaffiliated third parties.
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• |
Allowing institutions not to characterize loan modifications relating to the
COVID-19
pandemic as a troubled debt restructuring and also allowing them to suspend the corresponding impairment determination for accounting purposes;
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• |
As previously noted, temporarily reducing the community bank leverage ratio alternative available to institutions of less than $10 billion of assets to 8%;
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• |
The ability of a borrower of a federally-backed mortgage loan (VA, FHA, USDA, Freddie Mac and Fannie Mae) experiencing financial hardship due, directly or indirectly to the
COVID-19
pandemic, to request forbearance from paying their mortgage by submitting a request to the borrower’s servicer affirming their financial hardship during the
COVID-19
emergency. Such a forbearance could be granted for up to 180 days, subject to extension for an additional
180-day
period upon the request of the borrower. During that time, no fees, penalties or interest beyond the amounts scheduled or calculated as if the borrower made all contractual payments on time and in full under the mortgage contract could accrue on the borrower’s account. Except for vacant or abandoned property, the servicer of a federally-backed mortgage was prohibited from taking any foreclosure action, including any eviction or sale action, for not less than the
60-day
period beginning March 18, 2020, extended by federal mortgage-backing agencies to at least December 31, 2020;
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• |
The ability of a borrower of a multi-family federally-backed mortgage loan that was current as of February 1, 2020, to submit a request for forbearance to the borrower’s servicer affirming that the borrower is experiencing financial hardship during the
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COVID-19
emergency. A forbearance would be granted for up to 30 days, which could be extended for up to two additional
30-day
periods upon the request of the borrower. Later extensions were made available, for a total of six months, for certain federally-backed multi-family mortgage loans. During the time of the forbearance, the multi-family borrower could not evict or initiate the eviction of a tenant or charge any late fees, penalties or other charges to a tenant for late payment of rent. Additionally, a multi-family borrower that received a forbearance could not require a tenant to vacate a dwelling unit before a date that is 30 days after the date on which the borrower provided the tenant notice to vacate and may not issue a notice to vacate until after the expiration of the forbearance.
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Item 1A.
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Risk Factors.
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Item 1B.
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Unresolved Staff Comments.
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Item 2.
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Properties.
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Item 3.
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Legal Proceedings.
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Item 4.
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Mine Safety Disclosures.
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Item 5.
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Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities.
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Item 6.
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Selected Financial Data.
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Item 7.
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Management’s Discussion and Analysis of Financial Condition and Results of Operations.
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2020
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2019
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|||||||
United States
|
6.5 | % | 3.6 | % | ||||
Pennsylvania
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6.4 | 4.5 | ||||||
Berks County
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6.0 | 4.2 | ||||||
Blair County
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6.3 | 4.4 | ||||||
Bucks County
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5.3 | 3.7 | ||||||
Centre County
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4.4 | 3.1 | ||||||
Clearfield County
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7.0 | 5.1 | ||||||
Cumberland County
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4.5 | 3.3 | ||||||
Dauphin County
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6.1 | 4.1 | ||||||
Huntingdon County
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7.9 | 5.8 | ||||||
Lebanon County
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5.5 | 3.8 | ||||||
Lehigh County
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6.4 | 4.2 | ||||||
Lycoming County
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7.2 | 4.6 | ||||||
Perry County
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4.4 | 3.7 | ||||||
Schuylkill County
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6.6 | 5.7 | ||||||
Somerset County
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7.4 | 5.3 |
• |
Approximately one third of our work force is currently working from home.
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• |
Strategic temporary closure of offices and successfully consolidating customer traffic into nearby offices or online and/or mobile banking applications.
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• |
Operating lobby hours by appointment only and conducting business primarily through drive up facilities in all locations that remain open.
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• |
Providing payment relief to borrowers experiencing financial stress due to
COVID-19,
including loan payment modifications for periods up to six months under guidelines established by regulatory agencies, avoiding a significant increase in troubled debt restructure classifications for eligible customers.
|
• |
Waiving late charges on loans and overdrafts on deposit accounts, upon request, for customers experiencing
COVID-19
related financial hardship.
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• |
Permitting penalty free early withdrawals from Certificates of Deposits, within certain parameters.
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• |
Permitting customers to exceed the maximum monthly transaction count for
non-demand
deposit accounts subject to Regulation DD, as permitted by the temporary removal of this monthly limit by regulatory agencies.
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• |
Created a low cost, unsecured consumer loan program for customers experiencing financial hardship as a direct result of
COVID-19.
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• |
Participated in the CARES Act approved Paycheck Protection Program (“PPP”) administered by the SBA as an SBA approved 7(a) lender in both rounds of program funding, successfully delivering PPP loan approvals to every eligible bank customer that applied for PPP funding with Riverview Bank.
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• |
Established teams working in various shifts or cycles to avoid contact one with another, helping to ensure the safety of our employees and continuity of service to our customers.
|
• |
Providing latex gloves and masks for all customer contact employees to help ensure the safety of both our customers and employees.
|
• |
Implementation of appropriate cleaning and sanitization protocols throughout the organization.
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• |
Donated $15,000 to the Central PA Food Bank, which services multiple local food banks throughout our footprint.
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• |
Temporarily eliminating NSF, ATM and other service charge fees.
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2020
|
2019
|
2018
|
||||||||||||||||||||||
December 31
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Amount
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%
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Amount
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%
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Amount
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%
|
||||||||||||||||||
State and municipals:
|
||||||||||||||||||||||||
Taxable
|
$ | 22,574 | 21.77 | % | $ | 24,824 | 27.20 | % | $ | 33,278 | 31.79 | % | ||||||||||||
Tax-exempt
|
18,395 | 17.74 | 4,333 | 4.75 | 12,776 | 12.21 | ||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
U.S. Government agencies
|
26,991 | 26.03 | 36,134 | 39.60 | 23,670 | 22.61 | ||||||||||||||||||
U.S. Government-sponsored enterprises
|
25,052 | 24.16 | 22,645 | 24.82 | 26,195 | 25.02 | ||||||||||||||||||
Corporate debt obligations
|
10,683 | 10.30 | 3,311 | 3.63 | 8,758 | 8.37 | ||||||||||||||||||
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|
|
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|
|
|
|
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|||||||||||||
Total
|
$ | 103,695 | 100.00 | % | $ | 91,247 | 100.00 | % | $ | 104,677 | 100.00 | % | ||||||||||||
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|
|
|
|
|
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|
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Within one year
|
After one but
within five years |
After five but
within ten years |
After ten years
|
Total
|
||||||||||||||||||||||||||||||||||||
December 31, 2020
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||||||||||||||||||
Amortized Cost:
|
||||||||||||||||||||||||||||||||||||||||
State and municipals:
|
||||||||||||||||||||||||||||||||||||||||
Taxable
|
$ | 822 | 5.59 | % | $ | 266 | 3.01 | % | $ | 6,816 | 3.40 | % | $ | 14,413 | 2.07 | % | $ | 22,317 | 2.62 | % | ||||||||||||||||||||
Tax-exempt
|
4,159 | 3.68 | 500 | 3.75 | 13,329 | 1.56 | 17,988 | 2.11 | ||||||||||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies
|
17,786 | 2.43 | 8,265 | 1.37 | 26,051 | 2.09 | ||||||||||||||||||||||||||||||||||
U.S. Government-sponsored enterprises
|
8,831 | 2.46 | 13,318 | 1.00 | 2,478 | 0.35 | 24,627 | 1.46 | ||||||||||||||||||||||||||||||||
Corporate debt obligations
|
3,500 | 0.86 | 7,250 | 4.63 | 10,750 | 3.40 | ||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total
|
$ | 822 | 5.59 | % | $ | 16,756 | 2.44 | % | $ | 45,670 | 2.52 | % | $ | 38,485 | 1.63 | % | $ | 101,733 | 2.20 | % | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Fair Value:
|
||||||||||||||||||||||||||||||||||||||||
State and municipals:
|
||||||||||||||||||||||||||||||||||||||||
Taxable
|
$ | 840 | $ | 295 | $ | 7,082 | $ | 14,357 | $ | 22,574 | ||||||||||||||||||||||||||||||
Tax-exempt
|
4,416 | 501 | 13,478 | 18,395 | ||||||||||||||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||||||||||||||||||
U.S. Government agencies
|
18,413 | 8,578 | 26,991 | |||||||||||||||||||||||||||||||||||||
U.S. Government-sponsored enterprises
|
9,020 | 13,530 | 2,502 | 25,052 | ||||||||||||||||||||||||||||||||||||
Corporate debt obligations
|
3,378 | 7,305 | 10,683 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total
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$ | 840 | $ | 17,109 | $ | 46,831 | $ | 38,915 | $ | 103,695 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||||
December 31
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||||||||||||||||||
Commercial
|
$ | 359,080 | 31.52 | % | $ | 118,658 | 13.93 | % | $ | 122,919 | 13.76 | % | $ | 140,116 | 14.65 | % | $ | 51,166 | 12.50 | % | ||||||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||||||||||||||
Construction
|
73,402 | 6.44 | 61,831 | 7.26 | 39,556 | 4.43 | 34,405 | 3.60 | 8,605 | 2.10 | ||||||||||||||||||||||||||||||
Commercial
|
502,495 | 44.11 | 455,901 | 53.50 | 497,597 | 55.71 | 526,230 | 55.05 | 212,550 | 51.93 | ||||||||||||||||||||||||||||||
Residential
|
197,596 | 17.34 | 207,354 | 24.33 | 221,115 | 24.76 | 240,626 | 25.17 | 130,874 | 31.97 | ||||||||||||||||||||||||||||||
Consumer
|
6,666 | 0.59 | 8,365 | 0.98 | 11,997 | 1.34 | 14,594 | 1.53 | 6,148 | 1.50 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Loans, net
|
1,139,239 | 100.00 | % | 852,109 | 100.00 | % | 893,184 | 100.00 | % | 955,971 | 100.00 | % | 409,343 | 100.00 | % | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Less: allowance for loan loss
|
12,200 | 7,516 | 6,348 | 6,306 | 3,732 | |||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Net loans
|
$ | 1,127,039 | $ | 844,593 | $ | 886,836 | $ | 949,665 | $ | 405,611 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
Within one
year |
After one but
within five years |
After five
years but within 15 years |
Total
|
||||||||||||
Maturity schedule:
|
||||||||||||||||
Commercial
|
$ | 122,694 | $ | 171,339 | $ | 65,047 | $ | 359,080 | ||||||||
Real estate:
|
||||||||||||||||
Construction
|
13,185 | 5,872 | 54,345 | 73,402 | ||||||||||||
Commercial
|
27,272 | 125,672 | 349,551 | 502,495 | ||||||||||||
Residential
|
19,007 | 52,605 | 125,984 | 197,596 | ||||||||||||
Consumer
|
1,349 | 1,865 | 3,452 | 6,666 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 183,507 | $ | 357,353 | $ | 598,379 | $ | 1,139,239 | ||||||||
|
|
|
|
|
|
|
|
|||||||||
Predetermined interest rates
|
$ | 139,863 | $ | 235,245 | $ | 54,103 | $ | 429,211 | ||||||||
Floating or adjustable interest rates
|
43,644 | 122,108 | 544,276 | 710,028 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 183,507 | $ | 357,353 | $ | 598,379 | $ | 1,139,239 | ||||||||
|
|
|
|
|
|
|
|
December 31
|
2020
|
2019
|
2018
|
|||||||||
Commitments to extend credit
|
$ | 70,474 | $ | 105,403 | $ | 96,431 | ||||||
Unused portions of lines of credit
|
75,517 | 66,114 | 59,512 | |||||||||
Standby and performance letters of credit
|
6,577 | 4,726 | 5,789 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 152,568 | $ | 176,243 | $ | 161,732 | ||||||
|
|
|
|
|
|
• |
Approval Process – No single approval authorities. All loans are approved by two authorized officers with higher exposures approved by a committee process.
|
• |
Concentration Management – Concentration limits by industry are established by policy and monitored and reported to the Board of Directors quarterly.
|
• |
CRE Stress Testing – CRE Stress testing is conducted at the individual transaction level for new loans and with annual reviews of existing relationships. The credit department utilizes a cash flow analysis to stress individual loans for increased interest rate, decreased occupancy, and a combination of these two scenarios. In addition, a break-even interest rate and break-even occupancy level is calculated.
|
• |
Loan Quality Review – A Commercial Loan Quality Review meeting is conducted quarterly by the Chief Credit Officer and Chief Lending Officer. Commercial account officers, the Credit Manager and the Special Assets Manager are required to attend. This process is intended to ensure the accuracy and timeliness of risk ratings, and to provide a framework for monitoring and managing problem accounts. Credits reviewed include all Pass/Watch rated loans over $750, and all Special Mention and all Substandard rated loans over $25.
|
• |
Collection Committee – The Collection Committee consist of the President and Chief Executive Officer, Chief Lending Officer, Chief Credit Officer, Chief Risk Officer, Chief Strategy Officer, and Special Assets Manager. The Collection Committee meets
bi-weekly,
or more often if necessary. The Collection Committee reviews all delinquent accounts, all
non-
accrual accounts, all bankruptcies and workouts in process. The committee is responsible to approve all charge off recommendations, placement of accounts into and out of nonaccrual status, troubled debt restructurings, OREO transactions and sale of OREO, and other actions to be taken on problem loans.
|
• |
External Loan Review – The Bank engages an external independent firm on at least an annual basis to conduct a full scope loan review. During 2020 as a result of heightened asset quality concerns due to the uncertainty of the impact of the pandemic on borrowers, the Bank had this firm perform its review during the second and fourth quarters of 2020. The scope of review is determined and structured to ensure that the number of loans and percentage of dollar coverage of the commercial loan and commercial mortgage portfolios reviewed will be sufficient to achieve the below-stated objectives and conform to regulatory standards. The objectives of the review are as follows: (i) to identify, evaluate and appropriately grade loans that have potential or existing credit weaknesses; (ii) to determine the overall quality of commercial and industrial loan and commercial real estate mortgage portfolios, including the effect of any concentrations of credit and the changes in the level of such concentrations; (iii) to identify exceptions in financial, loan and collateral documentation; (iv) to evaluate compliance with laws, regulations and internal policies relating to commercial lending activities, and; (v) to provide recommendations on policies, procedures and practices, if appropriate.
|
December 31, 2020
|
||||||||
Industry:
|
Amount
|
% of Total
Loans |
||||||
Mining, Quarry, Oil and Gas
|
$ | 4,043 | 0.35 | % | ||||
Construction-Land Subdivision
|
22,113 | 1.94 | % | |||||
Manufacturing
|
12,788 | 1.12 | % | |||||
Wholesale Trade
|
4,069 | 0.36 | % | |||||
Automobile Dealers
|
1,995 | 0.18 | % | |||||
Non-Residential
Rentals and Leasing
|
260,887 | 22.90 | % | |||||
Residential Rental and Leasing
|
117,454 | 10.31 | % | |||||
Health Care
|
19,247 | 1.69 | % | |||||
Arts, Entertainment and Recreation
|
5,064 | 0.44 | % | |||||
Hospitality
|
66,597 | 5.85 | % | |||||
Restaurants
|
8,339 | 0.73 | % | |||||
|
|
|||||||
$
|
522,596
|
|
|
45.87
|
%
|
|||
|
|
Number
of Loans |
Amount
|
% of
Outstanding Including PPP Loans |
% of
Outstanding Excluding PPP Loans |
Weighted Average
Loan to Value |
Aggregate Deferred Payments
|
|||||||||||||||||||||||||||
% of Total
Loan Classification |
% of
Loans Modified |
Principal
|
Interest
|
|||||||||||||||||||||||||||||
Commercial
|
2 | $ | 184 | 0.05 | % | 0.17 | % | $ | $ | 8 | ||||||||||||||||||||||
Construction:
|
||||||||||||||||||||||||||||||||
Commercial
|
2 | 1,136 | 2.52 | % | 33 | 50 | ||||||||||||||||||||||||||
Hospitality
|
1 | 7,318 | 25.77 | % | 66.89 | % | 77.85 | % | 238 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
3 | 8,454 | 11.52 | % | 33 | 288 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Commercial Real Estate:
|
||||||||||||||||||||||||||||||||
Multi Family
|
||||||||||||||||||||||||||||||||
Owner Occupied
|
||||||||||||||||||||||||||||||||
Non-Owner
Occupied
|
||||||||||||||||||||||||||||||||
Hospitality
|
3 | 12,285 | 34.61 | % | 66.16 | % | 67.48 | % | 318 | 255 | ||||||||||||||||||||||
Agricultural
|
1 | 359 | 1.29 | % | 10 | 15 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
4 | 12,644 | 2.52 | % | 328 | 270 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Residential Real Estate
|
10 | 572 | 0.29 | % | 22 | 24 | ||||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
19 | $ | 21,854 | 1.92 | % | 2.46 | % | $ | 383 | $ | 590 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
December 31
|
2020
|
2019
|
2018
|
2017
|
2016
|
|||||||||||||||
Nonaccruing loans:
|
||||||||||||||||||||
Commercial
|
$ | 519 | $ | 1,159 | $ | 1,141 | $ | 75 | $ | 356 | ||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
32 | 459 | 702 | 363 | 359 | |||||||||||||||
Residential
|
870 | 669 | 886 | 1,307 | 671 | |||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
1,421 | 2,287 | 2,729 | 1,745 | 1,386 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accruing troubled debt restructured loans:
|
||||||||||||||||||||
Commercial
|
1,047 | 100 | 107 | 702 | 617 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
6,444 | 577 | 752 | 2,670 | 3,229 | |||||||||||||||
Residential
|
2,472 | 1,989 | 2,054 | 2,106 | 1,959 | |||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
9,963 | 2,666 | 2,913 | 5,478 | 5,805 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Accruing loans past due 90 days or more:
|
||||||||||||||||||||
Commercial
|
82 | |||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
247 | |||||||||||||||||||
Commercial
|
170 | 150 | ||||||||||||||||||
Residential
|
146 | 18 | 290 | 533 | 357 | |||||||||||||||
Consumer
|
10 | 27 | 50 | 9 | 2 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
156 | 45 | 839 | 692 | 359 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming loans
|
11,540 | 4,998 | 6,481 | 7,915 | 7,550 | |||||||||||||||
Other real estate owned
|
422 | 82 | 721 | 236 | 625 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total nonperforming assets
|
$ | 11,962 | $ | 5,080 | $ | 7,202 | $ | 8,151 | $ | 8,175 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Ratios:
|
||||||||||||||||||||
Nonperforming loans to total loans, net
|
1.01 | % | 0.59 | % | 0.73 | % | 0.83 | % | 1.84 | % | ||||||||||
Nonperforming assets to total loans, net and OREO
|
1.05 | % | 0.60 | % | 0.81 | % | 0.85 | % | 1.99 | % |
December 31
|
2020
|
2019
|
2018
|
2017
|
2016
|
|||||||||||||||
Allowance for loan losses at beginning of year
|
$ | 7,516 | $ | 6,348 | $ | 6,306 | $ | 3,732 | $ | 4,365 | ||||||||||
Loans
charged-off:
|
||||||||||||||||||||
Commercial
|
909 | 1,128 | 206 | 43 | 767 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
78 | 249 | ||||||||||||||||||
Commercial
|
595 | 254 | 65 | |||||||||||||||||
Residential
|
2 | 26 | 104 | 38 | 68 | |||||||||||||||
Consumer
|
333 | 476 | 437 | 58 | 25 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
1,839 | 1,884 | 747 | 217 | 1,174 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Loan recovered:
|
||||||||||||||||||||
Commercial
|
11 | 484 | 11 | 5 | 70 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
61 | 6 | 6 | 10 | ||||||||||||||||
Residential
|
1 | 7 | 31 | 17 | 7 | |||||||||||||||
Consumer
|
168 | 149 | 126 | 25 | 11 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
241 | 646 | 174 | 57 | 88 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net loans
charged-off
|
1,598 | 1,238 | 573 | 160 | 1,086 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Provision for loan losses
|
6,282 | 2,406 | 615 | 2,734 | 453 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Allowance for loan losses at end of year
|
$ | 12,200 | $ | 7,516 | $ | 6,348 | $ | 6,306 | $ | 3,732 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Net charge-offs to average loans
|
0.15 | % | 0.14 | % | 0.06 | % | 0.03 | % | 0.27 | % | ||||||||||
Allowance for loan losses to total loans, net
|
1.07 | % | 0.88 | % | 0.71 | % | 0.66 | % | 0.91 | % |
2020
|
2019
|
2018
|
2017
|
2016
|
||||||||||||||||||||||||||||||||||||
December 31
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
Amount
|
%
|
||||||||||||||||||||||||||||||
Allocated allowance:
|
||||||||||||||||||||||||||||||||||||||||
Specific:
|
||||||||||||||||||||||||||||||||||||||||
Commercial
|
$ | 0.14 | % | $ | 712 | 0.27 | % | $ | 382 | 0.16 | % | $ | 56 | 0.14 | % | $ | 8 | 0.24 | % | |||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||||||||||||||
Construction
|
||||||||||||||||||||||||||||||||||||||||
Commercial
|
0.60 | 218 | 0.32 | 78 | 0.54 | 76 | 1.04 | 140 | 0.96 | |||||||||||||||||||||||||||||||
Residential
|
0.23 | 0.27 | 28 | 0.30 | 92 | 0.37 | 0.61 | |||||||||||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total specific
|
0.97 | 930 | 0.86 | 488 | 1.00 | 224 | 1.55 | 148 | 1.81 | |||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Formula:
|
||||||||||||||||||||||||||||||||||||||||
Commercial
|
1,705 | 31.38 | 1,241 | 13.66 | 780 | 13.60 | 1,150 | 14.52 | 621 | 12.26 | ||||||||||||||||||||||||||||||
Real Estate:
|
||||||||||||||||||||||||||||||||||||||||
Construction
|
1,117 | 6.44 | 473 | 7.26 | 404 | 4.43 | 379 | 3.60 | 160 | 2.10 | ||||||||||||||||||||||||||||||
Commercial
|
6,494 | 43.51 | 2,897 | 53.18 | 3,220 | 55.17 | 2,887 | 54.00 | 1,970 | 50.97 | ||||||||||||||||||||||||||||||
Residential
|
2,427 | 17.11 | 1,820 | 24.06 | 1,258 | 24.46 | 1,248 | 24.80 | 789 | 31.36 | ||||||||||||||||||||||||||||||
Consumer
|
142 | 0.59 | 155 | 0.98 | 50 | 1.34 | 37 | 1.53 | 44 | 1.50 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total formula
|
11,885 | 99.03 | 6,586 | 99.14 | 5,712 | 99.00 | 5,701 | 98.45 | 3,584 | 98.19 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total allocated allowance
|
11,885 | 100.00 | % | 7,516 | 100.00 | % | 6,200 | 100.00 | % | 5,925 | 100.00 | % | 3,732 | 100.00 | % | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Unallocated
allowance |
315 | 148 | 381 | |||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||||||
Total
|
$ | 12,200 | $ | 7,516 | $ | 6,348 | $ | 6,306 | $ | 3,732 | ||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
2018
|
||||||||||||||||||||||
Year ended December 31
|
Average
Balance |
Average
Rate |
Average
Balance |
Average
Rate |
Average
Balance |
Average
Rate |
||||||||||||||||||
Interest-bearing:
|
||||||||||||||||||||||||
Money market accounts
|
$ | 120,506 | 0.28 | % | $ | 112,536 | 0.91 | % | $ | 118,175 | 0.94 | % | ||||||||||||
NOW accounts
|
297,890 | 0.23 | 272,323 | 0.65 | 273,953 | 0.62 | ||||||||||||||||||
Savings accounts
|
145,760 | 0.10 | 133,087 | 0.14 | 148,441 | 0.08 | ||||||||||||||||||
Time deposits
|
269,313 | 1.57 | 300,103 | 1.70 | 316,418 | 1.34 | ||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total interest-bearing
|
833,469 | 0.65 | % | 818,049 | 0.99 | % | 856,987 | 0.84 | % | |||||||||||||||
Noninterest-bearing
|
166,335 | 156,925 | 159,751 | |||||||||||||||||||||
|
|
|
|
|
|
|||||||||||||||||||
Total deposits
|
$ | 999,804 | $ | 974,974 | $ | 1,016,738 | ||||||||||||||||||
|
|
|
|
|
|
December 31
|
2020
|
2019
|
2018
|
|||||||||
Within three months
|
$ | 13,969 | $ | 17,410 | $ | 9,044 | ||||||
After three months but within six months
|
10,702 | 18,992 | 10,308 | |||||||||
After six months but within twelve months
|
19,340 | 21,627 | 19,316 | |||||||||
After twelve months
|
41,954 | 49,656 | 77,394 | |||||||||
|
|
|
|
|
|
|||||||
Total
|
$ | 85,965 | $ | 107,685 | $ | 116,062 | ||||||
|
|
|
|
|
|
December 31, 2020
|
Due within
three months |
Due after
three months but within twelve months |
Due after
one year but within five years |
Due after
five years |
Total
|
|||||||||||||||
Rate-sensitive assets:
|
||||||||||||||||||||
Interest-bearing deposits in other banks
|
$ | 36,270 | $ | 36,270 | ||||||||||||||||
Investment securities
|
8,080 | $ | 11,316 | $ | 46,537 | $ | 37,762 | 103,695 | ||||||||||||
Loans held for sale
|
4,338 | 4,338 | ||||||||||||||||||
Loans, net
|
354,869 | 311,545 | 424,931 | 47,894 | 1,139,239 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total rate-sensitive assets
|
$ | 403,557 | $ | 322,861 | $ | 471,468 | $ | 85,656 | $ | 1,283,542 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Rate-sensitive liabilities:
|
||||||||||||||||||||
Money market accounts
|
$ | 130,769 | $ | 130,769 | ||||||||||||||||
NOW accounts
|
6,908 | $ | 20,724 | $ | 110,531 | $ | 179,612 | 317,775 | ||||||||||||
Savings accounts
|
2,473 | 7,420 | 39,573 | 108,827 | 158,293 | |||||||||||||||
Time deposits
|
34,246 | 80,439 | 114,584 | 5,754 | 235,023 | |||||||||||||||
Long-term debt
|
176,904 | 13,500 | 38,361 | 228,765 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total rate-sensitive liabilities
|
$ | 174,396 | $ | 285,487 | $ | 278,188 | $ | 332,554 | $ | 1,070,625 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Rate-sensitivity gap:
|
||||||||||||||||||||
Period
|
$ | 229,161 | $ | 37,374 | $ | 193,280 | $ | (246,898 | ) | |||||||||||
Cumulative
|
$ | 229,161 | $ | 266,535 | $ | 459,815 | $ | 212,917 | $ | 212,917 | ||||||||||
RSA/RSL ratio:
|
||||||||||||||||||||
Period
|
2.31 | 1.13 | 1.69 | 0.26 | ||||||||||||||||
Cumulative
|
2.31 | 1.58 | 1.62 | 1.20 | 1.20 |
• |
Funding new and existing loan commitments;
|
• |
Payment of deposits on demand or at their contractual maturity;
|
• |
Repayment of borrowings as they mature;
|
• |
Payment of lease obligations; and
|
• |
Payment of operating expenses.
|
• |
FHLB-Pgh
advances;
|
• |
Federal Reserve Bank discount window;
|
• |
Repurchase agreements;
|
• |
Brokered deposits; and
|
• |
Federal funds purchased.
|
• |
The current and expected capital requirements, including the maintenance of capital ratios in excess of minimum regulatory guidelines;
|
• |
The market value of our securities and the resulting effect on capital;
|
• |
Nonperforming asset levels and the effect deterioration in asset quality will have on capital;
|
• |
Any planned asset growth;
|
• |
The anticipated level of net earnings and capital position, taking into account the projected asset/liability position and exposure to changes in interest rates;
|
• |
The source and timing of additional funds to fulfill future capital requirements.
|
• |
Comprehensive risk assessment including consideration of the following risk elements, among others: credit; liquidity; earnings; economic value of equity; concentration; and economic, both national and local;
|
• |
Assessing current regulatory capital adequacy levels;
|
• |
Monitoring procedures consisting of stress testing, using both scenarios of previous historic data of financial crisis periods and the Federal Reserve Board’s Supervisory Capital Assessment Program (“SCAP”), and certain triggering events that would call into question the need to raise additional capital;
|
• |
Identifying realistic and readily available alternative sources for augmenting capital if higher capital levels are required;
|
• |
Evaluating dividend levels, and;
|
• |
Providing a
ten-year
financial projection for analyzing capital adequacy.
|
• |
Variations in the volume, rate and composition of earning assets and interest-bearing liabilities;
|
• |
Changes in general market interest rates; and
|
• |
The level of nonperforming assets.
|
2020 vs 2019
Increase (decrease) attributable to |
2019 vs 2018
Increase (decrease) attributable to |
|||||||||||||||||||||||
Total
|
Rate
|
Volume
|
Total
|
Rate
|
Volume
|
|||||||||||||||||||
Interest income:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable
|
$ | (1,815 | ) | $ | (10,989 | ) | $ | 9,174 | $ | (2,866 | ) | $ | (265 | ) | $ | (2,601 | ) | |||||||
Tax-exempt
|
(121 | ) | 14 | (135 | ) | 62 | 60 | 2 | ||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable
|
(1,033 | ) | (435 | ) | (598 | ) | 459 | 73 | 386 | |||||||||||||||
Tax-exempt
|
113 | (17 | ) | 130 | (152 | ) | 99 | (251 | ) | |||||||||||||||
Interest-bearing deposits
|
(646 | ) | (698 | ) | 52 | 191 | 108 | 83 | ||||||||||||||||
Federal funds sold
|
(20 | ) | (20 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest income
|
(3,502 | ) | (12,125 | ) | 8,623 | (2,326 | ) | 75 | (2,401 | ) | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Interest expense:
|
||||||||||||||||||||||||
Money market accounts
|
(688 | ) | (756 | ) | 68 | (89 | ) | (35 | ) | (54 | ) | |||||||||||||
NOW accounts
|
(1,090 | ) | (1,242 | ) | 152 | 74 | 84 | (10 | ) | |||||||||||||||
Savings accounts
|
(40 | ) | (57 | ) | 17 | 76 | 88 | (12 | ) | |||||||||||||||
Time deposits
|
(849 | ) | (363 | ) | (486 | ) | 836 | 1,069 | (233 | ) | ||||||||||||||
Short-term borrowings
|
28 | 28 | (30 | ) | (30 | ) | ||||||||||||||||||
Long-term debt
|
822 | (830 | ) | 1,652 | (232 | ) | 174 | (406 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total interest expense
|
(1,817 | ) | (3,248 | ) | 1,431 | 635 | 1,380 | (745 | ) | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Net interest income
|
$ | (1,685 | ) | $ | (8,877 | ) | $ | 7,192 | $ | (2,961 | ) | $ | (1,305 | ) | $ | (1,656 | ) | |||||||
|
|
|
|
|
|
|
|
|
|
|
|
2020
|
2019
|
|||||||||||||||||||||||
Average
Balance |
Interest Income/
Expense |
Average
Interest Rate |
Average
Balance |
Interest Income/
Expense |
Average
Interest Rate |
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable
|
$ | 1,037,721 | $ | 43,052 | 4.15 | % | $ | 843,080 | $ | 44,867 | 5.32 | % | ||||||||||||
Tax-exempt
|
32,283 | 1,118 | 3.46 | 36,191 | 1,239 | 3.42 | ||||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable
|
70,433 | 1,702 | 2.42 | 92,980 | 2,735 | 2.94 | ||||||||||||||||||
Tax-exempt
|
10,769 | 366 | 3.40 | 6,968 | 253 | 3.63 | ||||||||||||||||||
Interest-bearing deposits
|
38,088 | 120 | 0.32 | 35,473 | 766 | 2.16 | ||||||||||||||||||
Federal funds sold
|
||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total earning assets
|
1,189,294 | 46,358 | 3.90 | % | 1,014,692 | 49,860 | 4.91 | % | ||||||||||||||||
Less: allowance for loan losses
|
9,234 | 6,759 | ||||||||||||||||||||||
Other assets
|
95,256 | 106,450 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets
|
$ | 1,275,316 | $ | 1,114,383 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Money market accounts
|
$ | 120,506 | 336 | 0.28 | % | $ | 112,536 | 1,024 | 0.91 | % | ||||||||||||||
NOW accounts
|
297,890 | 693 | 0.23 | 272,323 | 1,783 | 0.65 | ||||||||||||||||||
Savings accounts
|
145,760 | 151 | 0.10 | 133,087 | 191 | 0.14 | ||||||||||||||||||
Time deposits
|
269,313 | 4,239 | 1.57 | 300,103 | 5,088 | 1.70 | ||||||||||||||||||
Short-term borrowings
|
7,311 | 28 | 0.38 | |||||||||||||||||||||
Long-term debt
|
147,374 | 1,336 | 0.91 | 6,932 | 514 | 7.41 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities
|
988,154 | 6,783 | 0.69 | % | 824,981 | 8,600 | 1.04 | % | ||||||||||||||||
Noninterest-bearing deposits
|
166,335 | 156,925 | ||||||||||||||||||||||
Other liabilities
|
13,062 | 16,423 | ||||||||||||||||||||||
Stockholders’ equity
|
107,765 | 116,054 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,275,316 | $ | 1,114,383 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Net interest income/
spread |
$ | 39,575 | 3.21 | % | $ | 41,260 | 3.87 | % | ||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest margin
|
3.33 | % | 4.07 | % | ||||||||||||||||||||
Tax-equivalent
adjustments:
|
||||||||||||||||||||||||
Loans
|
$ | 235 | $ | 260 | ||||||||||||||||||||
Investments
|
77 | 53 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total adjustments
|
$ | 312 | $ | 313 | ||||||||||||||||||||
|
|
|
|
2018
|
||||||||||||
Average
Balance |
Interest Income/
Expense |
Average
Interest Rate |
||||||||||
Assets:
|
||||||||||||
Earning assets:
|
||||||||||||
Loans:
|
||||||||||||
Taxable
|
$ | 892,331 | $ | 47,733 | 5.35 | % | ||||||
Tax-exempt
|
36,120 | 1,177 | 3.26 | |||||||||
Investments:
|
||||||||||||
Taxable
|
79,731 | 2,276 | 2.85 | |||||||||
Tax-exempt
|
14,519 | 405 | 2.79 | |||||||||
Interest-bearing deposits
|
31,307 | 575 | 1.84 | |||||||||
Federal funds sold
|
1,285 | 20 | 1.56 | |||||||||
|
|
|
|
|||||||||
Total earning assets
|
1,055,293 | 52,186 | 4.95 | % | ||||||||
Less: allowance for loan losses
|
6,436 | |||||||||||
Other assets
|
104,019 | |||||||||||
|
|
|||||||||||
Total assets
|
$ | 1,152,876 | ||||||||||
|
|
|||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||
Interest-bearing liabilities:
|
||||||||||||
Money market accounts
|
$ | 118,175 | 1,113 | 0.94 | % | |||||||
NOW accounts
|
273,953 | 1,709 | 0.62 | |||||||||
Savings accounts
|
148,441 | 115 | 0.08 | |||||||||
Time deposits
|
316,418 | 4,252 | 1.34 | |||||||||
Short-term borrowings
|
1,799 | 30 | 1.67 | |||||||||
Long-term debt
|
12,912 | 746 | 5.78 | |||||||||
|
|
|
|
|||||||||
Total interest-bearing liabilities
|
871,698 | 7,965 | 0.91 | % | ||||||||
Noninterest-bearing deposits
|
159,751 | |||||||||||
Other liabilities
|
10,692 | |||||||||||
Stockholders’ equity
|
110,735 | |||||||||||
|
|
|||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,152,876 | ||||||||||
|
|
|
|
|||||||||
Net interest income/spread
|
$ | 44,221 | 4.04 | % | ||||||||
|
|
|||||||||||
Net interest margin
|
4.19 | % | ||||||||||
Tax-equivalent
adjustments:
|
||||||||||||
Loans
|
$ | 247 | ||||||||||
Investments
|
85 | |||||||||||
|
|
|||||||||||
Total adjustments
|
$ | 332 | ||||||||||
|
|
Year ended December 31
|
2020
|
2019
|
2018
|
|||||||||
Salaries and employee benefits expense:
|
||||||||||||
Salaries and payroll taxes
|
$ | 17,514 | $ | 20,218 | $ | 18,759 | ||||||
Employee benefits
|
2,693 | 3,627 | 3,305 | |||||||||
|
|
|
|
|
|
|||||||
Salaries and employee benefits expense
|
20,207 | 23,845 | 22,064 | |||||||||
|
|
|
|
|
|
|||||||
Occupancy and equipment expenses:
|
||||||||||||
Occupancy expense
|
3,424 | 2,727 | 2,472 | |||||||||
Equipment expense
|
1,717 | 1,630 | 1,681 | |||||||||
|
|
|
|
|
|
|||||||
Occupancy and equipment expenses
|
5,141 | 4,357 | 4,153 | |||||||||
|
|
|
|
|
|
|||||||
Other expenses:
|
||||||||||||
Amortization of intangible assets
|
818 | 773 | 867 | |||||||||
Goodwill impairment
|
24,754 | |||||||||||
Net cost of operating other real estate
|
55 | 67 | 48 | |||||||||
Advertising
|
369 | 812 | 647 | |||||||||
Professional fees
|
1,335 | 1,406 | 892 | |||||||||
FDIC insurance and assessments
|
732 | 259 | 609 | |||||||||
Telecommunications and processing fees
|
4,693 | 5,039 | 4,436 | |||||||||
Director fees
|
556 | 610 | 685 | |||||||||
Bank shares tax
|
770 | 759 | 736 | |||||||||
Stationary and supplies
|
319 | 430 | 497 | |||||||||
Other
|
2,959 | 3,711 | 3,291 | |||||||||
|
|
|
|
|
|
|||||||
Other expenses
|
37,360 | 13,866 | 12,708 | |||||||||
|
|
|
|
|
|
|||||||
Total noninterest expense
|
$ | 62,708 | $ | 42,068 | $ | 38,925 | ||||||
|
|
|
|
|
|
Item 7A.
|
Quantitative and Qualitative Disclosures About Market Risk.
|
Item 8.
|
Financial Statements and Supplementary Data.
|
• |
Substantive tests included:
|
• |
Data inputs used to adjust historical loss rates by qualitative factors were agreed to source documentation.
|
• |
Evaluating the reliability of the underlying objective data used to derive the qualitative factors. Based on the underlying data, we evaluated the reasonableness of management’s designation improving, stable or declining conditions and the resulting adjustment to the historical loss experience.
|
• |
Analytical procedures were performed to evaluate changes that occurred in the allowance for loan losses for loans collectively evaluated for impairment.
|
December 31
|
2020
|
2019
|
||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 13,511 | $ | 11,838 | ||||
Interest-bearing deposits in other banks
|
36,270 | 38,510 | ||||||
Investment securities
available-for-sale
|
103,695 | 91,247 | ||||||
Loans held for sale
|
4,338 | 81 | ||||||
Loans, net
|
1,139,239 | 852,109 | ||||||
Less: allowance for loan losses
|
12,200 | 7,516 | ||||||
|
|
|
|
|||||
Net loans
|
1,127,039 | 844,593 | ||||||
Premises and equipment, net
|
18,147 | 17,852 | ||||||
Accrued interest receivable
|
4,216 | 2,414 | ||||||
Goodwill
|
24,754 | |||||||
Intangible assets
|
1,918 | 2,736 | ||||||
Other assets
|
48,420 | 45,929 | ||||||
|
|
|
|
|||||
Total assets
|
$ | 1,357,554 | $ | 1,079,954 | ||||
|
|
|
|
|||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 173,600 | $ | 147,405 | ||||
Interest-bearing
|
841,860 | 793,075 | ||||||
|
|
|
|
|||||
Total deposits
|
1,015,460 | 940,480 | ||||||
Short-term borrowings
|
||||||||
Long-term debt
|
228,765 | 6,971 | ||||||
Accrued interest payable
|
1,038 | 435 | ||||||
Other liabilities
|
14,859 | 13,958 | ||||||
|
|
|
|
|||||
Total liabilities
|
1,260,122 | 961,844 | ||||||
|
|
|
|
|||||
Stockholders’ equity:
|
||||||||
Common stock, no par value, authorized 20,000,000 shares, issued and outstanding: 2020; 9,306,442 shares; 2019; 9,216,616 shares
|
102,662 | 102,206 | ||||||
Capital surplus
|
292 | 112 | ||||||
Retained earnings (accumulated deficit)
|
(6,457 | ) | 16,140 | |||||
Accumulated other comprehensive gain (loss)
|
935 | (348 | ) | |||||
|
|
|
|
|||||
Total stockholders’ equity
|
97,432 | 118,110 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity
|
$ | 1,357,554 | $ | 1,079,954 | ||||
|
|
|
|
Year Ended December 31
|
2020
|
2019
|
||||||
Interest income:
|
||||||||
Interest and fees on loans:
|
||||||||
Taxable
|
$ | 43,052 | $ | 44,867 | ||||
Tax-exempt
|
883 | 979 | ||||||
Interest on investment securities:
|
||||||||
Taxable
|
1,702 | 2,735 | ||||||
Tax-exempt
|
289 | 200 | ||||||
Interest on interest-bearing deposits in other banks
|
120 | 766 | ||||||
|
|
|
|
|||||
Total interest income
|
46,046 | 49,547 | ||||||
|
|
|
|
|||||
Interest expense:
|
||||||||
Interest on deposits
|
5,419 | 8,086 | ||||||
Interest on short-term borrowings
|
28 | |||||||
Interest on long-term debt
|
1,336 | 514 | ||||||
|
|
|
|
|||||
Total interest expense
|
6,783 | 8,600 | ||||||
|
|
|
|
|||||
Net interest income
|
39,263 | 40,947 | ||||||
Provision for loan losses
|
6,282 | 2,406 | ||||||
|
|
|
|
|||||
Net interest income after provision for loan losses
|
32,981 | 38,541 | ||||||
|
|
|
|
|||||
Noninterest income:
|
||||||||
Service charges, fees and commissions
|
4,133 | 5,186 | ||||||
Commission and fees on fiduciary activities
|
961 | 1,080 | ||||||
Wealth management income
|
876 | 940 | ||||||
Mortgage banking income
|
1,233 | 567 | ||||||
Bank owned life insurance investment income
|
755 | 763 | ||||||
Net gain (loss) on sale of investment securities
available-for-sale
|
815 | (22 | ) | |||||
|
|
|
|
|||||
Total noninterest income
|
8,773 | 8,514 | ||||||
|
|
|
|
|||||
Noninterest expense:
|
||||||||
Salaries and employee benefits expense
|
20,207 | 23,845 | ||||||
Net occupancy and equipment expense
|
5,141 | 4,357 | ||||||
Amortization of intangible assets
|
818 | 773 | ||||||
Goodwill impairment
|
24,754 | |||||||
Net cost of operation of other real estate
|
55 | 67 | ||||||
Other expenses
|
11,733 | 13,026 | ||||||
|
|
|
|
|||||
Total noninterest expense
|
62,708 | 42,068 | ||||||
|
|
|
|
|||||
Income (loss) before income taxes
|
(20,954 | ) | 4,987 | |||||
Income tax expense
|
257 | 701 | ||||||
|
|
|
|
|||||
Net income (loss)
|
(21,211 | ) | 4,286 | |||||
|
|
|
|
|||||
Other comprehensive income (loss):
|
||||||||
Unrealized gain on investment securities
available-for-sale
|
2,101 | 2,837 | ||||||
Reclassification adjustment for net (gain) loss on sales included in net income
|
(815 | ) | 22 | |||||
Change in pension liability
|
166 | 16 | ||||||
Change in cash flow hedge
|
172 | |||||||
Income tax expense related to other comprehensive income
|
341 | 604 | ||||||
|
|
|
|
|||||
Other comprehensive income, net of income taxes
|
1,283 | 2,271 | ||||||
|
|
|
|
|||||
Comprehensive income (loss)
|
$ | (19,928 | ) | $ | 6,557 | |||
|
|
|
|
|||||
Per share data:
|
||||||||
Net income (loss):
|
||||||||
Basic
|
$ | (2.29 | ) | $ | 0.47 | |||
Diluted
|
$ | (2.29 | ) | $ | 0.47 | |||
Average common shares outstanding:
|
||||||||
Basic
|
9,258,493 | 9,167,415 | ||||||
Diluted
|
9,258,493 | 9,181,752 | ||||||
Dividends declared
|
$ | 0.15 | $ | 0.35 |
For the two years ended December 31,
|
Common
Stock
|
Capital
Surplus
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
|
|||||||||||||||
Balance, January 1, 2020
|
$ | 102,206 | $ | 112 | $ | 16,140 | $ | (348 | ) | $ | 118,110 | |||||||||
Net income
|
(21,211 | ) | (21,211 | ) | ||||||||||||||||
Other comprehensive income, net of income taxes
|
1,283 | 1,283 | ||||||||||||||||||
Issuance under ESPP, 401k and Dividend Reinvestment plans: 75,948 shares
|
543 | 543 | ||||||||||||||||||
Issuance of restricted stock awards: 13,878 shares
|
(87 | ) | 180 | 93 | ||||||||||||||||
Dividends declared, $0.15 per share
|
(1,386 | ) | (1,386 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2020
|
$ | 102,662 | $ | 292 | $ | (6,457 | ) | $ | 935 | $ | 97,432 | |||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, January 1, 2019
|
$ | 101,134 | $ | 332 | $ | 15,063 | $ | (2,619 | ) | $ | 113,910 | |||||||||
Net income
|
4,286 | 4,286 | ||||||||||||||||||
Other comprehensive income, net of income taxes
|
2,271 | 2,271 | ||||||||||||||||||
Issuance under ESPP, 401k and Dividend Reinvestment plans: 57,356 shares
|
644 | 644 | ||||||||||||||||||
Exercise of stock options: 22,776 shares
|
241 | (33 | ) | 208 | ||||||||||||||||
Issuance of restricted stock awards: 14,929 shares
|
187 | (187 | ) | |||||||||||||||||
Dividends declared, $0.35 per share
|
(3,209 | ) | (3,209 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, December 31, 2019
|
$ | 102,206 | $ | 112 | $ | 16,140 | $ | (348 | ) | $ | 118,110 | |||||||||
|
|
|
|
|
|
|
|
|
|
Year Ended December 31
|
2020
|
2019
|
||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$ | (21,211 | ) | $ | 4,286 | |||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization of premises and equipment
|
1,186 | 1,248 | ||||||
Provision for loan losses
|
6,282 | 2,406 | ||||||
Stock based compensation
|
93 | |||||||
Net amortization of investment securities
available-for-sale
|
859 | 785 | ||||||
Net cost of operation of other real estate owned
|
55 | 67 | ||||||
Net (gain) loss on sale of investment securities
available-for-sale
|
(815 | ) | 22 | |||||
Accretion of purchase adjustment on loans
|
(973 | ) | (3,245 | ) | ||||
Amortization of intangible assets
|
818 | 773 | ||||||
Amortization of assumed discount on long-term debt
|
83 | 79 | ||||||
Amortization of long-term debt issuance costs
|
43 | |||||||
Impairment of goodwill
|
24,754 | |||||||
Deferred income taxes
|
25 | 1,009 | ||||||
Proceeds from sale of loans originated for sale
|
35,874 | 17,032 | ||||||
Net gain on sale of loans originated for sale
|
(1,233 | ) | (567 | ) | ||||
Loans originated for sale
|
(38,898 | ) | (15,909 | ) | ||||
Bank owned life insurance investment income
|
(755 | ) | (763 | ) | ||||
Net change in:
|
||||||||
Accrued interest receivable
|
(1,802 | ) | 596 | |||||
Other assets
|
(798 | ) | (856 | ) | ||||
Accrued interest payable
|
603 | (49 | ) | |||||
Other liabilities
|
1,067 | (1,658 | ) | |||||
|
|
|
|
|||||
Net cash provided by operating activities
|
5,257 | 5,256 | ||||||
|
|
|
|
|||||
Cash flows from investing activities:
|
||||||||
Investment securities
available-for-sale:
|
||||||||
Purchases
|
(53,323 | ) | (32,058 | ) | ||||
Proceeds from repayments
|
14,305 | 17,308 | ||||||
Proceeds from sales
|
27,812 | 30,232 | ||||||
Proceeds from the sale of other real estate owned
|
366 | 753 | ||||||
Net (increase) decrease in restricted equity securities
|
(769 | ) | 64 | |||||
Net (increase) decrease in loans
|
(288,516 | ) | 42,901 | |||||
Purchases of premises and equipment
|
(1,481 | ) | (1,545 | ) | ||||
Proceeds from sale of equipment
|
113 | |||||||
Purchase of bank owned life insurance
|
(23 | ) | (22 | ) | ||||
|
|
|
|
|||||
Net cash provided by (used in) investing activities
|
(301,629 | ) | 57,746 | |||||
|
|
|
|
|||||
Cash flows from financing activities:
|
||||||||
Net increase (decrease) in deposits
|
74,980 | (64,113 | ) | |||||
Net decrease in short-term borrowings
|
||||||||
Repayment of long-term debt
|
(13,088 | ) | ||||||
Proceeds from long-term debt
|
234,756 | |||||||
Issuance under DRP, 401k and ESPP plans
|
543 | 644 | ||||||
Proceeds from exercise of options
|
208 | |||||||
Cash dividends paid
|
(1,386 | ) | (3,209 | ) | ||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities
|
295,805 | (66,470 | ) | |||||
|
|
|
|
|||||
Net decrease in cash and cash equivalents
|
(567 | ) | (3,468 | ) | ||||
Cash and cash equivalents—beginning
|
50,348 | 53,816 | ||||||
|
|
|
|
|||||
Cash and cash equivalents—ending
|
$ | 49,781 | $ | 50,348 | ||||
|
|
|
|
Supplemental disclosures:
|
|
|
||||||
Cash paid during the period for:
|
|
|
||||||
Interest
|
|
$
|
6,180
|
|
|
$
|
8,649
|
|
Federal income taxes
|
|
$
|
425
|
|
|
|||
Lease liabilities arising from obtaining
right-of-use
|
|
|
$
|
3,892
|
|
|||
Noncash items from investing activities:
|
|
|
||||||
Other real estate acquired in settlement of loans
|
|
$
|
761
|
|
|
$
|
181
|
|
Noncash items from investing and operating activities:
|
|
|
||||||
Noncash transfer of owned properties
available-for-sale
|
|
|
$
|
540
|
|
• |
Rate Modification — A modification in which the interest rate is changed to a below market rate.
|
• |
Term Modification — A modification in which the maturity date, timing of payments or frequency of payments is changed.
|
• |
Interest Only Modification — A modification in which the loan is converted to interest only payments for a period of time.
|
• |
Payment Modification — A modification in which the dollar amount of the payment is changed, other than an interest only modification described above.
|
• |
Combination Modification — Any other type of modification, including the use of multiple categories above.
|
• |
Pass — A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss or designated as Special Mention.
|
• |
Special Mention — A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification.
|
• |
Substandard — A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.
|
• |
Doubtful — A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.
|
• |
Loss — A loan classified as Loss is considered uncollectible and of such little value that its continuance as a bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be effected in the future.
|
Premises and leasehold improvements
|
7 – 50 years | |||
Leasehold improvements
|
10 – 30 years | |||
Furniture,
fixtures
and
equipment
|
3 – 10 years |
• |
Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.
|
• |
Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.
|
• |
Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.
|
December 31
|
2020
|
2019
|
||||||
Net unrealized gain on investment securities
available-for-sale
|
$ | 1,962 | $ | 676 | ||||
Income tax expense
|
412 | 142 | ||||||
|
|
|
|
|||||
Net of income taxes
|
1,550 | 534 | ||||||
|
|
|
|
|||||
Benefit plan adjustments
|
(951 | ) | (1,117 | ) | ||||
Income tax benefit
|
(200 | ) | (235 | ) | ||||
|
|
|
|
|||||
Net of income taxes
|
(751 | ) | (882 | ) | ||||
|
|
|
|
|||||
Derivative adjustments
|
172 | |||||||
Income tax expense
|
36 | |||||||
|
|
|
|
|||||
Net of income taxes
|
136 | |||||||
|
|
|
|
|||||
Accumulated other comprehensive income (loss)
|
$ | 935 | $ | (348 | ) | |||
|
|
|
|
Year ended December 31
|
2020
|
2019
|
||||||
Unrealized gain on investment securities
available-for-sale
|
$ | 2,101 | $ | 2,837 | ||||
|
|
|
|
|||||
Net (gain) loss on the sale of investment securities
available-for-sale(1)
|
(815 | ) | 22 | |||||
|
|
|
|
|||||
Benefit plans:
|
||||||||
Amortization of actuarial loss(2)
|
111 | 104 | ||||||
Actuarial gain (loss)
|
55 | (88 | ) | |||||
|
|
|
|
|||||
Net change in benefit plan liabilities
|
166 | 16 | ||||||
|
|
|
|
|||||
Net change in derivative fair value
|
172 | |||||||
|
|
|
|
|||||
Other comprehensive income gain before taxes
|
1,624 | 2,875 | ||||||
Income tax expense
|
341 | 604 | ||||||
|
|
|
|
|||||
Other comprehensive income
|
$ | 1,283 | $ | 2,271 | ||||
|
|
|
|
(1)
|
Represents amounts reclassified out of accumulated comprehensive income and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income.
|
(2)
|
Represents amounts reclassified out of accumulated comprehensive income and included in the computation of net periodic pension expense.
|
For the Year Ended December 31
|
|
2020
|
|
|
2019
|
|
||
Numerator:
|
|
|
||||||
Net income
|
$ | (21,211 | ) | $ | 4,286 | |||
|
|
|
|
|||||
Denominator:
|
||||||||
Basic
|
9,258,493 | 9,167,415 | ||||||
Dilutive options
|
14,337 | |||||||
|
|
|
|
|||||
Diluted
|
9,258,493 | 9,181,752 | ||||||
|
|
|
|
|||||
Earnings (loss) per share:
|
||||||||
Basic
|
$ | (2.29 | ) | $ | 0.47 | |||
Diluted
|
$ | (2.29 | ) | $ | 0.47 |
December 31, 2020
|
|
Amortized
Cost |
|
|
Gross
Unrealized Gains |
|
|
Gross
Unrealized Losses |
|
|
Fair
Value |
|
||||
State and municipals:
|
|
|
|
|
||||||||||||
Taxable
|
$ | 22,317 | $ | 400 | $ | 143 | $ | 22,574 | ||||||||
Tax-exempt
|
17,988 | 423 | 16 | 18,395 | ||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. Government agencies
|
26,051 | 940 | 26,991 | |||||||||||||
U.S. Government-sponsored enterprises
|
24,627 | 442 | 17 | 25,052 | ||||||||||||
Corporate debt obligations
|
10,750 | 56 | 123 | 10,683 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 101,733 | $ | 2,261 | $ | 299 | $ | 103,695 | ||||||||
|
|
|
|
|
|
|
|
December 31, 2019
|
|
Amortized
Cost |
|
|
Gross
Unrealized Gains |
|
|
Gross
Unrealized Losses |
|
|
Fair
Value |
|
||||
State and municipals:
|
|
|
|
|
||||||||||||
Taxable
|
$ | 24,365 | $ | 466 | $ | 7 | $ | 24,824 | ||||||||
Tax-exempt
|
4,260 | 73 | 4,333 | |||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. Government agencies
|
36,024 | 294 | 184 | 36,134 | ||||||||||||
U.S. Government-sponsored enterprises
|
22,422 | 265 | 42 | 22,645 | ||||||||||||
Corporate debt obligations
|
3,500 | 189 | 3,311 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 90,571 | $ | 1,098 | $ | 422 | $ | 91,247 | ||||||||
|
|
|
|
|
|
|
|
December 31, 2020
|
|
Fair
Value |
|
|
Within one year
|
$ | 202 | ||
After one but within five years
|
8,727 | |||
After five but within ten years
|
14,889 | |||
After ten years
|
27,834 | |||
|
|
|||
51,652 | ||||
Mortgage-backed securities
|
52,043 | |||
|
|
|||
Total
|
$ | 103,695 | ||
|
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
December 31, 2020
|
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||
State and municipals:
|
||||||||||||||||||||||||
Taxable
|
$ | 11,586 | $ | 143 | $ | $ | $ | 11,586 | $ | 143 | ||||||||||||||
Tax-exempt
|
1,737 | 16 | 1,737 | 16 | ||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
U.S. Government agencies
|
5,960 | 17 | 5,960 | 17 | ||||||||||||||||||||
U.S. Government-sponsored enterprises
|
||||||||||||||||||||||||
Corporate debt obligations
|
3,378 | 123 | 3,378 | 123 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 19,283 | $ | 176 | $ | 3,378 | $ | 123 | $ | 22,661 | $ | 299 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
December 31, 2019
|
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
Fair
Value
|
Unrealized
Losses
|
|||||||||||||||||
State and municipals:
|
||||||||||||||||||||||||
Taxable
|
$ | 1.280 | $ | 7 | $ | $ | $ | 1,280 | $ | 7 | ||||||||||||||
Tax-exempt
|
||||||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
U.S. Government agencies
|
15,799 | 184 | 15,799 | 184 | ||||||||||||||||||||
U.S. Government-sponsored enterprises
|
3,245 | 42 | 3,245 | 42 | ||||||||||||||||||||
Corporate debt obligations
|
3,311 | 189 | 3,311 | 189 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 17,079 | $ | 191 | $ | 6,556 | $ | 231 | $ | 23,635 | $ | 422 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
December 31
|
|
2020
|
|
|
2019
|
|
||
Commercial
|
$ | 359,080 | $ | 118,658 | ||||
Real estate:
|
||||||||
Construction
|
73,402 | 61,831 | ||||||
Commercial
|
502,495 | 455,901 | ||||||
Residential
|
197,596 | 207,354 | ||||||
Consumer
|
6,666 | 8,365 | ||||||
|
|
|
|
|||||
Total
|
$ | 1,139,239 | $ | 852,109 | ||||
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
December 31, 2020
|
Commercial
|
Construction
|
Commercial
|
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning Balance January 1, 2020
|
$ | 1,953 | $ | 473 | $ | 3,115 | $ | 1,820 | $ | 155 | $ | $ | 7,516 | |||||||||||||||
Charge-offs
|
(909 | ) | (595 | ) | (2 | ) | (333 | ) | (1,839 | ) | ||||||||||||||||||
Recoveries
|
11 | 61 | 1 | 168 | 241 | |||||||||||||||||||||||
Provisions
|
650 | 644 | 3,913 | 608 | 152 | 315 | 6,282 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance
|
$ | 1,705 | $ | 1,117 | $ | 6,494 | $ | 2,427 | $ | 142 | $ | 315 | $ | 12,200 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
December 31, 2019
|
Commercial
|
Construction
|
Commercial
|
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning Balance January 1, 2019
|
$ | 1,162 | $ | 404 | $ | 3,298 | $ | 1,286 | $ | 50 | $ | 148 | $ | 6,348 | ||||||||||||||
Charge-offs
|
(1,128 | ) | (254 | ) | (26 | ) | (476 | ) | (1,884 | ) | ||||||||||||||||||
Recoveries
|
484 | 6 | 7 | 149 | 646 | |||||||||||||||||||||||
Provisions
|
1,435 | 69 | 65 | 553 | 432 | (148 | ) | 2,406 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance
|
$ | 1,953 | $ | 473 | $ | 3,115 | $ | 1,820 | $ | 155 | $ | $ | 7,516 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
December 31, 2020
|
Commercial
|
Construction
|
Commercial
|
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 1,705 | $ | 1,117 | $ | 6,494 | $ | 2,427 | $ | 142 | $ | 315 | $ | 12,200 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: individually evaluated for impairment
|
||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: collectively evaluated for impairment
|
1,705 | 1,117 | 6,494 | 2,427 | 142 | 315 | 12,200 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: purchased credit impaired loans
|
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 359,080 | $ | 73,402 | $ | 502,495 | $ | 197,596 | $ | 6,666 | $ | $ | 1,139,239 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: individually evaluated for impairment
|
1,565 | 6,444 | 2,494 | 10,503 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: collectively evaluated for impairment
|
357,515 | 73,402 | 495,674 | 194,939 | 6,666 | 1,128,196 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: purchased credit impaired loans
|
$ | $ | $ | 377 | $ | 163 | $ | $ | $ | 540 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
December 31, 2020
|
Commercial
|
Construction
|
Commercial
|
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 1,953 | $ | 473 | $ | 3,115 | $ | 1,820 | $ | 155 | $ | $ | 7,516 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: individually evaluated for impairment
|
712 | 218 | 930 | |||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: collectively evaluated for impairment
|
1,241 | 473 | 2,897 | 1,820 | 155 | 6,586 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: purchased credit impaired loans
|
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 118,658 | $ | 61,831 | $ | 455,901 | $ | 207,354 | $ | 8,365 | $ | $ | 852,109 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: individually evaluated for impairment
|
2,260 | 1,224 | 2,085 | 5,569 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: collectively evaluated for impairment
|
116,390 | 61,831 | 453,156 | 205,026 | 8,365 | 844,768 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance: purchased credit impaired loans
|
$ | 8 | $ | $ | 1,521 | $ | 243 | $ | $ | $ | 1,772 | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020:
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial
|
$ | 353,758 | $ | 3,147 | $ | 2,175 | $ | $ | 359,080 | |||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
63,838 | 1,817 | 7,747 | 73,402 | ||||||||||||||||
Commercial
|
451,190 | 29,180 | 22,125 | 502,495 | ||||||||||||||||
Residential
|
191,775 | 2,670 | 3,151 | 197,596 | ||||||||||||||||
Consumer
|
6,666 | 6,666 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 1,067,227 | $ | 36,814 | $ | 35,198 | $ | $ | 1,139,239 | |||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2019:
|
Pass
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial
|
$ | 109,190 | $ | 5,992 | $ | 3,476 | $ | $ | 118,658 | |||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
61,678 | 153 | 61,831 | |||||||||||||||||
Commercial
|
430,771 | 9,271 | 15,859 | 455,901 | ||||||||||||||||
Residential
|
203,381 | 1,437 | 2,536 | 207,354 | ||||||||||||||||
Consumer
|
8,365 | 8,365 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 813,385 | $ | 16,853 | $ | 21,871 | $ | $ | 852,109 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Accrual Loans
|
||||||||||||||||||||||||||||
December 31, 2020
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 or More
Days Past
Due
|
Total Past
Due
|
Current
|
Nonaccrual
Loans
|
Total Loans
|
|||||||||||||||||||||
Commercial
|
$ | 64 | $ | 1 | $ | $ | 65 | $ | 358,496 | $ | 519 | $ | 359,080 | |||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Construction
|
73,402 | 73,402 | ||||||||||||||||||||||||||
Commercial
|
1,238 | 4,063 | 5,301 | 496,785 | 32 | 502,118 | ||||||||||||||||||||||
Residential
|
2,125 | 2,993 | 146 | 5,264 | 191,299 | 870 | 197,433 | |||||||||||||||||||||
Consumer
|
22 | 20 | 10 | 52 | 6,614 | 6,666 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | 3,449 | $ | 7,077 | $ | 156 | $ | 10,682 | $ | 1,126,596 | $ | 1,421 | $ | 1,138,699 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Purchased credit impaired loans
|
540 | |||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total Loans
|
$ | 1,139,239 | ||||||||||||||||||||||||||
|
|
Accrual Loans
|
||||||||||||||||||||||||||||
December 31, 2019
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 or More
Days Past
Due
|
Total Past
Due
|
Current
|
Nonaccrual
Loans
|
Total Loans
|
|||||||||||||||||||||
Commercial
|
$ | 137 | $ | $ | $ | 137 | $ | 117,354 | $ | 1,159 | $ | 118,650 | ||||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Construction
|
9 | 9 | 61,822 | 61,831 | ||||||||||||||||||||||||
Commercial
|
147 | 147 | 453,774 | 459 | 454,380 | |||||||||||||||||||||||
Residential
|
3,402 | 820 | 18 | 4,240 | 202,202 | 669 | 207,111 | |||||||||||||||||||||
Consumer
|
84 | 14 | 27 | 125 | 8,240 | 8,365 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | 3,779 | $ | 834 | $ | 45 | $ | 4,658 | $ | 843,392 | $ | 2,287 | $ | 850,337 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Purchased credit impaired loans
|
1,772 | |||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total Loans
|
$ | 852,109 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
||||||||
December 31, 2020
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
|||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$ | 1,565 | $ | 1,675 | $ | 1,356 | $ | 416 | ||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
6,821 | 6,821 | 4,392 | 311 | ||||||||||||||||
Residential
|
2,657 | 2,787 | 2,493 | 146 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
11,043 | 11,283 | 8,241 | 873 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
561 | |||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
391 | 65 | ||||||||||||||||||
Residential
|
||||||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
952 | 65 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial
|
1,565 | 1,675 | 1,917 | 416 | ||||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
6,821 | 6,821 | 4,783 | 376 | ||||||||||||||||
Residential
|
2,657 | 2,787 | 2,493 | 146 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 11,043 | $ | 11,283 | $ | 9,193 | $ | 938 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Year Ended
|
|
||||||||
December 31, 2019
|
|
Recorded
Investment
|
|
|
Unpaid
Principal
Balance
|
|
|
Related
Allowance
|
|
|
Average
Recorded
Investment
|
|
|
Interest
Income
Recognized
|
|
|||||
With no related allowance:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
$ | 1,147 | $ | 1,257 | $ | 648 | $ | 660 | ||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
1,963 | 1,963 | 3,124 | 1,456 | ||||||||||||||||
Residential
|
2,329 | 2,467 | 2,397 | 173 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
5,439 | 5,687 | 6,169 | 2,289 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
1,121 | 1,121 | $ | 712 | 685 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
782 | 936 | 218 | 658 | 17 | |||||||||||||||
Residential
|
91 | |||||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
1,903 | 2,057 | 930 | 1,434 | 17 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial
|
2,268 | 2,378 | 712 | 1,333 | 660 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
2,745 | 2,899 | 218 | 3,782 | 1,473 | |||||||||||||||
Residential
|
2,329 | 2,467 | 2,488 | 173 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 7,342 | $ | 7,744 | $ | 930 | $ | 7,603 | $ | 2,306 | ||||||||||
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
Number of
Contracts |
|
|
Pre-Modification
Outstanding Recorded Investment |
|
|
Post-Modification
Outstanding Recorded Investment |
|
|
Recorded
Investment |
|
||||
Commercial
|
5 | $ | 1,042 | $ | 1,042 | $ | 954 | |||||||||
Commercial real estate
|
3 | 6,063 | 6,063 | 6,243 | ||||||||||||
Residential real estate
|
1 | 512 | 512 | 502 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||
December 31, 2019
|
|
Number of
Contracts |
|
|
Pre-Modification
Outstanding Recorded Investment |
|
|
Post-Modification
Outstanding Recorded Investment |
|
|
Recorded
Investment |
|
||||
Residential real estate
|
|
|
1
|
|
|
$
|
23
|
|
|
$
|
23
|
|
|
$
|
28
|
|
2020
|
2019
|
|||||||||||||||
December 31
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
Gross
Carrying
Amount
|
Accumulated
Amortization
|
||||||||||||
Core deposit intangibles
|
$ | 4,558 | $ | 2,942 | $ | 4,558 | $ | 2,289 | ||||||||
Customer list intangible
|
1,082 | 780 | 1,082 | 671 | ||||||||||||
Trade name intangibles
|
496 | 496 | 496 | 440 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total intangible assets
|
$ | 6,136 | $ | 4,218 | $ | 6,136 | $ | 3,400 | ||||||||
|
|
|
|
|
|
|
|
Balance, January 1, 2020
|
$ | 24,754 | ||
Less: Goodwill impairment
|
24,754 | |||
|
|
|||
Balance, December 31, 2020
|
$ | |||
|
|
December 31
|
|
2020
|
|
|
2019
|
|
||
Other real estate owned
|
$ | 422 | $ | 82 | ||||
Bank owned life insurance
|
31,425 | 30,647 | ||||||
Restricted equity securities
|
1,759 | 990 | ||||||
Deferred tax assets
|
3,907 | 4,272 | ||||||
Lease
right-of-use
|
2,278 | 3,856 | ||||||
Other assets
|
8,629 | 6,082 | ||||||
|
|
|
|
|||||
Total
|
$ | 48,420 | $ | 45,929 | ||||
|
|
|
|
Years Ended December 31
|
|
2020
|
|
|
2019
|
|
||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||||||
Operating cash flows from operating leases
|
$ | 753 | $ | 663 | ||||
ROU assets obtained in exchange for lease liabilities
|
4,430 | |||||||
Weighted average remaining lease term – operating leases, in years
|
8.82 | 9.16 | ||||||
Weighted average discount rate – operating leases
|
2.87% | 3.00% |
2021
|
$ | 634 | ||
2022
|
570 | |||
2023
|
366 | |||
2024
|
200 | |||
2025
|
134 | |||
Thereafter
|
827 | |||
|
|
|||
Total lease payments
|
2,731 | |||
Less imputed interest
|
(409 | ) | ||
|
|
|||
$ | 2,322 | |||
|
|
December 31
|
|
2020
|
|
|
2019
|
|
||
Interest-bearing deposits:
|
|
|
||||||
Money market accounts
|
$ | 130,769 | $ | 101,373 | ||||
Now accounts
|
317,775 | 273,798 | ||||||
Savings accounts
|
158,293 | 132,150 | ||||||
Time deposits
|
235,023 | 285,754 | ||||||
|
|
|
|
|||||
Total interest-bearing deposits
|
841,860 | 793,075 | ||||||
Noninterest-bearing deposits
|
173,600 | 147,405 | ||||||
|
|
|
|
|||||
Total deposits
|
$ | 1,015,460 | $ | 940,480 | ||||
|
|
|
|
2021
|
$ | 114,685 | ||
2022
|
64,323 | |||
2023
|
37,544 | |||
2024
|
7,351 | |||
2025
|
5,366 | |||
Thereafter
|
5,754 | |||
|
|
|||
$ | 235,023 |
At and for the year ended December 31, 2020
|
||||||||||||||||||||
Ending
Balance |
Average
Balance |
Maximum
Month-End
Balance |
Weighted
Average Rate for the Year |
Weighted
Average Rate at End of the Year |
||||||||||||||||
FHLB-Pgh
Open Repo Plus advances
|
$ | $ | 7,311 | $ | 0.38 | % | ||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | $ | 7,311 | $ | 0.38 | % |
Interest Rate
|
||||||||||||||||||||
Loan Type
|
Maturity
|
Fixed
|
Adjustable
|
2020
|
2019
|
|||||||||||||||
PPPLF
|
May 3, 2022
|
0.35 | % | $ | 176,904 | |||||||||||||||
FHLB
|
March 10, 2023 | 0.75 | % | 6,500 | ||||||||||||||||
FHLB
|
March 10, 2025 | 0.88 | % | 7,000 | ||||||||||||||||
FHLB
|
March 10, 2027 | 1.07 | % | 6,500 | ||||||||||||||||
Subordinated Debt – Trust Preferred I
|
September 17, 2033 | 3.18 |
%
|
4,420 | $ | 4,229 | ||||||||||||||
Subordinated Debt – Trust Preferred II
|
September 15, 2035 | 1.76 |
%
|
2,913 | 2,742 | |||||||||||||||
Subordinated Debt
|
October 15, 2030 | 5.75 | % | 24,528 | ||||||||||||||||
|
|
|
|
|||||||||||||||||
$ | 228,765 | $ | 6,971 | |||||||||||||||||
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||||
December 31, 2020
|
|
Amount
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||
State and Municipals:
|
||||||||||||||||
Taxable
|
$ | 22,574 | $ | 22,574 | ||||||||||||
Tax-exempt
|
18,395 | 18,395 | ||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. Government agencies
|
26,991 | 26,991 | ||||||||||||||
U.S. Government-sponsored enterprises
|
25,052 | 25,052 | ||||||||||||||
Corporate debt obligations
|
10,683 | 10,683 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 103,695 | $ | 103,695 | ||||||||||||
|
|
|
|
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||||
December 31, 2019
|
Amount
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
||||||||||||
State and Municipals:
|
||||||||||||||||
Taxable
|
$ | 24,824 | $ | 24,824 | ||||||||||||
Tax-exempt
|
4,333 | 4,333 | ||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. Government agencies
|
36,134 | 36,134 | ||||||||||||||
U.S. Government-sponsored enterprises
|
22,645 | 22,645 | ||||||||||||||
Corporate debt obligations
|
3,311 | 3,311 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 91,247 | $ | 91,247 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Fair Value Measurement Using
|
||||||||||||||||
December 31, 2020
|
Amount
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
||||||||||||
Other real estate owned
|
$ | 422 | $ | 422 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 422 | $ | 422 | ||||||||||||
|
|
|
|
|
|
|
|
Fair Value Measurement Using
|
||||||||||||||||
December 31, 2019
|
Amount
|
(Level 1)
Quoted Prices
in Active
Markets for
Identical
Assets
|
(Level 2)
Significant
Other
Observable
Inputs
|
(Level 3)
Significant
Unobservable
Inputs
|
||||||||||||
Other real estate owned
|
$ | 82 | $ | 82 | ||||||||||||
Impaired loans, net of related allowance
|
973 | 973 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 1,055 | $ | 1,055 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||
December 31, 2020
|
|
Fair Value
Estimate |
|
|
Valuation Techniques
|
|
Unobservable Input
|
|
Range (Weighted Average)
|
|
Other real estate owned
|
$ | 422 | Appraisal of collateral | Appraisal adjustments | 20.0% to 14.0% (8.4%) | |||||
Liquidation expenses | 10.0% to 10.0% (10.0%) | |||||||||
|
|
|
||||||||
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||
December 31, 2019
|
Fair Value
Estimate
|
Valuation Techniques
|
Unobservable Input
|
Range (Weighted Average)
|
||||||
Other real estate owned
|
$ | 82 | Appraisal of collateral | Appraisal adjustments | 42.0% to 60.0% (52.0%) | |||||
Liquidation expenses | 10.0% to 10.0% (10.0%) | |||||||||
Impaired loans
|
$ | 973 | Appraisal of collateral | Appraisal adjustments | 10.0% to 50.0% (22.0%) | |||||
Liquidation expenses | 9.5% to 12.3% (8.8%) |
Fair Value Hierarchy
|
||||||||||||||||||||
December 31, 2020
|
Carrying
Amount
|
Fair Value
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 49,781 | $ | 49,781 | $ | 49,781 | ||||||||||||||
Investment securities
available-for-sale
|
103,695 | 103,695 | $ | 103,695 | ||||||||||||||||
Loans held for sale
|
4,338 | 4,338 | 4,338 | |||||||||||||||||
Net loans
(1)
|
1,127,039 | 1,116,618 | $ | 1,116,618 | ||||||||||||||||
Accrued interest receivable
|
4,216 | 4,216 | 578 | 3,638 | ||||||||||||||||
Restricted equity securities
|
1,759 | 1,759 | ||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$ | 1,015,460 | $ | 1,018,529 | $ | 1,018,529 | ||||||||||||||
Long-term borrowings
|
228,765 | 231,748 | 231,748 | |||||||||||||||||
Accrued interest payable
|
1,038 | 1,038 | 1,038 | |||||||||||||||||
Interest rate swap hedges
|
172 | 172 | 172 |
Fair Value Hierarchy
|
||||||||||||||||||||
December 31, 2019
|
Carrying
Amount
|
Fair Value
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||||
Financial assets:
|
||||||||||||||||||||
Cash and cash equivalents
|
$ | 50,348 | $ | 50,348 | $ | 50,348 | ||||||||||||||
Investment securities
available-for-sale
|
91,247 | 91,247 | $ | 91,247 | ||||||||||||||||
Loans held for sale
|
81 | 81 | 81 | |||||||||||||||||
Net loans
(1)
|
844,593 | 836,074 | $ | 836,074 | ||||||||||||||||
Accrued interest receivable
|
2,414 | 2,414 | 461 | 1,953 | ||||||||||||||||
Restricted equity securities
|
990 | 990 | ||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$ | 940,480 | $ | 940,546 |
$
|
940,546 | ||||||||||||||
Long-term borrowings
|
6,971 | 6,971 | 6,971 | |||||||||||||||||
Accrued interest payable
|
435 | 435 | 435 |
1)
|
The carrying amount is net of unearned income and the allowance for loan losses in accordance with the adoption of ASU
No. 2016-01
where the fair value of loans as of December 31, 2020 and December 31, 2019 was measured using an exit price notion
|
|
Year Ended December 31
|
|
2020
|
|
|
2019
|
|
||
Noninterest Income:
|
|
|
||||||
In-scope
of Topic 606:
|
||||||||
Service charges, fees and commissions
|
$ | 4,133 | $ | 5,186 | ||||
Trust and asset management
|
1,837 | 2,020 | ||||||
|
|
|
|
|||||
Noninterest income
(in-scope
of Topic 606)
|
5,970 | 7,206 | ||||||
Noninterest income
(out-of-scope
|
2,803 | 1,308 | ||||||
|
|
|
|
|||||
Total noninterest income
|
$ | 8,773 | $ | 8,514 | ||||
|
|
|
|
• |
upon termination of service as a Director on or after the age of 65, provided the Director agrees to provide certain ongoing services for Riverview;
|
• |
upon termination of service as a Director due to a disability prior to age 65;
|
• |
upon a change of control; or
|
• |
upon the death of a Director after electing to be a Director Emeritus.
|
|
|
2020
|
|
|
2019
|
|
||||||||||
|
|
Option
Grants |
|
|
Weighted
Average Exercise Price |
|
|
Option
Grants |
|
|
Weighted
Average Exercise Price |
|
||||
Outstanding – January 1
|
172,964 | $ | 10.66 | 263,480 |
|
$ | 10.62 | |||||||||
Granted
|
|
|||||||||||||||
Forfeited
|
(6,150 | ) |
|
12.98 | ||||||||||||
Expired
|
(34,250 | ) |
|
10.60 | ||||||||||||
Exercised
|
(50,116 | ) |
|
10.22 | ||||||||||||
|
|
|
|
|
|
|
|
|
||||||||
Outstanding – December 3
|
172,964 | $ | 10.66 | 172,964 |
|
$ | 10.66 | |||||||||
|
|
|
|
|
|
|
|
|
||||||||
Options vested and exercisable at
year-end
|
171,464 | 171,464 |
|
|||||||||||||
Range of exercise price
|
$ |
9.75 - $13.05
|
$ |
9.75 - $13.05
|
|
|||||||||||
Remaining contractual life
|
3.42 years | 4.42 years |
|
|
|
2020
|
|
|
2019
|
|
||||||||||
|
|
Restricted
Stock Awards |
|
|
Fair
Market Value |
|
|
Restricted
Stock Awards |
|
|
Fair
Market Value |
|
||||
Outstanding – January 1,
|
14,929 | $ | 12.49 | — | ||||||||||||
Granted
|
16,390 | 9.15 | 14,929 | $ | 12.49 | |||||||||||
Forfeited and retired
|
(2,512 | ) | 12.49 | |||||||||||||
Awards vested at
year-end
|
(7,828 | ) | 12.49 | — | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Outstanding – December 31,
|
20,979 | $ | 9.88 | 14,929 | $ | 12.49 | ||||||||||
|
|
|
|
|
|
|
|
|||||||||
Remaining contractual life
|
1.11 years | 2.17 years |
Benefit Plans
|
||||||||
2020
|
2019
|
|||||||
Obligations and funded status:
|
||||||||
Change in benefit obligations:
|
||||||||
Benefit obligation beginning January 1,
|
$ | 8,202 | $ | 7,669 | ||||
Interest cost
|
256 | 313 | ||||||
Benefits paid
|
(547 | ) | (548 | ) | ||||
Actuarial (gain)/loss
|
709 | 768 | ||||||
|
|
|
|
|||||
Benefit obligation at end of year
|
8,620 | 8,202 | ||||||
Change in plan assets:
|
||||||||
Fair value of plan assets at January 1,
|
8,281 | 6,310 | ||||||
Adjustment to asset value at January 1
|
||||||||
Actual return on plan assets
|
1,287 | 1,108 | ||||||
Contributions
|
2 | 1,411 | ||||||
Benefits paid
|
(547 | ) | (548 | ) | ||||
|
|
|
|
|||||
Fair value of plan assets at end of year
|
9,023 | 8,281 | ||||||
|
|
|
|
|||||
Funded status included in other liabilities
|
$ | 403 | $ | 79 | ||||
|
|
|
|
Benefit Plans
|
||||||||
2020
|
2019
|
|||||||
Net loss
|
$ | (951 | ) | $ | (1,117 | ) | ||
Income tax expense (benefit)
|
200 | (235 | ) | |||||
|
|
|
|
|||||
Net amount recognized in other comprehensive loss
|
$ | (751 | ) | $ | (882 | ) | ||
|
|
|
|
Pension Benefits
|
||||||||
2020
|
2019
|
|||||||
Interest cost
|
$ | 254 | $ | 310 | ||||
Expected return on plan assets
|
(521 | ) | (410 | ) | ||||
Amortization of net loss
|
118 | 112 | ||||||
|
|
|
|
|||||
Net periodic pension cost (credit)
|
$ | (149 | ) | $ | 12 | |||
|
|
|
|
Postretirement Life
Insurance Benefits
|
||||||||
2020
|
2019
|
|||||||
Service credit
|
$ | (7 | ) | $ | (7 | ) | ||
Interest cost
|
2 | 2 | ||||||
|
|
|
|
|||||
Net periodic postretirement benefit credit
|
$ | (5 | ) | $ | (5 | ) | ||
|
|
|
|
Pension Benefits
|
||||||||||||||||||||||||
Union
|
Citizens
|
Postretirement Life
Insurance Benefits
|
||||||||||||||||||||||
2020
|
2019
|
2020
|
2019
|
2020
|
2019
|
|||||||||||||||||||
Discount rate
|
3.22 | % | 4.22 | % | 3.22 | % | 4.22 | % | 3.25 | % | 4.25 | % | ||||||||||||
Expected long-term rate of return on plan assets
|
6.50 | % | 6.75 | % | 6.50 | % | 6.75 | % |
• |
For the pension plan, the selected long-term rate of return on plan assets was primarily based on the asset allocation of the plan’s assets. Analysis of the historic returns on these asset classes and projections of expected future returns were considered in setting the long-term rate of return.
|
• |
The benefit offered under the postretirement benefits plan is fixed; therefore, the accumulated postretirement benefit obligation is not impacted by health care cost trends or the rate of compensation increase.
|
|
|
Pension
Benefits |
|
|
Postretirement
Life Insurance Benefits |
|
||
2021
|
$
|
535
|
|
$
|
5
|
|
||
2022
|
|
526
|
|
|
5
|
|
||
2023
|
|
511
|
|
|
4
|
|||
2024
|
|
508
|
|
4
|
|
|||
2025
|
|
491
|
|
|
4
|
|
||
2026 – 2030
|
|
2,310
|
|
|
14
|
|
||
|
|
|
|
|||||
Total
|
$
|
4,881
|
|
$
|
36
|
|
||
|
|
|
|
|
|
Pension
Benefits |
|
|||||
|
|
2020
|
|
|
2019
|
|
||
Cash and cash equivalents
|
|
1.51
|
%
|
|
1.64
|
%
|
||
Equity
|
|
42.62
|
|
|
37.34
|
|
||
Fixed income
|
|
55.87
|
|
|
61.02
|
|
||
|
|
|
|
|||||
Total
|
|
100.00
|
%
|
|
100.00
|
%
|
||
|
|
|
|
2020
|
||||||||||||||||
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Cash and cash equivalents
|
$ | 136 | $ | 136 | ||||||||||||
Mutual fund – equity:
|
||||||||||||||||
Large-cap
value
|
378 | 378 | ||||||||||||||
Large-cap
core
|
381 | 381 | ||||||||||||||
Mid-cap
core
|
478 | 478 | ||||||||||||||
Small-cap
core
|
244 | 244 | ||||||||||||||
International growth
|
651 | 651 | ||||||||||||||
International value
|
311 | 311 | ||||||||||||||
Large cap growth
|
774 | 774 | ||||||||||||||
Small / midcap growth
|
247 | 247 | ||||||||||||||
Mutual funds/ETFs – fixed income:
|
||||||||||||||||
Fixed income – core plus
|
1,881 | 1,881 | ||||||||||||||
Intermediate duration
|
||||||||||||||||
Long duration – Government credit
|
2,487 | 2,487 | ||||||||||||||
Long U.S. Treasury – ETF
|
673 | 673 | ||||||||||||||
Common /collective trusts – equity:
|
||||||||||||||||
Large cap value
|
382 | $ | 382 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets
|
$ | 9,023 | $ | 8,641 | $ | 382 | ||||||||||
|
|
|
|
|
|
|
|
2019
|
||||||||||||||||
Total
|
Quoted Prices in
Active Markets
for Identical
Assets
(Level 1)
|
Significant
Other
Observable
Inputs
(Level 2)
|
Significant
Unobservable
Inputs
(Level 3)
|
|||||||||||||
Cash and cash equivalents
|
$ | 136 | $ | 136 | ||||||||||||
Mutual fund – equity:
|
||||||||||||||||
Large-cap
value
|
321 | 321 | ||||||||||||||
Large-cap
core
|
343 | 343 | ||||||||||||||
Mid-cap
core
|
375 | 375 | ||||||||||||||
Small-cap
core
|
152 | 152 | ||||||||||||||
International growth
|
427 | 427 | ||||||||||||||
International value
|
214 | 214 | ||||||||||||||
Large cap growth
|
713 | 713 | ||||||||||||||
Small / midcap growth
|
202 | 202 | ||||||||||||||
Mutual funds/ETFs – fixed income:
|
||||||||||||||||
Fixed income – core plus
|
1,928 | 1,928 | ||||||||||||||
Intermediate duration
|
656 | 656 | ||||||||||||||
Long duration – Government credit
|
1,812 | 1,812 | ||||||||||||||
Long U.S. Treasury – ETF
|
657 | 657 | ||||||||||||||
Common /collective trusts – equity:
|
||||||||||||||||
Large cap value
|
345 | $ | 345 | |||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total assets
|
$ | 8,281 | $ | 7,936 | $ | 345 | ||||||||||
|
|
|
|
|
|
|
|
Year Ended December 31
|
2020
|
2019
|
||||||
Current
|
$ | 232 | $ | (308 | ) | |||
Deferred
|
25 | 1,009 | ||||||
|
|
|
|
|||||
$
|
257 |
$
|
701 |
|
||||
|
|
|
|
December 31
|
2020
|
2019
|
||||||
Deferred tax assets:
|
||||||||
Allowance for loan losses
|
$ | 2,582 | $ | 1,535 | ||||
Deferred compensation
|
962 | 1,021 | ||||||
Purchase accounting adjustments
|
64 | |||||||
Alternate minimum tax credit carryforwards
|
279 | |||||||
Minimum pension liability
|
211 | 247 | ||||||
Accrued expenses
|
185 | 405 | ||||||
Unrealized loss on investment securities
available-for-sale
|
||||||||
Low income housing credit carryforwards
|
920 | 1,063 | ||||||
Net operating loss carryforwards
|
666 | 714 | ||||||
Lease liabilities
|
488 | 817 | ||||||
Other
|
493 | 664 | ||||||
|
|
|
|
|||||
Total
|
6,507 | 6,809 | ||||||
|
|
|
|
|||||
Deferred tax liabilities:
|
||||||||
Premises and equipment, net
|
507 | 577 | ||||||
Purchase accounting adjustments
|
56 | |||||||
Unrealized gain on investment securities
available-for-sale
|
412 | 142 | ||||||
Benefit plans
|
311 | 280 | ||||||
Lease right of use
|
478 | 810 | ||||||
Cash flow hedge
|
36 | |||||||
Postretirement minimum
|
16 | 18 | ||||||
Other
|
784 | 710 | ||||||
|
|
|
|
|||||
Total
|
2,600 | 2,537 | ||||||
|
|
|
|
|||||
Net deferred tax asset
|
$ | 3,907 | $ | 4,272 | ||||
|
|
|
|
Year Ended December 31
|
2020
|
2019
|
||||||
Federal income tax at statutory rate
|
$ | (4,401 | ) | $ | 1,047 | |||
Adjustment for
non-taxable
goodwill
|
5,025 | |||||||
Tax exempt interest
|
(245 | ) | (248 | ) | ||||
Bank owned life insurance income
|
(159 | ) | (160 | ) | ||||
Other, net
|
37 | 62 | ||||||
|
|
|
|
|||||
Total
|
$ | 257 | $ | 701 | ||||
|
|
|
|
December 31
|
2020
|
2019
|
||||||
Assets
|
||||||||
Cash and cash equivalents
|
$ | 10,503 | $ | 722 | ||||
Investment in bank subsidiary
|
118,881 | 124,560 | ||||||
Premises, net
|
73 | 73 | ||||||
Other assets
|
641 | 169 | ||||||
|
|
|
|
|||||
$
|
130,098 |
$
|
125,524 | |||||
|
|
|
|
|||||
Liabilities and stockholders’ equity
|
||||||||
Long-term borrowings
|
$ | 31,860 | $ | 6,971 | ||||
Other liabilities
|
806 | 443 | ||||||
|
|
|
|
|||||
Total Liabilities
|
32,666 | 7,414 | ||||||
|
|
|
|
|||||
Stockholders’ equity
|
97,432 | 118,110 | ||||||
|
|
|
|
|||||
$ | 130,098 | $ | 125,524 | |||||
|
|
|
|
December 31
|
2020
|
2019
|
||||||
Income, dividends from bank subsidiary
|
$ | 1,400 | $ | 3,220 | ||||
Interest expense
|
769 | 514 | ||||||
|
|
|
|
|||||
Income before equity in undistributed net income of subsidiary
|
631 | 2,706 | ||||||
Undistributed net income (loss) of subsidiary
|
(21,827 | ) | 1,683 | |||||
Noninterest expense
|
224 | 257 | ||||||
|
|
|
|
|||||
Net income (loss) before income taxes
|
(21,420 | ) | 4,132 | |||||
Income tax benefit
|
(209 | ) | (154 | ) | ||||
|
|
|
|
|||||
Net income (loss)
|
(21,211 | ) | 4,286 | |||||
|
|
|
|
|||||
Total comprehensive income
(Loss)
|
$ | (19,928 | ) | $ | 6,557 | |||
|
|
|
|
Year Ended December 31
|
2020
|
2019
|
||||||
Cash flows from operating activities:
|
||||||||
Net income (loss)
|
$ | (21,211 | ) | $ | 4,286 | |||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||
Undistributed net (income) loss of subsidiary
|
21,827 | (1,683 | ) | |||||
Amortization of assumed discount on long-term debt
|
83 | 79 | ||||||
Amortization of long-term debt issuance costs
|
43 | |||||||
(Increase) decrease in accrued interest receivable and other assets
|
(337 | ) | 88 | |||||
Increase (decrease) in accrued interest payable and other liabilities
|
363 | 60 | ||||||
|
|
|
|
|||||
Net cash provided by operating activities
|
768 | 2,830 | ||||||
|
|
|
|
|||||
Cash flows from investing activities:
|
||||||||
Capitalization of subsidiary
|
(15,000 | ) | ||||||
|
|
|
|
|||||
Net cash used in investing activities
|
(15,000 | ) | ||||||
|
|
|
|
|||||
Cash flows from financing activities:
|
||||||||
Proceeds from long-term debt
|
24,763 | |||||||
Proceeds from stock-based compensation
|
93 | 208 | ||||||
Proceeds from issuance of common stock
|
543 | 644 | ||||||
Dividends paid
|
(1,386 | ) | (3,209 | ) | ||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities
|
24,013 | (2,357 | ) | |||||
|
|
|
|
|||||
Increase in cash and cash equivalents
|
9,781 | 473 | ||||||
Cash and cash equivalents – beginning
|
722 | 249 | ||||||
|
|
|
|
|||||
Cash and cash equivalents – ending
|
$ | 10,503 | $ | 722 | ||||
|
|
|
|
Actual
|
Minimum Regulatory
Capital Ratios under
Basel III (with 2.5%
capital conservation
buffer phase-in)
|
Well Capitalized under
Basel III
|
||||||||||||||||||||||
December 31, 2020:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total risk-based capital (to risk-weighted assets:
|
||||||||||||||||||||||||
Riverview Bank
|
$ | 126,108 | 14.2 | % | $ | 93,462 |
>
|
10.5 | % | $ | 89,011 |
>
|
10.0 | % | ||||||||||
Tier 1 capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Riverview Bank
|
114,967 | 12.9 | 75,659 |
>
|
8.5 | 71,209 |
>
|
8.0 | ||||||||||||||||
Tier 1 capital (to average total assets):
|
||||||||||||||||||||||||
Riverview Bank
|
114,967 | 9.8 | 47,102 |
>
|
4.0 | 58,877 |
>
|
5.0 | ||||||||||||||||
Common equity tier 1 risk-based capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Riverview Bank
|
114,967 | 12.9 | 62,308 |
>
|
7.0 | 57,857 |
>
|
6.5 |
Actual
|
Minimum Regulatory
Capital Ratios under
Basel III (with 2.5%
capital conservation
buffer phase-in)
|
Well Capitalized under
Basel III
|
||||||||||||||||||||||
December 31, 2019:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total risk-based capital (to risk-weighted assets:
|
||||||||||||||||||||||||
Riverview Bank
|
$ | 104,010 | 12.4 | % | $ | 88,132 |
>
|
10.5 | % | $ | 83,936 |
>
|
10.0 | % | ||||||||||
Tier 1 capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Riverview Bank
|
96,405 | 11.5 | 71,345 |
>
|
8.5 | 67,148 |
>
|
8.0 | ||||||||||||||||
Tier 1 capital (to average total assets):
|
||||||||||||||||||||||||
Riverview Bank
|
96,405 | 9.1 | 42,489 |
>
|
4.0 | 53,112 |
>
|
5.0 | ||||||||||||||||
Common equity tier 1 risk-based capital (to risk-weighted assets):
|
||||||||||||||||||||||||
Riverview Bank
|
96,405 | 11.5 | 58,755 |
>
|
7.0 | 54,558 |
>
|
6.5 |
Item 9.
|
Changes in and Disagreements with Accountants on Accounting and Financial Disclosure.
|
Item 9A.
|
Controls and Procedures.
|
/s/ Brett D. Fulk
|
Brett D. Fulk
|
President and Chief Executive Officer
|
(Principal Executive Officer)
|
March 11, 2021
|
/s/ Scott A. Seasock
|
Scott A. Seasock
|
Chief Financial Officer
|
(Principal Financial Officer and
Principal Accounting Officer)
|
March 11, 2021
|
Item 9B.
|
Other Information.
|
Item 10.
|
Directors, Executive Officers and Corporate Governance.
|
Item 11.
|
Executive Compensation.
|
Item 12.
|
Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters.
|
Item 13.
|
Certain Relationships and Related Transactions, and Director Independence.
|
Item 14.
|
Principal Accounting Fees and Services.
|
Item 15.
|
Exhibits, Financial Statement Schedules.
|
(a)(1)
|
The following consolidated financial statements of the Company are filed as part of this Form
10-K:
|
|||
(i)
|
Reports of Independent Registered Public Accounting Firm
|
|||
(ii)
|
Consolidated Balance Sheets as of December 31, 2020 and 2019
|
|||
(iii)
|
Consolidated Statements of Income and Comprehensive Income for the years ended December 31, 2020 and 2019
|
|||
(iv)
|
Consolidated Statements of Changes in Stockholders’ Equity for the years ended December 31, 2020 and 2019
|
|||
(v)
|
Consolidated Statements of Cash Flows for the years ended December 31, 2020 and 2019
|
|||
(vi)
|
Notes to Consolidated Financial Statements
|
* |
Filed by Riverview Financial’s predecessor, CIK# 0001452899.
|
** |
Filed by Riverview Financial’s predecessor, CIK# 0001445059.
|
Riverview Financial Corporation
|
||
By: | /s/ Brett D. Fulk | |
Brett D. Fulk
|
||
President and Chief Executive Officer
|
||
(Principal Executive Officer)
|
||
March 11, 2021
|
||
By: | /s/ Scott A. Seasock | |
Scott A. Seasock
|
||
Chief Financial Officer
|
||
(Principal Financial Officer and
Principal Accounting Officer)
|
||
March 11, 2021
|
Name
|
Title
|
Date
|
||
/s/ John G. Soult, Jr.
|
Director and Chairman of the Board | March 11, 2021 | ||
John G. Soult, Jr.
|
||||
/s/ David W. Hoover
|
Director and Vice-Chairman of the Board | March 11, 2021 | ||
David W. Hoover
|
||||
/s/ Brett D. Fulk
|
Director, Chief Executive Officer and President (Principal Executive Officer) | March 11, 2021 | ||
Brett D. Fulk
|
||||
/s/ Scott A. Seasock
|
Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) | March 11, 2021 | ||
Scott A. Seasock
|
||||
/s/ Paula M. Cherry
|
Director | March 11, 2021 | ||
Paula M. Cherry
|
||||
/s/ Albert J. Evans
|
Director | March 11, 2021 | ||
Albert J. Evans
|
||||
/s/ Maureen M. Gathagan
|
Director | March 11, 2021 | ||
Maureen M. Gathagan
|
Name
|
Title
|
Date
|
||
/s/ Howard R. Greenawalt
|
Director | March 11, 2021 | ||
Howard R. Greenawalt
|
||||
/s/ Joseph D. Kerwin
|
Director | March 11, 2021 | ||
Joseph D. Kerwin
|
||||
/s/ Kevin D. McMillen
|
Director | March 11, 2021 | ||
Kevin D. McMillen
|
||||
/s/ Timothy E. Resh
|
Director | March 11, 2021 | ||
Timothy E. Resh
|
||||
/s/ Marlene K. Sample
|
Director | March 11, 2021 | ||
Marlene K. Sample
|
Exhibit 23.1
Consent of Independent Registered Public Accounting Firm
We consent to the incorporation by reference in the registration statements (No. 333-237429, 333-210378, 333-207953, 333-203544 and 333-232185) on Form S-8 and in the registration statements (No. 333-230468, 333-211731 and 333-234240) on Form S-3 of Riverview Financial Corporation of our report dated March 11, 2021, with respect to the 2020 consolidated financial statements, appearing in Riverview Financial Corporations 2020 Annual Report on Form 10-K.
/s/ Crowe, LLP |
Washington, D.C. |
March 11, 2021 |
101
Exhibit 31.1
I, Brett D. Fulk certify that:
1. I have reviewed this annual report on Form 10-K of Riverview Financial Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation, of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: March 11, 2021 | By: | /s/ Brett D. Fulk | ||||
Brett D. Fulk President and Chief Executive Officer |
102
Exhibit 31.2
I, Scott A. Seasock certify that:
1. I have reviewed this annual report on Form 10-K of Riverview Financial Corporation;
2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;
3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;
4. The registrants other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f) for the registrant and have:
(a) designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;
(b) designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;
(c) evaluated the effectiveness of the registrants disclosure controls and procedures and presented in this annual report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and
(d) disclosed in this report any change in the registrants internal control over financial reporting that occurred during the registrants most recent fiscal quarter (the registrants fourth quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrants internal control over financial reporting; and
5. The registrants other certifying officer and I have disclosed, based on our most recent evaluation, of internal control over financial reporting, to the registrants auditors and the audit committee of the registrants board of directors (or persons performing the equivalent functions):
(a) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrants ability to record, process, summarize and report financial information; and
(b) any fraud, whether or not material, that involves management or other employees who have a significant role in the registrants internal control over financial reporting.
Date: March 11, 2021 | By: | /s/ Scott A. Seasock | ||||
Scott A. Seasock Chief Financial Officer |
103
Exhibit 32.1
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), I, Brett D. Fulk, Chief Executive Officer and President of Riverview Financial Corporation (the Company), hereby certify that, to the best of my knowledge, the Companys Annual Report on Form 10-K for the period ended December 31, 2020 (the Report):
1. |
fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the year ended December 31, 2020. |
Date: March 11, 2021 | By: | /s/ Brett D. Fulk | ||||
Brett D. Fulk President and Chief Executive Officer |
104
Exhibit 32.2
CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350,
AS ADOPTED PURSUANT TO
SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002
Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (Section 1350 of Chapter 63 of Title 18 of the United States Code), I, Scott A. Seasock, Chief Financial Officer of Riverview Financial Corporation (the Company), hereby certify that, to the best of my knowledge, the Companys Annual Report on Form 10-K for the period ended December 31, 2020 (the Report):
1. |
fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and |
2. |
the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company for the year ended December 31, 2020. |
Date: March 11, 2021 | By: | /s/ Scott A. Seasock | ||||
Scott A. Seasock Chief Financial Officer |
105