Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2021 | Apr. 30, 2021 | |
Document and Entity Information | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Mar. 31, 2021 | |
Entity File Number | 001-36388 | |
Entity Registrant Name | PEOPLES FINANCIAL SERVICES CORP. | |
Entity Incorporation, State or Country Code | PA | |
Entity Tax Identification Number | 23-2391852 | |
Entity Address, Address Line One | 150 North Washington Avenue | |
Entity Address, City or Town | Scranton | |
Entity Address, State or Province | PA | |
Entity Address, Postal Zip Code | 18503 | |
City Area Code | 570 | |
Local Phone Number | 346-7741 | |
Title of 12(b) Security | Common stock, $2.00 par value | |
Trading Symbol | PFIS | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 7,203,641 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2021 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0001056943 | |
Amendment Flag | false |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Cash and due from banks: | ||
Cash and due from banks | $ 30,786 | $ 29,287 |
Interest-bearing deposits in other banks | 8,432 | 15,905 |
Federal funds sold | 264,100 | 183,000 |
Total cash and due from banks | 303,318 | 228,192 |
Investment securities: | ||
Available-for-sale | 333,753 | 295,911 |
Equity investments carried at fair value | 159 | 138 |
Held-to-maturity: Fair value March 31, 2021, $7,389; December 31, 2020, $7,513 | 7,166 | 7,225 |
Total investment securities | 341,078 | 303,274 |
Loans | 2,179,534 | 2,177,982 |
Less: allowance for loan losses | 26,783 | 27,344 |
Net loans | 2,152,751 | 2,150,638 |
Loans held for sale | 458 | 837 |
Premises and equipment, net | 46,777 | 47,045 |
Accrued interest receivable | 8,206 | 8,255 |
Goodwill | 63,370 | 63,370 |
Intangible assets, net | 835 | 960 |
Bank owned life insurance | 42,530 | 42,316 |
Other assets | 36,146 | 38,915 |
Total assets | 2,995,469 | 2,883,802 |
Deposits: | ||
Noninterest-bearing | 661,262 | 622,475 |
Interest-bearing | 1,889,154 | 1,814,638 |
Total deposits | 2,550,416 | 2,437,113 |
Short-term borrowings | 51,980 | 50,000 |
Long-term debt | 14,264 | 14,769 |
Subordinated debentures | 33,000 | 33,000 |
Accrued interest payable | 1,120 | 736 |
Other liabilities | 27,358 | 31,307 |
Total liabilities | 2,678,138 | 2,566,925 |
Stockholders' equity: | ||
Common stock, par value $2.00, authorized 25,000,000 shares, issued and outstanding 7,211,293 shares at March 31, 2021 and 7,215,202 shares at December 31, 2020 | 14,423 | 14,431 |
Capital surplus | 128,854 | 129,274 |
Retained earnings | 177,836 | 171,023 |
Accumulated other comprehensive income (loss) | (3,782) | 2,149 |
Total stockholders' equity | 317,331 | 316,877 |
Total liabilities and stockholders' equity | $ 2,995,469 | $ 2,883,802 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Statement of Financial Position | ||
Held-to-maturity, Fair value | $ 7,389 | $ 7,513 |
Common stock, par value | $ 2 | $ 2 |
Common stock, shares authorized | 25,000,000 | 25,000,000 |
Common stock, shares issued | 7,211,293 | 7,215,202 |
Common stock, shares outstanding | 7,211,293 | 7,215,202 |
Consolidated Statements of Inco
Consolidated Statements of Income and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest and fees on loans: | ||
Taxable | $ 20,900 | $ 20,917 |
Tax-exempt | 870 | 1,031 |
Interest and dividends on investment securities: | ||
Taxable | 1,243 | 1,548 |
Tax-exempt | 390 | 299 |
Dividends | 23 | 23 |
Interest on interest-bearing deposits in other banks | 2 | 24 |
Interest on federal funds sold | 49 | |
Total interest income | 23,477 | 23,842 |
Interest expense: | ||
Interest on deposits | 2,092 | 3,503 |
Interest on short-term borrowings | 71 | 573 |
Interest on long-term debt | 103 | 205 |
Interest on subordinated debt | 443 | |
Total interest expense | 2,709 | 4,281 |
Net interest income | 20,768 | 19,561 |
(Credit) provision for loan losses | (500) | 3,500 |
Net interest income after (credit) provision for loan losses | 21,268 | 16,061 |
Noninterest income: | ||
Mortgage banking income | 312 | 137 |
Increase in cash surrender value of life insurance | 219 | 187 |
Interest rate swap revenue | 797 | 470 |
Net gain (loss) on equity investment securities | 21 | (123) |
Net gain on sale of investment securities available-for-sale | 267 | |
Total noninterest income | 3,517 | 3,550 |
Noninterest expense: | ||
Salaries and employee benefits expense | 6,570 | 7,856 |
Net occupancy and equipment expense | 3,267 | 3,079 |
Amortization of intangible assets | 125 | 154 |
Professional fees and outside services | 439 | 365 |
FDIC insurance and assessments | 260 | 74 |
Donations | 339 | 338 |
Other expenses | 1,629 | 1,785 |
Total noninterest expense | 12,629 | 13,651 |
Income before income taxes | 12,156 | 5,960 |
Income tax expense | 2,678 | 679 |
Net income | 9,478 | 5,281 |
Other comprehensive income (loss): | ||
Unrealized gain (loss) on investment securities available-for-sale | (7,750) | 7,629 |
Reclassification adjustment for net gain on sales included in net income | (267) | |
Change in derivative fair value | 242 | 1,036 |
Other comprehensive income (loss) | (7,508) | 8,398 |
Income tax expense (benefit) | (1,577) | 1,765 |
Other comprehensive income (loss), net of income taxes | (5,931) | 6,633 |
Comprehensive income | $ 3,547 | $ 11,914 |
Net income: | ||
Basic | $ 1.31 | $ 0.72 |
Diluted | $ 1.31 | $ 0.71 |
Average common shares outstanding: | ||
Basic | 7,210,952 | 7,379,438 |
Diluted | 7,246,016 | 7,405,703 |
Dividends declared | $ 0.37 | $ 0.36 |
Service charges, fees and commissions | ||
Noninterest income: | ||
Revenue from contracts with customers | $ 1,184 | $ 1,605 |
Merchant services income | ||
Noninterest income: | ||
Revenue from contracts with customers | 93 | 114 |
Commission and fees on fiduciary activities | ||
Noninterest income: | ||
Revenue from contracts with customers | 533 | 506 |
Wealth management income | ||
Noninterest income: | ||
Revenue from contracts with customers | $ 358 | $ 387 |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock | Capital Surplus | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total |
Balance at Dec. 31, 2019 | $ 14,777 | $ 135,251 | $ 152,187 | $ (3,205) | $ 299,010 |
Net income | 5,281 | 5,281 | |||
Other comprehensive (loss) income, net of income taxes | 6,633 | 6,633 | |||
Dividends declared | (2,662) | (2,662) | |||
Stock based compensation | 5 | 5 | |||
Share retirement | (107) | (2,097) | (2,204) | ||
Balance at Mar. 31, 2020 | 14,670 | 133,159 | 154,806 | 3,428 | 306,063 |
Balance at Dec. 31, 2020 | 14,431 | 129,274 | 171,023 | 2,149 | 316,877 |
Net income | 9,478 | 9,478 | |||
Other comprehensive (loss) income, net of income taxes | (5,931) | (5,931) | |||
Dividends declared | (2,665) | (2,665) | |||
Stock based compensation | 89 | 89 | |||
Share retirement | (26) | (491) | (517) | ||
Common stock grants awarded, net of unearned compensation | 18 | (18) | |||
Balance at Mar. 31, 2021 | $ 14,423 | $ 128,854 | $ 177,836 | $ (3,782) | $ 317,331 |
Consolidated Statements of Ch_2
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Statement of Stockholders' Equity | ||
Dividends declared (in dollars per share) | $ 0.37 | $ 0.36 |
Share retired, shares | 13,101 | 53,746 |
Common stock grants awarded, net of unearned compensation | $ 182 | |
Common stock grants awarded, net of unearned compensation (in shares) | 9,192 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Cash flows from operating activities: | ||
Net income | $ 9,478 | $ 5,281 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation of premises and equipment | 680 | 735 |
Amortization of right-of-use lease asset | 109 | 104 |
Amortization of deferred loan costs, net | 626 | 39 |
Amortization of intangibles | 125 | 154 |
Amortization of low income housing partnerships | 120 | 120 |
(Credit) provision for loan losses | (500) | 3,500 |
Net unrealized (gain) loss on equity investment securities | (21) | 123 |
Net (gain) loss on sale of other real estate owned | 10 | (4) |
Loans originated for sale | (4,869) | (2,297) |
Proceeds from sale of loans originated for sale | 5,382 | 3,023 |
Net gain on sale of loans originated for sale | (134) | (10) |
Net amortization of investment securities | 260 | 281 |
Net gain on sale of investment securities available-for-sale | (267) | |
Increase in cash surrender value of life insurance | (219) | (187) |
Deferred income tax expense | 620 | 619 |
Stock based compensation | 89 | 5 |
Net change in: | ||
Accrued interest receivable | 49 | (302) |
Other assets | (918) | (10,038) |
Accrued interest payable | 384 | 59 |
Other liabilities | 383 | 10,014 |
Net cash provided by operating activities | 11,654 | 10,952 |
Cash flows from investing activities: | ||
Proceeds from sales of investment securities available-for-sale | 26,502 | |
Proceeds from repayments of investment securities: | ||
Available-for-sale | 12,876 | 17,522 |
Held-to-maturity | 58 | 135 |
Purchases of investment securities: | ||
Available-for-sale | (58,726) | (9,080) |
Net purchase of restricted equity securities | (64) | (482) |
Net increase in lending activities | (2,296) | (86,062) |
Purchases of premises and equipment | (521) | (627) |
Proceeds from sale of other real estate owned | 549 | 157 |
Net cash used in investing activities | (48,124) | (51,935) |
Cash flows from financing activities: | ||
Net increase in deposits | 113,303 | 38,506 |
Repayment of long-term debt | (505) | (483) |
Net increase in short-term borrowings | 1,980 | 12,000 |
Retirement of common stock | (517) | (2,204) |
Cash dividends paid | (2,665) | (2,662) |
Net cash provided by financing activities | 111,596 | 45,157 |
Net increase in cash and cash equivalents | 75,126 | 4,174 |
Cash and cash equivalents at beginning of period | 228,192 | 31,153 |
Cash and cash equivalents at end of period | 303,318 | 35,327 |
Cash paid during the period for: | ||
Interest | 2,325 | 4,222 |
Noncash items: | ||
Transfers of loans to other real estate | $ 57 | 626 |
Initial recognition of right-of-use assets | 899 | |
Initial recognition of lease liability | $ 899 |
Summary of significant accounti
Summary of significant accounting policies | 3 Months Ended |
Mar. 31, 2021 | |
Summary of significant accounting policies | |
Summary of significant accounting policies | 1. Summary of significan t accounting policies: Nature of operations: Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), collectively, the “Company” or “Peoples”. The Company services its retail and commercial customers through Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the three months ended and as of March 31, 2021, are not necessarily indicative of the results of consolidated operations and financial position that may be expected in the future. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, determination of other-than-temporary impairment losses on securities, and impairment of goodwill. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the period ended December 31, 2020. Significant events: COVID-19 Operationally, as COVID-19 related events unfold, our continued priority is the health and safety of our customers and employees. We recently worked with local government and health professionals and have had opportunities to offer our eligible employees and their family members appointments to receive the COVID-19 vaccine. We continue to follow the recommendations of our state governments as to conducting business and have maintained safety protocols. Currently all our offices have returned to pre-pandemic operating hours with limited lobby access. We participated in the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), Paycheck Protection Program (“PPP”), a $350 billion specialized low-interest loan program funded by the U.S. Treasury Department and administered by the Small Business Administration (“SBA”). During 2020, we approved 1,450 PPP loans totaling $217.5 million. Substantially all of the loans were made to existing customers, funded under the two year PPP loan program, and the loan proceeds initially were deposited with our institution. PPP loan forgiveness commenced during the fourth quarter of 2020 and we continue to process loan forgiveness applications. At March 31, 2021, we have 468 loans totaling $100.8 million remaining compared to 1,304 loans totaling $189.7 million at December 31, 2020. We expect the majority of the remaining $100.8 million to be forgiven during 2021. During the first quarter of 2021, we funded an additional 885 loans totaling $100.0 million under the SBA’s second PPP loan program. The application process for the second PPP loan program ends May 31, 2021. From a credit risk perspective, we took actions to identify and assess our COVID-19 related credit exposures based on asset class and borrower type. From the onset of the crisis, we worked to proactively monitor our loan portfolio by contacting many of our borrowers to evaluate the impact of the pandemic on them, their businesses and the underlying collateral for our loans. The Company implemented a customer payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19 related challenges. At the start of the pandemic, the Company granted payment deferral requests for up to six months to a total of 481 commercial loans with outstanding loan balances of $306.9 million and to 505 consumer loans with outstanding balances of $23.3 million. Outstanding loan balances remaining in deferral at March 31, 2021 totaled $1.3 million, a decrease of $4.8 million from the $6.1 million at December 31, 2020. As a percentage of total loan balances, excluding PPP loans, loans in deferral represented less than 0.1% of loans outstanding at March 31, 2021 compared to 0.3% of loans outstanding at December 31, 2020. At March 31, 2021, commercial loan balances remaining in deferral total $1.0 million while consumer loans total $0.3 million. Loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, loan deferrals are not included in our nonperforming loans disclosed in our financial statement footnotes. Loans in deferral status will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. Recent accounting standards: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by the Company as of the required effective dates. The following should be read in conjunction with "Note 1 Summary of significant accounting policies" of the Notes to the Consolidated Financial Statements included in the Company’s 2020 Form 10-K. Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU will have a significant impact on the Company’s calculation and accounting for its allowance for loan losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: ● The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. ● The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. ● This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignifcant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. ● In November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. At the relevant time, the Company qualified as a smaller reporting company and therefore guidance is effective for the Company in 2023. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. 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 optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company adopted the amendments in ASU 2020-04 as of the March 12, 2020 issuance date, on a prospective basis. The adoption did not have an immediate direct impact to the consolidated financial statements. As contracts are modified through December 2022, we will assess the impact based on this guidance. The Company does not expect there will be a material impact to the consolidated financial statements. |
Other Comprehensive Income (Los
Other Comprehensive Income (Loss) | 3 Months Ended |
Mar. 31, 2021 | |
Other comprehensive income (loss) | |
Other comprehensive income (loss) | 2. Other comprehensive income (loss): The components of other comprehensive income (loss) and their related tax effects are reported in the consolidated statements of income and comprehensive income. The accumulated other comprehensive income (loss) included in the Consolidated Balance Sheets relates to net unrealized gains and losses on investment securities available-for-sale, benefit plan adjustments and adjustments to derivative fair values. The components of accumulated other comprehensive income (loss) included in stockholders’ equity at March 31, 2021 and December 31, 2020 are as follows: March 31, 2021 December 31, 2020 Net unrealized gain on investment securities available-for-sale $ 1,946 $ 9,696 Income tax 409 2,036 Net of income taxes 1,537 7,660 Benefit plan adjustments (7,977) (7,977) Income tax benefit (1,675) (1,675) Net of income taxes (6,302) (6,302) Derivative adjustments 1,244 1,002 Income tax 262 211 Net of income taxes 982 791 Accumulated other comprehensive income (loss) $ (3,782) $ 2,149 |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per share | |
Earnings per share | 3. Earnings per share: Basic earnings per share represent income available to common stockholders divided by the weighted-average number of common shares outstanding during the period. Diluted earnings per share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued, as well as any adjustment to income that would result from the assumed issuance. The following table presents the calculation of both basic and diluted earnings per share of common stock for the three months ended March 31, 2021 and 2020: 2021 2020 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net income $ 9,478 $ 9,478 $ 5,281 $ 5,281 Average common shares outstanding 7,210,952 7,246,016 7,379,438 7,405,703 Earnings per share $ 1.31 $ 1.31 $ 0.72 $ 0.71 |
Investment securities
Investment securities | 3 Months Ended |
Mar. 31, 2021 | |
Investment securities | |
Investment securities | 4. Investment securities: The amortized cost and fair value of investment securities aggregated by investment category at March 31, 2021 and December 31, 2020 are summarized as follows: Gross Gross Amortized Unrealized Unrealized Fair March 31, 2021 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 18,481 $ 344 $ 18,825 U.S. government-sponsored enterprises 56,620 963 57,583 State and municipals: Taxable 56,931 944 $ 1,251 56,624 Tax-exempt 70,113 2,426 779 71,760 Residential mortgage-backed securities: U.S. government agencies 3,061 125 3,186 U.S. government-sponsored enterprises 112,501 1,363 2,855 111,009 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,600 677 13,277 Corporate debt securities 1,500 2 13 1,489 Total $ 331,807 $ 6,844 $ 4,898 $ 333,753 Held-to-maturity: Tax-exempt state and municipals $ 6,848 $ 214 $ 7,062 Residential mortgage-backed securities: U.S. government agencies 18 18 U.S. government-sponsored enterprises 300 9 309 Total $ 7,166 $ 223 $ $ 7,389 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 18,478 $ 427 $ 18,905 U.S. government-sponsored enterprises 63,834 1,354 $ 65,188 State and municipals: Taxable 53,297 2,099 30 55,366 Tax-exempt 53,977 3,054 37 56,994 Residential mortgage-backed securities: U.S. government agencies 3,553 154 3,707 U.S. government-sponsored enterprises 79,457 1,930 136 81,251 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,619 881 13,500 Corporate debt securities 1,000 1,000 Total $ 286,215 $ 9,899 $ 203 $ 295,911 Held-to-maturity: Tax-exempt state and municipals $ 6,849 $ 275 $ $ 7,124 Residential mortgage-backed securities: U.S. government agencies 21 21 U.S. government-sponsored enterprises 355 13 368 Total $ 7,225 $ 288 $ $ 7,513 Equity Securities At March 31, 2021, our equity security portfolio consisted of stock of one financial institution. At March 31, 2021 and December 31, 2020, we had $159 and $138 respectively, in equity securities recorded at fair value. At March 31, 2021, the fair value of our equity portfolio exceeded the cost basis by $5. The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three months ended March 31, 2021 (in thousands): For the Three Months Ended March 31, 2021 2020 Net gain (loss) recognized during the period on equity securities $ 21 $ (123) Less: Net gain (loss) recognized during the period on equity securities sold during the period Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ 21 $ (123) Restricted Investment In Stock Restricted investment in stock includes Federal Home Loan Bank (“FHLB”) stock with a carrying cost of $5,419 and $5,355 at March 31, 2021 and December 31, 2020, respectively, Atlantic Community Bankers Bank (“ACBB”) stock with a carrying cost of $42, and VISA Class B stock with a carrying cost of $0 at March 31, 2021 and December 31, 2020, which are included in other assets in the consolidated balance sheets. FHLB and ACBB stock was issued as a requirement to facilitate participation in borrowing and other banking services. The investment in FHLB stock may fluctuate, as it is based on the member bank’s use of FHLB’s services. The Company owns 44,982 shares of Visa Class B stock, which was necessary to participate in Visa services in support of the Company’s credit card, debit card, and related payment programs (permissible activities under banking regulations) as a member institution. Following the resolution of Visa’s litigation, shares of Visa’s Class B stock will be converted to Visa Class A shares using a conversion factor (1.6228 as of March 31, 2021), which is periodically adjusted to reflect VISA’s ongoing litigation costs. There is a very limited market for this stock, as only current owners of Class B shares are permitted to transact in Class B stock. Due to the lack of orderly trades and public information of such trades, Visa Class B stock has no readily determinable fair value. These restricted investments are carried at cost and evaluated for other-than-temporary impairment (“OTTI”) periodically. As of March 31, 2021, there was no OTTI associated with these investments. The maturity distribution of the fair value, which is the net carrying amount, of the debt securities classified as available-for-sale at March 31, 2021, is summarized as follows: Fair March 31, 2021 Value Within one year $ 39,394 After one but within five years 41,919 After five but within ten years 25,997 After ten years 95,819 203,129 Mortgage-backed and other amortizing securities 130,624 Total $ 333,753 The maturity distribution of the amortized cost and fair value, of debt securities classified as held-to-maturity at March 31, 2021, is summarized as follows: Amortized Fair March 31, 2021 Cost Value Within one year $ 175 $ 177 After five but within ten years 523 546 After ten years 6,150 6,339 6,848 7,062 Mortgage-backed securities 318 327 Total $ 7,166 $ 7,389 Securities with a carrying value of $174,711 and $165,982 at March 31, 2021 and December 31, 2020, respectively, were pledged to secure public deposits and certain other deposits as required or permitted by law. Securities and short-term investment activities are conducted with a diverse group of government entities, corporations and state and local municipalities. The counterparty’s creditworthiness and type of collateral is evaluated on a case-by-case basis. At March 31, 2021 and December 31, 2020, there were no significant concentrations of credit risk from any one issuer, with the exception of U.S. government agencies and sponsored enterprises, that exceeded 10.0 percent of stockholders’ equity. The fair value and gross unrealized losses of investment securities with unrealized losses for which an OTTI has not been recognized at March 31, 2021 and December 31, 2020, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position, are summarized as follows: Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2021 Value Losses Value Losses Value Losses State and municipals: Taxable $ 28,025 $ 1,251 $ 28,025 $ 1,251 Tax-exempt 30,795 779 30,795 779 Residential mortgage-backed securities: U.S. government-sponsored enterprises 82,687 2,854 $ 243 $ 1 82,930 2,855 Corporate debt securities 987 13 987 13 Total $ 142,494 $ 4,897 $ 243 $ 1 $ 142,737 $ 4,898 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 9,246 $ 30 $ 9,246 $ 30 Tax-exempt 6,786 37 6,786 37 Residential mortgage-backed securities: U.S. government-sponsored enterprises 11,553 135 $ 284 $ 1 11,837 136 Total $ 27,585 $ 202 $ 284 $ 1 $ 27,869 $ 203 Management, from a credit risk perspective, has taken action to identify and assess its COVID-19 related credit exposures based on asset class. No specific COVID-19 related credit impairment was identified within our investment securities portfolio, including our municipal securities, during the first quarter of 2021. The Company had fifteen mortgage-backed securities, forty-four tax-exempt municipals, twenty-eight taxable municipals and two corporate bonds that were in unrealized loss positions at March 31, 2021. Of these securities, two mortgage-backed securittes were in a continuous unrealized loss position for twelve months or more. Management does not consider the unrealized losses on the debt securities, as a result of changes in interest rates, to be OTTI based on historical evidence that indicates the cost of these securities is recoverable within a reasonable period of time in relation to normal cyclical changes in the market rates of interest. Moreover, because there has been no known material change in the credit quality of the issuers or other events or circumstances that may cause a significant adverse impact on the fair value of these securities, and management does not intend to sell these securities and it is unlikely that the Company will be required to sell these securities before recovery of their amortized cost basis, which may be maturity, the Company does not consider the unrealized losses to be OTTI at March 31, 2021. There was no OTTI recognized for the three months ended March 31, 2021 and 2020. |
Loans, net and allowance for lo
Loans, net and allowance for loan losses | 3 Months Ended |
Mar. 31, 2021 | |
Loans, net and allowance for loan losses | |
Loans, net and allowance for loan losses | 5. Loans, net and allowance for loan losses: The major classifications of loans outstanding, net of deferred loan origination fees and costs at March 31, 2021 and December 31, 2020 are summarized as follows. The Company had net deferred loan origination fees of $2,684 and $2,058 at March 31, 2021 and December 31, 2020, respectively. The increase is due in part to net fees from $100.0 million of PPP loans originated during the first three months of 2021. March 31, 2021 December 31, 2020 Commercial $ 677,090 $ 679,286 Real estate: Commercial 1,150,567 1,137,990 Residential 273,226 277,414 Consumer 78,651 83,292 Total $ 2,179,534 $ 2,177,982 The PPP loans are included in the commercial loan classification and had an outstanding balance at March 31, 2021 of $200,774 comprised of $99,984 originated during 2021 as part of round two and $100,790 remaining from loans originated during 2020 under round one of the program. The PPP loans are risk rated ‘Pass’ and do not carry an allowance for loan losses due to a 100% SBA guarantee. The outstanding balance is considered current at March 31, 2021. The changes in the allowance for loan losses account by major classification of loan for the three months ended March 31, 2021 and 2020 are summarized as follows: Real estate March 31, 2021 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2021 $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Charge-offs (15) (96) (22) (62) (195) Recoveries 61 58 1 14 134 Provisions (credits) (565) 182 (114) (3) (500) Ending balance $ 8,215 $ 14,703 $ 2,994 $ 871 $ 26,783 Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2020 $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (650) (54) (94) (798) Recoveries 267 10 30 307 Provisions 1,464 1,511 442 83 3,500 Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 The Company’s allowance for loan losses decreased $0.6 million or 2.1% during the first three months of 2021, due primarily to a $0.5 million release from allowance for loan losses in the current period resulting from improved credit quality and a slight decrease in non-PPP loan balances. The allowance for loan losses equaled $26.8 million or 1.23% of loans, net at March 31, 2021 compared to $27.3 million or 1.26% of loans, net, at December 31, 2020. Excluding PPP loans that do not carry an allowance for loan losses due to a 100% government guarantee, the ratio equaled 1.35% at March 31, 2021. Loans charged-off, net of recoveries, for the three months ended March 31, 2021, equaled less than $0.1 million or 0.01% of average loans, compared to $0.5 million or 0.10% of average loans for the comparable period last year. The decrease to charge-offs in the current period resulted from improved credit quality; the year ago period included a $0.6 million fully charged-off commercial credit. The allocation of the allowance for loan losses and the related loans by major classifications of loans at March 31, 2021 and December 31, 2020 is summarized as follows: Real estate March 31, 2021 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 8,215 $ 14,703 $ 2,994 $ 871 $ 26,783 Ending balance: individually evaluated for impairment 697 108 64 869 Ending balance: collectively evaluated for impairment $ 7,518 $ 14,595 $ 2,930 $ 871 $ 25,914 Loans receivable: Ending balance $ 677,090 $ 1,150,567 $ 273,226 $ 78,651 $ 2,179,534 Ending balance: individually evaluated for impairment 2,651 3,990 1,543 94 8,278 Ending balance: collectively evaluated for impairment $ 674,439 $ 1,146,577 $ 271,683 $ 78,557 $ 2,171,256 Real estate December 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Ending balance: individually evaluated for impairment 947 180 75 1,202 Ending balance: collectively evaluated for impairment $ 7,787 $ 14,379 $ 3,054 $ 922 $ 26,142 Loans receivable: Ending balance $ 679,286 $ 1,137,990 $ 277,414 $ 83,292 $ 2,177,982 Ending balance: individually evaluated for impairment 4,297 3,952 1,546 111 9,906 Ending balance: collectively evaluated for impairment $ 674,989 $ 1,134,038 $ 275,868 $ 83,181 $ 2,168,076 The Company segments loans into risk categories based on relevant information about the ability of borrowers to service their debt such as current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. Loans are individually analyzed for credit risk by classifying them within the Company’s internal risk rating system. The Company’s risk rating classifications are defined as follows: ● Pass- A loan to borrowers with acceptable credit quality and risk that is not adversely classified as Substandard, Doubtful, Loss nor designated as Special Mention. ● Special Mention- A loan that has potential weaknesses that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or in the institution’s credit position at some future date. Special Mention loans are not adversely classified since they do not expose the Company to sufficient risk to warrant adverse classification. ● Substandard- A loan that is inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified must have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the bank will sustain some loss if the deficiencies are not corrected. ● Doubtful – A loan classified as Doubtful has all the weaknesses inherent in one classified Substandard with the added characteristic that the weaknesses make the collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. ● Loss- A loan classified as Loss is considered uncollectible and of such little value that its continuance as bankable loan is not warranted. This classification does not mean that the loan has absolutely no recovery or salvage value, but rather it is not practical or desirable to defer writing off this basically worthless asset even though partial recovery may be affected in the future. The following tables present the major classification of loans summarized by the aggregate pass rating and the classified ratings of special mention, substandard and doubtful within the Company’s internal risk rating system at March 31, 2021 and December 31, 2020: Special March 31, 2021 Pass Mention Substandard Doubtful Total Commercial $ 660,558 $ 13,728 $ 2,804 $ $ 677,090 Real estate: Commercial 1,123,315 17,615 9,637 1,150,567 Residential 269,856 619 2,751 273,226 Consumer 78,556 95 78,651 Total $ 2,132,285 $ 31,962 $ 15,287 $ $ 2,179,534 Special December 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 660,559 $ 14,305 $ 4,422 $ $ 679,286 Real estate: Commercial 1,107,699 17,517 12,774 1,137,990 Residential 274,327 144 2,943 277,414 Consumer 83,215 77 83,292 Total $ 2,125,800 $ 31,966 $ 20,216 $ $ 2,177,982 The decrease to substandard commercial loans resulted primarily from a $1.5 million relationship that was paid off during the period ended March 31, 2021. The decrease in substandard commercial real estate loans resulted from a refinance of a credit related to the hospitality industry that is secured by a seventy-five percent SBA guarantee. Information concerning nonaccrual loans by major loan classification at March 31, 2021 and December 31, 2020 is summarized as follows: March 31, 2021 December 31, 2020 Commercial $ 2,198 $ 3,822 Real estate: Commercial 3,311 3,262 Residential 825 922 Consumer 94 111 Total $ 6,428 $ 8,117 The decrease to non-accrual loans since year end was due to the $1.5 million payoff of a specific commercial relationship. The major classifications of loans by past due status are summarized as follows: Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and March 31, 2021 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 150 $ 2,198 $ 2,348 $ 674,742 $ 677,090 Real estate: Commercial 343 $ 57 3,311 3,711 1,146,856 1,150,567 Residential 1,444 996 2,440 270,786 273,226 $ 171 Consumer 151 37 94 282 78,369 78,651 Total $ 2,088 $ 94 $ 6,599 $ 8,781 $ 2,170,753 $ 2,179,534 $ 171 Improved credit quality resulted in lower levels of past due loans from year end. The addition of Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 73 $ 3,822 $ 3,895 $ 675,391 $ 679,286 Real estate: Commercial 344 $ 134 3,262 3,740 1,134,250 1,137,990 Residential 2,072 480 993 3,545 273,869 277,414 $ 71 Consumer 374 63 111 548 82,744 83,292 Total $ 2,863 $ 677 $ 8,188 $ 11,728 $ 2,166,254 $ 2,177,982 $ 71 The following tables summarize information concerning impaired loans as of and for the three months ended March 31, 2021 and March 31, 2020, and as of and for the year ended December 31, 2020 by major loan classification: For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2021 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 673 $ 1,108 $ 1,462 $ 4 Real estate: Commercial 3,280 4,051 2,826 6 Residential 1,121 1,241 1,104 6 Consumer 94 105 103 Total 5,168 6,505 5,495 16 With an allowance recorded: Commercial 1,978 2,041 697 2,012 5 Real estate: Commercial 710 796 108 1,145 4 Residential 422 457 64 441 4 Consumer Total 3,110 3,294 869 3,598 13 Total impaired loans Commercial 2,651 3,149 697 3,474 9 Real estate: Commercial 3,990 4,847 108 3,971 10 Residential 1,543 1,698 64 1,545 10 Consumer 94 105 103 Total $ 8,278 $ 9,799 $ 869 $ 9,093 $ 29 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,251 $ 3,421 $ 2,915 $ 30 Real estate: Commercial 2,372 2,964 2,148 28 Residential 1,086 1,263 1,223 21 Consumer 111 121 167 Total 5,820 7,769 6,453 79 With an allowance recorded: Commercial 2,046 2,094 947 2,038 17 Real estate: Commercial 1,580 1,710 180 1,687 36 Residential 460 482 75 624 13 Consumer Total 4,086 4,286 1,202 4,349 66 Total impaired loans Commercial 4,297 5,515 947 4,953 47 Real estate: Commercial 3,952 4,674 180 3,835 64 Residential 1,546 1,745 75 1,847 34 Consumer 111 121 167 Total $ 9,906 $ 12,055 $ 1,202 $ 10,802 $ 145 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,706 $ 4,249 $ 3,672 $ 16 Real estate: Commercial 2,263 2,574 2,091 5 Residential 1,129 1,369 1,424 5 Consumer 201 219 231 Total 7,299 8,411 7,418 26 With an allowance recorded: Commercial 1,956 1,974 $ 764 1,488 6 Real estate: Commercial 1,263 1,924 270 1,197 Residential 706 735 192 571 4 Consumer Total 3,925 4,633 1,226 3,256 10 Total impaired loans Commercial 5,662 6,223 764 5,160 22 Real estate: Commercial 3,526 4,498 270 3,288 5 Residential 1,835 2,104 192 1,995 9 Consumer 201 219 231 Total $ 11,224 $ 13,044 $ 1,226 $ 10,674 $ 36 Loan Modifications/Troubled Debt Restructurings/COVID-19 Included in the commercial loan and commercial and residential real estate categories are troubled debt restructurings that are classified as impaired. Troubled debt restructurings totaled $2,740 at March 31 2021, $2,818 at December 31, 2020 and $2,140 at March 31, 2020. Troubled debt restructured loans are loans with original terms, interest rate, or both, that have been modified as a result of a deterioration in the borrower’s financial condition and a concession has been granted that the Company would not otherwise consider. Unless on nonaccrual, interest income on these loans is recognized when earned, using the interest method. The Company offers a variety of modifications to borrowers that would be considered concessions. The modification categories offered generally fall within the following categories: ● Rate Modification - A modification in which the interest rate is changed to a below market rate. ● Term Modification - A modification in which the maturity date, timing of payments or frequency of payments is changed. ● Payment Modification - A modification in which the dollar amount of the payment is changed, other than an interest only modification described above. ● Combination Modification - Any other type of modification, including the use of multiple categories above. There were no loans modified as troubled debt restructurings during the three months ended March 31, 2021 and 2020. During the three months ended March 31, 2021, there were no payment defaults on troubled debt restructurings. During the three months ended March 31, 2020, there was one payment default on a residential real estate loan in the amount of $52 . The Company received a significant number of requests to modify loan terms and/or defer principal and/or interest payments, and agreed to many such deferrals during 2020. The federal banking regulators issued guidance and encouraged banks to work prudently with, and provide short-term payment accommodations to borrowers affected by COVID-19. Section 4013 of the CARES Act includes a provision for the Company to opt out of applying the troubled debt restructuring (“TDR”) guidance for certain loan modifications and specified that such modifications made on loans that were current as of December 31, 2019 do not need to be classified as TDRs. Peoples applied this guidance. Similarly, FASB confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief are not TDRs. Beginning in March 2020, the Company began receiving COVID-19 related requests for temporary modifications to the repayment structure for borrower loans. As of March 31, 2021, six commercial loans and fifteen consumer loans not classified as TDRs remain on deferral with principal balances aggregating $1.3 million, representing less than 0.1% of loans outstanding. |
Other assets
Other assets | 3 Months Ended |
Mar. 31, 2021 | |
Other assets | |
Other assets | 6. Other assets: The components of other assets at March 31, 2021, and December 31, 2020 are summarized as follows: March 31, 2021 December 31, 2020 Other real estate owned $ 362 $ 864 Investment in low income housing partnership 6,212 6,332 Mortgage servicing rights 833 838 Restricted equity securities (FHLB and other) 5,461 5,397 Net deferred tax asset 4,724 3,768 Interest rate floor 1,455 1,678 Interest rate swaps 10,239 13,693 Other assets 6,860 6,345 Total $ 36,146 $ 38,915 |
Fair value estimates
Fair value estimates | 3 Months Ended |
Mar. 31, 2021 | |
Fair value estimates | |
Fair value estimates | 7. Fair value estimates: The Company uses fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosure under GAAP. Fair value estimates are calculated without attempting to estimate the value of anticipated future business and the value of certain assets and liabilities that are not considered financial. Accordingly, such assets and liabilities are excluded from disclosure requirements. In accordance with FASB ASC 820, “Fair Value Measurements and Disclosures,” fair value is the price that would be received to sell an asset or 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. In that regard, the derived fair value estimates cannot be substantiated by comparison to independent markets. In many cases, these values cannot be realized in immediate settlement of the instrument. Current fair value guidance provides a consistent definition of fair value, which focuses on exit price in an orderly transaction that is not a forced liquidation or distressed sale between participants at the measurement date under current market conditions. If there has been a significant decrease in the volume and level of activity for the asset or liability, a change in valuation technique or the use of multiple valuation techniques may be appropriate. In such instances, determining the price at which willing market participants would transact at the measurement date under current market conditions depends on the facts and circumstances and requires the use of significant judgment. The fair value is a reasonable point within the range that is most representative of fair value under current market conditions. In accordance with GAAP, the Company groups its assets and liabilities generally measured at fair value into three levels based on market information or other fair value estimates in which the assets and liabilities are traded or valued and the reliability of the assumptions used to determine fair value. These levels include: ● Level 1: Unadjusted quoted prices of identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date. ● Level 2: Significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. ● Level 3: Significant unobservable inputs that reflect a reporting entity’s own assumptions about the assumptions that market participants would use in pricing an asset or liability. An asset’s or liability’s placement in the fair value hierarchy is based on the lowest level of input that is significant to the fair value estimate. During the periods ended March 31, 2021 and December 31, 2020 there were no transfers in or out of Level 3 . The following methods and assumptions were used by the Company to calculate fair values and related carrying amounts of financial instruments: Investment securities: Loans held for sale: Interest rate swaps and options: Assets and liabilities measured at fair value on a recurring basis at March 31, 2021 and December 31, 2020 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2021 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 18,825 $ 18,825 $ U.S. government-sponsored enterprises 57,583 $ 57,583 State and municipals: Taxable 56,624 56,624 Tax-exempt 71,760 71,760 Mortgage-backed securities: U.S. government agencies 3,186 3,186 U.S. government-sponsored enterprises 124,286 124,286 Corporate debt securities 1,489 1,489 Common equity securities 159 159 Total investment securities $ 333,912 $ 18,984 $ 314,928 $ Loan held for sale $ 458 $ 458 Interest rate floor-other assets $ 1,455 $ 1,455 Interest rate swap-other assets $ 9,980 $ 9,980 Interest rate swap-other liabilities $ (9,496) $ (9,496) Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 18,905 $ 18,905 $ U.S. government-sponsored enterprises 65,188 $ 65,188 State and municipals: Taxable 55,366 55,366 Tax-exempt 56,994 56,994 Mortgage-backed securities: U.S. government agencies 3,707 3,707 U.S. government-sponsored enterprises 94,751 94,751 Corporate debt securities 1,000 1,000 Common equity securities 138 138 Total investment securities $ 296,049 $ 19,043 $ 277,006 $ Loan held for sale $ 837 $ 837 Interest rate floor-other assets $ 1,678 $ 1,678 Interest rate swap-other assets $ 13,693 $ 13,693 Interest rate swap-other liabilities $ (14,099) $ (14,099) Assets and liabilities measured at fair value on a nonrecurring basis at March 31, 2021 and December 31, 2020 are summarized as follows: Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2021 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,241 $ 2,241 Other real estate owned $ 131 $ 131 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,884 $ 2,884 Other real estate owned $ 527 $ 527 Fair values of impaired loans are based on the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which the Company has utilized Level 3 inputs to determine fair value: Quantitative Information about Level 3 Fair Value Measurements Fair Value Range March 31, 2021 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,241 Appraisal of collateral Appraisal adjustments 17.9% to 97.0% (24.8)% Liquidation expenses 3.0% to 6.0% (5.5)% Other real estate owned $ 131 Appraisal of collateral Appraisal adjustments 20.0% to 58.1% (39.5)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,884 Appraisal of collateral Appraisal adjustments 9.0% to 97.0% (28.2)% Liquidation expenses 3.0% to 6.0% (5.5)% Other real estate owned $ 527 Appraisal of collateral Appraisal adjustments 3.1% to 58.1% (29.9)% Liquidation expenses 3.0% to 6.0% (5.0)% Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various Level 3 inputs which are not identifiable. Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal. The carrying and fair values of the Company’s financial instruments at March 31, 2021 and December 31, 2020 and their placement within the fair value hierarchy are as follows: Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs March 31, 2021 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 303,318 $ 303,318 $ 303,318 Investment securities: Available-for-sale 333,753 333,753 18,825 $ 314,928 Common equity securities 159 159 159 Held-to-maturity 7,166 7,389 7,389 Loans held for sale 458 458 458 Net loans 2,152,751 2,133,875 $ 2,133,875 Accrued interest receivable 8,206 8,206 8,206 Mortgage servicing rights 833 1,261 1,261 Restricted equity securities (FHLB and other) 5,461 5,461 5,461 Interest rate floor 1,455 1,455 1,455 Interest rate swaps 9,980 9,980 9,980 Total $ 2,823,540 $ 2,805,315 Financial liabilities: Deposits $ 2,550,416 $ 2,552,977 $ 2,552,977 Long-term debt 14,264 14,481 14,481 Subordinated debentures 33,000 32,574 32,574 Accrued interest payable 1,120 1,120 1,120 Interest rate swaps 9,496 9,496 9,496 Total $ 2,608,296 $ 2,610,648 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 228,192 $ 228,192 $ 228,192 Investment securities: Available-for-sale 295,911 295,911 18,905 $ 277,006 Common equity securities 138 138 138 Held-to-maturity 7,225 7,513 7,513 Loans held for sale 837 837 837 Net loans 2,150,638 2,145,752 $ 2,145,752 Accrued interest receivable 8,255 8,255 8,255 Mortgage servicing rights 838 1,269 1,269 Restricted equity securities (FHLB and other) 5,397 5,397 5,397 Interest rate floor 1,678 1,678 1,678 Interest rate swaps 13,693 13,693 13,693 Total $ 2,712,802 $ 2,708,635 Financial liabilities: Deposits $ 2,437,113 $ 2,441,014 $ 2,441,014 Long-term debt 14,769 15,073 15,073 Subordinated debentures 33,000 33,096 33,096 Accrued interest payable 736 736 736 Interest rate swaps 14,099 14,099 14,099 Total $ 2,499,717 $ 2,504,018 |
Employee benefit plans
Employee benefit plans | 3 Months Ended |
Mar. 31, 2021 | |
Employee benefit plans | |
Employee benefit plans | 8. Employee benefit plans: The Company provides an Employee Stock Ownership Plan (“ESOP”) and a Retirement Profit Sharing Plan. The Company also maintains Supplemental Executive Retirement Plans (“SERPs”) and an Employees’ Pension Plan, which is currently frozen. For the three months ended March 31, salaries and employee benefits expense includes approximately $306 in 2021 and 2020 relating to the employee benefit plans. Pension Benefits Three Months Ended March 31, 2021 2020 Components of net periodic pension benefit: Interest cost $ 105 $ 54 Expected return on plan assets (322) (123) Amortization of unrecognized net gain 76 22 Net periodic benefit $ (141) $ (47) In May 2017, the Company’s stockholders approved the 2017 equity incentive plan (“2017 Plan”). The 2017 Plan allows for eligible participants to be granted equity awards. Under the 2017 Plan the Compensation Committee of the Board of Directors has the authority to, among other things: ● Select the persons to be granted awards under the 2017 Plan. ● Determine the type, size and term of awards. ● Determine whether such performance objectives and conditions have been met. ● Accelerate the vesting or excercisability of an award. Persons eligible to receive awards under the 2017 Plan include directors, officers, employees, consultants and other service providers of the Company and its subsidiaries. As of March 31, 2021, there were 37,151 shares of the Company’s common stock available for grant as awards pursuant to the 2017 Plan. If any outstanding awards under the 2017 Plan are forfeited by the holder or canceled by the Company, the underlying shares would be available for regrant to others. The 2017 Plan authorizes grants of stock options, stock appreciation rights, cash awards, performance awards, restricted stock and restricted stock units. For the three months ended March 31, 2021 and 2020, the Company granted awards of restricted stock and restricted stock units under the 2017 Plan, The non-performance restricted stock grants made in 2021, 2020 and 2019 vest equally over three years . The performance-based restricted stock units vest over three fiscal years and include conditions based on the Company’s three year cumulative diluted earnings per share and three-year average return on equity or tangible equity that determines the number of restricted stock units that may vest. The Company expenses the fair value of all-share based compensation over the requisite service period commencing at grant date. The fair value of restricted stock is expensed on a straight-line basis. Compensation is recognized over the vesting period and adjusted based on the performance criterea. The Company classifies share-based compensation for employees within “salaries and employee benefits expense” on the consolidated statements of income and comprehensive income. The Company recognized net compensation costs of $89 for the three months ended March 31, 2021 for awards granted under the 2017 Plan. The Company recognized compensation expense of $5 for the three months ended March 31, 2020 for awards granted under the 2017 Plan. As of March 31, 2021, the Company had $1,494 of unrecognized compensation expense associated with restricted stock awards. The remaining cost is expected to be recognized over a weighted average vesting period of under 2.2 years. |
Derivatives and hedging activit
Derivatives and hedging activities | 3 Months Ended |
Mar. 31, 2021 | |
Derivatives and hedging activities | |
Derivatives and hedging activities | 9. Derivatives and hedging activities Risk Management Objective of Using Derivatives The Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s derivative financial instruments are used to manage differences in the amount, timing, and duration of the Company’s known or expected cash receipts principally related to the Company’s assets. Cash Flow Hedges of Interest Rate Risk The Company’s objectives in using interest rate derivatives are to add stability to interest income/expense and to manage its exposure to interest rate movements. To accomplish this objective, the Company primarily uses interest rate swaps and floors as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Interest rate floors designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates fall below the strike rate on the contract in exchange for an up-front premium. During 2020, such derivatives were used to hedge the variable cash flows associated with existing variable-rate assets and issuances of debt. During the first quarter of 2021, the Company terminated a $50 million cash flow hedge. The termination of the cash flow hedge included a $25 early termination fee which was charged to other expenses on the statement of income and comprehensive income. The Company executed an interest rate swap to reduce its exposure to variability in the interest rate associated with floating-rate borrowings. For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense/income in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense/income as interest payments are made/received on the Company’s variable-rate debt/assets. During 2021, the Company estimates that an additional $404 will be reclassified as an increase to interest income. Non-designated Hedges Derivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting interest rate swaps that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. As of March 31, 2021, the Company had 83 interest rate swaps with an aggregate notional amount of $408,138 related to this program. Fair Values of Derivative Instruments on the Balance Sheet The table below presents the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Balance Sheets as of March 31, 2021 and December 31, 2020. Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2021 As of December 31, 2020 (1) As of March 31, 2021 As of December 31, 2020 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,455 Other Assets $ 1,678 Cash Flow Swap $ 50,000 Other Liabilities $ Other Liabilities $ 485 Total derivatives designated as hedging instruments $ 1,455 $ 1,678 $ $ 485 Derivatives not Interest Rate Swaps (3) $ 408,138 Other Assets $ 9,980 Other Assets $ 13,693 Other Liabilities $ 9,496 Other Liabilities $ 13,614 Total derivatives not $ 9,980 $ 13,693 $ 9,496 $ 13,614 (1) Assets amount does not include accrued interest receivable of $258 . (2) Liabilities amount does not include accrued interest payable of $258 . (3) Notional amount of interest rate swaps at March 31, 2020 $225,376 . Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Loss) The table below presents the effect of fair value and cash flow hedge accounting on accumulated other comprehensive income (loss) as of March 31, 2021 and March 31, 2020. Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Loss Recognized from Gain (Loss) Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2021 Income March 31, 2021 Derivatives in Cash Flow Hedging Relationships Cash Flow Swap $ 401 $ 401 Interest Expense $ (48) $ (23) (25) Interest Rate Floor (*) $ (76) $ (85) $ 9 Interest Income $ 133 $ 149 $ (16) Total $ 325 $ 316 $ 9 $ 85 $ 126 $ (41) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2020 Income March 31, 2020 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ (1,072) $ (1,104) $ 36 Interest Income $ 36 $ 52 $ (16) * Amounts disclosed are gross and not net of taxes. Effect of Fair Value and Cash Flow Hedge Accounting on the Consolidated Statements of Income and Comprehensive Income The table below presents the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2021 and March 31, 2020. Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2021 2021 2020 2020 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ 134 $ (23) $ 36 $ The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 134 $ (23) $ 36 $ Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component $ 150 $ 52 $ Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (16) $ Effect of Derivative Instruments on the Consolidated Statements of Income and Comprehensive Income The tables below present the effect of the Company’s derivative financial instruments on the Consolidated Statements of Income and Comprehensive Income for the three months ended March 31, 2021 and 2020. Amount of Gain Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Three Months Ended Three Months Ended Derivatives Not Designated as Hedging Instruments Derivative March 31, 2021 March 31, 2020 Interest Rate Swaps Interest rate swap revenue $ 405 $ (131) Fee Income Interest rate swap revenue $ 392 $ 601 Offsetting Derivatives The table below presents a gross presentation, the effects of offsetting, and a net presentation of the Company’s derivatives as of March 31, 2021 and December 31, 2020. The net amounts of derivative assets or liabilities can be reconciled to the tabular disclosure of fair value. The tabular disclosure of fair value provides the location that derivative assets and liabilities are presented on the Consolidated Balance Sheets. Offsetting of Derivative Assets as of March 31, 2021 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 11,542 $ $ 11,542 $ $ 11,542 Offsetting of Derivative Liabilities as of March 31, 2021 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 9,603 $ $ 9,603 $ $ 9,603 Offsetting of Derivative Assets as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 15,371 $ $ 15,371 $ $ 15,371 Offsetting of Derivative Liabilities as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 14,099 $ $ 14,099 $ $ 14,099 Credit-risk-related Contingent Features The Company has agreements with certain of its derivative counterparties that contain a provision where if the Company defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then the Company could also be declared in default on its derivative obligations. The Company also has agreements with certain of its derivative counterparties that contain a provision where if the Company fails to maintain its status as a well capitalized institution, then the counterparty could terminate the derivative positions and the Company would be required to settle its obligations under the agreements. As of March 31, 2021, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $484. As of December 31, 2020, the termination value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $79. The Company has minimum collateral posting thresholds with certain of its derivative counterparties, and has posted collateral of $5,850 against its obligations under these agreements as of March 31, 2021, compared to having posted collateral of $15,360 with counterparties at December 31, 2020. If the Company had breached any of these provisions it could have been required to settle its obligations under the agreements at the termination value. |
Deposits
Deposits | 3 Months Ended |
Mar. 31, 2021 | |
Deposits. | |
Deposits | 10. Deposits The major components of interest-bearing and noninterest-bearing deposits at March 31, 2021 and December 31, 2020 are summarized as follows: At the period end March 31, 2021 December 31, 2020 Interest-bearing deposits: Money market accounts $ 529,772 $ 496,634 Now accounts 584,696 567,087 Savings accounts 459,117 431,224 Time deposits less than $250 219,687 221,446 Time deposits $250 or more 95,882 98,247 Total interest-bearing deposits 1,889,154 1,814,638 Noninterest-bearing deposits 661,262 622,475 Total deposits $ 2,550,416 $ 2,437,113 The growth in deposits occurred in non-maturity deposits as demand for liquid accounts elevated due to low interest rates and economic uncertainty. Strong organic growth of core deposits from new and existing relationships, inflows of public fund deposits, proceeds of PPP loans retained on deposit by our commercial borrowers, and federal government stimulus payments contributed to the increase. Time deposits $250 thousand or more decreased due to the maturity of a few large public fund certificates of deposit. |
Borrowings
Borrowings | 3 Months Ended |
Mar. 31, 2021 | |
Borrowings | |
Borrowings | 11. Borrowings Short-term borrowings consists of FHLB advances representing overnight borrowings or with stated original terms of less than twelve months and other borrowings related to collateral held from derivative counter parties. The table below outlines short-term borrowings at March 31, 2021 and December 31, 2020: At and for the three months ended March 31, 2021 Weighted Maximum Weighted Average Ending Average Month-End Average Rate at Balance Balance Balance Rate March 31,2021 Other borrowings $ 1,980 $ 469 $ 1,980 0.07 % 0.06 % FHLB advances 50,000 50,000 50,000 0.57 0.38 Total short-term borrowings $ 51,980 $ 50,469 $ 51,980 0.57 % 0.37 % At and for the year ended December 31, 2020 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 50,000 $ 83,716 $ 179,199 1.01 % 0.40 % The Company has an agreement with the FHLB which allows for borrowings up to its maximum borrowing capacity based on a percentage of qualifying collateral assets. At March 31, 2021, the maximum borrowing capacity was $819,972 of which $64,264 was outstanding in borrowings and $230,650 was used to issue standby letters of credit to collateralize public fund deposits. At December 31, 2020, the maximum borrowing capacity was $807,042 of which $64,769 was outstanding in borrowings and $218,350 was used to issue standby letters of credit to collateralize public fund deposits. Short-term borrowings at the FHLB totaling $50,000 were paid off during the second quarter of 2021 with excess cash. Advances with the FHLB are secured under terms of a blanket collateral agreement by a pledge of FHLB stock and certain other qualifying collateral, such as investments and mortgage-backed securities and mortgage loans. Interest accrues daily on the FHLB advances based on rates of the FHLB discount notes. The overnight borrowing rate resets each day. Long-term debt consisting of advances from the FHLB at March 31, 2021 and December 31, 2020 are as follows: Interest Rate Due Fixed March 31, 2021 December 31, 2020 June 2021 1.99 $ 10,000 $ 10,000 March 2023 4.69 4,264 4,769 $ 14,264 $ 14,769 Maturities of long-term debt, by contractual maturity, for the remainder of 2021 and subsequent years are as follows: 2021 $ 11,553 2022 2,156 2023 555 $ 14,264 The advances from the FHLB totaling $14,264 are not convertible. |
Subordinated debt
Subordinated debt | 3 Months Ended |
Mar. 31, 2021 | |
Subordinated debt | |
Subordinated debt | 12. Subordinated debt On June 1, 2020, the Company sold $33,000 aggregate principal amount of Subordinated Notes due 2030 (the “2020 Notes”) to accredited investors. The 2020 Notes are intended to be treated as Tier 2 capital for regulatory capital purposes. The 2020 Notes bear interest at a rate of 5.375% per year for the first five years and then float based on a benchmark rate (as defined), provided that the interest rate applicable to the outstanding principal balance during the period the 2020 Notes are floating will at no time be less the 4.75% . Interest is payable semi-annually in arrears on June 1 and December 1 of each year, beginning on June 1, 2020, for the first five years after issuance and will be payable quarterly in arrears thereafter on March 1, June 1, September 1, and December 1. The 2020 Notes will mature on June 1, 2030 and are redeemable in whole or in part, without premium or penalty, at any time on or after June 1, 2025 and prior to June 1, 2030. Additionally, if all or any portion of the 2020 Notes cease to be deemed Tier 2 Capital, the Company may redeem, in whole and not in part, at any time upon giving not less than ten days ’ notice, an amount equal to one hundred percent ( 100% ) of the principal amount outstanding plus accrued but unpaid interest to but excluding the date fixed for redemption. Holders of the 2020 Notes may not accelerate the maturity of the 2020 Notes, except upon the bankruptcy, insolvency, liquidation, receivership or similar proceeding by or against the Company or the Bank. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2021 | |
Income taxes | |
Income taxes | 13. Income taxes The effective tax rate of the Company was 22.0% for the three months ended March 31, 2021 compared to 11.4% for the three months ended March 31, 2020. The three months ended March 31, 2021 includes a $621 deferred tax adjustment related to prior periods and the Company’s frozen pension plan. Excluding this adjustment, the effective tax rate would be 16.9%, an increase from the year ago period's 11.4% due to a lower proportion of tax exempt income recognized in the first quarter of 2021 when compared to the same period in 2020. Before tax investment tax credits amounted to $270 compared to before tax investment tax credits and other credits of $273 for the same period last year. |
Summary of significant accoun_2
Summary of significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2021 | |
Summary of significant accounting policies | |
Nature of operations | Nature of operations: Peoples Financial Services Corp., a bank holding company incorporated under the laws of Pennsylvania, provides a full range of financial services through its wholly-owned subsidiary, Peoples Security Bank and Trust Company (“Peoples Bank”), collectively, the “Company” or “Peoples”. The Company services its retail and commercial customers through |
Basis of presentation | Basis of presentation: The accompanying unaudited consolidated financial statements of the Company have been prepared in accordance with accounting principles generally accepted in the United States of America (“GAAP”) for interim financial information and with the instructions to Form 10-Q and Article 10-01 of Regulation S-X. In the opinion of management, all normal recurring adjustments necessary for a fair presentation of the consolidated financial position and results of operations for the periods presented have been included. All significant intercompany balances and transactions have been eliminated in consolidation. Prior-period amounts are reclassified when necessary to conform to the current year’s presentation. These reclassifications did not have any effect on the consolidated operating results or financial position of the Company. The consolidated operating results and financial position of the Company for the three months ended and as of March 31, 2021, are not necessarily indicative of the results of consolidated operations and financial position that may be expected in the future. The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Significant estimates that are particularly susceptible to material change in the near term relate to the determination of the allowance for loan losses, fair value of financial instruments, the valuation of real estate acquired in connection with foreclosures or in satisfaction of loans, the valuation of deferred tax assets, determination of other-than-temporary impairment losses on securities, and impairment of goodwill. Actual results could differ from those estimates. For additional information and disclosures required under GAAP, reference is made to the Company’s Annual Report on Form 10-K for the period ended December 31, 2020. |
Significant events COVID-19 | Significant events: COVID-19 Operationally, as COVID-19 related events unfold, our continued priority is the health and safety of our customers and employees. We recently worked with local government and health professionals and have had opportunities to offer our eligible employees and their family members appointments to receive the COVID-19 vaccine. We continue to follow the recommendations of our state governments as to conducting business and have maintained safety protocols. Currently all our offices have returned to pre-pandemic operating hours with limited lobby access. We participated in the Coronavirus Aid, Relief and Economic Security Act ("CARES Act"), Paycheck Protection Program (“PPP”), a $350 billion specialized low-interest loan program funded by the U.S. Treasury Department and administered by the Small Business Administration (“SBA”). During 2020, we approved 1,450 PPP loans totaling $217.5 million. Substantially all of the loans were made to existing customers, funded under the two year PPP loan program, and the loan proceeds initially were deposited with our institution. PPP loan forgiveness commenced during the fourth quarter of 2020 and we continue to process loan forgiveness applications. At March 31, 2021, we have 468 loans totaling $100.8 million remaining compared to 1,304 loans totaling $189.7 million at December 31, 2020. We expect the majority of the remaining $100.8 million to be forgiven during 2021. During the first quarter of 2021, we funded an additional 885 loans totaling $100.0 million under the SBA’s second PPP loan program. The application process for the second PPP loan program ends May 31, 2021. From a credit risk perspective, we took actions to identify and assess our COVID-19 related credit exposures based on asset class and borrower type. From the onset of the crisis, we worked to proactively monitor our loan portfolio by contacting many of our borrowers to evaluate the impact of the pandemic on them, their businesses and the underlying collateral for our loans. The Company implemented a customer payment deferral program to assist both consumer and business borrowers that may be experiencing financial hardship due to COVID-19 related challenges. At the start of the pandemic, the Company granted payment deferral requests for up to six months to a total of 481 commercial loans with outstanding loan balances of $306.9 million and to 505 consumer loans with outstanding balances of $23.3 million. Outstanding loan balances remaining in deferral at March 31, 2021 totaled $1.3 million, a decrease of $4.8 million from the $6.1 million at December 31, 2020. As a percentage of total loan balances, excluding PPP loans, loans in deferral represented less than 0.1% of loans outstanding at March 31, 2021 compared to 0.3% of loans outstanding at December 31, 2020. At March 31, 2021, commercial loan balances remaining in deferral total $1.0 million while consumer loans total $0.3 million. Loan deferrals and modifications have been executed consistent with the guidelines of the CARES Act. Pursuant to the CARES Act, loan deferrals are not included in our nonperforming loans disclosed in our financial statement footnotes. Loans in deferral status will continue to accrue interest during the deferral period unless otherwise classified as nonperforming. |
Recent accounting standards | Recent accounting standards: From time to time, new accounting pronouncements are issued by the Financial Accounting Standards Board ("FASB") or other standard setting bodies that are adopted by the Company as of the required effective dates. The following should be read in conjunction with "Note 1 Summary of significant accounting policies" of the Notes to the Consolidated Financial Statements included in the Company’s 2020 Form 10-K. Unless otherwise discussed, management believes the impact of any recently issued standards, including those issued but not yet effective, will not have a material impact on the Company’s consolidated financial statements. In June 2016, the FASB issued Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” This ASU will have a significant impact on the Company’s calculation and accounting for its allowance for loan losses as well as credit losses related to investment securities available-for-sale. A summary of significant provisions of this ASU is as follows: ● The ASU requires that a financial asset (or a group of financial assets) measured at amortized cost basis be presented, net of a valuation allowance for credit losses, at an amount expected to be collected on the financial asset(s), and that the income statement include the measurement of credit losses for newly recognized financial assets as well as changes in expected losses on previously recognized financial assets. The provisions of this ASU require measurement of expected credit losses based on relevant information including past events, historical experience, current conditions, and reasonable and supportive forecasts that affect the collectability of the asset. The provisions of this ASU differ from current GAAP in that current GAAP generally delays recognition of the full amount of credit losses until the loss is probable of occurring. ● The amendments in the ASU retain many of the disclosure requirements related to credit quality in current GAAP, updated to reflect the change from an incurred loss methodology to an expected credit loss methodology. In addition, the ASU requires that disclosure of credit quality indicators in relation to the amortized cost of financing receivables, a current requirement, be further disaggregated by year of origination. ● This ASU requires that credit losses on available-for-sale debt securities be presented as an allowance rather than as a write-down, and limits the amount of the allowance for credit losses to the amount by which the fair value is below amortized cost. For purchased investment securities available-for-sale with a more-than-insignifcant amount of credit deterioration since origination, the ASU requires an allowance be determined in a manner similar to other investment securities available-for-sale; however, the initial allowance would be added to the purchase price, with only subsequent changes in the allowance recorded in credit loss expense, and interest income recognized at the effective rate excluding the discount embedded in the purchase price related to estimated credit losses at acquisition. ● In November 2019, the FASB voted to defer the adoption date for smaller reporting companies from 2020 to 2023. At the relevant time, the Company qualified as a smaller reporting company and therefore guidance is effective for the Company in 2023. The Company will record the effect of implementing this ASU through a cumulative-effect adjustment through retained earnings as of the beginning of the reporting period in which Topic 326 is effective. We are evaluating the impact of the ASU on our consolidated financial statements. In addition to our allowance for loan losses, we will also record an allowance for credit losses on debt securities instead of applying the impairment model currently utilized. The amount of the adjustments will be impacted by each portfolio’s composition and credit quality at the adoption date as well as economic conditions and forecasts at that time. 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 optional expedients and exceptions for a limited time period to ease the potential burden in accounting for reference rate reform on financial reporting. The amendments in ASU 2020-04 are elective for entities with contracts, including derivative contracts, that reference LIBOR or some other reference rate that are expected to be discontinued. For the Company's cash flow hedges, ASU 2020-04 allows: (i) an entity to change the reference rate without having to designate the hedging relationship; (ii) for cash flow hedges in which the designated hedged risk is LIBOR, allows an entity to assert that it remains probable that the hedged forecasted transaction will occur; and (iii) allows an entity to change the designated method used to assess hedge effectiveness and simplifies or temporarily suspends the assessment of hedge effectiveness for hedging relationships. ASU 2020-04 must be applied prospectively and was effective immediately upon issuance and remains effective through December 31, 2022. The Company adopted the amendments in ASU 2020-04 as of the March 12, 2020 issuance date, on a prospective basis. The adoption did not have an immediate direct impact to the consolidated financial statements. As contracts are modified through December 2022, we will assess the impact based on this guidance. The Company does not expect there will be a material impact to the consolidated financial statements. |
Other Comprehensive Income (L_2
Other Comprehensive Income (Loss) (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other comprehensive income (loss) | |
Schedule of components of accumulated other comprehensive loss | March 31, 2021 December 31, 2020 Net unrealized gain on investment securities available-for-sale $ 1,946 $ 9,696 Income tax 409 2,036 Net of income taxes 1,537 7,660 Benefit plan adjustments (7,977) (7,977) Income tax benefit (1,675) (1,675) Net of income taxes (6,302) (6,302) Derivative adjustments 1,244 1,002 Income tax 262 211 Net of income taxes 982 791 Accumulated other comprehensive income (loss) $ (3,782) $ 2,149 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Earnings per share | |
Schedule of earnings per share | 2021 2020 For the Three Months Ended March 31 Basic Diluted Basic Diluted Net income $ 9,478 $ 9,478 $ 5,281 $ 5,281 Average common shares outstanding 7,210,952 7,246,016 7,379,438 7,405,703 Earnings per share $ 1.31 $ 1.31 $ 0.72 $ 0.71 |
Investment securities (Tables)
Investment securities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Investment Securities | |
Schedule of amortized cost and fair value of investment securities aggregated by investment category | Gross Gross Amortized Unrealized Unrealized Fair March 31, 2021 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 18,481 $ 344 $ 18,825 U.S. government-sponsored enterprises 56,620 963 57,583 State and municipals: Taxable 56,931 944 $ 1,251 56,624 Tax-exempt 70,113 2,426 779 71,760 Residential mortgage-backed securities: U.S. government agencies 3,061 125 3,186 U.S. government-sponsored enterprises 112,501 1,363 2,855 111,009 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,600 677 13,277 Corporate debt securities 1,500 2 13 1,489 Total $ 331,807 $ 6,844 $ 4,898 $ 333,753 Held-to-maturity: Tax-exempt state and municipals $ 6,848 $ 214 $ 7,062 Residential mortgage-backed securities: U.S. government agencies 18 18 U.S. government-sponsored enterprises 300 9 309 Total $ 7,166 $ 223 $ $ 7,389 Gross Gross Amortized Unrealized Unrealized Fair December 31, 2020 Cost Gains Losses Value Available-for-sale: U.S. Treasury securities $ 18,478 $ 427 $ 18,905 U.S. government-sponsored enterprises 63,834 1,354 $ 65,188 State and municipals: Taxable 53,297 2,099 30 55,366 Tax-exempt 53,977 3,054 37 56,994 Residential mortgage-backed securities: U.S. government agencies 3,553 154 3,707 U.S. government-sponsored enterprises 79,457 1,930 136 81,251 Commercial mortgage-backed securities: U.S. government-sponsored enterprises 12,619 881 13,500 Corporate debt securities 1,000 1,000 Total $ 286,215 $ 9,899 $ 203 $ 295,911 Held-to-maturity: Tax-exempt state and municipals $ 6,849 $ 275 $ $ 7,124 Residential mortgage-backed securities: U.S. government agencies 21 21 U.S. government-sponsored enterprises 355 13 368 Total $ 7,225 $ 288 $ $ 7,513 |
Schedule of fair value and unrealized losses of investment securities in continuous unrealized loss position | Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized March 31, 2021 Value Losses Value Losses Value Losses State and municipals: Taxable $ 28,025 $ 1,251 $ 28,025 $ 1,251 Tax-exempt 30,795 779 30,795 779 Residential mortgage-backed securities: U.S. government-sponsored enterprises 82,687 2,854 $ 243 $ 1 82,930 2,855 Corporate debt securities 987 13 987 13 Total $ 142,494 $ 4,897 $ 243 $ 1 $ 142,737 $ 4,898 Less Than 12 Months 12 Months or More Total Fair Unrealized Fair Unrealized Fair Unrealized December 31, 2020 Value Losses Value Losses Value Losses State and municipals: Taxable $ 9,246 $ 30 $ 9,246 $ 30 Tax-exempt 6,786 37 6,786 37 Residential mortgage-backed securities: U.S. government-sponsored enterprises 11,553 135 $ 284 $ 1 11,837 136 Total $ 27,585 $ 202 $ 284 $ 1 $ 27,869 $ 203 |
Summary of unrealized and realized gains and losses | For the Three Months Ended March 31, 2021 2020 Net gain (loss) recognized during the period on equity securities $ 21 $ (123) Less: Net gain (loss) recognized during the period on equity securities sold during the period Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date $ 21 $ (123) |
Available-for-Sale Securities. | |
Investment Securities | |
Schedule of maturity distribution of fair value | Fair March 31, 2021 Value Within one year $ 39,394 After one but within five years 41,919 After five but within ten years 25,997 After ten years 95,819 203,129 Mortgage-backed and other amortizing securities 130,624 Total $ 333,753 |
Held-to-maturity Securities. | |
Investment Securities | |
Schedule of maturity distribution of fair value | Amortized Fair March 31, 2021 Cost Value Within one year $ 175 $ 177 After five but within ten years 523 546 After ten years 6,150 6,339 6,848 7,062 Mortgage-backed securities 318 327 Total $ 7,166 $ 7,389 |
Loans, net and allowance for _2
Loans, net and allowance for loan losses (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Loans, net and allowance for loan losses | |
Schedule of major classifications of loans outstanding | March 31, 2021 December 31, 2020 Commercial $ 677,090 $ 679,286 Real estate: Commercial 1,150,567 1,137,990 Residential 273,226 277,414 Consumer 78,651 83,292 Total $ 2,179,534 $ 2,177,982 |
Schedule of changes in allowance for loan losses account by major classification of loans | Real estate March 31, 2021 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2021 $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Charge-offs (15) (96) (22) (62) (195) Recoveries 61 58 1 14 134 Provisions (credits) (565) 182 (114) (3) (500) Ending balance $ 8,215 $ 14,703 $ 2,994 $ 871 $ 26,783 Real estate March 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Beginning Balance January 1, 2020 $ 6,888 $ 11,496 $ 3,226 $ 1,067 $ 22,677 Charge-offs (650) (54) (94) (798) Recoveries 267 10 30 307 Provisions 1,464 1,511 442 83 3,500 Ending balance $ 7,969 $ 13,007 $ 3,624 $ 1,086 $ 25,686 Real estate March 31, 2021 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 8,215 $ 14,703 $ 2,994 $ 871 $ 26,783 Ending balance: individually evaluated for impairment 697 108 64 869 Ending balance: collectively evaluated for impairment $ 7,518 $ 14,595 $ 2,930 $ 871 $ 25,914 Loans receivable: Ending balance $ 677,090 $ 1,150,567 $ 273,226 $ 78,651 $ 2,179,534 Ending balance: individually evaluated for impairment 2,651 3,990 1,543 94 8,278 Ending balance: collectively evaluated for impairment $ 674,439 $ 1,146,577 $ 271,683 $ 78,557 $ 2,171,256 Real estate December 31, 2020 Commercial Commercial Residential Consumer Total Allowance for loan losses: Ending balance $ 8,734 $ 14,559 $ 3,129 $ 922 $ 27,344 Ending balance: individually evaluated for impairment 947 180 75 1,202 Ending balance: collectively evaluated for impairment $ 7,787 $ 14,379 $ 3,054 $ 922 $ 26,142 Loans receivable: Ending balance $ 679,286 $ 1,137,990 $ 277,414 $ 83,292 $ 2,177,982 Ending balance: individually evaluated for impairment 4,297 3,952 1,546 111 9,906 Ending balance: collectively evaluated for impairment $ 674,989 $ 1,134,038 $ 275,868 $ 83,181 $ 2,168,076 |
Schedule of major classification of loans portfolio summarized by credit quality | Special March 31, 2021 Pass Mention Substandard Doubtful Total Commercial $ 660,558 $ 13,728 $ 2,804 $ $ 677,090 Real estate: Commercial 1,123,315 17,615 9,637 1,150,567 Residential 269,856 619 2,751 273,226 Consumer 78,556 95 78,651 Total $ 2,132,285 $ 31,962 $ 15,287 $ $ 2,179,534 Special December 31, 2020 Pass Mention Substandard Doubtful Total Commercial $ 660,559 $ 14,305 $ 4,422 $ $ 679,286 Real estate: Commercial 1,107,699 17,517 12,774 1,137,990 Residential 274,327 144 2,943 277,414 Consumer 83,215 77 83,292 Total $ 2,125,800 $ 31,966 $ 20,216 $ $ 2,177,982 |
Schedule of information concerning nonaccrual loans by major loan classification | March 31, 2021 December 31, 2020 Commercial $ 2,198 $ 3,822 Real estate: Commercial 3,311 3,262 Residential 825 922 Consumer 94 111 Total $ 6,428 $ 8,117 |
Schedule of major classifications of loans by past due status | Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and March 31, 2021 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 150 $ 2,198 $ 2,348 $ 674,742 $ 677,090 Real estate: Commercial 343 $ 57 3,311 3,711 1,146,856 1,150,567 Residential 1,444 996 2,440 270,786 273,226 $ 171 Consumer 151 37 94 282 78,369 78,651 Total $ 2,088 $ 94 $ 6,599 $ 8,781 $ 2,170,753 $ 2,179,534 $ 171 Improved credit quality resulted in lower levels of past due loans from year end. The addition of Greater Loans > 90 30-59 Days 60-89 Days than 90 Total Past Days and December 31, 2020 Past Due Past Due Days Due Current Total Loans Accruing Commercial $ 73 $ 3,822 $ 3,895 $ 675,391 $ 679,286 Real estate: Commercial 344 $ 134 3,262 3,740 1,134,250 1,137,990 Residential 2,072 480 993 3,545 273,869 277,414 $ 71 Consumer 374 63 111 548 82,744 83,292 Total $ 2,863 $ 677 $ 8,188 $ 11,728 $ 2,166,254 $ 2,177,982 $ 71 |
Summarized information concerning impaired loans | For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2021 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 673 $ 1,108 $ 1,462 $ 4 Real estate: Commercial 3,280 4,051 2,826 6 Residential 1,121 1,241 1,104 6 Consumer 94 105 103 Total 5,168 6,505 5,495 16 With an allowance recorded: Commercial 1,978 2,041 697 2,012 5 Real estate: Commercial 710 796 108 1,145 4 Residential 422 457 64 441 4 Consumer Total 3,110 3,294 869 3,598 13 Total impaired loans Commercial 2,651 3,149 697 3,474 9 Real estate: Commercial 3,990 4,847 108 3,971 10 Residential 1,543 1,698 64 1,545 10 Consumer 94 105 103 Total $ 8,278 $ 9,799 $ 869 $ 9,093 $ 29 For the Year Ended Unpaid Average Interest Recorded Principal Related Recorded Income December 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 2,251 $ 3,421 $ 2,915 $ 30 Real estate: Commercial 2,372 2,964 2,148 28 Residential 1,086 1,263 1,223 21 Consumer 111 121 167 Total 5,820 7,769 6,453 79 With an allowance recorded: Commercial 2,046 2,094 947 2,038 17 Real estate: Commercial 1,580 1,710 180 1,687 36 Residential 460 482 75 624 13 Consumer Total 4,086 4,286 1,202 4,349 66 Total impaired loans Commercial 4,297 5,515 947 4,953 47 Real estate: Commercial 3,952 4,674 180 3,835 64 Residential 1,546 1,745 75 1,847 34 Consumer 111 121 167 Total $ 9,906 $ 12,055 $ 1,202 $ 10,802 $ 145 For the Quarter Ended Unpaid Average Interest Recorded Principal Related Recorded Income March 31, 2020 Investment Balance Allowance Investment Recognized With no related allowance: Commercial $ 3,706 $ 4,249 $ 3,672 $ 16 Real estate: Commercial 2,263 2,574 2,091 5 Residential 1,129 1,369 1,424 5 Consumer 201 219 231 Total 7,299 8,411 7,418 26 With an allowance recorded: Commercial 1,956 1,974 $ 764 1,488 6 Real estate: Commercial 1,263 1,924 270 1,197 Residential 706 735 192 571 4 Consumer Total 3,925 4,633 1,226 3,256 10 Total impaired loans Commercial 5,662 6,223 764 5,160 22 Real estate: Commercial 3,526 4,498 270 3,288 5 Residential 1,835 2,104 192 1,995 9 Consumer 201 219 231 Total $ 11,224 $ 13,044 $ 1,226 $ 10,674 $ 36 |
Other assets (Tables)
Other assets (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Other assets | |
Schedule of components of other assets | March 31, 2021 December 31, 2020 Other real estate owned $ 362 $ 864 Investment in low income housing partnership 6,212 6,332 Mortgage servicing rights 833 838 Restricted equity securities (FHLB and other) 5,461 5,397 Net deferred tax asset 4,724 3,768 Interest rate floor 1,455 1,678 Interest rate swaps 10,239 13,693 Other assets 6,860 6,345 Total $ 36,146 $ 38,915 |
Fair value estimates (Tables)
Fair value estimates (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Fair value estimates | |
Schedule of assets and liabilities measured at fair value on a recurring basis | Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2021 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 18,825 $ 18,825 $ U.S. government-sponsored enterprises 57,583 $ 57,583 State and municipals: Taxable 56,624 56,624 Tax-exempt 71,760 71,760 Mortgage-backed securities: U.S. government agencies 3,186 3,186 U.S. government-sponsored enterprises 124,286 124,286 Corporate debt securities 1,489 1,489 Common equity securities 159 159 Total investment securities $ 333,912 $ 18,984 $ 314,928 $ Loan held for sale $ 458 $ 458 Interest rate floor-other assets $ 1,455 $ 1,455 Interest rate swap-other assets $ 9,980 $ 9,980 Interest rate swap-other liabilities $ (9,496) $ (9,496) Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) U.S. Treasury securities $ 18,905 $ 18,905 $ U.S. government-sponsored enterprises 65,188 $ 65,188 State and municipals: Taxable 55,366 55,366 Tax-exempt 56,994 56,994 Mortgage-backed securities: U.S. government agencies 3,707 3,707 U.S. government-sponsored enterprises 94,751 94,751 Corporate debt securities 1,000 1,000 Common equity securities 138 138 Total investment securities $ 296,049 $ 19,043 $ 277,006 $ Loan held for sale $ 837 $ 837 Interest rate floor-other assets $ 1,678 $ 1,678 Interest rate swap-other assets $ 13,693 $ 13,693 Interest rate swap-other liabilities $ (14,099) $ (14,099) |
Schedule of assets and liabilities measured at fair value on a nonrecurring basis | Fair Value Measurement Using Quoted Prices in Significant Significant Active Markets for Other Observable Unobservable Identical Assets Inputs Inputs March 31, 2021 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,241 $ 2,241 Other real estate owned $ 131 $ 131 Fair Value Measurement Using Quoted Prices in Significant Other Significant Active Markets for Observable Unobservable Identical Assets Inputs Inputs December 31, 2020 Amount (Level 1) (Level 2) (Level 3) Impaired loans $ 2,884 $ 2,884 Other real estate owned $ 527 $ 527 |
Schedule of additional quantitative information about assets measured at fair value on a nonrecurring basis | Quantitative Information about Level 3 Fair Value Measurements Fair Value Range March 31, 2021 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,241 Appraisal of collateral Appraisal adjustments 17.9% to 97.0% (24.8)% Liquidation expenses 3.0% to 6.0% (5.5)% Other real estate owned $ 131 Appraisal of collateral Appraisal adjustments 20.0% to 58.1% (39.5)% Liquidation expenses 3.0% to 6.0% (5.0)% Quantitative Information about Level 3 Fair Value Measurements Fair Value Range December 31, 2020 Estimate Valuation Techniques Unobservable Input (Weighted Average) Impaired loans $ 2,884 Appraisal of collateral Appraisal adjustments 9.0% to 97.0% (28.2)% Liquidation expenses 3.0% to 6.0% (5.5)% Other real estate owned $ 527 Appraisal of collateral Appraisal adjustments 3.1% to 58.1% (29.9)% Liquidation expenses 3.0% to 6.0% (5.0)% |
Schedule of carrying and fair values of financial instruments | Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs March 31, 2021 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 303,318 $ 303,318 $ 303,318 Investment securities: Available-for-sale 333,753 333,753 18,825 $ 314,928 Common equity securities 159 159 159 Held-to-maturity 7,166 7,389 7,389 Loans held for sale 458 458 458 Net loans 2,152,751 2,133,875 $ 2,133,875 Accrued interest receivable 8,206 8,206 8,206 Mortgage servicing rights 833 1,261 1,261 Restricted equity securities (FHLB and other) 5,461 5,461 5,461 Interest rate floor 1,455 1,455 1,455 Interest rate swaps 9,980 9,980 9,980 Total $ 2,823,540 $ 2,805,315 Financial liabilities: Deposits $ 2,550,416 $ 2,552,977 $ 2,552,977 Long-term debt 14,264 14,481 14,481 Subordinated debentures 33,000 32,574 32,574 Accrued interest payable 1,120 1,120 1,120 Interest rate swaps 9,496 9,496 9,496 Total $ 2,608,296 $ 2,610,648 Fair Value Hierarchy Quoted Prices in Active Significant Markets for Other Significant Identical Observable Unobservable Carrying Fair Assets Inputs Inputs December 31, 2020 Value Value (level 1) (level 2) (Level 3) Financial assets: Cash and due from banks $ 228,192 $ 228,192 $ 228,192 Investment securities: Available-for-sale 295,911 295,911 18,905 $ 277,006 Common equity securities 138 138 138 Held-to-maturity 7,225 7,513 7,513 Loans held for sale 837 837 837 Net loans 2,150,638 2,145,752 $ 2,145,752 Accrued interest receivable 8,255 8,255 8,255 Mortgage servicing rights 838 1,269 1,269 Restricted equity securities (FHLB and other) 5,397 5,397 5,397 Interest rate floor 1,678 1,678 1,678 Interest rate swaps 13,693 13,693 13,693 Total $ 2,712,802 $ 2,708,635 Financial liabilities: Deposits $ 2,437,113 $ 2,441,014 $ 2,441,014 Long-term debt 14,769 15,073 15,073 Subordinated debentures 33,000 33,096 33,096 Accrued interest payable 736 736 736 Interest rate swaps 14,099 14,099 14,099 Total $ 2,499,717 $ 2,504,018 |
Employee benefit plans (Tables)
Employee benefit plans (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Employee benefit plans | |
Schedule of components of net periodic benefit cost | Pension Benefits Three Months Ended March 31, 2021 2020 Components of net periodic pension benefit: Interest cost $ 105 $ 54 Expected return on plan assets (322) (123) Amortization of unrecognized net gain 76 22 Net periodic benefit $ (141) $ (47) |
Derivatives and hedging activ_2
Derivatives and hedging activities (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Derivatives and hedging activities | |
Schedule of fair value of derivative financial instruments and balance sheet classification | Asset Derivatives Asset Derivatives Liability Derivatives Liability Derivatives As of March 31, 2021 As of December 31, 2020 (1) As of March 31, 2021 As of December 31, 2020 (2) Notional Balance Sheet Balance Sheet Balance Sheet Balance Sheet Amount Location Fair Value Location Fair Value Location Fair Value Location Fair Value Derivatives designated as hedging instruments Interest Rate Floor $ 25,000 Other Assets $ 1,455 Other Assets $ 1,678 Cash Flow Swap $ 50,000 Other Liabilities $ Other Liabilities $ 485 Total derivatives designated as hedging instruments $ 1,455 $ 1,678 $ $ 485 Derivatives not Interest Rate Swaps (3) $ 408,138 Other Assets $ 9,980 Other Assets $ 13,693 Other Liabilities $ 9,496 Other Liabilities $ 13,614 Total derivatives not $ 9,980 $ 13,693 $ 9,496 $ 13,614 (1) Assets amount does not include accrued interest receivable of $258 . (2) Liabilities amount does not include accrued interest payable of $258 . (3) Notional amount of interest rate swaps at March 31, 2020 $225,376 . |
Schedule of effect of fair value and cash flow hedge accounting on accumulated other comprehensive income | Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Loss Recognized from Gain (Loss) Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2021 Income March 31, 2021 Derivatives in Cash Flow Hedging Relationships Cash Flow Swap $ 401 $ 401 Interest Expense $ (48) $ (23) (25) Interest Rate Floor (*) $ (76) $ (85) $ 9 Interest Income $ 133 $ 149 $ (16) Total $ 325 $ 316 $ 9 $ 85 $ 126 $ (41) Location of Amount of Amount of Amount of Amount of Amount of Gain or (Loss) Amount of Gain Loss Gain Gain Gain Recognized from Loss Reclassified Reclassified Recognized in Recognized in Recognized in Accumulated Reclassified from Accumulated from Accumulated Derivatives in OCI on OCI Included OCI Excluded Other Comprehensive from Accumulated OCI into Income OCI into Income Hedging Derivative Component Component Income into OCI into Income Included Component Excluded Component Relationships March 31, 2020 Income March 31, 2020 Derivatives in Cash Flow Hedging Relationships Interest Rate Floor (*) $ (1,072) $ (1,104) $ 36 Interest Income $ 36 $ 52 $ (16) * Amounts disclosed are gross and not net of taxes. |
Schedule of effect of derivative financial instruments on Income Statement | Location and Amount of Gain or (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships 2021 2021 2020 2020 Interest Income Interest Expense Interest Income Interest Expense Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded $ 134 $ (23) $ 36 $ The effects of fair value and cash flow hedging: Gain or (loss) on cash flow hedging relationships Interest contracts Amount of gain or (loss) reclassified from accumulated other comprehensive income into income $ 134 $ (23) $ 36 $ Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component $ 150 $ 52 $ Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component $ (16) $ (16) $ |
Schedule of gain (loss) on derivative instruments not designated as hedging instruments | Amount of Gain Amount of Loss Recognized in Recognized in Location of Gain or (Loss) Income Income Recognized in Income on Three Months Ended Three Months Ended Derivatives Not Designated as Hedging Instruments Derivative March 31, 2021 March 31, 2020 Interest Rate Swaps Interest rate swap revenue $ 405 $ (131) Fee Income Interest rate swap revenue $ 392 $ 601 |
Schedule of offsetting derivatives | Offsetting of Derivative Assets as of March 31, 2021 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 11,542 $ $ 11,542 $ $ 11,542 Offsetting of Derivative Liabilities as of March 31, 2021 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 9,603 $ $ 9,603 $ $ 9,603 Offsetting of Derivative Assets as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 15,371 $ $ 15,371 $ $ 15,371 Offsetting of Derivative Liabilities as of December 31, 2020 Gross Amounts Not Offset in the Balance Sheet Gross Net Amounts Amounts of Gross Amounts of Assets Recognized Offset in the presented in the Financial Cash Collateral Net Assets Balance Sheet Balance Sheet Instruments Received Amount Derivatives $ 14,099 $ $ 14,099 $ $ 14,099 |
Deposits (Tables)
Deposits (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Deposits. | |
Summary of major components of interest-bearing and noninterest-bearing deposits | At the period end March 31, 2021 December 31, 2020 Interest-bearing deposits: Money market accounts $ 529,772 $ 496,634 Now accounts 584,696 567,087 Savings accounts 459,117 431,224 Time deposits less than $250 219,687 221,446 Time deposits $250 or more 95,882 98,247 Total interest-bearing deposits 1,889,154 1,814,638 Noninterest-bearing deposits 661,262 622,475 Total deposits $ 2,550,416 $ 2,437,113 |
Borrowings (Tables)
Borrowings (Tables) | 3 Months Ended |
Mar. 31, 2021 | |
Borrowings | |
Summary of short-term borrowings | At and for the three months ended March 31, 2021 Weighted Maximum Weighted Average Ending Average Month-End Average Rate at Balance Balance Balance Rate March 31,2021 Other borrowings $ 1,980 $ 469 $ 1,980 0.07 % 0.06 % FHLB advances 50,000 50,000 50,000 0.57 0.38 Total short-term borrowings $ 51,980 $ 50,469 $ 51,980 0.57 % 0.37 % At and for the year ended December 31, 2020 Weighted Weighted Maximum Average Average Ending Average Month-End Rate for Rate at End Balance Balance Balance the Year of the Year FHLB advances $ 50,000 $ 83,716 $ 179,199 1.01 % 0.40 % |
Schedule of long-term debt consisting of advances | Interest Rate Due Fixed March 31, 2021 December 31, 2020 June 2021 1.99 $ 10,000 $ 10,000 March 2023 4.69 4,264 4,769 $ 14,264 $ 14,769 |
Schedule of maturities of long-term debt | 2021 $ 11,553 2022 2,156 2023 555 $ 14,264 |
Summary of significant accoun_3
Summary of significant accounting policies - Nature of operations and Basis of presentation (Details) | 3 Months Ended |
Mar. 31, 2021Office | |
Summary of significant accounting policies | |
Number of full-service community banking offices | 26 |
Summary of significant accoun_4
Summary of significant accounting policies - Recent accounting standards (Details) $ in Millions | May 06, 2020USD ($)customer | Mar. 31, 2021USD ($)customerloan | Dec. 31, 2020USD ($)loan | Mar. 31, 2020USD ($) |
Maximum loan receivable deferred period | 6 months | |||
Number of business loans with payment deferrals granted | customer | 6 | |||
Loan receivable balances where payment deferrals were granted | $ (4.8) | $ 6.1 | ||
Outstanding loan balance in deferral | $ 1.3 | |||
SBA PPP | ||||
Number of loan forgiveness pending | loan | 468 | 1,304 | ||
Amount of loan forgiveness pending | $ 100.8 | $ 189.7 | ||
Maximum | ||||
Percentage of total loan portfolio | 0.10% | |||
PPP | ||||
Percentage of total loan portfolio | 0.30% | |||
PPP | SBA PPP | ||||
Number of loan applications | loan | 1,450 | |||
Amount of loans approved | $ 217.5 | |||
PPP | Maximum | ||||
Percentage of total loan portfolio | 0.10% | |||
PPP Two | SBA PPP | ||||
Number of loan applications | loan | 885 | |||
Amount of loans approved | $ 100 | |||
Commercial loans | ||||
Number of business loans with payment deferrals granted | customer | 481 | 6 | ||
Loan receivable balances where payment deferrals were granted | $ 306.9 | |||
Outstanding loan balance in deferral | $ 1 | |||
Consumer Loan | ||||
Number of business loans with payment deferrals granted | customer | 505 | 15 | ||
Loan receivable balances where payment deferrals were granted | $ 23.3 | |||
Outstanding loan balance in deferral | $ 0.3 |
Other Comprehensive Income (L_3
Other Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Other comprehensive income (loss) | ||
Net unrealized gain on investment securities available-for-sale | $ 1,946 | $ 9,696 |
Income tax | 409 | 2,036 |
Net of income taxes | 1,537 | 7,660 |
Benefit plan adjustments | (7,977) | (7,977) |
Income tax benefit | 1,675 | 1,675 |
Net of income taxes | (6,302) | (6,302) |
Derivative adjustments | 1,244 | 1,002 |
Income tax | 262 | 211 |
Net of income taxes | 982 | 791 |
Accumulated other comprehensive income (loss) | $ (3,782) | $ 2,149 |
Earnings per share - Schedule o
Earnings per share - Schedule of Earnings per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Earnings per share | ||
Net income, Basic | $ 9,478 | $ 5,281 |
Average common shares outstanding - basic | 7,210,952 | 7,379,438 |
Net income - basic | $ 1.31 | $ 0.72 |
Net income, Diluted | $ 9,478 | $ 5,281 |
Average common shares outstanding - diluted | 7,246,016 | 7,405,703 |
Net income - diluted | $ 1.31 | $ 0.71 |
Investment securities - Amortiz
Investment securities - Amortized Cost and Fair Value of Investment Securities Aggregated by Investment Category (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment Securities | ||
Available-for-sale, Amortized Cost | $ 331,807 | $ 286,215 |
Available-for-sale, Gross Unrealized Gains | 6,844 | 9,899 |
Available-for-sale, Gross Unrealized Losses | 4,898 | 203 |
Available-for-sale, Fair Value | 333,753 | 295,911 |
Held-to-maturity, Amortized Cost | 7,166 | 7,225 |
Held-to-maturity, Gross Unrealized Gains | 223 | 288 |
Held-to-maturity, Fair value | 7,389 | 7,513 |
U.S. Treasuries | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 18,481 | 18,478 |
Available-for-sale, Gross Unrealized Gains | 344 | 427 |
Available-for-sale, Fair Value | 18,825 | 18,905 |
U.S. government-sponsored enterprises state and municipals | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 56,620 | 63,834 |
Available-for-sale, Gross Unrealized Gains | 963 | 1,354 |
Available-for-sale, Fair Value | 57,583 | 65,188 |
Mortgage-backed Securities, U.S. government agencies | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 3,061 | 3,553 |
Available-for-sale, Gross Unrealized Gains | 125 | 154 |
Available-for-sale, Fair Value | 3,186 | 3,707 |
Held-to-maturity, Amortized Cost | 18 | 21 |
Held-to-maturity, Fair value | 18 | 21 |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 112,501 | 79,457 |
Available-for-sale, Gross Unrealized Gains | 1,363 | 1,930 |
Available-for-sale, Gross Unrealized Losses | 2,855 | 136 |
Available-for-sale, Fair Value | 111,009 | 81,251 |
Held-to-maturity, Amortized Cost | 300 | 355 |
Held-to-maturity, Gross Unrealized Gains | 9 | 13 |
Held-to-maturity, Fair value | 309 | 368 |
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 12,600 | 12,619 |
Available-for-sale, Gross Unrealized Gains | 677 | 881 |
Available-for-sale, Fair Value | 13,277 | 13,500 |
Corporate debt securities | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 1,500 | 1,000 |
Available-for-sale, Gross Unrealized Gains | 2 | |
Available-for-sale, Gross Unrealized Losses | 13 | |
Available-for-sale, Fair Value | 1,489 | 1,000 |
State and Municipals, Taxable | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 56,931 | 53,297 |
Available-for-sale, Gross Unrealized Gains | 944 | 2,099 |
Available-for-sale, Gross Unrealized Losses | 1,251 | 30 |
Available-for-sale, Fair Value | 56,624 | 55,366 |
State and Municipals, Tax-exempt | ||
Investment Securities | ||
Available-for-sale, Amortized Cost | 70,113 | 53,977 |
Available-for-sale, Gross Unrealized Gains | 2,426 | 3,054 |
Available-for-sale, Gross Unrealized Losses | 779 | 37 |
Available-for-sale, Fair Value | 71,760 | 56,994 |
Held-to-maturity, Amortized Cost | 6,848 | 6,849 |
Held-to-maturity, Gross Unrealized Gains | 214 | 275 |
Held-to-maturity, Fair value | $ 7,062 | $ 7,124 |
Investment securities - Equity
Investment securities - Equity Securities Portfolio (Details) $ in Thousands | Mar. 31, 2021USD ($)security | Dec. 31, 2020USD ($) |
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Number of equity securities portfolio consisting of stock of other financial institutions | security | 1 | |
Equity investments carried at fair value | $ 159 | $ 138 |
Fair value of equity portfolio in excess of cost basis | 5 | |
Common equity securities. | ||
Schedule of Trading Securities and Other Trading Assets [Line Items] | ||
Equity investments carried at fair value | $ 159 | $ 138 |
Investment securities - Unreali
Investment securities - Unrealized and realized gains and losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Investment securities | ||
Net gain (loss) recognized during the period on equity securities | $ 21 | $ (123) |
Unrealized gain (loss) recognized during the reporting period on equity securities still held at the reporting date | $ 21 | $ (123) |
Investment securities - Maturit
Investment securities - Maturity Distribution of Debt Securities Classified as Available-for-Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment securities | ||
Within one year | $ 39,394 | |
After one but within five years | 41,919 | |
After five but within ten years | 25,997 | |
After ten years | 95,819 | |
Available for sale securities | 203,129 | |
Mortgage-backed and other amortizing securities | 130,624 | |
Total | $ 333,753 | $ 295,911 |
Investment securities - Summary
Investment securities - Summary of Amortized Cost and Fair Value of Securities by Contractual Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Amortized Cost of Held-to-maturity Securities | ||
Amortized Cost, Within one year, Held to Maturity | $ 175 | |
Amortized Cost, After five but within ten years, Held to maturity | 523 | |
Amortized Cost, After ten years, Held to maturity | 6,150 | |
Amortized Cost, Held to maturity | 6,848 | |
Amortized Cost, Mortgage-backed securities, Held to maturity | 318 | |
Held-to-maturity, Amortized Cost | 7,166 | $ 7,225 |
Fair Value of Held-to-maturity Securities | ||
Fair Value, Within one year, Held to Maturity | 177 | |
Fair Value, After five but within ten years, Held to maturity | 546 | |
Fair Value, After ten years, Held to maturity | 6,339 | |
Fair Value, Held to maturity | 7,062 | |
Fair Value, Mortgage-backed securities, Held to maturity | 327 | |
Held to maturity, Fair Value | $ 7,389 | $ 7,513 |
Investment securities - Pledged
Investment securities - Pledged Securities (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale and Held-to-maturity securities | ||
Carrying value of securities pledged | us-gaap:AssetPledgedAsCollateralMember | us-gaap:AssetPledgedAsCollateralMember |
Collateral Pledged | ||
Available-for-sale and Held-to-maturity securities | ||
Carrying value of securities pledged | $ 174,711 | $ 165,982 |
Investment securities - Fair Va
Investment securities - Fair Value and Unrealized Losses of Investment Securities in Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | $ 142,494 | $ 27,585 |
12 Months or More, Fair Value | 243 | 284 |
Less Than 12 Months, Unrealized Losses | 4,897 | 202 |
12 Months or More, Unrealized Losses | 1 | 1 |
Total, Fair Value | 142,737 | 27,869 |
Total, Unrealized Losses | 4,898 | 203 |
State and Municipals, Taxable | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 28,025 | 9,246 |
Less Than 12 Months, Unrealized Losses | 1,251 | 30 |
Total, Fair Value | 28,025 | 9,246 |
Total, Unrealized Losses | 1,251 | 30 |
State and Municipals, Tax-exempt | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 30,795 | 6,786 |
Less Than 12 Months, Unrealized Losses | 779 | 37 |
Total, Fair Value | 30,795 | 6,786 |
Total, Unrealized Losses | 779 | 37 |
Commercial mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 82,687 | |
12 Months or More, Fair Value | 243 | |
Less Than 12 Months, Unrealized Losses | 2,854 | |
12 Months or More, Unrealized Losses | 1 | |
Total, Fair Value | 82,930 | |
Total, Unrealized Losses | 2,855 | |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 11,553 | |
12 Months or More, Fair Value | 284 | |
Less Than 12 Months, Unrealized Losses | 135 | |
12 Months or More, Unrealized Losses | 1 | |
Total, Fair Value | 11,837 | |
Total, Unrealized Losses | $ 136 | |
Corporate debt securities | ||
Available-for-sale and Held-to-maturity securities | ||
Less Than 12 Months, Fair Value | 987 | |
Less Than 12 Months, Unrealized Losses | 13 | |
Total, Fair Value | 987 | |
Total, Unrealized Losses | $ 13 |
Investment securities - Additio
Investment securities - Additional Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021USD ($)securityshares | Mar. 31, 2020USD ($) | Dec. 31, 2020USD ($) | |
Other-than-temporary impairments recognized | $ 0 | ||
Common Stock, Value, Issued | $ 14,423 | $ 14,431 | |
Visa Class A stock | |||
Conversion ratio of common stock | 1.6228 | ||
Visa Class B stock | |||
Shares held | shares | 44,982 | ||
Common Stock, Value, Issued | $ 0 | 0 | |
Federal Home Loan Bank of Pittsburgh (FHLB) | |||
Common Stock, Value, Issued | 5,419 | 5,355 | |
Atlantic Community Bankers Bank (ACBB) | |||
Common Stock, Value, Issued | 42 | $ 42 | |
U.S. government-sponsored enterprises state and municipals | |||
Other-than-temporary impairments recognized | $ 0 | $ 0 | |
Maximum percentage of stockholders' equity exceeded for securities of any individual issuer | 10.00% | 10.00% | |
Mortgage-backed Securities, U.S. government-sponsored enterprises | |||
Number of securities in continuous unrealized loss position | security | 15 | ||
Number of securities in continuous unrealized loss positions 12 months or longer | security | 2 | ||
State and Municipals, Taxable | |||
Number of securities in continuous unrealized loss position | security | 28 | ||
State and Municipals, Taxable | Corporate Bonds | |||
Number of securities in continuous unrealized loss position | security | 2 | ||
State and Municipals, Tax-exempt | |||
Number of securities in continuous unrealized loss position | security | 44 |
Loans, net and allowance for _3
Loans, net and allowance for loan losses - Net Deferred Loan Costs (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Net deferred loan costs | $ 2,684 | $ 2,058 |
Loans | 2,179,534 | 2,177,982 |
Commercial | ||
Loans | 677,090 | 679,286 |
Real estate Commercial | ||
Loans | 1,150,567 | 1,137,990 |
Real estate Residential | ||
Loans | 273,226 | 277,414 |
Consumer | ||
Loans | 78,651 | $ 83,292 |
Initial PPP | ||
Loans | 100,000 | |
PPP | ||
Loans | 200,774 | |
PPP Two | ||
Loans | 99,984 | |
PPP One | ||
Loans | $ 100,790 |
Loans, net and allowance for _4
Loans, net and allowance for loan losses - Major Classifications of Loans Outstanding (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 2,179,534 | $ 2,177,982 |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 677,090 | 679,286 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,150,567 | 1,137,990 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 273,226 | 277,414 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 78,651 | $ 83,292 |
Loans, net and allowance for _5
Loans, net and allowance for loan losses - Changes in Allowance for Loan Losses Account by Major Classification of Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Allowance for loan losses: | |||
Beginning Balance | $ 27,344 | $ 22,677 | $ 22,677 |
Charge-offs | (195) | (798) | |
Recoveries | 134 | 307 | |
Provisions (credits) | (500) | 3,500 | |
Ending balance | 26,783 | 25,686 | $ 27,344 |
Allowance for credit losses increase (decrease) | $ 600 | ||
Allowance for credit losses increase (decrease) percentage | 2.10% | ||
Increase (decrease) in allowance for credit loss on financing receivable from improved credit quality | $ 500 | ||
Percentage of allowance for loan losses | 1.23% | 1.26% | |
Percentage of PPP loans to total loans | 1.35% | ||
Allowance for Loan and Lease Losses Write-offs, Net | $ 100 | $ 500 | |
Percentage of allowance for loan losses, charge offs net of recoveries to average loans | 0.01% | 0.10% | |
Commercial | |||
Allowance for loan losses: | |||
Beginning Balance | $ 8,734 | $ 6,888 | $ 6,888 |
Charge-offs | (15) | (650) | |
Recoveries | 61 | 267 | |
Provisions (credits) | (565) | 1,464 | |
Ending balance | 8,215 | 7,969 | 8,734 |
Allowance for Loan and Lease Losses Write-offs, Net | 600 | ||
Real estate Commercial | |||
Allowance for loan losses: | |||
Beginning Balance | 14,559 | 11,496 | 11,496 |
Charge-offs | (96) | ||
Recoveries | 58 | ||
Provisions (credits) | 182 | 1,511 | |
Ending balance | 14,703 | 13,007 | 14,559 |
Real estate Residential | |||
Allowance for loan losses: | |||
Beginning Balance | 3,129 | 3,226 | 3,226 |
Charge-offs | (22) | (54) | |
Recoveries | 1 | 10 | |
Provisions (credits) | (114) | 442 | |
Ending balance | 2,994 | 3,624 | 3,129 |
Consumer | |||
Allowance for loan losses: | |||
Beginning Balance | 922 | 1,067 | 1,067 |
Charge-offs | (62) | (94) | |
Recoveries | 14 | 30 | |
Provisions (credits) | (3) | 83 | |
Ending balance | $ 871 | $ 1,086 | $ 922 |
Loans, net and allowance for _6
Loans, net and allowance for loan losses - Allocation of Allowance for Loan Losses and Related Loans by Major Classification of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 | Mar. 31, 2020 | Dec. 31, 2019 |
Allowance for loan losses: | ||||
Ending balance | $ 26,783 | $ 27,344 | $ 25,686 | $ 22,677 |
Ending balance: individually evaluated for impairment | 869 | 1,202 | ||
Ending balance: collectively evaluated for impairment | 25,914 | 26,142 | ||
Loans receivable: | ||||
Ending balance | 2,179,534 | 2,177,982 | ||
Ending balance: individually evaluated for impairment | 8,278 | 9,906 | ||
Ending balance: collectively evaluated for impairment | 2,171,256 | 2,168,076 | ||
Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 8,215 | 8,734 | 7,969 | 6,888 |
Ending balance: individually evaluated for impairment | 697 | 947 | ||
Ending balance: collectively evaluated for impairment | 7,518 | 7,787 | ||
Loans receivable: | ||||
Ending balance | 677,090 | 679,286 | ||
Ending balance: individually evaluated for impairment | 2,651 | 4,297 | ||
Ending balance: collectively evaluated for impairment | 674,439 | 674,989 | ||
Real estate Commercial | ||||
Allowance for loan losses: | ||||
Ending balance | 14,703 | 14,559 | 13,007 | 11,496 |
Ending balance: individually evaluated for impairment | 108 | 180 | ||
Ending balance: collectively evaluated for impairment | 14,595 | 14,379 | ||
Loans receivable: | ||||
Ending balance | 1,150,567 | 1,137,990 | ||
Ending balance: individually evaluated for impairment | 3,990 | 3,952 | ||
Ending balance: collectively evaluated for impairment | 1,146,577 | 1,134,038 | ||
Real estate Residential | ||||
Allowance for loan losses: | ||||
Ending balance | 2,994 | 3,129 | 3,624 | 3,226 |
Ending balance: individually evaluated for impairment | 64 | 75 | ||
Ending balance: collectively evaluated for impairment | 2,930 | 3,054 | ||
Loans receivable: | ||||
Ending balance | 273,226 | 277,414 | ||
Ending balance: individually evaluated for impairment | 1,543 | 1,546 | ||
Ending balance: collectively evaluated for impairment | 271,683 | 275,868 | ||
Consumer | ||||
Allowance for loan losses: | ||||
Ending balance | 871 | 922 | $ 1,086 | $ 1,067 |
Ending balance: collectively evaluated for impairment | 871 | 922 | ||
Loans receivable: | ||||
Ending balance | 78,651 | 83,292 | ||
Ending balance: individually evaluated for impairment | 94 | 111 | ||
Ending balance: collectively evaluated for impairment | $ 78,557 | $ 83,181 |
Loans, net and allowance for _7
Loans, net and allowance for loan losses - Major Classification of Loans Portfolio Summarized by Credit Quality (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021USD ($)loan | Dec. 31, 2020USD ($) | |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 2,179,534 | $ 2,177,982 |
Decrease in charge offs due to a partial write down of a non-accrual commercial relationship | 1,500 | |
Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 677,090 | 679,286 |
Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,150,567 | 1,137,990 |
Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 273,226 | 277,414 |
Number of loans added to loans greater than 90 days and accruing | loan | 1 | |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 78,651 | 83,292 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,132,285 | 2,125,800 |
Pass | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 660,558 | 660,559 |
Pass | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,123,315 | 1,107,699 |
Pass | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 269,856 | 274,327 |
Pass | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 78,556 | 83,215 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 31,962 | 31,966 |
Special Mention | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 13,728 | 14,305 |
Special Mention | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 17,615 | 17,517 |
Special Mention | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 619 | 144 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 15,287 | 20,216 |
Substandard | Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,804 | 4,422 |
Increase (decrease) in loans and leases receivable | 1,500 | |
Substandard | Real estate Commercial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 9,637 | 12,774 |
Substandard | Real estate Residential | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,751 | 2,943 |
Substandard | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 95 | $ 77 |
Loans, net and allowance for _8
Loans, net and allowance for loan losses - Information Concerning Nonaccrual Loans by Major Loan Classification (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 6,428 | $ 8,117 |
Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 2,198 | 3,822 |
Real estate Commercial | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 3,311 | 3,262 |
Real estate Residential | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | 825 | 922 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due | ||
Nonaccrual loans, Total | $ 94 | $ 111 |
Loans, net and allowance for _9
Loans, net and allowance for loan losses - Major Classification of Loans by Past Due Status (Details) - USD ($) $ in Thousands | May 06, 2020 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | $ 8,781 | $ 11,728 | |
Current | 2,170,753 | 2,166,254 | |
Total Loans | 2,179,534 | 2,177,982 | |
Loans > 90 Days and Accruing | 171 | 71 | |
Maximum loan receivable deferred period | 6 months | ||
30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 2,088 | 2,863 | |
60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 94 | 677 | |
Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 6,599 | 8,188 | |
Commercial | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 2,348 | 3,895 | |
Current | 674,742 | 675,391 | |
Total Loans | 677,090 | 679,286 | |
Commercial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 150 | 73 | |
Commercial | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 2,198 | 3,822 | |
Real estate Commercial | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 3,711 | 3,740 | |
Current | 1,146,856 | 1,134,250 | |
Total Loans | 1,150,567 | 1,137,990 | |
Real estate Commercial | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 343 | 344 | |
Real estate Commercial | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 57 | 134 | |
Real estate Commercial | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 3,311 | 3,262 | |
Real estate Residential | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 2,440 | 3,545 | |
Current | 270,786 | 273,869 | |
Total Loans | 273,226 | 277,414 | |
Loans > 90 Days and Accruing | 171 | 71 | |
Real estate Residential | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 1,444 | 2,072 | |
Real estate Residential | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 480 | ||
Real estate Residential | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 996 | 993 | |
Consumer | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 282 | 548 | |
Current | 78,369 | 82,744 | |
Total Loans | 78,651 | 83,292 | |
Consumer | 30-59 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 151 | 374 | |
Consumer | 60-89 Days Past Due | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 37 | 63 | |
Consumer | Greater than 90 Days | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Past Due | 94 | $ 111 | |
PPP | |||
Financing Receivable, Recorded Investment, Past Due | |||
Total Loans | $ 200,774 |
Loans, net and allowance for_10
Loans, net and allowance for loan losses - Summarized Information in Concerning to Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | $ 5,168 | $ 7,299 | $ 5,820 |
Unpaid Principal Balance, With no related allowance, Total | 6,505 | 8,411 | 7,769 |
Average Recorded Investment, With no related allowance, Total | 5,495 | 7,418 | 6,453 |
Interest Income Recognized, With no related allowance, Total | 16 | 26 | 79 |
Recorded Investment, With an allowance recorded, Total | 3,110 | 3,925 | 4,086 |
Unpaid Principal Balance, With an allowance recorded, Total | 3,294 | 4,633 | 4,286 |
Related Allowance, With an allowance recorded, Total | 869 | 1,226 | 1,202 |
Average Recorded Investment, With an allowance recorded, Total | 3,598 | 3,256 | 4,349 |
Interest Income Recognized, With an allowance recorded, Total | 13 | 10 | 66 |
Recorded Investment, Total | 8,278 | 11,224 | 9,906 |
Unpaid Principal Balance, Total | 9,799 | 13,044 | 12,055 |
Related Allowance, With an allowance recorded, Total | 869 | 1,226 | 1,202 |
Average Recorded Investment, Total | 9,093 | 10,674 | 10,802 |
Interest Income Recognized, Total | 29 | 36 | 145 |
Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 673 | 3,706 | 2,251 |
Unpaid Principal Balance, With no related allowance, Total | 1,108 | 4,249 | 3,421 |
Average Recorded Investment, With no related allowance, Total | 1,462 | 3,672 | 2,915 |
Interest Income Recognized, With no related allowance, Total | 4 | 16 | 30 |
Recorded Investment, With an allowance recorded, Total | 1,978 | 1,956 | 2,046 |
Unpaid Principal Balance, With an allowance recorded, Total | 2,041 | 1,974 | 2,094 |
Related Allowance, With an allowance recorded, Total | 697 | 764 | 947 |
Average Recorded Investment, With an allowance recorded, Total | 2,012 | 1,488 | 2,038 |
Interest Income Recognized, With an allowance recorded, Total | 5 | 6 | 17 |
Recorded Investment, Total | 2,651 | 5,662 | 4,297 |
Unpaid Principal Balance, Total | 3,149 | 6,223 | 5,515 |
Related Allowance, With an allowance recorded, Total | 697 | 764 | 947 |
Average Recorded Investment, Total | 3,474 | 5,160 | 4,953 |
Interest Income Recognized, Total | 9 | 22 | 47 |
Real estate Commercial | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 3,280 | 2,263 | 2,372 |
Unpaid Principal Balance, With no related allowance, Total | 4,051 | 2,574 | 2,964 |
Average Recorded Investment, With no related allowance, Total | 2,826 | 2,091 | 2,148 |
Interest Income Recognized, With no related allowance, Total | 6 | 5 | 28 |
Recorded Investment, With an allowance recorded, Total | 710 | 1,263 | 1,580 |
Unpaid Principal Balance, With an allowance recorded, Total | 796 | 1,924 | 1,710 |
Related Allowance, With an allowance recorded, Total | 108 | 270 | 180 |
Average Recorded Investment, With an allowance recorded, Total | 1,145 | 1,197 | 1,687 |
Interest Income Recognized, With an allowance recorded, Total | 4 | 36 | |
Recorded Investment, Total | 3,990 | 3,526 | 3,952 |
Unpaid Principal Balance, Total | 4,847 | 4,498 | 4,674 |
Related Allowance, With an allowance recorded, Total | 108 | 270 | 180 |
Average Recorded Investment, Total | 3,971 | 3,288 | 3,835 |
Interest Income Recognized, Total | 10 | 5 | 64 |
Real estate Residential | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 1,121 | 1,129 | 1,086 |
Unpaid Principal Balance, With no related allowance, Total | 1,241 | 1,369 | 1,263 |
Average Recorded Investment, With no related allowance, Total | 1,104 | 1,424 | 1,223 |
Interest Income Recognized, With no related allowance, Total | 6 | 5 | 21 |
Recorded Investment, With an allowance recorded, Total | 422 | 706 | 460 |
Unpaid Principal Balance, With an allowance recorded, Total | 457 | 735 | 482 |
Related Allowance, With an allowance recorded, Total | 64 | 192 | 75 |
Average Recorded Investment, With an allowance recorded, Total | 441 | 571 | 624 |
Interest Income Recognized, With an allowance recorded, Total | 4 | 4 | 13 |
Recorded Investment, Total | 1,543 | 1,835 | 1,546 |
Unpaid Principal Balance, Total | 1,698 | 2,104 | 1,745 |
Related Allowance, With an allowance recorded, Total | 64 | 192 | 75 |
Average Recorded Investment, Total | 1,545 | 1,995 | 1,847 |
Interest Income Recognized, Total | 10 | 9 | 34 |
Consumer | |||
Financing Receivable, Impaired | |||
Recorded Investment, With no related allowance, Total | 94 | 201 | 111 |
Unpaid Principal Balance, With no related allowance, Total | 105 | 219 | 121 |
Average Recorded Investment, With no related allowance, Total | 103 | 231 | 167 |
Recorded Investment, Total | 94 | 201 | 111 |
Unpaid Principal Balance, Total | 105 | 219 | 121 |
Average Recorded Investment, Total | $ 103 | $ 231 | $ 167 |
Loans, net and allowance for_11
Loans, net and allowance for loan losses - Loans Modified Resulting in Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2021USD ($)loancustomer | Mar. 31, 2020USD ($)contractloan | Dec. 31, 2020USD ($) | |
Number of loans modified | loan | 0 | 0 | |
Number of defaults on loans restructured | $ 0 | ||
Number of business loans with payment deferrals granted | customer | 6 | ||
Loan receivable balances where payment deferrals were granted | $ (4,800) | $ 6,100 | |
Outstanding loan balance in deferral | 1,300 | ||
Loans receivable, related parties, considered as nonaccrual, past due or restructured or potential credit risk | $ 2,740 | $ 2,140 | $ 2,818 |
Maximum | |||
Percentage of total loan portfolio | 0.10% | ||
Real estate Residential | |||
Number of defaults on loans restructured | contract | 1 | ||
Recorded Investment | $ 52 |
Other assets - Components of Ot
Other assets - Components of Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Other real estate owned | $ 362 | $ 864 |
Investment in low income housing partnership | 6,212 | 6,332 |
Mortgage servicing rights | 833 | 838 |
Restricted equity securities (FHLB and other) | 5,461 | 5,397 |
Net deferred tax asset | 4,724 | 3,768 |
Interest rate floor and swaps | 11,542 | 15,371 |
Other assets | 6,860 | 6,345 |
Total | 36,146 | 38,915 |
Interest Rate Floor | ||
Interest rate floor and swaps | 1,455 | 1,678 |
Interest Rate Swaps | ||
Interest rate floor and swaps | $ 10,239 | $ 13,693 |
Fair value estimates - Transfer
Fair value estimates - Transfers Between Levels (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Fair value estimates | ||
Fair value of assets transfers from level 1 to level 2 | $ 0 | $ 0 |
Fair value of assets transfers from level 2 to level 1 | 0 | 0 |
Fair value of liabilities transfers from level 1 to level 2 | 0 | 0 |
Fair value of liabilities transfers from level 2 to level 1 | 0 | 0 |
Fair value of assets transfers into level 3 | 0 | 0 |
Fair value of assets transfers out of level 3 | 0 | 0 |
Fair value of liabilities transfers into level 3 | 0 | 0 |
Fair value of liabilities transfers out of level 3 | $ 0 | $ 0 |
Fair value estimates - Schedule
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Recurring Basis (Details) - Recurring Basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | $ 333,912 | $ 296,049 |
U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 18,825 | 18,905 |
U.S. government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 57,583 | 65,188 |
State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 56,624 | 55,366 |
State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 71,760 | 56,994 |
Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,489 | 1,000 |
Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 3,186 | 3,707 |
Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 124,286 | 94,751 |
Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 159 | 138 |
Loan held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 458 | 837 |
Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,455 | 1,678 |
Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 9,980 | 13,693 |
Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | (9,496) | (14,099) |
Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 18,984 | 19,043 |
Level 1 | U.S. Treasuries | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 18,825 | 18,905 |
Level 1 | Common equity securities. | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 159 | 138 |
Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 314,928 | 277,006 |
Level 2 | U.S. government-sponsored enterprises state and municipals | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 57,583 | 65,188 |
Level 2 | State and Municipals, Taxable | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 56,624 | 55,366 |
Level 2 | State and Municipals, Tax-exempt | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 71,760 | 56,994 |
Level 2 | Corporate debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,489 | 1,000 |
Level 2 | Mortgage-backed Securities, U.S. government agencies | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 3,186 | 3,707 |
Level 2 | Mortgage-backed Securities, U.S. government-sponsored enterprises | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 124,286 | 94,751 |
Level 2 | Loan held for sale | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 458 | 837 |
Level 2 | Interest rate floor - other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 1,455 | 1,678 |
Level 2 | Interest rate swap-other assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Assets, Fair Value Estimate | 9,980 | 13,693 |
Level 2 | Interest rate swap-other liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Liabilities measured at fair value | $ (9,496) | $ (14,099) |
Fair value estimates - Schedu_2
Fair value estimates - Schedule of Assets and Liabilities Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | $ 2,241 | $ 2,884 |
Other real estate owned | 131 | 527 |
Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis | ||
Impaired loans | 2,241 | 2,884 |
Other real estate owned | $ 131 | $ 527 |
Fair value estimates - Addition
Fair value estimates - Additional Quantitative Information about Assets Measured at Fair Value on Nonrecurring Basis (Details) - Nonrecurring Basis - Level 3 - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Impaired loans | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 2,241 | $ 2,884 |
Range and weighted average of appraisal adjustments | 24.80% | 28.20% |
Range and weighted average of liquidation expenses | 5.50% | 5.50% |
Impaired loans | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 17.90% | 9.00% |
Range and weighted average of liquidation expenses | 3.00% | 3.00% |
Impaired loans | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 97.00% | 97.00% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Other real estate owned | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Assets, Fair Value Estimate | $ 131 | $ 527 |
Range and weighted average of appraisal adjustments | 39.50% | 29.90% |
Range and weighted average of liquidation expenses | 5.00% | 5.00% |
Other real estate owned | Minimum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 20.00% | 3.10% |
Range and weighted average of liquidation expenses | 3.00% | 3.00% |
Other real estate owned | Maximum | ||
Fair Value Inputs, Assets, Quantitative Information | ||
Range and weighted average of appraisal adjustments | 58.10% | 58.10% |
Range and weighted average of liquidation expenses | 6.00% | 6.00% |
Fair value estimates - Carrying
Fair value estimates - Carrying and Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Investment securities: | ||
Available-for-sale | $ 333,753 | $ 295,911 |
Common equity securities | 159 | 138 |
Held-to-maturity | 7,389 | 7,513 |
Loans held for sale | 458 | 837 |
Mortgage servicing rights | 833 | 838 |
Financial liabilities: | ||
Subordinated debentures | 33,000 | 33,000 |
Carrying Value | ||
Financial assets: | ||
Cash and due from banks | 303,318 | 228,192 |
Investment securities: | ||
Available-for-sale | 333,753 | 295,911 |
Common equity securities | 159 | 138 |
Held-to-maturity | 7,166 | 7,225 |
Loans held for sale | 458 | 837 |
Net loans | 2,152,751 | 2,150,638 |
Accrued interest receivable | 8,206 | 8,255 |
Mortgage servicing rights | 833 | 838 |
Restricted equity securities (FHLB and other) | 5,461 | 5,397 |
Interest rate floor | 1,455 | 1,678 |
Interest rate swaps | 9,980 | 13,693 |
Total assets | 2,823,540 | 2,712,802 |
Financial liabilities: | ||
Deposits | 2,550,416 | 2,437,113 |
Long-term debt | 14,264 | 14,769 |
Subordinated debentures | 33,000 | 33,000 |
Accrued interest payable | 1,120 | 736 |
Interest rate swap | 9,496 | 14,099 |
Total liabilities | 2,608,296 | 2,499,717 |
Fair Value | ||
Financial assets: | ||
Cash and due from banks | 303,318 | 228,192 |
Investment securities: | ||
Available-for-sale | 333,753 | 295,911 |
Common equity securities | 159 | 138 |
Held-to-maturity | 7,389 | 7,513 |
Loans held for sale | 458 | 837 |
Net loans | 2,133,875 | 2,145,752 |
Accrued interest receivable | 8,206 | 8,255 |
Mortgage servicing rights | 1,261 | 1,269 |
Restricted equity securities (FHLB and other) | 5,461 | 5,397 |
Interest rate floor | 1,455 | 1,678 |
Interest rate swaps | 9,980 | 13,693 |
Total assets | 2,805,315 | 2,708,635 |
Financial liabilities: | ||
Deposits | 2,552,977 | 2,441,014 |
Long-term debt | 14,481 | 15,073 |
Subordinated debentures | 32,574 | 33,096 |
Accrued interest payable | 1,120 | 736 |
Interest rate swap | 9,496 | 14,099 |
Total liabilities | 2,610,648 | 2,504,018 |
Level 1 | ||
Financial assets: | ||
Cash and due from banks | 303,318 | 228,192 |
Investment securities: | ||
Available-for-sale | 18,825 | 18,905 |
Common equity securities | 159 | 138 |
Level 2 | ||
Investment securities: | ||
Available-for-sale | 314,928 | 277,006 |
Held-to-maturity | 7,389 | 7,513 |
Loans held for sale | 458 | 837 |
Accrued interest receivable | 8,206 | 8,255 |
Mortgage servicing rights | 1,261 | 1,269 |
Restricted equity securities (FHLB and other) | 5,461 | 5,397 |
Interest rate floor | 1,455 | 1,678 |
Interest rate swaps | 9,980 | 13,693 |
Financial liabilities: | ||
Deposits | 2,552,977 | 2,441,014 |
Long-term debt | 14,481 | 15,073 |
Subordinated debentures | 32,574 | 33,096 |
Accrued interest payable | 1,120 | 736 |
Interest rate swap | 9,496 | 14,099 |
Level 3 | ||
Investment securities: | ||
Net loans | $ 2,133,875 | $ 2,145,752 |
Employee benefit plans - Compon
Employee benefit plans - Components of Net Periodic Benefit Cost (Detail) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Components of net periodic pension cost: | ||
Salaries and employee benefits expense | $ 6,570 | $ 7,856 |
Pension Benefits | ||
Components of net periodic pension cost: | ||
Salaries and employee benefits expense | 306 | |
Interest cost | 105 | 54 |
Expected return on plan assets | (322) | (123) |
Amortization of unrecognized net gain | 76 | 22 |
Net periodic benefit | $ (141) | $ (47) |
Employee benefit plans - Additi
Employee benefit plans - Additional Information (Details) - 2017 Plan - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Share-based Compensation Arrangement by Share-based Payment Award | ||
Common stock available for grant as awards | 37,151 | |
Salaries and employee benefits expense | $ 89 | $ 5 |
Non-Performance-based restricted stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares or units vesting period | 3 years | |
Performance-based restricted stock units | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Shares or units vesting period | 3 years | |
Cumulative diluted earnings per share period used for conditions for vesting of performance-based restricted stock units | 3 years | |
Average return on equity period used for conditions for vesting of performance-based restricted stock units | 3 years | |
Restricted Stock | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted shares | 19,818 | |
Unrecognized compensation expense | $ 1,494 | |
Weighted average vesting period | 2 years 2 months 12 days | |
Restricted stock units (RSUs) | ||
Share-based Compensation Arrangement by Share-based Payment Award | ||
Granted shares | 16,269 |
Derivatives and hedging activ_3
Derivatives and hedging activities - Fair Values of Derivative Instruments on the Balance Sheet (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2021USD ($)security | Mar. 31, 2020USD ($) | Dec. 31, 2021USD ($) | Dec. 31, 2020USD ($) | |
Derivatives, Fair Value | ||||
Asset Derivatives | $ 11,542 | $ 15,371 | ||
Liability Derivatives | 9,603 | 14,099 | ||
Interest Receivable | 8,206 | 8,255 | ||
Interest Payable | 1,120 | 736 | ||
Net Amounts of Assets presented in the Balance Sheet | 9,603 | 14,099 | ||
Interest income | ||||
Derivatives, Fair Value | ||||
Amount of gain or (loss) reclassified as a increase to interest income (expense) | 150 | $ 52 | ||
Interest Rate Floor | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 1,455 | 1,678 | ||
Interest Rate Swaps | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 10,239 | 13,693 | ||
Credit-risk contract | ||||
Derivatives, Fair Value | ||||
Posted collateral | 5,850 | 15,360 | ||
Net Amounts of Assets presented in the Balance Sheet | 484 | 79 | ||
Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 1,455 | 1,678 | ||
Liability Derivatives | 485 | |||
Derivatives designated as hedging instruments | Interest Rate Floor | ||||
Derivatives, Fair Value | ||||
Notional amount | 25,000 | |||
Derivatives designated as hedging instruments | Interest Rate Floor | Other Assets. | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 1,455 | 1,678 | ||
Derivatives not designated as hedging instruments | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 9,980 | 13,693 | ||
Liability Derivatives | $ 9,496 | 13,614 | ||
Derivatives not designated as hedging instruments | Interest Rate Swaps | ||||
Derivatives, Fair Value | ||||
Number of instruments held | security | 83 | |||
Notional amount | $ 408,138 | $ 225,376 | ||
Interest Receivable | 258 | |||
Interest Payable | 258 | |||
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other Assets. | ||||
Derivatives, Fair Value | ||||
Asset Derivatives | 9,980 | 13,693 | ||
Derivatives not designated as hedging instruments | Interest Rate Swaps | Other Liabilities. | ||||
Derivatives, Fair Value | ||||
Liability Derivatives | 9,496 | 13,614 | ||
Cash Flow Hedge | ||||
Derivatives, Fair Value | ||||
Derivatives terminated | 50 | |||
Cash Flow Hedge | Interest expense | ||||
Derivatives, Fair Value | ||||
Termination fees | 25 | |||
Cash Flow Hedge | Derivatives designated as hedging instruments | ||||
Derivatives, Fair Value | ||||
Notional amount | $ 50,000 | |||
Cash Flow Hedge | Derivatives designated as hedging instruments | Other Liabilities. | ||||
Derivatives, Fair Value | ||||
Liability Derivatives | $ 485 | |||
Forecast | Cash Flow Hedge | Interest income | ||||
Derivatives, Fair Value | ||||
Amount of gain or (loss) reclassified as a increase to interest income (expense) | $ 404 |
Derivatives and hedging activ_4
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | Dec. 31, 2020 | |
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI Included Component | $ 1,244 | $ 1,002 | |
Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (23) | ||
Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 134 | $ 36 | |
Cash Flow Hedge | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | 325 | ||
Amount of Gain (Loss) Recognized in OCI Included Component | 316 | ||
Amount of Loss Recognized in OCI Excluded Component | 9 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 85 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component | 126 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Excluded Component | (41) | ||
Cash Flow Hedge | Interest expense | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | 401 | ||
Amount of Gain (Loss) Recognized in OCI Included Component | 401 | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | (48) | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component | (23) | ||
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Excluded Component | (25) | ||
Cash Flow Hedge | Interest Rate Floor | Interest income | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Amount of Gain (Loss) Recognized in OCI on Derivative | (76) | (1,072) | |
Amount of Gain (Loss) Recognized in OCI Included Component | (85) | (1,104) | |
Amount of Loss Recognized in OCI Excluded Component | 9 | 36 | |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income | 133 | 36 | |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Included Component | 149 | 52 | |
Amount of Gain (Loss) Reclassified from Accumulated OCI into Income Excluded Component | $ (16) | $ (16) |
Derivatives and hedging activ_5
Derivatives and hedging activities - Effect of Fair Value and Cash Flow Hedge Accounting on the Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Derivative Instruments, Gain (Loss) | ||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | $ 242 | $ 1,036 |
Interest income | ||
Derivative Instruments, Gain (Loss) | ||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | 134 | 36 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | 134 | 36 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - included component | 150 | 52 |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income - excluded component | (16) | $ (16) |
Interest expense | ||
Derivative Instruments, Gain (Loss) | ||
Total amounts of income and expense line items presented in the statements of income and comprehensive income in which the effects of fair value or cash flow hedges are recorded | (23) | |
Amount of gain or (loss) reclassified from accumulated other comprehensive income into income | $ (23) |
Derivatives and hedging activ_6
Derivatives and hedging activities - Effect of Other Derivative Instruments on the Income Statement (Details) - Derivatives not designated as hedging instruments - Interest Rate Swap Revenue - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Interest Rate Swaps | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Income | $ 405 | $ (131) |
Fee Income | ||
Derivative Instruments, Gain (Loss) | ||
Amount of Gain (Loss) Recognized in Income | $ 392 | $ 601 |
Derivatives and hedging activ_7
Derivatives and hedging activities - Offsetting Derivatives (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Offsetting of Derivative Assets | ||
Gross Amounts of Recognized Assets | $ 11,542 | $ 15,371 |
Net Amounts of Assets presented in the Balance Sheet | 11,542 | 15,371 |
Net Amount | 11,542 | 15,371 |
Offsetting of Derivative Liabilities | ||
Gross Amounts of Recognized Liabilities | 9,603 | 14,099 |
Net Amounts of Assets presented in the Balance Sheet | 9,603 | 14,099 |
Net Amount | $ 9,603 | $ 14,099 |
Deposits - Components of Intere
Deposits - Components of Interest-bearing and Noninterest-bearing Deposits (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Deposits. | ||
Money market accounts | $ 529,772 | $ 496,634 |
Now accounts | 584,696 | 567,087 |
Savings accounts | 459,117 | 431,224 |
Time deposits less than $250 | 219,687 | 221,446 |
Time deposits $250 or more | 95,882 | 98,247 |
Total interest-bearing deposits | 1,889,154 | 1,814,638 |
Noninterest-bearing deposits | 661,262 | 622,475 |
Total deposits | $ 2,550,416 | $ 2,437,113 |
Borrowings (Details)
Borrowings (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended |
Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt | ||
Ending Balance | $ 51,980 | $ 50,000 |
Average Balance | 50,469 | |
Maximum Month-End Balance | $ 51,980 | |
Weighted Average Rate for the Year | 0.57% | |
Weighted Average Rate at End of Year | 0.37% | |
Other borrowings | ||
Short-term Debt | ||
Ending Balance | $ 1,980 | |
Average Balance | 469 | |
Maximum Month-End Balance | $ 1,980 | |
Weighted Average Rate for the Year | 0.07% | |
Weighted Average Rate at End of Year | 0.06% | |
FHLB advances | ||
Short-term Debt | ||
Ending Balance | $ 50,000 | 50,000 |
Average Balance | 50,000 | 83,716 |
Maximum Month-End Balance | $ 50,000 | $ 179,199 |
Weighted Average Rate for the Year | 0.57% | 1.01% |
Weighted Average Rate at End of Year | 0.38% | 0.40% |
Borrowings - Additional Informa
Borrowings - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 | |
Short-term Debt | |||
Short-term borrowings paid | $ 50,000 | ||
Peoples Bank | |||
Short-term Debt | |||
Maximum borrowing capacity | $ 819,972 | $ 807,042 | |
Outstanding amount in borrowings | 64,264 | 64,769 | |
Amount of credit facility used to issue standby letters of credit to collateralize public fund deposits | $ 230,650 | $ 218,350 |
Borrowings - Long-term debt adv
Borrowings - Long-term debt advances (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Debt Instrument | ||
Long-term debt | $ 14,264 | $ 14,769 |
Long-term 1.99% fixed rate debt due June 2021 | ||
Debt Instrument | ||
Long-term debt | $ 10,000 | 10,000 |
Fixed interest rate (as a percent) | 1.99% | |
Long-term 4.69% fixed rate debt due March 2023 | ||
Debt Instrument | ||
Long-term debt | $ 4,264 | $ 4,769 |
Fixed interest rate (as a percent) | 4.69% |
Borrowings - Maturities of long
Borrowings - Maturities of long-term debt (Details) - USD ($) $ in Thousands | Mar. 31, 2021 | Dec. 31, 2020 |
Borrowings | ||
2021 | $ 11,553 | |
2022 | 2,156 | |
2023 | 555 | |
Total long-term debt | $ 14,264 | $ 14,769 |
Borrowings - Fixed and adjustab
Borrowings - Fixed and adjustable rate information (Details) $ in Thousands | Mar. 31, 2021USD ($) |
Borrowings | |
FHLB long-term advances | $ 14,264 |
Subordinated debt (Details)
Subordinated debt (Details) - 2020 Notes $ in Thousands | Jun. 01, 2020USD ($) |
Debt Instrument [Line Items] | |
Aggregate principal amount | $ 33,000 |
Rate of interest for first five years | 5.375% |
Duration interest rate in effect | 5 years |
Percentage of debt redeemed | 100.00% |
Minimum | |
Debt Instrument [Line Items] | |
Floated interest rate | 4.75% |
Number of days notice to redeem debt | 10 days |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2021 | Mar. 31, 2020 | |
Income taxes | ||
Federal statutory rate | 22.00% | 11.40% |
Investment and other tax credits | $ 270 | $ 273 |
Deferred tax adjustment | $ 621 | |
Effective tax rate | 16.90% | 11.40% |