☒ |
Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
☐ |
Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
|
Pennsylvania
|
38-3917371
|
|
(State of incorporation)
|
(IRS Employer
Identification Number)
|
|
3901 North Front Street, Harrisburg, PA
|
17110
|
|
(Address of principal executive offices)
|
(Zip code)
|
Large accelerated filer | ☐ | Accelerated filer | ☐ | |||
Non-accelerated filer
|
☒
|
Smaller reporting company | ☒ | |||
Emerging growth company | ☐ |
Title of each class
|
Trading
Symbol(s)
|
Name of each exchange
on which registered
|
||
Common Stock
|
RIVE
|
Nasdaq Global Market
|
March 31,
2021 |
December 31,
2020 |
|||||||
Assets:
|
||||||||
Cash and due from banks
|
$ | 9,496 | $ | 13,511 | ||||
Interest-bearing deposits in other banks
|
53,668 | 36,270 | ||||||
Investment securities
available-for-sale
|
155,863 | 103,695 | ||||||
Loans held for sale
|
2,502 | 4,338 | ||||||
Loans, net
|
1,091,824 | 1,139,239 | ||||||
Less: allowance for loan losses
|
12,140 | 12,200 | ||||||
|
|
|
|
|||||
Net loans
|
1,079,684 | 1,127,039 | ||||||
Premises and equipment, net
|
17,991 | 18,147 | ||||||
Accrued interest receivable
|
4,189 | 4,216 | ||||||
Intangible assets
|
1,786 | 1,918 | ||||||
Other assets
|
49,661 | 48,420 | ||||||
|
|
|
|
|||||
Total assets
|
$ | 1,374,840 | $ | 1,357,554 | ||||
|
|
|
|
|||||
Liabilities:
|
||||||||
Deposits:
|
||||||||
Noninterest-bearing
|
$ | 197,360 | $ | 173,600 | ||||
Interest-bearing
|
883,568 | 841,860 | ||||||
|
|
|
|
|||||
Total deposits
|
1,080,928 | 1,015,460 | ||||||
Short-term borrowings
|
||||||||
Long-term debt
|
180,644 | 228,765 | ||||||
Accrued interest payable
|
1,347 | 1,038 | ||||||
Other liabilities
|
13,298 | 14,859 | ||||||
|
|
|
|
|||||
Total liabilities
|
1,276,217 | 1,260,122 | ||||||
|
|
|
|
|||||
Stockholders’ equity:
|
||||||||
Common stock: no par value, authorized 20,000,000 shares; March 31, 2021, issued and outstanding 9,348,831 shares; December 31, 2020, issued and outstanding 9,306,442 shares
|
102,861 | 102,662 | ||||||
Capital surplus
|
292 | 292 | ||||||
Retained earnings (accumulated deficit)
|
(3,397 | ) | (6,457 | ) | ||||
Accumulated other comprehensive income (loss)
|
(1,133 | ) | 935 | |||||
|
|
|
|
|||||
Total stockholders’ equity
|
98,623 | 97,432 | ||||||
|
|
|
|
|||||
Total liabilities and stockholders’ equity
|
$ | 1,374,840 | $ | 1,357,554 | ||||
|
|
|
|
For the three months ended March 31,
|
|
2021
|
|
|
2020
|
|
||
Interest income:
|
||||||||
Interest and fees on loans:
|
||||||||
Taxable
|
$ | 10,348 | $ | 9,782 | ||||
Tax-exempt
|
176 | 245 | ||||||
Interest on investment securities
available-for-sale:
|
||||||||
Taxable
|
494 | 535 | ||||||
Tax-exempt
|
152 | 37 | ||||||
Interest on interest-bearing deposits in other banks
|
9 | 89 | ||||||
|
|
|
|
|||||
Total interest income
|
11,179 | 10,688 | ||||||
|
|
|
|
|||||
Interest expense:
|
||||||||
Interest on deposits
|
923 | 1,789 | ||||||
Interest on short-term borrowings
|
5 | |||||||
Interest on long-term debt
|
646 | 123 | ||||||
|
|
|
|
|||||
Total interest expense
|
1,569 | 1,917 | ||||||
|
|
|
|
|||||
Net interest income
|
9,610 | 8,771 | ||||||
Provision for loan losses
|
1,800 | |||||||
|
|
|
|
|||||
Net interest income after provision for loan losses
|
9,610 | 6,971 | ||||||
|
|
|
|
|||||
Noninterest income:
|
||||||||
Service charges, fees and commissions
|
1,474 | 1,381 | ||||||
Commission and fees on fiduciary activities
|
260 | 213 | ||||||
Wealth management income
|
214 | 220 | ||||||
Mortgage banking income
|
151 | 108 | ||||||
Bank owned life insurance investment income
|
178 | 193 | ||||||
Net gain (loss) on sale of investment securities
available-for-sale
|
246 | 815 | ||||||
|
|
|
|
|||||
Total noninterest income
|
2,523 | 2,930 | ||||||
|
|
|
|
|||||
Noninterest expense:
|
||||||||
Salaries and employee benefits expense
|
4,467 | 5,056 | ||||||
Net occupancy and equipment expense
|
1,190 | 1,180 | ||||||
Amortization of intangible assets
|
132 | 170 | ||||||
Net cost (benefit) of operation of other real estate owned
|
(29 | ) | (11 | ) | ||||
Other expenses
|
2,627 | 2,817 | ||||||
|
|
|
|
|||||
Total noninterest expense
|
8,387 | 9,212 | ||||||
|
|
|
|
|||||
Income before income taxes
|
3,746 | 689 | ||||||
Income tax expense
|
686 | 56 | ||||||
|
|
|
|
|||||
Net income
|
3,060 | 633 | ||||||
|
|
|
|
|||||
Other comprehensive income (loss):
|
||||||||
Unrealized gain (loss) on investment securities
available-for-sale
|
$ | (3,029 | ) | $ | 1,053 | |||
Reclassification adjustment for net gain on sale of investment securities
available-for-sale
|
(246 | ) | (815 | ) | ||||
Change in cash flow hedge
|
657 | |||||||
Income tax expense (benefit) related to other comprehensive income
|
(550 | ) | 50 | |||||
|
|
|
|
|||||
Other comprehensive income (loss), net of income taxes
|
(2,068 | ) | 188 | |||||
|
|
|
|
|||||
Comprehensive income
|
$ | 992 | $ | 821 | ||||
|
|
|
|
|||||
Per share data:
|
||||||||
Net income:
|
||||||||
Basic
|
$ | 0.33 | $ | 0.07 | ||||
Diluted
|
$ | 0.33 | $ | 0.07 | ||||
Average common shares outstanding:
|
||||||||
Basic
|
9,341,291 | 9,223,445 | ||||||
Diluted
|
9,341,533 | 9,233,060 | ||||||
Dividends declared
|
$ | 0.00 | $ | 0.08 |
Common
Stock |
Capital
Surplus |
Retained
Earnings |
Accumulated
Other Comprehensive Income (Loss) |
Total
|
||||||||||||||||
Balance, January 1, 2021
|
$ | 102,662 | $ | 292 | $ | (6,457 | ) | $ | 935 | $ | 97,432 | |||||||||
Net income
|
3,060 | 3,060 | ||||||||||||||||||
Other comprehensive income, net of income taxes
|
(2,068 | ) | (2,068 | ) | ||||||||||||||||
Issuance under ESPP, 401k and Dividend Reinvestment plans
|
134 | 134 | ||||||||||||||||||
Stock based compensation
|
65 | 65 | ||||||||||||||||||
Dividends declared, $0.00 per share
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, March 31, 2021
|
$ | 102,861 | $ | 292 | $ | (3,397 | ) | $ | (1,133 | ) | $ | 98,623 | ||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, January 1, 2020 shares
|
$ | 102,206 | $ | 112 | $ | 16,140 | $ | (348 | ) | $ | 118,110 | |||||||||
Net income
|
633 | 633 | ||||||||||||||||||
Other comprehensive income, net of income taxes
|
188 | 188 | ||||||||||||||||||
Issuance under ESPP, 401k and Dividend Reinvestment plans
|
180 | 180 | ||||||||||||||||||
Stock based compensation
|
22 | 22 | ||||||||||||||||||
Dividends declared, $0.08 per share
|
(692 | ) | (692 | ) | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Balance, March 31, 2020
|
$ | 102,386 | $ | 134 | $ | 16,081 | $ | (160 | ) | $ | 118,441 | |||||||||
|
|
|
|
|
|
|
|
|
|
For the Three Months Ended March 31,
|
2021
|
2020
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$ | 3,060 | $ | 633 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation and amortization of premises and equipment
|
340 | 320 | ||||||
Provision for loan losses
|
1,800 | |||||||
Stock based compensation
|
65 | 22 | ||||||
Net amortization of investment securities
available-for-sale
|
411 | 169 | ||||||
Net cost (benefit) of operation of other real estate owned
|
(29 | ) | (11 | ) | ||||
Net gain on sale of investment securities
available-for-sale
|
(246 | ) | (815 | ) | ||||
Accretion of purchase adjustment on loans
|
(22 | ) | (132 | ) | ||||
Amortization of intangible assets
|
132 | 170 | ||||||
Amortization of assumed discount on long-term debt
|
22 | 21 | ||||||
Amortization of long-term debt issuance costs
|
25 | |||||||
Deferred income taxes
|
391 | 53 | ||||||
Proceeds from sale of loans originated for sale
|
5,928 | 2,791 | ||||||
Net gain on sale of loans originated for sale
|
(151 | ) | (108 | ) | ||||
Loans originated for sale
|
(3,941 | ) | (2,874 | ) | ||||
Bank owned life insurance investment income
|
(178 | ) | (193 | ) | ||||
Net change in:
|
||||||||
Accrued interest receivable
|
27 | (175 | ) | |||||
Other assets
|
(435 | ) | (2 | ) | ||||
Accrued interest payable
|
309 | (11 | ) | |||||
Other liabilities
|
(1,561 | ) | (1,275 | ) | ||||
|
|
|
|
|||||
Net cash provided operating activities
|
4,147 | 383 | ||||||
|
|
|
|
|||||
Cash flows from investing activities:
|
||||||||
Investment securities
available-for-sale:
|
||||||||
Purchases
|
(68,371 | ) | (7,317 | ) | ||||
Proceeds from repayments
|
2,865 | 3,878 | ||||||
Proceeds from sales
|
9,898 | 27,168 | ||||||
Proceeds from the sale of other real estate owned
|
232 | 68 | ||||||
Net (increase) decrease in restricted equity securities
|
(15 | ) | (867 | ) | ||||
Net (increase) decrease in loans
|
47,377 | (36,594 | ) | |||||
Purchases of premises and equipment
|
(184 | ) | (1,343 | ) | ||||
|
|
|
|
|||||
Net cash used in investing activities
|
(8,198 | ) | (15,007 | ) | ||||
|
|
|
|
|||||
Cash flows from financing activities:
|
||||||||
Net increase in deposits
|
65,468 | 18,023 | ||||||
Repayment of long-term debt
|
(48,168 | ) | ||||||
Proceeds from long-term debt
|
20,000 | |||||||
Issuance under ESPP, 401k and DRP plans
|
134 | 180 | ||||||
Cash dividends paid
|
(692 | ) | ||||||
|
|
|
|
|||||
Net cash provided by financing activities
|
17,434 | 37,511 | ||||||
|
|
|
|
|||||
Net increase in cash and cash equivalents
|
13,383 | 22,887 | ||||||
Cash and cash equivalents—beginning
|
49,781 | 50,348 | ||||||
|
|
|
|
|||||
Cash and cash equivalents—ending
|
$ | 63,164 | $ | 73,235 | ||||
|
|
|
|
|||||
Supplemental disclosures:
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$ | 1,260 | $ | 1,928 | ||||
|
|
|
|
|||||
Supplemental schedule of noncash investing and financing activities:
|
||||||||
Other real estate acquired in settlement of loans
|
$ | $ | 321 | |||||
|
|
|
|
March 31,
2021
|
December 31,
2020
|
|||||||
Net unrealized gain (loss) on investment securities
available-for-sale
|
$ | (1,313 | ) | $ | 1,962 | |||
Income tax expense (benefit)
|
(276 | ) | 412 | |||||
|
|
|
|
|||||
Net of income taxes
|
(1,037 | ) | 1,550 | |||||
|
|
|
|
|||||
Benefit plan adjustments
|
(951 | ) | (951 | ) | ||||
Income tax expense (benefit)
|
(200 | ) | (200 | ) | ||||
|
|
|
|
|||||
Net of income taxes
|
(751 | ) | (751 | ) | ||||
|
|
|
|
|||||
Derivative fair value adjustment
|
829 | 172 | ||||||
Income tax expense (benefit)
|
174 | 36 | ||||||
|
|
|
|
|||||
Net of income taxes
|
655 | 136 | ||||||
|
|
|
|
|||||
Accumulated other comprehensive income (loss)
|
$ | (1,133 | ) | $ | 935 | |||
|
|
|
|
Three months ended March 31,
|
|
2021
|
|
|
2020
|
|
||
Unrealized gain (loss) on investment securities
available-for-sale
|
$ | (3,029 | ) | $ | 1,053 | |||
Net (gain) loss on the sale of investment securities
available-for-sale
(1)
|
(246 | ) | (815 | ) | ||||
Net change in cash flow hedge
|
657 | |||||||
|
|
|
|
|||||
Other comprehensive income (loss) before taxes
|
(2,618 | ) | 238 | |||||
Income tax expense (benefit)
|
(550 | ) | 50 | |||||
|
|
|
|
|||||
Other comprehensive income (loss)
|
$ |
(2,068
|
) | $ |
188
|
|||
|
|
|
|
(1)
|
Represents amounts reclassified out of accumulated other comprehensive income and included in gains on sale of investment securities on the consolidated statements of income and comprehensive income.
|
Three months ended March 31,
|
2021
|
2020
|
||||||
Numerator:
|
||||||||
Net income
|
$ | 3,060 | $ | 633 | ||||
|
|
|
|
|||||
Denominator:
|
||||||||
Basic
|
9,341,291 | 9,223,445 | ||||||
Dilutive options
|
242 | 9,615 | ||||||
|
|
|
|
|||||
Diluted
|
9,341,533 | 9,233,060 | ||||||
|
|
|
|
|||||
Earnings per share:
|
||||||||
Basic
|
$ | 0.33 | $ | 0.07 | ||||
Diluted
|
$ | 0.33 | $ | 0.07 |
March 31, 2021
|
Amortized
Cost |
Gross
Unrealized Gains |
Gross
Unrealized Losses |
Fair
Value |
||||||||||||
U.S. Treasury securities
|
$ | 19,396 | $ | 418 | $ | 18,978 | ||||||||||
State and municipals:
|
||||||||||||||||
Taxable
|
23,779 | $ | 238 | 959 | 23,058 | |||||||||||
Tax-exempt
|
44,599 | 84 | 1,131 | 43,552 | ||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. Government agencies
|
35,693 | 929 | 237 | 36,385 | ||||||||||||
U.S. Government-sponsored enterprises
|
20,459 | 280 | 42 | 20,697 | ||||||||||||
Corporate debt obligations
|
13,250 | 29 | 86 | 13,193 | ||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 157,176 | $ | 1,560 | $ | 2,873 | $ | 155,863 | ||||||||
|
|
|
|
|
|
|
|
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 | ||||||||
|
|
|
|
|
|
|
|
March 31, 2021
|
Fair
Value
|
|||
Within one year
|
$ | 56 | ||
After one but within five years
|
933 | |||
After five but within ten years
|
40,219 | |||
After ten years
|
57,573 | |||
|
|
|||
98,781 | ||||
Mortgage-backed securities
|
57,082 | |||
|
|
|||
Total
|
$ | 155,863 | ||
|
|
Less Than 12 Months
|
12 Months or More
|
Total
|
||||||||||||||||||||||
March 31, 2021
|
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
Fair
Value |
Unrealized
Losses |
||||||||||||||||||
U.S. Treasury securities
|
$ | 18,978 | $ | 418 | $ | 18,978 | $ | 418 | ||||||||||||||||
State and municipals:
|
||||||||||||||||||||||||
Taxable
|
16,261 | 959 | 16,261 | 959 | ||||||||||||||||||||
Tax-exempt
|
39,131 | 1,131 | 39,131 | 1,131 | ||||||||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||||||||||
U.S. Government agencies
|
10,182 | 237 | 10,182 | 237 | ||||||||||||||||||||
U.S. Government-sponsored enterprises
|
5,758 | 42 | 5,758 | 42 | ||||||||||||||||||||
Corporate debt obligations
|
6,664 | 86 | 6,664 | 86 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
Total
|
$ | 96,974 | $ | 2,873 | $ | 96,974 | $ | 2,873 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
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 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
March 31,
2021
|
December 31,
2020
|
|||||||
Commercial
|
$ | 327,191 | $ | 359,080 | ||||
Real estate:
|
||||||||
Construction
|
78,277 | 73,402 | ||||||
Commercial
|
489,652 | 502,495 | ||||||
Residential
|
190,857 | 197,596 | ||||||
Consumer
|
5,847 | 6,666 | ||||||
|
|
|
|
|||||
Total
|
$ | 1,091,824 | $ | 1,139,239 | ||||
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
March 31, 2021
|
Commercial
|
Construction
|
Commercial
|
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Beginning Balance, January 1, 2021
|
$ | 1,705 | $ | 1,117 | $ | 6,494 | $ | 2,427 | $ | 142 | $ | 315 | $ | 12,200 | ||||||||||||||
Charge-offs
|
(9 | ) | (37 | ) | (48 | ) | (94 | ) | ||||||||||||||||||||
Recoveries
|
1 | 2 | 31 | 34 | ||||||||||||||||||||||||
Provisions
|
(303 | ) | 54 | 298 | (193 | ) | 2 | $ | 142 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance
|
$ | 1,393 | $ | 1,134 | $ | 6,793 | $ | 2,236 | $ | 127 | $ | 457 | $ | 12,140 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
March 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
|
(899 | ) | (95 | ) | (130 | ) | (1,124 | ) | ||||||||||||||||||||
Recoveries
|
2 | 1 | 56 | 59 | ||||||||||||||||||||||||
Provisions
|
615 | 222 | 896 | (107 | ) | 71 | $ | 103 | 1,800 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance
|
$ | 1,671 | $ | 695 | $ | 3,917 | $ | 1,713 | $ | 152 | $ | 103 | $ | 8,251 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Real Estate
|
||||||||||||||||||||||||||||
March 31, 2021
|
Commercial
|
Construction
|
Commercial
|
Residential
|
Consumer
|
Unallocated
|
Total
|
|||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 1,393 | $ | 1,134 | $ | 6,793 | $ | 2,236 | $ | 127 | $ | 457 | $ | 12,140 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
individually evaluated for impairment
|
724 | 724 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
collectively evaluated for impairment
|
1,393 | 1,134 | 6,069 | 2,236 | 127 | 457 | 11,416 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
purchased credit impaired loans
|
$ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Loans receivable:
|
||||||||||||||||||||||||||||
Ending balance
|
$ | 327,191 | $ | 78,277 | $ | 489,652 | $ | 190,857 | $ | 5,847 | $ | $ | 1,091,824 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
individually evaluated for impairment
|
1,677 | 970 | 6,546 | 2,386 | 11,579 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
collectively evaluated for impairment
|
325,514 | 77,307 | 482,768 | 188,317 | 5,847 | 1,079,753 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Ending balance:
|
||||||||||||||||||||||||||||
purchased credit impaired loans
|
$ | $ | $ | 338 | $ | 154 | $ | $ | $ | 492 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
• |
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 by 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 occur in the future. Homogeneous loans not meeting the criteria above are considered pass rated loans and evaluated based on delinquency performance.
|
March 31, 2021
|
Pass
|
Special
Mention |
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
Commercial
|
$ | 322,223 | $ | 2,957 | $ | 2,011 | $ | $ | 327,191 | |||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
68,818 | 129 | 9,330 | 78,277 | ||||||||||||||||
Commercial
|
435,173 | 26,608 | 27,871 | 489,652 | ||||||||||||||||
Residential
|
185,630 | 1,136 | 4,091 | 190,857 | ||||||||||||||||
Consumer
|
5,847 | 5,847 | ||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 1,017,691 | $ | 30,830 | $ | 43,303 | $ | $ | 1,091,824 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
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 | |||||||||||
|
|
|
|
|
|
|
|
|
|
Accrual Loans
|
||||||||||||||||||||||||||||
March 31, 2021
|
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
|
$ | 34 | $ | 21 | $ | $ | 55 | $ | 326,325 | $ | 811 | $ | 327,191 | |||||||||||||||
Real estate:
|
||||||||||||||||||||||||||||
Construction
|
34 | 34 | 77,272 | 971 | 78,277 | |||||||||||||||||||||||
Commercial
|
252 | 252 | 489,033 | 29 | 489,314 | |||||||||||||||||||||||
Residential
|
881 | 21 | 161 | 1,063 | 188,623 | 1,017 | 190,703 | |||||||||||||||||||||
Consumer
|
14 | 6 | 4 | 24 | 5,823 | 5,847 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total
|
$ | 1,215 | $ | 48 | $ | 165 | $ | 1,428 | $ | 1,087,076 | $ | 2,828 | $ | 1,091,332 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Purchased credit impaired loans
|
492 | |||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
Total Loans
|
$ | 1,091,824 | ||||||||||||||||||||||||||
|
|
|||||||||||||||||||||||||||
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 | ||||||||||||||||||||||||||
|
|
This Quarter
|
||||||||||||||||||||
March 31, 2021
|
Recorded
Investment |
Unpaid
Principal Balance |
Related
Allowance |
Average
Recorded Investment |
Interest
Income Recognized |
|||||||||||||||
With no related allowance:
|
||||||||||||||||||||
Commercial
|
$ | 1,677 | $ | 1,787 | $ | 1,621 | $ | 41 | ||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
970 | 970 | 485 | |||||||||||||||||
Commercial
|
914 | 914 | 3,868 | 34 | ||||||||||||||||
Residential
|
2,540 | 2,670 | 2,599 | 33 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
6,101 | 6,341 | 8,573 | 108 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
||||||||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
5,970 | 5,970 | $ | 724 | 2,985 | 48 | ||||||||||||||
Residential
|
||||||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
5,970 | 5,970 | 724 | 2,985 | 48 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial
|
1,677 | 1,787 | 1,621 | 41 | ||||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
970 | 970 | 485 | |||||||||||||||||
Commercial
|
6,884 | 6,884 | 724 | 6,853 | 82 | |||||||||||||||
Residential
|
2,540 | 2,670 | 2,599 | 33 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 12,071 | $ | 12,311 | $ | 724 | $ | 11,558 | $ | 156 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
|
|
|
|
|
||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
|
|
Recorded
Investment |
|
|
Unpaid
Principal Balance |
|
|
Related
Allowance |
|
|
For the Year Ended
|
|
||||||||
December 31, 2020
|
|
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 | |||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
March 31, 2020
|
|
Recorded
Investment |
|
|
Unpaid
Principal Balance |
|
|
Related
Allowance |
|
|
This Quarter
|
|
||||||||
|
Average
Recorded Investment |
|
|
Interest
Income Recognized |
|
|||||||||||||||
With no related allowance:
|
|
|
|
|
|
|||||||||||||||
Commercial
|
$ | 1,098 | $ | 1,208 | $ | 873 | $ | 68 | ||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
2,550 | 2,550 | 2,837 | 47 | ||||||||||||||||
Residential
|
2,292 | 2,422 | 2,345 | 25 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
5,940 | 6,180 | 6,055 | 140 | ||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
With an allowance recorded:
|
||||||||||||||||||||
Commercial
|
121 | 121 | $ | 29 | 653 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
367 | 367 | 87 | 513 | 4 | |||||||||||||||
Residential
|
45 | |||||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
488 | 488 | 116 | 1,211 | 4 | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Commercial
|
1,219 | 1,329 | 29 | 1,526 | 68 | |||||||||||||||
Real estate:
|
||||||||||||||||||||
Construction
|
||||||||||||||||||||
Commercial
|
2,917 | 2,917 | 87 | 3,350 | 51 | |||||||||||||||
Residential
|
2,292 | 2,422 | 2,390 | 25 | ||||||||||||||||
Consumer
|
||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|||||||||||
Total
|
$ | 6,428 | $ | 6,668 | $ | 116 | $ | 7,266 | $ | 144 | ||||||||||
|
|
|
|
|
|
|
|
|
|
• |
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.
|
March 31,
2021 |
December 31,
2020 |
|||||||
Unused portion of lines of credit
|
$ |
100,153
|
$ |
92,848
|
||||
Construction loans
|
14,906 | 24,751 | ||||||
Commitments to extend credit
|
5,740 | 10,275 | ||||||
Deposit overdraft protection
|
17,909 | 18,117 | ||||||
Standby and performance letters of credit
|
7,313 | 6,577 | ||||||
|
|
|
|
|||||
Total
|
$ | 146,021 | $ | 152,568 | ||||
|
|
|
|
|
|
March 31,
2021 |
|
|
December 31,
2020 |
|
||
Other real estate owned
|
$ | 219 | $ | 422 | ||||
Bank owned life insurance
|
31,603 | 31,425 | ||||||
Restricted equity securities
|
1,774 | 1,759 | ||||||
Deferred tax assets
|
4,066 | 3,907 | ||||||
Lease
right-of-use
|
2,133 | 2,278 | ||||||
Other assets
|
9,866 | 8,629 | ||||||
|
|
|
|
|||||
Total
|
$ |
49,661
|
$ | 48,420 | ||||
|
|
|
|
• |
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.
|
|
|
Fair Value Measurement Using
|
|
|||||||||||||
March 31, 2021
|
|
Amount
|
|
|
Quoted Prices in
Active Markets for Identical Assets (Level 1) |
|
|
Significant
Other Observable Inputs (Level 2) |
|
|
Significant
Unobservable Inputs (Level 3) |
|
||||
U.S. Treasury securities
|
$ | 18,978 | $ | 18,978 | ||||||||||||
State and Municipals:
|
||||||||||||||||
Taxable
|
23,058 | $ | 23,058 | |||||||||||||
Tax-exempt
|
43,552 | 43,552 | ||||||||||||||
Mortgage-backed securities:
|
||||||||||||||||
U.S. Government agencies
|
36,385 | 36,385 | ||||||||||||||
U.S. Government-sponsored enterprises
|
20,697 | 20,697 | ||||||||||||||
Corporate debt obligations
|
13,193 | 13,193 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 155,863 | $ | 18,978 | $ | 136,885 | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap hedg
e
|
|
$
|
829
|
|
|
|
|
|
|
$
|
829
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31, 2020
|
|
Fair Value Measurement Using
|
|
|||||||||||||
|
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 | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest rate swap hedg
e
|
|
$
|
172
|
|
|
|
|
|
|
$
|
172
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fair Value Measurement Using
|
|
|||||||||||||
March 31, 2021
|
|
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
|
$ | 219 | $ | 219 | ||||||||||||
Impaired loans, net of related allowance
|
5,246 | 5,246 | ||||||||||||||
|
|
|
|
|
|
|
|
|||||||||
Total
|
$ | 5,465 | $ | 5,465 | ||||||||||||
|
|
|
|
|
|
|
|
December 31, 2020
|
|
Fair Value Measurement Using
|
|
|||||||||||||
|
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 | ||||||||||||
|
|
|
|
|
|
|
|
Quantitative Information about Level 3 Fair Value Measurements
|
||||||||||||||||
March 31, 2021
|
Fair Value
Estimate |
Valuation Techniques
|
Unobservable Input
|
Range
(Weighted Average) |
||||||||||||
Other real estate owned
|
$ | 219 | Appraisal of collateral | Appraisal adjustments | 0.0% to 3.0% (3.0%) | |||||||||||
Liquidation expenses | 10.0% to 10.0% (10.0%) | |||||||||||||||
Impaired loans
|
5,246 | Appraisal of collateral | Appraisal adjustments | 0.0% to 0.0% (0.0%) | ||||||||||||
Liquidation expenses | 7.0% to 7.0% (7.0%) | |||||||||||||||
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%) |
Carrying
Amount |
Fair Value Hierarchy
|
|||||||||||||||||||
March 31, 2021
|
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
|
$ | 63,164 | $ | 63,164 | $ | 63,164 | ||||||||||||||
Investment securities
|
155,863 | 155,863 | 18,978 | $ | 136,885 | |||||||||||||||
Loans held for sale
|
2,502 | 2,502 | 2,502 | |||||||||||||||||
Net loans
(1)
|
1,079,684 |
1,061,911
|
$ |
1,061,911
|
||||||||||||||||
Accrued interest receivable
|
4,189 | 4,189 | 572 | 3,617 | ||||||||||||||||
Restricted equity securities
|
1,774 | 1,774 | ||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits
|
$ | 1,080,928 | $ | 1,083,439 | $ | 1,083,439 | ||||||||||||||
Long-term debt
|
180,644 | 183,561 | 183,561 | |||||||||||||||||
Accrued interest payable
|
1,347 | 1,347 | 1,347 | |||||||||||||||||
Interest rate swap hedges
|
829 | 829 | 829 |
|
|
Carrying
Amount |
|
|
Fair Value Hierarchy
|
|
||||||||||||||
December 31, 2020
|
|
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 debt
|
228,765 | 231,748 | 231,748 | |||||||||||||||||
Accrued interest payable
|
1,038 | 1,038 | 1,038 | |||||||||||||||||
Interest rate swap hedges
|
172 | 172 | 172 |
(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 March 31, 2021 and December 31, 2021 was measured using an exit price notion.
|
Item 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
March 31, 2021
|
||||||||
Industry:
|
Amount
|
% of Total
Loans |
||||||
Mining, Quarry, Oil and Gas
|
$ | 2,482 | 0.23 | % | ||||
Construction-Land Subdivision
|
20,004 | 1.83 | % | |||||
Manufacturing
|
18,064 | 1.65 | % | |||||
Wholesale Trade
|
3,916 | 0.36 | % | |||||
Automobile Dealers
|
1,975 | 0.18 | % | |||||
Non-Residential
Rentals and Leasing
|
254,703 | 23.33 | % | |||||
Residential Rental and Leasing
|
113,388 | 10.39 | % | |||||
Health Care
|
17,145 | 1.57 | % | |||||
Arts, Entertainment and Recreation
|
6,288 | 0.58 | % | |||||
Hospitality
|
66,914 | 6.13 | % | |||||
Restaurants
|
8,168 | 0.75 | % | |||||
|
|
|||||||
$ | 513,047 | 47.00 | % | |||||
|
|
March 31,
2021 |
December 31,
2020 |
|||||||
Unused portion of lines of credit
|
$ | 100,153 | $ | 92,848 | ||||
Construction loans
|
14,906 | 24,751 | ||||||
Commitments to extend credit
|
5,740 | 10,275 | ||||||
Deposit overdraft protection
|
17,909 | 18,117 | ||||||
Standby and performance letters of credit
|
7,313 | 6,577 | ||||||
|
|
|
|
|||||
Total
|
$ | 146,021 | $ | 152,568 | ||||
|
|
|
|
2021
|
2020
|
|||||||
United States
|
6.0 | % | 4.4 | % | ||||
Pennsylvania
|
7.3 | % | 5.6 | % | ||||
Berks County
|
7.6 | % | 5.5 | % | ||||
Blair County
|
6.7 | % | 5.7 | % | ||||
Bucks County
|
6.1 | % | 4.8 | % | ||||
Centre County
|
4.9 | % | 4.1 | % | ||||
Clearfield County
|
8.0 | % | 7.4 | % | ||||
Dauphin County
|
7.2 | % | 4.9 | % | ||||
Huntingdon County
|
8.8 | % | 8.7 | % | ||||
Lebanon County
|
6.3 | % | 4.8 | % | ||||
Lehigh County
|
7.3 | % | 5.6 | % | ||||
Lycoming County
|
7.8 | % | 6.8 | % | ||||
Perry County
|
5.5 | % | 4.7 | % | ||||
Schuylkill County
|
7.8 | % | 6.5 | % | ||||
Somerset County
|
7.9 | % | 7.7 | % |
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
|
||||||||||||||||||||||||||||||||
Construction:
|
||||||||||||||||||||||||||||||||
Commercial
|
1 | $ | 973 | 1.96 | % | $ | 30 | $ | 49 | |||||||||||||||||||||||
Hospitality
|
1 | 1,501 | 5.26 | % | 69.04 | % | 75,28 | % | 33 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
2 | 2,474 | 3.16 | % | 30 | 82 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Commercial Real Estate:
|
||||||||||||||||||||||||||||||||
Multi Family
|
||||||||||||||||||||||||||||||||
Owner Occupied.
|
||||||||||||||||||||||||||||||||
Non-Owner
Occupied
|
2 | 2,032 | 0.80 | % | 85 | 29 | ||||||||||||||||||||||||||
Hospitality
|
3 | 13,479 | 37.77 | % | 68.07 | % | 65.71 | % | 604 | 358 | ||||||||||||||||||||||
Agricultural
|
1 | 154 | 0.58 | % | 103 | 10 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
6 | 15,665 | 3.20 | % | 792 | 397 | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Residential Real Estate
|
7 | 473 | 0.25 | % | 16 | 16 | ||||||||||||||||||||||||||
Consumer
|
||||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||
Total
|
15 | $ | 18,612 | 1.70 | % | 2.12 | % | $ | 838 | $ | 495 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
• |
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.
|
• |
Total assets of less than $10 billion,
|
• |
Total trading assets plus liabilities of 5.0% or less of consolidated assets,
|
• |
Total
off-balance
sheet exposures of 25.0% or less of consolidated assets,
|
• |
Cannot be an advanced approaches banking organization, and
|
• |
Leverage ratio greater than 9.0%, or temporarily prescribed threshold established in response to
COVID-19.
|
Actual
|
Minimum Regulatory
Capital Ratios under Basel III |
Well Capitalized under
Basel III |
||||||||||||||||||||||
March 31, 2021:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
CBLR Framework
|
||||||||||||||||||||||||
Tier 1 capital (to average total assets): (i.e., leverage ratio)
|
$ | 118,560 | 9.9 | % |
(1)
|
(1)
|
$ | 102,214 |
³
|
8.5 | % | |||||||||||||
Actual
|
Minimum Regulatory
Capital Ratios under Basel III |
Well Capitalized under
Basel III |
||||||||||||||||||||||
December 31, 2020:
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
Total risk-based capital (to risk-weighted assets)
|
$ | 126,108 | 14.2 | % | $ | 93,462 |
³
|
10.5 | % | $ | 89,011 |
³
|
10.0 | % | ||||||||||
Tier 1 capital (to risk-weighted assets)
|
114,967 | 12.9 | 75,659 |
³
|
8 | .5 | 71,209 |
³
|
8 | .0 | ||||||||||||||
Common equity tier 1 risk-based capital (to risk-weighted assets)
|
114,967 | 12.9 | 62,308 |
³
|
7 | .0 | 57,857 |
³
|
6 | .5 | ||||||||||||||
Tier 1 capital (to average total assets)
|
114,967 | 9.8 | 47,102 |
³
|
4 | .0 | 58,877 |
³
|
5 | .0 |
(1)
|
Under the CBLR Framework, capital adequacy amounts and ratios are not applicable as qualifying depositary institutions are evaluated solely on whether or not they are well capitalized.
|
• |
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 rates; and
|
• |
The level of nonperforming assets.
|
Three months ended
|
||||||||||||||||||||||||
March 31, 2021
|
March 31, 2020
|
|||||||||||||||||||||||
Average
Balance |
Interest
|
Yield/
Rate |
Average
Balance |
Interest
|
Yield/
Rate |
|||||||||||||||||||
Assets:
|
||||||||||||||||||||||||
Earning assets:
|
||||||||||||||||||||||||
Loans:
|
||||||||||||||||||||||||
Taxable
|
$ | 1,095,594 | $ | 10,348 | 3.83 | % | $ | 838,825 | $ | 9,782 | 4.69 | % | ||||||||||||
Tax exempt
|
26,952 | 223 | 3.36 | % | 35,595 | 310 | 3.50 | % | ||||||||||||||||
Investments:
|
||||||||||||||||||||||||
Taxable
|
91,549 | 494 | 2.19 | % | 77,400 | 535 | 2.78 | % | ||||||||||||||||
Tax exempt
|
41,443 | 192 | 1.88 | % | 4,628 | 47 | 4.08 | % | ||||||||||||||||
Interest bearing deposits
|
36,101 | 9 | 0.10 | % | 30,490 | 89 | 1.17 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total earning assets
|
1,291,639 | 11,266 | 3.54 | % | 986,938 | 10,763 | 4.39 | % | ||||||||||||||||
Less: allowance for loan losses
|
12,188 | 7,273 | ||||||||||||||||||||||
Other assets
|
84,774 | 105,680 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total assets
|
$ | 1,364,225 | $ | 1,085,345 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Liabilities and Stockholders’ Equity:
|
||||||||||||||||||||||||
Interest bearing liabilities:
|
||||||||||||||||||||||||
Money market accounts
|
$ | 148,513 | 43 | 0.12 | % | $ | 102,072 | 171 | 0.67 | % | ||||||||||||||
NOW accounts
|
317,296 | 86 | 0.11 | % | 270,559 | 319 | 0.47 | % | ||||||||||||||||
Savings accounts
|
163,890 | 32 | 0.08 | % | 133,267 | 60 | 0.18 | % | ||||||||||||||||
Time deposits
|
234,066 | 762 | 1.32 | % | 289,186 | 1,239 | 1.72 | % | ||||||||||||||||
Short term borrowings
|
989 | 5 | 2.03 | % | ||||||||||||||||||||
Long-term debt
|
209,781 | 646 | 1.25 | % | 11,817 | 123 | 4.19 | % | ||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||
Total interest-bearing liabilities
|
1,073,546 | 1,569 | 0.59 | % | 807,890 | 1,917 | 0.95 | % | ||||||||||||||||
Non-interest-bearing
demand deposits
|
176,895 | 144,630 | ||||||||||||||||||||||
Other liabilities
|
14,861 | 13,668 | ||||||||||||||||||||||
Stockholders’ equity
|
98,923 | 119,157 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total liabilities and stockholders’ equity
|
$ | 1,364,225 | $ | 1,085,345 | ||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest income/spread
|
$ | 9,697 | 2.95 | % | $ | 8,846 | 3.44 | % | ||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Net interest margin
|
3.04 | % | 3.60 | % | ||||||||||||||||||||
Tax-equivalent
adjustments:
|
||||||||||||||||||||||||
Loans
|
$ | 47 | $ | 65 | ||||||||||||||||||||
Investments
|
40 | 10 | ||||||||||||||||||||||
|
|
|
|
|||||||||||||||||||||
Total adjustments
|
$ | 87 | $ | 75 | ||||||||||||||||||||
|
|
|
|
Item 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
Item 4.
|
Controls and Procedures.
|
Item 1.
|
Legal Proceedings
|
Item 1A.
|
Risk Factors
|
Item 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
Item 3.
|
Defaults upon Senior Securities
|
Item 4.
|
Mine Safety Disclosures
|
Item 5.
|
Other Information
|
Item 6.
|
Exhibits
|
31.1 | Section 302 Certification of the Chief Executive Officer (Pursuant to Rule 13a-14(a)/15d-14(a)). | |
31.2 | Section 302 Certification of the Chief Financial Officer (Pursuant to Rule 13a-14(a)/15d-14(a)). | |
32.1 | Chief Executive Officer’s §1350 Certification (Pursuant to Rule 13a-14(b)/15d-14(b)). | |
32.2 | Chief Financial Officer’s §1350 Certification (Pursuant to Rule 13a-14(b)/15d-14(b)). | |
101 | Interactive Data File (XBRL). | |
104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). |
By: | /s/ Brett D. Fulk | |
Brett D. Fulk | ||
President and Chief Executive Officer | ||
(Principal Executive Officer) | ||
Date: May 6, 2021 |
By: | /s/ Scott A. Seasock | |
Scott A. Seasock | ||
Chief Financial Officer | ||
(Principal Financial Officer) | ||
Date: May 6, 2021 |
Exhibit 31.1
Riverview Financial Corporation
CERTIFICATION
I, Brett D. Fulk certify that:
1. I have reviewed this quarterly report on Form 10-Q 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 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 fiscal 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: May 6, 2021 | By: | /s/ Brett D. Fulk | ||
Brett D. Fulk | ||||
President and Chief Executive Officer |
Exhibit 31.2
Riverview Financial Corporation
CERTIFICATION
I, Scott A. Seasock certify that:
1. I have reviewed this quarterly report on Form 10-Q 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 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 fiscal 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: May 6, 2021 | By: | /s/ Scott A. Seasock | ||
Scott A. Seasock | ||||
Chief Financial Officer |
Exhibit 32.1
Riverview Financial Corporation
CHIEF EXECUTIVE OFFICER
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, President and Chief Executive Officer of Riverview Financial Corporation (the Company), hereby certify that, to the best of my knowledge, the Companys Form 10-Q for the quarter ended March 31, 2021 (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 quarter ended March 31, 2021. |
Date: May 6, 2021 | By: | /s/ Brett D. Fulk | ||
Brett D. Fulk | ||||
President and Chief Executive Officer |
Exhibit 32.2
Riverview Financial Corporation
CHIEF FINANCIAL OFFICER
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 Form 10-Q for the quarter ended March 31, 2021 (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 quarter ended March 31, 2021. |
Date: May 6, 2021 | By: | /s/ Scott A. Seasock | ||
Scott A. Seasock |
||||
Chief Financial Officer |