Cover Page - shares	6 Months Ended
Cover Page - shares	Jun. 30, 2021	Aug. 04, 2021
Cover page [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Jun. 30, 2021
Document Transition Report	false
Entity File Number	001-37661
Entity Registrant Name	SMARTFINANCIAL INC.
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1173944
Entity Address, Address Line One	5401 Kingston Pike, Suite 600
Entity Address, City or Town	Knoxville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37919
City Area Code	865
Local Phone Number	437-5700
Title of 12(b) Security	Common Stock, par value $1.00
Trading Symbol	SMBK
Security Exchange Name	NASDAQ
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		15,109,736
Amendment Flag	false
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q2
Entity Central Index Key	0001038773
Current Fiscal Year End Date	--12-31

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
ASSETS:
Cash and due from banks	$ 59,305	$ 50,460
Interest-bearing deposits with banks	544,095	364,846
Federal funds sold	70,115	66,413
Total cash and cash equivalents	673,515	481,719
Securities available-for-sale, at fair value	250,817	215,634
Other investments	14,584	14,794
Loans held for sale	4,334	11,721
Loans and leases	2,468,318	2,382,243
Less: Allowance for loan and leases losses	(18,310)	(18,346)
Loans and leases, net	2,450,008	2,363,897
Premises and equipment, net	72,314	72,682
Other real estate owned	2,499	4,619
Goodwill and other intangibles, net	90,966	86,471
Bank owned life insurance	72,013	31,215
Other assets	23,306	22,197
Total assets	3,654,356	3,304,949
Deposits:
Noninterest-bearing demand	807,560	685,957
Interest-bearing demand	702,470	649,129
Money market and savings	1,140,029	919,631
Time deposits	489,413	550,498
Total deposits	3,139,472	2,805,215
Borrowings	78,834	81,199
Subordinated debt	39,388	39,346
Other liabilities	23,269	22,021
Total liabilities	3,280,963	2,947,781
Stockholders' equity:
Preferred stock, $1 par value; 2,000,000 shares authorized; No shares issued and outstanding	0	0
Common stock, $1 par value; 40,000,000 shares authorized; 15,109,736 and 15,107,214 shares issued and outstanding, respectively	15,110	15,107
Additional paid-in capital	252,039	252,693
Retained earnings	103,906	87,185
Accumulated other comprehensive income	2,338	2,183
Total stockholders' equity	373,393	357,168
Total liabilities and stockholders' equity	$ 3,654,356	$ 3,304,949

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2021	Dec. 31, 2020
Statement of Financial Position [Abstract]
Preferred stock, par value (in dollars per share)	$ 1	$ 1
Preferred stock, shares authorized (in shares)	2,000,000	2,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 1	$ 1
Common stock, shares authorized (in shares)	40,000,000	40,000,000
Common stock, shares issued (in shares)	15,109,736	15,107,214
Common stock, shares outstanding (in shares)	15,109,736	15,107,214

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Interest Income:
Loans and leases, including fees	$ 28,323	$ 28,663	$ 56,341	$ 55,097
Securities available-for-sale:
Taxable	916	589	1,640	1,268
Tax-exempt	304	416	563	699
Federal funds sold and other earning assets	309	277	600	879
Total interest income	29,852	29,945	59,144	57,943
Interest Expense:
Deposits	2,248	3,366	4,579	8,120
Borrowings	123	249	241	339
Subordinated debt	584	584	1,167	1,167
Total interest expense	2,955	4,199	5,987	9,626
Net interest income	26,897	25,746	53,157	48,317
Provision for loan and lease losses	(5)	2,850	62	6,049
Net interest income after provision for loan losses	26,902	22,896	53,095	42,268
Noninterest Income:
Service charges on deposit accounts	1,048	709	2,057	1,479
Gain on sale of securities		16		16
Mortgage banking	1,105	931	2,244	1,515
Investment services	567	363	1,098	801
Insurance commissions	557	473	2,023	742
Interchange and debit card transaction fees, net	922	508	1,761	784
Other	944	511	1,652	993
Total noninterest income	5,143	3,511	10,835	6,330
Noninterest Expense:
Salaries and employee benefits	12,203	10,357	23,072	20,363
Occupancy and equipment	2,294	1,996	4,635	3,906
FDIC insurance	371	180	741	360
Other real estate and loan related expenses	506	346	1,108	892
Advertising and marketing	230	202	419	400
Data processing and technology	1,509	1,155	2,889	2,163
Professional services	849	868	1,490	1,578
Amortization of intangibles	441	405	886	767
Merger related and restructuring expenses	372	1,477	475	3,573
Other	2,022	1,820	4,547	3,598
Total noninterest expenses	20,797	18,806	40,262	37,600
Income before income tax expense	11,248	7,601	23,668	10,998
Income tax expense	2,470	1,427	5,134	2,091
Net income	$ 8,778	$ 6,174	$ 18,534	$ 8,907
Earnings per common share:
Basic (in dollars per share)	$ 0.59	$ 0.41	$ 1.24	$ 0.60
Diluted (in dollars per share)	$ 0.58	$ 0.41	$ 1.23	$ 0.60
Weighted average common shares outstanding:
Basic (in shares)	15,003,657	15,152,768	15,007,593	14,773,935
Diluted (in shares)	15,126,184	15,202,335	15,118,924	14,842,486

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Comprehensive Income [Abstract]
Net income	$ 8,778	$ 6,174	$ 18,534	$ 8,907
Other comprehensive income:
Unrealized holding gains (losses) and hedge effects on securities available-for-sale arising during the period	1,554	1,808	(1,255)	2,903
Tax effect	(401)	(394)	338	(638)
Reclassification adjustment for realized (gains) losses included in net income		16		16
Tax effect		(4)		(4)
Unrealized gains (losses) on securities available-for-sale arising during the period, net of tax	1,153	1,426	(917)	2,277
Unrealized gains (losses) on fair value municipal security hedges	139	691	1,451	(2,381)
Tax effect	(37)	(278)	(379)	528
Unrealized gains (losses) on fair value municipal security hedge instruments arising during the period, net of tax	102	413	1,072	(1,853)
Total other comprehensive income	1,255	1,839	155	424
Comprehensive income	$ 10,033	$ 8,013	$ 18,689	$ 9,331

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Additional Paid-in Capital [Member]	Retained Earnings [Member]	AOCI Attributable to Parent [Member]	Total
BALANCE at Dec. 31, 2019	$ 14,008	$ 232,732	$ 65,839	$ 168	$ 312,747
BALANCE (in shares) at Dec. 31, 2019	14,008,233
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			8,907		8,907
Other comprehensive loss				424	424
Exercise of stock options	$ 16	162			178
Exercise of stock options (in shares)	15,358
Restricted stock	$ 32	(32)
Restricted stock (in shares)	32,318
Common stock issued to shareholders	$ 1,293	23,254			24,547
Common stock issued to shareholders (in shares)	1,292,578
Stock compensation expense		223			223
Common stock dividends			(1,463)		(1,463)
Repurchases of common stock	$ (132)	(1,943)			(2,075)
Repurchases of common stock (in shares)	(131,555)
BALANCE at Jun. 30, 2020	$ 15,217	254,396	73,283	592	343,488
BALANCE (in shares) at Jun. 30, 2020	15,216,932
BALANCE at Mar. 31, 2020	$ 15,222	254,356	67,869	(1,247)	336,200
BALANCE (in shares) at Mar. 31, 2020	15,221,990
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			6,174		6,174
Other comprehensive loss				1,839	1,839
Exercise of stock options	$ 1	4			5
Exercise of stock options (in shares)	500
Restricted stock (in shares)	418
Stock compensation expense		$ 113			113
Common stock dividends			(760)		$ (760)
Repurchases of common stock (in shares)	(5,976)	(77,000)			(83,000)
BALANCE at Jun. 30, 2020	$ 15,217	$ 254,396	73,283	592	$ 343,488
BALANCE (in shares) at Jun. 30, 2020	15,216,932
BALANCE at Dec. 31, 2020	$ 15,107	252,693	87,185	2,183	357,168
BALANCE (in shares) at Dec. 31, 2020	15,107,214
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			18,534		18,534
Other comprehensive loss				155	155
Exercise of stock options	$ 19	175			194
Exercise of stock options (in shares)	19,165
Restricted stock	$ 43	(43)
Restricted stock (in shares)	42,967
Stock compensation expense		363			363
Common stock dividends			(1,813)		(1,813)
Repurchases of common stock	$ (59)	(1,149)			(1,208)
Repurchases of common stock (in shares)	(59,610)
BALANCE at Jun. 30, 2021	$ 15,110	252,039	103,906	2,338	373,393
BALANCE (in shares) at Jun. 30, 2021	15,109,736
BALANCE at Mar. 31, 2021	$ 15,105	251,836	96,034	1,083	364,058
BALANCE (in shares) at Mar. 31, 2021	15,104,536
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income			8,778		8,778
Other comprehensive loss				1,255	1,255
Exercise of stock options	$ 3	43			46
Exercise of stock options (in shares)	3,200
Restricted stock	$ 2	(2)
Restricted stock (in shares)	2,000
Stock compensation expense		162			162
Common stock dividends			(906)		(906)
BALANCE at Jun. 30, 2021	$ 15,110	$ 252,039	$ 103,906	$ 2,338	$ 373,393
BALANCE (in shares) at Jun. 30, 2021	15,109,736

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Statement of Stockholders' Equity [Abstract]
Common stock dividend, per share	$ 0.06	$ 0.05	$ 0.12	$ 0.10

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020
Cash flows from operating activities:
Net income	$ 18,534	$ 8,907
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	3,132	2,788
Accretion of fair value purchase accounting adjustments, net	(2,397)	(2,729)
Provision for loan and lease losses	62	6,049
Stock compensation expense	363	223
Gain from redemption and sale of securities available-for-sale		(16)
Deferred income tax expense	147	209
Increase in cash surrender value of bank owned life insurance	(797)	(345)
Net losses from sale of other real estate owned	170	81
Net gains from mortgage banking	(2,244)	(1,515)
Origination of loans held for sale	(65,896)	(49,888)
Proceeds from sales of loans held for sale	75,528	50,929
Net change in:
Accrued interest receivable	1,309	(5,236)
Accrued interest payable	(218)	318
Other assets	(1,015)	(10,018)
Other liabilities	4,503	1,523
Net cash provided by operating activities	31,181	1,280
Cash flows from investing activities:
Proceeds from sales of securities available-for-sale		6,875
Proceeds from maturities and calls of securities available-for-sale	11,275	15,450
Proceeds from paydowns of securities available-for-sale	15,989	9,144
Proceeds from sales of other investments	290
Purchases of securities available-for-sale	(65,180)	(41,958)
Purchase of other investments	(80)	(1,223)
Purchases of bank owned life insurance	(40,000)
Net increase in loans	(31,545)	(321,192)
Purchase of premises and equipment	(1,633)	(3,417)
Proceeds from sale of other assets owned	1,662	406
Net cash (paid) received from business combination	(59,381)	46,132
Net cash used in investing activities	(168,603)	(289,783)
Cash flow from financing activities:
Net increase in deposits	334,410	220,128
Net decrease in securities sold under agreements to repurchase	(1,969)	(527)
Proceeds from borrowings		338,340
Repayment borrowings	(396)	(50,581)
Cash dividends paid	(1,813)	(1,463)
Issuance of common stock	194	178
Repurchases of common stock	(1,208)	(2,075)
Net cash provided by financing activities	329,218	504,000
Net change in cash and cash equivalents	191,796	215,497
Cash and cash equivalents, beginning of period	481,719	183,970
Cash and cash equivalents, end of period	673,515	399,467
Supplemental disclosures of cash flow information:
Cash paid during the period for interest	6,205	9,308
Cash paid during the period for income taxes	7,720	2,948
Noncash investing and financing activities:
Acquisition of real estate through foreclosure	151	971
Change in goodwill due to acquisitions	$ 2,723	$ 8,532

Presentation of Financial Information

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Presentation of Financial Information

Note 1. Presentation of Financial Information

Nature of Business:

SmartFinancial, Inc. (the "Company") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the "Bank"). The Company provides a variety of financial services to individuals and corporate customers through its offices in East and Middle Tennessee, Alabama, and the Florida Panhandle. The Bank’s primary deposit products are noninterest-bearing and interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans.

Basis of Presentation and Accounting Estimates:

The accounting and financial reporting policies of the Company and its wholly-owned subsidiary conform to U.S. generally accepted accounting principles (“GAAP”) and reporting guidelines of banking regulatory authorities and regulators. The accompanying interim consolidated financial statements for the Company and its wholly-owned subsidiary have not been audited. All material intercompany balances and transactions have been eliminated.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses, the valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, the fair value of financial instruments, goodwill, and the fair value of assets acquired and liabilities assumed in acquisitions. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in the Company’s annual report on Form 10-K for the year ended December 31, 2020.

Recently Issued and Adopted Accounting Pronouncements:

In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Finally, it clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020. ASU 2019-12 did not have a material impact on the Company’s Consolidated Financial Statements.

Recently Issued Not Yet Effective Accounting Pronouncements:

During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2020 as filed in its Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). The following is a summary of recent authoritative pronouncements issued but not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company.

In October 2019, the Financial Accounting Standards Board approved a delay for the implementation of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The Board decided that the Current Expected Credit Loss (“CECL”) model will be effective for larger Public Business Entities ("PBEs") that are SEC filers, excluding Smaller Reporting Companies ("SRCs") as currently defined by the SEC, for fiscal years beginning after December 15, 2019, and interim

periods within those fiscal years. For calendar-year-end companies that are not SRCs, this will be January 1, 2020. The determination of whether an entity is an SRC will be based on an entity’s most recent assessment in accordance with SEC regulations and the Company meets the regulations as an SRC. For SRCs and other entities, the Board decided that CECL will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 1, 2019, for calendar-year-end companies). The Company does not plan to adopt this standard early and being that the Company is an SRC, adoption is required for fiscal years beginning after December 15, 2022.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”). It is intended to help stakeholders during the global market-wide reference rate transition period. The Company is implementing a transition plan to identify and modify its loans and other financial instruments, including certain indebtedness, with attributes that are either directly or indirectly influenced by LIBOR. The Company is assessing ASU 2020-04 and its impact on the transition away from LIBOR for its loan and other financial instruments.

Operating, Accounting and Reporting Considerations related to COVID-19:

The COVID-19 pandemic has negatively impacted the global economy. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to:

●

Accounting for Loan Modifications – Section 4013 of the CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR, and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. See Note 5 - Loans and Leases and Allowance for Loan and Lease Losses for more information.

●

Paycheck Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s (“SBA”) 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the PPP, including additional funding for first and second draws of PPP loans up to March 31, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extends the program to May 31, 2021. The Company is a participant in the PPP. See Note 5 - Loans and Leases and Allowance for Loan and Lease Losses for more information.

Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to:

●

Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as

payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. See Note 5 - Loans and Leases and Allowance for Loan and Lease Losses for more information.

●

Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral.

●

Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual.

The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The Company offered deferral options of: 1) three months deferral of payment and then three months of interest only, 2) three months of interest only, 3) three months deferral of payment, 4) six months of interest only. These modifications generally meet the criteria of both Section 4013 of the CARES Act and the joint interagency statement, and therefore, the Company does not account for such loan modifications as TDRs. On August 3, 2020, the Federal Financial Institutions Examination Council on behalf of its members (collectively “the FFIEC members”) issued a joint statement on additional loan accommodations related to COVID-19. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. To be eligible, each loan modification must be (1) related to the COVID event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA. All of the Company’s loan modifications granted under Section 4013 of the CARES Act are in compliance with the aforementioned FFIEC requirements. Accordingly, the Company does not account for such loan modifications as TDRs.

Reclassifications:

Certain captions and amounts in the 2020 consolidated financial statements were reclassified to conform to the 2021 financial statement presentation. These reclassifications had no impact on net income or shareholders’ equity as previously reported.

Business Combinations

6 Months Ended

Jun. 30, 2021

Business Combinations [Abstract]

Business Combinations

Note 2. Business Combinations

Fountain Leasing, LLC

On May 3, 2021, the Company completed the acquisition of Fountain Leasing, LLC, a Tennessee limited liability company, pursuant to the Purchase Agreement (the “Purchase Agreement”), dated May 2, 2021, by and among the Bank and the members of Fountain Leasing, LLC.

Following the closing of the acquisition, on May 4, 2021, the Company changed the name of Fountain Leasing, LLC to Fountain Equipment Finance, LLC (“Fountain”).

In connection with the acquisition, the Company acquired $54.1 million of assets and assumed $683 thousand of liabilities. Pursuant to the Purchase Agreement, the Company paid an aggregate amount of consideration to the Fountain members of $14.0 million in cash at closing, and the Company repaid approximately $45.8 million of Fountain’s indebtedness. In addition to the closing consideration, the Purchase Agreement contains a performance-based earnout, pursuant to which the former members of Fountain could be entitled to up to $6.0 million, which is excluded from consideration pursuant to ASC 805, in future cash payments from the Company based on future results of the acquired business over various periods through December 31, 2026. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $2.4 million, representing the intangible value of Fountains business and reputation within the markets it served. The goodwill recognized is expected to be deductible for income tax purposes. The Company established an intangible asset related to customer relationships of $2.7 million, amortizing sum-of-the-years digits over 96 months (8 years).

The purchased assets and assumed liabilities were recorded at their acquisition date fair values ⁽¹⁾ and are summarized in the table below (in thousands).


	As recorded		Fair value		Subsequent		As recorded
	by Fountain		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	413	$	—	$	—	$	413
Leases		54,945		(720)		—		54,225
Allowance for lease losses		(1,796)		1,796		—		—
Customer list intangible		—		2,658		—		2,658
Other repossessed assets		319		—		—		319
Other assets		233		—		—		233
Total assets acquired	$	54,114	$	3,734	$	—	$	57,848

Liabilities:
Payables and other liabilities		683		(229)		—		454
Total liabilities assumed		683		(229)		—		454
Excess of assets acquired over liabilities assumed	$	53,431
Aggregate fair value adjustments			$	3,963	$	—
Total identifiable net assets								57,394
Consideration transferred:
Cash								59,794
Total fair value of consideration transferred								59,794

Goodwill							$	2,400

⁽¹⁾Fair values are preliminary and are subject to refinement for a period of one year after the closing date of an acquisition as information relative to the closing date fair value becomes available.

The following table presents additional information related to the purchased credit impaired financing leases (ASC 310-30) of the acquired lease portfolio at the acquisition date (in thousands):


	May 3, 2021
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	6,018
Non-accretable differences		447
Cash flows expected to be collected		5,571
Accretable yield		649
Fair value	$	4,922

The following table discloses the impact of the merger with Fountain since the acquisition date through the three and six months June 30, 2021. The table also presents certain pro-forma information (net interest income plus total noninterest income (“Revenue”) and net income) as if the Fountain acquisition had occurred on January 1, 2020. The pro-forma financial information is not necessarily indicative of the results of operations had the acquisitions been effective as of these dates.

Merger-related costs from the three and six months ended June 30, 2021, were $140 thousand for both periods and have been excluded from the pro-forma information presented below. The actual results and pro-forma information were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	Revenue		Net Income		Revenue		Net Income
2021:
Actual Fountain results included in statement of income since acquisition date	$	1,137	$	345	$	1,137	$	345
Supplemental consolidation pro-forma as if Fountain had been acquired January 1, 2021		32,487		8,844		65,780		18,487

2020:
Supplemental consolidation pro-forma as if Fountain had been acquired January 1, 2020	$	30,659	$	6,434	$	57,451	$	9,530

Progressive Financial Inc.

On March 1, 2020, the Company completed the merger of Progressive Financial Group, Inc., a Tennessee corporation (“PFG”), pursuant to an Agreement and Plan of Merger dated October 29, 2019 (the “Merger Agreement”).

In connection with the merger, the Company acquired $301.0 million of assets and assumed $272.1 million of liabilities. Pursuant to the Merger Agreement, each outstanding share of Progressive common stock was converted into and cancelled in exchange to the right to receive $474.82 in cash, and 62.3808 shares of SmartFinancial common stock. SmartFinancial issued 1,292,578 shares of SmartFinancial common stock and paid $9.8 million in cash as consideration for the Merger. The fair value of consideration paid exceeded the fair value of the identifiable assets and liabilities acquired and resulted in the establishment of goodwill in the amount of $8.8 million, representing the intangible value of Progressive’s business and reputation within the markets it served. None of the goodwill recognized is expected to be deductible for income tax purposes. The Company is amortizing the related core deposit intangible of $1.4 million using the effective yield method over 120 months (10 years), which represents the expected useful life of the asset. The Company also established two intangible assets related to the insurance agency acquired as part of the PFG acquisition; 1.) Customer relationships of $1.1 million, amortizing sum-of-the-years digits over 120 months (10 years), 2.) Tradename of $63 thousand, amortizing straight-line over 60 months (5 years).

The purchased assets and assumed liabilities were recorded at their acquisition date fair values ⁽¹⁾ and are summarized in the table below (in thousands).


			Initial
	As recorded		Fair value		Subsequent		As recorded
	by PFG		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	55,971	$	—	$	—	$	55,971
Investment securities available-for-sale		27,054		203		—		27,257
Restricted investments		692		—		—		692
Loans		191,672		(3,691)		—		187,981
Allowance for loan losses		(2,832)		2,832		—		—
Premises and equipment, net		15,681		(2,919)		—		12,762
Bank owned life insurance		5,560		—		—		5,560
Deferred tax asset, net		—		813		193		1,006
Intangibles		—		1,370		1,127		2,497
Other real estate owned		3,695		(100)		(1,862)		1,733
Interest Receivable		1,061		(280)		—		781
Prepaids		375		(174)		—		201
Goodwill		231		(231)		—		—
Other assets		1,881		—		—		1,881
Total assets acquired	$	301,041	$	(2,177)	$	(542)	$	298,322

Liabilities:
Deposits	$	271,276	$	—		—	$	271,276
Time deposit premium		—		729		—		729
Payables and other liabilities		776		—		—		776
Total liabilities assumed		272,052		729		—		272,781
Excess of assets acquired over liabilities assumed	$	28,989
Aggregate fair value adjustments			$	(2,906)	$	(542)
Total identifiable net assets								25,541
Consideration transferred:
Cash								9,838
Common stock issued (1,292,578 shares)								24,547
Total fair value of consideration transferred								34,385

Goodwill							$	8,844

⁽¹⁾Fair values are preliminary and are subject to refinement for a period of one year after the closing date of an acquisition as information relative to the closing date fair value becomes available.

The following table presents additional information related to the purchased credit impaired loans (ASC 310-30) of the acquired loan portfolio at the acquisition date (in thousands):


	March 1, 2020
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	21,107
Non-accretable differences		4,706
Cash flows expected to be collected		16,401
Accretable yield		2,515
Fair value	$	13,886

Earnings Per Share

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Earnings Per Share

Note 3. Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and dilutive common share equivalents using the treasury stock method. Dilutive common share equivalents include common shares issuable upon exercise of outstanding stock options and restricted stock. The effect from the stock options and restricted stock on

incremental shares from the assumed conversions for net income per share-basic and net income per share-diluted are presented below. There were no antidilutive shares for the three and six months ended June 30, 2021. There were 116 thousand and 85 thousand antidilutive shares for the three and six months ended June 30, 2020, respectively.

The following is a summary of the basic and diluted earnings per share computation (dollars in thousands, except per share data):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Basic earnings per share computation:
Net income available to common shareholders	$	8,778	$	6,174	$	18,534	$	8,907
Average common shares outstanding – basic		15,003,657		15,152,768		15,007,593		14,773,935
Basic earnings per share	$	0.59	$	0.41	$	1.24	$	0.60
Diluted earnings per share computation:
Net income available to common shareholders	$	8,778	$	6,174	$	18,534	$	8,907
Average common shares outstanding – basic		15,003,657		15,152,768		15,007,593		14,773,935
Incremental shares from assumed conversions:
Stock options and restricted stock		122,527		49,567		111,331		68,551
Average common shares outstanding - diluted		15,126,184		15,202,335		15,118,924		14,842,486
Diluted earnings per common share	$	0.58	$	0.41	$	1.23	$	0.60

Securities

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Securities

Note 4. Securities

The amortized cost, gross unrealized gains and losses and fair value of securities available-for-sale are summarized as follows (in thousands):


	June 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury	$	6,381	$	57	$	—	$	6,438
U.S. Government-sponsored enterprises (GSEs)		73,503		191		(1,074)		72,620
Municipal securities		86,720		2,188		—		88,908
Other debt securities		29,019		414		(82)		29,351
Mortgage-backed securities (GSEs)		52,430		1,201		(131)		53,500
Total	$	248,053	$	4,051	$	(1,287)	$	250,817


	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government-sponsored enterprises (GSEs)	$	30,526	$	10	$	(6)	$	30,530
Municipal securities		89,644		2,345		—		91,989
Other debt securities		25,019		112		(13)		25,118
Mortgage-backed securities (GSEs)		66,425		1,754		(182)		67,997
Total	$	211,614	$	4,221	$	(201)	$	215,634

At June 30, 2021 and December 31, 2020, securities with a carrying value totaling approximately $122.4 million and $80.2 million, respectively, were pledged to secure public funds and securities sold under agreements to repurchase.

The Company has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available for sale securities. See Note 11 – Derivatives Financial Instruments for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.

Proceeds from sale of securities available for sale, gross gains and gross losses on sales and redemptions for the three and six months ended June 30, 2021 and 2020 were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Proceeds from sales	$	-	$	4,760	$	-	$	6,875
Gross gains	$	-	$	16	$	-	$	16
Gross losses	$	-	$	-	$	-	$	-

Proceeds from maturities and calls	$	2,178	$	12,200	$	11,275	$	15,450

The amortized cost and estimated fair value of securities at June 30, 2021, by contractual maturity for non-mortgage backed securities are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	June 30, 2021
	Amortized		Fair
	Cost		Value
Due in one year or less	$	5,025	$	5,041
Due from one year to five years		4,039		4,058
Due from five years to ten years		66,493		67,152
Due after ten years		120,066		121,066
		195,623		197,317
Mortgage-backed securities		52,430		53,500
Total	$	248,053	$	250,817

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position (in thousands):


	June 30, 2021
	Less than 12 Months					12 Months or Greater					Total
			Gross		Number			Gross		Number			Gross		Number
	Fair		Unrealized		of	Fair		Unrealized		of	Fair		Unrealized		of
	Value		Losses		Securities	Value		Losses		Securities	Value		Losses		Securities
U.S. Government-sponsored enterprises (GSEs)	$	35,861	$	(1,071)	9	$	841	$	(3)	3	$	36,702	$	(1,074)	12
Municipal securities		—		—	—		—		—	—		—		—	—
Other debt securities		10,918		(82)	5		—		—	—		10,918		(82)	5
Mortgage-backed securities (GSEs)		36		—	1		9,862		(131)	6		9,898		(131)	7
Total	$	46,815	$	(1,153)	15	$	10,703	$	(134)	9	$	57,518	$	(1,287)	24


	December 31, 2020
	Less than 12 Months					12 Months or Greater					Total
			Gross		Number			Gross		Number			Gross		Number
	Fair		Unrealized		of	Fair		Unrealized		of	Fair		Unrealized		of
	Value		Losses		Securities	Value		Losses		Securities	Value		Losses		Securities
U.S. Government-sponsored enterprises (GSEs)	$	15,510	$	(5)	3	$	132	$	(1)	1	$	15,642	$	(6)	4
Municipal securities		—		—	—		—		—	—		—		—	—
Other debt securities		1,495		(5)	1		977		(8)	1		2,472		(13)	2
Mortgage-backed securities (GSEs)		9,790		(87)	6		6,083		(95)	3		15,873		(182)	9
Total	$	26,795	$	(97)	10	$	7,192	$	(104)	5	$	33,987	$	(201)	15

The Company reviews the securities portfolio on a quarterly basis to monitor its exposure to other-than-temporary impairment. A determination as to whether a security’s decline in fair value is other-than-temporary takes into consideration numerous factors and the relative significance of any single factor can vary by security. Some factors the Company may consider in the other-than-temporary impairment analysis include the length of time and extent to which the security has been in an unrealized loss position, changes in security ratings, financial condition and near-term prospects of the issuer, as well as security and industry specific economic conditions.

Based on this evaluation, the Company concluded that any unrealized losses at June 30, 2021, represented a temporary impairment, as these unrealized losses are primarily attributable to changes in interest rates and current market conditions, and not credit deterioration of the issuers. As of June 30, 2021, the Company does not intend to sell any of the securities, does not expect to be required to sell any of the securities, and expects to recover the entire amortized cost of all of the securities.

The following is the amortized cost and carrying value of other investments (in thousands):


	June 30,		December 31,
	2021		2020
Federal Reserve Bank stock	$	8,316	$	8,606
Federal Home Loan Bank stock		5,918		5,838
First National Bankers Bank stock		350		350
Total	$	14,584	$	14,794

Our restricted investments consist of non-marketable equity securities that have no readily determinable market value. Accordingly, when evaluating these securities for impairment, management considers the ultimate recoverability of the par value rather than recognizing temporary declines in value. As of June 30, 2021, the Company determined that there was no impairment on its other investments.

Loans and Leases and Allowance for Loan and Lease Losses

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Loans and Leases and Allowance for Loan and Lease Losses

Note 5. Loans and Leases and Allowance for Loan and Lease Losses

Portfolio Segmentation:

Major categories of loans and leases are summarized as follows (in thousands):


	June 30, 2021						December 31, 2020
	PCI		All Other				PCI		All Other
	Loans and Leases¹		Loans and Leases		Total		Loans and Leases¹		Loans and Leases		Total
Commercial real estate	$	11,371	$	1,151,120	$	1,162,491	$	16,123	$	996,853	$	1,012,976
Consumer real estate		8,975		435,665		444,640		10,258		433,672		443,930
Construction and land development		5,265		295,439		300,704		5,348		272,727		278,075
Commercial and industrial		261		495,853		496,114		308		634,138		634,446
Leases		4,214		48,824		53,038		—		—		—
Consumer and other		16		11,315		11,331		27		12,789		12,816
Total loans and leases		30,102		2,438,216		2,468,318		32,064		2,350,179		2,382,243
Less: Allowance for loan and lease losses		(371)		(17,939)		(18,310)		(309)		(18,037)		(18,346)
Loans and leases, net	$	29,731	$	2,420,277	$	2,450,008	$	31,755	$	2,332,142	$	2,363,897

¹Purchased Credit Impaired loans and leases (“PCI loans and leases”) are loans and leases with evidence of credit deterioration at purchase.

For purposes of the disclosures required pursuant to ASC 310, the loan and lease portfolio was disaggregated into segments. A portfolio segment is defined as the level at which an entity develops and documents a systematic method for determining its allowance for credit losses. There are six loan and lease portfolio segments that include commercial real estate, consumer real estate, construction and land development, commercial and industrial, leases, and consumer and other.

As previously mentioned in Note 1 – Presentation of Financial Information, the CARES Act established the PPP, administered directly by the SBA. The PPP provides loans of up to $10 million to small businesses who were affected by economic conditions as a result of COVID-19 to provide cash-flow assistance to employers who maintain their payroll (including healthcare and certain related expenses), mortgage interest, rent, leases, utilities and interest on existing debt during the COVID-19 emergency. PPP loans carry an interest rate of one percent, and a maturity of two or five years. These loans are fully guaranteed by the SBA and are not included in the Company’s loan and lease loss allowance calculations. The loans may be eligible for forgiveness by the SBA to the extent that the proceeds are used to cover eligible payroll costs, interest costs, rent, and utility costs over a period of up to 24 weeks after the loan is made as long as certain conditions are met regarding employee retention and compensation levels. PPP loans deemed eligible for forgiveness by the SBA will be repaid by the SBA to the Company. The SBA pays the Company fees for processing PPP loans and the fees are accounted for as loan origination fees and recognized over the contractual loan term as a yield adjustment on the loans. At June 30, 2021, the net deferred fees outstanding for the 2020 PPP loans is $131 thousand and $6.5 million for the 2021 PPP loans, respectively. At December 31, 2020, the net deferred fees outstanding for the 2020 PPP loans is $4.2 million. PPP loans are included in the Commercial and Industrial loan segments. As of June 30, 2021, the Company had 2,015 PPP loans outstanding, with an outstanding principal balance of $178.9 million and as of December 31, 2020, the Company had 2,863 PPP loans outstanding, with an outstanding principal balance of $288.9 million.

The composition of loans and leases by loan classification for performing, impaired and PCI loan and leases status is summarized in the tables below (in thousands):


					Construction		Commercial
	Commercial		Consumer		and Land		and				Consumer
	Real Estate		Real Estate		Development		Industrial		Leases		and Other		Total
June 30, 2021:
Performing loans and leases	$	1,150,261	$	433,218	$	295,439	$	495,645	$	48,824	$	11,315	$	2,434,702
Impaired loans and leases		859		2,447		—		208		—		—		3,514
		1,151,120		435,665		295,439		495,853		48,824		11,315		2,438,216
PCI loans and leases		11,371		8,975		5,265		261		4,214		16		30,102
Total loans and leases	$	1,162,491	$	444,640	$	300,704	$	496,114	$	53,038	$	11,331	$	2,468,318

December 31, 2020:
Performing loans and leases	$	992,982	$	432,356	$	272,727	$	633,992	$	—	$	12,789	$	2,344,846
Impaired loans and leases		3,871		1,316		—		146		—		—		5,333
		996,853		433,672		272,727		634,138		—		12,789		2,350,179
PCI loans and leases		16,123		10,258		5,348		308		—		27		32,064
Total loans and leases	$	1,012,976	$	443,930	$	278,075	$	634,446	$	—	$	12,816	$	2,382,243

The following tables show the allowance for loan and lease losses allocation by loan and lease classification for impaired, PCI, and performing (in thousands):


					Construction		Commercial				Consumer
	Commercial		Consumer		and Land		and				and
	Real Estate		Real Estate		Development		Industrial		Leases		Other		Total
June 30, 2021:
Performing loans and leases	$	7,965	$	3,096	$	2,061	$	4,021	$	—	$	100	$	17,243
Impaired loans and leases		417		71		—		208		—		—		696
		8,382		3,167		2,061		4,229		—		100		17,939
PCI loans and leases		—		156		—		213		—		2		371
Total loans and leases	$	8,382	$	3,323	$	2,061	$	4,442	$	—	$	102	$	18,310

December 31, 2020:
Performing loans and leases	$	7,579	$	3,267	$	2,076	$	4,768	$	—	$	110	$	17,800
Impaired loans and leases		—		116		—		121		—		—		237
		7,579		3,383		2,076		4,889		—		110		18,037
PCI loans and leases		—		88		—		218		—		3		309
Total loans and leases	$	7,579	$	3,471	$	2,076	$	5,107	$	—	$	113	$	18,346

The following tables detail the changes in the allowance for loan and lease losses by loan and lease classification (in thousands):


	Three Months Ended June 30, 2021
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	7,636	$	3,309	$	1,968	$	5,347	$	—	$	110	$	18,370
Charged-off loans and leases		—		(60)		—		(4)		—		(89)		(153)
Recoveries of charge-offs		3		5		—		7		—		83		98
Provision charged to expense		743		69		93		(908)		—		(2)		(5)
Ending balance	$	8,382	$	3,323	$	2,061	$	4,442	$	—	$	102	$	18,310


	Three Months Ended June 30, 2020
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	5,963	$	3,301	$	1,484	$	2,557	$	—	$	126	$	13,431
Charged-off loans and leases		—		—		—		(9)		—		(66)		(75)
Recoveries of charge-offs		3		11		—		6		—		28		48
Provision charged to expense		629		1		311		1,889		—		20		2,850
Ending balance	$	6,595	$	3,313	$	1,795	$	4,443	$	—	$	108	$	16,254


	Six Months Ended June 30, 2021
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	7,579	$	3,471	$	2,076	$	5,107	$	—	$	113	$	18,346
Charged-off loans and leases		—		(60)		—		(4)		—		(209)		(273)
Recoveries of charge-offs		6		21		—		10		—		138		175
Provision charged to expense		797		(109)		(15)		(671)		—		60		62
Ending balance	$	8,382	$	3,323	$	2,061	$	4,442	$	—	$	102	$	18,310


	Six Months Ended June 30, 2020
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	4,508	$	2,576	$	1,127	$	1,957	$	—	$	75	$	10,243
Charged-off loans and leases		—		(2)		—		(17)		—		(142)		(161)
Recoveries of charge-offs		5		17		2		49		—		50		123
Provision charged to expense		2,082		722		666		2,454		—		125		6,049
Ending balance	$	6,595	$	3,313	$	1,795	$	4,443	$	—	$	108	$	16,254

We maintain the allowance at a level that we deem appropriate to adequately cover the probable losses inherent in the loan and lease portfolio. Our provision for loan and lease losses for the three and six months ended June 30, 2021, is ($5) thousand and $62 thousand, respectively, and $2.9 million $6.0 million, during the three and six months ended June 30, 2020, respectively. As of June 30, 2021, and December 31, 2020, our allowance for loan and lease losses was $18.3 million, which we deemed to be adequate at each of the respective dates. Our allowance for loan and lease losses as a percentage of total loans and leases was 0.74% at June 30, 2021 and 0.77% at December 31, 2020.

The following tables outline the amount of each loan and lease classification and the amount categorized into each risk rating (in thousands):


	June 30, 2021
					Construction		Commercial
	Commercial		Consumer		and Land		and				Consumer
Non PCI Loans and Leases:	Real Estate		Real Estate		Development		Industrial		Leases		and Other		Total
Pass	$	1,109,079	$	431,122	$	295,119	$	490,144	$	48,824	$	11,241	$	2,385,529
Watch		37,077		1,637		243		5,087		—		49		44,093
Special mention		3,881		42		—		271		—		—		4,194
Substandard		1,083		2,864		77		306		—		25		4,355
Doubtful		—		—		—		45		—		—		45
Total		1,151,120		435,665		295,439		495,853		48,824		11,315		2,438,216

PCI Loans and Leases:
Pass		8,699		7,593		1,342		215		4,214		15		22,078
Watch		1,570		234		3,449		—		—		1		5,254
Special mention		17		57		—		—		—		—		74
Substandard		1,085		1,091		474		46		—		—		2,696
Doubtful		—		—		—		—		—		—		—
Total		11,371		8,975		5,265		261		4,214		16		30,102
Total loans and leases	$	1,162,491	$	444,640	$	300,704	$	496,114	$	53,038	$	11,331	$	2,468,318


	December 31, 2020
					Construction		Commercial
	Commercial		Consumer		and Land		and				Consumer
Non PCI Loans and Leases:	Real Estate		Real Estate		Development		Industrial		Leases		and Other		Total
Pass	$	922,153	$	417,302	$	269,350	$	625,836	$	—	$	12,622	$	2,247,263
Watch		66,287		14,218		3,296		7,673		—		137		91,611
Special mention		4,446		46		—		320		—		—		4,812
Substandard		3,967		2,020		81		261		—		30		6,359
Doubtful		—		86		—		48		—		—		134
Total		996,853		433,672		272,727		634,138		—		12,789		2,350,179

PCI Loans and Leases:
Pass		11,072		8,382		1,008		262		—		25		20,749
Watch		3,381		224		3,820		—		—		2		7,427
Special mention		19		57		—		—		—		—		76
Substandard		1,651		1,595		520		46		—		—		3,812
Doubtful		—		—		—		—		—		—		—
Total		16,123		10,258		5,348		308		—		27		32,064
Total loans and leases	$	1,012,976	$	443,930	$	278,075	$	634,446	$	—	$	12,816	$	2,382,243

Past Due Loans and Leases:

A loan or lease is considered past due if any required principal and interest payments have not been received as of the date such payments were required to be made under the terms of the loan or lease agreement. Generally, management places a loan or lease on nonaccrual when there is a clear indicator that the borrower’s cash flow may not be sufficient to meet payments as they become due, which is generally when a loan or lease is 90 days past due.

The following tables present an aging analysis of our loan and lease portfolio (in thousands):


	June 30, 2021
	30-60 Days		61-89 Days		Past Due 90				Total
	Past Due and		Past Due and		Days or More				Past Due and
	Accruing		Accruing		and Accruing		Nonaccrual		Nonaccrual		PCI		Current		Total
Commercial real estate	$	—	$	—	$	—	$	859	$	859	$	11,371	$	1,150,261	$	1,162,491
Consumer real estate		258		13		—		2,676		2,947		8,975		432,718		444,640
Construction and land development		95		—		—		—		95		5,265		295,344		300,704
Commercial and industrial		1,346		296		64		138		1,844		261		494,009		496,114
Leases		45		40		—		—		85		4,214		48,739		53,038
Consumer and other		151		2		—		21		174		16		11,141		11,331
Total	$	1,895	$	351	$	64	$	3,694	$	6,004	$	30,102	$	2,432,212	$	2,468,318


	December 31, 2020
	30-60 Days		61-89 Days		Past Due 90				Total
	Past Due and		Past Due and		Days or More				Past Due and
	Accruing		Accruing		and Accruing		Nonaccrual		Nonaccrual		PCI		Current		Total
Commercial real estate	$	134	$	—	$	67	$	3,740	$	3,941	$	16,123	$	992,912	$	1,012,976
Consumer real estate		1,916		51		82		1,823		3,872		10,258		429,800		443,930
Construction and land development		245		—		—		12		257		5,348		272,470		278,075
Commercial and industrial		12		76		—		36		124		308		634,014		634,446
Leases		—		—		—		—		—		—		—		—
Consumer and other		14		5		—		22		41		27		12,748		12,816
Total	$	2,321	$	132	$	149	$	5,633	$	8,235	$	32,064	$	2,341,944	$	2,382,243

Impaired Loans and Leases:

The following is an analysis of the impaired loan and lease portfolio, including PCI loans and leases, detailing the related allowance recorded (in thousands):


	June 30, 2021						December 31, 2020
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans and leases without a valuation allowance:
Commercial real estate	$	—	$	—	$	—	$	3,871	$	3,872	$	—
Consumer real estate		2,186		2,187		—		888		888		—
Construction and land development		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—
Leases		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—
		2,186		2,187		—		4,759		4,760		—
Impaired loans and leases with a valuation allowance:
Commercial real estate		859		859		417		—		—		—
Consumer real estate		261		264		71		428		428		116
Construction and land development		—		—		—		—		—		—
Commercial and industrial		208		208		208		146		146		121
Leases		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—
		1,328		1,331		696		574		574		237
PCI loans and leases:
Commercial real estate		—		—		—		—		—		—
Consumer real estate		1,201		1,332		156		1,827		2,086		88
Construction and land development		—		—		—		—		—		—
Commercial and industrial		261		231		213		270		234		218
Leases		—		—		—		—		—		—
Consumer and other		14		12		2		21		20		3
		1,476		1,575		371		2,118		2,340		309
Total impaired loans and leases	$	4,990	$	5,093	$	1,067	$	7,451	$	7,674	$	546


	Three Months Ended June 30,
	2021				2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans and leases without a valuation allowance:
Commercial real estate	$	65	$	—	$	345	$	1
Consumer real estate		2,033		8		633		10
Construction and land development		—		—		304		—
Commercial and industrial		—		—		—		—
Leases		—		—		—		—
Consumer and other		—		—		—		—
		2,098		8		1,282		11
Impaired loans and leases with a valuation allowance:
Commercial real estate		2,007		2		396		—
Consumer real estate		360		3		827		5
Construction and land development		—		—		—		—
Commercial and industrial		159		3		158		3
Leases		—		—		—		—
Consumer and other		—		—		—		—
		2,526		8		1,381		8
PCI loans and leases:
Commercial real estate		—		—		490		—
Consumer real estate		1,115		21		1,168		38
Construction and land development		—		—		116		—
Commercial and industrial		263		1		338		3
Leases		—		—		—		—
Consumer and other		16		—		22		—
		1,394		22		2,134		41
Total impaired loans and leases	$	6,018	$	38	$	4,797	$	60



	Six Months Ended June 30,
	2021				2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans and leases without a valuation allowance:
Commercial real estate	$	1,334	$	1	$	315	$	4
Consumer real estate		1,651		20		606		14
Construction and land development		—		—		385		—
Commercial and industrial		—		—		—		—
Leases		—		—		—		—
Consumer and other		—		—		—		—
		2,985		21		1,306		18
Impaired loans and leases with a valuation allowance:
Commercial real estate		1,338		104		264		2
Consumer real estate		383		8		882		14
Construction and land development		—		—		—		—
Commercial and industrial		154		5		158		5
Leases		—		—		—		—
Consumer and other		—		—		—		—
		1,875		117		1,304		21
PCI loans and leases:
Commercial real estate		—		—		333		1
Consumer real estate		1,165		43		1,174		39
Construction and land development		—		—		77		—
Commercial and industrial		266		2		361		3
Leases		—		—		—		—
Consumer and other		18		—		31		—
		1,449		45		1,976		43
Total impaired loans and leases	$	6,309	$	183	$	4,586	$	82

Troubled Debt Restructurings:

For the periods presented, impaired loans included loans that were classified as TDRs. The restructuring of a loan is considered a TDR if both (i) the borrower is experiencing financial difficulties and (ii) the creditor has granted a concession.

In assessing whether or not a borrower is experiencing financial difficulties, the Company considers information currently available regarding the financial condition of the borrower. This information includes, but is not limited to, whether (i) the debtor is currently in payment default on any of its debt; (ii) a payment default is probable in the foreseeable future without the modification; (iii) the debtor has declared or is in the process of declaring bankruptcy; and (iv) the debtor’s projected cash flow is sufficient to satisfy contractual payments due under the original terms of the loan without a modification.

The Company considers all aspects of the modification to loan terms to determine whether or not a concession has been granted to the borrower. Key factors considered by the Company include the debtor’s ability to access funds at a market rate for debt with similar risk characteristics, the significance of the modification relative to unpaid principal balance or collateral value of the debt, and the significance of a delay in the timing of payments relative to the original contractual terms of the loan.

The most common concessions granted by the Company generally include one or more modifications to the terms of the debt, such as (i) a reduction in the interest rate for the remaining life of the debt; (ii) an extension of the maturity date at an interest rate lower than the current market rate for new debt with similar risk; (iii) a temporary period of interest-only payments; and (iv) a reduction in the contractual payment amount for either a short period or remaining term of the loan.

As of June 30, 2021 and December 31, 2020, management had approximately $219 thousand and $257 thousand, respectively, in loans that met the criteria for TDR, none of which were on nonaccrual. A loan is placed back on accrual status when both principal and interest are current, and it is probable that the Company will be able to collect all amounts due (both principal and interest) according to the terms of the loan agreement.

There were no loans that were modified as a TDR during the six months ended June 30, 2021, and one loan that was modified during the six months ended June 30, 2020. There were no loans that were modified as TDRs during the past six months and for which there was a subsequent payment default.

The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The Coronavirus Aid Relief and Economic Security (“CARES”) Act along with a joint agency statement issued by banking agencies, provides that short-term modifications made in response to COVID-19 does not need to be accounted for as a TDR. Accordingly, the Company does not account for such loan modifications as TDRs. See Note 1 Presentation of Financial Information for more information. At June 30, 2021, the Company had no loans remaining under COVID-19 modifications.

Foreclosure Proceedings and Balances:

As of June 30, 2021, there was one residential property secured by real estate included in other real estate owned and there were two residential real estate loans totaling $103 thousand in the process of foreclosure.

Purchased Credit Impaired Loans and Leases:

The Company has acquired loans and leases where there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans and leases are as follows (in thousands):


	June 30,		December 31,
	2021		2020
Commercial real estate	$	18,456	$	23,787
Consumer real estate		11,342		12,692
Construction and land development		858		1,812
Commercial and industrial		6,313		6,521
Leases		4,603		—
Consumer and other		94		161
Total loans and leases		41,666		44,973
Less: Remaining purchase discount		(11,564)		(12,909)
Total loans and leases, net of purchase discount		30,102		32,064
Less: Allowance for loan and leases losses		(371)		(309)
Carrying amount, net of allowance	$	29,731	$	31,755

Activity related to the accretable yield on loans and leases acquired with deteriorated credit quality is as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Accretable yield, beginning of period	$	14,705	$	10,979	$	16,889	$	8,454
Additions		649		—		649		2,515
Accretion income		(1,098)		(1,057)		(3,029)		(3,134)
Reclassification		1,340		247		1,677		2,163
Other changes, net		(1,074)		1,608		(1,664)		1,779
Accretable yield, end of period	$	14,522	$	11,777	$	14,522	$	11,777

Goodwill and Intangible Assets

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Intangible Assets

Note 6. Goodwill and Intangible Assets

In accordance with FASB ASC 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. The Company performs its annual goodwill impairment test as of December 31 of each year. Considering the recent economic conditions resulting from the COVID-19 pandemic the Company performed a Step 1 goodwill impairment test (which compares the fair value of a reporting unit with its carrying amount, including goodwill) at December 31, 2020, the results indicated that there was no impairment. Management will continue to evaluate the economic conditions at future reporting periods for applicable changes.

The Company’s other intangible assets consist of core deposit, customer relationships and tradename. They are initially recognized based on a valuation performed as of the consummation date. The core deposit intangible is amortized over the average remaining life of the acquired customer deposits, the customer relationships are amortized over a weighted average of 8.6 years and the tradename is amortized over five years.

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands):


	June 30,		December 31,
	2021		2020
Goodwill:
Balance, beginning of period	$	74,135	$	65,614
Acquisition of PFG		323		8,521
Acquisition of Fountain		2,400		—
Balance, end of the period	$	76,858	$	74,135


	Core Deposit		Customer Relationships		Tradename
Amortized other intangible assets:	Intangibles		Intangibles		Intangibles		Total
Beginning balance January 1, 2021, gross	$	15,920	$	1,064	$	63	$	17,047
Acquisition of Fountain		-		2,658		-		2,658
Balance, June 30, 2021, other intangible assets, gross		15,920		3,722		63		19,705
Less: accumulated amortization		(5,330)		(250)		(17)		(5,597)
Balance, June 30, 2021, other intangible assets, net	$	10,590	$	3,472	$	46	$	14,108

Beginning balance January 1, 2020, gross	$	14,550	$	-	$	-	$	14,550
Acquisition of PFG		1,370		1,064		63		2,497
Balance, December 31, 2020, other intangible assets, gross		15,920		1,064		63		17,047
Less: accumulated amortization		(4,540)		(161)		(10)		(4,711)
Balance, December 31, 2020, other intangible assets, net	$	11,380	$	903	$	53	$	12,336

The aggregate amortization expense for other intangible assets for the three and six months ended June 30, 2021 was $441 thousand and $886 thousand, respectively, and for the three and six months ended June 30, 2020, was $405 thousand and $767 thousand, respectively.

The estimated aggregate amortization expense for future periods for core deposit intangibles is as follows (in thousands):


Remainder of 2021	$	1,270
2022		2,238
2023		2,103
2024		1,981
2025		1,850
Thereafter		4,666
Total	$	14,108

Borrowings, Line of Credit and Subordinated Debt

6 Months Ended

Jun. 30, 2021

Borrowings, Line of Credit and Subordinated Debt [Abstract]

Borrowings, Line of Credit and Subordinated Debt

Note 7. Borrowings, Line of Credit and Subordinated Debt

Borrowings:

At June 30, 2021, total borrowings were $78.8 million compared to $81.2 million at December 31, 2020. Borrowings consist of the following (dollars in thousands):


	June 30,		December 31,
	2021		2020
Securities sold under customer repurchase agreements	$	3,834	$	5,803
FHLB borrowings		75,000		75,000
Other borrowings		—		396
Total	$	78,834	$	81,199

Securities Sold Under Agreements to Repurchase:

The Company had securities sold under agreements to repurchase with commercial checking customers which were secured by government agency securities. The carrying value of investment securities pledged as collateral under repurchase agreements was $5.6 million and $7.6 million at June 30, 2021 and December 31, 2020, respectively.

Line of Credit:

The Company has a Loan and Security Agreement and revolving note with ServisFirst Bank, pursuant to which ServisFirst Bank has made a $25.0 million revolving line of credit available to the Company. The maturity of the line of credit is September 24, 2021. At June 30, 2021, there was no outstanding balance under the line of credit, and the entire amount of the line of credit remained available to the Company.

Subordinated Debit:

On September 28, 2018, the Company issued $40 million of 5.625% fixed-to-floating rate subordinated notes (the "Notes"), which was outstanding as of June 30, 2021 and December 31, 2020. Unamortized debt issuance cost was $612 thousand and $654 thousand at June 30, 2021 and December 31, 2020, respectively.

The Notes initially bears interest at a rate of 5.625% per annum from and including September 28, 2018, to but excluding October 2, 2023, with interest during this period payable semi-annually in arrears. From and including October 2, 2023, to but excluding the maturity date or early redemption date, the interest rate will reset quarterly to an annual floating rate equal to three-month LIBOR, or an alternative rate determined in accordance with the terms of the Notes if three-month LIBOR cannot be determined, plus 255 basis points, with interest during this period payable quarterly in arrears. The Notes are redeemable by the Company, in whole or in part, on or after October 2, 2023, and at any time, in whole but not in part, upon the occurrence of certain events. The Notes have been structured to qualify initially as Tier 2 capital for the Company for regulatory capital purposes.

The Notes debt issuance costs totaled $842 thousand and will be amortized through the Notes’ maturity date. Amortization expense totaled $21 thousand and $42 thousand for the three and six months ended June 30, 2021 and June 30, 2020, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

Employee Benefit Plans

6 Months Ended

Jun. 30, 2021

Defined Benefit Plan [Abstract]

Employee Benefit Plans

Note 8. Employee Benefit Plans

401(k) Plan:

The Company provides a deferred salary reduction plan (“Plan”) under Section 401(k) of the Internal Revenue Code covering substantially all employees. After 90 days of service the Company matches 100% of employee contributions up to 3% of compensation and 50% of employee contributions on the next 2% of compensation. The Company’s contribution to the Plan for the three and six months ending June 30, 2021, was $350 thousand and $638 thousand, respectively. The Company’s contribution to the Plan for the three and six months ending June 30, 2020, was $307 thousand and $558 thousand, respectively.

Equity Incentive Plans:

The Compensation Committee of the Company’s Board of Directors may grant or award eligible participants stock options, restricted stock, restricted stock units, stock appreciation rights, and other stock-based awards or any combination of awards (collectively referred to herein as "Rights"). At June 30, 2021, the Company had one active equity incentive plan available for future grants, the 2015 Stock Incentive Plan, which had 18,811 rights issued and 1,832,427 Rights available for future grants or awards.

In addition, the Company has 19,250 Rights issued from the Cornerstone Bancshares, Inc. 2002 Long Term Incentive Plan, 40,250 Rights issued from the Cornerstone Non-Qualified Plan Options, and 2,266 Rights issued from the Capstone Stock Option Plan. These plans do not have any Rights available for future grants or awards.

Stock Options:

A summary of the status of stock option plans is presented in the following table:


		Weighted
		Average
		Exercisable
	Number	Price
Outstanding at December 31, 2020	99,617	$	10.19
Granted	—		—
Exercised	(19,040)		10.18
Forfeited	—		—
Outstanding at June 30, 2021	80,577	$	10.19

The Company did not recognize any stock option-based compensation expense during the three and six months ended June 30, 2021 and 2020, respectively, as all stock options issued are fully vested.

Information pertaining to stock options outstanding at June 30, 2021, is as follows:


		Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-			Weighted-
			Remaining	Average			Average
Exercise		Number	Contractual	Exercise		Number	Exercise
Prices		Outstanding	Life	Price		Exercisable	Price
$	6.60	19,250	0.70 years	$	6.60	19,250	$	6.60
	9.48	18,000	1.70 years		9.48	18,000		9.48
	9.60	22,250	2.50 years		9.60	22,250		9.60
	11.76	2,266	1.00 years		11.76	2,266		11.76
	15.05	18,811	4.00 years		15.05	18,811		15.05
Outstanding, end of period		80,577	2.20 years	$	10.19	80,577	$	10.19

The intrinsic value of options exercised during the three and six months ended June 30, 2021 was $27 thousand and $220 thousand, and $2 thousand and $66 thousand, during the three and six months ended June 30, 2020, respectively. The aggregate intrinsic value of total options outstanding and exercisable options at June 30, 2021, was $1.1 million. Cash received from options exercised under all share-based payment arrangements for the six months ended June 30, 2021 was $194 thousand.

No options vested during the six months ended June 30, 2021 and 2020, respectively. The income tax expense/benefit recognized for the exercise of options during the three and six months ended June 30, 2021, was a benefit of $8 thousand and $9 thousand, respectively, and for the three and six months ended June 30, 2020, was an expense of $2 thousand and a benefit of $22 thousand, respectively.

As of June 30, 2021, all options were fully vested and currently no future compensation cost will be recognized related to nonvested stock-based compensation arrangements granted under the Plans.

Restricted Stock Awards:

A summary of the activity of the Company’s unvested restricted stock awards for the period ended June 30, 2021 is presented below:


		Weighted
		Average
		Grant-Date
	Number	Fair Value
Balance at December 31, 2020	100,218	$	19.07
Granted	50,967		20.23
Vested	(5,985)		22.29
Forfeited/expired	—		—
Balance at June 30, 2021	145,200	$	19.34

The Company measures the fair value of restricted stock awards based on the price of the Company’s common stock on the grant date, and compensation expense is recorded over the vesting period. The compensation expense for restricted stock awards during the three and six months ended June 30, 2021, was $162 thousand and $363 thousand, respectively, and was $113 thousand and $223 thousand, during the three and six months ended June 30, 2020, respectively. As of June 30, 2021, there was $1.7 million, respectively, of unrecognized compensation cost related to non-vested restricted stock awards granted under the plan. The cost is expected to be recognized over a weighted average period of 2.99 years. The grant-date fair value of restricted stock awards vested was $133 thousand for the six months ended June 30, 2021.

Stock Appreciation Rights ("SARs"):

A summary of the status of SARs plans is presented in the following table:


		Weighted
		Average
	Number	Exercisable Price
Outstanding at December 31, 2020	73,000	$	19.02
Granted	22,000		20.70
Exercised	(11,500)		21.61
Forfeited	(6,000)		18.00
Outstanding at June 30, 2021	77,500	$	19.19

Information pertaining to SARs outstanding at June 30, 2021, is as follows:


		SARs Outstanding				SARs Exercisable
			Weighted-
			Average	Weighted-
			Remaining	Average			Weighted- Average
Exercise		Number	Contractual	Exercise		Number	Exercise
Prices		Outstanding	Life		Price	Exercisable	Price
$	15.19	16,000	2.50 years	$	15.19	—	$	—
	18.12	19,000	1.50 years		18.12	—		—
	20.70	20,000	3.51 years		20.70	—		—
	21.61	22,500	0.50 years		21.61	22,500		21.61
	Outstanding, end of period	77,500	1.94 years	$	19.19	22,500	$	21.61

SARs compensation expense of $64 thousand and $113 thousand was recognized for the three and six months ended June 30, 2021, respectively, and $92 thousand and ($26) thousand for the three and six months ended June 30, 2020. The credit in expense for the six months ended June 30, 2020, was due to adjustments related to the fair value evaluation of SARs.

Commitments and Contingencies

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Note 9. Commitments and Contingent Liabilities

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing and depository needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such commitments involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amount recognized on the balance sheet. The majority of all commitments to extend credit are variable rate instruments while the standby letters of credit are primarily fixed rate instruments. The Company’s exposure to credit loss is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments as it does for on-balance sheet instruments.

A summary of the Company’s total contractual amount for all off-balance sheet commitments are as follows (in thousands):


	June 30,		December 31,
	2021		2020
Commitments to extend credit	$	640,269	$	476,841
Standby letters of credit		7,540		5,261

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the customer. Collateral held varies, but may include accounts receivable, inventory, property and equipment, residential real estate, and income-producing commercial properties.

Standby letters of credit issued by the Company are conditional commitments to guarantee the performance of a customer to a third party. Those letters of credit are primarily issued to support public and private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loans to customers. Collateral held varies and is required in instances which the Company deems necessary. At June 30, 2021 and December 31, 2020, the carrying amount of liabilities related to the Company’s obligation to perform under standby letters of credit was insignificant.

The Company is subject in the normal course of business to various pending and threatened legal proceedings in which claims for monetary damages are asserted. Management, after consultation with legal counsel, does not anticipate that the aggregate ultimate liability arising out of litigation pending or threatened against the Company will be material to the Company’s consolidated financial position. On an on-going basis, the Company assesses any potential liabilities or contingencies in connection with such legal proceedings. For those matters where it is deemed probable that the Company will incur losses and the amount of the losses can be reasonably estimated, the Company would record an expense and corresponding liability in its consolidated financial statements.

Fair Value Disclosures

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Fair Value Disclosures

Note 10. Fair Value Disclosures

Determination of Fair Value:

The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. In accordance with the “Fair Value Measurements and Disclosures” ASC Topic 820, the fair value of a financial instrument is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Fair value is best determined based upon quoted market prices. In cases where quoted market prices are not available, fair values are based on estimates using present value or other valuation techniques. Those techniques are significantly affected by the assumptions used, including the discount rate and estimates of future cash flows. Accordingly, the fair value estimates may not be realized in an immediate settlement of the instrument.

ASC Topic 820 provides a consistent definition of fair value, which focuses on exit price in an orderly transaction between market participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact business at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions.

Fair Value Hierarchy:

In accordance with this guidance, the Company groups its financial assets and financial liabilities generally measured at fair value in three levels, based on the markets in which the assets and liabilities are traded and the reliability of the assumptions used to determine fair value.

Level 1 - Valuation is based on quoted prices in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date. Level 1 assets and liabilities generally include debt and equity securities that are traded in an active exchange market. Valuations are obtained from readily available pricing sources for market transactions involving identical assets or liabilities.

Level 2 - Valuation is based on inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectly. The valuation may be based on quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability.

Level 3 - Valuation is based on unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which determination of fair value requires significant management judgment or estimation.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Recurring Measurements of Fair Value:

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):


			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2021:
Assets:
Securities available-for-sale:
U.S. Treasury		6,438		—		6,438		—
U.S. Government-sponsored enterprises (GSEs)	$	72,620	$	—	$	72,620	$	—
Municipal securities		88,908		—		88,908		—
Other debt securities		29,351		—		29,351		—
Mortgage-backed securities (GSEs)		53,500		—		53,500		—
Total securities available-for-sale	$	250,817	$	—	$	250,817	$	—

Liabilities:
Derivative financial instruments	$	4,468	$	—	$	4,468	$	—

December 31, 2020:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	30,530	$	—	$	30,530	$	—
Municipal securities		91,989		—		91,989		—
Other debt securities		25,118		—		25,118		—
Mortgage-backed securities (GSEs)		67,997		—		67,997		—
Total securities available-for-sale	$	215,634	$	—	$	215,634	$	—

Liabilities:
Derivative financial instruments	$	6,174		—	$	6,174		—

During the six months ending June 30, 2021, there were no transfers between Level 1 and Level 2 in the fair value hierarchy.

Securities available-for-sale - The fair value of U.S. Treasury, U.S. Government-sponsored enterprises, municipal securities, other debt securities and mortgage-backed securities, is estimated using a third party pricing service. The third party provider evaluates securities based on comparable investments with trades and market data and will utilize pricing models that use a variety of inputs, such as benchmark yields, reported trades, broker-dealer quotes, issuer spreads, benchmark securities, bids and offers as needed. These securities are generally classified as Level 2.

Derivative financial instruments - The fair value for derivative financial instruments is determined based on market prices, broker-dealer quotations on similar products, or other related input parameters. The derivative financial instruments are generally classified Level 2.

Assets Measured at Fair Value on a Nonrecurring Basis:

Under certain circumstances management makes adjustments to fair value for assets and liabilities although they are not measured at fair value on an ongoing basis. The following tables present the financial instruments carried on the consolidated balance sheets by caption and by level in the fair value hierarchy, for which a nonrecurring change in fair value has been recorded (in thousands):


			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2021:
Impaired loans	$	1,737	$	—	$	—	$	1,737
Other real estate owned		2,499		—		—		2,499

December 31, 2020:
Impaired loans	$	2,455	$	—	$	—	$	2,455
Other real estate owned		4,619		—		—		4,619

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands):


					Weighted
			Valuation	Significant Other	Average of
	Fair Value		Technique	Unobservable Input	Input
June 30, 2021:
Impaired loans	$	1,737	Appraisal	Appraisal discounts	38	%
Other real estate owned		2,499	Appraisal	Appraisal discounts	25	%

December 31, 2020:
Impaired loans	$	2,455	Appraisal	Appraisal discounts	9	%
Other real estate owned		4,619	Appraisal	Appraisal discounts	22	%

Impaired loans: Loans considered impaired under ASC 310-10-35, Receivables, are loans for which, based on current information and events, it is probable that the Company will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan agreement. An impaired loan can be measured based on the present value of expected payments using the loan’s original effective rate as the discount rate, the loan’s observable market price, or the fair value of the collateral less selling costs if the loan is collateral dependent. The fair value of impaired loans was measured based on the value of the collateral securing these loans. Impaired loans are classified within Level 3 of the fair value hierarchy. Collateral may be real estate and/or business assets including equipment, inventory, and/or accounts receivable. The Company determines the value of the collateral based on independent appraisals performed by qualified licensed appraisers. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Appraised values are discounted for costs to sell and may be discounted further based on management’s historical knowledge, changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts by management are subjective and are typically significant unobservable inputs for determining fair value. Impaired loans are reviewed and evaluated on at least a quarterly basis for additional impairment and adjusted accordingly, based on the same factors discussed above.

Other real estate owned: Other real estate owned, consisting of properties obtained through foreclosure or in satisfaction of loans, are initially recorded at fair value less estimated costs to sell upon transfer of the loans to other real estate.

Subsequently, other real estate is carried at the lower of carrying value or fair value less costs to sell. Fair values are generally based on third party appraisals of the property and are classified within Level 3 of the fair value hierarchy. The appraisals are sometimes further discounted based on management’s historical knowledge, and/or changes in market conditions from the date of the most recent appraisal, and/or management’s expertise and knowledge of the customer and the customer’s business. Such discounts are typically significant unobservable inputs for determining fair value. In cases where the carrying amount exceeds the fair value, less estimated costs to sell, a loss is recognized in noninterest expense.

Carrying value and estimated fair value:

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):


	Fair Value Measurements Using
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
June 30, 2021:
Assets:
Cash and cash equivalents	$	673,515	$	673,515	$	—	$	—	$	673,515
Securities available-for-sale		250,817		—		250,817		—		250,817
Other investments		14,584		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		2,454,342		—		—		2,455,130		2,455,130

Liabilities:
Noninterest-bearing demand deposits		807,560		—		807,560		—		807,560
Interest-bearing demand deposits		702,470		—		702,470		—		702,470
Money market and savings deposits		1,140,029		—		1,140,029		—		1,140,029
Time deposits		489,413		—		492,243		—		492,243
Borrowings		78,834		—		79,847		—		79,847
Subordinated debt		39,388		—		—		41,302		41,302
Derivative financial instruments		4,468		—		4,468		—		4,468

December 31, 2020:
Assets:
Cash and cash equivalents	$	481,719	$	481,719	$	—	$	—	$	481,719
Securities available-for-sale		215,634		—		215,634		—		215,634
Other investments		14,794		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		2,375,618		—		—		2,377,581		2,377,581

Liabilities:
Noninterest-bearing demand deposits		685,957		—		685,957		—		685,957
Interest-bearing demand deposits		649,129		—		649,129		—		649,129
Money market and savings deposits		919,631		—		919,631		—		919,631
Time deposits		550,498		—		554,120		—		554,120
Borrowings		81,199		—		82,892		—		82,892
Subordinated debt		39,346		—		—		40,550		40,550
Derivative financial instruments		6,174		—		6,174		—		6,174

Limitations:

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. These estimates do not reflect any premium or discount that could result from offering for sale at one time the Company’s entire holdings of a particular financial instrument. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing on and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments.

Significant assets and liabilities that are not considered financial instruments include deferred income taxes and premises and equipment. In addition, the tax ramifications related to the realization of unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in the estimates.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Derivatives Financial Instruments

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivatives Financial Instruments

Note 11.Derivatives Financial Instruments

Derivatives designated as fair value hedges:

Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivative instruments that are designated and qualify as a fair value hedge, the gain or loss on the derivative net investment hedge instrument as well as the offsetting gain or loss on the hedged asset or liability attributable to the hedged risk are recognized in current earnings. The gain or loss on the derivative instrument is presented on the same income statement line item as the earnings effect of the hedged item. The Company utilizes interest rate swaps designated as fair value hedges to mitigate the effect of changing interest rates on the fair values of fixed rate tax-exempt callable securities available-for-sale. The hedging strategy on securities converts the fixed interest rates to LIBOR-based variable interest rates. These derivatives are designated as partial term hedges of selected cash flows covering specified periods of time prior to the call dates of the hedged securities. The Company has elected early adoption of ASU 2017-12, Derivatives and Hedging (Topic 815) - Targeted Improvements to Accounting for Hedging Activities, which allows such partial term hedge designations.

A summary of the Company’s fair value hedge relationships for the periods presented are as follows (dollars in thousands):

Weighted

Average

Balance

Remaining

Weighted

Sheet

Maturity

Average

Receive

Notional

Estimated

Liability derivatives

Location

(In Years)

Pay Rate

Rate

Amount

Fair Value

June 30, 2021:

Interest rate swap agreements - securities

Other liabilities

5.96

3.09

%

3 month LIBOR

$

36,000

$

(4,468)

December 31, 2020:

Interest rate swap agreements - securities

Other liabilities

7.13

3.08

%

3 month LIBOR

$

36,000

$

(6,174)

The effects of the Company’s fair value hedge relationships reported in interest income on tax-exempt available-for-sale securities on the consolidated income statement were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Interest income on tax-exempt securities	$	562	$	580	$	1,126	$	1,020
Effects of fair value hedge relationships		(258)		(164)		(563)		(321)
Reported interest income on tax-exempt securities	$	304	$	416	$	563	$	699


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Gain (loss) on fair value hedging relationship	2021		2020		2021		2020
Interest rate swap agreements - securities:
Hedged items	$	(459)	$	(205)	$	1,706	$	(3,644)
Derivative designated as hedging instruments	$	459	$	205	$	(1,706)	$	3,644

The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges (in thousands):


			Cumulative Amount of Fair
			Value Hedging Adjustment
	Carrying Amount		Included in Other Comprehensive
Line item on the balance sheet	of the Hedged Assets		Income
June 30, 2021:
Securities available-for-sale	$	43,580	$	1,072
December 31, 2020:
Securities available-for-sale	$	44,017	$	(1,063)

Non-hedged derivatives:

During the second quarter of 2021, the Company initiated a loan hedging program to certain loan customers. Through this program, the Company originates a variable rate loan with the customer. The Company and the customer will then enter into a fixed interest rate swap. Lastly, an identical offsetting swap is entered into by the Company with a dealer bank. These “back-to-back” swap arrangements are intended to offset each other and allow the Company to book a variable rate loan, while providing the customer with a contract for fixed interest payments. In these arrangements, the Company’s net cash flow is equal to the interest income received from the variable rate loan originated with the customer. These customer swaps are not designated as hedging instruments and are recorded at fair value in other assets and other liabilities. Since the income statement impact of the offsetting positions is limited, any changes in fair value is recognized as other noninterest income in the current period.

At June 30, 2021 and December 31, 2020, interest rate swaps related to the Company’s loan hedging program that were outstanding are presented in the following table (in thousands):


	June 30, 2021				December 31, 2020
		Notional		Estimated		Notional		Estimated
		Amount		Fair Value		Amount		Fair Value
Interest rate swap agreements:
Assets	$	750	$	12	$	-	$	-
Liabilities		750		(12)		-		-
Total	$	1,500	$	-	$	-	$	-

The Company establishes limits and monitors exposures for customer swap positions. Any fees received to enter the swap agreements at inception are recognized in earnings when received. Such fees were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Interest rate swap agreements	$	10	$	—	$	10	$	—

Leases

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Leases

Note 12. Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On January 1, 2019, the Company adopted ASU No. 2016-02 and all subsequent ASUs that modified this topic (collectively referred to as "Topic 842"). For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee.

Substantially all of the leases in which the Company is the lessee are comprised of real estate for branches and office space with terms extending through 2034. All of our leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated balance sheet. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated balance sheet as a right-of-use (“ROU”) asset and a corresponding lease liability.

The following table represents the consolidated balance sheet classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet (in thousands):


		June 30,		December 31,
	Classification	2021		2020
Assets:
Operating lease right-of-use assets	Other assets	$	4,536	$	4,797
Liabilities:
Operating lease liabilities	Other liabilities	$	4,578	$	4,827

The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to January 1, 2019, the rate for the remaining lease term as of January 1, 2019, was used.

As of June 30, 2021, the weighted average remaining lease term was 11.04 years and the weighted average discount rate was 2.69%.

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance (in thousands).


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Lease costs:
Operating lease costs	$	254	$	270	$	494	$	507
Variable lease costs		24		29		48		55
Total	$	278	$	299	$	542	$	562
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	250	$	265	$	483	$	495

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021, were as follows (in thousands):


	Amounts
June 30, 2022	$	414
June 30, 2023		689
June 30, 2024		496
June 30, 2025		368
June 30, 2026		348
Thereafter		3,033
Total future minimum lease payments		5,348
Amounts representing interest		(770)
Present value of net future minimum lease payments	$	4,578

Regulatory Matters

6 Months Ended

Jun. 30, 2021

Banking and Thrift [Abstract]

Regulatory Matters

Note 13. Regulatory Matters

Regulatory Capital Requirements:

The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective January 1, 2015. In order to avoid restrictions on capital distributions and discretionary bonus payments to executives, under the new rules a covered banking organization is also required to maintain a “capital conservation buffer” in addition to its minimum risk-based capital requirements. This buffer is required to consist solely of common equity Tier 1, and the buffer applies to all three risk-based measurements (CET1, Tier 1 capital and total capital). As of January 1, 2019, an additional amount of Tier 1 common equity equal to 2.5% of risk-weighted assets is required for compliance with the capital conservation buffer. The ratios for the Company and the Bank are currently sufficient to satisfy the fully phased-in conservation buffer. At June 30, 2021, the Company and the Bank exceeded the minimum regulatory requirements and exceeded the threshold for the "well capitalized" regulatory classification.

Regulatory Restrictions on Dividends:

Pursuant to Tennessee banking law, the Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (the “TDFI”), pay any dividends to the Company in a calendar year in excess of the total of the Bank’s retained net income for that year plus the retained net income for the preceding two years. Because this test involves a measure of net income, any charge on the Bank’s income statement, such as an impairment of goodwill, could impair the Bank’s ability to pay dividends to the Company. Under Tennessee corporate law, the Company is not permitted to pay dividends if, after giving effect to such payment, it would not be able to pay its debts as they become due in the usual course of business or its total assets would be less than the sum of its total liabilities plus any amounts needed to satisfy any preferential rights if it were dissolving. In addition, in deciding whether or not to declare a dividend of any particular size, the Company’s board of directors must consider its and the Bank’s current and prospective capital, liquidity, and other needs. In addition to state law limitations on the Company’s ability to pay dividends, the Federal Reserve imposes limitations on the Company’s ability to pay dividends. Federal Reserve regulations limit dividends, stock repurchases and discretionary bonuses to executive officers if the Company’s regulatory capital is below the level of regulatory minimums plus the applicable capital conservation buffer.

During the three months ended June 30, 2021, the Bank paid $5.0 million in dividends to the Company and the Company paid a quarterly common stock dividend of $0.06 per share. During the six months ended June 30, 2021, the Bank paid $10.0 million in dividends to the Company. Since the first quarter of 2021, the Company has paid a quarterly common stock dividend of $0.06 per share. The amount and timing of all future dividend payments by the Company, if any, is subject to discretion of the Company’s board of directors and will depend on the Company’s earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to the Company.

Regulatory Capital Levels:

Actual and required capital levels at June 30, 2021, and December 31, 2020 are presented below (dollars in thousands):


									Minimum to be
									well
									capitalized under
					Minimum for				prompt
					capital				corrective action
		Actual			adequacy purposes				provisions¹
	Amount		Ratio		Amount		Ratio		Amount		Ratio
June 30, 2021
SmartFinancial:
Total Capital (to Risk Weighted Assets)	$	340,809	12.80	%	$	213,089	8.00	%		N/A	N/A
Tier 1 Capital (to Risk Weighted Assets)		283,118	10.63	%		159,816	6.00	%		N/A	N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)		283,118	10.63	%		119,862	4.50	%		N/A	N/A
Tier 1 Capital (to Average Assets)²		283,118	8.10	%		139,893	4.00	%		N/A	N/A

SmartBank:
Total Capital (to Risk Weighted Assets)	$	324,013	12.19	%	$	212,702	8.00	%	$	265,878	10.00	%
Tier 1 Capital (to Risk Weighted Assets)		305,703	11.50	%		159,527	6.00	%		212,702	8.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		305,703	11.50	%		119,645	4.50	%		172,821	6.50	%
Tier 1 Capital (to Average Assets)²		305,703	8.75	%		139,706	4.00	%		174,632	5.00	%

December 31, 2020
SmartFinancial:
Total Capital (to Risk Weighted Assets)	$	329,431	14.07	%	$	187,303	8.00	%		N/A	N/A
Tier 1 Capital (to Risk Weighted Assets)		271,739	11.61	%		140,477	6.00	%		N/A	N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)		271,739	11.61	%		105,358	4.50	%		N/A	N/A
Tier 1 Capital (to Average Assets)		271,739	8.70	%		125,002	4.00	%		N/A	N/A

SmartBank:
Total Capital (to Risk Weighted Assets)	$	317,660	13.57	%	$	187,294	8.00	%	$	234,117	10.00	%
Tier 1 Capital (to Risk Weighted Assets)		299,314	12.78	%		140,470	6.00	%		187,294	8.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		299,314	12.78	%		105,353	4.50	%		152,176	6.50	%
Tier 1 Capital (to Average Assets)		299,314	9.58	%		124,969	4.00	%		156,212	5.00	%

¹The prompt corrective action provisions are applicable at the Bank level only.

²Average assets for the above calculations were based on the most recent quarter.

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

Other comprehensive income (loss)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Other comprehensive income (loss)

Note 14. Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (loss), net of tax, were as follows (in thousands):


	Three Months Ended June 30, 2021
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, March 31, 2021	$	898	$	185	$	1,083

Other comprehensive income		1,153		102		1,255
Reclassification of amounts included in net income		—		—		—
Net other comprehensive income during period		1,153		102		1,255

Ending balance, June 30, 2021	$	2,051	$	287	$	2,338

	Three Months Ended June 30, 2020
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, March 31, 2020	$	1,242	$	(2,489)	$	(1,247)

Other comprehensive income		1,414		413		1,827
Reclassification of amounts included in net income		12		—		12
Net other comprehensive income during period		1,426		413		1,839

Ending balance, June 30, 2020	$	2,668	$	(2,076)	$	592


	Six Months Ended June 30, 2021
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, December 31, 2020	$	2,968	$	(785)	$	2,183

Other comprehensive income (loss)		(917)		1,072		155
Reclassification of amounts included in net income		—		—		—
Net other comprehensive income (loss) during period		(917)		1,072		155

Ending balance, June 30, 2021	$	2,051	$	287	$	2,338

	Six Months Ended June 30, 2020
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, December 31, 2019	$	391	$	(223)	$	168

Other comprehensive income (loss)		2,265		(1,853)		412
Reclassification of amounts included in net income		12		—		12
Net other comprehensive income (loss) during period		2,277		(1,853)		424

Ending balance, June 30, 2020	$	2,668	$	(2,076)	$	592

Presentation of Financial Information (Policies)

6 Months Ended

Jun. 30, 2021

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Nature of Business

Nature of Business:

SmartFinancial, Inc. (the "Company") is a bank holding company whose principal activity is the ownership and management of its wholly-owned subsidiary, SmartBank (the "Bank"). The Company provides a variety of financial services to individuals and corporate customers through its offices in East and Middle Tennessee, Alabama, and the Florida Panhandle. The Bank’s primary deposit products are noninterest-bearing and interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans.

Basis of Presentation and Accounting Estimates

Basis of Presentation and Accounting Estimates:

The accounting and financial reporting policies of the Company and its wholly-owned subsidiary conform to U.S. generally accepted accounting principles (“GAAP”) and reporting guidelines of banking regulatory authorities and regulators. The accompanying interim consolidated financial statements for the Company and its wholly-owned subsidiary have not been audited. All material intercompany balances and transactions have been eliminated.

In management’s opinion, all accounting adjustments necessary to accurately reflect the financial position and results of operations on the accompanying financial statements have been made. These adjustments are normal and recurring accruals considered necessary for a fair and accurate presentation. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan and lease losses, the valuation of foreclosed assets and deferred taxes, other than temporary impairments of securities, the fair value of financial instruments, goodwill, and the fair value of assets acquired and liabilities assumed in acquisitions. The results for interim periods are not necessarily indicative of results for the full year or any other interim periods. The accompanying unaudited consolidated financial statements should be read in conjunction with the consolidated financial statements and related notes appearing in the Company’s annual report on Form 10-K for the year ended December 31, 2020.

Recently Issued Not Yet Effective Accounting Pronouncements

Recently Issued and Adopted Accounting Pronouncements:

In December 2019, the FASB issued ASU No. 2019-12, “Simplifying the Accounting for Income Taxes.” This ASU simplifies the accounting for income taxes by eliminating certain exceptions to the guidance in ASC 740 related to the approach for intraperiod tax allocation, the methodology for calculating income taxes in an interim period and the recognition of deferred tax liabilities for outside basis differences. The new guidance also simplifies aspects of the accounting for franchise taxes and enacted changes in tax laws or rates and clarifies the accounting for transactions that result in a step-up in the tax basis of goodwill. Finally, it clarifies that single-member limited liability companies and similar disregarded entities that are not subject to income tax are not required to recognize an allocation of consolidated income tax expense in their separate financial statements, but they could elect to do so. ASU 2019-12 is effective for interim and annual reporting periods beginning after December 15, 2020. ASU 2019-12 did not have a material impact on the Company’s Consolidated Financial Statements.

Recently Issued Not Yet Effective Accounting Pronouncements:

During interim periods, the Company follows the accounting policies set forth in its annual audited financial statements for the year ended December 31, 2020 as filed in its Annual Report on Form 10-K with the Securities and Exchange Commission ("SEC"). The following is a summary of recent authoritative pronouncements issued but not yet effective that could impact the accounting, reporting, and/or disclosure of financial information by the Company.

In October 2019, the Financial Accounting Standards Board approved a delay for the implementation of ASU 2016-13, Financial Instruments - Credit Losses (Topic 326). The Board decided that the Current Expected Credit Loss (“CECL”) model will be effective for larger Public Business Entities ("PBEs") that are SEC filers, excluding Smaller Reporting Companies ("SRCs") as currently defined by the SEC, for fiscal years beginning after December 15, 2019, and interim

periods within those fiscal years. For calendar-year-end companies that are not SRCs, this will be January 1, 2020. The determination of whether an entity is an SRC will be based on an entity’s most recent assessment in accordance with SEC regulations and the Company meets the regulations as an SRC. For SRCs and other entities, the Board decided that CECL will be effective for fiscal years beginning after December 15, 2022, including interim periods within those fiscal years. For all entities, early adoption will continue to be permitted; that is, early adoption is allowed for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years (that is, effective January 1, 2019, for calendar-year-end companies). The Company does not plan to adopt this standard early and being that the Company is an SRC, adoption is required for fiscal years beginning after December 15, 2022.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting, which provides temporary optional guidance to ease the potential burden in accounting for reference rate reform. The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference London Interbank Offered Rate (“LIBOR”). It is intended to help stakeholders during the global market-wide reference rate transition period. The Company is implementing a transition plan to identify and modify its loans and other financial instruments, including certain indebtedness, with attributes that are either directly or indirectly influenced by LIBOR. The Company is assessing ASU 2020-04 and its impact on the transition away from LIBOR for its loan and other financial instruments.

Operating, Accounting and Reporting Considerations related to COVID-19

Operating, Accounting and Reporting Considerations related to COVID-19:

The COVID-19 pandemic has negatively impacted the global economy. In response to this crisis, the Coronavirus Aid, Relief, and Economic Security (“CARES”) Act was passed by Congress and signed into law on March 27, 2020. The CARES Act provides an estimated $2.2 trillion to fight the COVID-19 pandemic and stimulate the economy by supporting individuals and businesses through loans, grants, tax changes, and other types of relief. Some of the provisions applicable to the Company include, but are not limited to:

●

Accounting for Loan Modifications – Section 4013 of the CARES Act provides that a financial institution may elect to suspend (1) the requirements under GAAP for certain loan modifications that would otherwise be categorized as a TDR, and (2) any determination that such loan modifications would be considered a TDR, including the related impairment for accounting purposes. See Note 5 - Loans and Leases and Allowance for Loan and Lease Losses for more information.

●

Paycheck Protection Program - The CARES Act established the Paycheck Protection Program (“PPP”), an expansion of the Small Business Administration’s (“SBA”) 7(a) loan program and the Economic Injury Disaster Loan Program (“EIDL”), administered directly by the SBA. On December 27, 2020, the Consolidated Appropriations Act, 2021 (“CAA”) was signed into law. The CAA provides several amendments to the PPP, including additional funding for first and second draws of PPP loans up to March 31, 2021. On March 30, 2021, the PPP Extension Act of 2021 was signed into law, which extends the program to May 31, 2021. The Company is a participant in the PPP. See Note 5 - Loans and Leases and Allowance for Loan and Lease Losses for more information.

Also in response to the COVID-19 pandemic, the Board of Governors of the Federal Reserve System (“FRB”), the Federal Deposit Insurance Corporation (“FDIC”), the National Credit Union Administration (“NCUA”), the Office of the Comptroller of the Currency (“OCC”), and the Consumer Financial Protection Bureau (“CFPB”), in consultation with the state financial regulators (collectively, the “agencies”) issued a joint interagency statement (issued March 22, 2020; revised statement issued April 7, 2020). Some of the provisions applicable to the Company include, but are not limited to:

●

Accounting for Loan Modifications - Loan modifications that do not meet the conditions of the CARES Act may still qualify as a modification that does not need to be accounted for as a TDR. The agencies confirmed with FASB staff that short-term modifications made on a good faith basis in response to COVID-19 to borrowers who were current prior to any relief are not TDRs. This includes short-term (e.g., six months) modifications such as

payment deferrals, fee waivers, extensions of repayment terms, or insignificant delays in payment. See Note 5 - Loans and Leases and Allowance for Loan and Lease Losses for more information.

●

Past Due Reporting - With regard to loans not otherwise reportable as past due, financial institutions are not expected to designate loans with deferrals granted due to COVID-19 as past due because of the deferral. A loan’s payment date is governed by the due date stipulated in the legal agreement. If a financial institution agrees to a payment deferral, these loans would not be considered past due during the period of the deferral.

●

Nonaccrual Status and Charge-offs - During short-term COVID-19 modifications, these loans generally should not be reported as nonaccrual.

The Company began offering short-term loan modifications to assist borrowers during the COVID-19 national emergency. The Company offered deferral options of: 1) three months deferral of payment and then three months of interest only, 2) three months of interest only, 3) three months deferral of payment, 4) six months of interest only. These modifications generally meet the criteria of both Section 4013 of the CARES Act and the joint interagency statement, and therefore, the Company does not account for such loan modifications as TDRs. On August 3, 2020, the Federal Financial Institutions Examination Council on behalf of its members (collectively “the FFIEC members”) issued a joint statement on additional loan accommodations related to COVID-19. The joint statement clarifies that for loan modifications in which Section 4013 is being applied, subsequent modifications could also be eligible under Section 4013. To be eligible, each loan modification must be (1) related to the COVID event; (2) executed on a loan that was not more than 30 days past due as of December 31, 2019; and (3) executed between March 1, 2020, and the earlier of (A) 60 days after the date of termination of the National Emergency or (B) December 31, 2020. The December 31, 2020 deadline was subsequently extended to January 1, 2022, by the CAA. All of the Company’s loan modifications granted under Section 4013 of the CARES Act are in compliance with the aforementioned FFIEC requirements. Accordingly, the Company does not account for such loan modifications as TDRs.

Reclassifications

Reclassifications:

Certain captions and amounts in the 2020 consolidated financial statements were reclassified to conform to the 2021 financial statement presentation. These reclassifications had no impact on net income or shareholders’ equity as previously reported.

Earnings Per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding. Diluted earnings per common share is computed by dividing net income available to common shareholders by the weighted average number of common shares outstanding and dilutive common share equivalents using the treasury stock method. Dilutive common share equivalents include common shares issuable upon exercise of outstanding stock options and restricted stock.

Business Combinations (Tables)

6 Months Ended

Jun. 30, 2021

Fountain [Member]

Business Acquisition [Line Items]

Schedule of Business Acquisitions

The purchased assets and assumed liabilities were recorded at their acquisition date fair values ⁽¹⁾ and are summarized in the table below (in thousands).


	As recorded		Fair value		Subsequent		As recorded
	by Fountain		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	413	$	—	$	—	$	413
Leases		54,945		(720)		—		54,225
Allowance for lease losses		(1,796)		1,796		—		—
Customer list intangible		—		2,658		—		2,658
Other repossessed assets		319		—		—		319
Other assets		233		—		—		233
Total assets acquired	$	54,114	$	3,734	$	—	$	57,848

Liabilities:
Payables and other liabilities		683		(229)		—		454
Total liabilities assumed		683		(229)		—		454
Excess of assets acquired over liabilities assumed	$	53,431
Aggregate fair value adjustments			$	3,963	$	—
Total identifiable net assets								57,394
Consideration transferred:
Cash								59,794
Total fair value of consideration transferred								59,794

Goodwill							$	2,400

⁽¹⁾Fair values are preliminary and are subject to refinement for a period of one year after the closing date of an acquisition as information relative to the closing date fair value becomes available.

Loans Acquired in Acquisition

The following table presents additional information related to the purchased credit impaired financing leases (ASC 310-30) of the acquired lease portfolio at the acquisition date (in thousands):


	May 3, 2021
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	6,018
Non-accretable differences		447
Cash flows expected to be collected		5,571
Accretable yield		649
Fair value	$	4,922

Business Acquisition, Pro Forma Information


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	Revenue		Net Income		Revenue		Net Income
2021:
Actual Fountain results included in statement of income since acquisition date	$	1,137	$	345	$	1,137	$	345
Supplemental consolidation pro-forma as if Fountain had been acquired January 1, 2021		32,487		8,844		65,780		18,487

2020:
Supplemental consolidation pro-forma as if Fountain had been acquired January 1, 2020	$	30,659	$	6,434	$	57,451	$	9,530

Progressive Financial Group Inc. [Member]

Business Acquisition [Line Items]

Schedule of Business Acquisitions

The purchased assets and assumed liabilities were recorded at their acquisition date fair values ⁽¹⁾ and are summarized in the table below (in thousands).


			Initial
	As recorded		Fair value		Subsequent		As recorded
	by PFG		adjustments		Adjustments		by the Company
Assets:
Cash & cash equivalents	$	55,971	$	—	$	—	$	55,971
Investment securities available-for-sale		27,054		203		—		27,257
Restricted investments		692		—		—		692
Loans		191,672		(3,691)		—		187,981
Allowance for loan losses		(2,832)		2,832		—		—
Premises and equipment, net		15,681		(2,919)		—		12,762
Bank owned life insurance		5,560		—		—		5,560
Deferred tax asset, net		—		813		193		1,006
Intangibles		—		1,370		1,127		2,497
Other real estate owned		3,695		(100)		(1,862)		1,733
Interest Receivable		1,061		(280)		—		781
Prepaids		375		(174)		—		201
Goodwill		231		(231)		—		—
Other assets		1,881		—		—		1,881
Total assets acquired	$	301,041	$	(2,177)	$	(542)	$	298,322

Liabilities:
Deposits	$	271,276	$	—		—	$	271,276
Time deposit premium		—		729		—		729
Payables and other liabilities		776		—		—		776
Total liabilities assumed		272,052		729		—		272,781
Excess of assets acquired over liabilities assumed	$	28,989
Aggregate fair value adjustments			$	(2,906)	$	(542)
Total identifiable net assets								25,541
Consideration transferred:
Cash								9,838
Common stock issued (1,292,578 shares)								24,547
Total fair value of consideration transferred								34,385

Goodwill							$	8,844

⁽¹⁾Fair values are preliminary and are subject to refinement for a period of one year after the closing date of an acquisition as information relative to the closing date fair value becomes available.

Loans Acquired in Acquisition

The following table presents additional information related to the purchased credit impaired loans (ASC 310-30) of the acquired loan portfolio at the acquisition date (in thousands):


	March 1, 2020
Accounted for pursuant to ASC 310-30:
Contractually required principal and interest	$	21,107
Non-accretable differences		4,706
Cash flows expected to be collected		16,401
Accretable yield		2,515
Fair value	$	13,886

Earnings Per Share (Tables)

6 Months Ended

Jun. 30, 2021

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Basic earnings per share computation:
Net income available to common shareholders	$	8,778	$	6,174	$	18,534	$	8,907
Average common shares outstanding – basic		15,003,657		15,152,768		15,007,593		14,773,935
Basic earnings per share	$	0.59	$	0.41	$	1.24	$	0.60
Diluted earnings per share computation:
Net income available to common shareholders	$	8,778	$	6,174	$	18,534	$	8,907
Average common shares outstanding – basic		15,003,657		15,152,768		15,007,593		14,773,935
Incremental shares from assumed conversions:
Stock options and restricted stock		122,527		49,567		111,331		68,551
Average common shares outstanding - diluted		15,126,184		15,202,335		15,118,924		14,842,486
Diluted earnings per common share	$	0.58	$	0.41	$	1.23	$	0.60

Securities (Tables)

6 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Schedule of Available-for-sale Securities Reconciliation


	June 30, 2021
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Treasury	$	6,381	$	57	$	—	$	6,438
U.S. Government-sponsored enterprises (GSEs)		73,503		191		(1,074)		72,620
Municipal securities		86,720		2,188		—		88,908
Other debt securities		29,019		414		(82)		29,351
Mortgage-backed securities (GSEs)		52,430		1,201		(131)		53,500
Total	$	248,053	$	4,051	$	(1,287)	$	250,817


	December 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
U.S. Government-sponsored enterprises (GSEs)	$	30,526	$	10	$	(6)	$	30,530
Municipal securities		89,644		2,345		—		91,989
Other debt securities		25,019		112		(13)		25,118
Mortgage-backed securities (GSEs)		66,425		1,754		(182)		67,997
Total	$	211,614	$	4,221	$	(201)	$	215,634

Proceeds from sale of securities available for sale, gains losses and proceeds from redemption

Proceeds from sale of securities available for sale, gross gains and gross losses on sales and redemptions for the three and six months ended June 30, 2021 and 2020 were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Proceeds from sales	$	-	$	4,760	$	-	$	6,875
Gross gains	$	-	$	16	$	-	$	16
Gross losses	$	-	$	-	$	-	$	-

Proceeds from maturities and calls	$	2,178	$	12,200	$	11,275	$	15,450

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of securities at June 30, 2021, by contractual maturity for non-mortgage backed securities are shown below (in thousands). Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	June 30, 2021
	Amortized		Fair
	Cost		Value
Due in one year or less	$	5,025	$	5,041
Due from one year to five years		4,039		4,058
Due from five years to ten years		66,493		67,152
Due after ten years		120,066		121,066
		195,623		197,317
Mortgage-backed securities		52,430		53,500
Total	$	248,053	$	250,817

Schedule of Unrealized Loss on Investments

The following tables present the gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities available-for-sale have been in a continuous unrealized loss position (in thousands):


	June 30, 2021
	Less than 12 Months					12 Months or Greater					Total
			Gross		Number			Gross		Number			Gross		Number
	Fair		Unrealized		of	Fair		Unrealized		of	Fair		Unrealized		of
	Value		Losses		Securities	Value		Losses		Securities	Value		Losses		Securities
U.S. Government-sponsored enterprises (GSEs)	$	35,861	$	(1,071)	9	$	841	$	(3)	3	$	36,702	$	(1,074)	12
Municipal securities		—		—	—		—		—	—		—		—	—
Other debt securities		10,918		(82)	5		—		—	—		10,918		(82)	5
Mortgage-backed securities (GSEs)		36		—	1		9,862		(131)	6		9,898		(131)	7
Total	$	46,815	$	(1,153)	15	$	10,703	$	(134)	9	$	57,518	$	(1,287)	24


	December 31, 2020
	Less than 12 Months					12 Months or Greater					Total
			Gross		Number			Gross		Number			Gross		Number
	Fair		Unrealized		of	Fair		Unrealized		of	Fair		Unrealized		of
	Value		Losses		Securities	Value		Losses		Securities	Value		Losses		Securities
U.S. Government-sponsored enterprises (GSEs)	$	15,510	$	(5)	3	$	132	$	(1)	1	$	15,642	$	(6)	4
Municipal securities		—		—	—		—		—	—		—		—	—
Other debt securities		1,495		(5)	1		977		(8)	1		2,472		(13)	2
Mortgage-backed securities (GSEs)		9,790		(87)	6		6,083		(95)	3		15,873		(182)	9
Total	$	26,795	$	(97)	10	$	7,192	$	(104)	5	$	33,987	$	(201)	15

Schedule of Other Investments

The following is the amortized cost and carrying value of other investments (in thousands):


	June 30,		December 31,
	2021		2020
Federal Reserve Bank stock	$	8,316	$	8,606
Federal Home Loan Bank stock		5,918		5,838
First National Bankers Bank stock		350		350
Total	$	14,584	$	14,794

Loans and Leases and Allowance for Loan and Lease Losses (Tables)

6 Months Ended

Jun. 30, 2021

Receivables [Abstract]

Schedule of Loans

Major categories of loans and leases are summarized as follows (in thousands):


	June 30, 2021						December 31, 2020
	PCI		All Other				PCI		All Other
	Loans and Leases¹		Loans and Leases		Total		Loans and Leases¹		Loans and Leases		Total
Commercial real estate	$	11,371	$	1,151,120	$	1,162,491	$	16,123	$	996,853	$	1,012,976
Consumer real estate		8,975		435,665		444,640		10,258		433,672		443,930
Construction and land development		5,265		295,439		300,704		5,348		272,727		278,075
Commercial and industrial		261		495,853		496,114		308		634,138		634,446
Leases		4,214		48,824		53,038		—		—		—
Consumer and other		16		11,315		11,331		27		12,789		12,816
Total loans and leases		30,102		2,438,216		2,468,318		32,064		2,350,179		2,382,243
Less: Allowance for loan and lease losses		(371)		(17,939)		(18,310)		(309)		(18,037)		(18,346)
Loans and leases, net	$	29,731	$	2,420,277	$	2,450,008	$	31,755	$	2,332,142	$	2,363,897

¹Purchased Credit Impaired loans and leases (“PCI loans and leases”) are loans and leases with evidence of credit deterioration at purchase.

Schedule of Impaired and Performing Loans Receivable

The composition of loans and leases by loan classification for performing, impaired and PCI loan and leases status is summarized in the tables below (in thousands):


					Construction		Commercial
	Commercial		Consumer		and Land		and				Consumer
	Real Estate		Real Estate		Development		Industrial		Leases		and Other		Total
June 30, 2021:
Performing loans and leases	$	1,150,261	$	433,218	$	295,439	$	495,645	$	48,824	$	11,315	$	2,434,702
Impaired loans and leases		859		2,447		—		208		—		—		3,514
		1,151,120		435,665		295,439		495,853		48,824		11,315		2,438,216
PCI loans and leases		11,371		8,975		5,265		261		4,214		16		30,102
Total loans and leases	$	1,162,491	$	444,640	$	300,704	$	496,114	$	53,038	$	11,331	$	2,468,318

December 31, 2020:
Performing loans and leases	$	992,982	$	432,356	$	272,727	$	633,992	$	—	$	12,789	$	2,344,846
Impaired loans and leases		3,871		1,316		—		146		—		—		5,333
		996,853		433,672		272,727		634,138		—		12,789		2,350,179
PCI loans and leases		16,123		10,258		5,348		308		—		27		32,064
Total loans and leases	$	1,012,976	$	443,930	$	278,075	$	634,446	$	—	$	12,816	$	2,382,243

Schedule of Allowance for Loan Losses for Impaired and Performing Loans Receivable

The following tables show the allowance for loan and lease losses allocation by loan and lease classification for impaired, PCI, and performing (in thousands):


					Construction		Commercial				Consumer
	Commercial		Consumer		and Land		and				and
	Real Estate		Real Estate		Development		Industrial		Leases		Other		Total
June 30, 2021:
Performing loans and leases	$	7,965	$	3,096	$	2,061	$	4,021	$	—	$	100	$	17,243
Impaired loans and leases		417		71		—		208		—		—		696
		8,382		3,167		2,061		4,229		—		100		17,939
PCI loans and leases		—		156		—		213		—		2		371
Total loans and leases	$	8,382	$	3,323	$	2,061	$	4,442	$	—	$	102	$	18,310

December 31, 2020:
Performing loans and leases	$	7,579	$	3,267	$	2,076	$	4,768	$	—	$	110	$	17,800
Impaired loans and leases		—		116		—		121		—		—		237
		7,579		3,383		2,076		4,889		—		110		18,037
PCI loans and leases		—		88		—		218		—		3		309
Total loans and leases	$	7,579	$	3,471	$	2,076	$	5,107	$	—	$	113	$	18,346

Schedule of Allowance for Loan Losses

The following tables detail the changes in the allowance for loan and lease losses by loan and lease classification (in thousands):


	Three Months Ended June 30, 2021
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	7,636	$	3,309	$	1,968	$	5,347	$	—	$	110	$	18,370
Charged-off loans and leases		—		(60)		—		(4)		—		(89)		(153)
Recoveries of charge-offs		3		5		—		7		—		83		98
Provision charged to expense		743		69		93		(908)		—		(2)		(5)
Ending balance	$	8,382	$	3,323	$	2,061	$	4,442	$	—	$	102	$	18,310


	Three Months Ended June 30, 2020
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	5,963	$	3,301	$	1,484	$	2,557	$	—	$	126	$	13,431
Charged-off loans and leases		—		—		—		(9)		—		(66)		(75)
Recoveries of charge-offs		3		11		—		6		—		28		48
Provision charged to expense		629		1		311		1,889		—		20		2,850
Ending balance	$	6,595	$	3,313	$	1,795	$	4,443	$	—	$	108	$	16,254


	Six Months Ended June 30, 2021
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	7,579	$	3,471	$	2,076	$	5,107	$	—	$	113	$	18,346
Charged-off loans and leases		—		(60)		—		(4)		—		(209)		(273)
Recoveries of charge-offs		6		21		—		10		—		138		175
Provision charged to expense		797		(109)		(15)		(671)		—		60		62
Ending balance	$	8,382	$	3,323	$	2,061	$	4,442	$	—	$	102	$	18,310


	Six Months Ended June 30, 2020
			Consumer		Construction		Commercial
	Commercial		Real		and Land		and				Consumer
	Real Estate		Estate		Development		Industrial		Leases		and Other		Total
Beginning balance	$	4,508	$	2,576	$	1,127	$	1,957	$	—	$	75	$	10,243
Charged-off loans and leases		—		(2)		—		(17)		—		(142)		(161)
Recoveries of charge-offs		5		17		2		49		—		50		123
Provision charged to expense		2,082		722		666		2,454		—		125		6,049
Ending balance	$	6,595	$	3,313	$	1,795	$	4,443	$	—	$	108	$	16,254

Loan Credit Quality Indicators

The following tables outline the amount of each loan and lease classification and the amount categorized into each risk rating (in thousands):


	June 30, 2021
					Construction		Commercial
	Commercial		Consumer		and Land		and				Consumer
Non PCI Loans and Leases:	Real Estate		Real Estate		Development		Industrial		Leases		and Other		Total
Pass	$	1,109,079	$	431,122	$	295,119	$	490,144	$	48,824	$	11,241	$	2,385,529
Watch		37,077		1,637		243		5,087		—		49		44,093
Special mention		3,881		42		—		271		—		—		4,194
Substandard		1,083		2,864		77		306		—		25		4,355
Doubtful		—		—		—		45		—		—		45
Total		1,151,120		435,665		295,439		495,853		48,824		11,315		2,438,216

PCI Loans and Leases:
Pass		8,699		7,593		1,342		215		4,214		15		22,078
Watch		1,570		234		3,449		—		—		1		5,254
Special mention		17		57		—		—		—		—		74
Substandard		1,085		1,091		474		46		—		—		2,696
Doubtful		—		—		—		—		—		—		—
Total		11,371		8,975		5,265		261		4,214		16		30,102
Total loans and leases	$	1,162,491	$	444,640	$	300,704	$	496,114	$	53,038	$	11,331	$	2,468,318


	December 31, 2020
					Construction		Commercial
	Commercial		Consumer		and Land		and				Consumer
Non PCI Loans and Leases:	Real Estate		Real Estate		Development		Industrial		Leases		and Other		Total
Pass	$	922,153	$	417,302	$	269,350	$	625,836	$	—	$	12,622	$	2,247,263
Watch		66,287		14,218		3,296		7,673		—		137		91,611
Special mention		4,446		46		—		320		—		—		4,812
Substandard		3,967		2,020		81		261		—		30		6,359
Doubtful		—		86		—		48		—		—		134
Total		996,853		433,672		272,727		634,138		—		12,789		2,350,179

PCI Loans and Leases:
Pass		11,072		8,382		1,008		262		—		25		20,749
Watch		3,381		224		3,820		—		—		2		7,427
Special mention		19		57		—		—		—		—		76
Substandard		1,651		1,595		520		46		—		—		3,812
Doubtful		—		—		—		—		—		—		—
Total		16,123		10,258		5,348		308		—		27		32,064
Total loans and leases	$	1,012,976	$	443,930	$	278,075	$	634,446	$	—	$	12,816	$	2,382,243

Past Due Loans and Leases

The following tables present an aging analysis of our loan and lease portfolio (in thousands):


	June 30, 2021
	30-60 Days		61-89 Days		Past Due 90				Total
	Past Due and		Past Due and		Days or More				Past Due and
	Accruing		Accruing		and Accruing		Nonaccrual		Nonaccrual		PCI		Current		Total
Commercial real estate	$	—	$	—	$	—	$	859	$	859	$	11,371	$	1,150,261	$	1,162,491
Consumer real estate		258		13		—		2,676		2,947		8,975		432,718		444,640
Construction and land development		95		—		—		—		95		5,265		295,344		300,704
Commercial and industrial		1,346		296		64		138		1,844		261		494,009		496,114
Leases		45		40		—		—		85		4,214		48,739		53,038
Consumer and other		151		2		—		21		174		16		11,141		11,331
Total	$	1,895	$	351	$	64	$	3,694	$	6,004	$	30,102	$	2,432,212	$	2,468,318


	December 31, 2020
	30-60 Days		61-89 Days		Past Due 90				Total
	Past Due and		Past Due and		Days or More				Past Due and
	Accruing		Accruing		and Accruing		Nonaccrual		Nonaccrual		PCI		Current		Total
Commercial real estate	$	134	$	—	$	67	$	3,740	$	3,941	$	16,123	$	992,912	$	1,012,976
Consumer real estate		1,916		51		82		1,823		3,872		10,258		429,800		443,930
Construction and land development		245		—		—		12		257		5,348		272,470		278,075
Commercial and industrial		12		76		—		36		124		308		634,014		634,446
Leases		—		—		—		—		—		—		—		—
Consumer and other		14		5		—		22		41		27		12,748		12,816
Total	$	2,321	$	132	$	149	$	5,633	$	8,235	$	32,064	$	2,341,944	$	2,382,243

Impaired Loans

The following is an analysis of the impaired loan and lease portfolio, including PCI loans and leases, detailing the related allowance recorded (in thousands):


	June 30, 2021						December 31, 2020
			Unpaid						Unpaid
	Recorded		Principal		Related		Recorded		Principal		Related
	Investment		Balance		Allowance		Investment		Balance		Allowance
Impaired loans and leases without a valuation allowance:
Commercial real estate	$	—	$	—	$	—	$	3,871	$	3,872	$	—
Consumer real estate		2,186		2,187		—		888		888		—
Construction and land development		—		—		—		—		—		—
Commercial and industrial		—		—		—		—		—		—
Leases		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—
		2,186		2,187		—		4,759		4,760		—
Impaired loans and leases with a valuation allowance:
Commercial real estate		859		859		417		—		—		—
Consumer real estate		261		264		71		428		428		116
Construction and land development		—		—		—		—		—		—
Commercial and industrial		208		208		208		146		146		121
Leases		—		—		—		—		—		—
Consumer and other		—		—		—		—		—		—
		1,328		1,331		696		574		574		237
PCI loans and leases:
Commercial real estate		—		—		—		—		—		—
Consumer real estate		1,201		1,332		156		1,827		2,086		88
Construction and land development		—		—		—		—		—		—
Commercial and industrial		261		231		213		270		234		218
Leases		—		—		—		—		—		—
Consumer and other		14		12		2		21		20		3
		1,476		1,575		371		2,118		2,340		309
Total impaired loans and leases	$	4,990	$	5,093	$	1,067	$	7,451	$	7,674	$	546


	Three Months Ended June 30,
	2021				2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans and leases without a valuation allowance:
Commercial real estate	$	65	$	—	$	345	$	1
Consumer real estate		2,033		8		633		10
Construction and land development		—		—		304		—
Commercial and industrial		—		—		—		—
Leases		—		—		—		—
Consumer and other		—		—		—		—
		2,098		8		1,282		11
Impaired loans and leases with a valuation allowance:
Commercial real estate		2,007		2		396		—
Consumer real estate		360		3		827		5
Construction and land development		—		—		—		—
Commercial and industrial		159		3		158		3
Leases		—		—		—		—
Consumer and other		—		—		—		—
		2,526		8		1,381		8
PCI loans and leases:
Commercial real estate		—		—		490		—
Consumer real estate		1,115		21		1,168		38
Construction and land development		—		—		116		—
Commercial and industrial		263		1		338		3
Leases		—		—		—		—
Consumer and other		16		—		22		—
		1,394		22		2,134		41
Total impaired loans and leases	$	6,018	$	38	$	4,797	$	60



	Six Months Ended June 30,
	2021				2020
	Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized
Impaired loans and leases without a valuation allowance:
Commercial real estate	$	1,334	$	1	$	315	$	4
Consumer real estate		1,651		20		606		14
Construction and land development		—		—		385		—
Commercial and industrial		—		—		—		—
Leases		—		—		—		—
Consumer and other		—		—		—		—
		2,985		21		1,306		18
Impaired loans and leases with a valuation allowance:
Commercial real estate		1,338		104		264		2
Consumer real estate		383		8		882		14
Construction and land development		—		—		—		—
Commercial and industrial		154		5		158		5
Leases		—		—		—		—
Consumer and other		—		—		—		—
		1,875		117		1,304		21
PCI loans and leases:
Commercial real estate		—		—		333		1
Consumer real estate		1,165		43		1,174		39
Construction and land development		—		—		77		—
Commercial and industrial		266		2		361		3
Leases		—		—		—		—
Consumer and other		18		—		31		—
		1,449		45		1,976		43
Total impaired loans and leases	$	6,309	$	183	$	4,586	$	82

Certain Loans Acquired In Transfer Not Accounted For As Debt Securities, Acquired During Period Carrying Amount Of Loans

The Company has acquired loans and leases where there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans and leases are as follows (in thousands):


	June 30,		December 31,
	2021		2020
Commercial real estate	$	18,456	$	23,787
Consumer real estate		11,342		12,692
Construction and land development		858		1,812
Commercial and industrial		6,313		6,521
Leases		4,603		—
Consumer and other		94		161
Total loans and leases		41,666		44,973
Less: Remaining purchase discount		(11,564)		(12,909)
Total loans and leases, net of purchase discount		30,102		32,064
Less: Allowance for loan and leases losses		(371)		(309)
Carrying amount, net of allowance	$	29,731	$	31,755

Schedule of Certain Loans Acquired in Transfer Accounted for as Debt Securities, Accretable Yield Movement

Activity related to the accretable yield on loans and leases acquired with deteriorated credit quality is as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Accretable yield, beginning of period	$	14,705	$	10,979	$	16,889	$	8,454
Additions		649		—		649		2,515
Accretion income		(1,098)		(1,057)		(3,029)		(3,134)
Reclassification		1,340		247		1,677		2,163
Other changes, net		(1,074)		1,608		(1,664)		1,779
Accretable yield, end of period	$	14,522	$	11,777	$	14,522	$	11,777

Goodwill and Intangible Assets (Tables)

6 Months Ended

Jun. 30, 2021

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying amount of goodwill and other intangible assets as of the dates indicated is summarized below (in thousands):


	June 30,		December 31,
	2021		2020
Goodwill:
Balance, beginning of period	$	74,135	$	65,614
Acquisition of PFG		323		8,521
Acquisition of Fountain		2,400		—
Balance, end of the period	$	76,858	$	74,135

Finite-lived Intangible Assets Amortization Expense


	Core Deposit		Customer Relationships		Tradename
Amortized other intangible assets:	Intangibles		Intangibles		Intangibles		Total
Beginning balance January 1, 2021, gross	$	15,920	$	1,064	$	63	$	17,047
Acquisition of Fountain		-		2,658		-		2,658
Balance, June 30, 2021, other intangible assets, gross		15,920		3,722		63		19,705
Less: accumulated amortization		(5,330)		(250)		(17)		(5,597)
Balance, June 30, 2021, other intangible assets, net	$	10,590	$	3,472	$	46	$	14,108

Beginning balance January 1, 2020, gross	$	14,550	$	-	$	-	$	14,550
Acquisition of PFG		1,370		1,064		63		2,497
Balance, December 31, 2020, other intangible assets, gross		15,920		1,064		63		17,047
Less: accumulated amortization		(4,540)		(161)		(10)		(4,711)
Balance, December 31, 2020, other intangible assets, net	$	11,380	$	903	$	53	$	12,336

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

The estimated aggregate amortization expense for future periods for core deposit intangibles is as follows (in thousands):


Remainder of 2021	$	1,270
2022		2,238
2023		2,103
2024		1,981
2025		1,850
Thereafter		4,666
Total	$	14,108

Borrowings, Line of Credit and Subordinated Debt (Tables)

6 Months Ended

Jun. 30, 2021

Borrowings, Line of Credit and Subordinated Debt [Abstract]

Schedule of debt


	June 30,		December 31,
	2021		2020
Securities sold under customer repurchase agreements	$	3,834	$	5,803
FHLB borrowings		75,000		75,000
Other borrowings		—		396
Total	$	78,834	$	81,199

Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2021

Defined Benefit Plan [Abstract]

Schedule of Option Activity


		Weighted
		Average
		Exercisable
	Number	Price
Outstanding at December 31, 2020	99,617	$	10.19
Granted	—		—
Exercised	(19,040)		10.18
Forfeited	—		—
Outstanding at June 30, 2021	80,577	$	10.19

Schedule of Options Outstanding by Exercise Price Range


		Options Outstanding				Options Exercisable
			Weighted-
			Average	Weighted-			Weighted-
			Remaining	Average			Average
Exercise		Number	Contractual	Exercise		Number	Exercise
Prices		Outstanding	Life	Price		Exercisable	Price
$	6.60	19,250	0.70 years	$	6.60	19,250	$	6.60
	9.48	18,000	1.70 years		9.48	18,000		9.48
	9.60	22,250	2.50 years		9.60	22,250		9.60
	11.76	2,266	1.00 years		11.76	2,266		11.76
	15.05	18,811	4.00 years		15.05	18,811		15.05
Outstanding, end of period		80,577	2.20 years	$	10.19	80,577	$	10.19

Schedule of Non-vested Restricted Stock Awards


		Weighted
		Average
		Grant-Date
	Number	Fair Value
Balance at December 31, 2020	100,218	$	19.07
Granted	50,967		20.23
Vested	(5,985)		22.29
Forfeited/expired	—		—
Balance at June 30, 2021	145,200	$	19.34

Share-based Payment Arrangement, Stock Appreciation Right, Activity

A summary of the status of SARs plans is presented in the following table:


		Weighted
		Average
	Number	Exercisable Price
Outstanding at December 31, 2020	73,000	$	19.02
Granted	22,000		20.70
Exercised	(11,500)		21.61
Forfeited	(6,000)		18.00
Outstanding at June 30, 2021	77,500	$	19.19

Information pertaining to SARs outstanding at June 30, 2021, is as follows:


		SARs Outstanding				SARs Exercisable
			Weighted-
			Average	Weighted-
			Remaining	Average			Weighted- Average
Exercise		Number	Contractual	Exercise		Number	Exercise
Prices		Outstanding	Life		Price	Exercisable	Price
$	15.19	16,000	2.50 years	$	15.19	—	$	—
	18.12	19,000	1.50 years		18.12	—		—
	20.70	20,000	3.51 years		20.70	—		—
	21.61	22,500	0.50 years		21.61	22,500		21.61
	Outstanding, end of period	77,500	1.94 years	$	19.19	22,500	$	21.61

Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2021

Commitments and Contingencies Disclosure [Abstract]

Other Commitments

A summary of the Company’s total contractual amount for all off-balance sheet commitments are as follows (in thousands):


	June 30,		December 31,
	2021		2020
Commitments to extend credit	$	640,269	$	476,841
Standby letters of credit		7,540		5,261

Fair Value Disclosures (Tables)

6 Months Ended

Jun. 30, 2021

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The tables below present the recorded amount of assets and liabilities measured at fair value on a recurring basis are as follows (in thousands):


			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
Description	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2021:
Assets:
Securities available-for-sale:
U.S. Treasury		6,438		—		6,438		—
U.S. Government-sponsored enterprises (GSEs)	$	72,620	$	—	$	72,620	$	—
Municipal securities		88,908		—		88,908		—
Other debt securities		29,351		—		29,351		—
Mortgage-backed securities (GSEs)		53,500		—		53,500		—
Total securities available-for-sale	$	250,817	$	—	$	250,817	$	—

Liabilities:
Derivative financial instruments	$	4,468	$	—	$	4,468	$	—

December 31, 2020:
Assets:
Securities available-for-sale:
U.S. Government-sponsored enterprises (GSEs)	$	30,530	$	—	$	30,530	$	—
Municipal securities		91,989		—		91,989		—
Other debt securities		25,118		—		25,118		—
Mortgage-backed securities (GSEs)		67,997		—		67,997		—
Total securities available-for-sale	$	215,634	$	—	$	215,634	$	—

Liabilities:
Derivative financial instruments	$	6,174		—	$	6,174		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis


			Quoted Prices in		Significant		Significant
			Active Markets		Other		Other
			for Identical		Observable		Unobservable
			Assets		Inputs		Inputs
	Fair Value		(Level 1)		(Level 2)		(Level 3)
June 30, 2021:
Impaired loans	$	1,737	$	—	$	—	$	1,737
Other real estate owned		2,499		—		—		2,499

December 31, 2020:
Impaired loans	$	2,455	$	—	$	—	$	2,455
Other real estate owned		4,619		—		—		4,619

Fair Value Measurement Inputs and Valuation Techniques

For Level 3 assets measured at fair value on a non-recurring basis, the significant unobservable inputs used in the fair value measurements are presented below (dollars in thousands):


					Weighted
			Valuation	Significant Other	Average of
	Fair Value		Technique	Unobservable Input	Input
June 30, 2021:
Impaired loans	$	1,737	Appraisal	Appraisal discounts	38	%
Other real estate owned		2,499	Appraisal	Appraisal discounts	25	%

December 31, 2020:
Impaired loans	$	2,455	Appraisal	Appraisal discounts	9	%
Other real estate owned		4,619	Appraisal	Appraisal discounts	22	%

Fair Value, by Balance Sheet Grouping

The carrying amount and estimated fair value of the Company’s financial instruments are as follows (in thousands):


	Fair Value Measurements Using
	Carrying								Estimated
	Amount		Level 1		Level 2		Level 3		Fair Value
June 30, 2021:
Assets:
Cash and cash equivalents	$	673,515	$	673,515	$	—	$	—	$	673,515
Securities available-for-sale		250,817		—		250,817		—		250,817
Other investments		14,584		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		2,454,342		—		—		2,455,130		2,455,130

Liabilities:
Noninterest-bearing demand deposits		807,560		—		807,560		—		807,560
Interest-bearing demand deposits		702,470		—		702,470		—		702,470
Money market and savings deposits		1,140,029		—		1,140,029		—		1,140,029
Time deposits		489,413		—		492,243		—		492,243
Borrowings		78,834		—		79,847		—		79,847
Subordinated debt		39,388		—		—		41,302		41,302
Derivative financial instruments		4,468		—		4,468		—		4,468

December 31, 2020:
Assets:
Cash and cash equivalents	$	481,719	$	481,719	$	—	$	—	$	481,719
Securities available-for-sale		215,634		—		215,634		—		215,634
Other investments		14,794		N/A		N/A		N/A		N/A
Loans and leases, net and loans held for sale		2,375,618		—		—		2,377,581		2,377,581

Liabilities:
Noninterest-bearing demand deposits		685,957		—		685,957		—		685,957
Interest-bearing demand deposits		649,129		—		649,129		—		649,129
Money market and savings deposits		919,631		—		919,631		—		919,631
Time deposits		550,498		—		554,120		—		554,120
Borrowings		81,199		—		82,892		—		82,892
Subordinated debt		39,346		—		—		40,550		40,550
Derivative financial instruments		6,174		—		6,174		—		6,174

Derivatives Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2021

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Schedule of Fair Value Hedge Relationships in Balance Sheet

A summary of the Company’s fair value hedge relationships for the periods presented are as follows (dollars in thousands):

Weighted

Average

Balance

Remaining

Weighted

Sheet

Maturity

Average

Receive

Notional

Estimated

Liability derivatives

Location

(In Years)

Pay Rate

Rate

Amount

Fair Value

June 30, 2021:

Interest rate swap agreements - securities

Other liabilities

5.96

3.09

%

3 month LIBOR

$

36,000

$

(4,468)

December 31, 2020:

Interest rate swap agreements - securities

Other liabilities

7.13

3.08

%

3 month LIBOR

$

36,000

$

(6,174)

Schedule of Fair Value Hedge Relationships on Income Statement

The effects of the Company’s fair value hedge relationships reported in interest income on tax-exempt available-for-sale securities on the consolidated income statement were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Interest income on tax-exempt securities	$	562	$	580	$	1,126	$	1,020
Effects of fair value hedge relationships		(258)		(164)		(563)		(321)
Reported interest income on tax-exempt securities	$	304	$	416	$	563	$	699


	Three Months Ended				Six Months Ended
	June 30,				June 30,
Gain (loss) on fair value hedging relationship	2021		2020		2021		2020
Interest rate swap agreements - securities:
Hedged items	$	(459)	$	(205)	$	1,706	$	(3,644)
Derivative designated as hedging instruments	$	459	$	205	$	(1,706)	$	3,644

Schedule of Fair Value Hedges

The following amounts were recorded on the balance sheet related to cumulative basis adjustments for fair value hedges (in thousands):


			Cumulative Amount of Fair
			Value Hedging Adjustment
	Carrying Amount		Included in Other Comprehensive
Line item on the balance sheet	of the Hedged Assets		Income
June 30, 2021:
Securities available-for-sale	$	43,580	$	1,072
December 31, 2020:
Securities available-for-sale	$	44,017	$	(1,063)

Schedule of interest rate swaps related to loan hedging program

At June 30, 2021 and December 31, 2020, interest rate swaps related to the Company’s loan hedging program that were outstanding are presented in the following table (in thousands):


	June 30, 2021				December 31, 2020
		Notional		Estimated		Notional		Estimated
		Amount		Fair Value		Amount		Fair Value
Interest rate swap agreements:
Assets	$	750	$	12	$	-	$	-
Liabilities		750		(12)		-		-
Total	$	1,500	$	-	$	-	$	-

Schedule of interest rate swap to facilitate customer's transactions

The Company establishes limits and monitors exposures for customer swap positions. Any fees received to enter the swap agreements at inception are recognized in earnings when received. Such fees were as follows (in thousands):


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Interest rate swap agreements	$	10	$	—	$	10	$	—

Leases (Tables)

6 Months Ended

Jun. 30, 2021

Leases [Abstract]

Summary of Lease Assets and Liabilities

The following table represents the consolidated balance sheet classification of the Company’s ROU assets and lease liabilities. The Company elected not to include short-term leases (i.e., leases with initial terms of twelve months or less), or equipment leases (deemed immaterial) on the consolidated balance sheet (in thousands):


		June 30,		December 31,
	Classification	2021		2020
Assets:
Operating lease right-of-use assets	Other assets	$	4,536	$	4,797
Liabilities:
Operating lease liabilities	Other liabilities	$	4,578	$	4,827

Summary of Lease Costs and Other Information

The following table represents lease costs and other lease information. As the Company elected, for all classes of underlying assets, not to separate lease and non-lease components and instead to account for them as a single lease component, the variable lease cost primarily represents variable payments such as common area maintenance (in thousands).


	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2021		2020		2021		2020
Lease costs:
Operating lease costs	$	254	$	270	$	494	$	507
Variable lease costs		24		29		48		55
Total	$	278	$	299	$	542	$	562
Other information:
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	250	$	265	$	483	$	495

Schedule of Remaining Minimum Lease Payments

Future minimum payments for operating leases with initial or remaining terms of one year or more as of June 30, 2021, were as follows (in thousands):


	Amounts
June 30, 2022	$	414
June 30, 2023		689
June 30, 2024		496
June 30, 2025		368
June 30, 2026		348
Thereafter		3,033
Total future minimum lease payments		5,348
Amounts representing interest		(770)
Present value of net future minimum lease payments	$	4,578

Regulatory Matters (Tables)

6 Months Ended

Jun. 30, 2021

Banking and Thrift [Abstract]

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations

Actual and required capital levels at June 30, 2021, and December 31, 2020 are presented below (dollars in thousands):


									Minimum to be
									well
									capitalized under
					Minimum for				prompt
					capital				corrective action
		Actual			adequacy purposes				provisions¹
	Amount		Ratio		Amount		Ratio		Amount		Ratio
June 30, 2021
SmartFinancial:
Total Capital (to Risk Weighted Assets)	$	340,809	12.80	%	$	213,089	8.00	%		N/A	N/A
Tier 1 Capital (to Risk Weighted Assets)		283,118	10.63	%		159,816	6.00	%		N/A	N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)		283,118	10.63	%		119,862	4.50	%		N/A	N/A
Tier 1 Capital (to Average Assets)²		283,118	8.10	%		139,893	4.00	%		N/A	N/A

SmartBank:
Total Capital (to Risk Weighted Assets)	$	324,013	12.19	%	$	212,702	8.00	%	$	265,878	10.00	%
Tier 1 Capital (to Risk Weighted Assets)		305,703	11.50	%		159,527	6.00	%		212,702	8.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		305,703	11.50	%		119,645	4.50	%		172,821	6.50	%
Tier 1 Capital (to Average Assets)²		305,703	8.75	%		139,706	4.00	%		174,632	5.00	%

December 31, 2020
SmartFinancial:
Total Capital (to Risk Weighted Assets)	$	329,431	14.07	%	$	187,303	8.00	%		N/A	N/A
Tier 1 Capital (to Risk Weighted Assets)		271,739	11.61	%		140,477	6.00	%		N/A	N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets)		271,739	11.61	%		105,358	4.50	%		N/A	N/A
Tier 1 Capital (to Average Assets)		271,739	8.70	%		125,002	4.00	%		N/A	N/A

SmartBank:
Total Capital (to Risk Weighted Assets)	$	317,660	13.57	%	$	187,294	8.00	%	$	234,117	10.00	%
Tier 1 Capital (to Risk Weighted Assets)		299,314	12.78	%		140,470	6.00	%		187,294	8.00	%
Common Equity Tier 1 Capital (to Risk Weighted Assets)		299,314	12.78	%		105,353	4.50	%		152,176	6.50	%
Tier 1 Capital (to Average Assets)		299,314	9.58	%		124,969	4.00	%		156,212	5.00	%

¹The prompt corrective action provisions are applicable at the Bank level only.

²Average assets for the above calculations were based on the most recent quarter.

Other comprehensive income (loss) (Tables)

6 Months Ended

Jun. 30, 2021

Equity [Abstract]

Summary of Accumulated Other Comprehensive Income (Loss)

The changes in each component of accumulated other comprehensive income (loss), net of tax, were as follows (in thousands):


	Three Months Ended June 30, 2021
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, March 31, 2021	$	898	$	185	$	1,083

Other comprehensive income		1,153		102		1,255
Reclassification of amounts included in net income		—		—		—
Net other comprehensive income during period		1,153		102		1,255

Ending balance, June 30, 2021	$	2,051	$	287	$	2,338

	Three Months Ended June 30, 2020
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, March 31, 2020	$	1,242	$	(2,489)	$	(1,247)

Other comprehensive income		1,414		413		1,827
Reclassification of amounts included in net income		12		—		12
Net other comprehensive income during period		1,426		413		1,839

Ending balance, June 30, 2020	$	2,668	$	(2,076)	$	592


	Six Months Ended June 30, 2021
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, December 31, 2020	$	2,968	$	(785)	$	2,183

Other comprehensive income (loss)		(917)		1,072		155
Reclassification of amounts included in net income		—		—		—
Net other comprehensive income (loss) during period		(917)		1,072		155

Ending balance, June 30, 2021	$	2,051	$	287	$	2,338

	Six Months Ended June 30, 2020
					Accumulated
	Securities		Fair Value		Other
	Available-for-		Municipal		Comprehensive
	Sale		Security Hedges		Income (Loss)
Beginning balance, December 31, 2019	$	391	$	(223)	$	168

Other comprehensive income (loss)		2,265		(1,853)		412
Reclassification of amounts included in net income		12		—		12
Net other comprehensive income (loss) during period		2,277		(1,853)		424

Ending balance, June 30, 2020	$	2,668	$	(2,076)	$	592

Business Combinations (Narrative) (Details) - USD ($) $ / shares in Units, $ in Thousands			3 Months Ended		6 Months Ended
	May 03, 2021	Mar. 01, 2020	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Business Acquisition [Line Items]
Goodwill			$ 76,858		$ 76,858		$ 74,135	$ 65,614
Merger-related costs			372	$ 1,477	475	$ 3,573
Fountain [Member]
Business Acquisition [Line Items]
Cash consideration paid	$ 14,000				59,794
Repayment of indebtedness	45,800
Future cash payments of performance-based earnout	6,000
Pro forma, revenue of acquiree since acquisition date, actual			1,137		1,137
Pro forma information, earnings (loss) since acquisition date, actual			345		345
Pro forma revenue			32,487	30,659	65,780	57,451
Pro forma net income (loss)			8,844	$ 6,434	18,487	$ 9,530
Assets acquired	54,114		57,848		57,848
Liabilities assumed	683		454		454
Goodwill	2,400		2,400		2,400
Merger-related costs			140		140
Fountain [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired	$ 2,700
Useful life	8 years
Progressive Financial Group Inc. [Member]
Business Acquisition [Line Items]
Cash to be paid upon conversion (in dollars per share)		$ 474.82
Common shares to be converted (in shares)		62.3808
Number of shares issued (in shares)		1,292,578
Cash consideration paid		$ 9,800			9,838
Assets acquired		301,041	298,322		298,322
Liabilities assumed		272,052	272,781		272,781
Goodwill		8,800	$ 8,844		$ 8,844
Progressive Financial Group Inc. [Member] \| Core Deposits [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 1,400
Useful life		10 years
Progressive Financial Group Inc. [Member] \| Customer Relationships [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 1,100
Useful life		10 years
Progressive Financial Group Inc. [Member] \| Trade Names [Member]
Business Acquisition [Line Items]
Intangible assets acquired		$ 63
Useful life		5 years

Business Combinations (Allocation of Purchase Price) (Details) - USD ($)			6 Months Ended
	May 03, 2021	Mar. 01, 2020	Jun. 30, 2021	Dec. 31, 2020	Dec. 31, 2019
Consideration transferred:
Goodwill			$ 76,858,000	$ 74,135,000	$ 65,614,000
Fountain [Member]
Assets:
Cash and cash equivalents	$ 413,000		413,000
Leases	54,945,000		54,225,000
Allowance for loan losses	(1,796,000)
Intangibles			2,658,000
Other repossessed assets	319,000		319,000
Other assets	233,000		233,000
Total assets acquired	54,114,000		57,848,000
Liabilities:
Payables and other liabilities	683,000		454,000
Total liabilities assumed	683,000		454,000
Total fair value of net assets acquired	53,431,000		57,394,000
Cash consideration paid	14,000,000.0		59,794,000
Business Combination, Consideration Transferred, Total			59,794,000
Assets:
Leases	(720,000)
Allowance for loan losses	1,796,000
Intangibles	2,658,000
Total assets acquired	3,734,000
Liabilities:
Payables and other liabilities	(229,000)
Total liabilities assumed	(229,000)
Consideration transferred:
Aggregate fair value adjustments	3,963,000
Goodwill	$ 2,400,000		2,400,000
Progressive Financial Group Inc. [Member]
Assets:
Cash and cash equivalents		$ 55,971,000	55,971,000
Investment securities available-for-sale		27,054,000	27,257,000
Restricted investments		692,000	692,000
Loans		191,672,000	187,981,000
Allowance for loan losses		(2,832,000)
Premises and equipment		15,681,000	12,762,000
Bank owned life insurance		5,560,000	5,560,000
Deferred tax asset, net			1,006,000
Intangibles			2,497,000
Other real estate owned		3,695,000	1,733,000
Interest Receivable		1,061,000	781,000
Prepaids		375,000	201,000
Goodwill		231,000
Other assets		1,881,000	1,881,000
Total assets acquired		301,041,000	298,322,000
Liabilities:
Deposits		271,276,000	271,276,000
Time deposit premium			729,000
Payables and other liabilities		776,000	776,000
Total liabilities assumed		272,052,000	272,781,000
Total fair value of net assets acquired		28,989,000	25,541,000
Cash consideration paid		9,800,000	9,838,000
Common stock issued		$ 1,292,578	24,547,000
Number of shares issued (in shares)		1,292,578
Business Combination, Consideration Transferred, Total			34,385,000
Assets:
Investment securities available-for-sale		$ 203,000
Loans		(3,691,000)
Allowance for loan losses		2,832,000
Premises and equipment, net		(2,919,000)
Deferred tax asset, net		813,000	193,000
Intangibles		1,370,000	1,127,000
Other real estate owned		(100,000)	(1,862,000)
Interest Receivable		(280,000)
Prepaids		(174,000)
Goodwill		(231,000)
Total assets acquired		(2,177,000)	(542,000)
Liabilities:
Time deposit premium		729,000
Total liabilities assumed		729,000
Consideration transferred:
Aggregate fair value adjustments		(2,906,000)	(542,000)
Goodwill		$ 8,800,000	$ 8,844,000

Business Combinations (Loans Acquired) (Details) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands	May 03, 2021	Mar. 01, 2020
Fountain [Member]
Business Acquisition [Line Items]
Contractual principal and interest at acquisition	$ 6,018
Nonaccretable difference	447
Expected cash flows at acquisition	5,571
Accretable yield	649
Basis in PCI loans at acquisition-estimated fair value	$ 4,922
Progressive Financial Group Inc. [Member]
Business Acquisition [Line Items]
Contractual principal and interest at acquisition		$ 21,107
Nonaccretable difference		4,706
Expected cash flows at acquisition		16,401
Accretable yield		2,515
Basis in PCI loans at acquisition-estimated fair value		$ 13,886

Business Combinations (Pro Forma Information) (Details) - Fountain [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Business Acquisition [Line Items]
Pro forma, revenue of acquiree since acquisition date, actual	$ 1,137		$ 1,137
Pro forma revenue	32,487	$ 30,659	65,780	$ 57,451
Pro forma information, earnings (loss) since acquisition date, actual	345		345
Pro forma net income (loss)	$ 8,844	$ 6,434	$ 18,487	$ 9,530

Earnings per Share (Narrative) (Details) - shares	3 Months Ended		6 Months Ended
Earnings per Share (Narrative) (Details) - shares	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Earnings Per Share [Abstract]
Anti-dilutive securities excluded from computation of earnings per share (in shares)	0	116,000	0	85,000

Earnings per Share (Schedule of Earnings Per Share, Basic and Diluted) (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Basic earnings per share computation:
Net income available to common shareholders	$ 8,778	$ 6,174	$ 18,534	$ 8,907
Average common shares outstanding - basic (in shares)	15,003,657	15,152,768	15,007,593	14,773,935
Basic earnings per share (in dollars per share)	$ 0.59	$ 0.41	$ 1.24	$ 0.60
Diluted earnings per share computation:
Net income available to common shareholders	$ 8,778	$ 6,174	$ 18,534	$ 8,907
Average common shares outstanding - basic (in shares)	15,003,657	15,152,768	15,007,593	14,773,935
Incremental shares from assumed conversions:
Stock options and restricted stock (in shares)	122,527	49,567	111,331	68,551
Average common shares outstanding - diluted	15,126,184	15,202,335	15,118,924	14,842,486
Diluted earnings per share (in dollars per share)	$ 0.58	$ 0.41	$ 1.23	$ 0.60

Securities (Narrative) (Details) - USD ($)	6 Months Ended
Securities (Narrative) (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Loans and Leases Receivable Disclosure [Line Items]
Impairment on other investments	$ 0
Collateral Pledged [Member]
Loans and Leases Receivable Disclosure [Line Items]
Available-for-sale securities pledged as collateral	$ 122,400,000	$ 80,200,000

Securities (Schedule of Available-for-sale Securities Reconciliation) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Total	$ 248,053	$ 211,614
Gross Unrealized Gains	4,051	4,221
Gross Unrealized Losses	(1,287)	(201)
Fair Value	250,817	215,634
US Treasury Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total	6,381
Gross Unrealized Gains	57
Fair Value	6,438
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total	73,503	30,526
Gross Unrealized Gains	191	10
Gross Unrealized Losses	(1,074)	(6)
Fair Value	72,620	30,530
Municipal securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total	86,720	89,644
Gross Unrealized Gains	2,188	2,345
Fair Value	88,908	91,989
Other Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Total	29,019	25,019
Gross Unrealized Gains	414	112
Gross Unrealized Losses	(82)	(13)
Fair Value	29,351	25,118
Mortgage-backed securities (GSEs) [Member]
Debt Securities, Available-for-sale [Line Items]
Total	52,430	66,425
Gross Unrealized Gains	1,201	1,754
Gross Unrealized Losses	(131)	(182)
Fair Value	$ 53,500	$ 67,997

Securities (Proceeds from sale of securities available for sale, gains losses and proceeds from redemption) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Investments, Debt and Equity Securities [Abstract]
Proceeds from sales of securities available-for-sale		$ 4,760		$ 6,875
Gross gains		16		16
Proceeds from maturities and calls	$ 2,178	$ 12,200	$ 11,275	$ 15,450

Securities (Investments Classified by Contractual Maturity Date) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Amortized Cost
Due in one year or less	$ 5,025
Due from one year to five years	4,039
Due from five years to ten years	66,493
Due after ten years	120,066
Securities available for sale, amortized cost	195,623
Total	248,053	$ 211,614
Fair Value
Due in one year or less	5,041
Due from one year to five years	4,058
Due from five years to ten years	67,152
Due after ten years	121,066
Securities available for sale, fair value	197,317
Total	250,817	$ 215,634
Mortgage-backed securities [Member]
Amortized Cost
Mortgage-backed securities	52,430
Fair Value
Mortgage-backed securities	$ 53,500

Securities (Schedule of Unrealized Loss on Investments) (Details) $ in Thousands	Jun. 30, 2021 USD ($) security	Dec. 31, 2020 USD ($) security
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Fair Value	$ 46,815	$ 26,795
Less than 12 Months, Gross Unrealized Losses	$ (1,153)	$ (97)
Available-for-sale, less than 12 months, number of securities \| security	15	10
Available-for-sale, fair value, 12 months or greater	$ 10,703	$ 7,192
12 Months or Greater, Gross Unrealized Losses	$ (134)	$ (104)
Available-for-sale, 12 months or greater, number of securities \| security	9	5
Total, Fair Value	$ 57,518	$ 33,987
Total, Gross Unrealized Losses	$ (1,287)	$ (201)
Available-for-sale, total, number of securities \| security	24	15
US Government-sponsored Enterprises Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Fair Value	$ 35,861	$ 15,510
Less than 12 Months, Gross Unrealized Losses	$ (1,071)	$ (5)
Available-for-sale, less than 12 months, number of securities \| security	9	3
Available-for-sale, fair value, 12 months or greater	$ 841	$ 132
12 Months or Greater, Gross Unrealized Losses	$ (3)	$ (1)
Available-for-sale, 12 months or greater, number of securities \| security	3	1
Total, Fair Value	$ 36,702	$ 15,642
Total, Gross Unrealized Losses	$ (1,074)	$ (6)
Available-for-sale, total, number of securities \| security	12	4
Other Debt Securities [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Fair Value	$ 10,918	$ 1,495
Less than 12 Months, Gross Unrealized Losses	$ (82)	$ (5)
Available-for-sale, less than 12 months, number of securities \| security	5	1
Available-for-sale, fair value, 12 months or greater		$ 977
12 Months or Greater, Gross Unrealized Losses		$ (8)
Available-for-sale, 12 months or greater, number of securities \| security		1
Total, Fair Value	$ 10,918	$ 2,472
Total, Gross Unrealized Losses	$ (82)	$ (13)
Available-for-sale, total, number of securities \| security	5	2
Mortgage-backed securities (GSEs) [Member]
Debt Securities, Available-for-sale [Line Items]
Less than 12 Months, Fair Value	$ 36	$ 9,790
Less than 12 Months, Gross Unrealized Losses		$ (87)
Available-for-sale, less than 12 months, number of securities \| security	1	6
Available-for-sale, fair value, 12 months or greater	$ 9,862	$ 6,083
12 Months or Greater, Gross Unrealized Losses	$ (131)	$ (95)
Available-for-sale, 12 months or greater, number of securities \| security	6	3
Total, Fair Value	$ 9,898	$ 15,873
Total, Gross Unrealized Losses	$ (131)	$ (182)
Available-for-sale, total, number of securities \| security	7	9

Securities (Other Investments) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Securities, Available-for-sale [Line Items]
Other investments	$ 14,584	$ 14,794
Federal Reserve Bank Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Other investments	8,316	8,606
Investment in Federal Home Loan Bank Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Other investments	5,918	5,838
First National Bankers Bank Stock [Member]
Debt Securities, Available-for-sale [Line Items]
Other investments	$ 350	$ 350

Loans and Leases and Allowance for Loan and Lease Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	$ 2,468,318	$ 2,382,243
Less: Allowance for loan and leases losses	(18,310)	(18,346)
Loans and leases, net	2,450,008	2,363,897
Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	30,102	32,064
Less: Allowance for loan and leases losses	(371)	(309)
Loans and leases, net	29,731	31,755
All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	2,438,216	2,350,179
Less: Allowance for loan and leases losses	(17,939)	(18,037)
Loans and leases, net	2,420,277	2,332,142
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	1,162,491	1,012,976
Commercial Real Estate [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	11,371	16,123
Commercial Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	1,151,120	996,853
Consumer Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	444,640	443,930
Consumer Real Estate [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	8,975	10,258
Consumer Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	435,665	433,672
Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	300,704	278,075
Construction and Land Development [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	5,265	5,348
Construction and Land Development [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	295,439	272,727
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	496,114	634,446
Commercial and Industrial [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	261	308
Commercial and Industrial [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	495,853	634,138
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	11,331	12,816
Consumer and Other [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	16	27
Consumer and Other [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	11,315	$ 12,789
Leases Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	53,038
Leases Portfolio Segment [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	4,214
Leases Portfolio Segment [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and leases	$ 48,824

Loans and Leases and Allowance for Loan and Lease Losses - Narrative (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021 USD ($) loan property	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) loan segment property	Jun. 30, 2020 USD ($) loan	Dec. 31, 2020 USD ($) loan
Financing Receivable, Modifications [Line Items]
Loan portfolio segments \| segment			6
Number of contracts \| loan			0	1
Number of loans modified as troubled debt restructurings with subsequent default \| loan			0
Provision (recovery) charged to expense	$ (5)	$ 2,850	$ 62	$ 6,049
Allowance for loan losses	$ 18,310		$ 18,310		$ 18,346
Percentage of allowance for credit losses to aggregate loans	0.74%		0.74%		0.77%
Consumer Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of loans modified as troubled debt restructurings with subsequent default \| loan			2
Number of properties in other real estate owned \| property	1		1
Provision (recovery) charged to expense	$ 69	$ 1	$ (109)	$ 722
Mortgage loans in process of foreclosure	103		103
Trouble Debt Restructuring [Member]
Financing Receivable, Modifications [Line Items]
Troubled debt restructuring	$ 219		$ 219		$ 257
Number of contracts, nonaccrual \| loan	0		0		0
COVID-19 [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts \| loan			0
Number of loans related to payroll protection program \| loan	2,015		2,015		2,863
Payroll Protection Program Loans Outstanding	$ 178,900		$ 178,900		$ 288,900
Financing Receivable Paycheck Protection Program Cares Act For 2020 Loans [Member]
Financing Receivable, Modifications [Line Items]
Payroll protection program loans net deferred fees receivable	131		131		$ 4,200
Financing Receivable Paycheck Protection Program Cares Act For 2021 Loans [Member]
Financing Receivable, Modifications [Line Items]
Payroll protection program loans net deferred fees receivable	$ 6,500		$ 6,500

Loans and Leases and Allowance for Loan and Lease Losses - Performing and Impaired Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 2,468,318	$ 2,382,243
All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,438,216	2,350,179
Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	30,102	32,064
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,162,491	1,012,976
Commercial Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,151,120	996,853
Commercial Real Estate [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	11,371	16,123
Consumer Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	444,640	443,930
Consumer Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	435,665	433,672
Consumer Real Estate [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	8,975	10,258
Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	300,704	278,075
Construction and Land Development [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	295,439	272,727
Construction and Land Development [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	5,265	5,348
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	496,114	634,446
Commercial and Industrial [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	495,853	634,138
Commercial and Industrial [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	261	308
Leases Portfolio Segment [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	53,038
Leases Portfolio Segment [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	48,824
Leases Portfolio Segment [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	4,214
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	11,331	12,816
Consumer and Other [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	11,315	12,789
Consumer and Other [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	16	27
Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,434,702	2,344,846
Performing [Member] \| Commercial Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	1,150,261	992,982
Performing [Member] \| Consumer Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	433,218	432,356
Performing [Member] \| Construction and Land Development [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	295,439	272,727
Performing [Member] \| Commercial and Industrial [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	495,645	633,992
Performing [Member] \| Leases Portfolio Segment [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	48,824
Performing [Member] \| Consumer and Other [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	11,315	12,789
Impaired Loans [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	3,514	5,333
Impaired Loans [Member] \| Commercial Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	859	3,871
Impaired Loans [Member] \| Consumer Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	2,447	1,316
Impaired Loans [Member] \| Commercial and Industrial [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total loans	$ 208	$ 146

Loans and Leases and Allowance for Loan and Lease Losses - ALL by Loan Classification (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	$ 18,310	$ 18,370	$ 18,346	$ 16,254	$ 13,431	$ 10,243
All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	17,939		18,037
Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	371		309
Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	17,243		17,800
Impaired Loans [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	696		237
Commercial Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	8,382	7,636	7,579	6,595	5,963	4,508
Commercial Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	8,382		7,579
Commercial Real Estate [Member] \| Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	7,965		7,579
Commercial Real Estate [Member] \| Impaired Loans [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	417
Consumer Real Estate [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	3,323	3,309	3,471	3,313	3,301	2,576
Consumer Real Estate [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	3,167		3,383
Consumer Real Estate [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	156		88
Consumer Real Estate [Member] \| Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	3,096		3,267
Consumer Real Estate [Member] \| Impaired Loans [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	71		116
Construction and Land Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	2,061	1,968	2,076	1,795	1,484	1,127
Construction and Land Development [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	2,061		2,076
Construction and Land Development [Member] \| Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	2,061		2,076
Commercial and Industrial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	4,442	5,347	5,107	4,443	2,557	1,957
Commercial and Industrial [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	4,229		4,889
Commercial and Industrial [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	213		218
Commercial and Industrial [Member] \| Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	4,021		4,768
Commercial and Industrial [Member] \| Impaired Loans [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	208		121
Consumer and Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	102	$ 110	113	$ 108	$ 126	$ 75
Consumer and Other [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	100		110
Consumer and Other [Member] \| Purchased Credit Impaired Loans [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	2		3
Consumer and Other [Member] \| Performing [Member] \| All Other Loans and leases [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Allowance for loan and lease losses	$ 100		$ 110

Loans and Leases and Allowance for Loan and Lease Losses - ALL Roll Forward (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	$ 18,370	$ 13,431	$ 18,346	$ 10,243
Charged off loans	(153)	(75)	(273)	(161)
Recoveries of charge-offs	98	48	175	123
Provision (recovery) charged to expense	(5)	2,850	62	6,049
Ending balance	18,310	16,254	18,310	16,254
Commercial Real Estate [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	7,636	5,963	7,579	4,508
Recoveries of charge-offs	3	3	6	5
Provision (recovery) charged to expense	743	629	797	2,082
Ending balance	8,382	6,595	8,382	6,595
Consumer Real Estate [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	3,309	3,301	3,471	2,576
Charged off loans	(60)		(60)	(2)
Recoveries of charge-offs	5	11	21	17
Provision (recovery) charged to expense	69	1	(109)	722
Ending balance	3,323	3,313	3,323	3,313
Construction and Land Development [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	1,968	1,484	2,076	1,127
Recoveries of charge-offs				2
Provision (recovery) charged to expense	93	311	(15)	666
Ending balance	2,061	1,795	2,061	1,795
Commercial and Industrial [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	5,347	2,557	5,107	1,957
Charged off loans	(4)	(9)	(4)	(17)
Recoveries of charge-offs	7	6	10	49
Provision (recovery) charged to expense	(908)	1,889	(671)	2,454
Ending balance	4,442	4,443	4,442	4,443
Consumer and Other [Member]
Allowance for Loan and Lease Losses [Roll Forward]
Beginning balance	110	126	113	75
Charged off loans	(89)	(66)	(209)	(142)
Recoveries of charge-offs	83	28	138	50
Provision (recovery) charged to expense	(2)	20	60	125
Ending balance	$ 102	$ 108	$ 102	$ 108

Loans and Leases and Allowance for Loan and Lease Losses - Loan Risk Rating (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 2,468,318	$ 2,382,243
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,162,491	1,012,976
Consumer Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	444,640	443,930
Construction and Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	300,704	278,075
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	496,114	634,446
Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	53,038
Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,331	12,816
All Other Loans and leases [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,438,216	2,350,179
All Other Loans and leases [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,385,529	2,247,263
All Other Loans and leases [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	44,093	91,611
All Other Loans and leases [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,194	4,812
All Other Loans and leases [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,355	6,359
All Other Loans and leases [Member] \| Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	45	134
All Other Loans and leases [Member] \| Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,151,120	996,853
All Other Loans and leases [Member] \| Commercial Real Estate [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,109,079	922,153
All Other Loans and leases [Member] \| Commercial Real Estate [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	37,077	66,287
All Other Loans and leases [Member] \| Commercial Real Estate [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,881	4,446
All Other Loans and leases [Member] \| Commercial Real Estate [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,083	3,967
All Other Loans and leases [Member] \| Consumer Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	435,665	433,672
All Other Loans and leases [Member] \| Consumer Real Estate [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	431,122	417,302
All Other Loans and leases [Member] \| Consumer Real Estate [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,637	14,218
All Other Loans and leases [Member] \| Consumer Real Estate [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	42	46
All Other Loans and leases [Member] \| Consumer Real Estate [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,864	2,020
All Other Loans and leases [Member] \| Consumer Real Estate [Member] \| Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans		86
All Other Loans and leases [Member] \| Construction and Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	295,439	272,727
All Other Loans and leases [Member] \| Construction and Land Development [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	295,119	269,350
All Other Loans and leases [Member] \| Construction and Land Development [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	243	3,296
All Other Loans and leases [Member] \| Construction and Land Development [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	77	81
All Other Loans and leases [Member] \| Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	495,853	634,138
All Other Loans and leases [Member] \| Commercial and Industrial [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	490,144	625,836
All Other Loans and leases [Member] \| Commercial and Industrial [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,087	7,673
All Other Loans and leases [Member] \| Commercial and Industrial [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	271	320
All Other Loans and leases [Member] \| Commercial and Industrial [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	306	261
All Other Loans and leases [Member] \| Commercial and Industrial [Member] \| Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	45	48
All Other Loans and leases [Member] \| Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	48,824
All Other Loans and leases [Member] \| Leases Portfolio Segment [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	48,824
All Other Loans and leases [Member] \| Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,315	12,789
All Other Loans and leases [Member] \| Consumer and Other [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,241	12,622
All Other Loans and leases [Member] \| Consumer and Other [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	49	137
All Other Loans and leases [Member] \| Consumer and Other [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	25	30
Purchased Credit Impaired Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	30,102	32,064
Purchased Credit Impaired Loans [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	22,078	20,749
Purchased Credit Impaired Loans [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,254	7,427
Purchased Credit Impaired Loans [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	74	76
Purchased Credit Impaired Loans [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	2,696	3,812
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	11,371	16,123
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,699	11,072
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,570	3,381
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	17	19
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,085	1,651
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	8,975	10,258
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	7,593	8,382
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	234	224
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member] \| Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	57	57
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,091	1,595
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	5,265	5,348
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	1,342	1,008
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	3,449	3,820
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	474	520
Purchased Credit Impaired Loans [Member] \| Commercial and Industrial [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	261	308
Purchased Credit Impaired Loans [Member] \| Commercial and Industrial [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	215	262
Purchased Credit Impaired Loans [Member] \| Commercial and Industrial [Member] \| Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	46	46
Purchased Credit Impaired Loans [Member] \| Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,214
Purchased Credit Impaired Loans [Member] \| Leases Portfolio Segment [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	4,214
Purchased Credit Impaired Loans [Member] \| Consumer and Other [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	16	27
Purchased Credit Impaired Loans [Member] \| Consumer and Other [Member] \| Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	15	25
Purchased Credit Impaired Loans [Member] \| Consumer and Other [Member] \| Watch [Member]
Financing Receivable, Recorded Investment [Line Items]
Total loans	$ 1	$ 2

Loans and Leases and Allowance for Loan and Lease Losses - Past Due Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual restructured loans	$ 3,694	$ 5,633
Total Past Due	6,004	8,235
Total loans	2,468,318	2,382,243
Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	2,432,212	2,341,944
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	1,895	2,321
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	351	132
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	64	149
Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual restructured loans	859	3,740
Total Past Due	859	3,941
Total loans	1,162,491	1,012,976
Commercial Real Estate [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	1,150,261	992,912
Commercial Real Estate [Member] \| Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans		134
Commercial Real Estate [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans		67
Consumer Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual restructured loans	2,676	1,823
Total Past Due	2,947	3,872
Total loans	444,640	443,930
Consumer Real Estate [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	432,718	429,800
Consumer Real Estate [Member] \| Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	258	1,916
Consumer Real Estate [Member] \| Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	13	51
Consumer Real Estate [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans		82
Construction and Land Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual restructured loans		12
Total Past Due	95	257
Total loans	300,704	278,075
Construction and Land Development [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	295,344	272,470
Construction and Land Development [Member] \| Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	95	245
Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual restructured loans	138	36
Total Past Due	1,844	124
Total loans	496,114	634,446
Commercial and Industrial [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	494,009	634,014
Commercial and Industrial [Member] \| Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	1,346	12
Commercial and Industrial [Member] \| Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	296	76
Commercial and Industrial [Member] \| Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	64
Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	85
Total loans	53,038
Leases Portfolio Segment [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	48,739
Leases Portfolio Segment [Member] \| Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	45
Leases Portfolio Segment [Member] \| Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	40
Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Nonaccrual restructured loans	21	22
Total Past Due	174	41
Total loans	11,331	12,816
Consumer and Other [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	11,141	12,748
Consumer and Other [Member] \| Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	151	14
Consumer and Other [Member] \| Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	2	5
Purchased Credit Impaired Loans [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	30,102	32,064
Purchased Credit Impaired Loans [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	30,102	32,064
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	11,371	16,123
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	11,371	16,123
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	8,975	10,258
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	8,975	10,258
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	5,265	5,348
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	5,265	5,348
Purchased Credit Impaired Loans [Member] \| Commercial and Industrial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	261	308
Purchased Credit Impaired Loans [Member] \| Commercial and Industrial [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	261	308
Purchased Credit Impaired Loans [Member] \| Leases Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	4,214
Purchased Credit Impaired Loans [Member] \| Leases Portfolio Segment [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	4,214
Purchased Credit Impaired Loans [Member] \| Consumer and Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans	16	27
Purchased Credit Impaired Loans [Member] \| Consumer and Other [Member] \| Financial Asset, Not Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Accruing and Current Loans	$ 16	$ 27

Loans and Leases and Allowance for Loan and Lease Losses - Impaired Loan Portfolio (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Related Allowance	$ 1,067		$ 1,067		$ 546
Total impaired loans, Recorded Investment	4,990		4,990		7,451
Total impaired loans, Unpaid Principal Balance	5,093		5,093		7,674
Impaired loans with a valuation allowance, Average Recorded Investment			1,875	$ 1,304
Impaired loans with a valuation allowance, Interest Income Recognized			117	21
Total impaired loans, Average Recorded Investment	6,018	$ 4,797	6,309	4,586
Total impaired loans, Interest Income Recognized	38	60	183	82
All Other Loans and leases [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, Recorded Investment	2,186		2,186		4,759
Impaired loans without a valuation allowance, Unpaid Principal Balance	2,187		2,187		4,760
Impaired loans with a valuation allowance, Recorded Investment	1,328		1,328		574
Impaired loans with a valuation allowance, Unpaid Principal Balance	1,331		1,331		574
Impaired loans with a valuation allowance, Related Allowance	696		696		237
Impaired loans without a valuation allowance, Average Recorded Investment	2,098	1,282	2,985	1,306
Impaired loans without a valuation allowance, Interest Income Recognized	8	11	21	18
Impaired loans with a valuation allowance, Average Recorded Investment	2,526	1,381
Impaired loans with a valuation allowance, Interest Income Recognized	8	8
All Other Loans and leases [Member] \| Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, Recorded Investment					3,871
Impaired loans without a valuation allowance, Unpaid Principal Balance					3,872
Impaired loans with a valuation allowance, Recorded Investment	859		859
Impaired loans with a valuation allowance, Unpaid Principal Balance	859		859
Impaired loans with a valuation allowance, Related Allowance	417		417
Impaired loans without a valuation allowance, Average Recorded Investment	65	345	1,334	315
Impaired loans without a valuation allowance, Interest Income Recognized		1	1	4
Impaired loans with a valuation allowance, Average Recorded Investment	2,007	396	1,338	264
Impaired loans with a valuation allowance, Interest Income Recognized	2		104	2
All Other Loans and leases [Member] \| Consumer Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, Recorded Investment	2,186		2,186		888
Impaired loans without a valuation allowance, Unpaid Principal Balance	2,187		2,187		888
Impaired loans with a valuation allowance, Recorded Investment	261		261		428
Impaired loans with a valuation allowance, Unpaid Principal Balance	264		264		428
Impaired loans with a valuation allowance, Related Allowance	71		71		116
Impaired loans without a valuation allowance, Average Recorded Investment	2,033	633	1,651	606
Impaired loans without a valuation allowance, Interest Income Recognized	8	10	20	14
Impaired loans with a valuation allowance, Average Recorded Investment	360	827	383	882
Impaired loans with a valuation allowance, Interest Income Recognized	3	5	8	14
All Other Loans and leases [Member] \| Construction and Land Development [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans without a valuation allowance, Average Recorded Investment		304		385
All Other Loans and leases [Member] \| Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Recorded Investment	208		208		146
Impaired loans with a valuation allowance, Unpaid Principal Balance	208		208		146
Impaired loans with a valuation allowance, Related Allowance	208		208		121
Impaired loans with a valuation allowance, Average Recorded Investment	159	158	154	158
Impaired loans with a valuation allowance, Interest Income Recognized	3	3	5	5
Purchased Credit Impaired Loans [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Recorded Investment	1,476		1,476		2,118
Impaired loans with a valuation allowance, Unpaid Principal Balance	1,575		1,575		2,340
Impaired loans with a valuation allowance, Related Allowance	371		371		309
Impaired loans with a valuation allowance, Average Recorded Investment	1,394	2,134	1,449	1,976
Impaired loans with a valuation allowance, Interest Income Recognized	22	41	45	43
Purchased Credit Impaired Loans [Member] \| Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Average Recorded Investment		490		333
Impaired loans with a valuation allowance, Interest Income Recognized				1
Purchased Credit Impaired Loans [Member] \| Consumer Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Recorded Investment	1,201		1,201		1,827
Impaired loans with a valuation allowance, Unpaid Principal Balance	1,332		1,332		2,086
Impaired loans with a valuation allowance, Related Allowance	156		156		88
Impaired loans with a valuation allowance, Average Recorded Investment	1,115	1,168	1,165	1,174
Impaired loans with a valuation allowance, Interest Income Recognized	21	38	43	39
Purchased Credit Impaired Loans [Member] \| Construction and Land Development [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Average Recorded Investment		116		77
Purchased Credit Impaired Loans [Member] \| Commercial and Industrial [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Recorded Investment	261		261		270
Impaired loans with a valuation allowance, Unpaid Principal Balance	231		231		234
Impaired loans with a valuation allowance, Related Allowance	213		213		218
Impaired loans with a valuation allowance, Average Recorded Investment	263	338	266	361
Impaired loans with a valuation allowance, Interest Income Recognized	1	3	2	3
Purchased Credit Impaired Loans [Member] \| Consumer and Other [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with a valuation allowance, Recorded Investment	14		14		21
Impaired loans with a valuation allowance, Unpaid Principal Balance	12		12		20
Impaired loans with a valuation allowance, Related Allowance	2		2		$ 3
Impaired loans with a valuation allowance, Average Recorded Investment	$ 16	$ 22	$ 18	$ 31

Loans and Leases and Allowance for Loan and Lease Losses - Purchased Credit Impaired Loans (Details) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	$ 41,666	$ 44,973
Less remaining purchase discount	(11,564)	(12,909)
Total loans, net of purchase discount	30,102	32,064
Less: Allowance for loan losses	(371)	(309)
Carrying amount, net of allowance	29,731	31,755
Commercial Real Estate [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	18,456	23,787
Consumer Real Estate [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	11,342	12,692
Construction and Land Development [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	858	1,812
Commercial and Industrial [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	6,313	6,521
Leases Portfolio Segment [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	4,603
Consumer and Other [Member]
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period [Line Items]
Total loans	$ 94	$ 161

Loans and Leases and Allowance for Loan and Lease Losses - Accretable Yield Roll Forward (Details) - Purchased Credit Impaired Loans [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward]
Accretable yield, beginning of period	$ 14,705	$ 10,979	$ 16,889	$ 8,454
Additions	649		649	2,515
Accretion income	(1,098)	(1,057)	(3,029)	(3,134)
Reclassification	1,340	247	1,677	2,163
Other changes, net	(1,074)	1,608	(1,664)	1,779
Accretable yield, end of period	$ 14,522	$ 11,777	$ 14,522	$ 11,777

Goodwill and Intangible Assets (Narrative) (Details) - USD ($)	3 Months Ended		6 Months Ended		12 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020	Dec. 31, 2020	Dec. 31, 2019
Goodwill, impairment loss					$ 0
Amortization of intangibles	$ 441,000	$ 405,000	$ 886,000	$ 767,000
Goodwill	76,858,000		76,858,000		$ 74,135,000	$ 65,614,000
Other Intangible Assets [Member]
Amortization of intangibles	$ 441,000	$ 405,000	$ 886,000	$ 767,000
Customer Relationships [Member]
Intangible asset, useful life			8 years 7 months 6 days
Trade Names [Member]
Intangible asset, useful life			5 years

Goodwill and Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands		6 Months Ended	12 Months Ended
	Mar. 01, 2020	Jun. 30, 2021	Dec. 31, 2020
Goodwill [Roll Forward]
Goodwill, Beginning Balance		$ 74,135	$ 65,614
Goodwill, Ending Balance		76,858	74,135
Fountain Leasing Limited Liability Company [Member]
Goodwill [Roll Forward]
Acquisition of business		2,400
Progressive Financial Group Inc. [Member]
Goodwill [Roll Forward]
Adjustment to values initially recorded for acquisitions	$ (231)
Acquisition of business		323	$ 8,521
Goodwill, Ending Balance	$ 8,800	$ 8,844

Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period	$ 17,047	$ 14,550
Balance, gross core deposit intangible	19,705	17,047
Finite Lived Intangible Assets Accumulated Amortization [Abstract]
Gross Carrying Amount	19,705	17,047
Less: accumulated amortization	(5,597)	(4,711)
Total	14,108	12,336
Progressive Financial Group Inc. [Member]
Finite-lived Intangible Assets [Roll Forward]
Acquisition of business		2,497
Fountain Leasing Limited Liability Company [Member]
Finite-lived Intangible Assets [Roll Forward]
Acquisition of business	2,658
Core Deposits [Member]
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period	15,920	14,550
Balance, gross core deposit intangible	15,920	15,920
Finite Lived Intangible Assets Accumulated Amortization [Abstract]
Gross Carrying Amount	15,920	15,920
Less: accumulated amortization	(5,330)	(4,540)
Total	10,590	11,380
Core Deposits [Member] \| Progressive Financial Group Inc. [Member]
Finite-lived Intangible Assets [Roll Forward]
Acquisition of business		1,370
Customer Relationships [Member]
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period	1,064
Balance, gross core deposit intangible	3,722	1,064
Finite Lived Intangible Assets Accumulated Amortization [Abstract]
Gross Carrying Amount	3,722	1,064
Less: accumulated amortization	(250)	(161)
Total	3,472	903
Customer Relationships [Member] \| Progressive Financial Group Inc. [Member]
Finite-lived Intangible Assets [Roll Forward]
Acquisition of business		1,064
Customer Relationships [Member] \| Fountain Leasing Limited Liability Company [Member]
Finite-lived Intangible Assets [Roll Forward]
Acquisition of business	2,658
Trade Names [Member]
Finite-lived Intangible Assets [Roll Forward]
Balance, beginning of period	63
Balance, gross core deposit intangible	63	63
Finite Lived Intangible Assets Accumulated Amortization [Abstract]
Gross Carrying Amount	63	63
Less: accumulated amortization	(17)	(10)
Total	$ 46	53
Trade Names [Member] \| Progressive Financial Group Inc. [Member]
Finite-lived Intangible Assets [Roll Forward]
Acquisition of business		$ 63

Goodwill and Intangible Assets - Schedule of Finite-Lived Intangible Assets, Future Amortization Expense (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Goodwill and Intangible Assets Disclosure [Abstract]
Remainder of 2021	$ 1,270
2022	2,238
2023	2,103
2024	1,981
2025	1,850
Thereafter	4,666
Total	$ 14,108	$ 12,336

Borrowings, Line of Credit and Subordinated Debt - Additional Information (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Debt Instrument [Line Items]
Borrowings	$ 78,800	$ 81,200
Other borrowings		396
Securities sold under agreements to repurchase	3,834	5,803
Carrying value of securities pledged as collateral	5,600	$ 7,600
Revolving Credit Facility [Member]
Debt Instrument [Line Items]
Line of credit facility, maximum borrowing capacity	25,000
Outstanding borrowings	$ 0

- Definition

The carrying value as of the balance sheet date of the current and noncurrent portions of long-term obligations drawn from a line of credit, which is a bank's commitment to make loans up to a specific amount. Examples of items that might be included in the application of this element may consist of letters of credit, standby letters of credit, and revolving credit arrangements, under which borrowings can be made up to a maximum amount as of any point in time conditional on satisfaction of specified terms before, as of and after the date of drawdowns on the line. Includes short-term obligations that would normally be classified as current liabilities but for which (a) postbalance sheet date issuance of a long term obligation to refinance the short term obligation on a long term basis, or (b) the enterprise has entered into a financing agreement that clearly permits the enterprise to refinance the short-term obligation on a long term basis and the following conditions are met (1) the agreement does not expire within 1 year and is not cancelable by the lender except for violation of an objectively determinable provision, (2) no violation exists at the BS date, and (3) the lender has entered into the financing agreement is expected to be financially capable of honoring the agreement.

+ References + Details

- Definition

Amount, after unamortized (discount) premium and debt issuance costs, of long-term debt. Includes, but not limited to, notes payable, bonds payable, debentures, mortgage loans and commercial paper. Excludes capital lease obligations.

+ References + Details

Borrowings, Line of Credit and Subordinated Debt - Schedule of debt (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Borrowings, Line of Credit and Subordinated Debt [Abstract]
Securities sold under agreements to repurchase	$ 3,834	$ 5,803
Long-term federal home loan bank advances	75,000	75,000
Other Borrowings		396
Total	$ 78,834	$ 81,199

Borrowings, Line of Credit and Subordinated Debt - Subordinated debt (Details) - Subordinated Debt [Member] - USD ($) $ in Thousands	3 Months Ended	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Jun. 30, 2021	Dec. 31, 2020	Sep. 28, 2018
Debt Instrument [Line Items]
Principal amount				$ 40,000
Interest rate				5.625%
Debt issuance costs	$ 612	$ 612	$ 654	$ 842
Amortization expense of debt issuance costs	$ 21	$ 42
London Interbank Offered Rate (LIBOR) [Member]
Debt Instrument [Line Items]
Basis spread on variable rate (as a percent)			2.55%

Employee Benefit Plans (Narrative) (Details) $ in Thousands	3 Months Ended		6 Months Ended
Employee Benefit Plans (Narrative) (Details) $ in Thousands	Jun. 30, 2021 USD ($) shares	Jun. 30, 2020 USD ($)	Jun. 30, 2021 USD ($) plan shares	Jun. 30, 2020 USD ($) shares
Defined Benefit Plan Disclosure [Line Items]
Contribution to the Plan	$ 350	$ 307	$ 638	$ 558
Number of stock option plans \| plan			1
Deferred tax expense from stock options exercised		2
Deferred tax benefit from stock options exercised	8		$ 9	$ 22
Unrecognized compensation cost	0		$ 0
Shares vested (in shares) \| shares			0	0
Stock Options [Member]
Defined Benefit Plan Disclosure [Line Items]
Options, exercises in period, intrinsic value	27	2	$ 220	$ 66
Options, outstanding, intrinsic value	1,100		1,100
Proceeds from options exercised			194
Stock Appreciation Rights (SARs) [Member]
Defined Benefit Plan Disclosure [Line Items]
Share-based compensation expense	64	92	$ 113
Share-based compensation income				(26)
Granted (in shares) \| shares			22,000
Restricted Stock [Member]
Defined Benefit Plan Disclosure [Line Items]
Share-based compensation expense	162	$ 113	$ 363	$ 223
Unrecognized compensation cost	$ 1,700		$ 1,700
Unrecognized compensation costs, period for recognition			2 years 11 months 26 days
Grant-date fair value			$ 133
Vested (in shares) \| shares			5,985
2015 Stock Incentive Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Rights issued (in shares) \| shares			18,811
Rights available for grant (in shares) \| shares	1,832,427		1,832,427
Cornerstone Bancshares, Inc. Long-Term Incentive Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Rights issued (in shares) \| shares			19,250
Cornerstone Non-Qualified Plan Options [Member]
Defined Benefit Plan Disclosure [Line Items]
Rights issued (in shares) \| shares			40,250
Capstone Stock Option Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Rights issued (in shares) \| shares			2,266
401 (k) Matching Range One [Member] \| Deferred Salary Reduction Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution, percent of match			100.00%
Employer matching contribution, percent of employees gross pay			3.00%
401 (k) Matching Range Two [Member] \| Deferred Salary Reduction Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Employer matching contribution, percent of match			50.00%
Employer matching contribution, percent of employees gross pay			2.00%

Employee Benefit Plans - Stock Option Activity (Details) - Officer and Employee Plans [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Number
Outstanding (in shares) \| shares	99,617
Exercised (in shares) \| shares	(19,040)
Outstanding (in shares) \| shares	80,577
Weighted Average Exercisable Price
Weighted Average Exercisable Price, Outstanding (in dollars per share) \| $ / shares	$ 10.19
Weighted Average Exercisable Price Exercised (in dollars per share) \| $ / shares	10.18
Weighted Average Exercise Price, Outstanding (in dollars per share) \| $ / shares	$ 10.19

Employee Benefit Plans (Options Outstanding by Exercise Price Range) (Details) - Officer and Employee Plans [Member] - $ / shares	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 10.19	$ 10.19
Number Outstanding (in shares)	80,577	99,617
Options Outstanding, Weighted Average Remaining Life	2 years 2 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 10.19
Exercisable (in shares)	80,577
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 10.19
6.60 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 6.60
Number Outstanding (in shares)	19,250
Options Outstanding, Weighted Average Remaining Life	8 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 6.60
Exercisable (in shares)	19,250
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 6.60
9.48 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 9.48
Number Outstanding (in shares)	18,000
Options Outstanding, Weighted Average Remaining Life	1 year 8 months 12 days
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 9.48
Exercisable (in shares)	18,000
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.48
9.60 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 9.60
Number Outstanding (in shares)	22,250
Options Outstanding, Weighted Average Remaining Life	2 years 6 months
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 9.60
Exercisable (in shares)	22,250
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 9.60
11.76 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 11.76
Number Outstanding (in shares)	2,266
Options Outstanding, Weighted Average Remaining Life	1 year
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 11.76
Exercisable (in shares)	2,266
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 11.76
15.05 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 15.05
Number Outstanding (in shares)	18,811
Options Outstanding, Weighted Average Remaining Life	4 years
Options Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 15.05
Exercisable (in shares)	18,811
Options Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 15.05

Employee Benefit Plans (Schedule of Non-vested Restricted Stock) (Details) - Restricted Stock [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Number
Nonvested, beginning of period (in shares) \| shares	100,218
Granted (in shares) \| shares	50,967
Vested (in shares) \| shares	(5,985)
Nonvested, end of period (in shares) \| shares	145,200
Weighted Average Grant-Date Fair Value
Nonvested, beginning balance (in dollars per share) \| $ / shares	$ 19.07
Granted (in dollars per share) \| $ / shares	20.23
Vested (in dollars per share) \| $ / shares	22.29
Nonvested, ending balance (in dollars per share) \| $ / shares	$ 19.34

Employee Benefit Plans - Stock Appreciation Right Activity (Details) - Stock Appreciation Rights (SARs) [Member]	6 Months Ended
	Jun. 30, 2021 $ / shares shares
Number
Outstanding (in shares) \| shares	73,000
Stock awards (in shares) \| shares	22,000
Exercised (in shares) \| shares	(11,500)
Forfeited (in shares) \| shares	(6,000)
Outstanding (in shares) \| shares	77,500
Weighted Average Exercisable Price
Weighted Average Exercisable Price, Outstanding (in dollars per share) \| $ / shares	$ 19.02
Granted (in dollars per share) \| $ / shares	20.70
Weighted Average Exercisable Price Exercised (in dollars per share) \| $ / shares	21.61
Weighted Average Exercisable Price Forfeited (in dollars per share) \| $ / shares	18.00
Weighted Average Exercise Price, Outstanding (in dollars per share) \| $ / shares	$ 19.19

Employee Benefit Plans - SARs Outstanding by Exercise Price Range (Details) - Stock Appreciation Rights (SARs) [Member] - $ / shares	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 19.19	$ 19.02
Number Outstanding (in shares)	77,500	73,000
SARs Outstanding, Weighted Average Remaining Life	1 year 11 months 9 days
SARs Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 19.19
SARs Exercisable, Number Exercisable (in shares)	22,500
SARs Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 21.61
15.19 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 15.19
Number Outstanding (in shares)	16,000
SARs Outstanding, Weighted Average Remaining Life	2 years 6 months
SARs Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 15.19
18.12 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 18.12
Number Outstanding (in shares)	19,000
SARs Outstanding, Weighted Average Remaining Life	1 year 6 months
SARs Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 18.12
20.70 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 20.70
Number Outstanding (in shares)	20,000
SARs Outstanding, Weighted Average Remaining Life	3 years 6 months 4 days
SARs Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 20.70
21.61 [Member]
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items]
Exercise Prices (in dollars per share)	$ 21.61
Number Outstanding (in shares)	22,500
SARs Outstanding, Weighted Average Remaining Life	6 months
SARs Outstanding, Weighted Average Exercise Price (in dollars per share)	$ 21.61
SARs Exercisable, Number Exercisable (in shares)	22,500
SARs Exercisable, Weighted Average Exercise Price (in dollars per share)	$ 21.61

Commitments and Contingencies (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Commitments and Contingencies Disclosure [Abstract]
Commitments to extend credit	$ 640,269	$ 476,841
Standby letters of credit	$ 7,540	$ 5,261

Fair Value Disclosures - Assets and Liabilities Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	$ 250,817	$ 215,634
Fair Value, Assets, Level 1 to Level 2 Transfers, Amount	0
Fair Value, Assets, Level 2 to Level 1 Transfers, Amount	0
Fair Value, Liabilities, Level 1 to Level 2 Transfers, Amount	0
Fair Value, Liabilities, Level 2 to Level 1 Transfers, Amount	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	250,817	215,634
Derivative financial instruments	4,468	6,174
US Treasury Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	6,438
US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	72,620	30,530
Municipal securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	88,908	91,989
Other Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	29,351	25,118
Mortgage-backed securities (GSEs) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	53,500	67,997
Fair Value, Recurring [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	250,817	215,634
Derivative financial instruments	4,468	6,174
Fair Value, Recurring [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	250,817	215,634
Derivative financial instruments	4,468	6,174
Fair Value, Recurring [Member] \| US Treasury Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	6,438
Fair Value, Recurring [Member] \| US Treasury Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	6,438
Fair Value, Recurring [Member] \| US Government-sponsored Enterprises Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	72,620	30,530
Fair Value, Recurring [Member] \| US Government-sponsored Enterprises Debt Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	72,620	30,530
Fair Value, Recurring [Member] \| Municipal securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	88,908	91,989
Fair Value, Recurring [Member] \| Municipal securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	88,908	91,989
Fair Value, Recurring [Member] \| Other Debt Securities [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	29,351	25,118
Fair Value, Recurring [Member] \| Other Debt Securities [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	29,351	25,118
Fair Value, Recurring [Member] \| Mortgage-backed securities (GSEs) [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	53,500	67,997
Fair Value, Recurring [Member] \| Mortgage-backed securities (GSEs) [Member] \| Fair Value, Inputs, Level 2 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Securities available-for-sale, at fair value	$ 53,500	$ 67,997

Fair Value Disclosures (Assets and Liabilities Measured on Nonrecurring Basis) (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans	$ 1,737	$ 2,455
OREO	2,499	4,619
Fair Value, Inputs, Level 3 [Member]
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Impaired loans	1,737	2,455
OREO	$ 2,499	$ 4,619

Fair Value Disclosures - Unobservable Inputs (Details) - USD ($)	Jun. 30, 2021	Dec. 31, 2020
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	$ 1,737,000	$ 2,455,000
OREO	2,499,000	4,619,000
Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	1,737,000	2,455,000
OREO	2,499,000	4,619,000
Appraisal And Discounted Cash Flow [Member] \| Fair Value, Nonrecurring [Member] \| Fair Value, Inputs, Level 3 [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans	1,737,000	2,455,000
OREO	$ 2,499,000	$ 4,619,000
Appraisal And Discounted Cash Flow [Member] \| Measurement Input, Discount Rate [Member] \| Weighted Average [Member]
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired loans, measurement input	38	9
OREO, measurement input	25	22

Fair Value Disclosures - Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Assets:
Securities available-for-sale, at fair value	$ 250,817	$ 215,634
Liabilities:
Noninterest-bearing demand deposits	807,560	685,957
Interest-bearing demand deposits	702,470	649,129
Time deposits	489,413	550,498
Carrying Amount [Member]
Assets:
Cash and cash equivalents	673,515	481,719
Securities available-for-sale, at fair value	250,817	215,634
Other investments	14,584	14,794
Loans, net and loans held for sale	2,454,342	2,375,618
Liabilities:
Noninterest-bearing demand deposits	807,560	685,957
Interest-bearing demand deposits	702,470	649,129
Money market and savings deposits	1,140,029	919,631
Time deposits	489,413	550,498
Borrowings	78,834	81,199
Subordinated debt	39,388	39,346
Derivative financial instruments	4,468	6,174
Estimated Fair Value [Member]
Assets:
Cash and cash equivalents	673,515	481,719
Securities available-for-sale, at fair value	250,817	215,634
Loans, net and loans held for sale	2,455,130	2,377,581
Liabilities:
Noninterest-bearing demand deposits	807,560	685,957
Interest-bearing demand deposits	702,470	649,129
Money market and savings deposits	1,140,029	919,631
Time deposits	492,243	554,120
Borrowings	79,847	82,892
Subordinated debt	41,302	40,550
Derivative financial instruments	4,468	6,174
Fair Value, Inputs, Level 1 [Member]
Assets:
Cash and cash equivalents	673,515	481,719
Fair Value, Inputs, Level 2 [Member]
Assets:
Securities available-for-sale, at fair value	250,817	215,634
Liabilities:
Noninterest-bearing demand deposits	807,560	685,957
Interest-bearing demand deposits	702,470	649,129
Money market and savings deposits	1,140,029	919,631
Time deposits	492,243	554,120
Borrowings	79,847	82,892
Derivative financial instruments	4,468	6,174
Fair Value, Inputs, Level 3 [Member]
Assets:
Loans, net and loans held for sale	2,455,130	2,377,581
Liabilities:
Subordinated debt	$ 41,302	$ 40,550

Derivatives Financial Instruments - Fair Value Hedges on Balance Sheet (Details) - Interest Rate Swap Liability [Member] - Designated as Hedging Instrument [Member] - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Weighted Average Remaining Maturity (In Years)	5 years 11 months 15 days	7 years 1 month 17 days
Weighted Average Pay Rate	3.09%	3.08%
Notional Amount	$ 36,000	$ 36,000
Estimated Fair Value	$ (4,468)	$ (6,174)

Derivatives Financial Instruments - Fair Value Hedges on Income Statement (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Reported interest income on tax-exempt securities	$ 304	$ 416	$ 563	$ 699
Interest Rate Swap [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Gain (loss) on fair value hedging relationship	(459)	(205)	1,706	(3,644)
Interest Rate Swap [Member] \| Designated as Hedging Instrument [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Interest income on tax-exempt securities	562	580	1,126	1,020
Effects of fair value hedge relationships	(258)	(164)	(563)	(321)
Reported interest income on tax-exempt securities	304	416	563	699
Gain (loss) on fair value hedging relationship	$ 459	$ 205	$ (1,706)	$ 3,644

Derivatives Financial Instruments - Fair Value Hedges in Balance Sheet (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Derivative Instruments and Hedging Activities Disclosure [Abstract]
Carrying amount of hedged asset	$ 43,580	$ 44,017
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets	$ 1,072	$ (1,063)

Derivatives Financial Instruments - Interest Rate Swaps related to Loan Hedging Program (Details) - Interest Rate Swap [Member] - Non-hedged derivatives [Member] - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Derivatives, Fair Value [Line Items]
Notional Amount, Asset	$ 750
Estimated Fair Value, Asset	12
Notional Amount, Liability	750
Estimated Fair Value, Liability	(12)
Notional Amount	1,500
Estimated Fair Value

Derivatives Financial Instruments - Interest Rate Swaps to Facilitate Customer's Transactions (Details) - Interest Rate Swap [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Derivative Instruments, Gain (Loss) [Line Items]
Transaction on income statement	$ (459)	$ (205)	$ 1,706	$ (3,644)
Non-hedged derivatives [Member]
Derivative Instruments, Gain (Loss) [Line Items]
Transaction on income statement	$ 10		$ 10

Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
Operating lease right-of-use assets	$ 4,536	$ 4,797
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Operating lease liabilities	$ 4,578	$ 4,827
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Liabilities	Other Liabilities
Lessee, Operating Lease, Existence of Option to Extend [true false]	true

Leases (Narrative) (Details)	Jun. 30, 2021
Leases [Abstract]
Weighted average remaining lease term	11 years 14 days
Weighted average discount rate	2.69%

Leases - Lease Costs and Other Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
Lease costs:
Operating lease costs	$ 254	$ 270	$ 494	$ 507
Variable lease costs	24	29	48	55
Total	278	299	542	562
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$ 250	$ 265	$ 483	$ 495

Leases - Future Minimum Payments (Details) - USD ($) $ in Thousands	Jun. 30, 2021	Dec. 31, 2020
Leases [Abstract]
2022	$ 414
2023	689
2024	496
2025	368
2026	348
Thereafter	3,033
Total future minimum lease payments	5,348
Amounts representing interest	(770)
Present value of net future minimum lease payments	$ 4,578	$ 4,827

Regulatory Matters (Narrative) (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2021	Jun. 30, 2021
Banking and Thrift [Abstract]
Dividends	$ 5.0	$ 10.0
Common stock dividends (in dollars per share)	$ 0.06	$ 0.06

Regulatory Matters (Regulatory Capital Levels) (Details) $ in Thousands	Jun. 30, 2021 USD ($)	Dec. 31, 2020 USD ($)
SmartFinancial, Inc. [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 340,809	$ 329,431
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	283,118	271,739
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	283,118	271,739
Tier 1 Capital (to Average Assets), Actual Amount	$ 283,118	$ 271,739
Total Capital (to Risk-Weighted Assets), Actual Ratio (as a percent)	12.80	14.07
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent)	10.63	11.61
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent)	10.63%	11.61%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	8.10	8.70
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount	$ 213,089	$ 187,303
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount	159,816	140,477
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount	119,862	105,358
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Amount	$ 139,893	$ 125,002
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent)	8.00	8.00
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent)	6.00	6.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Ratio (as a percent)	4.00	4.00
Smart Bank [Member]
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]
Total Capital (to Risk-Weighted Assets), Actual Amount	$ 324,013	$ 317,660
Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	305,703	299,314
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Amount	305,703	299,314
Tier 1 Capital (to Average Assets), Actual Amount	$ 305,703	$ 299,314
Total Capital (to Risk-Weighted Assets), Actual Ratio (as a percent)	12.19	13.57
Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent)	11.50	12.78
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Actual Ratio (as a percent)	11.50%	12.78%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	8.75	9.58
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount	$ 212,702	$ 187,294
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount	159,527	140,470
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Amount	119,645	105,353
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Amount	$ 139,706	$ 124,969
Total Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent)	8.00	8.00
Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent)	6.00	6.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum for capital adequacy purposes Ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets), Minimum for capital adequacy purposes Ratio (as a percent)	4.00	4.00
Total Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount	$ 265,878	$ 234,117
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount	212,702	187,294
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Amount	172,821	152,176
Tier 1 Capital (to Average Assets), Minimum to be well capitalized under prompt corrective action provisions Amount	$ 174,632	$ 156,212
Total Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent)	10.00	10.00
Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent)	8.00	8.00
Common Equity Tier 1 Capital (to Risk-Weighted Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Minimum to be well capitalized under prompt corrective action provisions Ratio (as a percent)	5.00	5.00

Other comprehensive income (loss) (Activity in Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2021	Jun. 30, 2020	Jun. 30, 2021	Jun. 30, 2020
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE	$ 364,058	$ 336,200	$ 357,168	$ 312,747
BALANCE	373,393	343,488	373,393	343,488
AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE	898	1,242	2,968	391
Other comprehensive income (loss)	1,153	1,414	(917)	2,265
Reclassification of amounts included in net income		12		12
Net other comprehensive income (loss) during period	1,153	1,426	(917)	2,277
BALANCE	2,051	2,668	2,051	2,668
Accumulated Gain (Loss), Net, Cash Flow Hedge, Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE	185	(2,489)	(785)	(223)
Other comprehensive income (loss)	102	413	1,072	(1,853)
Net other comprehensive income (loss) during period	102	413	1,072	(1,853)
BALANCE	287	(2,076)	287	(2,076)
AOCI Attributable to Parent [Member]
AOCI Attributable to Parent, Net of Tax [Roll Forward]
BALANCE	1,083	(1,247)	2,183	168
Other comprehensive income (loss)	1,255	1,827	155	412
Reclassification of amounts included in net income		12		12
Net other comprehensive income (loss) during period	1,255	1,839	155	424
BALANCE	$ 2,338	$ 592	$ 2,338	$ 592

- Definition

Total of all stockholders' equity (deficit) items, net of receivables from officers, directors, owners, and affiliates of the entity which are attributable to the parent. The amount of the economic entity's stockholders' equity attributable to the parent excludes the amount of stockholders' equity which is allocable to that ownership interest in subsidiary equity which is not attributable to the parent (noncontrolling interest, minority interest). This excludes temporary equity and is sometimes called permanent equity.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(g)(1)(ii))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/exampleRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 852
-SubTopic 10
-Section 55
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=84165509&loc=d3e56426-112766

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 4.E)
-URI http://asc.fasb.org/extlink&oid=122038336&loc=d3e74512-122707

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(31))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(29))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02(30))
-URI http://asc.fasb.org/extlink&oid=120391452&loc=d3e13212-122682

Reference 7: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 10
-Section 50
-Paragraph 28
-Subparagraph (f)
-URI http://asc.fasb.org/extlink&oid=123596393&loc=d3e14064-108612

Reference 8: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 323
-SubTopic 10
-Section 50
-Paragraph 3
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=114001798&loc=d3e33918-111571

+ Details